Supply Chain Integration: Implications of Demand and Supply Uncertainty

Department of Mechanical and Manufacturing Engineering

Faculty of Engineering University Putra Malaysia

Topic:

Supply Chain Integration:

Implications of Demand and Supply Uncertainty

Student Name:

Dickson Timinyo GS38235

Supervised by:

Prof. Dr. Rosnah Mohd Yusuff

As a partial fulfillment for subject

EMM5624 Supply Chain Management

September 2014

Table of Content Page

1. Introduction 3

2. Functional and innovative product 3

2.1 Functional Product 3

2.2 Innovative Product 4

3. Strategy Management of Supply Chain 5

3.1 Responsive VS Efficient Supply Chain 7

4. Agile Supply Chain 9

4.1 Introduction 9

4.2 Agility Concepts 9

4.3 Agile supply chain in decoupling point 11

5. Performance Metrics 13

5.1 Purpose of Performance Measurement 13

5.2 Type of Performance Metrics 14

6. Push, Pull and Push-Pull Systems 16

6.1 Introduction 16

6.2 Push System 16

6.3 Pull System 17

6.4 Push-Pull System 17

7. Demand-Driven Strategies 18

8. Conclusion 21

9. References 22

1. Introduction

Demand uncertainty leads to vertical product differentiation even when consumers are homogeneous. Demand uncertainty is an important aspect that is linked to the classification of innovative or functional products. Innovative products are often characterized by a high degree of unpredictable demand uncertainty, whereas functional, commodity-like products face a high degree of demand stability

The responsiveness of supply chains to changing market requirements and their overall efficiency are important issues in supply chain design and management and therefore currently receive wide attention in the scientific community as well as in practice. Responsiveness can be defined as the “ability to react purposefully and within an appropriate time-scale to customer demand...