BUSI 650 Chapter Notes - Chapter 6: Apics, Stockout, Bullwhip
2 Mar 2018
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Demand chain: newer pull systems, consisting of jit deliveries, lean manufacturing etc dictate a different view of the value chain. Supply chain strategy: needs to be tailored to meet the needs of its customers, should focus on maximizing the value to its customers, where value can be considered to be benefits received for the price paid or benefits/cost. Make to stock (mts: fastest response because the order can simply be pulled off the shelf and sent to the customer. Make to order (mto: slower than mts and ato. Engineer to order (eto: slower than mts, ato, and mto. Logistics: defined as planning and controlling the efficient, effective flows of goods, services, and information from one point to another. Functional products: tend to be staples that we routinely purchase, tend to be more mature products with predictable demand patterns, long life cycles, and relatively low contribution margins. Leverage the location decision to enhance the development of long term capabilities (6)
