SUPPLY CHAIN MANAGEMENT

Transcription

1 Fifth Edition SUPPLY CHAIN MANAGEMENT STRATEGY, PLANNING^ AND OPERATION Global Edition Sunil Chopra Kellogg School of Management Peter Meindl Kepos Capital PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

2 CONTENTS Preface 10 " -, Part I Building a Strategic Framework to Analyze Supply Chains Chapter 1 UNDERSTANDING THE SUPPLY CHAIN What Is a Supply Chain? The Objective of a Supply Chain The Importance of Supply Chain Decisions Decision Phases in a Supply Chain Process Views of a Supply Chain Examples of Supply Chains Summary of Learning Objectives 29 Discussion Questions 29 Bibliography 30 Chapter 2 SUPPLY CHAIN PERFORMANCE: ACHIEVING STRATEGIC FIT AND SCOPE Competitive and Supply Chain Strategies Achieving Strategic Fit Expanding Strategic Scope Challenges to Achieving and Maintaining Strategic Fit Summary of Learning Objectives 48 Discussion Questions 48 Bibliography 49 Chapter 3 SUPPLY CHAIN DRIVERS AND METRICS Financial Measures of Performance Drivers of Supply Chain Performance 53 ^ 3.3 Framework for Structuring Drivers Facilities Inventory Transportation Information Sourcing Pricing Summary of Learning Objectives 70 Discussion Questions 71 Bibliography 71 CASE STUDY: Seven-Eleven Japan Co. 72 CASE STUDY: Financial Statements for Wal-Mart Stores Inc. 78 4

3 Part IB Designing the Supply Chain Network Chapter 4 DESIGNING DISTRIBUTION NETWORKS AND APPLICATIONS TO ONLINE SALES 80 ' 4.1 The Role of Distribution in the Supply Chain Factors Influencing Distribution Network Design 81 <* 4.3 Design Options for a Distribution Network Online Sales and the Distribution Network Distribution Networks in Practice Summary of Learning Objectives 112 Discussion Questions 113 Bibliography 113 P- CASE STUDY: Blue Nile and Diamond Retailing 114 Chapter 5 NETWORK DESIGN 'IN THE SUPPLY CHAIN The Role of Network Design in the Supply Chain Factors Influencing Network Design Decisions Framework for Network Design Decisions Models for Facility Location and Capacity Allocation Making Network Design Decisions in Practice Summary of Learning Objectives 145 Discussion Questions 146 Exercises 146 Bibliography 151 > CASE STUDY: Managing GrowthatSportStuff.com 151 > CASE STUDY: Designing the Production Network at CoolWipes 153 Chapter 6 DESIGNING GLOBAL SUPPLY CHAIN NETWORKS The Impact of Globalization on Supply Chain Networks The Offshoring Decision: Total Cost Risk Management in Global Supply Chains Discounted Cash Flows Evaluating Network Design Decisions Using Decision Trees To Onshore or Offshore: Evaluation of Global Supply Chain Design Decisions Under Uncertainty Making Global Supply Chain Design Decisions Under Uncertainty in Practice Summary of Learning Objectives 182 Discussion Questions 183 Exercises 183 o Bibliography 185 > CASE STUDY: BioPharma, Inc. 186 CASE STUDY: Global Supply Design for the Future: Nokia 188 Part BIB Planning and Coordinating Demand and SwppOy in a Supply Chaon Chapter 7 DEMAND FORECASTING ON A SUPPLY CHAIN The Role of Forecasting in a Supply Chain Characteristics of Forecasts 191

4 7.3 Components of a Forecast and Forecasting Methods Basic Approach to Demand Forecasting 193 * 7.5 Time-Series Forecasting Methods Measures of Forecast Error Selecting the Best Smoothing Constant Forecasting Demand at Tahoe Salt The Role of IT in Forecasting Risk Management in Forecasting Forecasting in Practice Summary of Learning Objedives 217 Discussion Questions 218 Exercises 218, o Bibliography 220 > CASE STUDY: Specialty Packaging Corporation, Part A 220 Chapter 8 AGGREGATE PLANNONG DIM A SUPPLY CHAIN The Role of Aggregate Planning in a Supply Chain The Aggregate Planning Problem Aggregate Planning Strategies Aggregate Planning Using Linear Programming Aggregate Planning in Excel Building a Rough Master Production Schedule The Role of IT in Aggregate Planning Implementing Aggregate Planning in Practice Summary of Learning Objectives 240 Discussion Questions 241 Exercises 241 Bibliography 243 > CASE STUDY: Specialty Packaging Corporation, Part B 243 Chapter 9 SALES AND OPERATIONS PLANNING: PLANNING SUPPLY ;, AND DEMAND IN A SUPPLY CHAIN Responding to Predictable Variability in the Supply Chain Managing Supply Managing Demand Implementing Sales and Operations Planning in Practice Summary of Learning Objectives 257 Discussion Questions 257 Exercises 258 Bibliography 260 > CASE STUDY: Mintendo Game Girl 260 Chapter 10 COORDINATION IN A SUPPLY CHAIN Lack of Supply Chain Coordination and the Bullwhip Effect The Effect on Performance of Lack of Coordination Obstacles to Coordination in a Supply Chain Managerial Levers to Achieve Coordination Continuous Replenishment and Vendor-Managed Inventories Collaborative Planning, Forecasting, and Replenishment (CPFR) 276

5 Contents Achieving Coordination in Practice Summary of Learning Objectives 281 \ Discussion Questions 281» Bibliography 282 (Part DV IPflamimiDmig amid OVflamiagiiiriig Dmivemitoirnes Biro a Supply Gnaniro Chapter 11 MANAGING ECONOMIES OF SCALE DN A SUPPLY CHAON: CYCLE INVENTORY The Role of Cycle Inventory in a Supply Chain Estimating Cycle. Inventory-Related Costs in Practice Economies of Scale to Exploit Fixed Costs Economies of Scale to Exploit Quantity Discounts Short-Term Discounting: Trade Promotions Managing Multiechelon Cycle Inventory Summary of Learning Objectives 319 Discussion Questions 320 Exercises 320 o Bibliography 322 > CASE STUDY: NAN 323 Appendix 11A: Economic Order Quantity 325 Chapter 12 MANAGDNG UNCERTAINTY BGV9 A SUPPLY CHAIN: SAFETY INVENTORY The Role of Safety Inventory in a Supply Chain 326 v 12.2 Determining the Appropriate Level of Safety Inventory Impact of Supply Uncertainty on Safety lnventory r Impact of Aggregation on Safety Inventory Impact of Replenishment Policies on Safety Inventory Managing Safety Inventory in a Multiechelon Supply Chain The Role of IT in Inventory Management Estimating and Managing Safety Inventory in Practice^ Summary of Learning Objectives 359 Discussion Questions 360 Exercises 360» Bibliography 363 > CASE STUDY: Managing Inventories at ALKO Inc. 363 > CASE STUDY: Shall it be postponed? 365 Appendix 12A: The Normal Distribution 366 Appendix 12B: The Normal Distribution in Excel 367 Appendix 12C: Expected Shortage Cost per Cycle 368 Appendix 12D: Evaluating Safety Inventory for Slow-Moving Items 369 Chapter 13 DETERIMIIINONG THE OPTDMAL LEVEL OF PRODUCT AVADLABDLDTY The Importance of the Level of Product Availability Factors Affecting Optimal Level of Product Availability Managerial Levers to Improve Supply Chain Profitability 382

6 13.4 Setting Product Availability for Multiple Products Under Capacity Constraints Setting Optimal Levels of Product Availability in Practice Summary of Learning Objectives 399 Discussion Questions 399 Exercises 400 Bibliography 402 Appendix 13A: Appendix 13B: Appendix 13C: Appendix 13D: Appendix 13E: Appendix 13F: Optimal Level of Product Availability 403 An Intermediate Evaluation 403 Expected Profit from an Order 404 Expected Overstock from an Order 405 Expected Understock from an Order 406 Simulation Using Spreadsheets 406 ' Part V Designing and Planning Transportation Networks Chapter 14 TRANSPORTATION IN A SUPPLY CHAIN The Role of Transportation in a Supply Chain Modes of Transportation and Their Performance Characteristics Transportation Infrastructure and Policies Design Options for a Transportation Network Trade-Offs in Transportation Design Tailored Transportation The Role of IT in Transportation Risk Management in Transportation Making Transportation Decisions in Practice Summary of Learning Objectives 436 Discussion Questions 437 Exercises 437 Bibliography 438 CASE STUDY: Designing a Sustainable Distribution Network for Euro-Grain 438 Part VI Managing Cross-Functional Drivers in a Supply Chain Chapter 15 SOURCING DECISIONS IN A SUPPLY CHAIN The Role of Sourcing in a Supply Chain In-House or Outsource Third-and Fourth-Party Logistics Providers Using Total Cost to Score and Assess Suppliers Supplier Selection Auctions and Negotiations Contracts, Risk Sharing, and Supply Chain Performance Design Collaboration The Procurement Process Designing a Sourcing Portfolio: Tailored Sourcing Risk Management in Sourcing Making Sourcing Decisions in Practice 473

7 Contents, Summary of Learning Objectives Discussion Questions 475 Exercises 475 Bibliography 476 Chapter 16 PRICING AND REVENUE MANAGEMENT IN A SUPPLY CHAIN The Role of Pricing and Revenue Management in a Supply ' Chain Pricing and Revenue Management for Multiple Customer Segments Pricing and Revenue Management for Perishable Assets 487 D 16.4 Pricing and. Revenue Management for Seasonal Demand Pricing and Revenue Management for Bulk and Spot Contracts Using Pricing and Revenue Management in Practice 495 x 16.7 Summary of Learning Objectives 497 ' - Discussion Questions 497 Exercises 498 Bibliography 499 Chapter 17 INFORMATION TECHNOLOGY IN A SUPPLY CHAIN The Role of IT in a Supply Chain The Supply Chain IT Framework Customer Relationship Management 503 l 17.4 Internal Supply Chain Management Supplier Relationship Management The Transaction Management Foundation The Future of IT in the Supply Chain Risk Management in IT 508 \ 17.9 Supply Chain IT in Practice Summary of Learning Objectives 510 Discussion Questions 510 Bibliography 510 Chapter 18 SUSTAINABILITY AND THE SUPPLY CHAIN 512 Index The Role of Sustainability in a Supply Chain The Tragedy of the Commons Key Metrics for Sustainability Sustainability and Supply Chain Drivers Closed-Loop Supply Chains Summary of Learning Objectives 520 Discussion Questions 521 Bibliography 521