Supply chain regularity

Additionally, the physical maximum inventory determined by physical storage capacity should be applied in exceptional months specifically for the first planning month if actual inventories to be considered in the plan are higher than the maximum bandwidth inventory. Minimum and maximum inventory boundaries are regular components in standard supply chain planning models (see for example Chen et al. 2003, p. 1881). 

The only way to avoid this is by strict analysis of the supply chain from the customer order to final product delivery. Definition of the optimized (theoretical) process and sequential work towards a high service level approach allow the identification of gaps, and of opportunities which might not always be the cheapest (ship versus train versus plane) but could be the most effective way to reduce capital costs and shorten planning scope - an important aspect, especially in volatile customer markets with long production processes on the (chemical) supplier side. As in the case of CIP, this needs clear parameters, KPIs, commitment from all players, and regular tracking. The most important parameters are the lead time for all products, optimal lot sizes, replenishment points, and safety inventories. 

The rigorous management of the number of SKUs reinforces this approach structured programs often result in a 20 to 30percent SKU reduction potential and improved focus, and reduce the complexity of the entire supply chain. A further key to success is to hold sales and marketing accountable and incentivized for forecast accuracy, and to keep regular track of it. 

Quality control in the upstream supply chain is part of our supplier approval system and regular supplier auditing. The applied control systems are based, as within our own factory premises on the HACCP systems (Hazard Analysis on Critical Control Points). These quality control systems have been elaborated for each individual raw material. It is our objective to source our raw materials as far as possible from approved suppliers these are suppliers who are able to guarantee the qualities we require. 

This model reflects a physics perspective, however this model might not fit a regular supply chain design since objective function employs a second degree penalty for unit distance travelled. However, gravity location model can give insight for potential location areas. Every model is an abstraction of reality that comes with assumptions. This model is no exception. This model does not take into account the physical features of location areas, i.e. mountainous or not, proximity to labor force or required infrastructure etc. 

VMI parameters are aligned and regularly reviewed by company and the supply chain partner to ensure suggested order meets business requirements. 

It is applied the same supply chain strategic approach for new products or regular products. 

Product classification is reviewed on a regular basis (every 6 months) or whenever needed to ensure the right supply chain strategy is in place. 

This chapter explains how to use author s website to perform regular (e.g., annually) assessments in light of DDSC, and also provides practical examples of opportunities identified after applying the proposed methodology in a global CPG company. A framework is also presented to support the development of annual supply chain strategy to support company s progress towards DDSC concepts. 

Regular assessment of current capability pipeline inside the supply chain organization. 

Establishes a regular rhythm in the supply chain decreases variability from uncertainty about schedules... 

Milk run A transportation link in the supply chain characterized by regularly scheduled shipments to one or more points. By combining shipments, more frequent shipments are economically feasible. The milk run lowers the incremental cost of filling an order, enabling continuous flow in the supply chain. 

From this point of view, one of the most important tasks of supply chain management is to minimize, sometimes to avoid adverse effects caused by uncertainty in a supply chain to ensure the regularity of material flow, enhance flexibility as well as certainty, and reduce costs. To achieve those goals, optimizing the supply chain program plays a profound role in supply chain management. 

Knowledge-based models (Piramuthu 2005 Choy et al. 2002) are well-suited in situations where the base supply chain has been established and inclusion of a limited number of units needs to be regularly reassessed. 

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