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Lecture Operations management (6th Edition): Chapter 4 - R. Dan Reid, Nada R. Sanders

In this chapter you should be able to: Explain the strategic importance of product and service design, describe what product and service design does, name the key questions of product and service design,. | Chapter 4 - Supply Chain Management Operations Management 6th Edition R. Dan Reid & Nada R. Sanders Copyright © 2016 John Wiley & Sons, Inc. Learning Objectives Describe basic supply chains and supply chain management. Explain issues affecting supply chain management. Explain the role of purchasing. Illustrate how sourcing decisions are made. Describe the role of warehousing. Describe how supply chain management is implemented. Basic Supply Chains A supply chain is the network of all the activities involved in delivering a finished product/service to the customer Sourcing of: raw materials, manufacturing & assembly, warehousing, order entry & tracking, distribution, delivery Supply Chain Management is the vital business function that coordinates and manages all the activities of the supply chain. Coordinates movement of goods through supply chain from suppliers to manufacturers to distributors Promotes information sharing along chain like forecasts, sales data, & . | Chapter 4 - Supply Chain Management Operations Management 6th Edition R. Dan Reid & Nada R. Sanders Copyright © 2016 John Wiley & Sons, Inc. Learning Objectives Describe basic supply chains and supply chain management. Explain issues affecting supply chain management. Explain the role of purchasing. Illustrate how sourcing decisions are made. Describe the role of warehousing. Describe how supply chain management is implemented. Basic Supply Chains A supply chain is the network of all the activities involved in delivering a finished product/service to the customer Sourcing of: raw materials, manufacturing & assembly, warehousing, order entry & tracking, distribution, delivery Supply Chain Management is the vital business function that coordinates and manages all the activities of the supply chain. Coordinates movement of goods through supply chain from suppliers to manufacturers to distributors Promotes information sharing along chain like forecasts, sales data, & promotions Basic Supply Chain Components of a Supply Chain for a Manufacturer External Suppliers – source of raw material Tier one supplier supplies directly to the processor Tier two supplier supplies directly to tier one Tier three supplier supplies directly to tier two Internal Functions Processing, purchasing, planning, quality, shipping Components of a Supply Chain External Distributors – transport finished products to appropriate locations Logistics managers are responsible for managing the movement of products between locations. Logistics includes: Traffic management – arranging the method of shipment for both incoming and outgoing products or material Distribution management – movement of material from manufacturer to the customer Example: Dairy Products Supply Chain Supply Chain for a Service Organization Services are similar (to manufacturers) Internal Operations Integration is key External Distributors Service provider maybe different, i.e., not a part of travel .