Supply Chain Management HeYi5100309186 CASE:Jam Electronics 贺艺Class F10030175100309186 Question1:How can the firm cope with huge variability in customer demands? Customer demands has always been hard to predict,and the uncertainty in customer demand has increased in the last few years due to the short life cycle of an increasing number of products and the presence of many competing products in the marketplace.In this case,variability in customer demand was very high and it changed almost from month to month. Companies can cope with such variability in customer demands by building good inventory management: 1.Using risk polling strategies; 2.Using centralized systems in the US to improve safety stock as well as service level,lower the overhead costs and shortening customer lead time; 3.Made the number of SKUs handled by JAM USA smaller; 4.Give the U.S.subsidiary the higher priority,for it takes more time for the transport from Seoul to America than Japan and Korea; 5.Install systems that can help JAM Electronics and the buyers to share the information with each other for better demand forecasting. Question2:What is the relationship between service and inventory level? There is a positive relationship between inventory level and service level.If the inventory is higher,it can bring a shorter lead time in the supply chain,so that the service level could be higher. Besides,people nowadays can use better inventory management techniques to increase service levels without increasing inventory levels as much as in the past, which can lower the overhead cost of the inventory. Question3:What is the impact of lead time and lead time variability on inventory level? Suppose the service level is fixed,when the lead time becomes longer and the lead time variability becomes higher,the inventory levels would become higher.This is because longer lead time and higher lead time variability will increase the demand variability,which lead to higher inventory levels. Question4:What an effective inventory management policy can you give to the firm?
Supply Chain Management He Yi 5100309186 CASE： Jam Electronics 贺 艺 Class F1003017 5100309186 Question1: How can the firm cope with huge variability in customer demands? Customer demands has always been hard to predict, and the uncertainty in customer demand has increased in the last few years due to the short life cycle of an increasing number of products and the presence of many competing products in the marketplace. In this case, variability in customer demand was very high and it changed almost from month to month. Companies can cope with such variability in customer demands by building good inventory management: 1. Using risk polling strategies; 2. Using centralized systems in the US to improve safety stock as well as service level, lower the overhead costs and shortening customer lead time; 3. Made the number of SKUs handled by JAM USA smaller; 4. Give the U.S. subsidiary the higher priority, for it takes more time for the transport from Seoul to America than Japan and Korea; 5. Install systems that can help JAM Electronics and the buyers to share the information with each other for better demand forecasting. Question2: What is the relationship between service and inventory level? There is a positive relationship between inventory level and service level. If the inventory is higher, it can bring a shorter lead time in the supply chain, so that the service level could be higher. Besides, people nowadays can use better inventory management techniques to increase service levels without increasing inventory levels as much as in the past, which can lower the overhead cost of the inventory. Question3: What is the impact of lead time and lead time variability on inventory level? Suppose the service level is fixed, when the lead time becomes longer and the lead time variability becomes higher, the inventory levels would become higher. This is because longer lead time and higher lead time variability will increase the demand variability, which lead to higher inventory levels. Question4: What an effective inventory management policy can you give to the firm?
Supply Chain Management HeYi5100309186 1.Using centralized distribution systems in the USA;; 2.Perform periodic inventory review to make sure the number of the goods is appropriate; 3.Provide tight management of usage rates,lead times,and safety stock; 4.Introduce or enhance cycle counting practice; 5.Follow ABC approach; 6.Shift more inventory or inventory ownership to suppliers; 7.Follow quantitative approaches; 8.Using better forecasting tools and methods
Supply Chain Management He Yi 5100309186 1. Using centralized distribution systems in the USA;; 2. Perform periodic inventory review to make sure the number of the goods is appropriate; 3. Provide tight management of usage rates, lead times, and safety stock; 4. Introduce or enhance cycle counting practice; 5. Follow ABC approach; 6. Shift more inventory or inventory ownership to suppliers; 7. Follow quantitative approaches; 8. Using better forecasting tools and methods