SUPPLY CHAIN STRATEGY

E d w a r d H . F r a z e l l e , P h . D . RightChain™ include (1) the Star Model of Supply Chain Logistics (the RightChain™ Star), (2) Frazelle’s Framework of Supply Chain Logistics, (3) the Wrong Chain Model of Supply Chain Sub- Optimization, Dysfunction and Conflict, (4) the RightChain™ Supply Chain Integration Model, and (5) the RightChain™ Value Creation Model. (I stopped at five because any more would have required a model to explain the models and a framework to explain the frameworks.) The RightChain™ Star Model of Supply Chain Logistics Our star model of supply chain logistics (Figure 2) is an answer to a desperate prayer for a means to explain to a mean-spirited, cynical CEO of a very large chemical company why he did not need the $15 million warehouse and hundreds of jobs he had just gone on TV promising to a downtrodden local economy. I had to have something to explain that a physical warehouse was not the best answer to the absence of a customer service policy, excess inventory, disintegrated sources of supply, and uncoordinated transportation operations. The answer was to eliminate or minimize the need for physical warehousing by developing (1) a customer service policy, (2) determining the amount of inventory required to support that service policy, (3) optimizing and coordinating their manufacturing schedules, | 15

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