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2 Critical Concepts of Supply Chain Flow and Resilience
Pages 17-26

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From page 17...
... • Cycle time is the total time from start to finish of a process.1 For example, the manufacturing cycle time for a component is the time from when an item is ordered to when it is shipped, which includes both queue times while the item is waiting 1  Flow time, manufacturing lead time, and production lead time are often used synonymously with cycle time. Regardless of the nomenclature, cycle time can refer to the start-to-finish time of any well-defined process, including a single production step (e.g., machining station)
From page 18...
... Because cycle times for production, transportation, and distribution processes in a supply chain are non-zero, decisions about what to make, ship, and sell must be made before customer demands occur. If demand variability were entirely predictable, with no deviation between planned and actual production, it would be possible to make supply chain decisions that precisely adjust supply to meet demand.
From page 19...
... This bottleneck could be the production process for a raw material, component, or finished product, or the transportation process between any of the stages in the supply chain, or even the distribution process (e.g., retail outlets)
From page 20...
... , because these can easily become rate-limiting stages in the supply chain.2 By identifying the process stages of critical supply chains that are at risk of becoming bottlenecks, one can better pinpoint and prioritize actions to harden supply chains against disruption; and by identifying bottlenecks that arise after a disruptive event, one can focus on strategic efforts to return the supply chain to normal operations. Inventory and Lead Time Another factor that is key to understanding normal and emergency behavior of supply chains is inventory, the quantity of material (raw materials, components, or finished goods)
From page 21...
... Furthermore, the exceptional relief supply chains established to deliver essential products in the wake of a hurricane lack the sophisticated communication systems utilized in many commercial supply chains,4 and therefore struggle to match supplies with demand. Each of these supply chain disruptions can reduce capacity and lengthen lead time.
From page 22...
... This cascading phenomenon can play an important role in determining the FIGURE 2.2  Schematic of a disrupted supply chain.
From page 23...
... FIGURE 2.3  Example of cascading failure in a supply chain.
From page 24...
... It is particularly important to direct resilience efforts at these critical systems on which all other supply chains rely. The objective of supply chain resilience initiatives is to minimize the impact of a disruptive event (e.g., a hurricane)
From page 25...
... But a lack of coordination among government, nongovernmental orga nizations, and private companies can slow the restoration of regular supply chains. For example, if public relief efforts utilize a significant portion of local truck drivers, private supply chains will be slow to return to normal.
From page 26...
... In tying all these different supply chain concepts together, we note that if one has capacity to foresee where bottlenecks are likely to emerge and cause supply disruptions, and to foresee a system's most critical and vulnerable links and nodes, one can then identify readiness, response, and recovery actions to mitigate the harm. For example, if diminished trucking capacity caused by a power outage at retail diesel fueling stations is identified as likely to impede the delivery of supplies to an affected region, several remediations emerge.


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