GSCM summary + lecture notes added in
Lecture 1: chapter 1
Supply chain surplus = consumer value - supply chain cost = consumer value – price = price
– SC cost
The goal is to maximize the overall value (supply chain surplus) generated.
Decision phases in supply chain can be categorized as follows:
- Strategic supply chain decisions can involve locations and capabilities of facilities,
product to be made or stored at various locations, modes of transportation,
information systems long term and expensive to restore.
- SC planning decisions have the goal to maximize the SC surplus over the planning
horizon. It involves which markets will be supplied from which locations,
subcontracting, back-up locations, inventory policies, timing and size of market
promotions.
- SC operation decision are day to day or week to week, they have less insecurity and
involve allocation of orders to inventory or production and the setting of delivery
schedules.
You can look at the supply chain in two different views:
1. Supply chain could be seen in a cycle view
This view clearly defines the processes involved and the owners of each process. This view is
useful when considering operational decisions, since the owners, the responsibilities and
the desired outcome for each process is specified.
2. Supply chain could be seen from a push/pull principle:
Each process falls into one of these two categories.
Pull: execution is initiated in response to a customer order, (active)
Push: execution is initiated in anticipation of customer orders; based on forecasts rather
than actual demand. (speculative)
Lecture 1: chapter 1
Supply chain surplus = consumer value - supply chain cost = consumer value – price = price
– SC cost
The goal is to maximize the overall value (supply chain surplus) generated.
Decision phases in supply chain can be categorized as follows:
- Strategic supply chain decisions can involve locations and capabilities of facilities,
product to be made or stored at various locations, modes of transportation,
information systems long term and expensive to restore.
- SC planning decisions have the goal to maximize the SC surplus over the planning
horizon. It involves which markets will be supplied from which locations,
subcontracting, back-up locations, inventory policies, timing and size of market
promotions.
- SC operation decision are day to day or week to week, they have less insecurity and
involve allocation of orders to inventory or production and the setting of delivery
schedules.
You can look at the supply chain in two different views:
1. Supply chain could be seen in a cycle view
This view clearly defines the processes involved and the owners of each process. This view is
useful when considering operational decisions, since the owners, the responsibilities and
the desired outcome for each process is specified.
2. Supply chain could be seen from a push/pull principle:
Each process falls into one of these two categories.
Pull: execution is initiated in response to a customer order, (active)
Push: execution is initiated in anticipation of customer orders; based on forecasts rather
than actual demand. (speculative)
