1
Q
Definition SCM
A
- Consists of all parties involved directly or indirectly in fulfilling a customer request.
- Includes the flow of products, funds, and information
2
Q
Supply vs. demand-driven supply chains
A
- Supply-driven supply chains
- Maximise value creation by observing availability of resources
- Example: Production of sugar is based on the crop available
- Demand-driven supply chains
- Maximise value creation by observing expected demand
- Example: Design of clothes is based on demand forecasts or expected trends
3
Q
Supply Chain Cycles
A
4
Q
Strategic Fit
A
- For a strategic fit, competitive and supply chain strategies need to have aligned goals → the SC therefore needs to be adjusted to meet the customer needs and to allow the firm to execute the competitive strategy
- Understanding supply chain capabilities
- Understanding the Customer and supply chain uncertainty
- Achieving strategic fit
5
Q
Supply-Chain Drivers
A
Logistical:
- Facilities
- Inventory
- Transportation
Cross-functional drivers:
- Information
- Sourcing
- Pricing
6
Q
Types of aggregation
A
- Information centralization → aggregation of information
- Specialization → aggregation of inventory
- Product substitution → aggregation of demand
- Component commonality → aggregation of components
- Postponement → aggregation of products
7
Q
Supply Chain Coordniation [Definition, Obstacles, Impacts]
A
- Definition of Supply Chain Coordination
- All stages of SC take actions that are aligned and increase SC profits
- Creation of incentives that local optimal decisions match globally optimal decisions
- Obstacles to coordination
- Local optimization of decisions regarding price and ordering
- Information is distorted or delayed between stages of SC
- Impacts
- Lower order quantities and product availability due to double marginalization
- Global SC optimum is not achieved
- Bullwhip effect
8
Q
Contracts - Matrix
A
9
Q
Instruments of Revenue Management [Name, Explaination]
A
- Overbooking
- Find compromise between wated capacity and capacity shortages → goal is complete utilization despite uncertain demand
- Differential pricing
- Adjusting prices to meet customer’s willingness to pay → exploit market potential by forming segments
- Capacity allocation
- Allocate capacities to different user segments → maximise profit by accepting or rejecting requests in anticipation of later-coming higher-price buyers
- Dynamic pricing
10
Q
Factors for effective revenue management [9]
A
11
Q
Contract types
A
Deterministic demand:
- all-unity quantity discount → discount if quantity above global optimum is ordered
Price sensitive demand: → reseller chooses optimal price based on c_m chosen by manufacturer → SC optimum for c_r = c_m
- two-part tariffs → manufacturer gets franchise fee from retailer, but then sets c_r = c_m
- volume-based quantity discount → manufacturer offers dicount once Q is chosen optimally for SC by retailer → p is then chosen by retailer based on that
12
Q
Coordination [Defination, Obstacles, Impacts]
A
- Definition: All stages take actions that are aligned and increase SC profits
- Obstacles: local optimization regarding price and ordering, distorted and delayed information flow
- Impacts: higher order quantities and product availability, achieving global SC optimum, reduced bullwhip effect
13
Q
Collaboration
A
Process-driven concepts:
- Information sharing → retailer shares info about inventory and orders
- continuous replenishment programs
- manufacturer regularly replenishes inventory of retailer based on PoS or inventory data
- inventory owned by retailer
- manufactuerer only delivers needed quantities
- Vendor Managed inventory
- Manufactuerer takes over responsibility of inventory planning
- inventory often owned by manufacturer
- Collaborative planning, forecasting and replenishment → CPFR
Technology-driven concepts:
- Electronic marketplaces
- Tracking and Tracing
- Collaborative SCM-Systems
14
Q
EMSR-A Heuristic
A
15
Q
EMSR-B Heuristic
A
16
Q
Optimale CSL → Newsvendor-Modell
A
17
Q
Gewinn bei unsicherem Demand → Newsvendor-Modell
A
18
Q
Optimale Bestellmenge → Newsvendor-Modell
A
19
Q
Optimal lot size
Cycle inventory
→ EOQ-Modell
A
20
Q
Deterministic demand → Optimal lot size for SC
A
21
Q
Safety inventory
A
22
Q
Overbooking
A
23
Q
Dynamic pricing → Should order be accepted?
A
24
Q
Revenue sharing
A
- Retailer receives share u of selling price
- Manufacturer offers reduced wholesale price
25
Modelle
→ Welche gibt es?
* Newsvendor-Modell
* EOQ-Modell
* Little-Wood-Pricing
26
EOQ-Modell [Assumptions]
* Steady and determnistic demand
* no shortages
* fixed replenishment time
* fixed ordering costs
27
Little-Wood-Pricing [Assumptions, Function]
* Fixed Capacity
* Two segments with p1 \> p2
* Uncertain demand
* Demand for segment 1 is realized after demand for segments 2
→ How much space needs to be saved for higher paying customers?
28
Newboy/Newsvendor-Modell [Assumptions]
* Uncertain demand given by normal distribution
* Product expires after one season
* Order and delivery at beginning of/before season
* Manufacturer produces exact quantity asked for by retailer
29
Aggregation of products
**Postponement** → Delay product differentiation closer to time product is sold
**Advantages**:
* Higher forecast accuracy
* better alignment of demand and supply
**Disadvantages**:
* more complex processes
* waiting time for order
* need for modular product design
30
Safety inventory [Assumptions]
* Demand defined by stochastic distribution → Normal distribution
* Constant delivery time
* Cosideration of one period
* Uncertainty of demand and/or supply
31
Aggregation of components
**Component commonality** → Use same components for multiple products
**Advantages**:
* lower number od parts
* economies of scale
* inventory reduction
**Disadvantages**:
* harder product design
* changes to existing products
* possible quality issues → all products affected
* difficulties for product differentiation
32
Aggregation of inventory
**Specialisation** → Certain products stored only in specialised locations
**Advantages**:
* reduction of variance → lower safety inventory
* reduction of fixed costs
* reduced delivery costs from manufacturer
**Disadvantages**:
* increased transport costs to customers/retailers
* increase in response time
33
Aggregation of information
**Information centralization** → as inventory is visible globally, orders are fulfilled by closest location with available stock
**Advantages**:
* Higher responsiveness
* Lower transportation costs
* Higher product availability
* lower safety inventory
**Disadvantages**:
-none-
34
Obstacles to coordination [5 → Name and short explaination]
* **Incentive obstacles**
* **Local optimization** → decisions are based on maximising profits of only a single stage without considering overall profits
* **Sales force incentives** → incentive system, which reward sell-in, not sell- through lead to order variability being larger than customer demand variability → quantity sold to distributors is increased rather than quantity sold to final customers
* **Information-processing obstacles**
* **Lack of information sharing** → short-term promotions cause retailers to increase their order quantity → manufacturers interpret this as a permanent increase in demand → high inventory level
* **Operational obstacles**
* **Ordering in large lots** due to high fixed costs or quantity discounts
* **Large replenishment lead times** → if demand is overestimated, this leads to a higher forecast and order quantity → this is magnified if lead times are long
* **Rationing and shortage gaming** → if capacity is limited, quantities are often allocated according to order quantities → incentive to place higher orders independent of demand → gives cause for manufacturer to misinterpret demand
* **Pricing obstacles**
* **Lot-size-based quantity discounts** → leads to increased lot sizes → magnifies bullwhip-effect
* **Price fluctuations** → trade discounts lead to forward buying by retailers → after promotion is over the retailer only places very small orders
* **Behavioural obstacles**
* **Local points of view** → lack of seeing the overall SC
* **Different stages blame another for fluctuations** → SC members become enemies
* **No stage learns from its actions** as consequences may only become visible in other stages
* **Lack of trust** **leads to opportunistic behaviour** → information is not shared
35
CPFR [Name, Objective, Requirements, Potentials]
**Objective:**
* Increasing product availability while reducing inventory, transportation and logistic costs
**Requirements:**
* Synchronizing data → finding and eliminating inconsistencies in forecasts
* Standardizing the exchange of information
**Potentials:**
* Reduction of retail inventories
* Reduction of inventories along the supply chain
36
Master Production Scheduling vs. Detailed Scheduling
**Master Production Scheduling**
* Matches available material with available capacity
* Planning object: work orders and quantities
* Considers typically resource groups
* Planning horizon is up to 3 months
**Detailed Scheduling**
* Generates detailed sequences of materials (per order)
* Planning object: material piece
* Normally one (critical) resource is planned
* Planning horizon is up to 1 week
