Operations and Supply Chain Management
Table of Contents
Operations and Supply Chain Management.......................................................................1
Lecture 1 and 2 ........................................................................................................................ 2
Article 1: Coronavirus is a wake-up call for supply chain management .........................................................8
Article 2: What is the right supply chain for your product? (Fisher) .............................................................8
Article 3: Global supply chains in a post-pandemic world .............................................................................9
Article 4: Aligning supply chain strategies with product uncertainties (Lee) ...............................................10
Article 5: Why investing in procurement makes organizations more resilient .............................................12
Article 6: A simpler way to modernize your supply chain ............................................................................12
Article 7: De Smet .........................................................................................................................................12
Article 8: Tailored logistics (Fuller)................................................................................................................13
Tutorial 1 ............................................................................................................................... 14
Lecture 3 & 4 ......................................................................................................................... 17
Article 1: Comprehensive survey of Guaranteed-Service model .................................................................22
Lecture 5 & 6 ......................................................................................................................... 23
Lecture 7 & 8 ......................................................................................................................... 28
Article 1: The value of information ...............................................................................................................38
Article 2: AI in supply chain ..........................................................................................................................38
Article 3: Designing distribution networks and applications to retailing (Chopra) ......................................38
Article 4: Building a transparent supply chain ..............................................................................................39
Article 5: How to turn a supply chain platform into as innovation engine...................................................39
Article 6: Why you should warn customers when you’re running low on stock ..........................................39
Lecture 9 & 10 ........................................................................................................................ 40
Tutorial 4 ............................................................................................................................... 44
Lecture 11 & 12 ...................................................................................................................... 46
Tutorial 5 ............................................................................................................................... 50
1
,Lecture 1 and 2
SC challenges:
• Political instability
• Increasing administrative burden
• Trade wars
• Fighting long term risks with shirt term solutions
• Post Covid-19 related SC disruptions, inflation, risk of recession, climate related
issues
Main trends challenging supply chains
• Sustainability
• Technology
o To be able to afford it
o Train the employees
• Uberization of supply chains: sharing resources
• Social media and social license: interaction and support from customers and other
stakeholders to develop and maintain business
• Volatility: increased change in key parameters negatively impacts supply chain
performance
• Vulnerability & resilience
Compounding effect:
• One-size-fits-all approach
o Problems: over & underservicing for customer segments
• Tailored supply chains:
o Better use of resources
o Higher customer satisfaction
o Promises for higher margins
• Less forgiving environment:
o Consumers are less forgiving, if you order at 22u/23u you are expected to
receive it the next day
o Scandals that companies do if mostly seen by everyone (e.g. social media)
Fisher (1997)
• Two main types of products: Functional & Innovative
o The same product can be both: phone, white t-shirt
• To main types of supply chain focus: Efficient & Responsive
2
,Matching supply chains with products:
• Mismatch: change the product or the supply chain
o Innovative product, demand triple but no supply for the customer is focus is
efficient
• For innovative products: improvements in responsiveness tend to pay off more than
efficiency gains
Lee (2002)
• Postponement: companies wait with
the final assembly until the demand is
known (e.g. paint)
Chopra (2019):
• The chosen strategy must align with the overall strategy of the company
• More responsive:
o Transportation: choose fastest way of delivery
3
, o Inventory: more inventory
o Facilitates: more factories closer to customer
What are dimensions on which companies can compete (create value):
• Cost or price
• Quality
o Design (features a product has)
o Process (how a product is made)
• Delivery speed
• Delivery reliability
• Coping with changes in demand
• Flexibility and new product introduction
• Other:
o After sale support
o Sustainability aspects
Value strategy?
• Operational excellence (Aldi, Ryanair)
o Keeping costs down, easy service
o Delivering at the lowest possible price
• Product leadership (Hermes, Apple)
o Focus on developing and delivering the newest and highest specification
product
o Technology innovation, innovative products (can lead to high risk due to cost
of developing
• Customer intimacy (IBM)
o Focus on delivering the best total solution for specific customer problems
o Closely monitor the added value
4
Table of Contents
Operations and Supply Chain Management.......................................................................1
Lecture 1 and 2 ........................................................................................................................ 2
Article 1: Coronavirus is a wake-up call for supply chain management .........................................................8
Article 2: What is the right supply chain for your product? (Fisher) .............................................................8
Article 3: Global supply chains in a post-pandemic world .............................................................................9
Article 4: Aligning supply chain strategies with product uncertainties (Lee) ...............................................10
Article 5: Why investing in procurement makes organizations more resilient .............................................12
Article 6: A simpler way to modernize your supply chain ............................................................................12
Article 7: De Smet .........................................................................................................................................12
Article 8: Tailored logistics (Fuller)................................................................................................................13
Tutorial 1 ............................................................................................................................... 14
Lecture 3 & 4 ......................................................................................................................... 17
Article 1: Comprehensive survey of Guaranteed-Service model .................................................................22
Lecture 5 & 6 ......................................................................................................................... 23
Lecture 7 & 8 ......................................................................................................................... 28
Article 1: The value of information ...............................................................................................................38
Article 2: AI in supply chain ..........................................................................................................................38
Article 3: Designing distribution networks and applications to retailing (Chopra) ......................................38
Article 4: Building a transparent supply chain ..............................................................................................39
Article 5: How to turn a supply chain platform into as innovation engine...................................................39
Article 6: Why you should warn customers when you’re running low on stock ..........................................39
Lecture 9 & 10 ........................................................................................................................ 40
Tutorial 4 ............................................................................................................................... 44
Lecture 11 & 12 ...................................................................................................................... 46
Tutorial 5 ............................................................................................................................... 50
1
,Lecture 1 and 2
SC challenges:
• Political instability
• Increasing administrative burden
• Trade wars
• Fighting long term risks with shirt term solutions
• Post Covid-19 related SC disruptions, inflation, risk of recession, climate related
issues
Main trends challenging supply chains
• Sustainability
• Technology
o To be able to afford it
o Train the employees
• Uberization of supply chains: sharing resources
• Social media and social license: interaction and support from customers and other
stakeholders to develop and maintain business
• Volatility: increased change in key parameters negatively impacts supply chain
performance
• Vulnerability & resilience
Compounding effect:
• One-size-fits-all approach
o Problems: over & underservicing for customer segments
• Tailored supply chains:
o Better use of resources
o Higher customer satisfaction
o Promises for higher margins
• Less forgiving environment:
o Consumers are less forgiving, if you order at 22u/23u you are expected to
receive it the next day
o Scandals that companies do if mostly seen by everyone (e.g. social media)
Fisher (1997)
• Two main types of products: Functional & Innovative
o The same product can be both: phone, white t-shirt
• To main types of supply chain focus: Efficient & Responsive
2
,Matching supply chains with products:
• Mismatch: change the product or the supply chain
o Innovative product, demand triple but no supply for the customer is focus is
efficient
• For innovative products: improvements in responsiveness tend to pay off more than
efficiency gains
Lee (2002)
• Postponement: companies wait with
the final assembly until the demand is
known (e.g. paint)
Chopra (2019):
• The chosen strategy must align with the overall strategy of the company
• More responsive:
o Transportation: choose fastest way of delivery
3
, o Inventory: more inventory
o Facilitates: more factories closer to customer
What are dimensions on which companies can compete (create value):
• Cost or price
• Quality
o Design (features a product has)
o Process (how a product is made)
• Delivery speed
• Delivery reliability
• Coping with changes in demand
• Flexibility and new product introduction
• Other:
o After sale support
o Sustainability aspects
Value strategy?
• Operational excellence (Aldi, Ryanair)
o Keeping costs down, easy service
o Delivering at the lowest possible price
• Product leadership (Hermes, Apple)
o Focus on developing and delivering the newest and highest specification
product
o Technology innovation, innovative products (can lead to high risk due to cost
of developing
• Customer intimacy (IBM)
o Focus on delivering the best total solution for specific customer problems
o Closely monitor the added value
4
