BU395 Study Guide - Midterm Guide: Economic Order Quantity, Inventory Turnover, Economic Production Quantity
Document Summary
Supply chain describes how a sequence of organizations (suppliers, manufacturers, distributors, and customers) is linked together in producing and delivering a product through collaboration and coordination to meet market demand. The bullwhip effect (demand amplification) phenomenon in which the demand variability progressively increases for companies upstream in the sc; increase uncertainty. Members of the sc determine the goals and competitive characteristics such as: quality, cost, variety (flexibility), Timeliness (speed), customer service; fill rate (i. e. , percentage of demand filled from stock on hand) Designing/redesigning the products and the supply chain with respect to these goals and competitive characteristics: tactical (planning)/operational activities. Production planning and control, including forecasting, purchasing, transportation of material, inventory control, warehousing, and scheduling of production and distribution/deliveries, movement of products (replenishment), and customer service. 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. e. g. , salads.
