JIAOTONG UNIVERSITY 96 Supply Chain Management Lecture 8 Value of Information Instructor(s) Prof.Jianjun Gao Department of Automation School of Electronic Information and Electrical Engineering SEIEE AU406
Supply Chain Management Instructor(s) SEIEE AU406 + - Value of Information Prof. Jianjun Gao Department of Automation School of Electronic Information and Electrical Engineering Lecture 8
Introduction Value of using any type of information technology Potential availability of more and more information throughout the supply chain Implications this availability on effective design and management of the integrated supply chain SEIEE AU406
+ - SEIEE AU406 Introduction Value of using any type of information technology Potential availability of more and more information throughout the supply chain Implications this availability on effective design and management of the integrated supply chain
Information Types Inventory levels Orders Production ■Delivery status SEIEE AU406
+ - SEIEE AU406 Information Types Inventory levels Orders Production Delivery status
More Information Helps reduce variability in the supply chain. a Helps suppliers make better forecasts, accounting for promotions and market changes. Enables the coordination of manufacturing and distribution systems and strategies. Enables retailers to better serve their customers by offering tools for locating desired items. Enables retailers to react and adapt to supply problems more rapidly. Enables lead time reductions. SEIEE AU406
+ - SEIEE AU406 More Information Helps reduce variability in the supply chain. Helps suppliers make better forecasts, accounting for promotions and market changes. Enables the coordination of manufacturing and distribution systems and strategies. Enables retailers to better serve their customers by offering tools for locating desired items. Enables retailers to react and adapt to supply problems more rapidly. Enables lead time reductions
Bullwhip Effect While customer demand for specific products does not vary much Inventory and back-order levels fluctuate considerably across their supply chain P&G's disposable diapers case Sales quite flat Distributor orders fluctuate more than retail sales Supplier orders fluctuate even more SEIEE AU406
+ - SEIEE AU406 Bullwhip Effect While customer demand for specific products does not vary much Inventory and back-order levels fluctuate considerably across their supply chain P&G’s disposable diapers case Sales quite flat Distributor orders fluctuate more than retail sales Supplier orders fluctuate even more