Supply chain: encompasses all activities associated with the flows and transformation of
goods and services from the raw materials stage through to the end-user, as well as the
associated information and monetary flows.
Operations management: Management of the transformation process in an effective and
efficient way.
Supply chain management: cooperation and integration of materials and information and
trust throughout the supply chain might be necessary to obtain a valuable chain with
satisfied customers.
Global supply chain management: flow of goods and services from suppliers to customers
(and vice versa) located all over the world
Outsourcing
- Third party logistics (PostNL)
- Vendor managed inventories (Ford)
- Original equipment/design manufacturers (Foxconn)
Produce faster:
- Efficient consumer response: extensive collaboration between firms to respond
faster/better/cheaper to the ever-changing demands and wishes of customers
- Cycle time reduction: The cycle time of a supply chain equals the total time required to
complete the total process from raw materials to the delivery of the finished product to the
customer.
- Just-in-time: philosophy of continuous and forced problem solving that drives out waste.
Logistics is the part of the supply chain process that: plans, implements, and controls the
efficient, effective flow and storage of goods, service and related information from the point
of origin to the point of consumption in order to meet customer’s requirements.
(transportation and inventory of products)
Materials management: all activities to move materials, components and information
efficiently to and within the production process and all activities to use the production
process efficiently. Physical distribution: refers to the movement of goods and information
outward from the end of the assembly line to the customer.
Objective: expression that maximises or minimises some aspect. (Maximal or minimal)
Constraints: restriction that limit the degree to which a manager can pursue an objective
(less than or more than)
, Performance of entire supply chain
- Quality of product
- Possibilities of responding to demand of customers
- Inventory levels
- Cycle time of supply chain
The supply chain is as strong as the weakest link -> Bottleneck
Efficiency: do the job right
- Minimal investment and costs
- Minimal utilization rates and throughput times
Effective: do the right job
- The right product
- At the right time
- To the right customers
- At the right quality
- At the right quantity
Deterministic: No random input. Everything is known in advance.
Stochastic: Under similar circumstances different things could happen.
Arrivals:
- Inter-arrival time: Time between two subsequent arrivals of products at their
entrance in the process.
- Arrival rate: Number of products that arrive per time unit.
Example: 3 arrivals in one hour -> Inter arrival time = 20 minutes.
-> Arrival rate = 3 products per hour
Throughput time: Time that passes between the moment at which the customer/product
enters the system and the moment at which the customer/products is ready.
Deterministic throughput times: Can be estimated by adding up the expected processing
times of the different processes. (No probability, use the average)
Multiply resulting deterministic throughput time with probability that the path will be
followed.
Design capacity: Theoretical maximum output of a system or process in a given period. (60/
time per customer)
Effective capacity: actual capacity that can be expected given the product mix methods of
scheduling, maintenance and standards of quality. (design capacity * effective performance)
Sufficiency: Is design capacity sufficient to handle the expected number of products that
arrive at the various processes? Compare the number of products which arrive at system
with the design capacity of this specific system.
- Calculate design capacity of each process
- Calculate the expected number of products arriving at that process
- Compare answers from step 1 and 2
goods and services from the raw materials stage through to the end-user, as well as the
associated information and monetary flows.
Operations management: Management of the transformation process in an effective and
efficient way.
Supply chain management: cooperation and integration of materials and information and
trust throughout the supply chain might be necessary to obtain a valuable chain with
satisfied customers.
Global supply chain management: flow of goods and services from suppliers to customers
(and vice versa) located all over the world
Outsourcing
- Third party logistics (PostNL)
- Vendor managed inventories (Ford)
- Original equipment/design manufacturers (Foxconn)
Produce faster:
- Efficient consumer response: extensive collaboration between firms to respond
faster/better/cheaper to the ever-changing demands and wishes of customers
- Cycle time reduction: The cycle time of a supply chain equals the total time required to
complete the total process from raw materials to the delivery of the finished product to the
customer.
- Just-in-time: philosophy of continuous and forced problem solving that drives out waste.
Logistics is the part of the supply chain process that: plans, implements, and controls the
efficient, effective flow and storage of goods, service and related information from the point
of origin to the point of consumption in order to meet customer’s requirements.
(transportation and inventory of products)
Materials management: all activities to move materials, components and information
efficiently to and within the production process and all activities to use the production
process efficiently. Physical distribution: refers to the movement of goods and information
outward from the end of the assembly line to the customer.
Objective: expression that maximises or minimises some aspect. (Maximal or minimal)
Constraints: restriction that limit the degree to which a manager can pursue an objective
(less than or more than)
, Performance of entire supply chain
- Quality of product
- Possibilities of responding to demand of customers
- Inventory levels
- Cycle time of supply chain
The supply chain is as strong as the weakest link -> Bottleneck
Efficiency: do the job right
- Minimal investment and costs
- Minimal utilization rates and throughput times
Effective: do the right job
- The right product
- At the right time
- To the right customers
- At the right quality
- At the right quantity
Deterministic: No random input. Everything is known in advance.
Stochastic: Under similar circumstances different things could happen.
Arrivals:
- Inter-arrival time: Time between two subsequent arrivals of products at their
entrance in the process.
- Arrival rate: Number of products that arrive per time unit.
Example: 3 arrivals in one hour -> Inter arrival time = 20 minutes.
-> Arrival rate = 3 products per hour
Throughput time: Time that passes between the moment at which the customer/product
enters the system and the moment at which the customer/products is ready.
Deterministic throughput times: Can be estimated by adding up the expected processing
times of the different processes. (No probability, use the average)
Multiply resulting deterministic throughput time with probability that the path will be
followed.
Design capacity: Theoretical maximum output of a system or process in a given period. (60/
time per customer)
Effective capacity: actual capacity that can be expected given the product mix methods of
scheduling, maintenance and standards of quality. (design capacity * effective performance)
Sufficiency: Is design capacity sufficient to handle the expected number of products that
arrive at the various processes? Compare the number of products which arrive at system
with the design capacity of this specific system.
- Calculate design capacity of each process
- Calculate the expected number of products arriving at that process
- Compare answers from step 1 and 2
