Supply Chain Network and System Design

Supply chain strategy

long-range plan for the system

Supply chian network design

design of the network structure and business process

IT design

enables data sharing, communication, and process synchronization

Business process

structured set of activities or steps with specified outcomes

Theory of Constraints

every sytem has at least one constraint

Objective of TOC

identify constraint and restructure org. to eliminate impact

Bottleneck

A system cannot produce more than its constraining activity

System variation

every system has variation, which is a problem

Capacity utilization

indicates how much of capacity is actually being used

Vertical integration

ownership of upstream suppliers and downstream customers

Enterprise Resource Planning ERP

fully integrated computer-based technology used by organizations to manage resources throughout the supply chain