Assets and Inventories Measures regarding the assets of a supply chain should not be neglected. Demand information has to be available at the same aggregation level. Although some cost components decreased e. The objective is to minimize the long-term costs for transportation, inventory, handling, and investments in assets e. Every day the planned truck loads have to be deployed to customer locations according to a cost-minimizing routing. A three stage distribution structure incorporates an additional layer e. Hence, considerable cost savings can be gained from optimizing the structure and the operations of complex supply networks li- ing plants, suppliers, distribution centres and customers.
Of course, there may exist other useful ways to hierarchically link the planning tasks and planning modules of a computer assembly supply chain. A schematic representation of didactic example of a single-period logistics system is given in Fig. What is new in this third edition, apart from the usual update of chapters? Structural attributes consider the supply chain as a whole comprising both manufacturers and retailers. The demand fulfillment process calculates the first promise date for customer orders and - thus - strongly influences the order lead-time and the on time delivery. Furthermore, there might be some targets which are not shared among partners.
The supply plan will also cover the required inventory, order, production time and minimum order quantity data. During this task, forecasts have to be coordinated and adjusted, e. Dreyer 2000 , Lambert and Pohlen 2001 and Bullinger 38 Christopher S¨ urie, Michael Wagner et al. Additional alternatives can be generated by intuition and managerial insight. Inventory age is a reliable indicator for high inventory levels, but has to be used with respect to the items considered. Planning the production system means organizing a single production plant, i. Measuring forecast accuracy is also worthwhile.
Master Production Scheduling, Capacity Planning and Mid-term Distribution Planning As opposite to the consumer goods type, less a capacity-constrained, but rather a material-constrained supply chain can be found. Example of indicators used by a balanced scorecard Kaplan and Norton, 1993, p. Supply chains are very complex. Things that looked completely impossible in my youth, like solving mixed integer problems are routine by now. In order to ease complexity, a given organization may concentrate only on a portion of the overall supply chain. Concepts of Advanced Planning Systems 5 Structure of Advanced Planning Systems.
Attributes with a similar focus will be grouped into a peculiar category to better reveal the structure of our typology see Tables 3. Process orientation thus often incorporates a redesign followed by a standardization of the new process. Calculate the necessary safety stock and compare it to the observed safety stock. In contrast with the 1993 result, in 1999 the practitioners ranked optimality of the solution as the most important characteristic of the software. There exist several excellent reference books focusing on inventory models, Silver et al. The fourth edition contains updated material, rewritten chapters and additional case studies.
In order to select one of them for the materials programme, one should consider price including possible quantity discounts , quality, and availability. In case the distribution network has one intermediate layer e. Increasing delivery performance may improve the competitive position of the supply chain and generate additional sales. Violations are liable for prosecution under the German Copyright Law. Herbert Meyr, Jens Rohde, Michael Wagner, Ulrich Wetterauer 18.
The audit trail also enables planners to undo changes when they realize a change made during simulation has not improved the plan. Building on these concepts key performance measures are presented in order to assess supply chain excellence Sect. Then, the production lot has to cover the demand in the current and the following week. But such far-reaching decisions typically have to be made based on data generated by very aggregate forecasts and economic trends. The higher the value of α the more risk averse the corporation is in its capital budgeting planning. Beyond simply providing demand estimation data, it allows organizations to act immediately on any pertinent information gathered from the data by altering delivery schedules, shifting stored inventory loads and adjusting revenue and expense projections. Michael Wagner, Herbert Meyr 20.
But system boards may also be bought from external suppliers. It also can diminish uncertainty e. Jens Rohde, Michael Wagner 8. The new planning horizon overlaps with the previous one, but reaches one period further until the end of January of the next year; see Fig. Selected 2 Supply Chain Analysis 47 Table 2. Consequently, the aggregate instructions of the mid-term planning level have to be disaggregated into more detailed instructions for the short-term level. This issue will be discussed together with limitations of solution methods in Sect.