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Plan – Processes that balance aggregate demand and supply to develop a course of action that best meets sourcing, production, and delivery requirements. Source – Processes that procure goods and services to meet planned or actual demand. Make – Processes that transform product to a finished state to meet planned or actual demand.
Supply chain visibility, in its origins, was concerned with knowledge of the location/production stage and expected delivery date of incoming products and materials, so that production could be planned, [24] but the development of the term has enabled it to be used to plan orders using knowledge of potential supplies, and to track post ...
Typically, supply-chain managers aim to maximize the profitable operation of their manufacturing and distribution supply chain. This could include measures like maximizing gross margin return on inventory invested (balancing the cost of inventory at all points in the supply chain with availability to the customer), minimizing total operating expenses (transportation, inventory and ...
The manufacturer supplies the retailer stores with product as demand for product is pulled through the supply chain by the end user, being the consumer. The choice of demand forecasting method influences both supplier selection and planning of order allocation. [9]
Quality, cost, delivery (QCD), sometimes expanded to quality, cost, delivery, morale, safety (QCDMS), [1] is a management approach originally developed by the British automotive industry. [2] QCD assess different components of the production process and provides feedback in the form of facts and figures that help managers make logical decisions.
Demand control focuses on alignment of supply and demand when there is a sudden, unexpected shift in the demand plan. The shifts can occur when near-term demand becomes greater than supply, or when actual orders are less than the established demand plan.
an "extended" supply chain includes suppliers of the immediate supplier and customers of the immediate customer; an "ultimate" supply chain includes all of the organizations involved in the supply of the product or service. In each case, the flow of information and finances is part of the chain as well as the product or service. [10]
Distribution resource planning (DRP) is a method used in business administration for planning orders within a supply chain.DRP enables the user to set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory requirements.