un-cooperative Psychological variable: customers
Balking Leaving before you even get in line because of the length
Reneging Waiting in line and leaving because of the waiting
slow Psychological variable: employees
take a number Psychological variable: system
free Psychological variable: stuff (TV, reading material)
Mean arrival rate Lambda (Upside down Y)
Mean service rate Mew (U lookin thing)
Percentage server is busy P
Average customers in system Ns
Average time spent in system Ts
Average length of line N1
Average time in line T1
Probability of exact number of customers in system Pn
Vendor managed inventory Supplier is responsible for keeping shelves full
Customers approach business in many different ways
omni-channel retailing Often leads to customers knowing more about a business'
inventory than the employees
demand Goals of supply chain integration: Meet
profitability Goals of supply chain integration: Contribute to
improvement Goals of supply chain integration: continuous
High Pros of push supply chain: inventory
Short Pros of push supply chain: lead times
Defects Pros of push supply chain: are tolerable
, Low Cons of push supply chain: Customization
forecasting Cons of push supply chain: can be costly
defects Cons of push supply chain: are tolerable
High Cons of push supply chain: inventory
Low Pros of pull supply chain: inventory
demand Pros of pull supply chain: driven system
flexible Pros of pull supply chain: manufacturing
developed Pros of pull supply chain: supplier ties
low Cons of pull supply chain: inventory
risky Cons of pull supply chain: customer service rates
Harder Cons of pull supply chain: to sell
forecasting Cons of pull supply chain: can be costly
System where customer has to wait until product is com-
Pure pull
pletely finished (inventory is 0)
System where finished goods are waiting in inventory,
Lean/JIT
DCs, and retail stores for customers to go get
Having a ton of inventory ready in all locations of the
Push system
supply chain
Combines push and pull system; pushes standardized
Postponement system
manufacturing and pulls customized options to customers
Very high and very low supply levels while demand re-
Bullwhip effect mains constant
Gets even uglier with 2nd tier suppliers
Instead of giving some people their full orders, you give
Rationing and gaming
all customers some of their orders
Contract manufacturing Having other companies make things
2/9