First, establish demand

Information on changes in demand normally is communicated through the supply chain as a series of sequential orders passed from one function to another. Such information flow forces sequential decision making, allowing only those decisions to be made that are based on existing data at the location a...

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Published inManufacturing systems Vol. 15; no. 8; pp. 68 - 72
Main Author Sherman, Richard J
Format Journal Article
LanguageEnglish
Published 01.08.1997
Online AccessGet full text
ISSN0748-948X

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Abstract Information on changes in demand normally is communicated through the supply chain as a series of sequential orders passed from one function to another. Such information flow forces sequential decision making, allowing only those decisions to be made that are based on existing data at the location and time at which the data is received. Time delays add to operational response and often distort the data. Thus, each part of the supply chain is out of sync with the others. Objectives often conflict and performance measurements disagree. Decisions in the supply chain must be made at three different levels: 1. strategic, 2. tactical, and 3. operational. Manufacturing and supplier sites are the most time-sensitive locations to "out of sync" planning and logistics. Without synchronization to demand from response-sensitive locations higher up the chain, forecasts are speculative and subject to significant levels of uncertainty due to the high level of volatility closer to the point of sale.
AbstractList Information on changes in demand normally is communicated through the supply chain as a series of sequential orders passed from one function to another. Such information flow forces sequential decision making, allowing only those decisions to be made that are based on existing data at the location and time at which the data is received. Time delays add to operational response and often distort the data. Thus, each part of the supply chain is out of sync with the others. Objectives often conflict and performance measurements disagree. Decisions in the supply chain must be made at three different levels: 1. strategic, 2. tactical, and 3. operational. Manufacturing and supplier sites are the most time-sensitive locations to "out of sync" planning and logistics. Without synchronization to demand from response-sensitive locations higher up the chain, forecasts are speculative and subject to significant levels of uncertainty due to the high level of volatility closer to the point of sale.
Author Sherman, Richard J
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