Brief your understanding about Benetton Supply Chain operations.

Questions:

1. Brief your understanding about Benetton Supply Chain operations. (3MM)

2. In your understanding, what is the specialty of Benetton’s contractors? (3MM)

3. Does this method provide Benetton competitive advantage over their competitors? Is this method sustainable in the long term? (4MM)

Note:

• You must include at least 5 references.

• Format your references using APA style.

Requirements: 1200-1600

COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Chapter 1:Introduction to Operations

1-2Chapter 1 Learning Objectives•LO 1.1 Define operations and supply chain management.•LO 1.2 Review the role of operations in the firm and the economy.•LO 1.3 Describe the five main decisions made by operations and supply chain managers.•LO 1.4 Explain the nature of cross-functional decision making with operations.•LO 1.5 Describe typical inputs and outputs of an operations transformation system.•LO 1.6 Analyze trends in operations and supply chain management.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-3Definition of Operations ManagementCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Operations management focuses on decisions for the internal production of the firm’s products or services. ةرادإ تاجتنم يلخادلا جاتنلإا تارارق ىلع زكري تايلمعلااهتامدخ وأ ةكرشلا.

1-4A Typical Supply Chain (Figure 1.1)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-5Operations and Supply Chain ManagementCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Deals with the sourcing, production, and distribution of the product or service along with managing the relationships with supply chain partners. عم لماعتي ىلإ ابنج ةمدخلا وأ جتنملا عيزوتو جاتنإو رداصمديروتلا ةلسلس ءاكرش عم تاقلاعلا ةرادإ عم بنج.

1-6Importance of Operations and Supply ChainCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Providing the products and services that we use and enjoy ميدقت يتلا تامدخلاو تاجتنملااهب عتمتسنو اهمدختسنConstantly improving both productivity and innovation ةيجاتنلإا نيسحترارمتساب راكتبلااوSustaining our way of life while working to protect the planet بولسأ ىلع ظافحلابكوكلا ةيامح ىلع لمعلا عم انتايحCreating revenue from products & services to drive firm profitability قلخ عفدل تامدخلاو تاجتنملا نم تاداريإ ةكرشلا ةيحبر

1-7Role of Operations in the EconomyCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Gross Domestic Product (GDP) -monetary value of all goods and services produced in a country. يلامجلإا يلحملا جتانلا- ةيدقنلا ةميقلاام دلب يف ةجتنملا تامدخلاو علسلا عيمجل .Productivity-value of goods/services output, relative to input. ةيجاتنلإا-علسلا جتان ةميق/تلاخدملل ةبسنلاب ،تامدخلا .Productivity = output capital + labor

1-8Productivity ExampleCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.A retail (quick) clinic has the following output (revenue) and labor expenses. ةئزجتلاب عيبلا ةدايع يوتحت(ةعيرسلا ) يلاتلا جتانلا ىلع(تاداريلإا )ةلامعلا تاقفنو.Did productivity improve from Year 1 to Year 2? (assume equivalent capital costs) ةنسلا نم ةيجاتنلإا نسحت له1 ؟ةيناثلا ةنسلا ىلإ(ةئفاكملا ةيلامسأرلا فيلاكتلا ضرتفا)AnnualYear 1Year 2InflationOutput (revenue) $thousands$842$8832%Labor $thousands$280$2924%

1-9Productivity Example -SolutionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.A retail (quick) clinic has the following output (revenue) and labor expenses. Did productivity improve from Year 1 to Year 2? (assume equivalent capital costs)Productivity year 1 = Output year 1= 842= 3.01 Labor year 1 280Productivity year 2 = Output year 2= 883(.98)= 3.09Labor year 2 292(.96)Change in productivity = 3.09= 1.027 which is a 2.7% increase3.01

1-10Why Study Operations Management?Challenging and interesting career opportunities –domestic, international مامتهلال ةريثمو ةبعص ةيفيظو صرف– ةيلودو ةيلحمCross-functional nature of decisions –what every major needs to know ةعيبطلا تارارقلل ةكرتشملا ةيفيظولا– ىلإ سيئر لك جاتحي امهتفرعمPrinciples of process thinking can be applied across the organization نكميةمظنملا ءاحنأ عيمج يف ةيلمعلا ريكفتلا ئدابم قيبطتCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.ammentorp/123RF

1-11Careers in Operations and Supply Chain ManagementCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Supply Chain Analyst ديروتلا ةلسلس للحمSupply Chain Analytics ةلسلس تلايلحت ديروتلاPlant Lead on Sustainability صاصرلاةمادتسلاا ىلع يتابنلاSourcing Specialistرداصم يئاصخأGlobal Sourcing Analyst رداصم للحمةيملاعTransportation Planner لقنلا ططخمRisk Consultant رطاخملا يراشتساCustoms Specialistكرامجلا يئاصخأNetPics/Alamy Stock Photo

1-123 Aspects of Operations and Supply Chain ManagementDecisions: The operations manager must decide:تايلمعلا ريدم ررقي نأ بجي:•Process, quality, capacity, inventory, and supply chain ديروتلا ةلسلسو نوزخملاو ةردقلاو ةدوجلاو ةيلمعلاFunction: ةلاد :Major functional areas in organizations:تامظنملا يف ةيسيئرلا ةيفيظولا تلااجملا :•Operations, marketing, finance ليومتلاو قيوستلاو تايلمعلاProcess: ةيلمع :Planning and controlling the transformation process and its interfaces (internal/external) اهتاهجاوو لوحتلا ةيلمع ةبقارمو طيطخت(ةيجراخلاو ةيلخادلا)Expansion of these points follows on the next slides.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-13Let’s Manage Operations at Pizza USA!COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Managing operations is about making decisions.Steve Mason/Getty Images

1-14MajorDecisions at Pizza USAProcess◦How should we produce pizzas?Quality◦How do we meet quality standards and ensure a good customer experience?Capacity◦How much output do we need at various times?Inventory◦Which ingredients, when & how much?Supply Chain◦How to source inputs and manage logistics?COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-15Framework for Operations Decisions (Figure 1.2)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-16Cross-Functional Decision MakingOperations is critical in every firm.ةكرش لك يف ةيمهلأا غلاب رمأ تايلمعلا .Marketing = create demand قيوستلا = بلطلا ءاشنإOperations = produce and distribute goods and services تايلمعلا = علسلا عيزوتو جاتنإتامدخلاوFinance = acquire and allocate capital ليومتلا = هصيصختو لاملا سأر ىلع لوصحلاSupporting functions: human resources, information systems, accounting فئاظولاةمعادلا :ةبساحملاو ،تامولعملا مظنو ،ةيرشبلا دراوملاCross-functional decision making -see Table 1.2COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-17Operations as a Processةيلمعك تايلمعلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Transformation(Conversion)ProcessInputsOutputs

1-18Operations as a Process (Figure 1.3)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Transformation(Conversion)ProcessEnergyMaterialsLaborCapitalInformationGoods orServicesFeedback information forcontrol of process inputsand process technology ل تاظحلاملا تامولعمةجلاعملا ايجولونكتو ةيلمعلا تلاخدم يف مكحتلا

1-19Transformation Process Examples (Table 1.3)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-20Trends in Operations and Supply Chain Management▪Sustainability –triple bottom line ةمادتسلاا–يثلاثلا ىندلأا دحلا▪Services تامدخلا▪Digital Technologies ةيمقرلا تاينقتلا▪Integration of Decisions Internally and Externallyايجراخو ايلخاد تارارقلا لماكت▪Globalization of Operations and the Supply Chain ةملوعديروتلا ةلسلسو تايلمعلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.StreetVJ/Shutterstock

1-21Chapter 1 SummaryCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.•LO 1.1 Define operations and supply chain management.•LO 1.2 Review the role of operations in the firm and the economy.•LO 1.3 Describe the five main decisions made by operations and supply chain managers.•LO 1.4 Explain the nature of cross-functional decision making with operations.•LO 1.5 Describe typical inputs and outputs of an operations transformation system.•LO 1.6 Analyze trends in operations and supply chain management.

1-22Questions for DiscussionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.•What do you hope to learn in this course?•Review the operations and supply chain trends on slide 1-20. Which of these is most interesting to you and why?•What production systems have you seen in person? How do they produce the intended product or service?•Describe a transformation process that you recently experienced. Think about a medical or dental clinic visit, or a restaurant visit.•Why are global factors important in operations and supply chain?•How is operations and supply chain related to environmental responsibility?

COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-1Chapter 18:LogisticsMcGraw-Hill Education

Chapter 18 Learning ObjectivesCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-2▪LO 18.1 Define the scope and purpose of logistics.▪LO 18.2 Explain transportation economics.▪LO 18.3 Compare the advantages and disadvantages of the five modes of transportation.▪LO 18.4 Distinguish among the different functions of warehouses. ▪LO 18.5 Describe how to determine the number and location of warehouses.▪LO 18.6 Consider when a firm should use a third-party logistics provider.▪LO 18.7 Define logistics strategy and explain why it is needed.

Logistics DefinitionIncludes:◦Inbound to firm ةكرش ىلإ ةدراو◦Outbound from firm ةكرش نم ةرداص◦Warehousing (storage) نيزختلا(نيزختلا )◦Network design ةكبشلا ميمصتCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-3Plans, implements, and controls the efficient, effective forward and reverse flows and storage of goods and related information between the point of origin and consumption in order to meet customer requirements. ماملأل لعافلاو لاعفلا قفدتلا ةبقارمو ذيفنتو ططخبلت لجأ نم كلاهتسلااو أشنملا ةطقن نيب ةلصلا تاذ تامولعملاو علسلا نيزختو سكعللو ةيءلامعلا تابلطتم.

Importance of Logistics▪Strategic decisions linking marketing and operations طبرت يتلا ةيجيتارتسلاا تارارقلا تايلمعلاو قيوستلا▪Operational decisions defining “place” and movement of goods يتلا ةيليغشتلا تارارقلا ددحت”ناكم ” عئاضبلا ةكرحو▪Integration with other functions ىرخأ فئاظو عم لماكتلا◦Marketingto fulfill customer demand ءلامعلا بلط ةيبلتل قيوستلا◦Information systems to link firm to suppliers and customers نيدروملاب ةكرشلا طبرل تامولعملا مظنءلامعلاو◦Financefor large investments in inventory, warehousing نوزخملا يف ةريبكلا تارامثتسلاا ليومتنيزختلاوCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-4Boundary spanning activities

Critical Logistics Decisionsةجرحلا ةيتسجوللا تارارقلا❑What modes of transportation to use?؟اهمادختسلا لقنلا لئاسو يه ام❑What types of warehousing to use? بجي يتلا نيزختلا عاونأ يه ام ؟اهمادختسا❑Where should factories and warehouses be located? نأ بجي نيأ؟تاعدوتسملاو عناصملا دجوت❑Should logistics be outsourced to third-party provider (3PL)? ثلاث فرط دوزمل ةيتسجوللا تامدخلل ةيجراخ رداصمب ةناعتسلاا يغبني له(3PL)؟❑What is the strategic role of logistics in creating and supporting competitive advantage? تامدخلل يجيتارتسلاا رودلا وه ام؟ةيسفانتلا ةزيملا معدو قلخ يف ةيتسجوللاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-5

Transportation Economicsلقنلا تايداصتقاEconomies of scale تاروفو مجحلا◦Largershipments cost less per pound(than smaller)لطرلل لقأ فلكت ربكلأا تانحشلا دحاولا(رغصلأا نم )◦Fulltruckloads cost less per pound (than partial) لكل لقأ ةلماكلا ةنحاشلا ةلومح لطر(يئزج نم)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-6Economies of distanceةفاسملا تاروفو◦Longerdistances cost less per pound(than shorter) لطرلل لقأ ةفلكت لوطأ تافاسم دحاولا(رصقأ نم )◦Longerdistances cost less per mile(than shorter) ليم لكل لقأ فلكت لوطأ تافاسم(رصقأ نم)Economies of speed تاروفوةعرسلا◦Regularshipping costs less per mile(than expedited) ليم لكل لقأ ةيداعلا نحشلا فيلاكت(لجعملا نم )◦Regularshipping costs less per pound(than expedited) لطر لكل لقأ ةيداعلا نحشلا فيلاكت(لجعملا نم)

Transportation Economics ExampleCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-7A company has three shipments of 10,000 pounds each going from different nearby cities to one retail store. The carrier charges $10 per hundredweight (cwt). If the shipments are consolidated into one truck, the carrier will take the 30,000 pounds for $7 per cwt, but charges $300 each for the two extra stops.Should the company consolidate the three shipments?Cost to ship separatelyin three trucks is:Cost = 10,000 ($10/100 pounds)*(3 shipments) = $1,000 * 3 = $3,000Cost to consolidatethe three shipments is:Cost = 30,000 ($7/100 pounds) + $300*(2) = $2,100 + $600 = $2,700Consolidating the shipments costs less.

Transportation ModesCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.8MultimodalIntermodalDrones??TrucksRailAirWater•Ocean•InlandPipelinemipan/123RF

Mode Use in U.S. (Figure 18.1)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.9

Transportation Decisions (Table 18.1)ModeAdvantagesDisadvantagesTruckCan move freight quickly over long distances. Veryflexible on locations. Easily linked with rail or air.More expensivefor heavy and bulky freight than other modes.RailRelatively inexpensivefor long distances. Can be linked with truck or ocean freight.Relatively slow.Water (inland)Low cost for moving bulkcommodities. Effective when linked to multimode.Subject to proximity of waterway locations. Relatively slow.Water (ocean)Cost-effective way to ship freightin containers over long distances.Very slow.AirFast way to move freight.Flexible when linked to trucks.Very expensive.PipelineCan move bulk commodities (oil, gas, and chemicals) for long distances.Expensive to install.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-10

Distribution Centers and Warehousing زكارمنيزختلاو عيزوتلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-11Consolidationديطوت

Distribution Centers and Warehousing زكارمنيزختلاو عيزوتلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-12Break-bulkةبئاسلا رسك

Distribution Centers and WarehousingCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-13Cross-dockingماحتللاا ربع

Other Purposes ofDistribution Centers and Warehousingنم ىرخأ ضارغأنيزختلاو عيزوتلا زكارم➢Managing seasonal demandيمسوملا بلطلا ةرادإ➢Supporting manufacturing عينصتلا معدIncoming raw materials ةدراولا ماخلا داوملاOutgoing finished goods ةيهتنملا علسلاةيهتنملاهتيلاو➢Providing value-added servicesةفاضم ةميق تاذ تامدخ ميدقت➢Handling reverse logisticsةيسكعلا ةيتسجوللا تامدخلا ةجلاعمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-14

Logistics Networks -Location factors ةيتسجوللا تاكبشلا- لماوععقوملا•Labor availability ةلامعلا رفاوت•Cost of laborةلامعلا ةفلكت•Cost of construction and maintenance ةنايصلاو ءانبلا ةفلكت•Cost of transportationلقنلا ةفلكت•Taxesبئارض•Government incentivesةيموكحلا زفاوحلا•Government regulations ةيموكحلا حئاوللا•Delivery time to customer ىلإ ميلستلا تقو ليمعلا•Proximity to suppliersنيدروملا نم برقلا•Highway and rail availability قرطلا رفوتةيديدحلا ككسلاو ةعيرسلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-15

COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-16Logistics Network ةكبش تايتسجوللا(Figure 18.3)

Center of Gravity Analyticsةيبذاجلا تلايلحت زكرمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-17▪First approximation to locate warehouses based on transportation costs and distances. فيلاكت ساسأ ىلع تاعدوتسملا عقوم ديدحتل لولأا بيرقتلاتافاسملاو لقنلا .▪Model calculates the center-of-gravity based on the distances from warehouses to customers. ىلإ ادانتسا ةيبذاجلا زكرم باسحب جذومنلا موقيءلامعلا ىلإ تاعدوتسملا نم تافاسملا .

Center of Gravity -Example COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-18CustomerX

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