Tailored sourcing product-based

In some instances, new products have uncertain demand, whereas well-established products have more stable demand. Product-based tailored sourcing may be implemented with a flexible facility focusing on new products, and efficient facilities focusing on the well-established prodncts. This is often the case in the pharmacentical indnstry, for instance. 

In volume-based tailored sourcing, the predictable part of a product s demand is produced at an efficient facility, whereas the uncertain portion is produced at a flexible facility. Benetton provides an example of volume-based tailored sourcing. Benetton required retailers to commit to about 65 percent of their orders about seven months before the start of the sales season. Benetton subcontracted production of this portion without uncertainty to low-cost sources that had long lead times of several months. For the other 35 percent, Benetton allowed retailers to commit orders much closer to or even after the start of the selling season. All uncertainty was concentrated in this portion of the order. Benetton produced this portion of the order in a plant it owned that was very flexible. Production at the Benetton plant was more expensive than production by the subcontractor. However, the plant could produce with a lead time of weeks, whereas subcontractors had a lead time of several months. A combination of the two sources allowed Benetton to reduce its inventories while incurring a high cost of production for only a fraction of its d and. This allowed it to increase profits. 

A more sophisticated approach to postponement separates all demand into base load and variation. The base load is manufactured using the low-cost method without postponement, and only the variation is made using postponement. This more sophisticated form of tailored sourcing is more complex to implement but can be valuable even when all products being postponed have similar demand, as we illustrate next (see spreadsheet Table 13-4). Consider the scenario in which Benetton is seUing four colors, and the forecast demand for each color is normally distributed, with a mean of fi = 1,(XX) and a standard deviation of o- = 5(X). We have observed earlier that the use of complete postponement (every sweater is postponed) in this instance increases profits at Benetton from 94,576 to 98,092. 

While the previous list summarizes most of the currently used biodegradable polymers as well as some new materials, and while it describes the state-of-the-art at this time, it is certainly not exhaustive. There are many new products being developed as well as novel modifications of the polymers described with in the chapter. Ideally, polymers can be chosen and tailored for a specific application based on their physical and chemical properties. We have shown properties that are crucial to the function of the polymer in question and also give sources where additional information can be found. 

Still, the supply of blo-based polymer components. In particular the supply of diamines from biological sources for economic production, remains a challenge [6, 12, 13]. Approaching this Issue, systems and synthetic metabolic engineering has meanwhile tailored the prominent industrial workhorses Escherichia coli [14, 15] and Corynebacterium glutamicum [16-18] for de novo biosynthesis of promising diamines from renewable resources. This chapter highlights recent achievements in this field In the context of a future and sustainable bioeconomy. 

Allon, Gad, and Jan A. Van Mieghem. Global Dual Sourcing Tailored Base-Surge Allocation to Near and Offshore Production. Management Science (January 2010) 56, 110-124. Cachon, Gerard R, and Marshall L. Fisher. Campbell Soup s Continuous Product Replenishment Program Evaluation and... 

Most companies need to tailor their supplier portfolio based on a variety of product and market characteristics. For example, Zara uses responsive sources out of Europe to produce trendy products that must be in stores quickly to meet customer demand. In contrast, basics such as white T-shirts are sourced out of lower-cost facilities in Asia. Table 15-6 identifies factors that favor the selection of a responsive or low-cost source. 

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