ì  BA  244:  Supply  Chain  Management  

ì  Teams  

ì  Google  Scholar  

ì  Google  Scholar  

ì  Google  Scholar  

ì  Eigenfactor.org  

ì  Eigenfactor.org  

ì  Eigenfactor.org  

Eigenfactor.org  

ì  Thomson-­‐Reuters  Journal  Cita3on  Reports  (JCR)  

ì  Eigenfactor  Scores  (EF)  ì  Journal’s  total  importance  to  the  scien3fic  

community  

ì  Ar3cle  Influence  (AI)  ì  Measure  of  the  average  influence  of  each  of  its  

ar3cles  over  the  first  five  years  aEer  publica3on  

SCM  Journal  Article  

ì  Prior approval of topic from me

ì  Write a 1-page summary report (abstract) along with a link to the article and Post as a Conversation in the LinkedIn group  

Supply  Chain  Management  

ì  The  management  of  upstream  and  downstream  rela.onships  with  suppliers  and  customers  to  deliver  superior  customer  value  at  less  cost  to  the  supply  chain  as  a  whole  (Christopher)  

Supply  Chain  Management  

ì  ‘If  a  firm  has  NOT  first  coordinated  its  own  internal  processes,  and  made  them  efficient,  it  will  generally  NOT  be  prepared  to  cooperate  more  closely  with  other  supply  chain  par.cipants,  nor  to  define  clear  areas  of  improvement  –  and  the  poten3al  advantages  of  SCM  will  not  accrue’  (CIPS,  Jespersen  and  Skjo.-­‐Larsen)  

Internal  Supply  Chain  

Procurement   Produc3on   Storage   Distribu3on   Sales  and  Marke3ng  

Informa3on  (capacity  data,  delivery  schedules,  payment  terms)  Materials  (finished  goods,  services)  

Informa3on  (promo3on  plans,  sales  forecast,  orders)  Materials  (returns,  goods  for  repair)  

Finance  (payment)  

Demand  Management  

ì  Balances  customer  requirements  with  the  capabili3es  of  the  supply  chain  (Lambert,  2008)  

ì  Process  within  an  organiza3on  to  “tailor  its  capacity,  to  meet  varia.ons  in  demand,  or  to  manage  the  level  of  demand  using  marke.ng  or  SCM  strategies”  (CIPS)  

Internal  Supply  Chain  

Procurement   Produc3on   Storage   Distribu3on   Sales  and  Marke3ng  

Forecas3ng  

CPFR  

Promo3ons  

POS  Data  

Capacity  Assessment  

Case  Studies  

ì  Campbell’s  Soup  ì  Winter  promo3on  of  chicken  noodle  soup  ì  No  capability  or  stock  in  place  ì  Result:  Cost  exceeded  Revenue  

ì  Volvo  ì  In  mid-­‐90s,  excessive  inventory  of  green  cars  ì  Sales  and  Marke3ng  offered  special  deals  and  discounts  ì  Sales  increased,  so  planning  group  increased  produc3on  ì  Result:  unsold  green  cars,  because  sales  was  caused  by  

deals,  not  that  customers  finally  liked  green  cars  

Forecasting  Demand  

ì  Predict  the  future  based  on  past  data  

ì  Gut  Feel  

ì  Structured  Analy3cal  Planning  ì  Moving  Averages  ì  Exponen3ally  Weighted  Average  Method  (EWAM)  

Types  of  Demand  

ì  Independent  ì  Influenced  by  market  condi3ons  ì  Not  related  to  produc3on  decisions  ì  Can  be  es3mated  and  usually  demonstrates  a  

con3nuous  and  definable  pabern  ì  e.g.  final  product  sold  to  the  customer  

ì  Dependent  ì  Can  be  forecasted  ì  Depends  on  product  decisions  for  its  ‘parent’  ì  e.g.  top  and  legs  for  ‘parent’  table  

Economics  of  Stock  Management  

ì  Acquisi3on  Costs  ì  Arising  from  placing  an  order  ì  Irrespec3ve  of  the  size  of  the  order  ì  e.g.  PO  processing,  receipt  of  goods,  inspec3on  

ì  Holding  Costs  ì  Insurance  ì  Losses  due  to  obsolescence  and  pilferage  ì  Storage  Space  and  Electricity  

ì  Costs  of  Stockouts  ì  e.g.  Idle  3me,  loss  of  customer  goodwill  

Economic  Order  Quantity  

ì  The  op3mal  ordering  quan3ty  for  an  item  of  stock  that  minimizes  cost  

Demand-­‐Driven  Supply  Network  (DDSN)  

ì  Tradi3onal  ì  Manufacturers  were  forecast-­‐driven  and  sales-­‐

driven  and  the  products  were  pushed  downstream  towards  end  customers  

ì  In  DDSN,  products  are  ‘pulled’  to  market  by  customers  

ì  System  of  technologies  and  processes  that  sense  and  react  to  real-­‐3me  demand  across  a  network  of  customers,  suppliers,  and  employees  (Doherty,  2005)  

ì  Bullwhip  Effect  

Bullwhip  Effect  

ì  Forrester  Effect  

ì  Demand  distor.on  that  travels  upstream  in  the  supply  chain  due  to  the  variance  of  orders  which  may  be  larger  than  that  of  sales  (Lee  and  Billington,  1992)  

ì  Inventory  is  oEen  a  subs.tute  for  informa.on,  as  any  kind  of  uncertainty  is  covered  by  inventory.  However,  adding  in  safety  stocks  can  send  out  false  signals  and  encourage  suppliers  to  also  compensate  for  uncertainty  by  similarly  building  in  safety  stocks  

ì  End