Supply Chain Managment

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Part 1 Introduction to Supply Chain Management

Write of 600–800

Identify at least 5 of the risks or challenges today of the global sourcing concept.

    • Discuss how a firm’s global sourcing manager may address tow of these.
  • Given these challenges, what are at least 3 advantages of sourcing products or product components from global sources versus just a firm’s own countries’ suppliers?

Part 2 Demand-Based vs. Forecast-Based Planning

Complete Template and 250–300 words

Task 1: Use the provided MRP template to develop a 6-week manufacturing resource plan (MRP), given the following information:

Download the MRP Template

MRP Template for Phase 2 Individual Project

3 weeks earlier

2 weeks earlier

1 week earlier

1

2

3

4

5

6

Production Required by end of week:

100

100

100

200

200

200

Total As needed at 1 per unit

When must As be ordered, and how many: 1 week lead time

Total Bs needed at 2/unit

When must Bs be ordered, and how many: 2 week lead time

Total Cs needed at 0.5/unit

When must Cs be ordered, and how many: 3 week lead time

  • The finished product being produced requires 1 of component A, 2 of component B, and 0.5 of component C.
  • The production plan is to have in inventory, ready for sale, 100 units by the end of each of weeks 1–3 and 200 of the finished units by the end of weeks 4–6.
  • All the components A, B, and C must be available at the beginning of the planned production week.
  • Lead times from the vendors for A, B, and C are 1, 2, and 3 weeks respectively
  • Production takes 1 week.

(For example, you would want necessary quantities of A,B, and C in the factory on Monday morning so that the finished units would be available for sale at the end of that same week.)

Task2: At the bottom of this template, describe the importance of accurate lead time and bill of material information to have an accurate MRP.

Part 3 Purchasing and Procurement

400–600 words, plus a PowerPoint presentation of 15–20 slides, including 100–125 words of speaker notes. This should be a professional presentation, limited in verbiage and balanced in graphics.

One of the reasons you were recently hired as the manager of global supply chain was the continuing problems the firm faces with a number of its important suppliers of raw materials. Typical issues were late deliveries, wrong deliveries, and damaged or substandard goods, all leading to your firm’s production plans being severely hurt. This in turn hurt your firm’s customer service reputation. The chief executive officer (CEO) has heard about something called a supplier certification program and asked you to create a PowerPoint presentation to give to all of your suppliers.

The following are high-level points that should be addressed in the presentation:

  • Lean and Six Sigma systems, as you want to be assured that they are actively improving their own processes
  • Receiving inspection program at their plant
  • Supplier certificatory they do with their suppliers
  • Quality programs
  • Quality statistics they gather
  • Inspection procedures and frequencies
  • Capacity
  • Production scheduling
  • Calibration program

Part 4 Physical Material Handling and Distribution

1250 – 1500 words

Develop a Supply Chain Management Strategy Proposal, specifically dealing with the following scenario. The scenario centers around the choice of a location for a new distribution center for your firm’s insulated cooler products. As you know, these are large and bulky and take up a lot of room in either a truck (from a warehouse to retail stores or in a warehouse itself). Your factory is in the Chicago area, and you do not want to move it, nor outsource the manufacturing. Your product is used year round in the southern states and southwest, and in the summer months on the east coast.

  1. How would you determine the ideal warehouse location? What factors would go into your choice of locations? Describe at least 3 factors.
  2. Describe the pros and cons of setting up your own trucking fleet to take product from your factory to the new warehouse vs. using common carriers.
  3. Given the high dollar value of your inventory, how can you ensure accuracy of both purchased raw material inventory (in your factory) as well as of the finished product itself in your factory and at the new warehouse?
  4. How will planning for equipment capacity needs been done if you use a forecast-based system versus a demand management (JIT) -based system?
  5. Create a finished goods production plan MRP (and component B procurement plan) given the following:
    • Production cycle time = 1 month
    • Each finished good item requires 2 Part B’s; part B has a 1 month procurement lead time
    • Beginning finished product inventory is 1,000
    • Forecasted sales are as follows:
      • Month 1: 1,000
      • Month 2: 1,100
      • Month 3: 1,150
      • Month 4: 1,200
      • Month 5: 1,200
      • Month 6: 1,300
    • Safety Stock: On the first day of each month, you want to have that month’s sales already in inventory
    • Capacity of the plant is 1,300 units
    • Download the blank MRP template to complete your MRP.

Lastly –

What would be some key performance indicators that you as the supply chain manager should be measured against in your strategic plan?

  • Keep in mind that you are a consumer products firm trying to improve customer service levels, reduce excess inventories, and so forth. Identify at least 5 of these indicators, showing the formula to calculate them and the source of the information. Describe why you picked these indicators.
  • For each one, if the indicator showed you being worse than your target, what areas of your SCM system would you look at for possible remedies?
  • Now assume the plant capacity is only 1,100 per month, but your forecast remains as above. Describe in words, not numbers, how this would change your production plan if your planned safety stock levels are still to be maintained.
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