| an attempt to respond to predicted demand within the constraints set by product, process and location decisions…
Management’s main concern is managing the capacity of the factory in response to the complex demand pattern. Delays resulting from insufficient capacity undermine LT’s promised lead times and ultimately force LT to turn away orders. In particular, if an order’s lead time exceeds the quoted lead time, then the revenue for that order decreases linearly, from $1000 for the quoted lead time (24 hours) to $0 for the maximum lead time (72 hours).…
* Reduce your lead time by hiring more employees or by producing half of the product and then just finish it when the customer place the order…
In the San Diego distribution center (DC) information flow example, dealers not being notified automatically of order status would be classified as which of the following information flow dimensions:…
In this case study, the problem to be solved can be stated as developing an aggregate plan for the following year with the given forecasts and plant capacities. In addition, qualitative and quantitative consequences of tools used for dealing with demand fluctuations should also be considered. The…
activities required to get the finished product to the customer, including warehousing, order fulfillment, etc.…
What is the current demand forecasting method? Who uses the demand forecast? What are the consequences, if any, if the forecast are inaccurate?…
Chapters 1/2: Introduction and Perspective ................................................................. 3 Chapter 3: Product Development Decisions................................................................. 7 Chapter 4: Procurement Decisions ............................................................................... 9 Chapter 5: Manufacturing Decisions........................................................................... 17 Chapter 6: Distribution Decisions ............................................................................... 25 Chapter 7: Transportation Decisions .......................................................................... 29 Chapter 8: Service Decisions ...................................................................................... 37 Chapter 9: Generate Demand Decisions..................................................................... 38 Chapter 10: Forecasting Decisions............................................................................. 44 Chapter 11: Information Technology Decisions ......................................................... 48 Chapter 12: Other Decisions ....................................................................................... 53 Chapter 13: Financial and Operating Reports............................................................. 55 Chapter 14: Research Studies..................................................................................... 73 Chapter 15: Performance Evaluation .......................................................................... 83 Chapter 16: Firm Management and Advice................................................................. 85 Appendix: Web-Based LINKS Access......................................................................... 87 Index…
There are transportation lead times in shipping the material from one location to another, and there is a production lead time at the factory. While material flows from upstream to downstream, information flows in the opposite direction through order placements. There is an order processing delay, or information lead time, between when an order is placed and when the order is received by the supplier. The players share a common objective to optimize the system-wide…
The objective of location decisions is to maximize the benefit of the location to the firm.…
The long cycle time is creating a bottleneck in getting the products to the customer on time. Additionally, the process is a made-to-order system, as opposed to made-to-stock, so the product is not created until the order is received. The variance in the way the company receives the orders is also creating problems,…
3. How do the features of the supply chain explain the company’s remarkably short lead times (relative to U.S. apparel supply chains)? Examine the features of the supply chain and identify why the company is able to respond so effectively.…
* Customer: The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled…
After an intense review of all critical data and information as pertains to the corporation, it is my determination that the most crucial problem facing Moore was in the area of demand planning and its effect on customer retention, satisfaction and attraction. In June of 2000, Moore initiated a performance management system called the "the perfect order." This system recognizes orders that were completed on time, had all items in stock, and were damage free, shipped from the closest DC and arrived to the customer on time and without damage. The overall percentage of perfect orders was 68% at the start of 2001 while the goal for the program was an accuracy rate of 90%. According to Autore "the biggest opportunity (here) is with implementing proactive demand planning to make sure that the right product is available at the right location, at the right time" (6). It is stated that 84% of…
* While selecting the orders, there should be a proper coordination between Marketing and operations. If operation is estimating on the quote and the delivery date then Marketing should not over-write it without consulting operations. The people in operations can also be aware of the market conditions and the corporate goals. This can make less difference in the quote.…