Supply Chain Integration Strategy Analysis

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Gregory Long April 10, 2016 MG 5069 (Advanced Supply Chain Management) Dr. Michael Essary Supply Chain Integration Strategies Introduction The challenges that organizations face in supply chain integration is the ability to successfully coordinate activities across the supply chain so that they can improve performance in the areas of increase service level, reduce cost, better utilize resources, reduce bullwhip effect, and effectively respond to changes in the marketplace. According to Levi (2008), These challenges are met not only by transportation and inventory decisions, coordinating production, but also by integrating the front end of the supply chain, customer demand, to the back end of the supply chain, the…show more content…
Another challenge with the push system is that excess product can be left in inventory. With excess inventory it can lead to increases in the company’s cost associated with storing that excess. There are some positive that come from using a push-based system. One advantage to the push-based system is that companies will have more than enough products on hand to successfully meet their customer needs. Additionally when using the push system, companies and their retailers have an advantage when it comes to the predictability in their supply chains. This predictability allows for retailers to have the ability to plan ahead of time as how to store products and organize their product accordingly. Overall with the push system there are some challenges that a company will face. Some of those challenges include high inventory costs, huge distribution and warehousing costs, off the shelf items and seasonal demands, and the challenge they will face with working capital requirements due to low inventory turns. Push-Based Systems A system that come to mind that is push-based is the Material Requirement Planning (MRP). MRP is a described as a system that combines the calculations for financial, operations and logistics planning. It is a computer-based information system which controls scheduling and ordering. Its purpose is to make sure raw goods and materials needed for production are available when they are needed (Hunt 2006). The main objective of an MRP system is to
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