Decision making and application

Syllabus
Decision making and
application




 Decision making in SC
 Applications of SCM
 Warehouse management system
 Product data management
 E –Commerce
 Reverse logistics
Cases in Paper industry – Furniture industry.

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, Decision making and application
Decision-Making Framework:




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, Decision making and application
Logistical drivers:
1. Facilities:
• Firms can increase responsiveness by increasing the number of facilities,
making them more
• flexible, or increasing capacity. Each of these actions, however, comes at a
cost. Increasing the
• number of facilities increases facility and inventory costs but decreases
transportation costs and
• reduces response time. Increasing the flexibility or capacity of a
facility increases facility costs
• but decreases inventory costs and response time. Thus, each supply chain
must find the appropriate tradeoff when designing its facilities network.
Example: IKEA, SEVEN-ELEVEN, JAPAN.


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, Decision making and application
Components of Facilities Decisions:
1. Role:
• Firms must decide whether production facilities will be flexible, dedicated,
or a combination of the two.
• Flexible capacity can be used for many types of products but is often less
efficient, whereas dedicated capacity can be used for only a limited
number of products but is more efficient.
• Firms must also decide whether to design a facility with a product
focus(fabrication and assembly) or a functional focus(fabrication or
assembly)




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