By Colin Scott
This advisor brings provide chain concept to lifestyles. Written for individuals with a company curiosity in offer chain administration, the e-book covers the main subject matters in 11 chapters, together with plan, resource, make, carry and go back in addition to approach, humans, finance, customer support and outsourcing. every one bankruptcy begins with a quick precis and studying goals that consultant the reader during the textual content. The e-book is written in a transparent and straightforward method, that includes numerous figures, tables and urged extra readings. The chapters finish with real-life case reports for top perform.
During their paintings, the authors have met pros worldwide who're enthusiastic about their enterprise achievements. via together with their brilliant examples, the advisor brings concept to existence permitting readers to appreciate the suggestions and concepts provided within the consultant.
Colin Scott, Henriette Lundgren and Paul Thompson are specialists in offer chain administration and feature labored with practitioners in companies around the globe.
"This consultant is a very priceless reminder of what strong perform is and the way it's going to be utilized inside offer chain administration. The booklet is proper for college kids of provide chain administration practitioners alike.
This e-book deals a useful advisor to realizing the categorical dynamics of your provide chain and the basics underpinning it. It offers the framework for offering a offer chain approach established upon known top practice."
Martin McCourt, CEO, Dyson Limited
Read or Download Guide to Supply Chain Management PDF
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Sample text
The supplier lead-time is known and constant. There are no stock outs permitted – since demand and lead-time are known stock outs can be avoided. The cost structure is fixed – order costs are the same regardless of lot size, holding cost is a linear function based on average inventory and unit purchase cost is constant (no discounts based on bulk purchase). There is sufficient space, capacity and capital to procure the desired quantity. 28 2 Guide to Plan in Supply Chain Management Total cost Cost Inventory carrying costs Lowest total cost Ordering costs Optimum order quantity Size of order Fig.
3). From the average cycle stock holding quantity, we can derive the average cycle stock investment taking into consideration the product price of one unit of stock. Let’s assume that one TV costs €5,000. Then the average cycle stock investment would equal average stockholding multiplied by the cost of one TV, thus: 200 Â €5;000 ¼ €1;000;000: Demand Q = 400 Q/2 = 200 Time Fig. 1 Inventory and Supply Chains 13 One million Euros of average capital investment might be quite a stretch for a small electronics retailer.
15 Continuous review – fixed order quantity Maximum stock level Review point Review point Review point Review point Safety stock Time Fig. 16 Periodic review – fixed order cycle In business, most slow moving “C items” from the 80/20-rule segmentation will be reviewed periodically. As a result, stock levels will be higher, but the order frequency will be lower. “A items”, on the other hand, will be reviewed continuously as they are more important for the business and might move quicker. 5 The Economic Order Quantity (EOQ) As an inventory manager you also have to ask yourself: How much should I order at a time?