UGBA 10 Lecture Notes - Lecture 6: Vertical Integration, Good Governance, Resource Consumption

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: John Briginshaw

Document Summary

Lecture 6: managing supply chains: efficient and responsive supply chains. Most companies operate with one of these configurations in mind, while trying to get any positive aspect from the other type of configuration. The two configurations are: efficient supply chain, responsive supply chain. Inventory placement is about deciding where to locate the inventory of finished goods. There are two extreme types of inventory placement decisions: Centralized placement: it means keeping the inventory of finished goods at a single lo(cid:272)atio(cid:374) (su(cid:272)h as a fir(cid:373)s" (cid:373)a(cid:374)ufa(cid:272)turi(cid:374)g pla(cid:374)t or at a large warehouse) and shipping directly to all of its customers. Forward placement: locating stock closer to the customer, at a warehouse, distribution center, wholesaler or retailer. This implies more storage facilities than the centralized placement model. Shipping many small and economical packages increases costs. Mass (cid:272)usto(cid:373)izatio(cid:374) is a strategy (cid:449)here(cid:271)y a fir(cid:373)"s highly di(cid:448)erge(cid:374)t pro(cid:272)esses ge(cid:374)erate a wide variety of customized services or products at reasonably low costs.