Enter text here

Enter text here

1. Darden's Supply Chain : 1. Largest publicly traded casual dining company in the world. 2. Operations is the strategy. 3. Sources food from five continents and thousands of suppliers

2. Objective of supply chain management : to coordinate activities within the supply chain to maximize the supply chain's competitive advantanges and benefits to ultimate consumer

3. Sourcing issues : Make-or-buy decisions and outsourcing

   • Six sourcing strategies : Many suppliers, few suppliers, vertical integration, joint ventures, Keiretsu networks and virtual companies.

4. Supply Chain Risk : More reliance on supply chains means more risk, vendor reliability and quality risk, political and currency risk

   • Risk and Mitigation Tactics : Innovative planning, reduce potential disruptions and prepare responses for negative events

5. Security and JIT : Shipments get misrouted, stolen, damaged and tracking can help expedite shipments

6. Building the supply base : Supplier evaluation, Supplier development, Negotiation, E-Procurement, Contracting and Centralized purchasing.

7. Amazon.com : started as a "virtual" retailer - no inventory, no warehouse, no overhead, just computers taking orders.

8. Inventory is any stock or stored resources of any item that are used by organization to satisfy current or future needs.

   • Objective : to strike a balance between inventory investment and customer service

9. Importance : One of the most expensive assets of many companies representing as much as 50% of total invested capital.

10. Function : To take advantange of quantity discounts and to hedge against inflation

11. Type of inventory : Raw material, Work-in-process (WIP), Maintenance/Repair/Operating and Finished goods.

12. Techniques of Inventory : ABC analysis, Record accuracy, Cycle counting and Control of services inventories.

13. Inventory models : Independent demand and Dependent demand

    • For Independent demand - need to determine when and how much to order.
      • 1. Basic economic order quantity (ECQ) model.
        • 2. Production order quantity model
          • 3. Quantity discount model.