Question

Given that supply chain decisions rely on accurate data records to generate MRP scheduling of production and purchase orders, demonstrate the ability to calculate and distribute product withing the distribution network.

Determine the best and most efficient distribution requirements system (DRP) that will maximize delivery time to the customer and minimize on-hand inventory at all locations.

Explain the reasons and conditions for inventory safety stock, shelf life, and stock rotation.

Determine locations of constraints and apply line of balance models to the manufacturing process.

The question is listed above and the three listed below are the enablers. Have to discuss each one or how would you do it. There is no more information. It's basically what would you do in Global Supply Chain Resource Planning and Management.

Answer 1

Best and most efficient distribution requirements system (DRP) in Global Supply Chain Resource Planning and Management:

Ideally in such a global world, a pull system would be the best mechanism for replenishing inventory in distribution centers. But if unplanned about unexpected pulls, it can cause chaos in the supply chain. (DRP) It is a methodological process to about more efficient delivery of goods by determining- which goods, quantities, and locations are required to meet forecasted demand. The objective is to minimize shortages and reduce the costs of ordering, transporting, and holding goods

GLOVIA G2’s DRP module is one of the widely used models by large Conglomerates, globally in various industries as it gives the companies flexibility to plan the correct levels of inventory at respective locations and automates the replenishment process, hence reducing costs and creating efficiencies at the distribution level.

GLOVIA G2 analyses shipment history to calculate the standard deviation, and coefficient of variation, and apply that to the demand forecasting. Transport lead time, manufacturing lead time and the manufacturing cycle. Then the system calculates a time-phased plan for each Distribution Center where re-order point and re-order quantity (ROP & ROQ) vary over time. During planning, based on known demands, inventory, and supplies in transit for the DC, the planning engines will predict when a ROP will be triggered and generate new Computer Planned Transfer Orders (CPTO). This combination of planning and a Kanban/ or pull system, yields greater operational efficiencies and improved processes for Distribution Requirements Planning.

Reasons and conditions for inventory safety stock, shelf life, and stock rotation are to achieve following benefits:

• Lower cycle inventory has

Shorter average flow time

Lower working capital requirements

Lower inventory holding costs

• Cycle inventory is held to

Take advantage of economies of scale

Reduce costs in the supply chain

• to allow different stages to purchase product in lot sizes that minimize the sum of material, ordering, and holding costs
• Ideally, cycle inventory decisions should consider costs across the entire supply chain
• Minimizing over all Ordering cost

Buyer time

Transportation costs

Receiving costs

Other costs