GMS 401 Lecture Notes - Lecture 9: Safety Stock, Inventory Control, Network Planning And Design
20 Apr 2016
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Document Summary
Supply chain sequence of organizations their facilities and activities that are involved in producing and delivering a product. Supply chain management collaboration of supply-chain companies and coordination of their activities so that market demand is met as efficiently and effectively as possible. Value increases as the materials move down the chain to the consumer but the response time to consumer demand decreases. Managers must strike a balance between additional carrying cost and better customer service to decide where to hold inventory on the supply chain. Nature of inventory becomes more specific as it moves down supply chain. Reduces risk pooling holding safety stocks in one central location rather than in multiple locations. Delayed differentiation (postponement) production of standard components and products and adding differentiating features later in the process. Cross-docking good arriving at a warehouse from a supplier are unloaded form the supplier"s truck and loaded onto outbound trucks.
