1. Pertemuan 13

2. Managing Uncertainty in a Supply Chain: Safety Inventory

3. Topics The role of safety inventory in supply chain
Determining the appropriate level of safety inventory
Impact of supply uncertainty on safety inventory
Impact of aggregation on safety inventory
Impact of replenishment policies on safety inventory
Managing safety inventory in a Multiechelon Supply Chain
The role of IT in Inventory Management

4. The role of safety inventory in supply chain
Safety inventory is inventory carried to satisfy demand that exceeds the amount forecasted for a given period.
Safety inventory is carried because demand is uncertain, and product shortage may result if actual demand exceeds the forecast demand.

5. Determining the appropriate level of safety inventory
The uncertainty of both demand and supply
The desired level of product availability

6. Impact of supply uncertainty on safety inventory
Supply chain must account for supply uncertainty when planning safety inventories.

7. Impact of aggregation on safety inventory
In practice, supply chain have varying degrees of inventory aggregation.
The goal is to understand how aggregation in each of these cases affects forecast accuracy and safety inventories.

8. Managing safety inventory in a Multiechelon Supply Chain
All inventory between a stage and the final customer is called the echelon inventory. Echelon inventory at a retailer is just the inventory at the retailer or in the pipeline coming to the retailer. If the inventory is inexpensive to hold and customers are time sensitive, it is better to carry more safety inventory downstream, closer to the final customer

9. The role of IT in Inventory Management
Two most significant contributions of IT systems can be improved inventory visibility and better coordination in the supply chain

10. ------------------------------------------------ Sourcing Decisions in a Supply Chain

11. Topics The role of sourcing in a supply chain In-house or outsource
Third- and Fourth-Party Logistics Providers
Contract, Risk Sharing, and Supply Chain performance
The procurement process
Risk Management in Sourcing

12. The role of sourcing in a supply chain
Sourcing is the entire set of business processes required to purchase goods and services.

13. In-house or outsource
How do 3rd parties increase the supply chain surplus?
Capacity aggregation
Inventory aggregation
Transportation aggregation by transportation intermediaries
Transportation aggregation by storage intermediaries

14. Warehouse aggregation
Procurement aggregation
Information aggregation
Receivable aggregation
Relationship aggregation
Lower costs and higher quality

15. Risk of Using a 3rd Party The process is broken
Underestimation of the cost of coordination
Reduced customer/supplier contract
Loss of internal capability and growth in 3rd –party power
Leakage of sensitive data and information
Ineffective contracts
Loss of supply chain visibility
Negative reputational impact

16. Third- and Fourth-Party Logistics Providers

17. Contract, Risk Sharing, and Supply Chain performance
Three contracts that increase overall profits by making the supplier share some of the buyer’s demand uncertainty are:
Buyback or returns contracts
Revenue-sharing contracts
Quantity flexibility contracts

18. The procurement process
There are two main categories of purchased goods: direct and indirect materials.

19. Risk Management in Sourcing
Supply chains with single source is dangerous (refer to tsunami cases). Disruption risk can be mitigated by developing multiple sources.
Carrying inventory or developing a backup source that is more responsive can mitigate delays from a supply source.