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Date Submitted: 03/09/2011 02:24 AM
National Taiwan Ocean University Department of Transportation and Navigation Science
Introduction to Supply Chain Management
Instructor: Eric Ting
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What Is A Supply Chain?
The system of suppliers, manufacturers, transportation, distributors, and vendors that exists to transform raw materials to final products and supply those products to customers. That portion of the supply chain which comes after the manufacturing process is sometimes known as the distribution network.
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The Logistics Network
Warehouses and Suppliers Manufacturers Distribution Centers Customers
Transportation Costs
Transportation Costs
Material Costs
Manufacturing Costs
Inventory Costs
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What Is the Goal of Supply Chain Management?
Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed: •In the right quantities •To the right locations •At the right time In order to •Minimize total system cost •Satisfy customer service requirements
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Sequential Optimization vs. Global Optimization
Sequential Optimization
Procurement Planning Manufacturing Planning Distribution Planning Demand Planning
Global Optimization
Supply Contracts/Collaboration/Information Systems and DSS
Procurement Planning
Manufacturing Planning
Distribution Planning
Demand Planning
Why is Global Optimization Hard?
The supply chain is complex. Different facilities have conflicting objectives. The supply chain is a dynamic system. The system varies over time.
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Conflicting Objectives in the Supply Chain
1. Purchasing • Stable volume requirements • Flexible delivery time • Little variation in mix • Large quantities 2. Manufacturing • Long run production • High quality • High productivity • Low production cost
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Conflicting Objectives in the Supply Chain
3. Warehousing • Low inventory • Reduced...