Supply Chain planning & control, Supply chain management, Procurement, Supplier management, Bullwhip effect, Logistics, Creating an effective supply chain

Supply Chain

The sequence of organizations (facilities, functions, & activities) that are involved in producing & delivering a product or service.

• Begins with basic suppliers of raw materials & extends to the final customer

Inventory planning & control, Types of inventory, Objectives of Inventory Control, Requirements for effective inventory management, Counting Systems,Inventory Costs, Economic order quantity (EOQ)

Inventory planning & control

A stock or store of goods

- The stored accumulation of material resources in a transformation system

• Allow the flexibility

• Exceptional quality

• Give a level of dependability

• Better return on investment  (ROI)

Functions of Inventory

• To meet anticipated customer demand
• To smooth production requirements
• To protect against stock outs & take advantage of order cycles
• To hedge against price increases
• To permit operations
• To take advantage of quantity discounts

Enterprise resource planning (ERP), Implementation of ERP, Major Challenges to ERP Implementation

Enterprise resource planning (ERP)

Integration of financial, manufacturing & human resource on a single computer system

• ERP software provides a system to capture & make data available in real time to decision makers & other users throughout an organization
• Provides a set of tools for planning & monitoring various business processes

Material requirements planning (MRP), Requirements of MRP, MRP input, MRP processing, MRP outputs, MRP II (Manufacturing Resources Planning)

Material requirements planning (MRP)

A computer-based information system that translate requirements of MPS for end items into time-phased requirements for subassemblies, components, & raw materials

• Working backward from the due date using lead times & other information to determine when & how much to order

Master production schedule (MPS), Master scheduling process,

Master production schedule (MPS)

This schedule indicates the quantity & timing of planned completed production

• Breaking down the aggregate plan into specific product requirements
• The heart of production planning & control

Aggregate planning, Purposes of aggregate planning, Inputs & Outputs of Aggregate Planning, Techniques for Aggregate Planning

Aggregate planning

Intermediate-range capacity planning, usually covering 2 to 12 months

• A ‘big-picture’ approach to planning, focus on a group of similar products or services, or sometimes an entire product or service line

Capacity planning & control, Steps in Capacity Planning, Measuring demand & capacity, Yield management

Capacity management

Capacity: The upper limit or ceiling on the load that an operating unit can handle.

-The maximum level of value-added activity over a period of time that the process can achieve under normal operating conditions

• Capacity decisions have a real impact on the ability of the organization to meet future demands for products & services
• Capacity decisions affect operating costs
• Capacity is usually a major determinant of initial cost
• Capacity decisions often involve long-term commitment of resources
• Capacity decisions can affect competitiveness
• Capacity affects the ease of management

Planning & controlling capacity