ECB3OSM
Operations and Supply
Chain Management
Summary
,Contents
Remarks ................................................................................................................................................... 3
Chapter 1 – Introduction to Supply Chains ............................................................................................. 4
Types of stores..................................................................................................................................... 4
Basic supply chain features ................................................................................................................. 4
Importance of Supply Chains .............................................................................................................. 4
Traditional vertical business pillar versus Modern approach .............................................................. 5
Usage of Metrics ................................................................................................................................. 5
Product and Production Process .......................................................................................................... 5
Mass Production and Distribution ....................................................................................................... 5
Demand, Orders and Bullwhip effect .................................................................................................. 6
Chapter 2 – Collaborative Forecasting .................................................................................................... 6
Forecasting .......................................................................................................................................... 6
Components of observed demand ....................................................................................................... 7
Forecasting in practice......................................................................................................................... 7
Chapter 3 – Capacity Planning and Facility Location ............................................................................. 7
Capacity ............................................................................................................................................... 7
Capacity decisions with linear programming ...................................................................................... 8
Chapter 4 – Production Planning............................................................................................................. 9
Production planning ............................................................................................................................ 9
Production planning as linear programming ....................................................................................... 9
Chapter 5 – Inventory Management in a Deterministic Scenario ........................................................... 9
Types of inventories ............................................................................................................................ 9
Reasons to keep inventory ................................................................................................................... 9
Economic Order Quantity model (EOQ) .............................................................................................. 9
Cost categories associated with keeping inventory ........................................................................... 10
Chapter 6 – Inventory Management under Uncertain Conditions ......................................................... 10
Centralizing demand and safety stock ............................................................................................... 10
Just in Time Inventory (JIT) Management ........................................................................................ 10
Chapter 7 – Risk Sharing and Risk Sourcing ........................................................................................ 11
Procurement or sourcing ................................................................................................................... 11
Purchase categories ........................................................................................................................... 11
Types of relationships ....................................................................................................................... 11
Final decisions about a supplier ........................................................................................................ 11
Total cost of ownership (TCO) ......................................................................................................... 12
Risk sharing ....................................................................................................................................... 12
Page | 1
, Chapter 8 – Asset Mobility and Infrastructure for Supply Chains ........................................................ 12
Transportation Infrastructure and Policies ........................................................................................ 12
Forms of infrastructure ...................................................................................................................... 13
Types of infrastructure – Movement of goods .................................................................................. 13
Cost, Risks and Benefits of information technology ......................................................................... 13
Chapter 9 – Distribution and Routing Networks ................................................................................... 14
Network ............................................................................................................................................. 14
Comparing online and offline sales ................................................................................................... 14
Online versus offline ......................................................................................................................... 14
Payment methods .............................................................................................................................. 15
Chapter 10 – Revenue Management and Optimizing Capacity Usage.................................................. 15
Price as a lever for capacity optimization.......................................................................................... 15
Overbooking ...................................................................................................................................... 15
Price discount in a Supply Chain........................................................................................................ 15
Hedging instruments ......................................................................................................................... 15
Chapter 11 – Managing Bottlenecks and Waiting Lines in a Supply Chain ......................................... 16
Types of mismatches ......................................................................................................................... 16
Congestion ......................................................................................................................................... 16
Queueing theory ................................................................................................................................ 16
Common indicators ........................................................................................................................... 16
Queue Disciplines.............................................................................................................................. 16
A calling population or Input Source ................................................................................................ 17
Service performance characteristics .................................................................................................. 17
Queueing behavior ............................................................................................................................ 17
Psychology of waiting in a line ......................................................................................................... 17
Birth of death process ........................................................................................................................ 17
Chapter 12 – Sustainability and Corporate Social Responsibility in a Supply Chain ........................... 18
Corporate Social Responsibility (CSR) ............................................................................................. 18
CSR policy ........................................................................................................................................ 18
Five-step waste hierarchy .................................................................................................................. 19
Tragedy of the Commons .................................................................................................................. 19
Ecological dynamics of renewable resources .................................................................................... 19
1st Guest lecture – Private Procurement ................................................................................................ 20
Key elements of procurement management ...................................................................................... 20
Procurement value creation objectives .............................................................................................. 20
Direct versus indirect procurement ................................................................................................... 20
Page | 2
Operations and Supply
Chain Management
Summary
,Contents
Remarks ................................................................................................................................................... 3
Chapter 1 – Introduction to Supply Chains ............................................................................................. 4
Types of stores..................................................................................................................................... 4
Basic supply chain features ................................................................................................................. 4
Importance of Supply Chains .............................................................................................................. 4
Traditional vertical business pillar versus Modern approach .............................................................. 5
Usage of Metrics ................................................................................................................................. 5
Product and Production Process .......................................................................................................... 5
Mass Production and Distribution ....................................................................................................... 5
Demand, Orders and Bullwhip effect .................................................................................................. 6
Chapter 2 – Collaborative Forecasting .................................................................................................... 6
Forecasting .......................................................................................................................................... 6
Components of observed demand ....................................................................................................... 7
Forecasting in practice......................................................................................................................... 7
Chapter 3 – Capacity Planning and Facility Location ............................................................................. 7
Capacity ............................................................................................................................................... 7
Capacity decisions with linear programming ...................................................................................... 8
Chapter 4 – Production Planning............................................................................................................. 9
Production planning ............................................................................................................................ 9
Production planning as linear programming ....................................................................................... 9
Chapter 5 – Inventory Management in a Deterministic Scenario ........................................................... 9
Types of inventories ............................................................................................................................ 9
Reasons to keep inventory ................................................................................................................... 9
Economic Order Quantity model (EOQ) .............................................................................................. 9
Cost categories associated with keeping inventory ........................................................................... 10
Chapter 6 – Inventory Management under Uncertain Conditions ......................................................... 10
Centralizing demand and safety stock ............................................................................................... 10
Just in Time Inventory (JIT) Management ........................................................................................ 10
Chapter 7 – Risk Sharing and Risk Sourcing ........................................................................................ 11
Procurement or sourcing ................................................................................................................... 11
Purchase categories ........................................................................................................................... 11
Types of relationships ....................................................................................................................... 11
Final decisions about a supplier ........................................................................................................ 11
Total cost of ownership (TCO) ......................................................................................................... 12
Risk sharing ....................................................................................................................................... 12
Page | 1
, Chapter 8 – Asset Mobility and Infrastructure for Supply Chains ........................................................ 12
Transportation Infrastructure and Policies ........................................................................................ 12
Forms of infrastructure ...................................................................................................................... 13
Types of infrastructure – Movement of goods .................................................................................. 13
Cost, Risks and Benefits of information technology ......................................................................... 13
Chapter 9 – Distribution and Routing Networks ................................................................................... 14
Network ............................................................................................................................................. 14
Comparing online and offline sales ................................................................................................... 14
Online versus offline ......................................................................................................................... 14
Payment methods .............................................................................................................................. 15
Chapter 10 – Revenue Management and Optimizing Capacity Usage.................................................. 15
Price as a lever for capacity optimization.......................................................................................... 15
Overbooking ...................................................................................................................................... 15
Price discount in a Supply Chain........................................................................................................ 15
Hedging instruments ......................................................................................................................... 15
Chapter 11 – Managing Bottlenecks and Waiting Lines in a Supply Chain ......................................... 16
Types of mismatches ......................................................................................................................... 16
Congestion ......................................................................................................................................... 16
Queueing theory ................................................................................................................................ 16
Common indicators ........................................................................................................................... 16
Queue Disciplines.............................................................................................................................. 16
A calling population or Input Source ................................................................................................ 17
Service performance characteristics .................................................................................................. 17
Queueing behavior ............................................................................................................................ 17
Psychology of waiting in a line ......................................................................................................... 17
Birth of death process ........................................................................................................................ 17
Chapter 12 – Sustainability and Corporate Social Responsibility in a Supply Chain ........................... 18
Corporate Social Responsibility (CSR) ............................................................................................. 18
CSR policy ........................................................................................................................................ 18
Five-step waste hierarchy .................................................................................................................. 19
Tragedy of the Commons .................................................................................................................. 19
Ecological dynamics of renewable resources .................................................................................... 19
1st Guest lecture – Private Procurement ................................................................................................ 20
Key elements of procurement management ...................................................................................... 20
Procurement value creation objectives .............................................................................................. 20
Direct versus indirect procurement ................................................................................................... 20
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