SC1X - Week 1

Front

Push - being done ahead of time

Back

• - Demand is forecasted

• - Execution is performed in ANTICIPATION of an order

• - Proactive process based on projected demand/need

Front

Pull - start when customers come in

Back

• - Execution is performed in RESPONSE to an order

• - Demand is actual and known with certainty

• - Reactive process based on actual demand

Front

Pure system

Back

leads to higher inventory levels and potential spoilage/imbalance but faster cycle time

Front

Some principles

Back

• - Keep in-process inventory as RAP, which means don't do final assembly, push that back as far as possible

• - Maximize external variety with minimal internal variety

Front

How many segments (rules of thumb)??

Back

4 segments: Homogenous, Heterogeneous, Critical mass, Pragmatic

Front

Homogenous - within the segment should be familiar

Back

Dù là segment nào thì cũng phải có gì đó giống nhau

VD: beach chairs, towels, lawn mowers là những đồ dùng bán được nhanh trong mùa hè

=> treat them all the same because they have the same speed.

Front

Heterogeneous - across segments should be very difficult

Back

because these segments are distinctively different

Front

Critical mass - Should be big enough to make it worthwhile

Back

We don't want to waste our effort on 1 segment for 1 SKU

=> Segment must be big enough to make it worth it to manage

Front

Pragmatic

Back

dimensions should be useful and communicable

Front

How can I segment products?

Back

Based on physical charateristics (value, size, density etc.); demand charateristics (sales volume, volatility, etc.); supply characteristics (availability, location, etc.)