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1、CHAPTER 13 SUPPLY CHAIN MANAGEMENTChapter OverviewSupply chain management is becoming a vital part of an organizations strategic plan. Many factors are responsible for supply chain management9s increased importance. These include the desire to quickly adapt to changes in customers9 demands, globaliz
2、ation of the market place creating longer supply chains, shorter product life cycles, and new technologies. Additionally, organizations are looking to create long-term partnerships with fewer suppliers to improve supply chain performance.Major Points of Chapter1 Supply chain management is a relative
3、ly new concept in business. The evolution from materials management or purchasing reflects its new strategic role.2. Companies have changed from isolating their technical core with raw materials and finished goods inventory to working more closely with suppliers and customers. This has allowed organ
4、izations to react more quickly to changing customers5 demands.3. Several factors have impacted the supply chain including reduced number of suppliers, increased competition, shorter product life cycles, technology, quick response programs, and shared or reduced risk.4. A successful supply chain requ
5、ires trust, long-term relationships, information sharing, and individual strengths of organizations.5. Supplier managed inventories, and consignment inventories are becoming more common.Review and Discussion QuestionsWhat are the advantages and disadvantages to a firm having a small number of suppli
6、ers?The advantage of a smaller number of suppliers is that a closer relationship can be built with your suppliers. This can lead to long-term relationships, trust, information sharing, and exploiting the individual strengths of the organizations. However, by having fewer suppliers, the risk of somet
7、hing occurring to your source of an item is increased because of a lack of redundancy.1. Supply chain management as presented in this chapter pertains primarily to goods. What would be the different steps or elements in a supply chain for a service? Give an example.Generally, the supply chain is sho
8、rter since there is very little, if any, raw material or component parts.2. How has technology accelerated the trend toward disintermediation?Better communications allows the gap to close between suppliers and customers regardless of their location in the world.1723. What are the main differences be
9、tween having a vendors employees working in your manufacturing operation and you haring your own employees to do the same work?The vendors employees have direct access to the vendors database and can provide the needed information in a shorter period of time.4. Identify all of the steps in the suppl
10、y chain for a hamburger that you buy at McDonalds. How might this supply chain differ for a McDonalds located in a developing country?The steps would be growing of the food and manufacture of paper product (wrappers, etc.) to processing of the food, to distribution to the stores, to the customer. Th
11、e availability of certain foods in developing countries could alter this system.ProblemsProblemType of ProblemDifficultyCheck Figure in Appendix DIn-transit inventory1YesModerateYes2YesEasy3YesModerate1. TC = DM + (X/365)iDCCurrent supplier:TCi = 100,000(0) + (1/365)(.20)(100,000)40 二 $2,192Asian su
12、pplier:TC2= 100,000(4.50) + (42/365)(.20)(100,000)35 = $530,548 minus $500,000 purchasing cost savings = $30,548The best option is to continue to use current supplier.2. TC = DM + (X/365)iDCTrailer truck:TCi = 25,000(2.50) + (14/365)(.18)(25,000)26 = $66,988Air freight:TC2= 25,000(3.00) + (2/365)(.1
13、8)(25,000)26 二 $75,641The best option is to use the trailer truck.Chapter 133. a. TC = DM + (X/365)iDCAsian suppler:TCi = 25,000(4) + (50/365)(.25)(25,000)45 = 138,528 FFMexican supplier:TC2= 25,000(6.5) + (10/365)(.25)(25,000)43 = 169,863 FF minus a 2(25,000) FF cost savings =119,863 FFThe best opt
14、ion is to use the Mexican suppler.b. In addition to cost, other factors should be considered such as the quality, consistency of delivery, sharing of information, political stability of suppliers country, and willingness to develop long-term relationship.Case: How A Quality Initiative Changed Whirlp
15、ools Supply ChainThe relationship between SEC and Whirlpool went from SEC being a low cost supplier of custom designed stamped metal assemblies to SEC being a business partner that supplied extra value added services to Whirlpool.1. Whirlpool imposed a quality initiative, based on TQM principles, on
16、 their suppliers (including SEC). Little explanation and guidance was offered. Another of Whirlpoors goals was to reduce the supplier base. WhirlpooVs plan was to have suppliers prove their worthiness of WhirlpooPs business by proving their competence with incorporating and improving on Whirlpoors q
17、uality initiatives. The answer to “Should Whirlpool have helped more?” is debatable. SEC could have used more guidance in the beginning but it is SEC that knows their products and processes better than anyone else. SEC is best suited to determine the changes necessary to meet and exceed WhirlpooPs q
18、uality initiatives.2. SEC has made Whirlpoofs products better by initiating cost savings and quality improvement programs that extended beyond SECs own products.3. The advantages of introducing new initiatives (such as TQM) into a firms supply chain can include competitive advantages based on quality, flexibility, service, and price. These advantages can lead to increased sales and profits. Disadvantages can include the unavoidable risk of failure, sunk cost expenses, employee turnover if unable to make TQM philosophy change, and increased value added service expectations.174