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1、The Characteristics of Supply Chain ManagementComplexity, Variability, Conflicting Objectives.Order Response TimeProduct AvailabilityLead TimeOrder ChangesDue Date PerformanceResource InvestmentAsset ProductivityInventorySupplier & Capacity ContractsLevel ofServiceCost ofServiceThe Business Challeng
2、es.ComplexityVariabilityConflicting ObjectivesWhat are the characteristics of Supply Chan Management, why is it so hard to manage?.ComplexityLead Times Limit FlexibilityLittle or No Predictability and Poor Product Mix?Chronic CapacityShortagesCurrent Processes and Structures Inhibit PerformanceInven
3、tory Used to Cover ProblemsComplications in the Electronics IndustryComplexity in Component / Semiconductor ManufacturingMass customizationPersonalizationProduct mix effects on capacityMultiple optionsContracted vs. owned capacityCombined make-to-forecast and make-to-orderInverted BOMBinningMulti-st
4、age global production.Uncertainty in the supply chain results in significant variabilityEarlyOn-timeLateEarlyOn-timeLateUnderForecastOverEarlyOn-timeLateCustomer DemandSupplier PerformanceManufacturingCustomer DeliveriesRawMaterialsFinishedGoodsPast PerformanceMarket ResearchAnalytical TechniqueInce
5、ntive ProgramsResponsivenessTransportationLocationQualityProcess DesignProduct DesignCapacityQualityBy Tom Davis.SupplyChannel OrdersActualLaunchReal ShortageReturns/CancellationsOver-SupplyChannel Fill and Phantom DemandTargetLaunchEnd of LifeTrue End Customer DemandUnits Per PeriodTimeMultiple for
6、ecasts and unreliable fulfillment today create the bullwhip effect.Shortened product life cycle has increased the uncertainty.Ramp-upOngoingEnd of LifeRamp-upOngoingEnd of LifeRole of InventoryHighUsualLowCost of ShortageHighUsualLowCost of OverageLowUsualHighBy Professor Hau L. Lee, Stanford Univer
7、sity.VariabilityNaturalDemandMaterial supplyProductionDistributionSelf-IntroducedReplenishment strategiesPlanning processesInventory strategies.Traditional functional alignments continue to impede Supply Chain Performance. Misaligned Functional Goals & BehaviorsPurchasingManufacturingDistributionSal
8、es & Customer ServiceGoal:Behavior:Lowest purchase priceHighest utilizationLowest cost100% customer satisfactionLong lead timesHigh raw material inventory levelLong run lengthsInflexible schedulesHigh WIP inventoryLong order fill timesInflexible schedulesHigh inventoriesPromise flexibility .Conflict
9、ing Objectives - ManufacturingLittles Law Littles LawAssetUtilizationWIPINVCycleTimeVariabilityThroughputWIPCycle TimeVariability.Conflicting Objectives - Customer Littles LawAssetUtilization WIPINVCycleTimeVariabilityOrder Response Time Early WarningsDue Date PerformanceFill Rates.Conflicting Objectives - Corporate Littl
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