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SystemsThinkingPresentation.pptxSupply chain and logistics operations system
Tragedy of the commons
System Description
All companies that are in the business of providing services or creating and distributing products to its customers utilize the supply chain system
The supply chain system is an organized structure that interconnects the different factions of an organization in the common goal of delivering to their customers.The supply chain and logistics system uses a collection of operations to successfully and efficiently deliver to their customers.
System Stakeholders
Company Owner
Company Board of Directors
Company Investors/Shareholders
Company Employees
Finance Department
Supply Chain Department
Marketing Department
Operations Department
All Organization Departments
Product Designers
Product Manufacturers
Company Vendors
Transportation Providers/Partners
Project Managers
Team Leads
Product Consumers
Service Consumers
Service/Subject Experts
Global Supply Chain
Regional/National Economy
System components
Human Organizational Structures
Financial Management and Allocation Structure/System
Information Management Systems
Resource Management Systems
Communication Methods
Production Method
Manual Distribution Methods
Material Handling Systems
Logistics Organizational Methods
Operations and Logistics Monitoring System
Customer Communication Methods
System Interrelations
Stakeholder expectations & operations
Guidance and approvals
Documentations, standards and requirements
Finances and Resource Allocation
Manufacturing & Distribution systems
Facilities, people, and equipment
Transportation systems, vehicles, and loading docks
Communication between departments
System Goals
Meet consumer demand for distribution of products
Reach as many possible consumers within the specified market and demographic
Deliver products to customers as quickly as possible
Keep products in stock to meet high demands
Maintain an organized structure to ensure smooth deliveries to customers
Keep manufacturing, storage, and distributions costs as low as possible
Capital Allocations
Production and Sustainability Resources
Production Rates
Rates of Delivery
Customer Satisfaction
Organization Goals & Objectives
Product Plans/Design
Sales & Demand Projections
Corporate Direction
Resource Availability
Production Operations External and Internal Maintenance
Coordination of Finished Products & Inventory Rates
Company Profit
ROI
Return Customers
Initial Investment
Time and Quality Assurance
Inventory & BackLog Rates
Rework Processes
Customer Retention Rate
Customer Feedback
System diagram:
Production Rates
Customer Satisfaction
Rates of Delivery
Capital Allocations
System Stocks
Production and Sustainability Resources
Stocks:
InFlows:
OutFlows:
Feedback Loops:
Andrew
Production Force
Technical Specialists
Service Providers/Management
Service Deliverables
Products
Distributors
Organization Leadership
Departmental Divisions
Customers
Company Supply Chain and Logistics System Flow
System Diagram NArrative
The supply chains system starts with an initial investment for operations that allows corporate to decide what areas to invest capital into. Availability of resources is contingent upon how much funding is allotted by corporate and determines production levels and capital available to invest in sustainability. Both initial investments into production operations and internal maintenance are support required production rates. In our supply chain system, production yields inventory which is then delivered to customers. The rate of delivery can be affected by any defects within production which require the products to be reworked. Customer satisfaction relies on quality products being delivered. Higher customer satisfaction can lead to increased profit for the company because it means more customers will return to buy the products again. Customer feedback can lead to developing new products or production processes for the products within the company. These new ideas can be invested into for corporate to allocate funding towards. This leads to another cycle within the supply chain system.
Why is this an example of “The Tragedy of Commons”
The concept of the “tragedy of commons” boils down to greed overcoming the greater good. This economic problem comes from people, operations or companies focusing on immediate gains without thinking of the long-term effects of their actions. After the overconsumption and exhaustion of supplies the resource itself will never be able to stay at a sustainable place.
The supply chain and logistics system’s role is to deliver products to the consumer and meeting their demand which often leads to the depletion of products that recklessly get restocked by a company whose goal is to make the most profit possible. For example, these products can be nonrenewable energy sources that can be completely consumed to the point of no return which allows for permanent damage to our environment. This affects everyone as a whole and only serves a few for a short period of time.
Long-Term Scenarios
ROJO World
