《Chapter 11》.pptVIP

Chapter 11 Coordinated Product and Supply Chain Design 11.1 A General Framework Two distinct chains in organizations: The supply chain which focuses on the flow of physical products from suppliers through manufacturing and distribution all the way to retail outlets and customers, and The development chain which focuses on new product introduction and involves product architecture, make/buy decisions, earlier supplier involvement, strategic partnering, supplier footprint and supply contracts. Key Characteristics of Supply Chain Demand uncertainty and variability, in particular, the bullwhip effect Economies of scale in production and transportation Lead time, in particular due to globalization Key Characteristics of Development Chain Technology clock speed Speed by which technology changes in a particular industry Make/Buy decisions Decisions on what to make internally and what to buy from outside suppliers Product structure Level of modularity or integrality in a product Modular product assembled from a variety of modules each module may have several options Bulk of manufacturing can be completed before the selection of modules and assembly into the final product takes place Interaction between the Two Chains Fisher’s concept of Innovative and Functional Products Functional products characterized by: slow technology clock speed, low product variety, and typically low profit margins Innovative products characterized by: fast technology clock speed and short product life cycle, high product variety, and relatively high margins. What Is the Appropriate Supply Chain Strategy and Product Design Strategy for Each Product Type? Each requires a different supply chain strategy Development chain has to deal with the differing level of demand uncertainty Framework for Matching Product Design and Supply Chain Strategies 11.2 Design for Logistics (DFL) Product and process design that help to control logistics costs and increase service levels Economic packaging and transpor