In: Mechanical Engineering
§Take any two sectors (cement/ automobiles/ oil/ bottled drinking water, garments/ furniture/ refrigerators, etc) and draw their distribution/supply networks.
§ Comment on their supply chain uncertainty
§ Identify 4 or more supply chain metrics of each sector’s supply chain.
Draw/Paste supply chain network of sector-1
Draw/Paste supply chain network of sector-2
Attribute |
Sector-1 |
Sector-2 |
Quantity of product needed in each lot |
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Response time that customers are willing to tolerate |
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Variety of products needed |
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Service level required |
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Desired rate of innovation in the product |
Supply Chain metrics Sector1 and 2
Sector 1 = Automobile/Automotive Industry
Sector 2= Bottled Drinking water
A.The quantity of product needed in each lot= 1) individual components are manufactured = 2) Multiple liters of water can be used depending on the tank capacity.
B.Response time= 1) It deals with high Economic Strategies, losing one customer with less response is a huge problem. 2) It can be compensated easily with other manufactured bottles easily.
C.Variety=1) even though after a systematic assembly the product is same, but alterations and adequate supply of various parts are required. 2) No routine, it's a complete routine work
D.Service= 1) Appropriate customer satisfaction and proper service is mandatory= 2) It doesn't matter much because it does not deal with High amount sales, so customers are easily available without service.
E.The desired rate of innovation= 1) It plays a crucial role as Innovation can be easily lead to production and profits. 2) We cannot exhibit a great innovation in this case, but if it does, it changes the production rate widely.
Comment on their supply chain uncertainty -
Supply chains in the automobile industry are highly vulnerable and suffer huge losses due to uncertainty and risk. Literature suggests that losses can be reduced if these uncertainties are managed properly. Researchers have evolved a four-step process of risk management. Assessment of risk in terms of its probability of occurrence and impact on supply chains is one of the four steps. The present work is an attempt to empirically estimate the probability of different uncertainties to occur and also to determine their impact on supply chains. The study involves tier 1 and tier 2 level companies which manufacturer and supply auto components to various supply chains. The results are expected to help the industry prepare itself to reduce the impact of such uncertainties and improve the performance.