SUPPLY CHAIN

Supply Chain



Table of contents

A- Supply Chian Strategy3

Definition of Keiretsu network:3

Why Keiretsu Network is the best one to adopt for this company?3

Why Keiretsu Network is picked over the other two Virtual Companies and Vertical Integration?4

B- Metrics, which can be used for measuring performance of the supply chain4

Definition of metrics:4

Lead Time, Percentage of rejected material and storage per year (Importance and their benefits to the company):5

C- Issues, which can complicate the development of an efficient, integrated supply chain6

Definitions:6

Local Optimization:6

Incentives:6

Large Lots:7

The way in which Local optimization, Incentives and Large Lots could benefit the organization:7

D- Concepts and Management8

Definitions:8

Lot Size Reduction:8

Standardization:8

Postponment:8

Recommended methods and concepts for effective management in an integrated supply chain9

E- Types of risks10

Definitions:10

Process:10

Control:10

Environmental:10

Actions, which must be taken for mitigating possible risk of the given areas11

F- Organization Structure and Components12

Recommended functional organizational structure for the manufacturing facility12

Purpose:13

Facilities:13

Production and Inventory Control:13

Quality Assurance Control:14

Manufacturing:14

Design:14

Industrial Engineering:15

Process Analysis:15

G- Strategic Operation Management Decisons15

Whether the company should adopt a consumer-focused mass customization process or not16

H- Manufacturin Facilities17

References19

Supply Chain

A- Supply Chian Strategy

After assessing the numerous strategies of supply chain as well as the investor group's requirements, the strategy that is recommended is the implementation of a Keiretsu network. Through the implementation of Keiretsu network the investor group would not just own the facility of production but would even have the opportunity of investing in or / and own supplies for ensuring the minimal costs.

Definition of Keiretsu network:

The Keiretsu network unites the advantages of utilizing few suppliers like suppliers who entail a significant commitment to the investor group (buyer) and much probable of having a better understanding of the end customer and manufacturer's broad objectives. It offers predictable delivery and inventory schedule, an assured structure of price in addition to clear performance and quality standards. An environment that is stable like such an intimate cooperation amid the manufacturer and the supplier could direct to reductions in costs, quality improvements, and continual product development (Miltenburg, 2005).

Why Keiretsu Network is the best one to adopt for this company?

For the investor group the Keiretsu network would be the best choice as it is partially a vertical integration strategy, partially a collaboration strategy and partially a strategy of making purchases from few suppliers.

Why Keiretsu Network is picked over the other two Virtual Companies and Vertical Integration?

As mentioned above the Keiretsu network has the vertical integration strategy as its component, and the manufacturer through vertical integration possess the capability of actually buying a supplier or producing supplies, which were formerly purchased. Benefits of this will be inventory scheduling and reduction, adherence to quality standards, and cost reductions. The strategy of utilizing a number of suppliers and using them in against one another is an action plan, which is best utilized when the maintenance of long term link is not an aim with this strategy and the products are commodities. The reason why Keiretsu Network strategy is picked over Virtual Companies strategy is that the vitural companies strategy depends on an array of supplier links for offering service when ...