POM - J. Galván Ch. 12: Supply -Chain Management SUMMARY PRODUCTION AND OPERATIONS MANAGEMENT
BASIC POINTS HOW CAN WE MANAGE SUPPLIES AND END PRODUCTS? • Meaning of supplychainmanagement • Elements: • Purchasing • Production control • Distribution • Purchasingfunction. Definition and strategies • Makebuy • Centralize • Cooperate - Compete • Fewsuppliers - Manysuppliers • Keiretsunetwork • Vertical integration • Virtual company • Distribution • Inventorymeasures and SC performance • SC dynamics • Negotiationstrategies • cost-basedpricemodel • market-basedpricemodel • competitivebidding • Materialsmanagement
Underwhatconditionsmight a firm decide toorganizeitsprocurementfunction as a materialsmanagementfunction? As a supplymanagementfunction? As a sourcemanagementfunction? • What can theprocurementfunction do toimplementjust-in-time techniqueswithsuppliers? • Whatinformationdoespurchasingreceivefromotherfunctionalareas of thefirm? • Howdoes a traditionaladversarialrelationshipwithsupplierschangewhen a firmmakes a decisiontomovetoJust-in-time deliveries? • Whatreservations do suppliershaveabout JIT purchasing? • Discussonthepotentialstrategies of thepurchasingfunction in relationwithsuppliers QUESTIONS (I)
Discuss the objectives of purchasing management and its role in materials management. How does it help in reducing the inventory costs? • Getting products to customers, obtaining and managing raw materials, and packaging finished products are all activities of • procurement. • Logistics • production. • materials management. QUESTIONS (II)
Whatif • ASSIGNMENT: • You manage a factory in Madrid producing wooden tables • Supplied with wood by local producers • Distribution of final product throughout Europe • Distribution points: One warehouse per country, 10 in Spain • How would you organize the supply chain?
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