1. E331 Supply Chain Management
UT3 Summary Notes
Date of UT3 : 21st February 2013
Time : 1400 to 1530
Block : W2
Level : 4
Setter : Vyner Gerard Albuquerque Junior
2. Key Learning Objectives (P02)
• Know Key differences among the 4 Supply Chain
Designs according to different factors.
• Determine the appropriate supply chain design
based on the scenario given.
3. • Know Key differences among the 4 Supply Chain Designs according to different
factors.
• Determine the appropriate supply chain design based on the scenario given.
4. • Know Key differences among the 4 Supply Chain Designs according to different
factors.
• Determine the appropriate supply chain design based on the scenario given.
Summary : In Terms of Lead-Time / Response Time
5. • Know Key differences among the 4 Supply Chain Designs according to different
factors.
• Determine the appropriate supply chain design based on the scenario given.
Summary : In Terms of Level of Customization
No
Customization
Low Level of
Customization
High Level of
Customization
Fully
Customized
6. • Know Key differences among the 4 Supply Chain Designs according to different
factors.
• Determine the appropriate supply chain design based on the scenario given.
Summary : In Terms of Production Costs
Production Costs is dependent on the Level of
Customization.
No Customization (BTS) = Production Costs is low.
Because products are standardized.
Fully Customized (ETO) = Production Costs is high.
Because products/parts are unique.
7. • Know Key differences among the 4 Supply Chain Designs according to different
factors.
• Determine the appropriate supply chain design based on the scenario given.
Summary : In Terms of Service Level
Service Level is dependent on the Level of
Customization.
No Customization (BTS) = Low Level of Service.
Because products are standardized.
Fully Customized (ETO) = High Level of Service.
Because products/parts are unique.
8. • Know Key differences among the 4 Supply Chain Designs according to different
factors.
• Determine the appropriate supply chain design based on the scenario given.
Summary : In Terms of Inventory Costs
CTO
BTO
ETO will have the lowest inventory costs. BTS will have the highest inventory costs.
End-Products – Highest Inventory Costs.
Raw Materials / Unique Parts – Lowest Inventory Costs
9. • Able to identify the Push-Pull Boundaries for each
Supply Chain Designs
10. • Able to identify the Push-Pull Boundaries for each
Supply Chain Designs
11. • Able to identify the Push-Pull Boundaries for each
Supply Chain Designs
PULL
PUSH
PULL PULL
PUSH
12. Key Learning Objectives (P07 & P08)
• Know what a forward picking area is and how it
helps.
Forward Picking Area functions as a “warehouse
within the warehouse”. This means that the
most popular SKUs are stored an area in small
amounts, so that order picking can be concentrated
within a relatively small area which helps to reduce
unproductive travel by order pickers.
FAST-MOVING
SKUs
14. • Able to Perform ABC Analysis.
All Items that are Classified as A should be placed in the forward picking area.
WARNING:-
REMEMBER to Sort the Picking Frequency/Year from Largest to
Smallest Number before Classification of Items.
15. • Know the impact of applying various supply chain
strategies to the financial documents and C2C.
16. • Know the impact of applying various supply chain
strategies to the financial documents and C2C.
17. • Know the impact of applying various supply chain
strategies to the financial documents and C2C.
21. Key Learning Objectives (P09 & P11)
• Know the various factors that affect the supply chain
network design.
22. • Understand the classification of facilities under
strategic factor (offshore, contributor, etc…)
23. • Comparison of 6 distribution network designs
according to different factors.
1 = Best, 5 = Worse
24. • Comparison of 6 distribution network designs
according to different factors. (con’td)
+2 = Best, -2 = Worse
25. Key Learning Objectives (P12 & P13)
• Able to describe the environmental impacts from the
supply chain activities.
26. • Able to explain how the green practices (Rs, JIT, etc.)
may help in greening each part of the supply chain.
27. • Know what is carbon footprint and how to calculate.
– A carbon footprint is a measure of the impact of the supply chain
activities on the environment and climate change.
– It is commonly used to describe the total amount of CO2 and other
greenhouse gas (GHG) emissions for which an individual or
organization is responsible.
– For example, the carbon footprint of a can of food is the total amount
of carbon emissions from production, transportation, consumption
and disposal of the single can of food.
– Types of footprint: Organizational/ Product
– Performance Metric: Total supply chain carbon footprint = sum of
emissions from energy and fuel consumption and process related
emissions = Plan Carbon Emissions + Source + Make + Deliver + Return
28. • Drivers of Greening Supply Chains.
• Rising energy costs
• Reduce logistics costs
• Rising cost of transportation
• Global concerns about greenhouse gases
• Climate change
• Regulations like RoHS (Restriction of the Use of Certain Hazardous Substances in
Electrical and Electronic Equipment), etc.
• Technology innovations
• Increased public awareness of environmental issues
• Achieve regulatory compliance
• Differentiation from competitors
29. Key Learning Objectives (P14 & P15)
• Know the Organizational Units Required in a
Purchase Order Creation. (Note : PO = MM.)
Organizational
Units
30. • Understand the various types of POs available in SAP
(Item Category)
31. • Know the key steps involved in a procure-to-order
cycle and the steps performed during class hands-on.
Steps performed during class hands-on = Refer to P14 Worksheet.
