W5 O&S

Trade-off (danh doi) & risks

Supply chain decisions often invole trade-off, how do these choice affect risk exposure

Lean	Agile
Low cost, low invenrory	flexible
Risk of disruption	Higher operating cost

 

In-house	Outsourcing
Better control	Saves cost, expertise access
Higher fixed-cost, less scalability (mo rong0	Risk of loss of control, IP. Leakage, dependency

 

Single sourcing	Multisourcing
simplicity	Resilience- ben vung
Risk of supplier failure	Risk of complexity, inconsistent (k dong deu) quality

 

Near sourcing	Off sourcing
Lower cost
Risk of long lead times, geopolitical issues, currency volatility (ty gia)

Sources of supply chain disruption

a)    External risks

-       Natural disasters

-       Geopolitical events (chien tranh thuong mai – trade war, sanctions)

-       Pandemics (covid 19 -> gobal shutdowns)

b)    Internal risks

-       Supplier failure or bankruptcy (pha san)

-       Quality issues in production

-       IT system outages

c)    Strategic risks

-       Over-reliance on single supplier

-       Aggressive cost-cutting (lean system)

-       Outsourcing critical processes

Risk analysis & contingency (ung pho) planning process

B1: indentify risks

B1a: external risks

B1b: internal risks

B2: Analyse&prioritze risks Xác suất xảy ra, Mức độ ảnh hưởng → Risk probability matrix

B3: Plan risk responses

 

What is inventory management, why is it important?

APICS defines inventory as those stocks or items used to support production (raw materials and work-in process/WIPitams) supporting MRO activities (maintenance repair. and operating supples and customer service (finishad goods and spare parts)

 

Inventory decisions drive other business activities like warehousing & transportation.

 

Main Points:

What? Raw materials, WIP, finished goods, MRO;

Why? Buffer against uncertainty, economies of scale, decoupling processes;

Trade-oft: Inventory as a cost vs. cushion. APICS defines inventory as those stocks or items used to support production (raw materials and work-in procass/WIPitams) supporting MRO activities (maintenance repair. and operating supples and customer service (finishad goods and spare parts)

 

Trade-off: inventory as a cost vs cushion (cuu canh)

 

"Many managers have a love-hate relationship with inventory."

It helps to limit the risk of stockouts and inaccurate records, allow for efficient order fulfillment, it "enables smooth operations and buffers against uncertainty."

 

But too much inventory...

•Ties up capital: Money spent on inventory cant be used elsewhere:

•Consumes space: Storage could be used more productively:

•Risk of obsolescence (loi thoi): Especially in fast-moving industries.

 

Inventory Types

Cycle stock: tồn kho theo chu kỳ đặt hàng

Safety stock: tồn kho an toàn (phòng rủi ro) “save it for a rainy day”

Transportation / Pipeline stock: hàng đang vận chuyển

Hedge (Speculative) stock: mua trước do dự đoán tăng giá

Anticipation stock: chuẩn bị cho mùa cao điểm

Smoothing stock: ổn định sản xuất

Stockout: hết hàng

Inventory costs:

OỎderings + holding/carrying +managing the inventory/ sgortage or stock out costs

 

a)    orderings + holding/carrying costs

Ordering	Carrying
Administrative costs (hanh chinh) • Costs of receiving an order (wages) • Conducting a credit check (kiem tra tin dung) • Verifying inventory availability • Entering orders into the system (nhap don vao he thong) • Preparing invoices, payment • Receiving and inspection • Shipping costs per order only it its Fixed	•Obsolescence (Spoilage) (hu hong/loi thoi) • Shrinkage (hao hut) • Storage & Handling • Insurance (bao hiem) • Taxes • Interest

B)   the saw tooth profile ( mo hinh rang cua)

When to order: Reorder point (ROP)

In a “continous review system” Reorder point is the minimum unit quantity that a company should have, hay noi canh khac “when the inventory level reaches the point where there are just enough units left to meet requirements until the next order arrives”

 ROP = d x L + SS

d= constant demand per period (in days) => based on ur historical demand or forecast

L= leadtime (indays) => typically given by ur supplier

SS = safety stock (not always calculated; more so when demand uncertain – k chac chan)

How much to order: Economic order quantity (EOQ)

The EOQ deals with calculating the proper order size with respect to 2 costs:

-       The cost of carring/holding the inventory

-       The cost of ordering the inventory

EOQ determines the order quantity at which the sum of carrying costs and ordering costs is minimized, other way is the carrying and ordering costs are equal