Inputs into master schedule beginning inventory forecasts for each period customer orders Outputs production requirements projected inventory Hiring costs the costs themselves are not relevant rules about hiring maybe Proactive strategies involve demand options Reactive strategies involve capacity options Mixed strategies involve an element of each of these approaches Sale and operations planning makes intermediate range decisions to balance supply and demand integrating financial and operations planning It should be shared with supply partners Disaggregating the aggregative plan master production schedule ha info that is important to marketing in order to implement a production plan the aggregate plan must be disaggregated master production schedule covers the next 6 to 8 weeks aggregate plan can be broken down by units and percentages intermediate and aggregate planning Agg planning decisions define framework in which operating decisions will be made The master schedule is derived from agg planning To implement production plan app plan must be disaggregated It is included in the business planalong with long term pricing Yield management uses variable pricing to try to maximize revenue Prices reflect the current capacity available E Business E business the use of electronic technology to facilitate business transactions Involves interaction of different business organizations as well as the interaction of individuals with business organizations o internet buying and selling email order and shipment tracking and electronic data Apps interchange Use to promote their products or services and to provide information about them Two essential features of ebiz Website and order fulfillment Front end design customers Back end order fulfillment order processing billing inventory managemet warehousing packing shipping and deliver Issues that occur with internet selling are supply related The rate at which orders come in via the net greatly exceeds an organizations ability to fulfill them consequently companies outsource fulfillment INSERT ADVANTAGES PICTURE Using 3rd party fulfillment means losing control over fulfillment May result in fulfillers substituting their stands for the company the are serving and using fillers shipping price structure Alternative to outsourcing fulfillment form a strategic partnership with bricks and mortar company Quick way to jump start ecommerce biz Somewhere in the SC there has to be a bm facility B2B ebiz exchanges can improve SC visibility to trading partners from a single point of access facilitating the development of common standards and data formats for schedules product codes location codes and performance criteria Transportation ebiz focused Efficient hub for collaboration between shippers and transpiration provides translate customer shipment forecasts into more predictable demand for equipment and enabling carriers to deploy their equipment more effectively Logistics Includes The movement of materials services cash and information goods in a supply chain Movement within a facility part of production control Movement of materials must be to arrive at the appropriate destinations at the appropriate times Outgoing shipments Incoming shipments Traffic management Function handles schedules and decisions on shipping method and times taking into account costs of various alternative government regulations the need of the organization relative to quantities and timing and external factors such as potential shipping delays or disruptions construction strikes Computer tracking of shipments often helps to maintain knowledge of the current status of shipments as to provide up to date information on costs and schedules Information flow throughout the SC Fuels equipment parts tools lube office supplies etc The Importance of Transportation Transportation to and from facilities can represent as much as 25 of product cost Total transportation cost in the U S is over 10 of GDP The importance of transportation has grown with Increasing globalization of supply chains Growth in e commerce and the associated home delivery of products Rising fuel prices Modes of Transportation U S Data KEY POINTS from Modes of Transportation Truck is the dominant mode of freight transportation in the U S because of its flexibility Full truckload TL is cheaper but requires higher volumes Less than truckload LTL is consolidated with other shipments and takes longer Air is the fastest but costs the most High value but lightweight products are best suited for air transport e g some high tech products Rail and water are slow but cheap They are good for large heavy low value items over long distances 90 of coal and 67 of autos go by rail Water is the dominant mode for global trade Given the current high cost of fuel there s been a shift from trucking to intermodal rail plus truck in the U S According to a 2008 report by CIBC World Markets in Toronto since 2000 rising fuel prices have tripled the amount it costs to ship a 40 foot standard container from East Asia to the eastern seaboard of the U S Pallets Containers Allow shippers to unitize goods Can be moved by forklifts or pallet jacks 48 by 40 is most common in U S Different dimensions in mm are used in the E U and Asia Allow shippers to unitize goods Can be moved from ship to rail to truck intermodal Airtight stackable and lockable Most commonly 20 ft or 40 ft in length How to Decide Compare total costs and times including impact on inventory Logistics Terminology distribution etc Third Party Logistics 3PL The outsourcing of logistics management e g warehousing Reverse Logistics Closed Loop Supply Chain The backward flow of goods returned to the supply chain e g defective unsold recycled etc Radio Frequency Identification RFID A technology that uses tags to identify objects and that project information via radio waves to track goods in the supply chain Attached to pallets cases or individual items Provide unique id enabling business to identify track monitor or locate objects in SC within range of tag reader Use bar codes but don t require line of sight for reading Multiple tags can be read simultaneously and automatically Eliminates need for manual counting anc barcode scanning of goods at receiving docks in warehouse and on retail shelves Eliminates errors and greatly speeds up the process Reduce employee and customer theft Increase accuracy in warehouse picking assembly operations accuracy in dispensing drugs Costs tags affixing tags