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Ebook Operations and supply chain management (15th edition): Part 2

(BQ) Part 2 book "Operations and supply chain management" has contents: Lean supply chains; logistics, distribution, and transportation; enterprise resource planning systems; forecasting; sales and operations planning; inventory management; workcenter scheduling,.and other contents. | www.downloadslide.com Supply Chain Processes SECTION THREE 14. Lean Supply Chains 15. Logistics, Distribution, and Transportation 16. Global Sourcing and Procurement The Green S u p p ly Ch ain An important part of sustainability initiatives at global organizations is the close examination of their supply chain environmental footprint. The term environmental footprint relates to the impact that running the supply chain has on the environment. It is essential that companies orchestrate greening efforts across all supply chain processes, starting with product development, sourcing, manufacturing, packaging, transportation, demand fulfillment, and end-of-life management. Managing logistics, which are transportationrelated processes, is probably one of the more discussed greening efforts in supply chain management. There is a direct relationship between transportation efficiency and transportation costs. Minimizing miles traveled, using more efficient means for moving goods, and improving capacity utilization through consolidation of shipments reduces energy consumption and transportation costs, while at the same time reducing carbon emissions. 349 www.downloadslide.com 14 Lean Supply Chains Learning Objectives LO 14–1 LO 14–2 LO 14–3 LO 14–4 Explain what lean production is. Illustrate how lean concepts can be applied to supply chain processes. Analyze supply chain processes using value stream mapping. Apply lean concepts to service processes. FROM L EAN SUPPLY CHAIN TO LEAN DESIGN As seen in the diagram, the just-in-time approach to manufacturing has resulted in major reductions in inventory in U.S. companies over the past two decades. As we can see in the more recent data, some companies think it has gone too far and that having a little extra inventory might be a healthier option. Although being lean helps companies hold down costs by keeping stockpiles of components and finished goods low, it can leave them high and dry if there is .