Review on Article - What Is the Right Supply Chain for Your Products
Article by Marshall L.Fisher
• Marshall L.Fisher is the Stephen J.Heyman Professor of Operations and Information Management and co-director of the Fishman-Davidson Center for Service and Operations Management at the University of Pennsylvania’s Wharton School in Philadelphia. • His current research focuses on how to manage the supply of products with hard-to –predict demand.
Devising the Ideal Supply-Chain Strategy
• According to research by Marshall L.Fisher, before devising a supply chain, consider the nature of the demand for your products. • For example , product life cycle, demand predictability & patterns ,product variety & market standards for lead time & service. • …show more content…
- Reduce uncertainty – finding sources of new data - Avoid uncertainty – by cutting lead times & increasing the SC felxibility
Efficient Supply & Responsive Supply
Efficient Supply of Functional Products
• Consumer of functional products offer companies predictable demand in exchange for a good product and a reasonable price
• The best company win – suit to describe that most companies need efficient chains to supply them especially the products remain functional over time.
Responsive Supply of Innovative Products
- Hedge against the remaining residual uncertainty with buffers of inventory or excess capacity Eg – National Bicycle’s success – a good example of a responsive supply chain achieved through avoiding uncertainty Mass customization. For Sport Obermeyer’s , use accurate response approach ,which has cut the cost of both overproduction and under production in half – enough to increase profits by 60%.
Example Efficient Supply: Campbell Soup
• Campbell Soup has shown how manufactures and retailers can cooperate to cut costs throughout the system. • Campbell establishes electronic date interchange (EDI) links with retailers. • Retailers electronically inform the company of their demand for all Campbell products and of the level of inventories in their distribution centers. • Then Campbell uses the information to forecast the future demand and to determine which products require replenishment based on upper & lower