SAP Excellence Series Editors: Professor Dr. Dr. h.c. mult. Peter Mertens Universität Erlangen-Nürnberg Dr. Peter Zencke SAP AG‚ Walldorf Gerhard F. Knolmayer‚ Peter Mertens Alexander Zeier and Jörg Thomas Dickersbach Supply Chain Management Based on SAP Systems Architecture and Planning Processes With 77 Figures and 11 Tables 123 Prof. Dr. Gerhard F. Knolmayer University of Bern Institute of Information Systems Engehaldenstrasse 8 CH-3012 Bern Switzerland Dr. Alexander Zeier Deputy
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A – Supply Chain Strategy The supply chain strategy chosen for the power tool company is a long term partnering relationship with few suppliers. The long term vision of the company is to make quality products and constantly stay ahead of the competition with innovation. The best way to accomplish this strategic long term goal is to partner with key suppliers that operate using a strategy of long term thinking based on trust and transparency. Ray Kroc was one of the pioneers on forming partnerships
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In order for Peter to achieve his objectives for purchasing and inventory management we must closely study the issues of inventory level review‚ holding costs and safety stock. Holding cost is money spent to keep and maintain a stock of goods in storage. It is largely recognised that a healthy holding stock figure is between 25% and 33.33% of material costs. Peter has holding costs of 21% which is just touching on a fifth of Danker’s materials cost. Now we could take this to mean that Peter therefore
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(FBE) Supply Chain Management Application & Strategy CASE 1 : Supply chain challenges at Leapfrog SCML 460: Supply Chain Management Application & Strategy Context: Introduction ………………………………………………. page 3 Questions ………………………………………………. page 3 Conclusion ………………………………………………. page 5 References ……………………………………………… page 6 Introduction: Our case study is about "Supply Chain Challenges at LEAPFROG". The term supply chain conjures
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(bulk). Work In Process – Brewed coffee in coffee pot and frozen baked products in the refrigerator. Finished Goods – Fresh processed coffee under customer specification. Baked Goods (Muffins‚ Brownies‚ etc.) Maintenance‚ Repair and Operating Supplies – Coffee machine spare parts for use in the scheduled maintenance. Coffee Cups and Lids. b. Coffee Beans – Dependent demand. Milk (Bulk) – Dependent demand. Brewed Coffee in Coffee Pot – Independent demand. (if the order is just black coffee)
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Question #2-Define the supply chains for the following products from the first source of raw materials to the first customer. A) Big Mac‚ B) Gasoline‚ C) Automobile repair‚ D) A Text book. Supply chain‚ its management‚ performance measures and improvement approaches. As an extension of the systems point of view‚ the system dynamics inherent in the supply chain are illustrated and the coordination in the supply chain is emphasized. Five areas where measurement of supply chain performance should be
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BSc Logistics and Supply Chain Management SCHOOL OF BUSINESS BSC LOGISTICS AND SUPPLY CHAIN MANAGEMENT Programme Overview The BSc Logistics and Supply Chain Management programme offered by the School of Business at SIM University (UniSIM) aims to develop human capital and talent to meet the needs of the industry. This is the first undergraduate programme dedicated to the study of logistics and supply chain management to be offered by a Singapore university. Partnering with the Singapore
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Supply Chain Management Chapter 15 Pricing and Revenue Management in the Supply Chain Lecturer: Wilmer Jorge © 2007 Pearson Education 15-1 Outline The Role of Revenue Management in the Supply Chain Revenue Management for Multiple Customer Segments Revenue Management for Perishable Assets Revenue Management for Seasonable Demand Revenue Management for Bulk and Spot Customers Using Revenue Management in Practice Summary of Learning Objectives © 2007 Pearson Education 15-2 The Role
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NEWSVENDOR MODEL Too Much/Too Little Problem Maximize Expected Profit STEP 1: overage/underage costs Co = overage cost per unit Co = Variable Cost – Salvage value Cu = underage cost per unit Cu = Price – Cost (+ Future Cost) STEP 2: Find Critical Ratio F(Q*) = Probability demand < Q. Cu /Cu+ C0 = critical ratio/srvc level STEP 3: Calculate z from table. φ(Ζ) = Critical ratio STEP 4: Calculate Q* = optimal order quantity Ζ= from above (table) μ = mean σ = standard
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product shortage may result if actual demand exceeds the forecast demand. 2. Lead times serve to magnify the increase in variability due to demand forecasting. Therefore‚ lead time reduction can significantly reduce the bullwhip effect throughout a supply chain. Lead times typically include two components: order lead times‚ information lead times. Order lead times can be reduced through the use of cross-docking‚ but information lead time can be reduced through the use of electronic data interchange
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