Decision-Making Problems in Supply Chain Management

Supply Chain Management
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Table of Contents
Introduction........................................................................................................................................................... 1
Background........................................................................................................................................................... 1
Data collection Method.......................................................................................................................................... 1
Analysis and Evaluation......................................................................................................................................... 7
Conclusion........................................................................................................................................................... 17

Introduction
The working of this report will discuss about the decision-making problems of facility-
level supply chain management system, by using excel calculation. The supply chain
management is a process where the supplier delivers the product to the customers. The purpose
here is to find some issues that occurred in supply chain management, in the past few years.
Analyzing the supply chain process model can include three stages like calculating the
seasonality wise analysis (annual demand), economical wise order quality analysis (EOQ), and
cycle service level (supplier selection) analysis of supply chain management system. The
objective of a decision-making problem is to understand the process of supply chain model,
analyzing the modelling techniques and optimizing the supply chain model. Additionally,
calculating the critical radio of the cost value to find the data warehouse aspects of supply chain
model. At the same time, the cost time, the service level will be interpreted and each stage of the
supply chain process will be investigated.
Background
The supply chain management of the inventory analysis has been implementing five
years of supply chain data analysis. The initial stage of the analysis can calculate the forecast of
the supply chain, which can find the deseasonality, estimating the demand on deseasonality and
seasonalization factor of 5 years. The annual demand table has been containing the year, month
period, time period and demand of the fields. Economic order quality contains fields on demand,
order cost, holding rate, and the unit cost of the fields. Supplier selection table is used for
calculating the values of critical radio of the total unit cost simultaneously to find how many
days are required for the storage of contractor warehouse.
Data collection Method
Forecasting demand:
The annual forecasting demand calculation can be used for the process of predicting a future
event. It can easily find the underlying basis of all the business decision such as:
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 Production
 Inventory
 Personnel demand values
 Facilities
To find the values of Horizons values of the forecasting can follow the below mentioned three
ways:
 Short-range forecast
 Medium range forecast
 Long range forecast
Short range forecast:
 To calculate the excel value for up to 1 year, generally less the 3 months.
 Calculating the short-range forecast that can include the values of the purchasing value,
to analyze the job scheduling time, workforce level, job assignments, and production
levels. Forecasting usually employs different methodologies and longer term forecasting
values are more accurate.
Medium range forecast:
 To find the medium range forecast calculating the values of 3 months to 3 years.
 The supply chain modelling of the facility level can analyze the sales and production
planning, budgeting of the forecast demand value of the supply chain modelling
management.
Long range forecast
 By calculating the 5 years values of the forecasting annual values of supply chain
management of the demand, the value is 52720.
 The long range forecasting can analyze the data values on new product planning, facility
location, research and development of the forecast demand.
Types of forecasts
1. Economic forecasts
The economic forecasts can specify the economic growth, inflation rate, money
supply based on economic data trends of the product interventions.
2. Demographic forecasts
The demographic forecasting can be used for population aggregate and
disaggregate for the forecasts demand.
3. Technical forecasts
The Technical forecasting can be used for predicting the technological change of
the supply chain forecasts demand.
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