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1、MIT Forum for Supply Chain Innovation u UNCERTAINTY URL for powerpoint presentation /innovationEducation Course 1.270 / ESD.273MIT Forum for Supply Chain Innovation Nobel Prize in Economics 2002 (announced today, 09 Oct 2002)for having integrated insights from psychological
2、research into economic science, especially concerning human judgment and decision-making under uncertaintyfor having established laboratory experiments as a tool in empirical economic analysis, especially in the study of alternative market mechanisms Daniel Kahneman Vernon L. Smith 1/2 of the prize
3、1/2 of the prize USA and Israel USA Princeton University Princeton, NJ, USA George Mason University Fairfax, VA, USA b. 1934b. 1927MIT Forum for Supply Chain Innovation BODY SCANNER BY TC2MIT Forum for Supply Chain Innovation Invasion of the Body Scanners Digitally speaking MIT Forum for Supply Chai
4、n Innovation Part of the ProcessMIT Forum for Supply Chain Innovation PERSONALDIGITALPROFILEMIT Forum for Supply Chain Innovation Customer: How will I look in this dress?Retailer: What should we order for Fall ?Manufacturer: Whats the next demand?Data miningData MartRetailersAccessoriesJewelry, Shoe
5、sShiseido, CoachHarrods, M&SGucci, BallysGuerlain, PoloUSD, DEMEURO, INRYEN, YUANTRAVELHEALTHEDUCATIONARTS & MUSICCelebrityGalleryWorld History ofFashionThe Way We WoreData WarehouseBODY SCANeFASHIONEBCB2BAnne KleinLevis, BebeTalbots, AXChina, India, SiamFABRICSUPPLIERSDataWarehouseFABRICBRO
6、KERINDEPENDENTDESIGNBROKERGlobal DesignWAREHOUSEMEDIA / POPTailors-Contract ShopsAmateursDesign ForumManufacturingTailor BrokerOrderIndividual Tailors On-callPreference SurveySHIPPINGMALLamFinancialRETURNCRMDONATESalvation ArmyCAREGoodwilleBAYBoutiquesJ C PenneyOutlet StoresAmateurModelsSHIPPINGERPR
7、ETAILERSMACYS, NORDSTROM, BLOOMINGDALESPERSONALPROFILESOFTWAREPERSONALPROFILEANALYSISPortalMIT Forum for Supply Chain Innovation Customer Relationship ManagementSource: AMR Research 1999 OctoberMIT Forum for Supply Chain Innovation Lack of rule-based resolution: expectation vs resultu Financial Impa
8、ctu Cost of Correctionu Side Effects MIT Forum for Supply Chain Innovation Financial Impactu Opportunity lost: unable to ramp upu Economic loss: unable to ramp down MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Cost of Correctionu R
9、esourcesu Inventory MIT Forum for Supply Chain Innovation Side Effects (undesirable)u Tackle only symptomsu Negative fall out MIT Forum for Supply Chain Innovation Insulation of Planning from Execution Individual optimisation not SC optimisation Smart-Hub and Dumb-Spoke Configuration Isolation of En
10、vironment of OperationMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation What to do ? Understand customer need Monitor supply availability Manage supply chain partner performance Decentralize problem solving Monitor corrective actions an
11、d feedback Include macro-economic indicatorsMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Financial Impactu Opportunity lost: unable to ramp upu Economic loss: unable to ramp down MIT Forum for Supply Chain Innovation MIT Forum for
12、Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum
13、for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Push-Pull Supply ChainsThe Supply Chain Time LineLow Uncertainty High UncertaintyCustomersSuppliersPUSH STRATEGYPULL STRATEGYMIT Forum for Supply Chain Innovation From Make-to-Stock Model.Configur
14、ationAssemblySuppliersMIT Forum for Supply Chain Innovation to Assemble-to-Order ModelConfigurationAssemblySuppliersMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Imagination is out of focus !MIT
15、 Forum for Supply Chain Innovation Inventory ManagementOrder ProcessingE-BusinessVendor ManagementTaxElectronic CommerceFinancialsMarketingExecutive InformationInventory ProgramsAccounts PayableStock TransfersWarehouseInbound QA1ReceivingRepair OrdersPurchasingAccounts ReceivableOutbound QAShippingO
16、rder ServicesQuotingCreditCustomer ManagementMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Observation 199883 million accessthe Internet inlangua
17、ges otherthan EnglishProjection 200570% of 1 billionusers may notspeak EnglishFACT46% US businessrefuse intl orderbecause they lack means toprocess them.JapaneseSpanishGermanFrenchChineseDutchKoreanSwedishItalianMIT Forum for Supply Chain Innovation Conceptual advances occur about twice a century an
18、d lead to wealth of nations DistributedIntelligenceNanotechMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation PLANEXECUTESENSERESPONDDEMANDEXCEPTIONMIT Forum for Supply Chain Innovation CustomerCustomers DCMANUFACTURERRaw material SUPPLIERSStoreStoreStoreStoreStoreStoreStore
19、StoreDCDCDCPaperMedicalCottonStorePlantDCPlantDCREAL TIME ePCePC data from RFID TagReplenishmentneedsConfirmationLoadsStore OrdersStatusImmediateReplenishmentneedsFutureshipping needsReplenishmentneeds determinedfrom RFID Tag info“Intelligent Signal”PORTALS / ExchangeTransportCustomer Info CenterMan
20、ufacturerHQreal timeRFID dataPersonal CareConsumer TissueHealth CareInformationAgentInventory Early Warning AgentTLB AgentCross-Docking AgentConsumptionInventoryDataDC to MfrMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCCustomerStor
21、eStoreStoreStoreStoreStoreStoreStoreStoreIndustry best now versus what can be achieved:Day 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0=Product =InfoDay 7Received, unloaded & stocked on store shelvesDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0=Non-value-added time=Product=InfoPortalTransportCustom
22、erCenterManufacturerMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStoreConsumerBuys SCOTT 2pm Day 0=Product =InfoMIT Forum for Supply Ch
23、ain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCPortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =InfoRFID Smart Tag atPOS read 2pm Day 0Day 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCot
24、tonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info0101100110111010001112pm Day 0RFID Smart tag datatransmitted instantly010110011011101000111MIT Forum for Supply Chain Innovation D
25、CDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info0101100110111010001110101100110111010001112:10pm Day 0Replenishment needs receivedby scheduling (TLB) systemsM
26、IT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info0101100110111010001112:35 pm, Day 0System detects OOS danger at customer
27、 & co-ordinates rapid-response shipment (reallocation of en route load evaluated)010110011011101000111010110011011101000111010110011011101000111MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterMa
28、nufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =InfoSmart PlannerSmart Plannerinterrogates interrogates demand filterdemand filterMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerC
29、enterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =InfoSmart Planner integrates info:current inventory, shipment, planning MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCent
30、erManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =InfoSmart Planner executes changes, broadcasts plan, exceptions, optionsMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterM
31、anufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =InfoMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Produc
32、t =Info10pm Day 0Customer DC receives SCOTTMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info11pm Day 0Customer DC ships
33、SCOTTMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info3am Day 1Received, unloaded & stocked on store shelvesMIT Foru
34、m for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCCustomerStoreStoreStoreStoreStoreStoreStoreStoreStoreDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0=Product =Info3am Day 1Received, unloaded & stocked on store shelvesDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0=Non-value-added
35、time=Product=InfoPortalTransportCustomerCenterManufacturerMIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day 1 MIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day 2 MIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day 3 MIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day 4 MIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 da
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