In two companies (AerCo, NuCo), the demand was managed centrally using information gathered from decentralised units and remotely from the assets in the field. Demand management at AerCo is performed by a quarterly review of the orders for new assets and the forecast of demand for aftermarket parts. This review is performed centrally to the business although information is gathered from around the business, including overseas bases and real-time data that have been analysed for issues that will have an impact upon the demand placed upon the supply chain. This is due to AerCo operating in a make-to-order (MTO) environment for production parts—with a 3–5 years lead-time for customers—and a make-to-stock (MTS) environment for aftermarket—where the requirement for a replacement part or system may be instantaneous if the aircraft has suffered unexpected damage. This quarterly review of demand is then placed upon the supply chain through an explicit process that ensures that orders can be met fully within leadtime. NuCo have a central department managing the support of the site, which is updated regularly depending on the condition of assets within the facility. This department has a strategy spanning to the expected end-of-life of the facilities (70+ years). Long-term goals, including all planned work and the forecasts for related material requirements, are captured and held centrally with the plans further stratified to shorter-term objectives and plans.   Task: Explain the concepts of the demand chain covered in the context above. Course: Supply Chain Management

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
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Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...
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In two companies (AerCo, NuCo), the demand was managed centrally using information gathered from decentralised units and remotely from the assets in the field. Demand management at AerCo is performed by a quarterly review of the orders for new assets and the forecast of demand for aftermarket parts. This review is performed centrally to the business although information is gathered from around the business, including overseas bases and real-time data that have been analysed for issues that will have an impact upon the demand placed upon the supply chain. This is due to AerCo operating in a make-to-order (MTO) environment for production parts—with a 3–5 years lead-time for customers—and a make-to-stock (MTS) environment for aftermarket—where the requirement for a replacement part or system may be instantaneous if the aircraft has suffered unexpected damage. This quarterly review of demand is then placed upon the supply chain through an explicit process that ensures that orders can be met fully within leadtime. NuCo have a central department managing the support of the site, which is updated regularly depending on the condition of assets within the facility. This department has a strategy spanning to the expected end-of-life of the facilities (70+ years). Long-term goals, including all planned work and the forecasts for related material requirements, are captured and held centrally with the plans further stratified to shorter-term objectives and plans.

 

Task: Explain the concepts of the demand chain covered in the context above.

Course: Supply Chain Management

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