The Operations Supply Chain Management content
· It should be 3-4 pages in length not including the required cover and references pages.
· It should be with at least 2 peer-reviewed or professionally published sources Use current sources, not older than 5 years.
· Format: APA guidelines
1. Carefully review the simulation's introductory information and instructions, as well as the information in the OM Simulation Descriptions and Implementation Tips. After completing the simulation, capture a screen image of your final simulation results, including the rubric evaluation metrics (i.e., MAPE), which are to be included in your Critical Thinking Assignment.
2. The Operations Supply Chain Management content, paper or presentation option, must include the following sections:
· 3.1 Introduction: Explain the purpose or thesis of the paper and explain how the body of the paper is arranged to support the purpose of the paper.
· 3.2 Provide a brief definition of Supply Chain Management and identify why it is important in an organization's operations.
· 3.3 Provide a brief overview description of the Supply Chain Management Simulation including the targeted goals of the simulation.
· 3.4 Describe specifics about the model or approach used as the basis for your strategy in performing the Supply Chain Management Simulation; in an appendix, including an illustrated (worked-out) example of a formula, calculation, or technique developed as a central part of your Supply Chain Management Simulation strategy.
· 3.5 Describe at least three operations Supply Chain Management methods, principles, or techniques experienced in the Supply Chain Management Simulation. Please describe your rationale/hypothesis for choosing each principle that you use. You may consider large lots, cross sourcing, vendor selection process, or other principles.
· 3.6 Clearly describe your simulation results and indicate how well they met the targeted simulation goals.
· 3.7 Itemize at least three lessons learned from the Supply Chain Management Simulation and describe how this understanding is important for a career in operations management. In lessons learned, you may consider describing how you managed uncertainty or risks, were there any surprises and how you managed them, how well vendor selection worked, whether cross sourcing worked, etc.
· 3.8 Conclusion should present a recap of key points and a summary of the main emphasis without repeating verbatim and exclusive of new information.
· 2.9 References should include at least two current scholarly references (published within the past five years) in addition to the course text.
Your written Supply Chain Management paper must contain the sections outlined in the instructions.
· Don't forget to include a screenshot of your final simulation results.
Submit your Critical Thinking Assignment document(s) in the submission area established for this purpose. Per the assignment rubric, a portion of your evaluation is based on your simulation results
· It should be 3-4 pages in length not including the required cover and references pages.
· It should be with at least 2 peer-reviewed or professionally published sources Use current sources, not older than 5 years.
· Format: APA guidelines
,
Supply Chain Management
Shanda Jones
Colorado State University Global
ORG510: Operations Management
Dr. Peter Billington
5/18/2021
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Supply Chain Management
Supply chain management is crucial to the success of an organization. Operation
managers are tasked with ordering and receiving materials to produce a product or service that
meets and/or exceeds customer demands. Successful supply chain management can cut down on
unnecessary expenses and help improve customer service. This allows an organization to set
itself apart from others by developing a reputation as an organization that can keep up with the
fluctuating needs of its customers. In this paper, we will discuss the importance of supply chain
management, analyze the simulation and provide principles and techniques that were used in the
simulation.
2.2 Definition
Heizer et al, (2017) defines supply chain management as “coordination of all supply
chain activities, starting with raw materials and ending with a satisfied customer.” Supply chain
management is important because it helps your organization to remain competitive. In order for
an organization to be successful they must focus on making sure that they keep their overhead
and/or production costs low and their customer satisfaction rating high. Supply chain managers
are entrusted with overseeing the organization’s many vendors and ensuring that quality
standards are met and/or exceeded. According to Aschenbrand et al. (2018), in the past supply
chain managers were relied upon to drive cost and efficiency, but now they are also tasked with
evaluating customer demands, production times and speed of customer delivery, thus giving
them a more strategic role in the organization. Poor supply chain management can result in an
organization pricing itself out of business and losing customers.
2.3 Supply Chain Management Simulation Overview
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In this simulation, I was hired on as a supply chain analyst with AJ Manufacturing to
handle a large order of gizmos for Munson & Witt, Inc. I was tasked with finding the best
suppliers to minimize procurement costs and deliver the gizmos on time. My goal was to deliver
25,000 gizmos and keep procurement costs under 1 million dollars. Each gizmo was composed
of 1 unit from Sku 1 and 4 units from Sku 2. I had to deliver 20% of the order in quarter 1, 40%
in quarter 2, 70% in quarter 3 and 100% in quarter 4. In addition, I had to make sure that the
customer remained satisfied throughout the simulation.
2.4 Model/Approach Taken
As part of the supply chain management simulation strategy, I started by using a many
supplier strategy. This strategy plays suppliers against each other by requesting bids and typically
taking the lowest bid. Per Heizer et al. (2017), this “holds suppliers responsible for maintaining
the necessary technology, expertise, and forecasting abilities, as well as, cost quality and delivery
competencies.” However, after getting into the simulation I quickly realized that it was a better
decision to go with a few suppliers approach. There were organizations that were more
dependable in their deliveries, and thus more understanding to what our goals were, which lead
to long-term relationships.
2.5 Supply Chain Management Methods/Principles/Techniques
The three supply management methods used in this simulation were outsourcing, blanket
ordering and supplier evaluation. “Outsourcing is the decision to transfer certain activities
typically performed with the organization to an external entity,” (Module 5, 2021). In this
simulation, AJ Manufacturing Inc., decided to outsource the manufacturing of the units that made
up the gizmos. This gave AJ Manufacturing the best possible chance to obtain quality parts in
order to make sure that the gizmos were the highest quality product. The downside to
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outsourcing is having to rely on suppliers to deliver their parts on times. If there is a delay in
shipment it can throw the whole schedule off and result in not meeting the customer’s
expectations.
Per Heizer et al. (2017), supplier evaluation involves finding suppliers and determining
their potential to become good suppliers. Financial strength, quality, management, technical
ability, etc. are all categories that should be evaluated when trying to determine if a supplier
would be beneficial to your organization. In this simulation, there were several emails from
vendors that stated information regarding quality issues, strikes, inexperience, etc. Based on that
information, as the supply chain analyst I had to evaluate whether or not to place orders with
each supplier and whether or not I thought they could keep up with the demand.
Blank orders are a “long-term purchase commitment to a supplier for items that are to be
delivered against short-term releases to ship,” (Heizer et al., 2017). Following a blanket ordering
method, helps to prevent a delay in production. In this simulation, although there were some
delays, these delays were only 1-2 weeks which did not cause a delay in the overall production
timeline. This method allowed for consistent unit delivery and stable pricing.
2.6 Simulation Results
The targeted simulation goal was to deliver 25,000 gizmos and keep procurement costs
under 1 million dollars. While I met the delivery goal and kept high customer satisfaction
throughout the simulation, my procurement costs ended up being $1,035,717.00, which is
$35,717 over the procurement budget. I had zero cancelled orders which shows that I chose
reliable suppliers and developed long-term relationships with them.
2.7 Lessons from Simulation
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The main lesson I learned from this simulation is the importance of supply chain
management within an organization. This was not an easy task and took a lot of patience,
planning, and forecasting. The simulation furthered my understanding in the importance of
adaptability, staying informed and flexibility. I did this simulation probably 8 times, and although
I got better each time, I was either under budget and low in customer satisfaction, or over budget
and high in customer satisfaction. I chose to go slightly over budget in order to get a higher
customer satisfaction rating, because a happy customer is a consistent customer. I quickly
learned the importance of having reliable suppliers. Suppliers can make or break your
organization. Time delays can wreak havoc on your production schedule and ultimately lead to
not being able to complete orders.
2.8 Conclusion
In conclusion, supply chain management is an important factor to whether or not an
organization succeeds or fails. Organizations are only as good as their suppliers. They rely on
their suppliers to provide quality products within a reliable timeframe. Utilizing suppliers helps
organizations to put more resources into focusing on their core competencies. Throughout this
paper and simulation we have shown the importance of supply chain management and its effect
on meeting deadlines, financials, and customer satisfaction.
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References
Colorado State University Global. (2021). Module 3: Product and Service Design and Quality
[Interactive lecture]. Canvas. https://portal.csuglobal.edu
Aschenbrand, J., Proctor, J., & Trebilcock, B. (2018). The ethical supply chain. Supply Chain
Management Review, 22(6), 14-21.
Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and supply
Chain management. Pearson Education Inc., 12th Ed. Upper Saddle River, New Jersey.
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Appendix 2.10.1
Supply Chain Management Example
In this simulation, I started by determining how many gizmos I needed to have completed each quarter in order to meet the 25,000 gizmos ordered by Munson & Witt. Based on each gizmo being made up of 1 unit from Sku 1 and 4 units from Sku 2, I knew I had to have a total of 5,000 units from Sku 1 and 20,000 units from Sku 2 for the 1st and 2nd quarters, and 7,500 units from Sku 1 and 30,000 units from Sku 2 for the 3rd and 4th quarters.
Next, I requested bids from all of the suppliers, and as the bids came in, I read through their emails to evaluate them as a supplier. Did they mention anything about quality, timeliness, experience, etc.
Once they were evaluated, I placed the orders according to who I thought could handle the load and get it delivered on time.
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Appendix 2.10.2
Quality Management Simulation Results
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