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    supply chain factors

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    Hi I need help with these questions to understand better the supply chain management. Thanks

    1. What are the tradeoffs between the four supply chain entities - products, facilities, vehicles and routes?

    2. How do inventory levels relate to delivery schedules?

    3. How do inventory levels relate to operating costs and ability to meet demand?

    4. How do facility locations relate to transportation costs?

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    Solution Preview

    Question 1 is not very clear (what kind of tradeoffs?), but I will try to give you some ideas:

    Regarding supply chain management and product, we normally look at the complexity of the product and if the business model is a make to order or make to stock. The more complex the product the more complex the supply chain. Can we standardize as close to the end assembly as possible or is the product mix such that prevents much standardization at all? Built to stock requires excellent inventory planning. Built to order may require very short supplier lead times to meet the delivery deadline. This impacts both ...

    Solution Summary

    The author discusses the impact of major factors on the supply chain like inventory levels, delivery and supply transportation, and the location of facilities in terms of operating expense and the ability to meet demand.