MIS 111 Lecture Notes - Lecture 6: Marginal Cost, Six Sigma, Customer Relationship Management

• School: University of Arizona
• Department: Management Info Systems Main
• Course: MIS 111
• Professor: Mark Patton, William Neumann

Document Summary

Segments of the value chain: enterprise resource management, inside the walls management, supply chain management, vendor-facing management (upstream, customer relationship management, customer facing management (downstream) Scm issue: bullwhip effect: large variations in demand in the supply chain, assume flat consumer demand. Increasing amplitude fluctuations in frequency, size and composition in the supply chain: impact of the bullwhip effect, excessive inventory (creased safety stock, poor customer service (service levels stock outs, misused manufacturing capacity (productivity, lost revenues (marginal cost) Process improvement: scor, lean, six sigma, deliver improvement through linking business and supply chain strategies, focusing on customer value, eliminating non-value added and wasteful activities and reducing process errors and variation, scor model, provides strategic focus . Identifies specific processes for improvement: aligns business and supply chain strategies, links process elements, metrics and best practices, optimizes business and supply chain management, lean.