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Asignatura: Direccio Operacions, Profesor: ju ju, Carrera: Administració i Direcció d'Empreses, Universidad: UB
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ProgrammeProgrammeProgramme
Overview of Supply Chain
Council of Logistics Management
Overview of Supply Chain
Sources of
Supply
Plants/ operations
Customers
Physical Supply (materials management)
Physical Distribution
Ware-housing
Ware-housing
Four (4) KEY PLAYERS
Overview of Supply Chain
Suppliers
Manufactur
ers
Wholesalers/ Distribution
centers
Retailers
Customers
Overview of Supply Chain
Customer
2.Transportation^ 2.Transportation
(and transmittal)(and transmittal)
Overview of Supply Chain
Source: Ballou H. Ronald, Business Logistics/Supply Chain Management, 5
th^ Edition
Source: Ballou H. Ronald, Business Logistics/Supply Chain Management, 5
th^ Edition
Overview of Supply Chain
SuppliersIntermediate customersFinal customers
ProductPricePromotionPlace (distribution)
Maximization of the long-term profitabilityLowest total costs given anacceptable level ofcustomer service
Integrated Effort
Corporate Profit
Customer Satisfaction
Overview of Supply Chain
Ensure the operation isset up to run properly
Prepare the operationeffectively
Operation is doing “theright thing”
Operation is running“efficienlty”
Source: Rushton, A., Croucker P., Baker P.,The handbook of logistics & distribution management, 3
th^ Edition
Logistics Decision Making
Warehousing
How many?
Where to place?
Management?
Owned or rented?
Size? Storage – Material Handling
Raw materials policy?
Ready materials policy? Technology
Automation level? Transportation
Warehouse replenishment/transportation?
Distribution to clients?
Warehousing
Rent or buy?
Location?
Capacity?
Arrangement?
Equipment? Storage – Material Handling
Size of pallets? Transportation
Buy or rent vehicles?
Fleet, mix, size?
Delivery vehicles, size?
Warehousing
Personnel?
Working hours, shifts, overtime? Storage – Material Handling
Products for stock?
Desired amount of stock?
Order policy?
Which supplier?
Order picking & control? Transportation
What type of vehicles should beused?
Service region of each vehicle?
Routes of vehicles?
Maintenance of vehicles?
Logistics Decision Making
Source: Sifniotis, K., Logistics Management,
Θεωρία και Πράξη
,^ Εκδόσεις Παπαζήση
,
Within distribution components
, e.g. the decision to use random storage locations compared to fixed
storage locations in a depot. The first
better storage utilization, more difficult for picking; the second has
the opposite results
Between distribution components
: e.g. a company might increase the strength and thus the cost of
packaging but find greater savings through improvements in the warehousing and storage of the product
Between
company
functions
e.g.
a
trade-off
between
optimizing production run lengths
and the
associated warehousing costs of storing the finished product. Long production runs produce lower unitcosts (and thus more cost-effective production) but mean that more product must be stored for a longerperiod (which is less cost-effective for warehousing).
Between the company and external organizations
: e.g. a change from a manufacturer’s products being
delivered direct to a retailer’s stores to delivery via the retailer’s depot network might lead to mutualsavings for the two companies.
Logistics Decision Making
Longer productionruns
Lower production unitcosts
Lower production unitcosts
More inventory &storage required
Lower prices
Fewer depots
Reduced costs
No impact
Less complicatedlogistics structure
Service reduction due toincreased distance ofdepots from customers
Lower FG stocks
Reduced costs
Shorter production runso higher productionunit costs
No need to expandstorage facilities
Poorer productavailability forcustomers
Lower RM &component stocks
Reduced costs
Less efficientproduction schedulingdue to stockunavailability
Lower stock-holdingrequirements
No direct impact
Less protectivetransport packaging
Reduced costs
No impact
Reduced transportmodal choice
No impact
Reducedwarehousesupervision
Cost savings throughlower headcount
No impact
Reduced efficiency dueto less supervision
Lost sales due to lessaccurate order picking
Logistics Decision Making
Source
: Rushton, A., Croucker P., Baker P.,The handbook of logistics & distribution management, 3
th^ Edition
