Question

In supply chain network analysis and design, discuss how do location of plant, suppliers and customers play critical role?

Answer 1

Plant location refers to determining location for a plant for maximum operating economy and effectiveness, as location plays vitel role as nearness to market and nearness to supplier is considered.

Nearness to Supplier is considered as an important factor as due to it the transportation cost for bringing raw material is reduced and in the same way location of plant nearness to market also plays vitel role because to deliver the finished goods to customer on time is also important in the business.

If we implement Just in time method in manufacturing unit, then collaboration with suppliers is considered most imprortant aspect. As and when we receive an order from customer then we have to place an order to our supplier for raw material and supplier gives us on time delivery and due to it,we can produce the goods on time and deliver to customer at right time and right quantity

Customer always plays an important role wheather we implement push or pull system manufacturing. As the demand is forcasted or order is recived by customer and it becames essential part of Supply Chan Management. Customer also gives feedback of product. So Cycle from Customer to Manufacturer and Manufacturer to Supplier goes on and So SIPOC Model is implemented.

S= Supplier

I= Inputs

P= Process

O= Output

C= Customer

So as above I had tried to explained that the supplychain all the elements from Supplier to Customer are important