Modeling The Supply Chain

by Shapiro,Jeremy F.

• ISBN13: 9780495126096
• ISBN10: 0495126098
• Edition: 2nd
• Format: Hardcover
• Copyright: 2006-10-17
• Publisher: Cengage Learning

Summary

Supply chains don't manage themselves, although managers sometimes wish they did. For everything you'll need to know about analyzing supply chains, you'll need MODELING THE SUPPLY CHAIN. By using models to analyze the supply chain, you can quickly and effectively find ways to optimize its performance. And because this supply chain textbook is loaded with clear illustrations and practical study tools, this is the textbook that will help you be effective during test times as well.

Author Biography

Jeremy Shapiro is Professor, Emeritus in the Sloan School of Management at MIT.

Table of Contents

Introduction to Supply Chain Management and Supporting Information Technologies	p. 1
Supply Chain Management, Integrated Planning, and Models	p. 3
Fundamentals of Supply Chain Management	p. 5
Overview of Supply Chain Models and Modeling Systems	p. 10
Supply Chain Modeling Incorporates Concepts from Several Management Disciplines	p. 12
Innovations in Information Technology Require and Support Supply Chain Modeling	p. 23
Organizational Adaptation to Integrated Supply Chain Management and Modeling	p. 24
Notes	p. 25
References	p. 26
Information Technology	p. 28
Enterprise Resource Planning Systems	p. 30
E-Commerce	p. 31
Radio-Frequency Identification	p. 34
Comparison of Transactional and Analytical Information Technology	p. 35
Hierarchy of Supply Chain Systems	p. 39
Final Thoughts	p. 52
Exercises	p. 53
Notes	p. 56
References	p. 57
Models	p. 59
Fundamentals of Optimization Models: Linear Programming	p. 61
Linear Programming Modeling Examples	p. 62
Properties of Linear Programming Models	p. 79
Interpreting an Optimal Linear Programming Solution	p. 85
Multiple-Objective Optimization	p. 94
Stochastic Programming	p. 96
Final Thoughts	p. 100
Exercises	p. 101
Notes	p. 106
References	p. 107
The Simplex Method of Linear Programming	p. 108
Fundamentals of Optimization Models: Mixed-Integer Programming	p. 117
Mixed-Integer Programming Modeling Vignettes	p. 118
Distribution Center Location Models	p. 124
Supply Chain Network Optimization Models	p. 129
Designing and Implementing Optimization Modeling Systems for Strategic and Tactical Planning	p. 141
Optimization Software	p. 148
Final Thoughts	p. 153
Exercises	p. 154
Notes	p. 159
References	p. 159
The Branch-and-Bound Method for Mixed-Integer Programming	p. 161
Unified Optimization Methodology for Operational Planning Problems	p. 169
Heuristic Methods for Combinatorial Optimization Problems	p. 171
Overview of the Unified Optimization Methodology	p. 180
Unified Optimization Methodology Applied to Vehicle Routing	p. 189
Unified Optimization Methodology Applied to Production Scheduling	p. 198
Final Thoughts	p. 208
Exercises	p. 210
Notes	p. 213
References	p. 215
A Recursive Method for Optimizing Routes	p. 216
Overview of Descriptive Models	p. 220
Demand Forecasting	p. 221
Simulation Models	p. 233
Systems Dynamics Models	p. 240
Activity-Based Costing	p. 243
Metrics, Data Envelopment Analysis, and the Balanced Scorecard	p. 245
Final Thoughts	p. 251
Exercises	p. 252
Notes	p. 255
References	p. 256
Supply Chain Decision Databases	p. 257
Data Aggregations	p. 261
Facility Data	p. 264
Transportation Network Data	p. 268
Inventory Data	p. 274
Supplier Data	p. 275
Cost Data	p. 278
Customer and Market Data	p. 287
Systemwide and Policy Data	p. 288
Model Output Data	p. 289
Mapping and Other Graphical Displays of Data Inputs and Outputs	p. 293
Connections Among Supply Chain Decision Databases	p. 296
Final Thoughts	p. 299
Exercises	p. 301
Notes	p. 303
References	p. 304
Applications	p. 305
Strategic and Tactical Supply Chain Planning	p. 307
Resources and the Resource-Based View of the Firm	p. 309
Strategic Analysis of Logistics Supply Chains	p. 314
Two Logistics Strategy Applications	p. 319
Strategic Analysis of Manufacturing Supply Chains	p. 324
Two Manufacturing Strategy Applications	p. 332
Manufacturing Postponement Strategies	p. 339
Tactical Planning	p. 343
Two Tactical Planning Applications	p. 344
Stages of a Strategic Supply Chain Study	p. 348
Final Thoughts	p. 352
Exercises	p. 353
Notes	p. 356
References	p. 357
Operational Supply Chain Planning	p. 359
Taxonomies of Operational Planning Problems	p. 360
Modeling Systems for Operational Planning	p. 370
Vehicle-Routing System for an E-Commerce Company	p. 376
Production-Planning System for a Semiconductor Company	p. 384
Dynamic Sourcing in a Reverse Logistics Company	p. 390
Final Thoughts	p. 395
Exercises	p. 396
Notes	p. 400
References	p. 401
Inventory Planning	p. 403
Classical Inventory Models	p. 406
Inventory Deployment Models for Strategic Supply Chain Design	p. 413
Strategic Inventory Deployment Across a Retailing Distribution Network	p. 419
Aggregate Inventory Models for Tactical Supply Chain Planning	p. 423
Spare-Parts Inventory Management	p. 425
Inventory Management in Manufacturing Supply Chains	p. 429
Final Thoughts	p. 437
Exercises	p. 439
Notes	p. 441
References	p. 441
Supply Chain Decision Making Under Uncertainty	p. 443
Scenario Planning	p. 444
Contingency Planning	p. 446
Decision Trees	p. 448
Stochastic Programming	p. 452
Stochastic Programming Applications	p. 461
Risk Management of Supply Chains	p. 467
Final Thoughts	p. 469
Exercises	p. 470
Notes	p. 473
References	p. 473
The Future	p. 475
Beyond Supply Chain Optimization to Enterprise Optimization	p. 477
Overview of Enterprise Optimization Modeling	p. 479
Integrating Supply Chain and Demand Management Decisions	p. 481
Price-and Location-Sensitive Revenues	p. 483
Integrating Supply Chain and Marketing Models for Consumer Products	p. 487
Optimization Models for Competitive Analysis	p. 503
Integrating Supply Chain and Demand Management Decisions with Corporate Financial Decisions	p. 518
Optimization Models for Corporate Financial Planning	p. 519
Financial Planning Issues Facing the Multinational Corporation	p. 528
Financial Flows Model	p. 532
Final Thoughts	p. 540
Exercises	p. 542
Notes	p. 547
References	p. 549
Organizational Adaptation to Modeling Systems	p. 551
How Organizations Make Decisions	p. 553
Contested Issues About Organizational Decision Making	p. 558
Achieving Supply Chain Competitive Advantage Through Information Technology	p. 570
Incentive Contracts	p. 579
Outlook for the Future of Supply Chain Modeling Systems and Their Applications	p. 583
Exercises	p. 588
Notes	p. 593
References	p. 594
Index	p. 595
Credits	p. 605
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