TAILIEUCHUNG - Lecture Advances in supply chain management - Chapter 30

In this chapter you should be able to: Explain the strategic importance of process selection and the influence it has on the organization and its supply chain, name the two main factors that influence process selection, compare the four basic processing types,. | PART IV ARCHITECTURE OF SELECTED APS SUMMARY of Last Lecture For all projects a detailed business case with a net present value calculation on the entire supply chain was employed in advance. The resulting, here represented, benefits evidently indicate a two-digit million Euro amount. For the monitoring of these benefits a continuous recalculation took place and has confirmed the assumed benefits. Simultaneously, a performance management system was established along the new APS-supported processes. Summarizing, all these benefits lead to a stable and durable enhancement of the margin contribution along the complete downstream supply chain and a competitive advantage of the company in the relevant market. At the same time especially the high grade of flexibility and integration of the available planning, optimization, scheduling and management systems. Smaller raw material costs through an enhanced crude oil selection to fulfill the market demand, Cont’d • Reduction of production costs through a decrease of variable production costs, • Reduction on working capital costs in inventories of crude oil and finished products, • Enforced utilization of margin upgrade potentials through increased transparency, • Persistent realization of the MP (optimization) results through quota formation and quota management, as well as its coordination over different responsibility levels, • Transparency and as a result acceptance of decisions. Future main emphases will be identified and pursued further in the field of demand forecasting, short-term optimization, scheduling and management of the supply chain under the criteria of revenue management. Supply Chain Description and Typology Requirements for Planning On the base of these supply chain characteristics the main challenges for a planning, optimization and scheduling system are as following. Due to the long lead times for the refinery’s crude oil supply, the decision of crude oil purchase, ., which kind of .

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