Assignment 2: Supply Chain Design And Implementation

Assignment 2 Supply Chain Design And Implementation

Assignment 2: Supply Chain Design and Implementation This assignment will help you develop an understanding about the life cycle of supply chains including the models that are aligned with it and the cost it bears. In addition, you will develop an awareness of the elements of the supply chain that should be monitored to ensure the desired results are being obtained. Scenario: You have been asked to be a guest speaker in a high school business class. Your task is to explain the basic concepts of supply chain management to a group of students. The students will take a quiz on supply chain management based on the information in your presentation.

Instructions: Develop a creative, engaging, educational handout that students can use to prepare for the quiz. Your handout should accomplish the following tasks. Diagram and explain the life cycle of a supply chain. Explain, and provide examples of, the models organizations use to manage forecasting, planning, and inventory. Examine, and provide examples of, the costs absorbed by organizations with respect to inventory and logistics.

Describe how organizations use various parameters to monitor supply chain performance and provide examples. Your handout should be written in a clear, concise, and organized manner, as well as demonstrate ethical scholarship in accurate representation and attribution of sources (i.e., APA); and display accurate spelling, grammar, and punctuation. Write a 1–2-page handout in Word format along with a separate title page and reference page. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.doc.

By Wednesday, July 8, 2015 , deliver your assignment to the M4: Assignment 2 Dropbox . Grading Criteria: Assignment Components Proficient Max Points Diagram and explain the life cycle of a supply chain. Diagram and explanation are accurate, logical, and reflect in-depth comprehension of the supply chain life cycle. 20 Explain, and provide examples of, the models organizations use to manage forecasting, planning, and inventory. Examples provided correctly reference models used to manage forecasting, planning, and inventory. Explanation reflects a clear and accurate understanding of concepts related to supply chain management models. 24 Discuss, and provide examples of, the costs absorbed by organizations with respect to inventory and logistics. Costs related to inventory and logistics are accurately identified and thoroughly discussed in terms of their impact on the organization. 20 Describe how organizations use various parameters to monitor supply chain performance and provide examples. Description is accurate and detailed and reflects in-depth knowledge of parameters used to monitor supply chain performance. 16 Academic Writing Write in a clear, concise, and organized manner; demonstrate ethical scholarship in appropriate and accurate representation and attribution of sources (i.e., APA); and display accurate spelling, grammar, and punctuation. Use of scholarly sources aligns with specified assignment requirements. Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in appropriate and accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation. Use of scholarly sources aligns with specified assignment requirements. 20 Total 100

Paper For Above instruction

Supply chain management (SCM) is a vital component of modern business operations, ensuring the efficient flow of goods, information, and finances from raw material suppliers to end customers. Understanding the complete life cycle of a supply chain, along with the models used to manage various aspects, costs involved, and performance monitoring parameters, equips organizations to optimize their operations and enhance competitiveness. For educational purposes, this handout elucidates these key concepts, enabling high school students to grasp the fundamentals of supply chain management.

The Life Cycle of a Supply Chain

The supply chain life cycle encompasses several interconnected stages that collectively define the journey of products from inception to consumption. These stages include procurement, manufacturing, distribution, retail, and after-sales service. Initially, raw materials are sourced from suppliers (procurement), followed by manufacturing processes where products are assembled or processed. The products then move into distribution channels to reach warehouses or retail outlets. Retailers present products to consumers, and post-sale activities like warranty service or recycling complete the cycle.

A typical supply chain diagram visualizes this flow, illustrating how each stage interacts with the next. For example, Apple Inc. manages its supply chain by coordinating raw material suppliers, assembly lines in China, distribution centers worldwide, retail stores, and after-sales service, exemplifying an integrated approach.

Models for Managing Forecasting, Planning, and Inventory

Organizations utilize various models to predict demand (forecasting), plan production and inventory levels, and manage stock efficiently. The Forecasting Models include qualitative methods like expert judgment and quantitative methods such as time-series analysis and causal models. For instance, retail companies utilize historical sales data and seasonal trends to forecast future demand.

The Planning Models involve tools like Material Requirements Planning (MRP) and Enterprise Resource Planning (ERP). MRP systematically calculates needed materials based on demand forecasts, helping prevent overstocking or shortages. ERP integrates core business processes, facilitating real-time planning and coordination—examples include SAP and Oracle ERP systems.

Regarding Inventory Management Models, techniques like Economic Order Quantity (EOQ) and Just-In-Time (JIT) inventory minimize costs while ensuring supply. EOQ determines the optimal order size to balance ordering and holding costs, whereas JIT aims for minimal inventory levels, reducing storage costs. Toyota's JIT system exemplifies efficient inventory management.

Costs Absorbed by Organizations in Inventory and Logistics

Managing inventory and logistics incurs various costs, impacting organizational profitability. These costs include ordering costs (costs of placing orders), holding costs (storage, insurance, obsolescence), and stockout costs (lost sales or customer dissatisfaction). Logistics costs encompass transportation, warehousing, and packaging.

For example, high transportation costs can significantly affect profit margins, especially when shipping perishable goods. Overstocking leads to increased storage and obsolescence expenses, while stockouts result in lost sales. Balancing these costs through efficient models and strategic planning is crucial for competitiveness.

Parameters for Monitoring Supply Chain Performance

Performance monitoring involves various key parameters, enabling organizations to identify bottlenecks and improve processes. These include Delivery Reliability (on-time deliveries), Inventory Turnover Ratio (frequency of inventory replacement), Order Accuracy, and Lead Time (time from order to delivery). For example, Amazon tracks delivery reliability and order accuracy meticulously to maintain customer satisfaction.

Other parameters like Supply Chain Cycle Time and Fill Rate help measure responsiveness and fulfillment levels. Organizations leverage advanced software systems to collect real-time data, facilitating continuous improvement. Maintaining these parameters optimally supports strategic objectives and operational excellence.

Conclusion

In summary, understanding the supply chain life cycle, management models, associated costs, and performance metrics is fundamental for effective supply chain management. By leveraging these concepts, companies can streamline operations, reduce costs, and enhance customer satisfaction, ultimately gaining a competitive edge in the global marketplace.

References

• Chopra, S., & Meindl, P. (2016). Supply chain management: Strategy, planning, and operation (6th ed.). Pearson.
• Heizer, J., Render, B., & Munson, C. (2017). Operations management (12th ed.). Pearson.
• Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing & managing the supply chain: Concepts, strategies & case studies (3rd ed.). McGraw-Hill/Irwin.
• Christopher, M. (2016). Logistics & supply chain management (5th ed.). Pearson.
• Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining supply chain management. Journal of Business Logistics, 22(2), 1-25.
• Focacci, P. (2014). Supply chain risk management: Minimizing supplier risk with effective strategies. International Journal of Production Economics, 150, 232-245.
• Harrison, A., & Van Hoek, R. (2011). Logistics management and strategy: Competing through the supply chain. Pearson.
• Gunasekaran, A., & Ngai, E. W. T. (2004). Information systems in supply chain integration and management. European Journal of Operational Research, 159(2), 269-295.
• Melnyk, S. A., Davis, E. W., Spekman, R. E., & Sandor, J. (2010). Aligning supply chain strategies with manufacturing strategies. International Journal of Production Economics, 126(2), 296-307.
• Rai, K., Ragu-Nathan, B., Ragu-Nathan, T. S., & Subba Rao, S. (2006). Impact of supply chain management practices on competitive advantage and organizational performance. Journal of Operations Management, 24(6), 43-55.