What Is the Appropriate Supply Chain Strategy and Product Design Strategy for Each Product Type? o Each requires a different supply chain strategy o Development chain has to deal with the differing level of demand uncertainty
11-6 What Is the Appropriate Supply Chain Strategy and Product Design Strategy for Each Product Type? ⚫ Each requires a different supply chain strategy ⚫ Development chain has to deal with the differing level of demand uncertainty
Framework for Matching product Design and Supply Chain Strategies Product Product introduction architecture frequency Modular H PC/fashion Cell phone engines.Pull systems Push systems Dynamic pricing · Pasta/ diapers · Furniture/ tires · Push systen Push-pull Integral Demand H uncertainty Supply chain -Push- -Pull strategy FIGURE 11-3: The impact of demand uncertainty and product introduction frequency on product design and supply chain strategy
11-7 Framework for Matching Product Design and Supply Chain Strategies FIGURE 11-3: The impact of demand uncertainty and product introduction frequency on product design and supply chain strategy
11.2 Design for Logistics(DFL Product and process design that help to control logistics costs and increase service levels o Economic packaging and transportation o Concurrent and parallel processing Standardization
11-8 11.2 Design for Logistics (DFL) ⚫ Product and process design that help to control logistics costs and increase service levels ⚫ Economic packaging and transportation ⚫ Concurrent and parallel processing ⚫ Standardization
Economic Transportation and Storage o Design products so that they can be efficiently packed and stored o Design packaging so that products can be consolidated at cross docking points Design products to efficiently utilize retail space
11-9 Economic Transportation and Storage ⚫ Design products so that they can be efficiently packed and stored ⚫ Design packaging so that products can be consolidated at cross docking points ⚫ Design products to efficiently utilize retail space
Examples o Ikea o Worlds largest furniture retailer o 131 stores in 21 countries o Large stores, centralized manufacturing compactly and efficiently packed products ● Rubbermaid e Clear Classic food containers -designed to fit 14x14 Wa-Mart shelves 11-10
11-10 Examples ⚫ Ikea ⚫ World’s largest furniture retailer ⚫ 131 stores in 21 countries ⚫ Large stores, centralized manufacturing, compactly and efficiently packed products ⚫ Rubbermaid ⚫ Clear Classic food containers - designed to fit 14x14” Wal-Mart shelves