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Typically, supply-chain managers aim to maximize the profitable operation of their manufacturing and distribution supply chain. This could include measures like maximizing gross margin return on inventory invested (balancing the cost of inventory at all points in the supply chain with availability to the customer), minimizing total operating expenses (transportation, inventory and ...
Availability, achieved (Aa) [6] The probability that an item will operate satisfactorily at a given point in time when used under stated conditions in an ideal support environment (i.e., that personnel, tools, spares, etc. are instantaneously available). It excludes logistics time and waiting or administrative downtime.
Starting in the 1990s, several companies chose to outsource the logistics aspect of supply-chain management by partnering with a third-party logistics provider (3PL). Companies also outsource production to contract manufacturers. [35] Technology companies have risen to meet the demand to help manage these complex systems.
[2] [3] A more narrow definition of supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally".
Availability includes non-operational periods associated with reliability, maintenance, and logistics. This is measured in terms of nines. Five-9's (99.999%) means less than 5 minutes when the system is not operating correctly over the span of one year. Availability is only meaningful for supportable systems.
Operational availability is a management concept that evaluates the following. [1] Diagnostic down time; Criticality; Fault isolation down time; Logistics delay down time; Corrective maintenance down time; Any failed item that is not corrected will induce operational failure. is used to evaluate that risk. Operational failure is unacceptable in ...
Supply chain engineering is the engineering discipline that concerns the planning, design, and operation of supply chains. [1] [2] Some of its main areas include logistics, production, and pricing.
A warehouse in South Jersey, a U.S. East Coast epicenter for logistics and warehouse construction outside Philadelphia, where trucks deliver slabs of granite [1]. Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers.