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Lecture Manufacturing planning and control for supply chain management (6/e) - Chapter 10a: Management of supply chain logistics

In this chapter, the following content will be discussed: Supply chain logistics scope, supply chain logistics framework, supply chain logistics elements, warehouse replenishment systems, warehouse location analysis, vehicle scheduling analysis, customer service management, principles. | Manufacturing Planning and Control MPC 6th Edition Chapter 10a Management of Supply Chain Logistics Supply chain logistics encompasses all material flows–from the flow of purchased materials into a facility, through the manufacturing process, and out to the final customers. Improved management of supply chain logistics can lead to improvements in customer service with simultaneous reductions in total inventory, transportation, and warehousing costs. Agenda Supply Chain Logistics (SCL) Framework SCL Breadth–all material flow decisions, from raw materials to final customers Total Cost Concept–the general goal is to minimize the overall cost while meeting customer-service goals Design, Operation, and Control Decisions–logistics decisions can be far reaching, SCL management must provide leadership for continued evolution Supply Chain Logistical Elements Transportation Common modes include air, rail, truck, pipeline, and combinations Ownership/management may be private carriage, courier, . | Manufacturing Planning and Control MPC 6th Edition Chapter 10a Management of Supply Chain Logistics Supply chain logistics encompasses all material flows–from the flow of purchased materials into a facility, through the manufacturing process, and out to the final customers. Improved management of supply chain logistics can lead to improvements in customer service with simultaneous reductions in total inventory, transportation, and warehousing costs. Agenda Supply Chain Logistics (SCL) Framework SCL Breadth–all material flow decisions, from raw materials to final customers Total Cost Concept–the general goal is to minimize the overall cost while meeting customer-service goals Design, Operation, and Control Decisions–logistics decisions can be far reaching, SCL management must provide leadership for continued evolution Supply Chain Logistical Elements Transportation Common modes include air, rail, truck, pipeline, and combinations Ownership/management may be private carriage, courier, common carrier, and contract services Prime consideration is cost, main cost factors are quantity discounts and selection of routing Warehouses Customer benefits from warehouses in terms of time and place utility Closer warehouses offer reductions in service time and service costs Customers also derive a level of comfort from having a warehouse nearby (warm puppy effect) Warehouses offer the firm a number of benefits Mixing products from several plants Completing or packaging the product Breaking bulk–taking advantage of carload rates for long-distance shipments to warehouses Inventory Inventory fulfills several marketing requirements Maintenance of a full line of products Provision of adequate display stock Maintaining full inventory pipelines to customers Inventory also serves a buffering role Safety stock Cycle stock Pooling of safety stock over several locations can lead to significant savings Warehouse Replenishment Systems Advantages-Low complexity Disadvantages-Filtered data, .