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Faizan
Production and distribution planning is the process of finding an optimal solution between the service provided to customers and the cost considerations and constraints associated with managing the supply chain. Production and distribution processes incorporate supply chain, inventory, production and distribution management methodologies. All of these methodologies must work together effectively to provide the highest quality product at the most competitive price to the customer.
Supply Chain Management (SCM)
Supply chain management, or SCM, is at the heart of production and distribution planning. It's the management of the interconnected network of suppliers, inventory, production, distribution and marketing channels. The SCM process treats all companies in the chain as one large "virtual corporation" to maximize efficiencies.
Inventory Management
Inventory management is a subset of SCM. The objective of inventory management is to minimize the cost of inventory overhead. To do this, companies often apply just-in-time, or JIT, inventory management techniques where they coordinate with suppliers and have inventory delivered to the factory floor just in time. It reduces storage overhead and the associated manpower required to keep inventory on hand. JIT maximizes the use of interconnected information networks where real-time data from retail or wholesale sales forecasts and predicts production and raw material requirements at a factory.
Production Management
Production management is also a subset of SCM. The objective of production management is to minimize the percentage of product defects produced on the factory floor. To do this, production management incorporates a maze of management philosophies and processes, such a sSix Sigma, Lean Six Sigma, Lean Manufacturing and mathematical optimization models associated with managerial economics. These processes maximize mathematical and statistical techniques while giving front-line workers more decision-making power to address defect issues real time on the factory floor.
Distribution Management
Distribution, or transportation management, is another subset of SCM. The objective of distribution management is to lower transportation costs by streamlining the shipping and distribution process. To meet customer demands, companies often have to use multiple distribution channels. For this reason, distribution management processes often require managers to weigh customer service against cost-reduction considerations for distribution channels.
Customer Input/Feedback
Customer input is the primary feedback driving the production and distribution planning process. It can affect companies at every level of the supply chain. For example, product utilization feedback from customers can affect the type of materials used to manufacture a product or it could trigger changes within design or production processes. Because customers represent the end game, customer input is the seen as value-added input. Many management philosophies and processes are designed to incorporate and respond to customer feedback immediately.
Supply Chain Management (SCM)Supply chain management, or SCM, is at the heart of production and distribution planning. It's the management of the interconnected network of suppliers, inventory, production, distribution and marketing channels. The SCM process treats all companies in the chain as one large "virtual corporation" to maximize efficiencies.
Inventory Management
Inventory management is a subset of SCM. The objective of inventory management is to minimize the cost of inventory overhead. To do this, companies often apply just-in-time, or JIT, inventory management techniques where they coordinate with suppliers and have inventory delivered to the factory floor just in time. It reduces storage overhead and the associated manpower required to keep inventory on hand. JIT maximizes the use of interconnected information networks where real-time data from retail or wholesale sales forecasts and predicts production and raw material requirements at a factory.
Production Management
Production management is also a subset of SCM. The objective of production management is to minimize the percentage of product defects produced on the factory floor. To do this, production management incorporates a maze of management philosophies and processes, such a sSix Sigma, Lean Six Sigma, Lean Manufacturing and mathematical optimization models associated with managerial economics. These processes maximize mathematical and statistical techniques while giving front-line workers more decision-making power to address defect issues real time on the factory floor.
Distribution Management
Distribution, or transportation management, is another subset of SCM. The objective of distribution management is to lower transportation costs by streamlining the shipping and distribution process. To meet customer demands, companies often have to use multiple distribution channels. For this reason, distribution management processes often require managers to weigh customer service against cost-reduction considerations for distribution channels.
Customer Input/Feedback
Customer input is the primary feedback driving the production and distribution planning process. It can affect companies at every level of the supply chain. For example, product utilization feedback from customers can affect the type of materials used to manufacture a product or it could trigger changes within design or production processes. Because customers represent the end game, customer input is the seen as value-added input. Many management philosophies and processes are designed to incorporate and respond to customer feedback immediately.
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