Download Supply Chain Management on Demand: Strategies and by Chae An, Hansjörg Fromm PDF

By Chae An, Hansjörg Fromm

Written through offer chain researchers, experts, and practitioners, this publication explains the newly rising thoughts and practices for hugely effective offer chain administration, made attainable through the speedy development in info and verbal exchange applied sciences.

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Additional info for Supply Chain Management on Demand: Strategies and Technologies, Applications

Example text

5 shows the simulated inventory levels at the Distribution Center for the AS-IS case. Fig. 6 shows the simulated inventory levels at the Distribution Center for the TOBE case. Note that both figures represent simulation outputs. In both figures, the ragged lines represent the actual inventory and the smooth lines represent the average inventory. 4. As you can see, the ASIS case (BTP) must keep more inventory on hand than the TO-BE case (CR) because the AS-IS case builds a week ahead of time while the TOBE case reviews the inventory levels each day.

Whenever a reorder point exceeds the on-hand inventory, a replenishment order is sent out to make up the difference. This manufacturing policy is commonly referred to as Continuous Replenishment (CR). The goal of both simulations was to service customer orders at or near 100%, based on the three day requirement. 5 shows the simulated inventory levels at the Distribution Center for the AS-IS case. Fig. 6 shows the simulated inventory levels at the Distribution Center for the TOBE case. Note that both figures represent simulation outputs.

24 2 Supply Chain Simulation Fig. 2. Overview of a Manufacturing function The main activities that take place inside a Manufacturing function are: − − − − − − Assembly Order queuing Production scheduling Product allocation Inventory replenishment Material handling The raw materials needed for an assembly operation are based on the Bill of Material (BOM) definition for the product being assembled. A BOM lists the components and the quantities needed to assemble a unit of product. The length of time that elapses during an assembly depends on a specified manufacturing delay parameter.

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