9780534373634

Modeling the Supply Chain

by
  • ISBN13:

    9780534373634

  • ISBN10:

    0534373631

  • Format: Hardcover
  • Copyright: 2000-12-20
  • Publisher: South-Western College Pub
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  • The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

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 of operations research and management in the Sloan School of Management at MIT.

Table of Contents

PART ONE Introduction to Supply Chain Management 1(60)
Supply Chain Management, Integrated Planning, and Models
3(26)
Fundamentals of Supply Chain Management
5(5)
Supply Chain Networks
6(1)
Integrated Supply Chain Planning
7(1)
Objectives of Supply Chain Management
8(2)
Overview of Supply Chain Models and Modeling Systems
10(2)
Supply Chain Modeling Incorporates Concepts from Several Management Disciplines
12(11)
Strategy Formation and the Theory of the Firm
13(4)
Logistics, Production, and Inventory Management
17(2)
Management Accounting
19(1)
Demand Forecasting and Marketing Science
20(2)
Operations Research
22(1)
Innovations in Information Technology Require and Support Supply Chain Modeling
23(2)
Organizational Adaptation to Integrated Supply Chain Management and Modeling
25(4)
Notes
26(1)
References
27(2)
Information Technology
29(32)
Developments in Enterprise Resource Planning Systems and E-Commerce
30(6)
ERP Systems
31(1)
E-Commerce
32(4)
Comparison of Transactional IT and Analytical IT
36(4)
Time Frame Addressed
37(1)
Purpose
37(1)
Business Scope
37(1)
Nature of Databases
38(1)
Response Time for Queries
39(1)
Implications for Business Process Redesign
40(1)
Hierarchy of Supply Chain Systems
40(13)
Components of the Supply Chain System Hierarchy
40(6)
Frequency of Analysis, Cycle Times, and Run Times of Supply Chain Systems
46(1)
Communication Among Supply Chain Systems of Data and Decisions
46(7)
Balancing Centralized and Decentralized Decision Making
53(1)
Legacy Systems and Legacy Thinking
53(2)
Final Thoughts
55(6)
Exercises
56(1)
Notes
57(2)
References
59(2)
PART TWO Modeling and Solution Methods 61(216)
Fundamentals of Optimization Models: Linear Programming
63(62)
Linear Programming Modeling Examples
64(20)
Resource Allocation Model
65(4)
Infeasible and Unbounded Models
69(1)
Spreadsheet Optimization
70(2)
Multiperiod Resource Allocation Model
72(6)
Network Models
78(6)
Properties of Linear Programming Models
84(7)
Linearity
85(4)
Separability and Additivity
89(1)
Indivisibility and Continuity
89(1)
Single Objective Function
90(1)
Data Known with Certainty
90(1)
Interpreting an Optimal Linear Programming Solution
91(10)
Shadow Prices
92(2)
Reduced Cost Coefficients
94(2)
Dual Linear Programming Model
96(2)
Parametric and Sensitivity Analysis
98(3)
Multiple Objective Optimization
101(3)
Stochastic Programming
104(5)
Generalizations
109(1)
Final Thoughts
109(16)
Exercises
110(3)
Notes
113(1)
References
114(1)
Appendix 3.A The Simplex Method of Linear Programming
115(10)
Fundamentals of Optimization Models: Mixed Integer Programming
125(52)
Mixed Integer Programming Modeling Vignettes
126(7)
Fixed Costs
127(3)
Economies of Scale
130(1)
Production Changeovers
131(1)
Multiple Choice and Other Nonnumeric Constraints
132(1)
Distribution Center Location Models
133(6)
DC Location Model
134(4)
Generalizations
138(1)
Supply Chain Network Optimization Models
139(12)
Strategic Planning at Ajax
139(12)
Generalizations
151(1)
Designing and Implementing Optimization Modeling Systems for Strategic and Tactical Planning
151(7)
System Design
152(2)
System Implementation
154(4)
Optimization Software
158(5)
Optimizers
159(2)
Algebraic Modeling Language Development Kits
161(2)
Spreadsheet Optimizers
163(1)
Final Thoughts
163(14)
Exercises
164(2)
Notes
166(1)
References
167(2)
Appendix 4.A The Branch-and-Bound Method for Mixed Integer Programming
169(8)
Unified Optimization Methodology for Operational Planning Problems
177(48)
Heuristic Methods for Combinatorial Optimization Problems
179(9)
Local Delivery Heuristics
180(8)
Overview of the Unified Optimization Methodology
188(9)
Production Scheduling Example of Decomposition
189(4)
Unified Optimization Methodology
193(4)
Unified Optimization Methodology Applied to Vehicle Routing
197(10)
Statements of the Optimization Models
198(4)
Numerical Solution
202(3)
Generalizations
205(2)
Unified Optimization Methodology Applied to Production Scheduling
207(11)
Company Background and Numerical Data
207(2)
Unified Optimization Methodology Specialized to Goodstone's Production Scheduling Problem
209(4)
Production Scheduling Solution
213(5)
Generalizations
218(1)
Final Thoughts
218(7)
Exercises
219(3)
Notes
222(1)
References
223(2)
Supply Chain Decision Databases
225(52)
Data Aggregations
228(4)
Aggregating Products
229(2)
Aggregating Customers and Markets
231(1)
Aggregating Suppliers
232(1)
Facility Data
232(5)
Recipes, Processes, Resources, and Costs
232(5)
Transportation Network Data
237(5)
Transportation Network Submodels
237(3)
Transportation Costs and Capacities
240(1)
Modal Choice and Shipment Sizes
241(1)
Utilities for Generating Networks
242(1)
Supplier Data
242(3)
Vendor Costs and Constraints
243(2)
Role of Management Accounting
245(12)
Develop Causal Cost Relationships of Direct and Indirect Costs
247(1)
Activity-Based Costing
248(2)
Connection of ABC to Optimization Models and the Taxonomy of Costs
250(1)
Computation of Transfer Prices, Product and Customer Costs from an Optimal Solution to a Supply Chain Model
250(7)
Demand Forecasting
257(4)
Background
257(1)
Types of Forecasting Models
258(2)
Demand Data Specifications for Optimization Models
260(1)
Forecasting Software
261(1)
Global and Policy Data
261(1)
Model Output Data
262(4)
Management Reports of Output Data
263(1)
Shadow Prices and Reduced Costs
264(1)
Derived Output
265(1)
Connections Among Supply Chain Decision Databases
266(4)
Scenarios
267(1)
Multiperiod Decision Databases
268(1)
Hierarchies
269(1)
Graphical Displays of Data Inputs and Outputs
270(1)
Final Thoughts
271(6)
Exercises
273(1)
Notes
274(1)
References
275(2)
PART THREE APPLICATIONS 277(240)
Strategic and Tactical Supply Chain Planning: State-of-the-Art Modeling Applications
279(44)
Resources and the Resource-Based View of the Firm
281(5)
Taxonomy of Resources
281(1)
Summary of the Resource-Based View of the Firm
282(1)
Connections with Optimization Models
283(3)
Strategic Analysis of Logistics Supply Chains
286(6)
A Framework for Logistics Strategy Formation
286(3)
Constructing an Optimization Model for Strategic Logistics Planning
289(3)
Redesigning the Distribution Network of an Electronics Products Company
292(2)
Strategic Analysis of Manufacturing Supply Chains
294(8)
A Framework for Manufacturing Strategy Formation
294(4)
Constructing an Optimization Model for Strategic Manufacturing Planning
298(4)
Two Manufacturing Strategy Applications
302(8)
Worldwide Sourcing at Delta Industrial Chemicals
303(3)
Postmerger Consolidation of Consumer Paper Companies
306(4)
Tactical Planning
310(2)
Two Tactical Planning Applications
312(4)
Monthly Planning at an Industrial Gases Company
312(3)
Monthly Planning at a Beer Company
315(1)
Final Thoughts
316(7)
Exercises
317(2)
Notes
319(1)
References
320(3)
Strategic and Tactical Supply Chain Planning: Advanced Modeling Applications
323(68)
Integrating Supply Chain and Demand Management
324(2)
Price and Location Sensitive Revenue Curves
326(4)
Integrating Supply Chain and Marketing Models for Consumer Products
330(16)
Consumer Products Supply Chains
331(2)
Modeling the Effects of Marketing Decisions on Demand for Consumer Products
333(4)
Integrating Supply Chain and Marketing Models for Manufacturers of Consumer Products
337(3)
Illustrative Numerical Model
340(6)
Planning for New Product Introduction and Growth
346(3)
Optimization Models for Competitive Analysis
349(13)
Structural Analysis of Industries
349(2)
Theory of Industrial Organization
351(2)
A Model of Price Competition
353(2)
Illustrative Numerical Model
355(7)
Application of Competitive Analysis in the Forest Products Industry
362(2)
Practical Issues of Price Competition
363(1)
Decision Trees and Stochastic Programming
364(11)
Decision Trees
366(4)
An Inventory Example of Stochastic Programming
370(5)
Supply Chain Strategies for Managing Product Variety
375(7)
Exploit Component Commonality and Postponement of Product Differentiation
376(1)
Assemble Differentiated Products from Vanilla Boxes
377(1)
Implement Quick Response to Early Sales
378(4)
Scenario Planning
382(2)
Methodology
382(2)
Connections to Optimization Modeling
384(1)
Final Thoughts
384(7)
Exercises
386(1)
Notes
387(2)
References
389(2)
Integration of Financial and Physical Supply Chains
391(38)
Optimization Models for Corporate Financial Planning
392(10)
Modeling the Balance Sheet
393(2)
Numerical Example of an Optimization Model for Corporate Financial Planning
395(6)
Model and Methodological Extensions
401(1)
Financial Planning Issues Facing the Multinational Corporation
402(1)
A Network Illustration
403(3)
Financial Flows Model
406(9)
Statement of the Financial Flows Model
408(4)
Financial Flows Model Results
412(3)
Modeling Exchange Rate Risks
415(4)
Real Options for Hedging Risks in the Global Economy
419(2)
Final Thoughts
421(8)
Exercises
422(4)
Notes
426(1)
References
427(2)
Operational Supply Chain Planning
429(48)
Taxonomies of Operational Planning Problems
430(11)
Production Planning and Scheduling
431(7)
Vehicle Routing and Scheduling
438(2)
Human Resources Scheduling
440(1)
Modeling Systems for Operational Planning
441(7)
System Integration
441(2)
Steps to Follow in Using a System
443(3)
Real-Time Operational Planning
446(1)
Other Uses of a Modeling System
447(1)
Training, Learning, and System Evolution
447(1)
Vehicle Routing System for an E-Commerce Company
448(7)
Company Background
449(1)
Routing System Description and Use
450(5)
Driver Assignment
455(1)
Production Planning System for a Semiconductor Company
455(8)
Manufacturing and Marketing Background
456(2)
Planning and Modeling Approaches
458(3)
Implementation
461(1)
Results
462(1)
Simulation Models and Systems
463(7)
Deterministic Simulation
463(1)
Monte Carlo Simulation
463(5)
Simulation Software
468(1)
Simulation versus Optimization
469(1)
Final Thoughts
470(7)
Exercises
471(3)
Notes
474(1)
References
475(2)
Inventory Management
477(40)
Inventory Theory Models
479(7)
Deterministic Models
479(2)
Probabilistic Models
481(4)
ABC Classification
485(1)
Incorporating Inventory Management Decisions in Strategic and Tactical Supply Chain Models
486(9)
Incorporating Inventory Management Decisions in Strategic Supply Chain Models
487(5)
Incorporating Inventory Management Decisions in Tactical Supply Chain Models
492(3)
Inventory Management in Distribution Supply Chains
495(9)
Distribution Scheduling in a Reverse Logistics Company
495(5)
Multiechelon Spare Parts Distribution System at IBM
500(4)
Inventory Management in Manufacturing Supply Chains
504(8)
Optimizing Inventory across Hewlett-Packard's Printer Supply Chains
504(4)
Optimal Safety Stock Placement in Kodak's Manufacturing Supply Chains
508(4)
Final Thoughts
512(5)
Exercises
514(1)
Notes
515(1)
References
516(1)
PART FOUR The Future 517(60)
Organizational Adaptation to Optimization Modeling Systems
519(58)
How Organizations Make Decisions
521(6)
The Theory of Rational Choice versus the Reality of Organizational Behavior
522(2)
Uncertainty and Risk
524(1)
Rule-Based Decision Making
524(1)
Deriving Meaning from the Decision Environment
525(1)
Decision-Making Ecologies
526(1)
Contested Issues about Organizational Decision Making
527(12)
Choice-Based versus Rule-Based Decision Making
528(2)
Clear versus Ambiguous Decision Making
530(5)
Instrumental versus Interpretive Decision Making
535(3)
Supply Chain Management as an Interacting Ecology
538(1)
Information Technology as Competitive Advantage
539(8)
Recent History of IT as Competitive Advantage
539(1)
Resource-Based Analysis
540(1)
Attributes of IT as Possible Sources of Competitive Advantage
541(3)
Complementary Organizational Resources
544(3)
Exploitative versus Exploratory IT Developments
547(3)
Acquisition or Development of a Modeling System
548(1)
Use of a Modeling System
549(1)
Enhancement of a Modeling System
550(1)
Business Process Redesign and IT
550(7)
Modeling Systems Invoke Business Process Redesign
553(4)
Supply Chain Coordination Processes and Incentive Contracts
557(5)
Selecting Coordination Processes
558(1)
Principal-Agent Theories of Incentives
559(3)
No Gain without Pain
562(5)
Stages of a Strategic Supply Chain Study
563(3)
Summary
566(1)
Outlook for the Future of Modeling Systems and Their Applications
567(10)
Exercises
572(1)
Notes
573(2)
References
575(2)
Index 577(6)
Credits 583

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