Planning and controlling the supply chain

Planning and controlling the supply chain

Abstract

In this study we try to explore the concept of “supply chain” in a holistic context. The main focus of the research is on “supply chain” and its relation with “UPS”. The research also analyzes many aspects of “supply chain” and tries to gauge its effect on “UPS”. Finally the research describes various factors which are responsible for “supply chain” and tries to describe the overall effect of “supply chain” on “UPS”.

Introduction

This reseach paper covers some of the supply chain aspects of UPS. The forecast techniques used along with the production plan and the master production plan have been discussed in the paper. United parcel service is a package delivery company situated in the United States. It delivers in more than 200 countries worldwide and caters to round about 6 million customers.

Supply Chain Management

SCM is management of material as well as information flow in a supply chain of a company to offer the highest level of customer contentment at the minimal cost possible. SCM demands devotion of suppliers to coordinate in order generation, order taking as well as order completion hence, creating an “extended enterprise” spreading far beyond the manufacturer's location. Supply chains involve the organization's and its operations required to make, deliver as well as use a product. Organization relyon their supply chains to give them what they require to survive and succeed. Each organization fits into more than one supply chains . Moreover, supply chain management comprises of important business activties from the availability of raw materials to the supply of the final product to the consumer involving the transportation.

Primary forecasting techniques help organizations plan for the future. Some are based on subjective criteria and often amount to little more than wild guesses or wishful thinking. Others are based on measurable, historical quantitative data and are given more credence by outside parties, such as analysts and potential investors. While no forecasting tool can predict the future with complete certainty, they remain essential in estimating an organization's forward prospects.

1. Judgmental Methods. For UPS, the real meaning of the judgmental method is to tackle the forecasting issue through assumption that somebody else recognizes and may tell you the correct answer. Hence, in this method they collect the knowledge as well as views of people who are in a place to know the demand. For example, they carry out a survey of the consumer base to forecast the sales of the following month

2. Experimental Method. For UPS, it is an additional method to perform forecasting, which is attractive when a product is "new" as well as when no data is available to produce a forecast. They carry out a demand research on a small group of consumers and to extrapolate the results to a large group. For example, they frequently test a new product in a geographically remote "test market" to find its possible market share

3. Relational/Causal Methods. The supposition behind an underlying or relational prediction is ...