ELLEC COMP INC' Supply Chain Management

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ELLEC COMP INC.Supply Chain Management
Ferani Eva Zulvia (M9801808) Yuli Sri Afrianti
(M9801810) Kartika Akbaria (M9801811)
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Content of Presentation
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ABOUT ELECCOMP INC.
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Objective
HOW TO ACHIEVE THOSE OBJECTIVES??
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• PUSH-BASED SUPPLY CHAIN STRATEGY
• Make-to-stock environment
• Keep safety stocks
• Huge financial
• Shortage risk
• Based on long-term forecast
• PULL-BASED SUPPLY CHAIN STRATEGY
• Production and distribution are demand-driven
  (they are coordinated with true customer demand
  rather than forecasted demand)
• Make-to-order strategy
• Keep no stock at all

PROPOSED SCM DESIGN

• CHALLENGE
• Identify the location where the strategy switched
  from Push-based to Pull-based (Push-Pull
  boundary)
• HYBRID STRATEGY
• Push and Pull are combined simultaneously
• EFFECTS
• Safety stock reduced by 40 to 60 for same lead
  time
• Safety stock reduced by 30 for 50 lead time

CURRENT SCM DESIGN
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How to read the diagrams ?
Fig. 3-11
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Current safety stock
Objectives
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1st strategy
Optimized safety stock cost
Lead time???
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2nd strategy
Current situation Safety stock cost
74,100/yr Lead time 30 days
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1st strategy VS 2nd strategy
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MORE COMPLEX PRODUCT STRUCTURE
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Supply Chain Strategy Before Optimization
Safety Stock
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Supply Chain Strategy After Optimizing the
push-pull boundary
Safety Stock
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Eleccomp Achievement
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Trade-off between quoted lead time and safety
stock
Minimize cost
Minimize Lead time
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Integrating Inventory Positioning and Network
Design

• Product categories
• High-variability-low-volume products
• Low-variability-high-volume products
• Low-variability-low-volume products

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(No Transcript)
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QUESTIONS TO BE DISCUSSED
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Question No 1
NETWORK PLANNING
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Example firms requirements for its logistics
network change over time
Inventory cost
Minimize commitment time to the next stage
manufacturingcost
Increasing demand on the same time
Transportation cost
Many demand on the different commitment time/
different order places
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QUESTION NO. 2

• In network design project, all executives have to
  be involved in order to yield comprehensive
  decision for deriving better supply chain
  performance.

Marketing, operation, sales, HR are involved
mainly in this part
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Question number 6

• Truck load (TL) transportation rate structure is
  asymmetric ??

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Question number 8
Heuristic
Exact optimization
VS
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THANK YOU