What does CRM provide sales representatives and customers ?

Current information regarding sales history , shipment history, order status, promotional summaries,
and shipment information.
What is the procurement strategy which focuses typically on purchases strategic items and services that involve
a HIGH level of EXPENDITURE and are vital to the organization's SUCCESS?
Critical Purchases
Which is the best way to ensure LONG-TERM organizational success?
to intensely research and then - meet the requirements of individual customers.
The terms 'purchasing' and 'procurement' are often used synonymously but which of the following
statements provides a more refined distinction?
Procurement has a broader meaning than purchasing.
This plot shows cumulative production and a cumulative forecast for a six month planning period.
Which of the following statements is best?

The two lines are at the same value in the June period.
The company is using a level plan for this six month period.
Suppliers who participate in VENDOR-managed inventory that has substantial advantages for both the
buying organization and the supplier called...
Certified suppliers
If an average inventory is 2000 units and annual relevant carrying cost of each unit is $5 then annual
relevant carrying cost will be
$5000
Which is the best fit strategy for fast-moving consumer goods?
MT

If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700 then
relevant INCREMENTAL cost will be

$ ,750
3

Business buyers seek benefits in economic, social and technical terms and in total CLASSIFIED as
Hi est b n fit package
gh

Which analysis is used to identify seasonality, cyclical patterns, and trends?

Time series
What are TYPICAL logistics facilities?
Manufacturing plants, warehouses, cro -do operations, and retail stores.
ss

ck

Cross-docking refers to:

C T NUOUS shipment from suppliers to warehouses where goods are reFed and shipped to
ON

retailers
Which is an alternative approach to achieving FL XIBILI to accomplish MA CUST M ZAT ?
E

F c sed fac
o

TY

SS

ION

tory

What happens when a firm becomes committed to value-added solutions for major customers?
It rapidly becomes involved in CU MIZED or TAILO logistics.
STO

RED

What does INVENTORY strategy focus on?

Highly PR F TABLE customers
O

In recent growth of global commerce, which elements of logistical operations have EXPANDED?
S ze and c mplexity.
i

The cost of INS R NCE and T XES are included in

U

INVE

NTORY

CARR

YING

cost

FTL stands for:

Full truck load
An average inventory in units is multiplied with annual relevant carrying cost of each unit for
calculating
annual relevant carrying costs
S&OP RESULTS in:
More ST BLE supply rates
A

The entire spectrum of process choices is available to a planner engaged in:

str t gic pl nning.
a

An example of PURCH SING COSTS include

A

INS RANCE
U

Which one of the following is NOT a TYPICAL question dealt with by an operations managers?
All are typical of operations decisions. (How to motivate employees? / How much capacity will be
needed in the months ahead? / What is a satisfactory location for a new facility?)
RADIO FREQUENCY identification technology is expected to be used:
To enhance the ability to keep accurate inventory COUNTS in warehouses
One of the common causes of the BULLWHIP effect is:
The BATCHING of orders
Which of the following was not a motivating force behind the ADOPTION of supply chain
management?
Cost cutting efforts by dominant companies in supply chains
The following classes of costs are usually involved in inventory decisions except
Machining cost

Which of the following is the EARLIEST stage in the purchasing cycle?

Define the need
Cost of product failure, error prevention and appraisals are classified as
costs of quality
Costs of goods are ACQUIRED from suppliers is classified as
Purchasing costs
During which of the following stages of the purchasing cycle is INTERNET based research used?
SOURCING the supply market
Which of the following is an extra activity required when assessing quotations for capital goods
purchases?
Calculating the total cost of OWNERSHIP
The ___________ forecasting MODEL computes a forecast as the AVERAGE of demands over a number
of immediate past periods.
MO

VING

ave e
rag

Which manufacturing strategy focus on contribute SPECIFIC FINISHED product like Lamborghini,
Princess Cruises?
ENGINEER-to-Order
Buffer stock is the level of stock
Minimum stock level below which actual stock should not fall
Which of the following explains the activities required PRIOR TO paying a supplier invoice for goods
ordered?
Check invoice against original documents, check for receipt of goods, check for problems with goods
Which of these statements about SALES and OPERATIONS PLANNING (S&OP) is best?
S&OP indicates how the organization will use its TACTI CAPAC RESO S to meet expected customer
CAL

ITY

URCE

demand.
Which rate is UTILIZED when a shipper agrees to provide multiple shipments to a carrier IN
EXCHANGE FOR a discount or exception from the prevailing class rate?
AGGREG TENDE rate
ATE

Who are INTERMEDIARIES that coordinate transportation arrangements for shippers, consignees,
and carriers?
Brokers
A business strategy can be thought of as a long-term alignment between:
What a business provides and what customers want
Which elements are integrated and synchronized through the S&OP process?
The business, unconstrained marketing, and resource plans
If economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units
then NUMBER OF DELIVERIES in a year will be
10
Buying of goods or materials for production in a way that they are DELIVERED DIRECTLY on
manufacturing facility of company is called
ju i ti purchasing
st

me

Which costs are resulted from EFFORTS to prevent failures and from efforts to reduce both failure and
appraisal costs?
Preve

ntion

costs

If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500 then
annual relevant ordering cost would be
$180

The order cost per ORDER of an inventory is Rs. 400 with an

annual carrying cost of Rs. 10 per unit . The Economic Order
Quantity (EOQ) for an annual demand of 2000 units is
400
What are two areas of logistical work driven by information ?
Forec

asting

and comm

unication

What is a major factor influencing customer expectations?

PREVIOUS supplier performance.
What does CRM's relevance to logistics lie in?
its need for cross-functional TRANSPAR .
ENCY

What is the PRIMARY objective of SIX-SIGMA?

to achieve a process standard deviation that is six times smaller than the range of outputs allowed
by the product's design specification

What are elements of planning in order to ENSURE logistical quality?

Employee training, operational dedication, compr he measurement, continuous improvement
e

nsive

What is the goal of performance cycle SYNCHRONIZATION ?

To achieve the PLANNED TIME performance.
What are the relations between speed and cost of transportation?
Transport firm capable of offering faster delivery typically charge higher rates for their services. The
faster the transportation service is, the shorter the time interval during which inventory is in transit and
unavailable.
When are VARIATIONS in basic utilities, form, possession, time, and place JUSTIFIED ?
A customer or segment of customers values and is WILLING to pay for the MODIFICATION .
What is more critical than the complete order in customer's perspective?

Advanced notification of problems.

MAINTAINING inventory involves - a which expense related to the cost of CAPITAL INVESTED in
inventory:
All of the above (Storage and obsolescence / Insurance / Taxes)
Direct shipment refers to:
Shipping directly from manufacturer to retailers
Which term is used by railroads for holding a railcar BEYOND 48 hours before unloading the
shipment?
DEMURRAGE
What can failure to satisfy customers can arise from?
Lack of knowledge about customer expectations, improper standards of performance , performance
failure , poor communication , or incorrect customer or firm perception of performance.
Which came LAS in the development of manufacturing techniques?
T

LEA production
N

The process of deciding INSOURCING or OUTSOURCING usually called?

MAKE-BUY decision
Which of the following is not an inventory?
Machines
Which strategies objectives to MINIMIZE inventories and handling, with materials and components
being READY for assembly or transformation as they are needed?
JIT & MRP
According to the harsh issue about quality, Samsung will "dispose of" recalled Note 7 instead of focusing
on repairing or refurbish them. Hence, which DIMENSION of product quality did Samsung want to
ensure?
RELIABILITY
Which manufacturing process provides high level of product variety but in low volume?
Batch
What is the meaning of the term MASTER facilities?
is often used to describe inventory strategies that designate larger facilities for backup support of
smaller restricted facilities.

Why do most logistical managers place greater value on CONSISTENCY ?

Because it DIRECTLY impacts a customer's ability to PLAN and PERFORM its own activities.

If demand of one year is 25000 units, relevant ordering cost for

each purchase order is $210 and carrying cost of one unit of
stock is $25 then economic order quantity is
648 packages
What is the alternative to holding SAFETY stock?
To receive exact and timely inventory REPLENISHMENT .
CONSOLIDATION WAREHOUSING refers to:
HOLDING inventory received from suppliers in warehouses UNTIL NEEDED
The level production strategy provides a CONSTANT rate of output over the entire planning time
period and requires NO:
All of the above (OVErtime / SUBCON tracting / Changes in the WORKFO rce LEvel)
Why satisfied customers are not necessarily loyal customers?
Satisfied customers may choose to do business with COMPETITORS. Because they expect a competitor to
perform at a higher level or at least as well as the organization in question
Which procurement strategy focuses on improving ECONOMIES OF SCALE by spreading FIXED
cost over a LARGER volume of OUTPUT?
Volume CONSOLI

DATION

The time period between placing an ORDER its RECEIPT in stock is known as
LEAD time
Some companies reach the point where sales and operations planning becomes a competitive
advantage. Which of these is NOT an indication of reaching this phase?
Capital equipment planning is performed on an annual basis at the start of the budget year
Soft benefits of S&OP include:
All of the above (Enhanced teamwork / Greater accountability for results / Better and faster
decisions)
Which of the following is true for Inventory CONTROL ?

All of the above (Economic order quantity has minimum total cost per order / Ordering cost decreases
with lot size / Inventory carrying costs increases with quantity per order )
In which kind of shipment, the MANIFEST is as same as the BILL of LADING ?
Single-stop shipment
If purchase order lead time is 35 minutes and number of units sold per time is 400 units then
REORDER point will be
14000 units
What is the right statement?
The fewer the times a product is HANDLED , the less potential exists for product DAMAGE .

1
OVERV of 21st century Supply Chain
IEW

The Supply Chain REVO

LUTION

Why

INTEGRATION

Ge lized Supply Chain

nera

RESP SIV
ON

FINA

NCIAL

LI

MOD

EL

ENESS

Sophi

GLOBA Z

Creates VALU

stication

ATION

The Supply Chain Revolution

What are the reasons for the shift from traditional distribution to modern supply chain?
=> Rapid growth of INFORM TEC
ATION

HNOLOGY

and the accessibility of the INTE .

RNET

Transportation CAPAC and operational PERFOR .

ITY

MANCE

Capability to TRAC shipments and receive notifica of dela deli .

K

tion

INDU IAL Revolution (1 00S)

STR

DIVIS /SPEC LIZA

ION

IA

INTERCHA

NGEABLE

parts

RAILR , ELE
OADS

MA PRO
SS

of labor

TION

, COMMU

CTRICITY

DUCTION

NICATIONS

Era (1 00-1 73)

Moving ASSE

MBLY

LI

NES

yed

very

 Scientific MANAG

EMENT

Operations RESEA

RCH

methods
techniques

FO Model T
RD

LEA MANUF ING Era (197 199 )

N

ACTUR

Increased global COMPET

Improved FLEXI
SI SIGM
X

BILITY

ITION

and QUAL control

ITY

Q , JI , TQ
C

Mass CUST

OMIZATION

Era (199 T Y)
6

ODA

Better information ENGINE

ERING

INT , WIRELE communications, B

ERNET

SS

Integrate INTE

RNAL

systems with EXT

What is Supply Chain MAN

AGEMENT

ERNAL

2B

EC

OMMERCE

partners

is a set of approaches used to efficiently INTE

GRATE

suppliers, manufacturers, warehouses, and

customerso that mercha is produced and distributed at the RI QUA

the right LOCA , and at the right TI in order to MIN
system wide co s while satisfying SERV level requirements.
ndise

GHT

TIONS

ME

PORARY

, to

IMIZE

st

CONTEM

NTITIES

ICE

strategic thinking

Supply Chain Management : consists of firms COLLABORATING to leverage strat POSI

egic

T ING and to improve operating efLiciency

ION

Supply Chain STRA : is a CHANNEL and business ORGAN NAL ARRA MENT based on
TEGY

ACK

NOWLEDGE

IZATIO

DEPE Y and COLLA

NDENC

BORATION

LOGI S: is the work required to MOV and geogra

STIC

NGE

phically

POSI inven
TION

Why integration creates value

EC IC
ONOM

value

Built on EC ES of SCA in operations as the source of effici

ONOMI

High QUA at low PRI

LITY

LE

CE

ency

tory

 Advantages and Disadvantages?

MAR

KET

VA

LUE

Presenting an ATTRACTIVE ASSOR

ectiveness.

TMENT

of products at the right time and place to realize ef

ECONOMY of SCO .
PE

CONVE
RELEV

NIENT

ANCY

CUST Z
OMI

product/service assortment and choice.

value
of VAL AD service.

ATION

UE

DING

RIGHT PRODU & SERVI mar value

CT

ket

CES

RIGHT PRI ec

onomic

CE

value

TABLE INTE TIVE Management Value PR POSIT

GRA

ION

The SIMUL achievement of economic value, market value,

TANEOUS

and relevancy value requires total inte of the ov all business process and is known as the
integrative management value proposition.
gration

EC. VAL.
L EST TOT Cost
OW

AL

EC IES of SCA
ONOM

EFFICIENCY.

LE

PRODUCT/ SERVICE CREAT .

ION

STRATEGY : PR CUR MENT / MAN RING

O

MARK. VA.
ATTRA
ASSO
CTIVE

UFACTU

RTMENT

Economy of SCO

PE

EFFE

CTIVENESS

er

 Product/Service PRESE

NTATION

STRATEGY : MA ET / DIST
RK

RIBUTION

RELE. VA.
CUST

OMIZATION

SE TAL DIVE
GMEN

RSITY

Product/Service POSI

TIONING

STRATEGY : SUP CHA .

PLY

IN

GE IZED Supply Chain MO

NERAL

DEL

The Integrated Supply Chain Fra wo

me

rk

Supply Chain Co xity

mple

Which PROBLEMS can be occurred in the Integrated Supply Chain Framework?

LOY Issues: C fide
ALTY

on

ntiality

and potential Confli of inte

ct

rest

HIGH degree of MOBI and CHA OB VABLE in typi arran .

LITY

NGE

SER

cal

gements

Supply Chain INF MATION SYS

OR

TRANSA

CTION

Sys ->
tem

MAN

AGEMENT

TEM

F nct nality

CONT ->
ROL

io

DECI

SION

ANA

LYSIS

-> STRA

TEGIC

PLA

Transaction system
Transaction system functionality consists of - F ALIZED RU and PROCE
ORM

Standardized communications focus on- tra

cking

LES

and regu

NNING

DURES

d toda lo ical transa .

lating

ay

gist

ction

For example:
Order ENT Order FULFI
RY

LLMENT

INVE

NTORY

adju

stment

INVO

ICING

Management Control
Management control functionality focuses on PE MANCE m gement and repo
RFOR

Provides real time FEE BA on supply chain perf

D

CK

Common performance DIME S include:

NSION

Co Cust ser Produ Qua

st

omer

vice

ctivity

lity

ana

ormance

and reso

rting

urce

utili

zation

Decision analysis
Decision analysis functionality focuses on SO WA too to assi ma ers
FT

RE

ls

st

nag

Software tools help to ide y, ev ate and compa ALT NA VES to improve effec ness
ntif

alu

re

ER

TI

tive

- Ex: Exc solver

el

Types of analysis include

- Supply chain DESI - INVE
GN

- Segmental PROFI
Also called DECI

SION

NTORY

management - Resource ALLO

CATION

- ROU

TING

TABILITY

SUP T software in MI depa s .

POR

rtment

Strategic planning
Strategic planning functionality transfo - trans al da to ASSI in STRA Y EVA TION
rms

action

ta

TEG

ST

LUA

Orga z transaction and performance da into a r nal d base to assist in ev luat alte
usiness strategies.
ni

es

ta

elatio

ata

ing

Examples include
- Strategic A ANCE decisions - Development of m ring CAPAB
LLI

- Cu r
stome

anufactu

ILITIES

R P SIVENESS opportunities.
ES

ON

SCIS Usage, Decision Characteristics, and JustiLication

More oppo

rtunities

ex st for improvements
i

at HI ER LEV S of functionality
GH

EL

rnative

Supply Chain Information System MODULES

Enterprise integration and administration
Enterprise supply chain operations
Enterprise planning and monitoring
Communication TECHNOLOGY
CONSUMER connectivity.
Enterprise RESOURCE management (ERP)
The B CKB NE of most Firms logistical information systems
A

Maintains an INT G TED database of CURRE historical data

E

RA

NT

Processes most (if not all) transa s across all business functions
ction

Example transactions include

Ord entry and management Inven assignment Shi
er

tory

pping

Enterprise Integration and Administration

Enterprise integration and administration modules are NOT SPE FI supply chain ap s
CI

Components :

Enterprise SC Operations modules SUP DA TODAY supply chain operations

PORT

Enterprise Pla

nning

and Moni

toring

Enterprise planning and monitoring modules facilitate - xcha g of pla g inf n .

e

nnin

ormatio

I. M. and S. CHAIN PROC SES

ES

Process
Demand planning responsiveness

Customer relationship collaboration

Order fulfillment/service delivery

Product/service development launch

Manufacturing customization

Supplier relationship collaboration

Life cycle support

Reverse logistics

Description
The assessment of demand and strategic
design to achieve maximum
responsiveness to customer
requirements
The development and administration of
relationships with customers to facilitate
strategic information sharing, joint
planning, and integrated operations.
The ability to execute superior and
sustainable order-to-delivery
performance and related essential
services.
The participation in product service
development and lean launch.
The support of manufacturing strategy
and facilitation of postponement
throughout the supply chain.
The development and administration of
relationships with suppliers to facilitate
strategic information sharing, joint
planning, and integrated operations.
The repair and support of products
during their life cycle, including
warranty, maintenance, and repair
The return and disposition of inventories
in a cost-efective and secure manner.

Concepts necessary for achieving INT GR TED management

E

L EST TOT process cost is the foc of integrated

management
Differs from lowest cost of eac func in the process
OW

AL

us

tion

Coll ra of operating information, technology and risk

has been enco by nati legi to ke US-based
firms comp ti
Enterprise EXTE SI includes expanded managerial influence and control beyo
abo

tion

uraged

onal

ep

slation

tive

ON

nd

tradi ownership boundaries of a single enterprise

tional

Integrated SER PROVI

VICE

DERS

(ISP) provide a range of logistics services to accommod

ate customers, ranging from ord entr to produ deli

Commonly known as third (or fourth) party service providers
er

ct

very

Enterprise extension

Information SH ING PARADI supply chain participants SH R

AR

GM

ING operating information can achieve a high degree of collaboration and enhanc
ed strategic planning.
Process SPEC LIZ paradigm the commi to focus collaborative
arrangements on planning JOI ope s with a goal of elimi nonprod or non
v ad redundancy by firms in a supply chain.
IA

ATION

tment

NT

alue

ration

nating

ding

Integrated service providers (ISPs)

OUTSO
TRANSP RT modes
Public WAREH
VAL AD servi
THI and FOU party service provi
AS T or NO AS BAS service provi
URCING

ATION

OUSES

UE

DED

ces

RD

SE

RTH

ders

SET

ED

ders

uctive

 Responsiveness

ANT C PAT Business Model

I

ORY

Forecast Buy components and materials Manufacture Warehouse Sell Deliver

RESP SI Business Model

ON

VE

Forecast Buy components and materials Manufacture Warehouse Sell Deliver

P SH

AND

P LL
U

SAFETY STOCK is WASTE

Safety stock in exce inve - in a system to account for variations in:
ss

ntory

DEMA LEA time SUPP PERF MA POO QUAL

ND

DIFF

ERENCES

LIER

OR

NCE

between CALE DA D YS and W RK D

N

ITY

AYS

Ex: Production works on Saturday, but suppliers dont deliver on Saturday

Customer Order Decouple Point

SUPPLIERS - CUSTOMERS
Make-to-LOC Stock
AL

Make to CENT

RAL

Stock

ASSE to ORDER
MBLE

PROD to ORDER
UCE

PURC and MANUF

HASE

ACTURE

to Order

F CAST = P SH
ORE

ORD = P LL.
ERS

GOAL
THE GOAL is MINIM the amount of safety stock in the system without reducing O
IZE

TI DELIV performance
ME

ERY

Postponement
Postponement strategies kee supp chai responsive
p

ly

ns

Type of Postponement
- Manufacturing (or F RM) - Geographic (or L GIS )
O

TICS

- C MB NED
O

Manufacturing and geographic types are XACT OP SITES

E

PO

i pr tice but have the SAM GOA :

n

ac

- Meeting cust dema QUI while MINIM inve .

omer

nd

CKLY

IZE

ntories

MANUFACTURING postponement
Manufacturing ON order A A TI
E

ME

B SE M ULAR construction of product

A

OD

NO CUSTO

MIZATION

until the exact customer specs and financial commitment is received

Objective is to maintain products in an UNCOMM

ITTED

status as long as possible

BALA economy of scale with responsiveness

NCES

Can build a SUFFI

CIENT

quantity of ready to customize basic units

Requires a lot of FORETHO

UGHT

during product design

Geographic (or logistics) postponement

Keeping FU INV TO in a C TRAL W REHO and/ releasing customer orders to LOCA dis
tributors or DIRE shipping to customer
LL

EN

RY

EN

USE

CT

Build or stock a fu li inve A ON or A FE strategic locations

ll

FORWA DEPLO
RD

YMENT

ne

ntory

of inventory is POSTPO until customer orders are received

NED

Once orders received, SPE FIC item is expedited TO THE LOCA distributor
CI

ADVANTA are manufacturing ECON OF SCA along with RESPONSIVE

GES

OMIES

LE

Often used for CRITI , HI C ST parts and assemblies (e.g. e gines)

CAL

GH

NESS

to customer

Combined postponement
Keeping the basic products C NTR LIZED and performing the C STO ZATION at the desti
nation distributor
E

MI

HI RICAL example
STO

AUT

Installing dealer options like s syst , GP , su roo on new cars purchased

OS

ound

ems

fs

C NT PORARY example
O

EM

Compu

ters

D ll Computers, doing Final assembly or packaging additional system options like pr ters,
e

in

d gital came at a distri tion ce

i

ras

bu

nter

WHY using a postponement strategy?

Reduce INV TO cost

EN

RY

Reduce TRANSPO

RTATION

cost

Reduce risk of OBSOLE

SCENCE

Reduce DEMA variab l

ND

Improve COMPETI

VENESS

ity

by ofering customized product quickly

HOW a postponement strategy works?

High product VARI T
E

 MODU
FLE

XIBLE

LAR

and STANDA

RDIZED

product design

manufacturing system

RE TI information and communication

AL

ME

FA RESP
ST

ONSE

logistics

STR GIC supplier relationship.

ATE

BARRIERS to implementing responsive systems

Need for PU CITY held corporations to maintain planned quarterly profits
BLI

EXP TIONS OF C T NUED FIN CIAL results often drive promotional and pricing strategies
to load the channel with inventory
ECTA

ON

AN

Need to establish CO R TIVE RELA SHIPS

LLABO

TION

Most business managers do NOT HAVE TRAI OR EXPE

arrangements
NING

RIENCE

in development of collaborative

FINANCIAL SOPHISTICATION
Enables M S REMENT of timebased supply chain
EA

CASHTOCASH C NV RSION
the time required to convert ra mate or inv tory purch into s les rev
O

rial

en

ases

enue

DWE TIME MINIMIZATION

dwell time is the ratio of time that an assets sits idle to the time required to satisfy its supply
chain mission Cash SPI
reducing assets in the supply chain can spin cash for reinvestment in other projects
LL

Globalization
Offer firms several attrative opportunities
Demand EXCEE local supply
DS

90% of global demand is not fully satisfied by local supply.

Strategic SOUR

CING

Identif and matc the sources of raw materials and components to manuf t rers and d
str butors.
ying

hing

ac

OFFSHO

RING

Moving manufacturing and distribution operations to countries with favorable LABO C STS a
R

nd TA LA .
X

WS

SigniLicant differences for global logistics

Distance of typical ORDERTO-DELIVERY operations is significantly longer compared t
o DOMESTIC business
DOCUMENTATION requirements for business transactions is signiLicantly more complex
Operations must be deal with SIGNIFICANT DIVERSITY in work practices and local oper
ating environments

How consumers Demand products and services must accommodate CULTURAL VARIATION
S

CHAPTER 5: Manufacturing
The 8 DIMENSIONS of product quality
Total quality management
Management standards have been established by the ISO in BOTH QUALITY and ENVIRON
MENT
ISO certiCied suppliers are frequently PREFERRED by PROCUREMENT DEPARTMENTS
Manufacturing perspectives
Brand power Volume Variety
Leadtime

The four basic manufacturing processes

Job shop
Batch process
Line Flow process
Continuous process
create new options Mass customization
Manufacturing strategies should MATCH market requirements
Make to Order (MTO)
Assemble to Order (ATO)
Make to Stock (MTS)

The choice of strategy determines which performance cycles the cu

stomer experiences
Product Design ETO Strategy
Procurement Cycle MTO
Manufacturing Cycle ATO
Customer Delivery Cycle MTP
Total Cycle Experienced by Customers.

Total cost of manufacturing

TCM per unit ranging across strategic alternatives
Contemporary manufacturing developments
Manufacturing characterizations
Flexibility-based strategies = Manufacturing capability
Four Competitive Strategies

MASS CUSTOMIZATION
Where does it work
What does it take to succeed?

Capability: FAST LEAN launch

Key challenges

Capability: MIX/VOLUME response

ROBUST operations:
Where does it work?
What does it take to succeed?

LEAN systems
Primary objectives of lean systems

SIX-SIGMA quality concepts

Logistical INTERFACES
PERFORMANCE BASED logistics interface

Just-in-time (JIT) interfaces

Materials Requirements Planning (MRP) interfaces
DESIGN for manufacture
Design for logistics interfaces

CHAP 8
FIXED Costs
VARIABLE Costs