Production and Operation Managements Supply Chain Management and The Bullwhip Effect Prof.JIANG Zhibin Dr.GENG Na Department of Industrial Engineering Management Shanghai Jiao Tong University
Production and Operation Managements Prof. JIANG Zhibin Dr. GENG Na Department of Industrial Engineering & Management Shanghai Jiao Tong University Supply Chain Management and The Bullwhip Effect
® Contents Supply chain management ·Bullwhip effect ·Beer games
Contents • Supply chain management • Bullwhip effect • Beer games
熟 Supply Chain Management What is Supply Chain Management (SCM)? / SCM deals with the management of materials, information and financial flows in a network consisting of suppliers,manufacturers,distributors,and customer- Hau-Lee,the head of Stanford Supply Chain Forum (1999) 分销架道 皆月摩务 函售分公元 丽分冬 客户 供应商 隔两
Supply Chain Management What is Supply Chain Management (SCM)? SCM deals with the management of materials, information and financial flows in a network consisting of suppliers, manufacturers, distributors, and customerHau-Lee, the head of Stanford Supply Chain Forum (1999)
Supply Chain Management Manage what? management of materials,information and financial flows a network consisting of suppliers,manufacturers,distributors,and customers within the enterprise and outside the firm's allied business partners How? efficiently integrate suppliers,manufactures,warehouses,and stores synchronizing the flow of marketplace products,services,and information. Objective produce and distribute at the right quantities,to the right locations,and at right time minimize system wide costs while satisfying service level requirements highly competitive,customer-enriching supply system to create unique,individualized sources of customer value
Supply Chain Management Manage what? • management of materials, information and financial flows • a network consisting of suppliers, manufacturers, distributors, and customers • within the enterprise and outside the firm’s allied business partners How? • efficiently integrate suppliers, manufactures, warehouses, and stores • synchronizing the flow of marketplace products, services, and information. Objective • produce and distribute at the right quantities, to the right locations, and at right time • minimize system wide costs while satisfying service level requirements • highly competitive, customer-enriching supply system • to create unique, individualized sources of customer value
Bullwhip effect -Executive a at Procter Gamble (P&G) studied the replenishment patterns for one of their best selling products (diapers). Consumer sales Retailer orders to wholesalers 20 2 50 Kuuonb apO 10 5 5 0 ELLLLEELLLtt 0 Time Time Wholesaler orders to manufacturer Manufacturer orders to supplier 20 20 15 1 10 5 5 0 0 Time Time
Bullwhip effect Executive at Procter & Gamble (P&G) studied the replenishment patterns for one of their best selling products (diapers)