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OverviewProcument | Production | Distribution | Supplier | Manufacturer | Retailer | Transportation Activity | Manufacturing Activity | Warehousing activity |
Distribution SystemRetailers | Distributor/ Warehouse | Cross Docking | Multipick- Multidrop | Internet |
Flow ManagementMTO | MTS | Low reactivity | High reactivity | Low risk/ cost | Risk of non sold product| Inventory cost | Long customer lead time | Zero customer lead time |
Holding inventory costCost | Financial cost | Physical storage cost | Obsolescence cost |
Supply Chain with Single Unit
| | SC decision & teoporal horizon| | Procument | Productio. | Distribution | Long term | Supply Chain design | Mid term | Supply chain planning | Short term | Production Planning & flow management | Very Short term | Detailed management of physical flow |
Inventory?Economic of scale stocks | Seasonal stock | Safety Stock | Speculative stock & Merchandising stock |
Pressure of inventorySmall inventory | Large inventory | WACC | Customer Service | Storage & handling cost | Ordering cost | Insurance cost | Set up cost | Taxes | Labor or equipment utilization | | | Transportation cost | | | Payment to suppliers |
Inventory performance measure
| | How to choose Push or Pull
Push & Pull ComparisonPush Strategy | Pull Strategy | Base on Historical Data | Base on Customer Order | High level inventory & transportation cost HIGH | Make final production quick (push & pull combine) | Long time require for manufactoring process | Flexible supply in dynamic market | Target Cost reduction |
VMI, CMI, CPFR| | VMI | CMI | CPFR | Disturbance of pro orrder | Customer follow S | C can edit/ submit orderr | Order generated jointly | Visibility | Sharing level | Storeself | Role of customer | Information provider | Data are shared| Invisible to supplier | Joint inventory |
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