Essay on Supply Chain Management

7311 Words Dec 24th, 2011 30 Pages
A. Analyze whether a Keiretsu network, a virtual company, a vertical integration, or a different supply chain strategy should be adopted. A Keiretsu network is a network of businesses that own stakes in one another as a means of mutual security, especially in Japan, and usually including large manufacturers and their suppliers of raw materials and components. There are two types of keiretsu: vertical and horizontal. Vertical keiretsu illustrates the organization and relationships within a company, for example all factors of production of a certain product are connected. A horizontal keiretsu shows relationships between entities and industries normally centered on a bank and trading company. The two are complexly woven together and …show more content…
It is one of the most commonly used Supply Chain Metrics. The calculation is a simple one; divide the annual cost of sales by the average inventory level. Example: Cost of Sales = $36,000,000. Average Inventory = $6,000,000. ($36,000,000 / $6,000,000) = 6 Inventory Turns. Inventory Turns can also be a moving number. Example: Rolling 12 Month Cost of Sales = $16,000,000. Current Inventory = $4,000,000 ($16,000,000 / $4,000,000) = 4 Inventory Turns. Projected Inventory Turns: Divide the "Total Cost of 12 Month Sales Plan" by the "Total Cost of Goal Inventory" Example: The Total Cost of 12 Month Sales Plan is $40,000,000. Total Cost of Goal Inventory = $8,000,000. ($40,000,000 / $8,000,000) = 5 Projected Turns. Turns can be viewed using Cost Value, Retail Value, or even in Units. Although results vary by industry, typical manufacturing companies may have 6 inventory turns per year. Fill Rate definitions and calculations can vary greatly. In the broadest sense, Fill Rate calculates the service level between 2 parties. It is usually a measure of shipping performance expressed as a percentage of the total order. Sample Fill Rate Metrics; Line Count Fill Rate, The amount of order lines shipped on the initial shipment versus the amount of lines ordered. This measure may or may not take into consideration the requested delivery date. SKU Fill Rate; the number of Stock Keeping Units ordered and shipped

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