Supply Chain

 The flashcards below were created by user Anonymous on FreezingBlue Flashcards. Lead time The time needed to respond to a customer order. Customer order decoupling point The point at which the customer takes ownership of a product. With McDonalds this is POS. With a custom made product, the decoupling point is probably at the beginning of construction. Make-to-stock firm that produces a fixed finished product with no customization. e.g. McDonald's, Little Ceasars Hot and Ready pizzas Assemble-to-order Preassembled modules are manufactured and customer selects which modules to include in the order. e.g. Dell computers Make-To-Order Production does not begin until the customer has placed an order. e.g. Boeing Engineer-to-order Customer commisions a new product to be designed. e.g. Government asks Northrop to build a new missle. Total average inventory The total dollar amount of raw materials, work-in-progress inventory, and finished goods. Inventory turn COGS/Average Inventory Value The amount of goods that have been sold divided by the amount of inventory on hand. This is measured over time. This is good for comparing to other firms, but not for performance. It is roughly the number of times that you have to restock all of your inventory at the current production rate. In other words it is a measure of lean manufacturing. Days-of-supply The inverse of inventory turn multiplied by number of days. This shows how many days worth of raw materials and WIP inventory a process has assuming no new raw materials. e.g. if there is an inventory turn of 6 for a year, then days-of-supply is equal to 1/6 of a year or 61 days. Throughput The long term average rate that items are flowing through the process. e.g. 20 cars are produced an hour Flow time How long it takes a product to go from raw materials to finished goods. e.g. from start to finish it takes 3 days to make a car. Little's law WIP inventory = Throughput rate x Flow time. Formula for calculating how much inventory you have on hand. Production process - Project layout Product is stationary e.g. a construction site. Production process - Workcenter AKA job shop Equipment with similar functions is grouped together. A product will move from one function group to another. e.g. One facility can do painting for a variety of products while another facility can smelt numerous types of ores Production process - Assembly line Discrete products are made by moving from worksation to workstation at a controlled rate. Production proccess - Manufacturing cell Each section of the facility can perform one specific function, but the sum of all parts at this facitlity can produce a single product. e.g. raw materials enter one end of the facility and finished goods come out of the other. Production process - Continuous process Similar to an assembly line but with a continuous product like liquid instead of a discrete process like an auto. Workstation cycle time The time between units comming off the end of the assembly line. How long each worker has to work on each product. AuthorAnonymous ID109436 Card SetSupply Chain DescriptionSupply chain midterm Updated2011-10-17T00:07:42Z Show Answers