Introduction. ECT 7240 Supply Chain Management

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1 Introduction to ECT 7240 Supply Chain Management

2 Definition A firm s Supply chain consists of all processes and activities that are necessary to bring products to market. It includes procurement to acquire raw material; manufacturing to convert raw materials into components and final products; and distribution to respond to market demand SCM is a set of approaches to manage the SC, i.e., The objective of supply chain management is to to efficiently integrate suppliers, manufacturers, warehouses, and stores, coordinate so that merchandise and integrate is produced all these and processes distributed and at the right quantity, activities to the so right as location, to meet and customers at the right expectations time. in the most cost-effective way Efficiently means minimizing the system-wide cost while satisfying service level requirement, or maximizing the total profit.

3 A process overview: manufacturing SCM activities and main business processes (Source: Ernst and Young Consulting)

4 Smile Curve 微笑曲线 Supply Chain Source: Adapted from the Stan Shih Smile Curve concept.

Stores Customers Request: Buying detergent, towels, heaters,.

5 Supply Chain Examples Example 1: Park n Shop Procter & Gamble (Thail.) Da-Fa Textile, Inc. (China) Philico Factory (Malaysia) Park n Shop or thirdparty distribution centers Park n Shop Stores Customers Request: Buying detergent, towels, heaters,. Plastic Producer Chemical Producers Yarn Producer Color suppliers Electronics Components Producer Metal Processors Package Producer

6 Demand-Supply Web Mat'l Flow VISA Credit Flow Information Supplier Mfg. Retailer Consumer Supplier Warehouse Schedules Order Flow Wholesaler Cash Flow Retailer After sales support

7 Pietra Rivoli holds up the Fort Lauderdale t-shirt that guided her journey.

8 Four Components of SC Materials flows (inventory) Transportation Facilities Information flows Cash flows Looking at these flows -- logistics

9 Logistics Management and Supply Chain Management: what are the differences? They are ALMOST the SAME THING! but, Supply chain include Logistics - containing high level activities SCM emphasis more on relationship, and is used more often when talking to customers and other partners on the chain/channel, e.g., cost/profit-sharing, choosing suppliers, coordinating channel Logistics Management focuses more on Materials Flow execution Moving, storing, We have a logistics industry but no SCM industry

10 Logistics Management and Supply Chain Management: what are the differences? often they overlap SCM activities actually are logistics activities Because, interactions between companies partners thru 3 flows - two of them are logistical nature

11 Course Plan (tentative) Session (Date) Process analysis 1 (7/9) Intro., Push & Pull Processes, Demand Forecasting: Chapters 1/7 2 (14/9) Demand Forecasting (continued) and Intro to MRP/DRP: Chapter 7 3 (21/9) Intro. To Inventory Management: Chapter 9 4 (28/9) Managing Uncertainty in SC + : Chapter 11 5(5/10) Design Supply Chains for Short Life Cycle Products: Chapter 12 6 (12/10) Midterm Exam. (90 min) + 7 (19/10) Determining the Optimal Level of Stock: Chapter 12 8 (2/11) Managing risk in operations & Postponement. Chapters 11/12 9 (9/11) Beer Game + 10 (16/11) Supply Chain Coordination/Integration: Chapter (23/11) Supply chain coordination: contracts 12 (30/11) Transportation in a SC & Revenue Management: Chapters 13/15 13(7/12) Supply Chain Strategies and Network Design: Chapters 2/3/5 14 (14/12) Final Exam. (open-book/notes) (Time allowed, green SC will be discussed) Course Objectives Introduce the SCM vocabulary Understand major qualitative features regarding the operations of a SC Provide some basic SCM analytical tools Gain insights into the IT implications

12 Textbooks and Readings Required textbook: 1. Chopra S. and Meindl, P.: Supply Chain Mgmt, Strategy, Planning & Oper. (3 rd edition) Reference books 1. Designing and Managing the Supply Chain, Simchi-Levi, D, Kaminsky, P & Simchi-Levi E. Mcgraw-Hill, Matching Supply with Demand: An Introduction to Operations Management, 2 nd Edition, by Gerard Cachon and Christian Terwiesch. McGraw-Hill, 2009.

13 Grading There are three major parts to your final grade: Individual: There are 4 major parts to your final grade: Assignments (Two Sets) 18% Case preparation 12% Midterm (open book/notes) 20% Final Examination (open book/notes 50% Make-up exams are not offered. Case Preparation (I.e., case reading) o The instructor will present 3 cases in class. o These cases are typically long and contain complicated scenarios. o 2 weeks before the case presentation, you are given a set of questions. o You should hand in your answers to these questions prior to the class in which we will discuss the case. o Any late submission will be discarded and marked zero. Those cases will be tested in the final examination.

14 Grading Assignments o They consist of short case studies and homework. Assignments will be graded. Only only accept electronic submission is accepted (via the course ), and the score to later submission will be discounted according to the number of days of lateness. Zero tolerance to plagiarism (both parties will be equally penalized). Final Exam Final is open-book Textbooks, notes, everything except Combination of quantitative & qualitative questions May include questions drawn from the cases

15 Course Logistics TA: Note handouts also available online My Tel No: , Office Hrs: TBD, Office: Engg-II, 507 Class website Login ID: ECT7240, password: cet7240

16 Teaching Method Lectures Topics Case analysis Assignments Game playing (by applying what you have learnt) Mathematics: Simple algebra, Basic Probability & Stat. Quantitative > Qualitative

Introduction. ECT 7240 Supply Chain Management. Class in next week : Sept. 14, is cancelled! Make-up class: Oct. 15: 2-5 pm (Sat.).

Introduction. ECT 7240 Supply Chain Management. Class in next week : Sept. 14, is cancelled! Make-up class: Oct. 15: 2-5 pm (Sat.). Introduction to ECT 7240 Supply Chain Management Class in next week : Sept. 14, is cancelled! Make-up class: Oct. 15: 2-5 pm (Sat.). Supply Chain Examples Example 1: Park n Shop Procter & Gamble (Thail.)