100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached 4.2 TrustPilot
logo-home
Summary

Summary Supply chain management HIR - major production and logistics (15/20)

Rating
-
Sold
14
Pages
107
Uploaded on
12-02-2025
Written in
2024/2025

This summary provides a clear and structured overview of the subject Supply Chain Management, with an addition of your own lesson notes. All important concepts, theories and models from the lessons and slides are summarized in a clear way.

Show more Read less
Institution
Module















Whoops! We can’t load your doc right now. Try again or contact support.

Written for

Institution
Study
Module

Document information

Uploaded on
February 12, 2025
Number of pages
107
Written in
2024/2025
Type
Summary

Subjects

Content preview

2024-2025




SAMENVATTING SUPPLY CHAIN
MANAGEMENT


MERI DELBROEK

,Inhoudsopgave

Samenvatting – supply chain management ......................................................................................... 4
Understanding the supply chain ...................................................................................................... 4
What is a supply chain? .............................................................................................................. 4
SCM is about trade-offs .............................................................................................................. 4
Tea supply chain ......................................................................................................................... 4
What is a supply chain?............................................................................................................... 5
Decision phases of a supply chain ............................................................................................... 5
Process views of a supply chain .................................................................................................. 6
Macro processes ........................................................................................................................ 8
SC coordination .......................................................................................................................... 8
SC performance: achieving strategic fit ........................................................................................... 9
Competitive and functional strategies ......................................................................................... 9
Uncertainty in demand................................................................................................................ 9
Implied demand uncertainty ..................................................................................................... 10
Supply chain capabilities .......................................................................................................... 11
Responsiveness? The CODP ..................................................................................................... 11
Sustainable supply chains pt.1: sourcing ...................................................................................... 13
The tree pillars of sustainability ................................................................................................. 13
Environmental sustainability ..................................................................................................... 13
Sources of emission ................................................................................................................. 13
Sustainability is extremely relevant in a SC context .................................................................... 14
Social responsibility .................................................................................................................. 14
Sustainable sourcing ................................................................................................................ 15
Supply chain networks .............................................................................................................. 15
Current supply chain networks .................................................................................................. 19
A SSC example ......................................................................................................................... 19
Corporate social responsibility (CSR)......................................................................................... 20
How? ....................................................................................................................................... 21
More examples ......................................................................................................................... 23
Sustainable supply chains pt.2: Carbon Footprint ......................................................................... 23
What is this? ............................................................................................................................. 23
The main problem ..................................................................................................................... 23
Supply chains are more than just transport ................................................................................ 24
Why do we want to measure emissions? .................................................................................... 26
What about SCOPE 3? .............................................................................................................. 29
A (potential) way forward ........................................................................................................... 30

1

, One important detail ................................................................................................................. 30
Supply chain visibility................................................................................................................ 30
Application to scope 3 estimation ............................................................................................. 31
Supply chain network design pt. 1: strategic issues ........................................................................ 32
Distribution network design....................................................................................................... 32
Design options.......................................................................................................................... 35
Supply chain network design pt. 2: framework for network design decisions ................................... 43
Framework for network design .................................................................................................. 43
Phase III: desirable sites ............................................................................................................ 44
Phase II & IV: capacitated location models ................................................................................. 46
Joint replenishment pt.1 – deterministic demand........................................................................... 53
Motivation ................................................................................................................................ 53
Where does S come from? ........................................................................................................ 53
Joint replenishment problem ..................................................................................................... 53
Joint replenishment in distribution ............................................................................................. 54
Example: best buy .................................................................................................................... 54
Power-of-two policy .................................................................................................................. 56
Tailored aggregation .................................................................................................................. 57
Conclusions ............................................................................................................................. 59
Forecasting demand in a supply chain pt.1 : static methods........................................................... 59
Forecasting .............................................................................................................................. 59
Some examples ........................................................................................................................ 61
Forecasting demand in a supply chain pt.2 : adaptive methods ...................................................... 68
Adaptive forecasting ................................................................................................................. 68
Parameters ............................................................................................................................... 68
Procedure ................................................................................................................................ 68
Forecast methods..................................................................................................................... 68
N-period moving average........................................................................................................... 68
N-period moving average........................................................................................................... 69
Simple exponential smoothing .................................................................................................. 70
Influence of alpha ..................................................................................................................... 70
Single exponential smoothing (α = 0.1) ....................................................................................... 71
Double exponential smoothing (Holt’s model) ............................................................................ 71
Triple exponential smoothing (Winters’s model) ......................................................................... 72
How can we choose? ................................................................................................................ 73
Measures of forecast error ........................................................................................................ 73
The link to inventory decisions… ................................................................................................ 75
In practice ................................................................................................................................ 75

2

,Aggregate production planning ..................................................................................................... 75
Planning decisions .................................................................................................................... 75
Aggregate production planning (app) ......................................................................................... 76
Why do this? ............................................................................................................................. 76
The role of uncertainty .............................................................................................................. 76
Typical parameters ................................................................................................................... 77
3 main strategies ...................................................................................................................... 77
Strategies: chase ...................................................................................................................... 77
Strategies: level ........................................................................................................................ 78
Strategies: mixed (tailored) ........................................................................................................ 78
But first….................................................................................................................................. 79
Aggregate production planning .................................................................................................. 79
Strategy #1: level production ..................................................................................................... 82
Strategy #2: zero inventory (chase) ............................................................................................ 84
Chase or level? ......................................................................................................................... 85
Chase #2: allow limited backorders (by hiring 1 fewer worker) ..................................................... 86
Surely, we must be able to optimize this? ................................................................................... 87
Linear programming: tailored strategy ........................................................................................ 87
Extensions to the LP fromulation ............................................................................................... 89
Supply chain coordination pt. 1..................................................................................................... 90




3

,Samenvatting – supply chain management
Understanding the supply chain
There’s a limit to how much efficiency can be gained by optimizing local processes

Your supply chain will be as weak as the weakest link


What is a supply chain?
All the stages (=echelons) involved, directly or indirectly, in fulfilling a customer request

Supply chain management is primarily 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 and the right time, and so as to minimize total system cost subject to satisfying service
requirements.

SCM looks at the problem of managing the flow of goods in an integrated manner


SCM is about trade-offs
Purchasing Warehousing

Stable volume requirements Low inventory
Flexible delivery time Low transportation costs
Little variation in mix Quick replenishment
Large quantities
Manufacturing Sales

Long run production Short order lead time
High quality Large inventories
High productivity Enormous variety of products
Low production costs Low prices


As a decision-maker, you need to deal with:

- A sales department who wants cheap, and infinite, inventory of products
available immediately from the warehouse.
- The warehouse, who wants as little inventory as possible, replenished
almost immediately by manufacturing.
- Manufacturing, who wants to produce in long runs (long LT), altering
designs and materials to achieve lower costs and higher quality.
- Procurement, who want stability from manufacturing and require fast lead
times from the suppliers.


Tea supply chain

Upstream: extremely long lead times, manual process
Processing: few different products, long lead times
Blenders: multiple combinations, marketing differentiation
Retail: cheap products, requires high service level



4

,What is a supply chain?
- Better name: supply network
- The customer is an integral part of the supply chain
- The movement of products is essential, but it also includes movement of information and funds
in both directions
- Not all stages are present in every supply chain

Multiple flows:




Objective of a supply chain
- Maximize overall value created (what’s value?)
- Measured with supply chain profitability (revenue from the customer – total cost)
- SC success -> measured by total SC profitability (NOT sum of individual profits)

SCM
- Manage SC flows and assets to maximize SC surplus
- One source of revenue: the final customer
Multiple sources of cost: all the different flows
- Close connection between design, planning, and operation of a SC and its success


Decision phases of a supply chain




Supply chain strategy and design
- Long-term, expensive, and difficult to reverse
- Must take uncertainty into account
- Decisions about the structure of the supply chain
- What processes will each stage perform?
o Inhouse vs. outsourcing
o Facility location and capacity
o Where to produce and store
o Transportation modes
o IT systems

Supply chain planning
- Constrained by the strategic decision
- Input: medium-term demand forecast

5

, - Goal: exploit flexibility to optimize performance
- Policies for mid-term operations
o Which markets from which location?
o Subcontracting part of our manufacturing?
o Inventory policy? Planned buildup?
o Market promotions?

Supply chain operations
- Constrained by the tactical decisions
- Input: actual customer orders
- Goal: implement the policies as effective as you can
- Policies for short-term operations
o Almost no uncertainty
o Allocate orders
o Set due dates
o Generate picking lists, etc.

Decision phases of a supply chain




Process views of a supply chain
Two ways of visualizing the processes

- Cycle view: divide the SC in cycles at the interface of each successive pair of stages
- Push/pull view: processes are divided into 2 categories, depending on whether they are a
response to a customer order (pull) or in anticipation of a customer order (push)


Cycle view of a SC
Clearly defines the process and their owner
Useful when considering operational decisions




6

, Each cycle happens between two stages (echelons)
Six subprocesses per cycle




Push/pull view
Most intuitive way of looking at it
Splits the SC into push and pull




CODP: customer order decoupling point

Examples:

1. Handmade violin




2. Tea in the store




=> 0 lead time
3. Laptops online




CODP Lead time
7

Get to know the seller

Seller avatar
Reputation scores are based on the amount of documents a seller has sold for a fee and the reviews they have received for those documents. There are three levels: Bronze, Silver and Gold. The better the reputation, the more your can rely on the quality of the sellers work.
meridelbroek Katholieke Universiteit Leuven
Follow You need to be logged in order to follow users or courses
Sold
33
Member since
1 year
Number of followers
0
Documents
4
Last sold
1 week ago

0.0

0 reviews

5
0
4
0
3
0
2
0
1
0

Recently viewed by you

Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their exams and reviewed by others who've used these revision notes.

Didn't get what you expected? Choose another document

No problem! You can straightaway pick a different document that better suits what you're after.

Pay as you like, start learning straight away

No subscription, no commitments. Pay the way you're used to via credit card and download your PDF document instantly.

Student with book image

“Bought, downloaded, and smashed it. It really can be that simple.”

Alisha Student

Frequently asked questions