Supply Chain Management (1),Chapter Two,Learning Objectives,The goals of SCMThe stages of SCMThe Bullwhip Effect and Beer GameThe Development of SCM ErasThe Principles of SCMcase analysis,The Goals of SCM,Three goals of SCM:(1) to reduce inventory(2) to increase the speed of transactions with real-time data exchange(3) to increase revenue,What is Optimization?,Optimization means to organize all relevant activities for the purpose of minimizing the total cost of providing the consumer with the value required. This implies the elimination or minimization of all unproductive activities and activities that do not provide or provide less value added. The optimization is to be assured on the entire process of providing the product or service instead of on only a part of it.,Phases of SCM,Five stages of SCM:(1) Plan: good or service meet the needs(2) develop(3) Make(4) deliver(5) return,Bullwhip Effect,中文：牛鞭效应,Information Distortions and the “Bullwhip Effect”,The Bullwhip Effect in Action,Production,Sales growth volatility,Production growth volatility,Reasons for Bullwhip Effect,Inventory is insurance against supply chain uncertaintiesSupply chain management substitutes information for inventory,Reduced Bullwhip Effect for Durables,In the view of bullwhip effect, can you find ways to solve this problem to ensure the effective and efficient SCM?,Beer Game,Home work,Customer customize customization,Evolution of Operations and Supply Chain Management,Craft productionprocess of handcrafting products or services for individual customersDivision of labordividing a job into a series of small tasks each performed by a different workerInterchangeable partsstandardization of parts initially as replacement parts; enabled mass production,1-15,Evolution of Operations and Supply Chain Management,Scientific managementsystematic analysis of work methodsMass productionhigh-volume production of a standardized product for a mass marketLean productionadaptation of mass production that prizes quality and flexibility,1-16,Historical Events in Operations Management,Historical Events in Operations Management (cont.),Historical Events in Operations Management (cont.),Historical Events in Operations Management (cont.),Supply Chain Evolution (1800s),Division/specialization of laborInterchangeable partsRailroads, electricity, communications,Mass Production Era (1900-1973),Moving assembly linesScientific management methodsOperations research techniques,Lean Manufacturing Era (1974-1995),Increased global competitionImproved flexibility and quality controlSix-Sigma QC, JIT, TQM,Mass Customization Era (1996-today),Better information engineering Internet, wireless communications, B2B e-commerceIntegrate internal systems with external partners,Im Next?,!,2.2 Principles of Supply Chain Management,1. Segment customers based on the service needs,2. Customize the logistics network to service and profitability,3. Listen to market signals for best resource allocation,4. Speed conversion of product,5. Reduce the total cost of owning materials and services,6. Develop a supply chain-wide technology strategy,7. Adopt channel-spanning performance measures,Summary,Goals of the SCMBullwhip EffectPrinciples of SCM,Terms,1. 大规模生产时期2. 精益生产时期3. 六西格玛质量控制时期4 准时制库存5 全面质量管理安全库存,Mass production EraLean Manufacturing EraSix-Sigma quality controlJust-in-time inventoryTotal quality managementSafe stock,Assignment (2),Amazon.com: An E-Business 本次作业以小组为单位完成，最后每小组提交一份书面答卷，要求为打印稿，全部问题答案应在2页内完成,并在最后签署小组成员姓名。截止日期：2010年9月26日,Questions:What advantages does selling books via the Internet provide over traditional bookstores? Are there any disadvantages to selling via the Internet?Does Amazon realize its SCM goals? Briefly Explain it.Should Amazon stock every book it sells? From the perspective of 7 principles of SCM, which principles does the Amazons practice best illustrate? （Amazon 的做法阐释了哪些原则？）,For what products does the e-commerce channel offer the greatest advantage? What characterizes these products?If YOUR TEAM were the members of the board of directors （董事会） of the traditional bookseller Barnes and Noble, Would you integrate e-commerce channel into your current supply chain or manage them as two independent channels? How could you use the two channels to gain maximum advantage?,