Supply Chain Management

Supply Chain Management - Process, Capacity & Inventory Management

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. These departments have their own objectives and these are often conflicting.

Marketing's objective of high customer service and maximum sales value conflict with manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts are often negotiated with very little information beyond historical buying patterns.

The result of these factors is that there is not a single, integrated plan for the organization. Clearly, there is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such an integration can be achieved.

Supply Chain Management has several levels of activities that different parts of the company will focus on: process, capacity, inventory, logistics and purchasing.
 

Course Outlines

• Transformation process and process analysis.
• Capacity management decisions.
• Simple Dispatching/Priority Rules.
• Queuing systems and the management of queues.
• Three Common Performance Measures for Managing Inventory.
• The Importance of Inventory Placement.
• Fixed-Order Quantity Model versus Fixed-Time Period Model.
• Required Safety Stock Levels.
• Mechanics of MRP system.

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