BMGT 372 Lecture Notes - Lecture 2: Six Sigma, Inventory Turnover, Asset Turnover
15 Mar 2017
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Business strategy: pla(cid:374) (cid:449)ith (cid:272)o(cid:373)pa(cid:374)y"s lt goals, ho(cid:449) it pla(cid:374)s to a(cid:272)hie(cid:448)e goals, a(cid:374)d its pla(cid:374) to differentiate itself. Sc strategy: lt plan for design and management of sc decisions; should align with, drive, and support business strategy: exploit company strengths, remain adaptive, satisfy customers. Improvements in sc can reduce inventory, distribution, and coordination costs. Can increase cost-value advantage by: providing differentiation based on service, providing better tech to preempt competition, scm strategies to reduce cost. How it will produce goods and services. Determines: design of manufacturing & internal processes, equipment/it, employee skills needed. In some industries, high manufacturing costs means make-to-stock is cheapest. Expensive to change manufacturing setup in customizing limit product options. Ops strategy depends on product life cycle: early: make-to-order (key product attributes unknown, middle: assemble-to-order (reduces inventory, prices are more competitive, late: make-to-stock (can predict demand and volume) How it plans to get its products and services to customers (sell to distributors/resellers or customers?)
