SCM 485 Exam 1 Review
SCM 485 Exam 1 Review
Forecast
Notes
Supply Chain Management
Sequence of activities and organizations involved in producing and delivering a good or service
SCM Define by Council of Supply Chain Management Professionals (CSCMP)
Supply Chain Management encompasses the planning and management of all activity involved in sourcing and procurement, conversion, and all logistics management activities.
Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.
In essence, supply chain management integrates supply and demand management within and across companies into a cohesive and high-performing business model
It includes all of the logistics management activities noted above, as well as manufacturing operation, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology
Demand Management
Demand Management = Gate Module
*It link between the market and the firm (production and distribution)
*Purpose of Demand management Cover the bridge between the firm(company) and the customer(market)
Includes
Forecasting
Order Entry
Customer Service
DRP
General Customer-contact activities
Difference between production planning and demand planning
Well we plan production based on demand
Demand management informs production planning by considering demand from all sources
Customer orders
Service part demands
Forecasts
Forecasts are consumed by orders ??
All supply chain partners MUST understand demand!!
Start with understanding the customer and the 7 rights
Product
Quantity
Time
Place
Condition
Price
Information
**We are going to replace forecasts with knowledge wherever possible**
Forecast= Guess of the timing and quantity of customer demand
Goal of forecast = is to make forecast accurate and less bias
Plan= How the firm will react to the forecast
Forecast
Notes
Supply Chain Management
Sequence of activities and organizations involved in producing and delivering a good or service
SCM Define by Council of Supply Chain Management Professionals (CSCMP)
Supply Chain Management encompasses the planning and management of all activity involved in sourcing and procurement, conversion, and all logistics management activities.
Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.
In essence, supply chain management integrates supply and demand management within and across companies into a cohesive and high-performing business model
It includes all of the logistics management activities noted above, as well as manufacturing operation, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology
Demand Management
Demand Management = Gate Module
*It link between the market and the firm (production and distribution)
*Purpose of Demand management Cover the bridge between the firm(company) and the customer(market)
Includes
Forecasting
Order Entry
Customer Service
DRP
General Customer-contact activities
Difference between production planning and demand planning
Well we plan production based on demand
Demand management informs production planning by considering demand from all sources
Customer orders
Service part demands
Forecasts
Forecasts are consumed by orders ??
All supply chain partners MUST understand demand!!
Start with understanding the customer and the 7 rights
Product
Quantity
Time
Place
Condition
Price
Information
**We are going to replace forecasts with knowledge wherever possible**
Forecast= Guess of the timing and quantity of customer demand
Goal of forecast = is to make forecast accurate and less bias
Plan= How the firm will react to the forecast