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Supply Chain Management Overview

This document discusses Dell's supply chain and provides an overview of supply chain management. It describes how products today are realized through a network of suppliers, manufacturers, and distributors called the supply chain. The key drivers that impact supply chain performance are facilities, inventory, transportation, information, sourcing, and pricing. There is an overall tradeoff between responsiveness and efficiency in a supply chain. The number and location of facilities impacts costs, inventory levels, and transportation costs. Network design decisions include determining the facility role, location, capacity allocation, and market/supply allocation. These decisions are influenced by strategic, technological, economic, political, infrastructure, and competitive factors. Mathematical models are described for capacitated plant location and transportation problems.

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6 views25 pages

Supply Chain Management Overview

This document discusses Dell's supply chain and provides an overview of supply chain management. It describes how products today are realized through a network of suppliers, manufacturers, and distributors called the supply chain. The key drivers that impact supply chain performance are facilities, inventory, transportation, information, sourcing, and pricing. There is an overall tradeoff between responsiveness and efficiency in a supply chain. The number and location of facilities impacts costs, inventory levels, and transportation costs. Network design decisions include determining the facility role, location, capacity allocation, and market/supply allocation. These decisions are influenced by strategic, technological, economic, political, infrastructure, and competitive factors. Mathematical models are described for capacitated plant location and transportation problems.

Uploaded by

Mr. Jahir
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Supply Chain management

Dell’s Supply Chain


Global Supply Chain Perspective

Few products today are designed, manufactured and distributed in


a single facility that takes raw materials and converts them into
products for sale to customers

Products today are realized by a network of supplier,


manufacturers and distributors

This network is called the supply chain


1-4
Drivers of Supply Chain Performance

• Facilities
The physical locations in the supply chain network where product
is stored, assembled, or fabricated

• Inventory
All raw materials, work in process, and finished goods within a
supply chain

• Transportation
Moving inventory from point to point in the supply chain
Drivers of Supply Chain Performance

• Information
Data and analysis concerning facilities, inventory, transportation, costs,
prices, and customers throughout the supply chain

• Sourcing
Who will perform a particular supply chain activity

• Pricing
How much a firm will charge for the goods and services that it makes
available in the supply chain
A Framework for Structuring Drivers
Overall trade-off: Responsiveness versus efficiency
Inventory-What
Transportation-how
Facility-Where
Service and Number of Facilities
Response
Time

Number of Facilities
Costs and Number of Facilities
Inventory
Costs

Number of facilities
Costs and Number of Facilities
Transportation
Costs

Number of facilities
Facility Cost
• Cost related to the number and location of facilities in the network
cx
• Cost related to the operations of the facilities
fy
Network Design in the
Supply Chain
Network Design Decisions
• Facility role
• Facility location
• Capacity allocation
• Market and supply allocation
Factors Influencing Network Design Decisions
• Strategic
Lowest cost location for manufacturing that is very far from the serving
market for efficient Supply chain
Or
High cost location to locate facilities closer to the market for responsive
Supply chain
• Technological
Economies of scale
Lower fixed costs allow more facilities
Flexibility
Factors Influencing Network Design Decisions

• Macroeconomic
Tariffs and tax incentives
Exchange rate and demand risk
• Political
• Infrastructure
• Competitive
• Logistics and facility costs
The capacitated Plant Location model

• yi = 1 if plant is located at
n n m
site i, 0 otherwise Min f y   c x
i i ij ij
• xij = Quantity shipped i 1 i 1 j 1

from plant site i to s.t.


customer j n

• Cij = Cost of producing  x  D , j  1,..., m


i 1
ij j

and shipping one unit n

from factory I to market j  x  K y , i  1,..., n


j 1
ij i i
Plant Location with Single Sourcing
• yi = 1 if plant is located at n n m
Min  f y   D j c x
site i, 0 otherwise i 1
i i
i 1 j 1
ij ij

• xij = 1 if market j is s.t.


supplied by factory i, 0 n

otherwise x
i 1
ij
 1, j  1,..., m
n

 D j x  K y , i  1,..., n
j 1
ij i i

xij , y {0,1}
i
Transportation model
1. Northwest-corner method
2. Least-cost method

  1 2 3 4 Supply

1 10 2 20 11 15

2 12 7 9 20 25

3 4 14 16 18 10

Demand 5 15 15 15  
Capacitated plant location model
  Demand Region        

Supply Region [Link] [Link] Europe Asia Africa Fixed cost Low Capacity Fixed cost High Capacity

[Link] 81 92 101 130 115 6000 10 9000 20

[Link] 117 77 108 98 100 4500 10 6750 20

Europe 102 105 95 119 111 6500 10 9750 20

Asia 115 425 90 59 74 4100 10 6150 20

Africa 142 100 103 105 71 4000 10 6000 20

Demand 12 8 14 16 7       
Term Paper
• A case of Supply Chain Management by analyzing industry
data

Presentation
• Based on the studied case
Thank You

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