supply chain management

location decision

it helps in minimizing the overall cost and time required for transportation

Globalization of Operations

is becoming one of the crucial aspects ofthe business’s location decision.

Product and Industry

: The nature of the product impacts the facility’s location. For instance, poultry farms areestablishedon the outskirts of the city

Availability of Resources

: The plant must be located close to the suppliers of the raw materials. This is because, it minimizesthe transportation cost, time and overall cost of production.

Proximity to Consumers:

: The organizations offering services may choose to locate facilities near their target customers.Thus, providing them with an advantage over similar service providers.

Climate Conditions

Manufacturing of some products demands specific climatic conditions. For this reason, industries are set up in areas where suitable climatic condition exists

Proximity to Market

The companies producing customized or assemble products are located near their target market. Consequently, it reduces the time required for product assembly and delivery.

Regulatory and Policy Issues:

The political policies differ in different geographical boundaries. So, the organizationspreferlocations inside open economies having favorable policies.

Labor Supply

: Before installing the plant, companies assess the availability of skilled labor. Also, they ensure theavailabilityof basic necessities for the employee’s survival.

Free Trade Zones

: Free Trade Zones are areas in which one can conduct business free from customs duty. Thus, itisanessential factor when selecting asite location.

Infrastructure

: Before the installation, industries must assess the availability of infrastructure in that region. It may include connectivity via Rail, Roads, Air and Sea.

Taxes

: The tax rates vary within and across the regions. This factor directly impacts the organizations

Capacity Planning

is about making sure your business has the available resources to meet consumer demand. Capacity planning allows you to determine your current capacity. Or, the maximum you can take on and still get thejobdoneinthe usual period of time.

Product Capacity Planning

would be how you ensure you have enough cheese, sauce, and dough to create all the pizzas customers order each day

Workforce Capacity Planning

An efficient use of capacity means that you have just enough of each kind of worker at any one time so that everyone is busy and there are no lulls in the process, such as delivery staff waiting on pizzas due to a shortage of cooks on that particular day

Tool Capacity Planning

focuses on the tangible equipment you need to be able to complete the production process.

Production Capacity

This reflects the peak production you can deliver at any one time, assuming maximum efficiency of product, workforce, andtoolcapacities

Design Capacity

is considered the ideal production situation. It is the maximum output possible with production equipment and resources over a period of time.

Effective Capacity

considers product mix, changes in product mix, anticipated maintenance, raw material disruptions and labor issues such as absenteeism and fatigue. Effective capacity is the maximum capacity possible given the influence of these factors

Actual Output

is the rate of production

Lead Capacity Strategy

adds capacity prior to demand. It allows managers to increase capacity ahead of demand so that service levels can be met when demand hits.

Lag Capacity Strategy

means a company adds capacity only after demand has occurred.

Match Capacity Strategy

is an incremental increase in capacity that happens as volume increases. In ideal situationsitcan help balance the cost of increasing capacity and act as a “pay as you go” strategy

Ethical Sourcing

To establish a common ground for further discussion, it is necessary to first define and describe the origins of the terms ethical and sustainable sourcing or “That which attempts to take into account the public consequences of organizational buyingorbring about positive social change through organizational buying behavior.

Utilitarianism

is an ethical theory that determines right from wrong by focusing on outcomes.

Rights & Duties

Rights are moral claims of individuals recognized by society. Duties are moral debts or obligations of individuals recognized by society. “Each person has a duty to uphold or respect another person's rights”

Fair Trade

is a recent sourcing activity that is becoming increasingly popular as firms seek to demonstrate a more ethical approach to purchasing.

Sustainable Sourcing

— it includes green purchasing, someformoffinancial benefit, as well as aspects of ethical sourcing.

Green Purchasing

is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as waste reduction, hazardous material elimination, recycling, remanufacturing and material reuse.

Lead Manufacturing

is a comprehensive production management system and there are two major features of lean manufacturing that distinguishes it from production are: first, increased efficiency through the reduction of waste and error; and second, reduced carrying cost of inventories achieved by manufacturing in small “batches”

Agile

At its most basic level, an agile supply chain is one that emphasizes flexibility.

Accurate Information

The mantra of agile supply chain management is “You can’t control what you can’t see.” Supply chain agility requires you to collect and act on the most relevant ant timely information.

Comprehensive Control

Agile supply chains strive to understand the entire supply chain. This includes the key enablers and inputs neededtoproduce the best possible customer experience.

Rapid Decision-Making

While no one can possibly predict all disruptions, having processes and technology in place that enable quick decision-making is key to building an agile supply chain, meaning it can respond quickly to the unexpected and seize new opportunities despite the uncertainty inherent in the space.

Characteristics of Agile Supply Chain

1. Accurate Information

2. Comprehensive Control

3. Rapid Decision-making