Course Name/Title OMS 620 Supply Chain Management

Program
(e.g. MB or Ph.!."
MB
#e$uire% or ele&ti'e (le&ti'e
)nstru&tors Name an% email
a%%ress
#a'i nupin%i (anupin%i(a*umi&h.e%u"
Num+er o, Class sessions in
&ourse
-2 &lass meetings
!uration o, ea&h &lass (minutes" -.0 minutes
Typi&al num+er o, stu%ents
enrolle% in re&ent &ourse
o,,erings.
/6 stu%ents (a&ross 0 se&tions"
Te1t+oo2 3se% Supply Chain Management Strategy4 Planning4 an%
Operation4 Chopra an% Mein%l4
2n%
e%ition4 Prenti&e 5all
Supply Chain Management
Pro,essor #a'i nupin%i
Course Syllabus
OMS 620 Supply Chain Management
Fall 2004
Professor Ravi Anupindi
Class Meetings:
Sec 001: Thursday 2:10-:10p! "#12$%&
Sec 002 ' (1: Thursday $-10p! "#12$%&
OMS 620: Suppl y Chai n Manage me nt
Bi ographi cal I nf ormat i on
Prof essor a!i "nupi n#i
Contact$
Phone$ (607" 6-89.62-
Fa%$ (607" /069026/
&'Mail$ anupin%i:umi&h.e%u
Office (ours$ Thurs%ay 696pm ; +y appointment (#oom !02-6"
a!i "nupin#i is Mi&hael an% Mary <. 5allman =ello> an% an sso&iate Pro,essor o, Operations Management at the Mi&higan
Business S&hool. Pre'iously he taught at the Stern S&hool o, Business4 Ne> ?or2 3ni'ersity an% the <ellogg @ra%uate S&hool o,
Management4 North>estern 3ni'ersity. 5e tea&hes Operations Management (&ore" an% an ele&ti'e in Supply Chain Management. 5e has
taught in se'eral e1e&uti'e e%u&ation programs at the Mi&higan Business S&hool4 Stern S&hool o, Business4 <ellogg @ra%uate S&hool o,
Management an% the Carnegie Bos&h )nstitute. 5e is the &o9author o, a te1t+oo2 Managing Business Pro&ess =lo>s4 Prenti&e 5all4 -///.
5is main resear&h area is supply &hain management >ith spe&i,i& ,o&us on supply &ontra&ts4 %e&entraliAe% %istri+ution systems >ith (9
Business appli&ations4 an% retail operations. 5e spearhea%e% the %e'elopment o, BeerN(TB #emote @roup So,t>are ,or Stu%ying Supply
Chain !ynami&s 9 a plat,orm ,or e1perimental resear&h in supply &hains. 5is >or2 has appeare% in lea%ing Cournals li2e Management
S&ien&e4 Operations #esear&h4 Mar2eting S&ien&e4 an% ))( Transa&tions. 5is &onsulting e1perien&e an% spea2ing engagements in&lu%e
)BM4 !igital <no>le%ge sso&iates4 #ealTime!ata4 )n&.4 M&!onal%Ds Corp.4 Bu%get @roup )n&.4 !eloitte ; Tou&he4 <ellogg lumni
sso&iation o, Chi&ago4 Eilson Sporting @oo%s4 3S@ Corporation. 5e is on the %'isory Boar% o, the Center ,or Supply Chain
Management at the Management !e'elopment )nstitute4 @urgoan4 )n%ia. 5e is a Senior (%itor ,or the Fournal o, Manu,a&turing an%
Ser'i&e Operations Management4 an% sso&iate (%itor o, Operations #esear&h4 Management S&ien&e4 Na'al #esear&h Gogisti&s4 an% ))(
Transa&tionsB S&he%uling an% Gogisti&s. Pro,essor nupin%i re&ei'e% a Ph.!. in Management o, Manu,a&turing an% utomation ,rom
Carnegie Mellon 3ni'ersity in -//04 an M.(. in utomation ,rom the )n%ian )nstitute o, S&ien&e4 Bangalore4 )n%ia4 an% a B.(.(5ons." in
(le&tri&al an% (le&troni&s (ngineering ,rom Birla )nstitute o, Te&hnology an% S&ien&e4 Pilani4 )n%ia in -/.2.
Page 2 of 14
OMS 6 2 0 : S u p p l y Ch a i n Ma n a ge me n t
The ,un&tion o, supply &hain management is to %esign an% manage the pro&esses4 assets4 an% ,lo>s o, material an% in,ormation re$uire%
to satis,y &ustomersH %eman%s. Supply logisti&s relate% &osts a&&ount ,or 20928I o, a typi&al ,irmHs total &ost. On the re'enue si%e the
supply &hain %e&isions ha'e a %ire&t impa&t on the mar2et penetration an% &ustomer ser'i&e. @lo+aliAation o, e&onomy an% ele&troni&
&ommer&e has heightene% the strategi& importan&e an% o, supply &hain management an% &reate% ne> opportunities ,or using supply
&hain strategy an% planning as a &ompetiti'e tool. (le&troni& &ommer&e has not only &reate% ne> %istri+ution &hannels ,or &onsumers +ut
also re'olutioniAe% the in%ustrial mar2etpla&e +y ,a&ilitating inter9,irm &ommuni&ation an% +y &reating e,,i&ient mar2ets through tra%ing
&ommunities. Moreo'er &om+ination o, enterprise in,ormation in,rastru&ture an% the )nternet has pa'e% the >ay ,or a 'ariety o, supply
&hain optimiAation te&hnologies. There,ore4 the o+Ce&ti'es o, this &ourse areB
-. To %e'elop an un%erstan%ing o, 2ey %ri'ers o, supply &hain per,orman&e an% their inter9relationships >ith strategy an% other
,un&tions o, the &ompany su&h as mar2eting4 manu,a&turing an% a&&ounting.
2. To impart analyti&al an% pro+lem sol'ing s2ills ne&essary to %e'elop solutions ,or a 'ariety o, supply &hain management an%
%esign pro+lems an% %e'elop an un%erstan%ing ,or use o, in,ormation te&hnology in supply &hain optimiAation.
0. To %e'elop the a+ility to in&orporate B2B an% B2C ele&troni& &ommer&e in supply &hain %esign an% optimiAation.
7. To un%erstan% the &omple1ity o, inter9,irm an% intra9,irm &oor%ination in implementing programs su&h as e9&olla+oration4
$ui&2 response4 Cointly manage% in'entories an% strategi& allian&es.
8. To %e'elop the a+ility to %esign logisti&s systems an% ,ormulate integrate% supply &hain strategy4 so that all &omponents are not
only internally syn&hroniAe% +ut also tune% to ,it &orporate strategy4 &ompetiti'e realities an% mar2et nee%s.
Pa g e 3 o f 1 4
OMS 620: Suppl y Chai n Manage me nt
OMS 620 S)PP*+ C("I, M","-&M&,.
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The gra%e you re&ei'e ,or the &ourse is inten%e% to &erti,y your %emonstrate% pro,i&ien&y in the &ourse material. Pro,i&ien&y >ill +e
estimate% +y measuring your per,orman&e on (-" MaCor su+missions (group an% in%i'i%ual"4 (2" Short su+missions4 (0" )n9&lass
&ontri+ution4 an% (7" =inal group proCe&t. ?our &ourse gra%e >ill +e +ase% on a >eighte% e'aluation o, the ,ollo>ing &ategoriesB
Ma7or Submissions
/208 ofgr ogroup case12h
8 r
each
208
cases5
Short Submissios 1128
IIn'Class Contribution 11198
/Final Pro7ect /-roup5 11228
.&:. ",6 C"S&;&"6I,- P"C<&.
The &ourse is %eli'ere% through a &om+ination o, le&tures an% &ases. ll the rea%ings an% &ases are &ontaine% in the &ase pa&2et
an% >ill +e supplemente% +y &lass le&tures. #e$uire% materials a'aila+le at the +oo2store
-. Coursepa&2B &ases an% rea%ings.
2. Supply Chain Management Strategy, Planning, and Operation (Se&on% (%ition" +y Chopra an% Mein%l4 Prenti&e 5all4
)n&.4 2000.
Supply Chain Management Strategy, Planning, and Operation (hen&e,orth re,erre% to as SCM9CM" >ill +e the main te1t ) >ill
,ollo>. Ehile ) ha'e assigne% 'arious &hapters to rea% ,or e'ery &lass (see %etaile% sylla+us later"4 ) %o not e1pe&t you to rea% these
&hapters B(=O#( &lass (espe&ially4 the te&hni&al material ,rom Chapter 7 on>ar%s". ) e1pe&t you to rea% these portions %uring the
term4 pre,era+ly as >e progress through the &ourse. ) >ill pro'i%e a %etaile% rea%ing gui%e (gi'ing spe&i,i& se&tions to rea%4
material to ,o&us on4 list o, suggeste% pro+lems4 et&.". See " C T o o l s -> R e s o u r c e s -> Textbook" ,ol%er.
P&&=)ISI.&S
Page 4 of 14
OMS 620: Suppl y Chai n Manage me nt
s a pre9re$uisite ,or this &ourse4 ) e1pe&t 2no>le%ge e$ui'alent o, >hat is &o'ere% in the &ore Operations Management &lasses
OMS 88- an% OMS 882. Spe&i,i&ally4 ) e1pe&t 2no>le%ge o, +asi& in'entory management (in'entory issues un%er e&onomies o,
s&ale4 %eman% un&ertainty4 an% lea% time". Spe&i,i&allyB
(&onomies o, S&ale lea%ing to &y&le sto&2L the (&onomi& Or%er Kuantity ((OK" ,ormulaL
Con&ept o, #eor%er Point (#OP"
!eman% 3n&ertainty4 sto&29outs4 an% ser'i&e le'els.
Sa,ety sto&2 to +u,,er against %eman% un&ertainty. Cal&ulation o, sa,ety sto&2 to a&hie'e a &ertain ser'i&e le'el
Physi&al &entraliAation o, sto&2s (e.g.4 satis,ying %eman% ,rom a single >arehouse instea% o, multiple >arehouses" to
re%u&e in'entory an% yet maintain the same ser'i&e le'elL
), youDre un,amiliar >ith these topi&s (or to re'ie> these topi&s"4 please &onsult one the ,ollo>ing re,eren&es (the ,irst one is the
te1t+oo2 ,or OMS 88- an% OMS 882"B
nupin%i4 et.al.4 Managing Business Pro&ess =lo>s4 Prenti&e 5all4 )n&. (Chapters 6 an% 6L e1&lu%ing se&tions 6.6.2 an%
6.7"4
OMS 620 te1t+oo2 (+y Chopra an% Mien%lL see re,eren&e a+o'e"B Chapter -0 (pages 27/9286"4 Chapter -- (pages 2/69
0004 in&lu%ing e1ample --.2L se&tion --.7 ,rom pages 0-09020 up to se&tion on MSu+stitutionM".
) >ill not &o'er these material in %etail in &lass +ut merely re'ie> it. To assist you in un%erstan%ing your grasp o, this material4 ) ha'e
prepare% a short pro+lem set >ith solutions that &o'er the rele'ant &on&epts. ?ou may %o>nloa% the %o&ument title%
M)n'entory #e'ie>M ,rom the
M
C T o o l s -> Resources -> Week02: Inventory Management" ,ol%er. =urthermore4 try to
sol'e $uestion - in the Palu @ear &ase (s&he%ule% ,or Eee2 2".
C*"SS (OM& P"-&
) ha'e &reate% a home page (using CTools" ,or the &lass >hi&h is &ommon ,or all se&tions. )t &an +e a&&esse% ,rom the 3#GB
httpsB//&tools.umi&h.e%u/portalNsite
O
-0/0/6/666/069-6806/0
&&essing this >e+ site >ill allo> you to loo2 at announ&ements ,or the &ourse an% %o>nloa% all ,iles relate% to the &ourse.
) may use (1&el >or2+oo2s %uring the &ourse as part o, the le&ture %is&ussion. These &an +e %o>nloa%e% ,rom the >e+ site liste%
a+o'e. ), you ha'e a laptop4 try an% +ring it to &lass >ith these ,iles so you &an also >or2 along as ) use them in &lass. This is not a
re$uirement +ut you may ,in% it use,ul.
M">O S)BMISSIO,S ' -O)P 3 I,6I?I6)"*$ C"S& @I.&)PS /2085
Case reports are %ue spe&i,i& &ases as i%enti,ie% in the sylla+us. They are %ue in the &lass session ,or >hi&h they are assigne%. )
ha'e s&he%ule% ON( group &ase su+mission an% TEO in%i'i%ual su+missions. ), you (or your entire group e1pe&ts" to +e a+sent
,rom &lass please lea'e your report in my mail+o1 or mail it to me.
The reports are gra%e% ,or +oth &ontent an% presentation. goo% paper shoul% &learly an% su&&in&tly state the re&ommen%ations in
the ,irst paragraph to pro'i%e the rea%er >ith a ,rame>or2. (), a lengthy %es&ription o, the re&ommen%ation seems ne&essary4 appen%
it to the report." The remaining paragraphs shoul% ea&h present a maCor part o, the rationale ,or the re&ommen%ation in terms o,
the %esira+le an% un%esira+le &onse$uen&es o, a%opting it. The rationale must &onsi%er &apa+ilities that the logisti&s system un%er
stu%y nee%s to e1&el at4 an% ho> the &urrent system either pro'i%es these &apa+ilities or ,ails to pro'i%e them.
Some &ommon pro+lems in preparing reportsB
Present at i on rel at ed: " goo# report is ,O. a chronology of analysis /i0e0A ansBering the Cuestions liste# in
seCuence5A but a clearly articulate# statement of recommen#ation an# support0 ), there are options un%er
&onsi%eration in the &ase that are reCe&te% +y you4 a &lear rationale ,or your %e&ision shoul% +e pro'i%e%. =a&ts state% in
the &ase nee% not +e restate% unless use% to ma2e a point. ) >ill assume that the most important issues are raise% in the
report an% that all else is less important to the >riter. Both %esira+le an% un%esira+le &onse$uen&es shoul% +e ,a&tually
state% an% supporte%. )n the o'erall e'aluation o, the report the %is&ussion o, all &onse$uen&es o, the re&ommen%ation is o,
the greatest importan&e. ?ou must &learly %is&uss ho> your re&ommen%ations ai% in the %e'elopment o, &apa+ilities
Page of 14
OMS 620: Suppl y Chai n Manage me nt
that are important ,or the logisti&s system un%er stu%y. =inally4 you shoul% &learly e1plain the logi& o, any analysis.
"nalysis relate#$ Other reports su,,er ,rom ina%e$uate analysis. nalysis ,or a report is a time &onsuming an% intelle&tually
&hallenging tas2. (a&h &ase has a set o, $uestions >hi&h are essentially a gui%e to help you >ith the analysis. The o+Ce&ti'e
is to e'aluate a &omplete range o, alternati'es an% anti&ipate an% %is&uss the ,ull &onse$uen&es o, your re&ommen%ation.
#eports shoul% +e type% >ith -.8 line9spa&ing an% shoul% not e1&ee% 7 pages4 not in&lu%ing appen%i&es an% e1hi+its. (1hi+its
appen%e% to the reports nee% not +e type%4 +ut shoul% +e neat an% easy to un%erstan%. s per the honor &o%e4 an in%i'i%ual
shoul% in&lu%e his/her name on a report only i, they ha'e &ontri+ute% to the analysis.
ll group &ase >rite9ups shoul% +e %one in teams o, no more than f our mem+ers in or%er to stri2e a +alan&e +et>een the +ene,its
%eri'e% ,rom group >or2 an% the &ost %ue to in&rease% logisti&al &omple1ity.
.he honor co#e stipulates that
you Bill #o the in#i!i#ual submissions by yourself an# not consult Bith anyoneD
you may put your name on a group Brite'up only if you contribute# to the teamEs #iscussionD
you may not refer to case Briteups from classes offere# in earlier semester0
.he premise of acade!i c i nt egri t y is that i#eas shoul# be attribute# to their source0 .hereforeA please acFnoBle#ge the
main source/s5 of #ataA factsA an# i#eas /other than the instructor5 in all your Britten BorF an# Bhen you maFe a
present at i on0
s the &ourse progresses an% +e,ore any &ase assignment is %ue4 please &he&2 your email an% the Ee+ ,or &ourse ,iles
(sprea%sheets4 et&." an% any announ&ements.
S(O. I,6I?I6)"* S)BMISSIO,S /1285
)n a%%ition to the maCor &ase analyses4 >e >ill +e %is&ussing se'eral &ases. ) e1pe&t that you prepare ea&h o, these &ases +e,ore
&oming to &lass. ) ha'e outline% suggeste% $uestions ,or %is&ussion. Please prepare a short >riteup (no more than ON( page"
gi'ing your thoughts on ONG? the i%enti,ie% (itali&iAe% an% in re%" $uestions. The o+Ce&ti'e in see2ing this short su+mission is to
ensure that you ha'e put in an honest e,,ort to prepare the &ase. "ll I am looFing for from this short Briteup is that your ha!e
gi!en sufficient thought to the Cuestion /correctness of analysis is not of any particular concern50 "s long as you ha!e
#emonstrate# thisA you Bill get full cre#it0
I,'C*"SS P".ICIP".IO, ; CO,.IB).IO, /1985
)n a typi&al &lass session4 one or more stu%ents >ill +e as2e% to +egin %is&ussion o, a sele&te% topi&. ) e1pe&t you to +e prepare%
+e,ore &oming to &lass4 espe&ially on the %ates >e >ill ha'e a &ase %is&ussion. Criteria ) >ill use to Cu%ge e,,e&ti'e &lass
parti&ipation in&lu%eB
)s the parti&ipant a goo% listenerN
re points ma%e rele'ant to the &lass %is&ussionN
re they lin2e% to the &omments o, othersN
!o the &omments sho> &lear e'i%en&e o, appropriate an% insight,ul analysis o, the &ase %ataN )s there a >illingness to
parti&ipateN
)s there a >illingness to test ne> i%eas4 or all &omments Msa,eMN
!o &omments &lari,y an% highlight important aspe&ts o, earlier &omments an% lea% to a &learer statement o, the &on&epts
+eing &o'ere%N
FI,"* PO>&C. /2285$ <&+ 6".&S$ S&P.&MB& 90A 2004 /POPOS"* 6)&5D 6&C&MB& 14A 2004
/&PO. 6)&50
The ,inal proCe&t may +e %one in%i'i%ually or in groups ()t >oul% +e +est to use the same groups that you are using ,or &lass
Page 6 of 14
OMS 620: Suppl y Chai n Manage me nt
assignments. 5o>e'er this is not a re$uirement". .he pro7ect Bill account for 228 of the o!erall gra#e0 .he pro7ect is #ue in the
last class on 6ecember 14A 20040 "ll reports shoul# be type# Bith a ma%imum of 12 pages /102 line'spacingA 11 or 12 pt0
Font50
"nother important #ea#line is September 90A 2004 >hen ) e1pe&t a one page proposal ,rom ea&h group a+out their proCe&t. My
o+Ce&ti'e at this stage is to ma2e sure that you ha'e %e&i%e% +y this stage on a spe&i,i& proCe&t so that you &an spen% the
remaining si1 >ee2s >or2ing on it.
t this time4 ) am not sure i, ) >ill ha'e presentations o, proCe&ts. +out mi%9>ay through the &ourse ) >ill ha'e a +etter i%ea. ('en
i, >e ha'e proCe&t presentations4 gi'en the &lass siAe4 it is not ,easi+le ,or me to as2 all groups to present their proCe&ts.
There are three possi+le out&omes ,rom a proCe&t report as ,ollo>sB
l To analyAe an e1isting logisti&s pro&ess an% suggest any impro'ements that nee% to +e ma%e. (1amples in&lu%e a stu%y o,
the %istri+ution system an% store %eli'eries at M&!onal%s4 %esign o, a logisti&s system ,or a manu,a&turer o, re,rigeration
e$uipment4 an% an analysis o, intermo%al mo'ement ,or a railroa%.
l To stu%y supply &hain pra&ti&es in in%ustry ,rom the point o, %es&ri+ing ris2s4 +ene,its4 +est pra&ti&es along >ith in%ustry
e1amples o, ea&h.
l ToPPPi%enti,y a +usiness opportunity (,or e1ample selling ,urniture on line" in'ol'ing a pro%u&t an% +uil% a +usiness plan
>ith a ,o&us on supply &hain issues. The goal is to i%enti,y the +usiness opportunity an% %esign the i%eal supply &hain ,or it.
The proCe&t shoul% in&lu%e implementation %etails.
My e1pe&te% outline ,or the three types o, proCe&ts are %is&usse% +elo>B
"nalyGe an e%isting supply chain process an# suggest impro!ement
The proCe&t report shoul% not +e a %etaile% %es&ription o, e'erything you ha'e %one +ut a spe&i,i& set o, o+ser'ations an%
re&ommen%ations. )t shoul% +egin >ith an e1e&uti'e summary no longer that 280 >or%s. ll %etails are to +e put in an appen%i1 in
the ,orm o, e1hi+its4 ta+les et&. The general gui%elines ,or the proCe&t are as ,ollo>sB
-. (1e&uti'e summary
2. !e,ine the pro&ess an% the &onte1t (+usiness unit" in >hi&h it operates.
0. Ehat is the strategy / mar2et o, the +usiness unitN
7. Ehat %oes this imply in terms o, the supply &hain pro&ess you are stu%yingN Ehat must this pro&ess +e a+le to %o
par t i&ularly >ell in terms o, &ost4 time4 $uality4 a n % ,le1i+ilityN The hea%ings mentione% here are +roa%. ?ou are e1pe&te% to
i%enti,y spe&i,i& %imensions along >hi&h the pro&ess is e1pe&te% to %o parti&ularly >ell.
8. !es&ri+e the &urrent pro&ess stru&ture in terms o, in,ormation4 in'entor y 4 transportation4 an% lo&ation.
6. !is&uss the pro&ess &apa+ilities4 gi'en the &urrent stru&ture4 in terms o, the spe&i,i& %imensions i%enti,ie% +y you in 7.
6. !is&uss e1isting pro+lems an% >ea2nesses in the &urrent pro&ess. Ehat a%%itional &apa+ilities %oes the pro&ess nee% to
%e'el op.
.. 5o> shoul% the pro&ess +e restru&ture% to %e'elop these &apa+ilitiesN !is&uss >hy the &hanges suggeste% +y you >ill
ha'e the %esire% e,,e&t along the 2ey %imensions i%enti,ie% +y you.
/. !is&uss ho> the suggeste% &hanges shoul% +e implemente% >ith a time line. (1plain any resistan&e you may ,a&e in
implementing the &hanges.
Please note that these are general gui%elines. ) am not loo2ing ,or a proCe&t report >ith nine points in the se$uen&e liste% a+o'e. ) ha'e
liste% the points that ) ,eel are important in most reports. Please ,eel ,ree to a%% to or alter the a+o'e list as +est ,its your proCe&t.
Stu#y supply chain practices in in#ustry
The o+Ce&ti'e here is to stu%y supply &hain pra&ti&es in in%ustry su&h as
l (9+usiness (B2C or B2B" an% itDs impa&t on logisti&s an% supply &hain in an in%ustry or &ompany l
)T ,or Supply Chain Colla+oration
Page ! of 14
OMS 620: Suppl y Chai n Manage me nt
l Supply Chain Qisi+ility
l #a%io =re$uen&y )%enti,i&ation !e'i&es (#=)!" ; Supply Chain l
Thir% party logisti&s
l Earehouse Management Systems
l )T in Transportation Systems
l Supply Chain Se&urity
l Supply Chain an% the (n'ironment
l Category Management
l Out9Sour&ing
Please %o not restri&t yoursel, to the a+o'e list. )t is meant simply as a starting point. )n ea&h report ) e1pe&t the ,ollo>ingB
-. %es&ription o, the supply &hain pra&ti&e in&lu%ing its 2ey elements an% its role in the o'erall supply &hain
2. MaCor +ene,its o, the pra&ti&e.
0. MaCor ris2s/&ost o, the pra&ti&e
7. <ey issues in %esigning an% implementing the pra&ti&e
8. Ehi&h &ompanies is this pra&ti&e i%eally suite% ,orN Ehi&h &ompanies may it not +e suita+le ,orN
6. (1amples o, &ompanies that are su&&ess,ully using the pra&ti&e in&lu%ing +est pra&ti&es.
6. (1amples o, &ompanies that ha'e +een unsu&&ess,ul in their implementation o, the pra&ti&e an% possi+le
reasons.
On&e again4 please %o not ,eel +oun% +y the a+o'e stru&ture. )t is simply meant to help you get starte%.
Buil# a business plan Bith a pro#uct focus
The o+Ce&ti'e o, this report is to i%enti,y a +usiness opportunity (pre,era+ly on the >e+" in'ol'ing pro%u&ts >here supply &hain
issues are signi,i&ant. This &oul% +e %one ,or a parti&ular &ompany or an in%ustry in general. The +usiness plan shoul% %etail the
supply &hain opportunity an% ho> it >ill help the +usiness position itsel, strategi&ally. The report shoul% also %etail
implementation issues.
<&+ 6".&S$ S&P.&MB& 90A 2004 /POPOS"* 6)&5D 6&C&MB& 14A 2004 /&PO. 6)&50
S.)6&,. I,FOM".IO, FOM
P l e a s e % o >n l o a % a s t u % e n t i n , o r ma t i o n , o r m (CTools -> Resources -> yllabus ! Instruct"ons ! #u"$el"nes%&
,ill it out gi'ing in,ormation a+out yoursel,4 an% su+mit a ("6 COP+ to me in &lass.
&F&&,C&S ; S)--&S.&6 &"6I,-S$
TB.
Page " of 14
OMS 620: Supply Chain Management
OM620 S)PP*+ C("I , M","-&M&,.
/ .hur 2$ 10' 2$ 10pm an# 4' 10pm5
&-)*" C*"SS&S$
l Septem+erB /// //-6 //20 (R guest spea2er" //00 l
O&to+erB -0/6 -0/-7
l No'em+erB --/7 --/-- --/-.
l !e&em+erB -2/2 -2// -2/-7 (R guest spea2er"
M">O I,6I?I6)"* S)BMISSIO,S "& 6)& O,$ //20(G<O &ase analysis" -2/2 (5amptonshire (1press"
M">O -O)P S)BMISSIO,S "& 6)& O,$ -0/6(SportO+ermeyer &ase analysis" -2/-7(,inal proCe&t report"
S(O. I,6I?I6)"* S)BMISSIO,S "& 6)& O,$ /// (ChemBright"4 //-6 (Palu @ear"4 //00 (National Bi&y&le ; team proCe&t proposal"4 -0/-7 (=rito Gay N!
Merloni"4 --/7 (ppli&hem"4 --/-- (Barilla4 Sp"4 --/-. (Metal Cra,t"4 -2/2 (Qi%eo Qault"4 -2// ()TC eChoupal"4 -2/-7 (Gi;=ung"
I,.O6)C.IO,$ S.".&-+ ",6 O*& OF S)PP*+ C("I,
Ob7ecti!e$ )ntro%u&tion an% O'er'ie> o, the &ourseL Supply Chain Strategy =rame>or2 ea#$ SCM9CMB
Chapters -90
Prepare$ Ca#e: Chem$right, %n& '()6(3)026*+ Consi%er the ,ollo>ing $uestions ,or %is&ussion an% su+mit a -9page >rite up ans>ering the itali&iAe%
$uestion(s"B
1+ ,hat i# your e-aluation of Chem$right.# #trategy/ 0o1 #ound i# the 2u#ine## at thi# point/ ,hat &hange# &ould Ste-e 3itale ma4e to impro-e
&ompany profita2ility/
2+ Ehat shoul% Ste'e Qitale %o a+out the pri&e >arN
3+ ), this threat is surmounte%4 >hat a'enues o, e1pansion appear most promising ,or ChemBrightN
I,?&,.O+ M","-&M&,. I, S)PP*+ C("I,S
&CO,OMI&S OF SC"*& A ),C&."I,.+A C&,."*IH".IO,
Ob7ecti!e$ Ee start this mo%ule >ith %is&ussion on the management o, in'entory in the supply &hain to ensure ,it >ith state% strategi& goals. Our ,o&us >ill
+e to un%erstan% 2ey in'entory relate% le'ers that may +e use% to impro'e the per,orman&e o, a supply &hain. Most o, the +asi& &on&epts >ere intro%u&e% in
the Operations Management &ore an% ) e1pe&t you to +e ,amiliar >ith these. To test your grasp o, this material4 you shoul% attempt to &omplete the $uestions
in the Palu @ear &ase. ) >ill only $ui&2ly re'ie> these. Su+se$uently4 ) >ill e1pan% on a ,e> a%%itional i%eas in %is&ount poli&ies4 %ealing >ith multiple
pro%u&ts4 et&.
1 0 S e p t 0 I
2 . S e p t . - 6
Page ( of 14
OMS 620: Supply Chain Management
ea#$ l SCM9CMB Chapter -09--
l )n'entory #e'ie> (see &oursetools"
l Note on Perio%i& #e'ie> Poli&y in )n'entory System
Prepare$ Ca#e: Palu 5ear+ Consi%er the ,irst $uestion at the en% o, the &ase.
6oBnloa#$ (1&el =ile &ontaining in'entory e1amples (in'e19se.1ls". Play >ith the >or2+oo2 in'e1.1ls asso&iate% >ith e1amples in the +oo2 &hapter.
These e1amples >ill +e %is&usse% in &lass using the >or2+oo2.
6IS.IB).IO, S+S.&M 6&SI-,
Ob7ecti!e$ Ee >ill apply all the &on&epts learne% in the last &lass to the re%esign o, a %istri+ution system 'ia the G<O &ase. )n the se&on% hal, >e
>ill intro%u&e the ne>s'en%or mo%el ,or %e&ision ma2ing un%er un&ertainty.
ea#$ l SCM9CMB Chapter -29-0
l Managing Supply Chain )n'entoriesB Pit,alls an% Opportunities (Gee an% Billington"
Ma7or Ca#e: Managing %n-entorie# at 678O, %n&+ (SCM9CMB Chapter --4 pages 0089006". ?our report shoul% a%%ress the $uestions at the en% o,
Submission the &ase in the +oo2.
/In#i!i#ual5$
)*+ST SP+A,+R: Mr- .RA# /0T1+RA2#3 )lo4al Strategy Manager3 *PS Supply Chain Solutions
&SPO,SI?& S)PP*+ C("I,S
M"SS C)S.OMIH".IO,
Ob7ecti!e$ Ee >ill start our %is&ussion o, responsi'e supply &hains >ith supply &hain %esign to manage 'ariety. )n the se&on% hal,4 >e >ill intro%u&e a
,un%amental mo%el o, %e&ision ma2ing un%er un&ertainty.
ea#$ Mass CustomiAation at 5e>lett Pa&2ar% 9 The Po>er o, Postponement4 (. =eitAinger an% 5au G. Gee4 5ar'ar% Business #e'ie>4 Fan9=e+
-//6 (S/6-0-".
Prepare 3 9ational $i&y&le %ndu#try Company ':he ,harton S&hool, ;ni-er#ity of Penn#yl-ania &a#e*+ Consi%er the ,ollo>ing $uestions ,or
Short %is&ussion an% su+mit a -9page >rite up ans>ering the itali&iAe% $uestion(s"B
Submission$
1+ Ehat are the %i,,eren&es +et>een the ne> POS an% mass pro%u&tion pro&esses.
2+ )s it e&onomi&al to ma2e the POS +i2esN
3+ 5o> &an National Bi&y&le en&ourage %ealers to parti&ipate in selling the POS +i2esN
4+ ,hat i# the minimum lead time for a 2i&y&le ordered on Saturday/ ,hat fa&tor# 1ould add to thi# lead time/ ,hat lead time #hould
9ational $i&y&le of er to their POS &u#tomer#/ ,hat a&tion# #hould they ta4e to a&hie-e thi# lead time/
Also3 su4!it a 1- page propsoal for the /05A2 PR67+CT
6oBnloa#$ -. (1&el =ile &ontaining ne>s+oy simulation (ne>s+oy.1ls"
&SPO,SI?& S)PP*+ C("I,S$
S.".&-IC SO)CI,- FO F"S(IO, -OO6S
Ob7ecti!e$ Ee >ill stu%y the &hallenges in managing sour&ing %e&isions ,or ,ashion goo%s.
ea#$ l SCM9CMB Chapter -29-0
90 Sept. 20
40 Sept0 90
20 O&t. 6
Page 10 of 14
OMS 620: Supply Chain Management
l Or%ering Multiple )tems >ith !eman% 3n&ertainty an% Capa&ity Constraints
l Ma2ing Supply Meet !eman% in an 3n&ertain Eorl%4 M.G. =isher4 F.5. 5ammon%4 E.#. O+ermeyer4 . #aman4 5ar'ar% Business
#e'ie>4 May9Fune -//7 (S/7002"
6oBnloa#$ -. (1&el =ile &ontaining Or%ering Multiple )tems (multi9item.1ls"
l <ead the Sport O2ermeyer '0$S= ()6()022*+ 3se the ,ollo>ing $uestions >hen preparing your &ase report. 0gnore price
diferences a!ong styles in your analysis-
-. 3sing the sample %ata in (1hi+it -04 ma2e a re&ommen%ation ,or ho> many units o, ea&h style Eally O+ermeyer shoul%
or%er %uring the initial phase o, pro%u&tion. ssume that there is no minimum or%er siAe re$uirement4 an% that O+ermeyerDs
initial pro%u&tion &ommitment must +e at least -04000 units. ssume that an initial or%er o, -04000 units lea'es su,,i&ient &apa&ity ,or the
se&on% or%er.
2. 3sing the sample %ata in (1hi+it -04 ma2e a re&ommen%ation ,or ho> many units o, ea&h style Eally O+ermeyer shoul% or%er %uring the
initial phase o, pro%u&tion. ssume that all ten styles in the sample pro+lem are ma%e in 5ong <ong (a minimum &ommitment o, 600 units
per style or%ere%"4 an% that O+ermeyerDs initial pro%u&tion &ommitment must +e at least -04000 units. Clearly spell out the metho%ology you
ha'e use% to ma2e your or%ering %e&isions in an e1hi+it. Spell out the logi& +ehin% your metho%ology. Note that ) am not loo2ing ,or one
optimal solution. My ,o&us >ill +e on your thin2ing a+out ho> su&h an issue &an +e approa&he%.
0. Can you &ome up >ith a measure o, ris2 asso&iate% >ith your or%ering poli&yN This measure o, ris2 shoul% +e $uanti,ia+le.
7. #epeat your metho%ology no> assuming that all ten styles are ma%e in China. Ehat %i,,eren&es (i, any" resultN
8. Ehat operational &hanges >oul% you re&ommen% to Eally to impro'e per,orman&eN Clearly list the e1pe&te% +ene,its ,rom
ea&h &hange. Please try an% +e 'ery spe&i,i& in terms o, the &hanges an% +ene,its in response to this $uestion.
6. 5o> shoul% O+ermeyer management thin2 (+oth short term an% long term" a+out sour&ing in 5ong <ong 'ersus China.
Ehat sour&ing poli&y >oul% you re&ommen%N
M","-I,- .",SPO.".IO, I, S)PP*+ C("I,S
Ob7ecti!e$ Ee >ill %is&uss the %omesti& transportation in%ustry an% &onsi%er the %i,,erent mo%es a'aila+le. Ee >ill moti'ate the lin2 +et>een
transportation an% in'entory &osts in the %esign o, transportation net>or2s. Ee >ill also &onsi%er %i,,erent issues that are rele'ant >hen
ma2ing transportation %e&isions.
ea#$ SCM9CMB Chapter -7
Ca#e: >rito)7ay :he $a&4haul ?e&i#ion '0$S ()6"")104, <e-+ 3@(0*+ Consi%er the ,ollo>ing $uestions ,or %is&ussion an% su+mit a -9page >rite9up
ans>ering the itali&iAe% $uestion(s"B
-. ('aluate the %esign an% operation o, =rito9GayDs logisti&s net>or2.
2+ ?o you #upport the 2a&4haul propo#al/ ,hy or 1hy not/
0. s (% <ugler4 prepare a mar2eting plan ,or =rito9GayDs propose% +a&2haul ser'i&es. )n parti&ular4 >aht &ustomers or
mar2et segments >oul% you targetN
7. Shoul% senior management at =rito9Gay appro'e the +a&2haul proposalN ), so4 ho> shoul% the +a&2haul program+e implemente%N ),
not4 ho> shoul% =rito9Gay a%%ress its rising %istri+ution &ostsN
Ca#e: Merloni Alettrodome#ti&i Sp6: :he :ran#it Point ABperiment '0$S Ca#e ()6(0)003*+ Consi%er the ,ollo>ing $uestions ,or
%is&ussion an% su+mit a -9page >rite up ans>ering the itali&iAe% $uestion(s"B
60 O&t. -7
Ma7or
Submission
/-roup5$
Pr e pa r e 3
Short
Submission$
Page 11 of 14
OMS 620: Supply Chain Management
1+ Ehat are the &osts an% +ene,its o, MerloniDs &urrent %istri+ution systemN O, a tranit9point9+ase% systemN
2+ Should Merloni repla&e it# net1or4 of regional 1arehou#e# 1ith tran#it point#/ :o fo&u# your thought#, &on#ider the <?C# at <oma
and CatanCaro+ ,hi&h 'or 2oth* of the#e <?C# 1ould you repla&e thi# 1ith a tran#it)point #y#tem 'a##ume that <oma i# 1! 4m and
CatanCaro i# 600 4m from the C?C*+
3+ ), transit9point is to +e implemente%4 >hat &ontingen&y plans an% support systems are ne&essary to support the ne> logisti&s
net>or2N ), not4 >hat &hanges4 i, any4 >oul% you re&ommen% Merloni to ma2e to its %istri+ution systemN
Oct0 21
Oct0 2J
40 ,o!0 4
FALL STUDY BREAK - NO CLASS
MBA FORUMS - NO CLASS
F"CI*I.+ P*",,I,- I, S)PP*+ C("I,S 3 P&FOM",C& M&"S)&M&,. I, S)PP*+ C("I,S
Ob7ecti!e$ Ee >ill no> %e'elop a ,rame>or2 ,or ,a&ility lo&ation %e&isions that allo>s ,or a multi9plant4 multi9>arehouse net>or2 to supply a large
an% %i'erse &ustomer +ase. Our o+Ce&ti'e >ill +e to optimally stru&ture the %istri+ution net>or24 ta2ing into a&&ount &ost an% &ustomer
ser'i&e ,a&tors. )n the ne1t &lass >e >ill &on&lu%e the %is&ussion on lo&ation %e&isions >ithin the supply &hain >ith a &ase stu%y e1ploring su&h
%e&isions in an international setting (there >ill +e a su+mission on this &ase".
ea#$ l SCM9CMB Chapter 798
Prepare 3 CaseB ppli&hem (" (5BSS /96.8908-". !o>nloa% the $uestions (see appropriate resour&es ,ol%er ,or the session" to prepare ,or
Short %is&ussion an% su+mit a -9page >rite up ans>ering $uestion S-.
Submission$
6oBnloa#$ -. (1&el =ile &ontaining PPG)C5(M %ata (appli&he.1ls"
P&FOM",C& M&"S)&M&,. I, S)PP*+ C("I,S
Ob7ecti!e$ 3ntil no> >e ha'e %is&usse% the ,irst three primary %ri'ers o, supply &hain per,orman&e4 'iA.4 in'entory4 transportation4 an% lo&ation. Ee
ne1t turn to the ,ourth %ri'er4 namely in,ormation. Ee >ill start >ith per,orman&e measurement systems an% the role o, )T.
l CaseB #eeCommer&e ) Anhan&ing Supply Chain 3elo&ity at ?aimler Chry#ler+ Consi%er the ,ollo>ing $uestions ,or %is&ussion
(TB!".
S)PP*+ C("I, 6+,"MICS ",6 COO6I,".IO,
Ob7ecti!e$ Ee >ill start %is&ussion on the 2ey supply &hain &on&ept o, supply &hain &oor%ination. )n the &lass4 until no>4 >e ha'e %e'elope% the
+uil%ing +lo&2s o, supply &hain per,orman&e. Syn&hroniAation o, supply &hain per,orman&e is4 ho>e'er4 &riti&al to le'erage the %ri'ers
e,,e&ti'ely. Some o, you must ha'e playe% the Beer !istri+ution @ame in your &ore &lass. Ee >ill replay this game. Our %is&ussion >ill
+egin >ith it an% &ontinue on to the &auses an% managerial impli&ations o, the Bull9Ehip (,,e&t. The &onte1t >ill +e the Barilla4 Sp &ase.
ea#$ l SCM9CMB Chapter -6
l Camp+ell Soup CompanyB Gea%er in Continuous #eplenishment '0$S ()1()124*
Prepare 3 CaseB Barilla Spa (" (5BSS /96/79076". Consi%er the ,ollo>ing $uestions ,or %is&ussion an% su+mit a -9page >rite up ans>ering the
Short itali&iAe% $uestion(s"B
Submission$
Page 12 of 14
Pr e pa r e
J0 No'. - 11
OMS 620: Supply Chain Management
1+ ,hat do you thin4 are the main &au#e# for large flu&tuation# in order# o2#er-ed at the Pedrignano C?C/
2+ ,hat do you thin4 of the D%:? program/ ,hat a&tion# #hould $arilla ta4e to redu&e flu&tuation# in demand/ ,hat 4ind of produ&t#
1ould #u&h a program 2e 2e#t #uited for/
3+ !o you anti&ipate any pro+lems i, the F)T! program is implemente%N
I0 No'. -.
1J
S)PP*I& M","-&M&,.
Ob7ecti!e$ Ee &ontinue our %is&ussion o, supply &hain &oor%ination. )n the se&on% hal,4 >e >ill e1plore issues in Supplier Management.
Prepare 3 Ca#e: Metal Craft Supplier S&ore&ard '0$S ()102)04!*+ Consi%er the ,ollo>ing $uestions ,or %is&ussion an% su+mit a -9page >rite up
Short ans>ering the itali&iAe% $uestion(s"B
Submission$
-. Ehat is the ostensi+le purpose o, the supplier s&ore&ar% at Metal&ra,tN )s it a&hie'ing this goalN
2+ ,hat are the #trength# and 1ea4ne##e# of the #upplier #&ore&ard at Metal&raft/
0. 5o> are the in&enti'es o, 'arious parti&ipants in the pro&urement pro&ess at Metal&ra,t in,luen&ing the use o, the s&ore&ar%N
7. 5o> >oul% you impro'e the s&ore&ar% at Metal&ra,t an% the managerial pro&ess surroun%ing its useN
THANKSGIVING BREAK
"*I-,I,- I,C&,.I?&S I, S)PP*+ C("I,S
Ob7ecti!e$ Ee &ontinue our %is&ussion o, supply &hain &oor%ination. Su+se$uently4 >e >ill e1plore in&enti'e issues in more %etail 'ia a &ase.
ea#$ l ligning )n&enti'es ,or Supply Chain (,,i&ieny '0$S ()600)110*
Ma7or Ca#e: 0ampton#hire ABpre## '0$S ()6(")03*+ Su+mit a >riteup a%%ressing the pro+lems in the &ase. Che&2 "Coursetools-
Submission >Resources->Week'0:(l"gn"ng Incent"ves" ,or rele'a n t sprea%sheets ,or &ase a n alysis.
/In#i!i#ual5$
Prepare 3 Ca#e: Supply Chain Clo#e);p: :he 3ideo 3ault '0$S ()102)0!0*+ Consi%er the ,ollo>ing $uestions ,or %is&ussion an% su+mit a -9page
Short >rite up ans>ering the itali&iAe% $uestion(s"B
Submission$$
-. )s there room ,or +oth an in%epen%ent 'i%eo rental store su&h as Qi%eo Qault an% a large &hain su&h as Blo&2+uster in this mar2etN
2. ), you >ere managing Qi%eo Qault4 ho> many &opies o, 5eist4 .). an% Toolan%er >oul% you sto&2N
0. Ehy %oes Qi%eo Qault %i,,er ,rom Blo&2+uster in the num+er o, mo'ies it sto&2sN Eoul% a stu%io that o>ns the title to a mo'ie +e
in%i,,erent +et>een sto&2ing poli&ies o, Qi%eo Qault an% Blo&2+usterN
4+ ,hat i# re-enue #haring/ ,hat impa&t 1ill it ha-e on the num2er of &opie# #to&4ed 2y 3ideo 3ault, it# profit#, and on the profit# of
the #tudio/
8. Ehat is the role o, the #entra2N Shoul% Qi%eo Qault sign up >ith #entra2N
110 !e&. / I
-OI,- 6I&C.
Ob7ecti!e$ No> that >e un%erstan% most o, the 2ey issues in supply &hain4 >e >ill stu%y t>o inno'ati'e supply &hain %esigns that le'erage
in,ormation te&hnology to get superior per,orman&e.
Page 13 of 14
,o!0 22
100 !e&.2
OMS 620: Supply Chain Management
Pr e pa r e 3
Short
Submission$
Ca#e: :he %:C eChoupal %nitiati-e '0$S ()604)016*+ Consi%er the ,ollo>ing $uestions ,or %is&ussion an% su+mit a -9page >rite up
ans>ering the itali&iAe% $uestion(s"B
1+ ,hat 1a# %:C.# moti-ation for &reating the eChoupal/
2+ ,hat 1ere the old and ne1 phy#i&al and information flo1# in the &hannel/
3+ Ehat +arriers %i% )TC ,a&e in em+ar2ing on this proCe&tN
4+ 5o> shoul% )TC %e'elop this plat,orm ,or the ,utureN
6I&C. .O CO,S)M& MO6&*
O+Ce&ti'eB Ee >ill e1plore the %esign o, %ire&t9to9&onsumer mo%el using !ell Computers.
ea#$ :he Po1er of 3irtual %ntegration: 6n %nter-ie1 1ith Mi&hael ?ell, 0ar-ard $u#ine## <e-ie1, Mar&h)6pril 1((" '=("20"*+
120 !e&. -7
14
S)PP*+ C("I, 6&SI-, ",6 @"P )P
Ob7ecti!e$ )n the ,irst hal, >e >ill ha'e a guest spea2er. Ee >ill %is&uss some ne> mo%els in supply &hain %esign an% >rap up the &ourse.
ea#$ l Ehat is the #ight Supply Chain ,or your Pro%u&t4 Marshall =isher4 5ar'ar% Business #e'ie>4 Mar&h9pril -//6 (S/6028".
Prepare 3 >a#t, 5lo2al, and Antrepreneurial: Supply Chain Management, 0ong 8ong Style 6n %nter-ie1 1ith 3i&tor >ung, 5ar'ar% Business
Short #e'ie>4 Sept9O&t.4 -//. (S/.806". Consi%er the ,ollo>ing $uestions ,or %is&ussion an% su+mit a -9page >rite up ans>ering the itali&iAe%
Submission$ $uestion(s"B
1+ ,hy doe# 7i and >ung E2rea4 up the -alue &hain and rationaliCe 1here they do thing#E/ 0o1 doe# thi# add -alue to the #upply
&hain/
2+ 5o> %oes Gi an% =ung ma2e the supply &hain more responsi'e (i.e. re%u&e response time"N
3+ Ehat is the role o, the Mlittle Fohn EaynesNM
Ma7or =inal ProCe&t #eport
Submission
/-roup5 $
Page 14 of 14