Emergency lead times

In non-supported catalysts, most active centers (>95%) become encased within the growing polymer particle and thereby become unavailable for additional polymer formation. This results in low catalyst activity. A major improvement occurred in the early 1970s when supported Ziegler-Natta catalysts began to emerge. Leading polyethylene producers of the time (Shell, Solvay Cie, Hoechst, Mitsui and Montecatini Edison) developed many of these catalysts (8). Of course, most have morphed into present-day companies, such as LyondellBasell and INEOS. 

To compete on the basis of flexibility, a firm develops the ability to respond quickly to the customer needs. This flexibility can exist in many different areas if the customer is willing to pay for the flexibility. For example, a firm may be flexible in the quantity that a customer can order from them. Many distributors compete in this way, by buying in large quantities from a manufacturer and then distributing in smaller amounts to their customers. Or a firm may be flexible in its lead times to produce orders for customers. It may have a standard order lead time and a rush order lead time if it is an emergency for the customer. 

Our ability to deliver with short lead-times resulted in additional business, including the return of a large customer we had lost earlier in the year. Once in control, we were able to reserve some capacity for emergency 24-hour and 48-hour orders. This brought even more satisfied customers and enhanced profits, because our customers were willing to pay a premium for this service. 

Emergencies have lead times. A lead time is the time between awareness of an emergency or impending emergency and an emergency s actual occurrence. For some there is reasonable time to act and prevent some losses. For other emergencies there is little or no time to act before the emergency is underway. 

Step 2, Response A response occurs when there is an actual emergency or an imminent one. Many emergency plans begin prior to an actual emergency. For example, weather forecasts often predict possible weather threats. The amoimtof lead time will vary. However, there is a need to create company or public alerts and to pre-position personnel and equipment so a response, if needed, is effective. 

As firms began to consider the need for such a connective system, attention moved to how the company can extend its S OP activities from manufacturing facilities and warehouses to suppliers, distributors, and key customers. The historical tendency was to keep the focus on a make-to-stock orientation and use S OP as the link between internal operations and finished goods in the warehouse. Suppliers were only considered in terms of lead times, filling bills of material (BOMs), and their ability to respond to emergency needs. In the new environment, the attention moves to how suppliers can play a key role in the overall efficiency of the interenterprise network and reduce the bullwhip effect. 

Service level required A customer placing an emergency order expects a high level of product availability. This customer may go elsewhere if all parts of the order are not immediately available. This is not apt to happen in the case of the construction order, for which a long lead time is likely. 

Demand uncertainty reflects the uncertainty of customer demand for a product. Implied demand uncertainty, in contrast, is the resulting uncertainty for only the portion of the demand that the supply chain plans to satisfy based on the attributes the customer desires. For example, a firm supplying only emergency orders for a product will face a higher implied demand uncertainty than a firm that supplies the same product with a long lead time, as the second firm has an opportunity to fulfill the orders evenly over the long lead time. 

Short lead time, readily available for emergency repairs. 

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