University:
MacEwan University
Course:
SCMT 200 | Introduction To Global Supply Chain Management
Academic year:

2023
Views:

100

Pages:

2
Author:

Arthur M.

6 Supply chain drivers DECISION MAKING FRAMEWORK Competitive Strategy Supply Chain Strategy Efficiency Responsiveness Supply Chain Structure play a role in everyday production, Storage,supply chain activity movement of goods drivers do not act independently but interact to deter- min overall chain performance more facilities = more responsive = more inventory fewer central facilities = higher efficiency high inventory high responsiveness goal is to use all supply Chain drivers to achieve balance responsiveness & efficiency so its competitive Strategy & Supply Chain↑ responsiveness by ↑ capacity, ↑or a combooften less efficient warehouses of D.C. dedicated → limited number of products but more efficient product focus → performs all the functions needed for one product functional focus → performs given set of functions on many products Cross docking → in-bound trucks from sup- pliers are unloaded, prod- uct broken into smaller & loaded on store bound trucks Storage facilities decide what products to be stored @ which facility •LOCATION: Centralize & gain economies of scale decentralize to become more responsive by being close to customers or taxes, tariffs, workers, cost of workers/ facility, etc. or CAPACITY: excess capacity allows facility to re- spond to wide swings in demands placed but costs money → can decrease efficiency high-utilization facility troubles respond- ing to fluctuation •DEMAND ALLOCATION: must determine the markets (geography/products) facility will serve FACILITY RELATED PRODUCTS: •Capacity utilization •processing/setup/down/idle time losses on cost production per unit •actual average flow/cycle time theoretical flow/cycle time of production product variety •volume contribution of top 20%% SKUs customers • average production batch size