time based consolidation
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ships every week; no control over amount in truck
Long term
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long-term forecasting horizon - greater than 3 years
- used for strategic planning: production capacity, inventory levels &
product range
,___________________ and _______________ are interrelated
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production
warehouse
risk
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Perishability issues, fragile items. Easy to steal items and easy to sell after
stealing items.
estimated 30 billion dollars stolen
Pretransaction
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Written statement of policy
*Statement in hands of customers
*Organizational structure
*System flexibility
*Technical Services
quantity based consolidation
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determine quantity and whenever you reach it make the shipment
quota to ship; reduce cost
Innovative Product
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shorter life cycle
high margin
short lead time
more stockouts
flexibility
unpredictable demand
responsive supply chain
supply to order
Just in Time
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synchronize tock flows to meet demand just as it occurs
- minimize need for inventories
Increase ROLA by:
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Minimizing costs
minimizing logistic assets (truck freight cost, warehouse use)
Significance of Logistics
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1: Costs are high
2: Customers are more demanding
3: An integral part of company strategy
4: Logistical lines are lengthening
5: Logistics is key to trade and increased standard of living
6: Logistics adds value
80-20 rule (paretos rule)
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80% of sales will come from 20% of the inventory SKUs
separate trivial many from vital few
A items
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very few high impact items are included
require the most managerial attention and review
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ships every week; no control over amount in truck
Long term
Give this one a try later!
long-term forecasting horizon - greater than 3 years
- used for strategic planning: production capacity, inventory levels &
product range
,___________________ and _______________ are interrelated
Give this one a try later!
production
warehouse
risk
Give this one a try later!
Perishability issues, fragile items. Easy to steal items and easy to sell after
stealing items.
estimated 30 billion dollars stolen
Pretransaction
Give this one a try later!
Written statement of policy
*Statement in hands of customers
*Organizational structure
*System flexibility
*Technical Services
quantity based consolidation
,Give this one a try later!
determine quantity and whenever you reach it make the shipment
quota to ship; reduce cost
Innovative Product
Give this one a try later!
shorter life cycle
high margin
short lead time
more stockouts
flexibility
unpredictable demand
responsive supply chain
supply to order
Just in Time
Give this one a try later!
synchronize tock flows to meet demand just as it occurs
- minimize need for inventories
Increase ROLA by:
, Give this one a try later!
Minimizing costs
minimizing logistic assets (truck freight cost, warehouse use)
Significance of Logistics
Give this one a try later!
1: Costs are high
2: Customers are more demanding
3: An integral part of company strategy
4: Logistical lines are lengthening
5: Logistics is key to trade and increased standard of living
6: Logistics adds value
80-20 rule (paretos rule)
Give this one a try later!
80% of sales will come from 20% of the inventory SKUs
separate trivial many from vital few
A items
Give this one a try later!
very few high impact items are included
require the most managerial attention and review
