The choice of who will perform a specific supply chain activity, such as production, storage, transportation, or information management. Key metrics include supplier lead time, purchase price, and supplier reliability.
: Designing networks to handle demand and price fluctuations. Part III: Planning and Coordinating Demand and Supply
The actual physical locations where product is stored, assembled, or fabricated. Key decisions involve centralization versus decentralization.
: Detailed link between supply chain decisions and firm financial performance. Part II: Designing the Supply Chain Network Chapter 4: Distribution Networks & Omni-Channel Retailing Design Factors : Customer service needs vs. cost. Omni-Channel
Determines what the operations, distribution, and service functions must do particularly well. Achieving Strategic Fit The choice of who will perform a specific
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A truck either delivers from a single supplier to multiple buyers or collects from multiple suppliers for a single buyer. Lowers transportation costs for small lot sizes.
Chopra reviews systemic forecasting methodologies used to break down demand data into meaningful components:
Production flexibility and economies of scale. Part III: Planning and Coordinating Demand and Supply
The goal of any SCM strategy must be to maximize this surplus, rather than optimizing individual silos like transportation or warehousing in isolation. Achieving Strategic Fit
⚠️ Beware of free "full" PPT downloads from unknown sites – they often contain malware or are outdated 5th/6th edition files.
Demand=(baseline component+trend)×seasonal factor+cyclical factor+random noiseDemand equals open paren baseline component plus trend close paren cross seasonal factor plus cyclical factor plus random noise Forecasting Methods
How much a firm will charge for the goods and services it makes available in the supply chain. 3. Network Design and Global Optimization Part II: Designing the Supply Chain Network Chapter
How a lack of coordination causes demand fluctuation to magnify as it moves up the supply chain.
Restructure the supply chain to ensure its level of responsiveness matches the implied demand uncertainty. 2. Supply Chain Drivers and Metrics
Customer revenue is the only source of positive cash flow. All other flows—information, materials, and funds—incur costs within the supply chain. 2. Supply Chain Performance: Achieving Strategic Fit
Transportation moves products between different stages of a supply chain, directly impacting both responsiveness and efficiency. Transportation Network Infrastructure Options
Master Supply Chain Management: A Complete Guide to Sunil Chopra’s 7th Edition
Slides covering network design focus on four fundamental questions: