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    Coordination in A Supply Chain: Supply Chain Management: Strategy, Planning, and Operation, 5/e

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    Coordination in A Supply Chain: Supply Chain Management: Strategy, Planning, and Operation, 5/e

    Uploaded by

    Md. Rezaul Islam Tushar
    61 views7 pages

    Original Title

    chapter10 SCM

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    61 views7 pages

    Coordination in A Supply Chain: Supply Chain Management: Strategy, Planning, and Operation, 5/e

    Uploaded by

    Md. Rezaul Islam Tushar

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Chapter 10

    Coordination in a Supply Chain

    Copyright © 2013 Dorling Kindersley (India) Pvt.


    Ltd.
    Authors: Sunil Chopra, Peter Meindl and D. V. Kalra Supply Chain Management: Strategy,
    Planning, and Operation, 5/e
    Learning Objectives

    •Describe supply chain coordination and the bullwhip effect, and their

    Copyright © 2013 Dorling Kindersley (India) Pvt.


    impact on supply chain performance.

    •Identify obstacles to coordination in a supply chain.

    •Discuss managerial levers that help achieve coordination in a supply


    chain.

    Ltd.
    Authors: Sunil Chopra, Peter Meindl and D. V. Kalra Supply Chain Management: Strategy,
    Planning, and Operation, 5/e
    Supply Chain Coordination & Lack of supply chain
    coordination

    Supply chain coordination – all stages of the chain


    take actions that are aligned and increase total supply chain

    Copyright © 2013 Dorling Kindersley (India) Pvt.


    surplus

    Requires that each stage share information and take into account
    the effects of its actions on the other stages

    •Lack of coordination results when:


    Information moving between stages is
    delayed or distorted

    Ltd.
    Objectives of different stages conflict
    Authors: Sunil Chopra, Peter Meindl and D. V. Kalra Supply Chain Management: Strategy,
    Planning, and Operation, 5/e
    Bullwhip Effect

    • Fluctuations in orders increase as they move up


    the supply chain from retailers to wholesalers to

    Copyright © 2013 Dorling Kindersley (India) Pvt.


    manufacturers to suppliers

    • Distorts demand information within the supply


    chain

    • Results from a loss of supply chain coordination

    Ltd.
    Authors: Sunil Chopra, Peter Meindl and D. V. Kalra Supply Chain Management: Strategy,
    Planning, and Operation, 5/e
    Demand at Different Stages

    Copyright © 2013 Dorling Kindersley (India) Pvt.


    Ltd.
    Figure 10-1
    Authors: Sunil Chopra, Peter Meindl and D. V. Kalra Supply Chain Management: Strategy,
    Planning, and Operation, 5/e
    The Effect on Performance of lack of coordination

    •Supply chain lacks of coordination if, each stage optimizes only its local objective
    and total profits

    Copyright © 2013 Dorling Kindersley (India) Pvt.


    •Lack of Performance measures include-
     Manufacturing cost
     Inventory cost
     Replenishment lead time
     Transportation cost
     Labor cost for shipping and receiving
     Level of product availability

    Ltd.
     Relationships across the supply chain

    Authors: Sunil Chopra, Peter Meindl and D. V. Kalra Supply Chain Management: Strategy,
    Planning, and Operation, 5/e
    The Effect on Performance

    Performance Impact of the Lack of


    Measure Coordination

    Copyright © 2013 Dorling Kindersley (India) Pvt.


    Manufacturing cost Increases
    Inventory cost Increases
    Replenishment lead time Increases
    Transportation cost Increases
    Shipping and receiving cost Increases
    Level of product availability Decreases
    Profitability Decreases

    Ltd.
     Table 10-1

    Authors: Sunil Chopra, Peter Meindl and D. V. Kalra Supply Chain Management: Strategy,
    Planning, and Operation, 5/e

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