This chapter include objectives: Explain the importance of maintenance in production systems, describe the range of maintenance activities, discuss preventive maintenance and the key issues associated with it,. | PART III IMPLEMENTING ADVANCED PLANNING SYSTEMS CHAP 15 The Definition of a Supply Chain Project LAYOUT Simple example to illustrate the decision situation Introduction Supply Chain Evaluation Executive Management Sales Product Management and Engineering Procurement Order Management Production Distribution Coordination and Integration Technology Summary of the Last Lecture The lecture has explained the Basics of Material Requirements Planning and detailed understanding of Generation and Timing of Uncritical Orders. Quantity Discounts and Supplier Selection was also discussed. The way APS can support the selection of suppliers and the decisions on order sizes, taking into account the specific cost functions of suppliers, which often allow for quantity discounts (). This may apply to input materials for production, indirect materials and articles of merchandise. The automation of the procurement process by means of an APS module can streamline the traditional, labor intensive tasks of procurement, especially in a B2B environment. Optimized procurement decisions can further reduce holding and total acquisition costs by exploiting quantity discounts and selecting suppliers in the best way possible. Simple example to illustrate the decision situation In a practical setting, one often has to take into account supplier-specific lead times, delivery schedules or minimum order quantities. Also, if several items are bought from one supplier and procured by a single consignment, fixed ordering costs may be shared among these items. Even more, discounts may be granted for total purchases of a group of products (see Degraeve et al. 2005). A simple example is constructed to illustrate the decision situation: Let us assume that item P1 can be purchased from two suppliers (s D 1;2). One supplier is offering all-units and the other incremental discounts (Table ). There are three purchasing intervals (v= 1,2,3) for each supplier s with prices pv,s. . | PART III IMPLEMENTING ADVANCED PLANNING SYSTEMS CHAP 15 The Definition of a Supply Chain Project LAYOUT Simple example to illustrate the decision situation Introduction Supply Chain Evaluation Executive Management Sales Product Management and Engineering Procurement Order Management Production Distribution Coordination and Integration Technology Summary of the Last Lecture The lecture has explained the Basics of Material Requirements Planning and detailed understanding of Generation and Timing of Uncritical Orders. Quantity Discounts and Supplier Selection was also discussed. The way APS can support the selection of suppliers and the decisions on order sizes, taking into account the specific cost functions of suppliers, which often allow for quantity discounts (). This may apply to input materials for production, indirect materials and articles of merchandise. The automation of the procurement process by means of an APS module can streamline the traditional, labor
