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What is a Supply Chain? What are the problems involved in Supply Chain Management? What are the levels of planning in Supply Chain Management?
Upstream
Suppliers
Preassembly
Manfr Plants
Warehouses
Customers
Example: Dell
Customer Website Assembly Plants Warehouses Dells suppliers and their suppliers Dell builds-to-order Dell does not have retailers, wholesalers
Example: Toyota
Produces nearly 900,000 vehicles annually Over 35 manufacturing plants in 25 countries outside of Japan For plants in the U.S., supply parts are shipped across the Pacific, and transported on rail Deliveries are scheduled to the minute to keep inventories low (Just-in-time) Complicated network with uncertainties
ISyE 3103 Supply Chain Modeling: Logistics
Decision Levels
Strategic:
Long term, permanence of many years
Tactical
Intermediate time range, usually three months to a year
Operational
Short range, week or less
ISyE 3103 Supply Chain Modeling: Logistics
Location
Strategic: No. of plants and locations Tactical: Assigning inventory positions
Warehouse
Strategic: Layout, site selection Operational: Order picking
ISyE 3103 Supply Chain Modeling: Logistics
Manufacturing Cost