DECISION PHASIS IN SUPPLY

CHAIN
1. Supply chain strategy or design:
long term decisions of next several years
such as resources allocation, location,
capacities, production, warehousing
facilities & transportation facilities.
2. Supply chain planning: Decisions
related to quarter to a year, forecast,
demand, which market, which locations,
inventory policies, subcontracting, size of
promoting, uncertainty in demand,
exchange rate
a

3.Supply chain operations: The time

horizon here is weekly or daily, makes
decisions regarding individual customer
orders, allocate inventory or production to
individual orders, set a date that an order
is to be filled, shipping mode & shipment,
delivery schedule of trucks & place
replenishment orders.
PROCESS VIEW OF SUPPLY CHAIN

• Cycle View
– Customer order cycle
– Replenishment cycle
– Manufacturing cycle
– Procurement cycle
• Push/Pull view
– Push: processes are initiated & performed in
anticipation of customer order
– Pull: processes are initiated by customer order.
Customer Order Cycle
1. Customer arrival
– Customer walks into the mall
– Customer calls a mail order telemarketing center
– Web page, electronic link
2. Customer order entry (it should be quick &
accurate)
– Information
– list of products
– quantities
Customer Order Cycle Contin…
3. Customer order fulfillment
– Customer order is filled and sent to the
customer
– packaging & shipping
4. Customer order receiving
– The customer receive the order and takes
the ownership.
– Records of the receipt updated and payment
completed.
Replenishment Cycle
It occurs at the retailer and distributors
interface, in order to meet the future
demand.
1. Retail order trigger
• Ordering policy
• Economies of scale
• Balancing product availability
• The cost of holding inventory
Replenishment Cycle Contin….
1. Retail order entry:
• Is similar to customer order entry, the diff is that
the retailer is placing the order to distributor
2. Retail order fulfillment
• Is similar to customer order fulfillment except that it
takes place at the distributors end.
3. Retail order receiving.
• Physically receiving the stock and updating it.
Manufacturing Cycle
It occurs at the retailer/manufacturer or
distributor/ manufacturer interface.
It also depends upon the pull (Customer order )
and push processes (anticipating customer
demand).
It includes following steps
1. Order arrival:
• In the step distributors sets order based on
forecasting, product availability pull/push process.
• The order is conveyed to manufacturer.
Manufacturing Cycle Contin….
2. Production scheduling
• Orders are allocated to production plan
• On time production keeping cost down
3. Manufacturing and shipping
• Manufacturer produces to the production schedule.
• Product is shipped to the customer, retailer,
distributor or finished-product warehouse.
4. Receiving at the distributors, retailers or
customer end.
• Physically checking and receiving, storage & fund
transfer out.
Procurement Cycle

It take place at manufacture/supplier

interface
• Top quality material
• Lowest available price
• Timely delivery
• Minimum lead time
Push/Pull View of Supply chain
process
All processes in supply chain fall into two
categories depending on the timing of
their execution relative to end customer
demand.
Pull: execution initiated in response to a
customer order. E.g Durring assembly
Push: execution initiated in anticipation of
customer order. Before PC assembly