What Is The Right Supply Chain For Your Product? Essay

1041 Words Dec 2nd, 2015 null Page
“What is the Right Supply Chain for Your Product?”, “Aligning Supply Chain Strategies with Product Uncertainties”, and “Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain.” Three similar articles with subtle differences, when read in the above order, they almost appear to be a continuation of the previous article.
“What is the Right Supply Chain for Your Product?” by Marshall L. Fisher, focuses on four main topics and their relationship to each other. The first two topics relate to a type of product, functional or innovative. In this example, functional products have a predictable demand and a long product life cycle. They also have low product variety, low average margins, low percentage of forced end of season markdowns, and low stock-out rates. Functional products are also characterized as having long lead times. Conversely, innovative products have an unpredictable demand and short product life cycle. They also have high product variety, high average margins, considerably higher percentage of stock out rates, as well as a higher average percentage of forced end of season markdowns. And unlike functional products, innovative products have considerably shorter lead times.
The supply chains discussed in this article are physically efficient and market-responsive supply chains. Much like the differences in products described in the previous paragraph, these two supply chains are comprised of contradictory characteristics. A…

Related Documents