University:
University of Alberta
Course:
BUS 640 | Strategic Supply Chain Management
Academic year:

2024
Views:

376

Pages:

2
Author:

Neena N.

Lecture Notes: Process Views of Supply Chain Cycle View ● ● ● Processes in a supply chain are divided into cycles that occur at the interface between stages. Four main cycles: Customer Order, Replenishment, Manufacturing, and Procurement. Cycle view clearly defines roles, responsibilities, and desired outcomes for each process. Example: ● ● ● ● A customer places an order (Customer Order Cycle). The retailer places an order with the distributor (Replenishment Cycle). The distributor orders from the manufacturer (Manufacturing Cycle). The manufacturer procures raw materials (Procurement Cycle). Push/Pull View ● ● ● Processes are categorized based on whether they are executed in response to customer orders (pull) or in anticipation of them (push). Push processes are initiated and performed in anticipation of customer orders. Pull processes are initiated by a customer order. Example: ● ● Push: Manufacturing products based on sales forecasts. Pull: Ordering inventory from suppliers only after receiving customer orders. Push/Pull View with a practical example: Scenario: A Just-in-Time (JIT) Manufacturing System A JIT system aims to minimize inventory levels by producing goods only as needed in response to customer orders. This approach is heavily reliant on pull processes. Cycle View: ● ● ● Customer Order Cycle: The customer places an order. Replenishment Cycle: The manufacturer orders raw materials from suppliers based on the customer order. Manufacturing Cycle: The manufacturer produces the goods to fulfill the customer order. ● Procurement Cycle: The suppliers deliver the raw materials to the manufacturer. Push/Pull View: ● ● Push: The manufacturer might forecast demand and produce a certain quantity of goods in anticipation of orders (e.g., seasonal products). Pull: The manufacturer produces goods only after receiving customer orders, ensuring a close alignment between supply and demand. In a JIT system, the focus is on pull processes to minimize inventory and reduce waste. However, some degree of push may be necessary to ensure a continuous flow of materials and products.