Supply Chain Planning Modelling and Analytics - Desklib

This report discusses the importance of forecasting techniques, supply network evaluation, location planning models, inventory control and material planning in supply chain management. It also evaluates the implementation of Enterprise Resource Planning (ERP) system in business operations and mentions big data techniques.

SUPPLY CHAIN
PLANNING
MODELLING AND
ANALYTICS(Task 1)

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Forecasting techniques...........................................................................................................3
Evaluate the appropriateness of supply networks..................................................................4
Apply a range of location planning models for different entities in the supply network of your
organisation............................................................................................................................5
Apply a range of inventory control and management approaches to your organisation........7
Concept of material planning and material management.......................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals.................................................................................................................9

INTRODUCTION
Supply chain management is process that includes flow of goods and services. It helps the
management to deliver the good to the end users. There is direct impact of Covid-19 on working
of business organisations (Ivanov and Dolgui, 2020). This report is based on 3663 group, a
logistics specialist company that provides frozen items to high street restaurants. The report is
based on working effectively to manage the logistics and supply chain of an organisation. The
techniques of supply chain management are discussed. The necessity of supply chain
management is discussed. The use of inventory control approaches is also part of this report. the
concepts of Material Planning and Control are integral part of this report. The qualitative and
quantitative approaches to supply chain operations. The relationship between aggregate and
hierarchical planning is also part of this report. The implementation of Enterprise Resource
Planning (ERP) system in business operations is evaluated. In the end of this report big data is
techniques are mentioned.
MAIN BODY
Forecasting techniques
Forecasting plays a vital role in knowing about the future task. It is seen that supply chain
management is integral process in an organisation. There is requirement of forecasting so that the
company is prepared for the future and able to take precautionary measures. It is analysed that
there is need to evaluate the past data in an effective manner so that they are able to take
decisions for future. A business enterprise always tries to analyse the future in a systematic
manner (Mönch, Uzsoy and Fowler, 2018). They discover various aspects so that special
attention is given to them. It must be recognised that process of forecasting involves an element
of guess work that is done by manager so that they are able to make preparation and future
reports. It is necessary to constantly monitor and device the scores so that long time period was
can be formulated The various techniques used by 3663 groups are as follows:
Survey method: Survey is conducted in order to gather the information from the
concerned people. It is necessary to know the view of them so that effective and suitable actions
can be taken. It is necessary to take both quantitative as well as qualitative information from this
method. Demand of the product can also be rejected with the help of survey method. It is seen
that it is a costly and time taking method so there is a sample size selected which will answer the

questions. It is important to ask the relevant questions and take consent of the sample asking
them such questions.
Regression analysis: It is meant to disclose the relative movement of two or more
interrelated series. It estimates and analysis change in one variable and its result on the other
variable. It is seen that there are economic changes in the nation and that impacts the business at
the same time. It is seen that covid-19 a direct impact on the sales of the organisation and that
also influences the supply chain management of the company. It is important to check the
negative or positive relation among the changes on the organisation and its success.
Evaluate the appropriateness of supply networks
A supply network can be defined as pattern of temporal and special process. It is carried out
to facilitate the distribution links and add value to the manufacturing process in order to provide
best to the customers (Jain and et.al., 2017). The task is to deliver the product to the customers
on time. A supply network is developed by connecting multiple supply chain so that the

company is able to deliver value to the organisation as well as customers. A supply chain
network used by company and its supplier is formulated to supply specific product and services.
It is seen that 3663 group uses supply network in order to provide the frozen items in an effective
manner. It is seen that after covid-19 the sales have come down so the company is trying to reach
more and more customers and provide them there frozen items.
It is necessary to evaluate the effectiveness of the supply chain networks. It is important to
collect the data of past years and quickly take decisions. It is seen that business environment
keeps on changing so it is required to know about the change and provide different ways to deal
with the changes.
Supply network evaluation is a 360-degree review that enables us to know about the health
of supply chain and logistics management practices. It is evaluated to know the strengths as well
as weakness of the performance of the company regarding supply chain management. It helps
3663 group to know that they are unable to reach the potential customers. It is necessary for them
to directly deal with the customers and involves the agent that has ability to convince the
customer (Olivares-Aguila and ElMaraghy, 2021). The future growth of the organisation is in the
hand of supply chain network. The use of analysis helps the 3663 group to know about the
weaknesses so that the company is able to take desirable measures. The 3663 group must now
standardise the process of managing the supply chain participants. So that they are able to
achieve their goals and objectives successfully. The 3663 group must also bring transparency so
that effective decisions can be taken. Inventory management will also benefit the 3663 group so
that they are able to again earn good amount of profit. It is necessary to note that there is need of
working effectively.
Apply a range of location planning models for different entities in the supply network of your
organisation
The various models that support location planning for supply network are discussed below:
Factor Rating Method: It is seen that there is need of various factors that will help to
select location. In the first step 3663 group will identify the factors that are important and must
be considered. Then in the next step it is important to rate the according to the importance. The
factors that are higher in rating are the prominent factors. Then select appropriate location
according to the factors that are discussed (Qazi and et.al., 2018). The one getting high score is
analysed in order to select appropriate location.

Weighted Factor Rating Method: It is a method in which qualitative as well as
quantitative factors are considered. It is important to know that weights are given to them
according to their importance and then score is calculated. It is called a preference Matrix and
the site with highest weight score is selected as the best voice. It is necessary to note that the
weighted score of the place that is high is the best decision that must be taken by the business
organisation.
Break even analysis: It is another method that is used by business organisations. It is
seen that in a point in operations there is need to check the total revenue. It is seen that break
even analysis the point where total revenue is equal to total cost (Dubey and et.al., 2021). It is
important to calculate break even so that a business organisation is able to know the best
location. The place is best economic viable and helpful to identify the range of production
volume so that organisation is able to achieve goals and objectives.

Apply a range of inventory control and management approaches to your organisation.
The inventory management that is being used by 3663 group are as follows:
The pull strategy: This is strategies used by the business organisation in order to pull
product. It is used why business organisations that want to keep their cost low. It is seen that if
there is changes in the demand then the strategy faces some issue in managing the output levels
along with that they may result in stalking out. It is seen that the company can use this strategy if
they want to lower down their prices and achieve success by serving the customers need
effectively.
The push strategy: In this technique of inventory management by organisation expect
and forecasts the demand for the product. It can be done by 3663 group in order to forecast the
demand after covid-19. The organisation uses the strategy to lower down their operating cost and
create more products at a time (Govindan and et.al., 2018). It is seen that the risk involved in
managing the inventory is comparatively low from the pull strategy along with that it is seen that
it demands for the product does not meet the forecast level then there is excess inventory left
with the organisation and then they have to drive down the cost of product.
Just in time strategy: This is strategy is element from both the push and pull strategy. The
manufacturers decide the raw materials and creation of product according to demand. It is
important to analyse the reality of market and work effectively in the situation.
Concept of material planning and material management
Material planning refers to the process of defining in a scientific way the determination of
requirement of raw material and other components and the things which are needed in the
production activities. It is considered as one of the subsystem that influence the activity of
overall planning. Influence of the activity and material planning is done by several factors, these
factors can be further classified as macro and Micro systems.
Macro factors - example of macro factors which effect planning of material our business cycles,
price trends an import policies full.
Micro factors- Some of the example of micro factors that affect the overall material planning are
rejection rates, inventory levels, working capital, lead times, plant capacity utilization and
delegation of powers and communication.
The techniques of material planning used in the 3663 groupare discussed below

Bills of material explosion – Material management is planned by aiming add determination of
the end products. Fast sightedness and forecasting I possible this to achieve the end result.
Forecasting can be done with the help of various techniques, these techniques are applicable in
forecasting the demand. Two types of techniques are moving average method and exponential
smoothing and time series. After the forecast off demand material planning processes started.
Demand forecast helps in ascertaining the requirement of various kinds of materials. Explosion
chart is used through bills of materials to fulfil the above purpose. The engineering and planning
department issues the preparation of builds of material.
An explosion chart is a matrix form off a series of bills of the group materials. Planning of
material is generally done in the beginning of the quarter and on a quarterly basis. It is quite
normal to find in the organization that's some materials are in excess supply where is some are in
short supply. This wrong for forecasting can be rectified with the help of quarterly planning and
estimation.
Past consumption analysis- this technique helps in estimating the consumption with the help of
the past data available. The past data is critically analyzed and the future data is projected on the
basis of that. Such made with the help of Average end mean consumption.
These are considered as statistical tools that are very effective in absorbing the
fluctuations of stock in consumption of indirect and direct materials.
CONCLUSION
From the above report it can be concluded that forecasting technique is essential in the
organisation as it helps the organisation in several ways. Management of supply network
helps the business in increasing productivity and effectively. Further the inventory control
and management process is necessary as it eliminates the factor of wastage in the business.
Material planning is also important as it helps in saving the resources of the company, the
business produces the exact amount of raw materials. They can be managed with the help of
analysing the past data as well. The past data makes the manager aware about the future
requirements of the business.

REFERENCES
Books and Journals
Dubey and et.al., 2021. Empirical investigation of data analytics capability and organizational
flexibility as complements to supply chain resilience. International Journal of
Production Research, 59(1), pp.110-128.
Govindan and et.al., 2018. Big data analytics and application for logistics and supply chain
management.
Ivanov, D. and Dolgui, A., 2020. Viability of intertwined supply networks: extending the supply
chain resilience angles towards survivability. A position paper motivated by COVID-19
outbreak. International Journal of Production Research, 58(10), pp.2904-2915.
Jain and et.al., 2017. Supply chain resilience: model development and empirical
analysis. International Journal of Production Research, 55(22), pp.6779-6800.
Mönch, L., Uzsoy, R. and Fowler, J.W., 2018. A survey of semiconductor supply chain models
part I: semiconductor supply chains, strategic network design, and supply chain
simulation. International Journal of Production Research, 56(13), pp.4524-4545.
Olivares-Aguila, J. and ElMaraghy, W., 2021. System dynamics modelling for supply chain
disruptions. International Journal of Production Research, 59(6), pp.1757-1775.
Qazi and et.al., 2018. Supply chain risk network management: A Bayesian belief network and
expected utility based approach for managing supply chain risks. International Journal
of Production Economics, 196, pp.24-42.