7. The Inventory Cycle Management Information System Profile of Inventory Level Over Time Quantity on hand Q Receive order Place order Receive order Place order Receive order Lead time Reorder point Demand rate Time Constant Demand
23. Management Information System What is Supply Chain Planning ? Supply Chain is a set of activities (e.g. purchasing, manufacturing, logistics, distribution, marketing) that perform the function of delivering value to end customer Traditionally, all the business units along a supply chain have their own objectives and these are often conflicting There is no single plan to carry out supply chain activities
24. Management Information System What is Supply Chain Planning ? There is need for a mechanism through which the execution of various business activities along a supply chain can be planned in an integrated fashion. The supply chain planning is an effort to achieve the primary goal of “ producing and distributing the merchandise at the right quantity, to the right locations, and at the right time with minimum system wide cost ” in the presence of conflicting goals of various business units
28. Management Information System Supply Chain Planning Processes Demand Planning Material Requirement Planning Demand Forecasting Supplier Plant Warehouse Logistics Retailer Production Plan Component Requirement Order Management
29. Management Information System Supply Chain Planning Decisions OPERATIONAL TACTICAL STRATEGIC Procurement Distribution Manufacturing Logistics
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31. Process View Management Information System Customer Retailer Distributor Manufacturer Supplier Customer Order Cycle Replenishment Cycle Manufacturing Cycle Procurement Cycle Pull Push
Dell has three production sites worldwide and builds to order. Compaq does both. Consider some decisions involved - where to locate facilities? How to size them? Where is the push/pull boundary? What modes of transport to use? How much inventory to carry? In what form? Where to source from?
