A Reduction Of Supply Chain Over Time Essay

• A situation where a reduction in production will result in less overhead allocated to the respective product

2 Reduced waste: With improved systems there would be reduction in waste and fewer defects in the products. This will help in adding to the profits. Logistical improvements will help in better organisation of physical space required and viable transportation and reduction in the waiting times for the materials required, thus giving lesser room for wasting time.

Reduced need for higher capacity at the supplier. This would be reduced because suppliers would not need to size their operations to deliver on the “one shot large volume order” and would be able to space these in time with orders at

a cut in the time to perform each task which impacts the time and cost of the production. This

* Employees would not have to work as many overtime hours to fill orders because there would be substantial inventory during heavy demand months

3. How do you anticipate Altera’s customers will react to this new strategy? What are advantages and disadvantages for Altera’s customers?

1. Faster delivery times due to decrease in lead time causing an increase in reliability

Second, excess inventory will be reduced on items that have a lower demand. Third, there should be enhanced credibility with customers due to the better availability of product. Forecasting should also benefit scheduling and labor needs for production. Ultimately, there should be an increase in inventory for products with high demand, a decrease in overall inventory, and reduced operating expenses.

The manufacturing cost can be lower as the rearrangement of the production line to meet urgent order can be minimize or even eliminated.

The move to the state-of-the-art facility will result in the organization being more efficient and will as well result in quicker pull of inventory and quicker shipment. Furthermore, stock will be handled more efficiently with less errors resulting in higher profits for the organization.

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

Generally, there is a requirement to reduce costs, reduce the time to market and improve the capacity and flexibility of equipment. This means that while the costs and lead times must be reduced, the utilization of the tooling should be maximized.

reduction in finished goods inventories, the costs charged to the sales of the period must be less or

products. They can also fit it on the screen dummy to see how the clothes looks like when they all put together. 3. Website maintenance and development is easier. For example, our event photos, dummy fitting and catwalk videos. 4. Improved Supply chain as

Quantitative benefits classify into: operating cost reduction, throughput time, capital costs, design-to-market time and faster implementation of plant changes. Then, qualitative benefits also typically inclusive of reducing of risk, deep understanding of processes, communication improvement, great team integration and great development of skills within the organization. Simulations allow variety of problem within the manufacturing to be consigned without the disadvantage of experimenting with a real manufacturing system. Most typical issues postmark are requirement for and the quantity of equipment and personnel, performance consideration, and consideration of operational procedures.