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1、2Chapter 12Managing the Supply ChainuSupply Chain ManagementuOutsourcinguValue DensityuPurchasinguThe Firm as SupplieruJIT PurchasinguGlobal Purchasing3Supply Chain ManagementuApply a total systems approach to managing the entire flow ofinformationmaterialsand servicesRawmaterialsuppliersFactories &

2、amp;warehousesEndcustomer4OutsourcinguPurchased items account for 60 to 70% of the cost of goods sold.uOutsourcing allows firms to focus on their core competencies.Organizations outsource when they decide to purchase something they had been making in-house.uTypically handled by materials management

3、function.5Make or BuyuCurrent trend favors outsourcing all activities that do not directly represent or support core competencies.uAre there any dangers associated with aggressive outsourcing? What are the implications for JIT production?6Value DensityuValue per unit of weightuWhy is it important to

4、 know value per unit of weight? Is high value density good or bad?7PurchasingNo longer just order takers.Purchasing need to knowmaterialperformanceavailabilitysuppliers8The Firm as a SupplierIn this chapter, we discuss the role of the firm as a buyer of goods and services.How does the perspective ch

5、ange when the shoe is on the other foot?9Partnership RelationshipuContinuing relationship involving a commitment over an extended time period,an exchange of information, andan acknowledgement of the risks & rewards of the relationship.10Supplier Selection Using the Analytical Hierarchy Process A

6、HPuProcess used to determine weights for supplier-selection criteria.AHP allows individuals to use their own personal psychometric scale for making pair-wise comparisons between criteria used to evaluate suppliers.Consistency measures can be calculated as a cross-check to determine how well the scal

7、e is being followed.11JIT Purchasing-RequirementsuReduced lot sizesuFrequent and reliable delivery schedulesuReduced and highly reliable lead timesuConsistently high quality levels for purchased materials 12JIT Purchasing-SuppliersuFewer, nearby suppliersuRepeat businessuSupport suppliers competitiv

8、enessuClusters of remote suppliersuLimit competitive bidding to new partsuResist vertical integrationuEncourage suppliers to implement JIT purchasing 13JIT Purchasing-QuantitiesuSteady output rate a desirable prerequisiteuFrequent deliveries in small lot quantitiesuLong-term contract agreements with

9、 minimal release paperworkuDeliver quantities variable from release to release but fixed for whole contract term 14JIT Purchasing-Quantities CtduLittle or no permissible overage or underage of receiptsuSuppliers encouraged to package in exact quantitiesuSuppliers encouraged to reduce their productio

10、n lot sizes or store unreleased material 15JIT Purchasing-QualityuMinimal product specifications imposed on supplieruHelp suppliers to meet quality requirementsuClose relationships between buyers and suppliers quality assurance peopleuSuppliers encouraged to use process control charts instead of lot

11、 sampling inspection 16JIT Purchasing-ShippingScheduling of inbound freight Gain control by use of company-owned or contract shippingcontract warehousingtrailers for freight consolidation/storage 17JIT Purchasing-BenefitsBenefitsuConsistent qualityuSavings on resourcesuLower costsuSpecial attentionuSaving on toolinguLoyalty associated with long-term relationships with suppliers 18Global SourcingOriginal strategy was to reduce production costs.Changing focus of global purchasing includesproduct

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