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The Supply Chain

Market research data scheduling information Engineering and design data Order flow and cash flow. Supplier. Customer. Ideas and design to satisfy end customer Material flow Credit flow. Inventory. Supplier. Customer. Manufacturer. Inventory. Inventory. Supplier. Customer.

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The Supply Chain

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  1. Market research data scheduling information Engineering and design data Order flow and cash flow Supplier Customer Ideas and design to satisfy end customer Material flow Credit flow Inventory Supplier Customer Manufacturer Inventory Inventory Supplier Customer Distributor Inventory The Supply Chain

  2. Supply Chain Management • Facilities, functions, activities for producing & delivering product or service from supplier to customer • Production planning • Identifying facility locations • Distributing product • Selecting suppliers • Purchasing materials • Managing inventories

  3. Facilities • Plants • Warehouses • Distribution centers • Service centers • Retail operations

  4. Rail Truck Water Air Computer Mail Telephone In person Distribution

  5. The Transportation Model • Ship items at lowest cost • Sources have fixed supplies • Destinations have fixed demand

  6. Transportation Problem Grain Elevator Supply 1. Kansas City 150 2. Omaha 175 3. Des Moines 275 600 tons Mill Demand A. Chicago 200 B. St. Louis 100 C. Cincinnati 300 600 tons

  7. Network Of Routes 4 Des Moines (275) Chicago (200) 12 5 7 11 Omaha (175) Cincinnati (300) 11 10 6 Kansas City (150) St. Louis (100) 8

  8. Shipping Cost Table Mill Grain Chicago St. Louis Cincinnati Elevator Kansas City $6 $8 $10 Omaha 7 11 11 Des Moines 4 5 12

  9. The Transportation Tableau To Chicago St. Louis Cincinnati Supply From 6 8 10 150 Kansas City 7 11 11 175 Omaha 4 5 12 275 Des Moines Demand 200 100 300 600

  10. Solution For Grain Shipment Mill Elevator Chicago St. Louis Cincinnati Supply Shipped Kansas City 25 0 125 150 150 Omaha 0 0 175 175 175 Des Moines 175 100 0 275 275 Demand 200 100 300 600 Shipped 200 100 300 Cost 4525

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