Leading Supply Chain Management Systems

Question: Compare and contrast two leading Supply Chain Management Systems.

Q: Compare and contrast between an Integrated Make-to-stock Model and Continuous Replenishment Model

This study compares and contrasts the Integrated Make-to-stock Model and the Continuous Replenishment Model of supply chain management. An Integrated Make-to-stock Model helps forecast and meet customer demand in real-time and helps reduce potential inventory losses and expenses (Peeters & van Ooijen, 2020). The continuous Replenishment Model is concerned with notifying suppliers about sales and the flow of inventory, helps in effective inventory management, and reduces potential inventory losses. An Integrated Make-to-stock Model is more flexible and can be applied to jobs where demand fluctuates abruptly. In contrast, a Continuous Replenishment Model is more rigid and needs to be applied to jobs with stable demand unless it may lead to potential inventory losses.

An Integrated Make-to-stock Model allows enterprises to effectively react or respond to real-time changes and modify operations or productions based on market demand. The continuous Replenishment Model does not allow for modified operations or productions and may fail to effectively perform with a fluctuation in demand (Friday et al. 2021). Starbucks has successfully implemented Integrated Make-to-stock Model that allows them to respond to changes in demand. McKesson Co. successfully implemented the Continuous Replenishment Model of supply chain management, and it helped them to build a generic pharmaceutical distribution hub and allowed them to effective resourcing.

References   

Friday, D., Savage, D. A., Melnyk, S. A., Harrison, N., Ryan, S., & Wechtler, H. (2021). A collaborative approach to maintaining optimal inventory and mitigating stockout risks during a pandemic: capabilities for enabling health-care supply chain resilience. Journal of Humanitarian Logistics and Supply Chain Management. https://doi.org/10.1108/JHLSCM-07-2020-0061

Peeters, K., & van Ooijen, H. (2020). Hybrid make-to-stock and make-to-order systems: a taxonomic review. International Journal of Production Research, 58(15), 4659-4688. https://doi.org/10.1080/00207543.2020.1778204