1 / 10

Course Code MGT 561 Supply Chain Management

Course Code MGT 561 Supply Chain Management Book: Supply Chain Management Strategy, Planning, and Operation 5 th edition (Pearson Publishing) Author: Sunil Chopra and Peter Meindl. Summary of the last lecture. Understand the role of network design in a supply chain

danielsd
Download Presentation

Course Code MGT 561 Supply Chain Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Course Code MGT 561 Supply Chain Management Book:Supply Chain Management Strategy, Planning, and Operation 5th edition (Pearson Publishing) Author: Sunil Chopra and Peter Meindl

  2. Summary of the last lecture • Understand the role of network design in a supply chain • Identify factors influencing supply chain network design decisions • Develop a framework for making network design decisions • Use optimization for facility location and capacity allocation decisions

  3. 6 Designing Global Supply Chain Networks

  4. Learning Objectives • Identify factors that need to be included in total cost when making global sourcing decisions. • Define uncertainties that are particularly relevant when designing global supply chains. • Explain different strategies that may be used to mitigate risk in global supply chains. • Understand decision tree methodologies used to evaluate supply chain design decisions under uncertainty.

  5. Impact of Globalization on Supply Chain Networks • Opportunities to simultaneously grow revenues and decrease costs • Accompanied by significant additional risk • Difference between success and failure often ability to incorporate suitable risk mitigation into supply chain design • Uncertainty of demand and price drives the value of building flexible production capacity

  6. Impact of Globalization on Supply Chain Networks Table 6-1

  7. The Offshoring Decision: Total Cost • Comparative advantage in global supply chains • Quantify the benefits of offshore production along with the reasons • Two reasons offshoring fails • Focusing exclusively on unit cost rather than total cost • Ignoring critical risk factors

  8. The Offshoring Decision: Total Cost Table 6-2

  9. The Offshoring Decision: Total Cost Table 6-2

  10. The Offshoring Decision: Total Cost • A global supply chain with offshoring increases the length and duration of information, product, and cash flows • The complexity and cost of managing the supply chain can be significantly higher than anticipated • Quantify factors and track them over time • Big challenges with offshoring is increased risk and its potential impact on cost

More Related