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19 Cards in this Set
- Front
- Back
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3 Hierarchical Steps of Network Planning
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Network Design, Inventory Positioning, Resource Allocation
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Key Strategic Decisions of Network Design
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Number of Facilities, Location of each Facility, Size of each facility, allocating space for products in each facility, determining sourcing requirements, determining distribution strategies
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increasing the number of warehouses yields
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improvement in service level, increase in overhead and setup cost, increase in inventory cost, increase in inbound transportation cost, decrease in outbound transportation cost.
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3 Main Components of of Warehouse and DC costs
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handling costs, fixed costs, storage costs
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pull Strategy
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Make to Order. high variability/low volume products, positioning inventory at primary warehouses.
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Push Strategy
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Make to Stock. Low Variability/ high Volume, located at a secondary warehouse
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Having fewer DCs for cost structure
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high margin products, service not important or easy to ship, inventory expensive relative to transportation
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Having Many DCs for cost structure
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Low margin products, service very important, outbound transportation expensive relative to inbound
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Front End
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Resource Planning, Sales and Operations Planning, Demand management, Master Production Scheduling, Establishes overall Company direction
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Engine
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Detailed Material Planning, Detailed Capacity Planning
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Back end
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Shop floor systems, Supplier Systems
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MPC Classification Schema
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Flow, Repetitive, JIT, MRP, Project
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Customer Order Decoupling Points depending on manuf environment
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Make to Stock-Finished Goods, Assemble to Order- WIP, Make to Order- Raw Materials, Engineer to Order- Supplier
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Customer Order Decoupling Point Definition
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point at which demand changes from independent to dependent
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Make to Stock Environment
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key focus is maintenance of finished goods inventory, customer service is dependent on whether the item is in stock or not
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Assemble to Order Environment
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Key focus is to define the customers order in terms of alternative components and options, CONFIGURATION MANAGEMENT- can options be configured into a viable product, easier to manage demand for components than XYZ products
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Make/Engineer to Order Environment
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customer decoupling point is at raw materials or suppliers, key task of demand management is to coordinate information of customers orders to engineering,
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Chase Strategy
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production output is changed to chase sales
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Level Strategy
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Production is at a constant uniform rate of production.
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