Escolar Documentos
Profissional Documentos
Cultura Documentos
Strategic Fit
1) Understanding the customer
2) Understanding the supply chain
3) Matching customers’ attributes with supply chain’s capability
Supply Chain Drivers: inventory, transportation, facilities, information, sourcing and pricing
1) determine the supply chain’s performance in terms of responsiveness and efficiency
2) determine whether strategic fit is achieved within the supply chain
cross-dock
uncertainty
low: Purely functional products: gasoline
Somewhat certain: Established goods: crest toothpaste
Somewhat uncertain: New models of existing goods: new Ford Taurus
High: Entirely new products: the introduction of the smartphones
Holding risk:
• capital or opportunity cost (cost of money)
• deterioration
• pilferage
• obsolescence
• taxes
• insurance
• storage cost (warehouse)
• handling cost
Holdling cost per year = Irc
• I is the average inventory (unit)
• c is the unit value cost ($/unit)
• r is the carrying cost rate ( $/$/year)
Product availability: a firm’s ability to fill a customer’s order out of available inventory
Stockout: a customer order arrives when product is not available
Product fill rate (fr): fraction of demand that is satisfied from product in inventory
Order fill rate: fraction of orders that are filled from available inventory
Cycle service level: fraction of replenishment cycles that end with all customer demand met
Continuous review: time between order qty different, order qty same, safety needs less.
Periodic review: time same, qty different, safety needs more