• 1. CHAPTER 4 Order Processing and Information Systems
    • 2. Total Order Cycle: A Customer's PerspectiveKey: 1. Order preparation and transmittal 1 days 2. Order received and entered into system 1 day 3. Order processed 1 day 4. Order picking/production and packing 1 days 5. Transit time 3 days 6. Warehouse receiving and placing into storage 1 day Total order cycle time 8 days 1. Customer places order 6. Order delivered to customer 5. Order shipped to customer 2. Order received 3. Order processed 4. Order picked and packed
    • 3. Total Order Cycle with Variability2. Order entry and processingFrequency:1 2 31. Order preparation and transmittalFrequency:1 2 33. Order picking or productionFrequency: 1 9Frequency:TOTAL3.5 days 8 20 days5. TransportationFrequency:1 3 56. Customer receivingFrequency:.5 1 1.5
    • 4. The Path of a Customer’s OrderWarehousewithdrawalInventoryfileProductionscheduleCheckcreditInventoryavailableShipcustomerorderCustomerdeliveryOrdertransmittalCustomerorderEntercustomerorderInvoiceBackorderProductionTransportationschedulingShippingdocumentationProcessorder
    • 5. Traditional Supply Chain Flows Demand flow Product flow SupplierRetailerDistributorManufacturer
    • 6. Information-based Supply Chain Flows Timely, accurate information flowSupplier Manufacturer Distributor RetailerSmooth, continual product flow matched to demand
    • 7. Definition of EDIInterorganizational exchange of business documentation in structured, machine-processable form.UnstructuredStructuredFax EDI E-Mail Order entry Person-to-person Computer-to-computer
    • 8. EDI Versus Traditional MethodsSource: Margaret A. Emmelhainz, Electronic Data Interchange: A Total Management Guide (New York: Van Nostrand Reinhold, 1990), p. 5.BUYER'S PURCHASINGAPPLICATIONSELLER'S ORDERENTRY APPLICATIONPURCHASINGPURCHASINGPOST OFFICEBUYER'SCOMPUTEREDI FLOWPOPOSELLER'SCOMPUTERORDERENTRY
    • 9. Typical EDI ConfigurationsSOURCE: GE Information Service, as reported in Lisa H. Harrington, "The ABC's of EDI," Traffic Management 29, no. 8 (August 1990), p. 51.ManufacturerManufacturerManufacturerManufacturerSupplierSupplierSupplierSupplierSupplierSupplierThird- party vendorProprietary systemValue-added network (VAN)
    • 10. Decision Support SystemUser data-basesInformation resultsPublic data- basesData acquisitionsData preprocessingPlanning/ analysis modelsUser inputsData presentationData processingOperating models