MGBU 3438 Lecture Notes - Lecture 1: The Home Depot, Costco, Mass Customization

• School: Fordham University
• Department: Management Science
• Course: MGBU 3438
• Professor: Dongli Zhang

Document Summary

There must be a process/operation/system in place that does something; A process that produces organizations primary product or provides primary service. Process: transforms inputs into outputs (uses resources) Need to understand principles that govern flows. All stages involved (directly/indirectly) in fulfilling customer request. Supply chain management (scm): total system approach to managing entire flow of information/materials/services from raw material suppliers through factories and warehouses to end customer. Weeks of supply (how long you can last with no new inventory) Walmart (8-10), home depot (5), costco (12-13), apple (30) Bullwhip effect: unanticipated change in retail demand results in increased fluctuations in demand as move from retailer to supplier. Stable = know how much inventory, when to schedule. Increase costs at each stage and reduce sc profitability. Process: transforms inputs (raw materials, technology, information) into outputs. Basic business types: reflect how things (goods, people or information) flow through process: continuous, assembly line, manufacturing cell (batch, workcenter (job shop, project (finite duration)