Internet Based Supply Chain Strategies

Internet Based make out orbit Strategies David Simchi-Levi Professor of engineer Systems Massachusetts Institute of Technology Tel: 617-253-6160 E-mail: dslevi@mit.edu Outline return train kinetics Supply chain of mountains Integration A new Supply Chain Paradigm E-Business Strategies Business-to-Consumer Strategic Pricing Business-to-Business ©Copyright 2002 D. Simchi-Levi  man-made lakes Books Designing and Managing The Supply Chain Publisher: McGraw-Hill, 1999 The Logic of Logistics Publisher: Springer, 1997 Articles The Effect of e-Business on Supply Chain Management, Working Paper, MIT, April 2001. By David Simchi-Levi (MIT) and Edith Simchi-Levi (LogicTools). ©Copyright 2002 D. Simchi-Levi The Dynamics of the Supply Chain Order Size customer Customer Demand Demand allocator Orders Distributor Orders retail merchant Orders Retailer Orders turnout Plan Production Plan Time Source: Tom Mc Guffry, Electronic Commerce and look on Chain Management, 1998 ©Copyright 2002 D. Simchi-Levi The Dynamics of the Supply Chain Order Size Customer Customer Demand Demand Production Plan Production Plan Time Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998 ©Copyright 2002 D. Simchi-Levi We Conclude: In Traditional Supply durance….

Order Variability is amplified up the supply chain; upstream echelons face higher variability. What you see is not what they face. ©Copyright 2002 D. Simchi-Levi The Bullwhip Effect P&G Retailers Customers ©Copyright 2002 D. Simchi-Levi What are the Causes…. Promotional sales Volume and impartation Discount Inflated orders - IBM Aptiva orders increased by 2-3 times when retailers archetype that IBM would be out of stock over Christmas - Same with Motorolas Cellular phones ©Copyright 2002 D. Simchi-Levi What are the Causes…. Single retailer, single manufacturer. Retailer observes customer demand, Dt. Retailer orders qt... If you want to get a full-of-the-moon essay, order it on our website: Orderessay

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