3c: A Proven Alternative to MRPII for Optimizing Supply Chain Performance

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CRC Press, Jun 25, 1999 - Business & Economics - 272 pages
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Lack of materials or goods to satisfy customer orders under current market conditions represents an extremely costly and important problem facing businesses today. This is a problem that companies have spent hundreds of millions of dollars trying to solve. This book introduces a new theory, 3C, which will solve these problems.
The authors, experts from Lucent Technologies, discuss in detail the relationship between the 3Cs - capacity, commonality, and consumption - and how this relationship can revolutionize your business. You will learn how to: reduce overhead expense and improve shipping performance by using the business capacity as the basis for materials planning; reduce investments in inventory by using the commonality of components; obtain dramatic improvements in the lead time of customer orders by using the actual consumption of materials instead of inaccurate sales forecasts as the basis for purchasing.
The new and exciting techniques based on 3C generate immediate business benefits, for example: executing the purchasing function with a new criteria and formulae that can eliminate material shortages and significantly improve shipping performance, sales volumes, operating expense and company image.
3C-A Proven Alternative to MRPII for Optimizing Supply Chain Performance gives you the knowledge and practical guidelines to better manage end-to-end Supply Chains and eliminate the expensive and annoying problem of material shortages that most businesses suffer.

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Contents

THE PROBLEM
1
Minimum Requirements for a Solution
15
The Value Added By the Supply Chain Management
17
THE SOLUTION
21
The Basics of the 3C Theory
57
The Puzzle Problem Objective
58
The RBILL Calculation Generic Case
65
Week 1 3C Method
73
The 3C Path
131
Delivery Performance Profile
139
The MRP Path
147
Next Century Strategies
163
THE THEORY
177
Things That 3C Doesnt Do or Things That It Isnt
180
Omega Q 72
184
Understanding TOP Consumption
193

Week 1 MRPII Method
79
Supply Chains Under 3C
87
Suppliers Lead Times
98
Is 3C Always Better Than MRP?
105
Commonality Scenarios
106
Less Than Perfect Commonality
112
Graphic Results of Sensitivity Analyses at 100
116
Summary of Conclusions The Comfor Example
118
Sensitivity Analyses to Sales Density 3 MIs
123
3CMRP Comparison Under High Commonality
125
WorstCase Inventory WCI
195
Sales Density 8
201
Conclusions
210
Glossary
213
Appendix B 221
223
Scenario FA 50CIND 0 8
224
Index
233
Graphic Results of Sensitivity Analyses at
239
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