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,SupplyChainManagement,YuhuaZhangProfessorofGuangdongUniversityofForeignStudiesTel-mail:zhyh58,References,DesigningandManagingtheSupplyChain,DavidSimchi-Levietal,McGrawHill,2011.SupplyChainManagement,MaShihua,HigherEducationPress,2011.SupplyChainManagement:Strategy,Planning,andOperation,SunilChopraetal,PrenticeHall,2011.SupplyChainManagementfromVisiontoImplementation,StanleyE.Fawcettetal,PrenticeHall,2007.,EvaluationMode,Checkonclassattendance:20%Casestudy20%Classassignment20%FinalTest:40%,Chapter1IntroductiontoSupplyChainManagementChapter2InventoryManagement,SupplyContractsandRiskPoolingChapter3LogisticsNetworkConfigurationChapter4TheValueofInformationChapter5SupplyChainIntegration,StrategicAlliancesChapter6ProcurementandOutsourcing,InternationalIssuesinSCMChapter7DesignforSupplyChainManagementChapter8PricingandCustomerValue,Chapter1IntroductiontoSupplyChainManagement,Copyright,MeditechSurgical,Casedescribesascenariowithtypicalsymptomsinventoriesaretoohighandcustomerserviceispoor.Initialexplanationisthattheproblemsareduetopoorforecastingofcustomerdemand.Theresaperceptionthatdemandishighlyvariableandunpredictable,possiblyduetoirrationalcustomerbehavior,e.g.,panicordering.ifonlyMeditechcouldforecastwhatthecustomerswillorder,thentheycouldimprovecustomerserviceandreduceinventories.,Case1,Copyright,Outline,IntentdiagnosisofsupplychainBusinessoverviewSupplychainProductionplanningWhatswrong?Howtofixit?,Case1,Copyright,EndoscopicSurgicalInstruments,PermitsminimallyinvasivesurgeryMarketcreatedinearly80s,rapidlygrowingOldproductscontinuallyupdatedandreplacedwithnewproductintroductions,Case1,Copyright,BusinessOverview,NationalandMeditechsplitthemarketCompetebasedonproductinnovations,customerservice,costNationalsellstophysicians;MeditechsellstomaterialmanagersCustomerpreferenceschangeslowly,Case1,ExternalSupplyChain,Partsuppliers,MeditechAssemblyplants,MeditechWarehouse:autonomousregionalwarehouses,DomesticDealers,IntlMeditechAffiliates,Hospitals,Hospitals,Case1,InternalSupplyChain,PartsInventory,Assembly,BulkInventory,FGInventory,PackagingOrderquantity,MaterialPlan,focusingoninformationflows,Copyright,Whatswrong?,PoorservicefornewproductintroductionsPoorforecasting?Panicordering?AndhighFGinventory,Case1,Copyright,Whatisgoingon?,DemandisquitepredictableUsageinhospitalsisquitestableMarketsharemovesslowlyovertimeWitheachnewproduct,dealermustbuildinventorytofillpipeline,Case1,Copyright,WhydidMeditechthinkdemandwasunpredictable?,PoorinformationsystemsNoonelookedatdemandNoonehadresponsibilityforforecasterrorsTendencytoshifttheblameBuilt-indelaysandmonthlybucketsinplanningsystemAmplifierinplanningsystem,Case1,Copyright,Whattodo?,RecognizethatdemandisstableandpredictableEstablishaccountabilityforforecastEliminateplanningdelaysand/orreducetimebucketAlternatively,putassemblywithinpullsystemandeliminatebulkinventory,Case1,Copyright,WrapUp,CaseillustratesasupplychainchallengeunderstandwhyMeditechhaspoorcustomerserviceandhighinventory,particularfornewproducts.Contextischaracterizedbylackofdataandasomewhatarchaic,albeittypical,planningsystemthatobscurestheproblem.,Case1,Copyright,WhatIsASupplyChain?SCMArchitectureStrategiesforSCMWhySupplyChainManagement?KeyIssues,Outline,Copyright,1.1WhatIsASupplyChain?,Thesystemofsuppliers,manufacturers,transportation,distributors,andvendorsthatexiststotransformrawmaterialstofinalproductsandsupplythoseproductstocustomers.,WhatisSCM?,Buying,WhatisSCM?,Selling,Making,Moving,Warehousing,SCMisabusinessnetworkcoveringfrombuying,making,moving,warehousingtoselling,SCM,Copyright,WhatIstheGoalofSupplyChainManagement?,Supplychainmanagementisconcernedwiththeefficientintegrationofsuppliers,factories,warehousesandstoressothatmerchandiseisproducedanddistributed:IntherightquantitiesTotherightlocationsAttherighttimeInordertoMinimizetotalsystemcostSatisfycustomerservicerequirements,Copyright,Thepowerandthepotentialimpactofsupplychainmanagementtomakeorganizationsmoregloballycompetitiveandtoincreasemarketsharewithconsequentimprovementinshare-holdervalue.,SupplyChainmanagementConcept,Copyright,DevelopmentoftheConcept,Anumberofstudiesdoneduringthe1950sand1960sindicatedthepotentialofthesystemsconceptifitwereappliedinbusiness-relatedsituations.Thefocusofphysicaldistributionmanagementwasonthesystemcostsandanalyzingtrade-offscenariostoarriveatthebestorlowestphysicaldistributionsystemcost.Thesystemrelationshipsthatexistamongtransportation,inventorylevels,warehousing,exteriorpackaging,materialshandling,andcustomerservicecostcenterswereanalyzedandevaluated.Theinitialfocusonphysicaldistributionoroutboundlogisticswaslogicalsincefinishedgoodswereusuallyhigherinvalue,whichmeantthattheirinventory,warehousing,materialshandling,andpackagingcostswererelativelyhigherthanforinboundrawmaterials.,Copyright,DevelopmentoftheConcept,The1980swereadecadeofchangewiththederegulationoftransportation,financialinstitution,andthecommunicationindustry.Thetechnologyrevolutionwasalsowellunderway.Duringthe1980s,thebusinesslogisticsorintegratedlogisticsmanagementconceptdevelopedinagrowingnumberoforganizations.Logisticsinitssimplestformaddedtheinboundsidetooutboundlogisticsofphysicaldistributionmanagement.Theunderlyinglogicofthesystemsconceptwasalsotherationaleforthedevelopmentofthelogisticsmanagementconcept,becauseinadditiontoanalyzingtrade-offsfortotalcostitcouldalsoincludethevalueordemandaspectsofcustomerserviceeffectiveness.,Copyright,DevelopmentoftheConcept,After1990s,supplychainmanagementcanbeviewedasapipelineorconduitfortheefficientandeffectiveflowofproductsandmaterials,services,information,andfinancials(usuallycash)fromthesupplierssupplierthroughthevariousimmediateorganizationsouttothecustomerscustomer.Itisasystemofconnectednetworksbetweentheoriginalvendorandtheultimatefinalcustomer.Theextendedenterpriseorboundaryspanningperspectiveofsupplychainmanagementrepresentsalogicalextensionofthelogisticsconcept,providinganopportunitytoviewtototalsystemofinterrelatedcompaniesandtheirimpactforthefinalproductinthemarketplaceintermsofitsprice-valuerelationship.,Copyright,ImportantPoints,ExtendedenterpriseCoordinatedorintegratedtwo-wayflowofgoodsReverselogisticssystemsInformationBullwhipeffectAdvancedshipmentnoticesFinancials(especiallycash)“Free”cashflow,SupplyChainStatus,TIER2,TIER1,Supplier,Supplier,Supplier,OEM,Manualcommunication(Phone/Fax/EDI)SpontaneousplanningHypotheticalplanningTierToTierEnormousinventorybuffer,SupplyChainStatus,Prospectofsupplychain,Fax/E-mail,EDI,On-line,78%,65%,28%,60%,60%,88%,2000,2002,ForresterResearch,2000,TIER3,Yetexistingsupplychainismanagedmanually,causingseriouslossofefficiencyandcost,SCM,BackgroundofSCManditseffect,Background,Emergingnewchannel,Severecompetition,Speedmanagement,Internetbooming,Effects,Shorterproductlifecycle,Channelintegration,Speedyadaptiontochangesupplychain,Enhancedcustomersatisfaction,Supplychainintegrationthruweb,Productlifecyclemanagement,“Competitionamongsupplychainsnotamongcompanies”,ThechangeintheindustrialenvironmentdemandsthebusinesstoadopttoSCManditcanbringthefollowingeffects,Standardizationofproductandtech,SCM,ComponentsofSCM,SupplyChainPlanning,SupplyChainExecution,CollaborativePlanning,SupplyChainNetworkDesignDemandPlanning&ForecastingSupplyPlanningDistributionPlanningManufacturingPlanning&Scheduling,WarehouseManagementTransportationManagementInventoryManagementOrderManagement,Facilitatingcollaborationamongparticipants,DesignCollaborationDemandCollaborationProcurementCollaborationRetailerCollaboration,SCMisdevidedbySCPtoofferoptimizedplanning,SCEtostableexecutionplatform,CPtocollaborate,Optimizedplanningforbalancedsupplyforvarieddemands,Timelyexecutionforbuying,moving,makingandordering,SCM,Copyright,RecentSupplyChainStudiesSuggest.,“Only7%ofcompaniestodayareeffectivelymanagingtheirsupplychain.However,thesecompaniesare73%moreprofitablethanothermanufacturers.”Deloitte&ToucheStudy,October2003“,Copyright,Notice,Whoisinvolved?Whatisthegoal?Whatlevelofactivitiesareinvolved?Whatdowemeanbyintegration?,2,SCMArchitecture,SCM,Supply,Sources:plantsvendorsports,RegionalWarehouses:stockingpoints,FieldWarehouses:stockingpoints,Customers,demandcenterssinks,Production/purchasecosts,Inventory&warehousingcosts,Transportationcosts,Inventory&warehousingcosts,Transportationcosts,Copyright2004D.Simchi-Levi,Whatmakessupplychainmanagementdifficult?,Supplychainstrategiescannotbedeterminedinisolation.Theyaredirectlyaffectedbyanotherchainthatmostorganizationshave,thedevelopmentchain.Itischallengingtodesignandoperateasupplychainsothattotalsystemwidecostsareminimized,andsystemwideservicelevelsaremaintained.Uncertaintyandriskareinherentineverysupplychain.,Copyright2004D.Simchi-Levi,Thedevelopmentchain,Thedevelopmentchainisthesetofactivitiesandprocessesassociatedwithnewproductintroduction.,Copyright,1.3StrategiesforSCM,Alloftheadvancedstrategies,techniques,andapproachesforSupplyChainManagementfocuson:GlobalOptimizationManagingUncertainty,Copyright,1.3.1GlobalOptimization,Whatisit?Whyisitdifferent/betterthanlocaloptimization?Whatareconflictingsupplychainobjectives?Whattoolsandapproacheshelpwithglobaloptimization?,SequentialOptimizationvs.GlobalOptimization,Source:DuncanMcFarlane,Copyright,GlobalOptimization,Theprocessoffindingthebestsystemwidestrategyisknownasglobaloptimization.,Copyright,WhyisGlobalOptimizationHard?,ThesupplychainisacomplexnetworkDifferentfacilitiesinthesupplychainfrequentlyhavedifferent,conflictingobjectivesThesupplychainisadynamicsystemThepowerstructurechangesSystemvariationsovertime,Copyright,SupplyChain:TheComplexity,NationalSemiconductors:Production:Produceschipsinsixdifferentlocations:fourintheUS,oneinBritainandoneinIsraelChipsareshippedtosevenassemblylocationsinSoutheastAsia.DistributionThefinalproductisshippedtohundredsoffacilitiesallovertheworld20,000differentroutes12differentairlinesareinvolved95%oftheproductsaredeliveredwithin45days5%aredeliveredwithin90days.,Copyright,ConflictingObjectivesintheSupplyChain,1.PurchasingStablevolumerequirementsFlexibledeliverytimeLittlevariationLargequantities2.ManufacturingLongrunproductionHighqualityHighproductivityLowproductioncost,Copyright,ConflictingObjectivesintheSupplyChain,3.WarehousingLowinventoryReducedtransportationcostsQuickreplenishmentcapability4.CustomersShortorderleadtimeHighinstockEnormousvarietyofproductsLowprices,Copyright,ToolsandApproachesforGlobalOptimization,Everythingforoptimization,plusStrategicAlliances/SupplierPartnershipsSupplyContracts/IncentiveSchemes,Copyright,ToolsandStrategiesforOptimization,DecisionSupportSystemsInventoryControlNetworkDesignDesignforLogisticsCrossDocking,CrossDocking翻译为“直接换装”,定义为:“物品在物流环节中,不经过中间仓库或者站点,直接从一个交通工具换载到另一个运输工具的物流衔接方式。”,Copyright,1.3.2Uncertainty,Whatisvariation?Whatisrandomness?Whattoolsandapproacheshelpustodealwiththeseissues?,Copyright,CantForecastingHelp?,ForecastingisalwayswrongThelongertheforecasthorizontheworsetheforecastEnditemforecastsareevenmorewrong,Copyright,WhyIsUncertaintyHardtoDealWith?,Matchingsupplyanddemandisamajorchallenge.Forecastingdoesntsolvetheproblem.Inventoryandback-orderlevelstypicallyfluctuateconsiderablyacrossthesupplychain,evenwhencustomerdemandforspecificproductsdoesnotvarygreatly.Demandisnottheonlysourceofuncertainty:LeadtimesYieldsTransportationtimesNaturalDisastersComponentAvailabilityRecenttrendssuchasleanmanufacturing,outsourcing,andoffshoringthatfocusonreductionincreaseriskssignificantly.,Copyright,SupplyChainVariability,Volumes,Time,Source:TomMcGuffry,ElectronicCommerceandValueChainManagement,1998,Copyright,WhatManagementGets.,Volumes,Time,Source:TomMcGuffry,ElectronicCommerceandValueChainManagement,1998,Copyright,WhatManagementWants,Volumes,Time,Source:TomMcGuffry,ElectronicCommerceandValueChainManagement,1998,Copyright,DealingwithUncertainty,PullSystemsRiskPoolingCentralizationPostponementStrategicAlliancesCollaborativeForecasting,Copyright,1.4WhySupplyChainManagement?,Copyright,SupplyChain:theMagnitude,In1998,Americancompaniesspent$898billioninsupply-relatedactivities(or10.6%ofgrossdomesticproduct).Transportation58%Inventory38%Management4%Thirdpartylogisticsservicesgrewin1998by15%tonearly$40billion,Copyright,SupplyChain:theMagnitude,Itisestimatedthatthegroceryindustrycouldsave$30billion(10%ofoperatingcost)byusingeffectivelogisticsstrategies.Atypicalboxofcerealspendsmorethanthreemonthsgettingfromfactorytosupermarket.Atypicalnewcarspends15daystravelingfromthefactorytothedealership,althoughactualtraveltimeis5days.,Copyright,SupplyChain:TheMagnitude,Compaqcomputerestimatesitlost$500millionto$1billioninsalesin1995becauseitslaptopsanddesktopswerenotavailablewhenandwherecustomer
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