Introduction to Supply Chain Management Xiaohong Pang Automation Department Shanghai Jiaotong University
Introduction to Supply Chain Management Xiaohong Pang Automation Department Shanghai Jiaotong University
Lecture Outline What is Supply Chain Management? Global Optimization Managing Uncertainty ■Vhy SCM?
Lecture Outline What is Supply Chain Management? Global Optimization Managing Uncertainty Why SCM?
Customers, Demand centers Sources: Regional warehouses: Sinks Stocking What Is A Supply Chain? points ports Supply Inventory warehousing costs Production/ purchase Transportation Transportation costs costs Inventory costs warehousing costs
What Is A Supply Chain? Supply Sources: plants vendors ports Regional warehouses: Stocking points Field warehouses: Stocking points Customers, Demand centers Sinks Production/ purchase costs Inventory & warehousing costs Transportation costs Inventory & warehousing costs Transportation costs
What Is A Supply Chain? The system of suppliers,manufacturers, transportation,distributors,and vendors that exists to transform raw materials to final products and supply those products to customers. That portion of the supply chain which comes after the manufacturing process is sometimes known as the distribution network
What Is A Supply Chain? The system of suppliers, manufacturers, transportation, distributors, and vendors that exists to transform raw materials to final products and supply those products to customers. That portion of the supply chain which comes after the manufacturing process is sometimes known as the distribution network
Customers, Sources: Regional warehouses: Demand centers Sinks plants Stocking points vendors Field warehouses: ports Stocking points Supply Inventory warehousing costs Production/ purchase Transportation Transportation costs costs Inventory costs warehousing costs
Supply Sources: plants vendors ports Regional warehouses: Stocking points Field warehouses: Stocking points Customers, Demand centers Sinks Production/ purchase costs Inventory & warehousing costs Transportation costs Inventory & warehousing costs Transportation costs
What Is SCM? Supply Chain Management is a set of approaches utilized to efficiently integrate suppliers,manufacturers,warehouses and stores,so that merchandise is produced and distributed: In the right quantities To the right locations At the right time In order to Minimize total system cost Satisfy customer service requirements
What Is SCM? Supply Chain Management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that merchandise is produced and distributed: In the right quantities To the right locations At the right time In order to Minimize total system cost Satisfy customer service requirements
Notice Who is involved? Every facility is involved. What level of activities are involved? Strategic,tactical,operational levels .Strategic:partner selection,warehouse location .Tactical:transportation modes selection .Operational:vehicle routing ■What is the goal? Efficiency across the entire system
Notice Who is involved? What level of activities are involved? What is the goal? Every facility is involved. Efficiency across the entire system. Strategic, tactical, operational levels •Strategic: partner selection, warehouse location •Tactical: transportation modes selection •Operational: vehicle routing
Important Issues What is the goal of SCM Minimize total system cost Satisfy customer service requirements What is SCM concerned about Supply chain management is concerned with the efficient integration of suppliers,factories, warehouses and stores
Important Issues What is the goal of SCM Minimize total system cost Satisfy customer service requirements What is SCM concerned about Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores
Supply Chain Integration What is meant by integration? Different facilities work together Cooperative demand forecasting and distribution In order to gain global optimization
Supply Chain Integration What is meant by integration? Different facilities work together Cooperative demand forecasting and distribution In order to gain global optimization
Supply Chain Integration Why Difficult? Different facilities have different conflicting objectives -Suppliers vs manufacturers Low inventory vs transportation costs The supply chain is a dynamic system Customer demand,supplier capabilities change over time Supply chain relationships vary over time
Supply Chain Integration Why Difficult? Different facilities have different conflicting objectives Suppliers vs manufacturers Low inventory vs transportation costs The supply chain is a dynamic system Customer demand, supplier capabilities change over time Supply chain relationships vary over time