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Assignment on Supply Chain PDF

   

Added on  2021-06-17

6 Pages1330 Words44 Views
Supply Chain1Supply Chain.NameInstitutionTutorCourseCity/StateDate

Supply Chain2IntroductionUtility can be defined the satisfaction one receives from using a good or a service. Utility can be difficult to measure but economists can use indirect means to quantify utility like, a customer's economic choices. There are four types of utility and each require different types of information to ensure smooth operations. The following are three types of utility.Place utility is simply making your products readily and conveniently available to your potential clients(Scerbinski 2009, p. 295). In business marketing, a place can mean the convenience of your distributionor sales products. Logistics generates place utility basically by transportation and creates new market boundaries that increases the economic value of the product (Christopher 2016). For example, if Mac computers are transported from their manufacturing plant to the location of the demand. The information required is attained from excessive up-to-date market research to determine the demand forthe product before moving it (Choudhary, Nayak, Malik, & Singh 2018, p. 45). The market boundary isexpanded by place utility. This ensures competition, which leads to lower prices and increased product availability in the market.On time utility, Products should not only be available where they are required but also when they are required. This is time utility (Scerbinski 2009, p. 295). Logistics create time utility by proper inventory management, good placement of those products and of course, transportation (Christopher 2016). Thereis an immense economic advantage added to the product if it is available at a specific time as demandedby the client. The information required is a detailed data of all the products that are frequently demanded and their location. For example, highly advertised products are made available to customers at the exact time it was rescheduled to be availed. This is usually done by keeping a strict inventory of the products and keeping them close to the store.Quantity utility is defined as the sum of products consumed by a customer to satisfy their needs. The

Supply Chain3total utility usually increases when the number of goods consumed increases. Logistics increases quantity utility by inventory management, storage and transportation. A business keeps accounts of their products that are most consumed, through inventory control, the business can then ensure that more of that product is available in time to satisfy that demand. To ensure the economic stability of the product, a business uses form utility to make an improvement to the product to keep the customers interested (Choudhary, Nayak, Malik, & Singh 2018, p. 45).Metrics for Measuring Supply Chain Performance.There are several ways to measure the supply chain performance. Measuring this will assists in identifying weak performance, determining performance, increasing employee motivation (Laihonen, & Pekkola 2016, p. 5607). Below are just a few metrics for measurement.On-time delivery commit- This measures the number of times the company has managed to deliver the right products to their customer in the time committed to the clients (Tortorella, Miorando & Marodin 2017, p. 98). Same is done on the supply side by measuring the percentages of goods received in time. Once this is done, one can then look at the data to try to deduce any sections that waste time. Another ismanufacturing time cycle, which is the amount of time taken to produce a finished product from the time the production order is released.Next, supplier quality- As extensively explained by Sukwadi, Wee, & Yang (2013, p.297), when raw materials are tracked down from all over the world, it sometimes takes time for those raw materials reach the manufacturing plant. Any sort of mishap will lead to a reduced supplier quality. By looking atscrap, rework and inventory costs, one can easily calculate the cost of poor supply quality.Finally, overall equipment efficiency (OEE)- In a manufacturing plant, most obvious causes of operational inefficiency are downtime losses, speed losses, reduced yields and defects (Akyuz & Erkan

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