Supply Chain Management A Balanced Approach

by Wisner, Joel D.; Leong, G. Keong; Tan, Keah-Choon

• ISBN13: 9780324191875
• ISBN10: 0324191871
• Format: Hardcover
• Copyright: 2004-02-25
• Publisher: South-Western College Pub

Summary

The coverage in SUPPLY CHAIN MANAGEMENT: A BALANCED APPROACH is balanced and uses a broad brush to encompass OM, purchasing, and distribution with a supply chain management focus and covers a great deal of content that isn't currently available. The book guides the reader through how all aspects of supply chain activity are accomplished effectively and efficiently.

Table of Contents

Preface	xviii
Part 1 Supply Chain Management: An Overview	1	(28)
Introduction to Supply Chain Management	3	(26)
Introduction	4	(1)
What Is Supply Chain Management?	5	(4)
Why Is Supply Chain Management Important?	9	(1)
The Origins of Supply Chain Management	10	(2)
Important Elements of Supply Chain Management	12	(5)
Purchasing Elements	13	(1)
Operations Elements	14	(1)
Distribution Elements	15	(1)
Integration Elements	16	(1)
Future Trends in Supply Chain Management	17	(4)
Expanding the Supply Chain	18	(1)
Increasing Supply Chain Responsiveness	19	(1)
The Greening of Supply Chains	19	(1)
Reducing Supply Chain Costs	20	(1)
Summary	21	(1)
Key Terms	21	(1)
Discussion Questions	21	(3)
Internet Questions	22	(2)
Appendix 1.1: The Beer Game	24	(5)
Part 2 Purchasing Issues in Supply Chain Management	29	(78)
Purchasing Management	31	(29)
Introduction	32	(1)
The Role of Purchasing in an Organization	33	(1)
The Purchasing Process	34	(9)
The Manual Purchasing System	34	(5)
Electronic Procurement Systems (e-Procurement)	39	(3)
Small Value Purchase Orders	42	(1)
Sourcing Decisions: The Make-or-Buy Decision	43	(3)
Reasons for Buying or Outsourcing	44	(1)
Reasons for Making	44	(1)
The Make-or-Buy Break-Even Analysis	45	(1)
Roles of Supply Base	46	(1)
Supplier Selection	47	(1)
How Many Suppliers to Use	48	(1)
Reasons Favoring a Single Supplier	48	(1)
Reasons Favoring More than One Supplier	49	(1)
Purchasing Organization: Centralized versus Decentralized Purchasing	49	(2)
Advantages of Centralization	50	(1)
Advantages of Decentralization	50	(1)
International Purchasing/Global Sourcing	51	(5)
Reasons for Global Sourcing	54	(1)
Potential Challenges for Global Sourcing	54	(1)
Countertrade	55	(1)
Summary	56	(1)
Key Terms	56	(1)
Discussion Questions	56	(4)
Internet Questions	57	(1)
Spreadsheet Problems	57	(3)
Creating and Managing Supplier Relationships	60	(26)
Introduction	62	(1)
Developing Successful Partnerships	62	(5)
Building Trust	63	(1)
Shared Vision and Objectives	63	(1)
Personal Relationships	63	(1)
Mutual Benefits and Needs	63	(1)
Commitment and Top Management Support	63	(1)
Change Management	64	(1)
Information Sharing and Lines of Communication	64	(1)
Capabilities	64	(1)
Performance Metrics	64	(1)
Continuous Improvement	65	(2)
Supplier Evaluation and Certification	67	(6)
The Weighted-Criteria Evaluation System	69	(2)
ISO 9000	71	(1)
ISO 14000	72	(1)
Supplier Development	73	(1)
Supplier Awards	74	(2)
Supplier Relationship Management Software	76	(5)
Summary	81	(1)
Key Terms	81	(1)
Discussion Questions	81	(5)
Internet Questions	82	(4)
Strategic Sourcing for Successful Supply Chain Management	86	(21)
Introduction	87	(2)
Developing Successful Sourcing Strategies	89	(2)
Supply Base Reduction Programs	91	(1)
Evaluating and Selecting Key Suppliers	91	(1)
Strategic Alliance and Supplier Certification Programs	92	(1)
Outsourcing Programs	93	(1)
Early Supplier Involvement	93	(1)
Supplier Management and Alliance Development	94	(2)
Managing and Developing Second-Tier Supplier Relationships	96	(1)
Use of e-Procurement Systems	96	(2)
Rewarding Supplier Performance	98	(1)
Benchmarking Successful Sourcing Practices	98	(1)
Using Third-Party Supply Chain Management Services	99	(2)
Assessing and Improving the Firm's Purchasing Function	101	(3)
Summary	104	(1)
Key Terms	104	(1)
Discussion Questions	104	(3)
Internet Questions	105	(2)
Case Studies	107	(14)
John Deere and Complex Parts, Inc.	107	(3)
CJ Industries	110	(2)
Don't Shoot the Messenger	112	(2)
Early Supplier Integration in the Design of the Skid Steer Loader	114	(3)
Supplier Development at Deere & Company	117	(4)
Part 3 Operations Issues in Supply Chain Management	121	(121)
Demand Forecasting and Collaborative Planning, Forecasting, and Replenishment	123	(33)
Introduction	125	(2)
Matching Supply and Demand	127	(1)
Forecasting Techniques	128	(1)
Qualitative Methods	128	(2)
Quantitative Methods	130	(10)
Components of Time Series Data	130	(1)
Time Series Forecasting Models	131	(9)
Forecast Accuracy	140	(3)
Collaborative Planning, Forecasting, and Replenishment	143	(5)
Software Solutions	148	(3)
Forecasting Software	148	(1)
CPFR Software	149	(2)
Summary	151	(1)
Key Terms	151	(1)
Discussion Questions	152	(4)
Internet Questions	152	(1)
Spreadsheet Problems	152	(4)
Aggregate Planning and Inventory Management	156	(31)
Introduction	157	(1)
Operations Planning	158	(2)
The Aggregate Production Plan	160	(3)
The Chase Production Strategy	161	(1)
The Level Production Strategy	162	(1)
The Mixed Production Strategy	162	(1)
Master Production Scheduling	163	(3)
Master Production Schedule Time Fence	163	(1)
Available-to-Promise Quantities	164	(2)
Dependent Demand and Independent Demand	166	(1)
The Bill of Materials	167	(2)
Materials Requirement Planning	169	(5)
Terms Used in Materials Requirement Planning	170	(4)
Capacity Planning	174	(1)
Independent Demand Inventory Systems	174	(8)
The ABC Inventory Control System	176	(1)
The Economic Order Quantity Model	177	(5)
Summary	182	(1)
Key Terms	182	(1)
Discussion Questions	183	(4)
Spreadsheet Problems	183	(4)
Enterprise Resource Planning Systems	187	(19)
Introduction	188	(1)
The Development of Legacy Materials Requirement Planning Systems	189	(1)
Materials Requirement Planning	189	(1)
Manufacturing Resource Planning	190	(1)
The Development of Enterprise Resource Planning Systems	190	(2)
The Rapid Growth of Enterprise Resource Planning Systems	192	(3)
Implementing Enterprise Resource Planning Systems	195	(1)
Advantages and Disadvantages of Enterprise Resource Planning Systems	196	(3)
Enterprise Resource Planning System Advantages	196	(3)
Enterprise Resource Planning System Disadvantages	199	(1)
Enterprise Resource Planning Software Applications	199	(1)
Enterprise Resource Planning Software Providers	200	(4)
SAP AG	200	(1)
Oracle	201	(1)
PeopleSoft	202	(1)
J. D. Edwards	202	(1)
Baan	203	(1)
Summary	204	(1)
Key Terms	204	(1)
Discussion Questions	204	(2)
Internet Questions	204	(2)
Process Management: Just-in-Time and Total Quality Management Issues in Supply Chain Management	206	(36)
Introduction	208	(1)
Just-in-Time and Supply Chain Management	209	(9)
The Elements of Just-in-Time	210	(8)
Total Quality Management and Supply Chain Management	218	(19)
The Elements of Total Quality Management	219	(8)
The Tools of Total Quality Management	227	(10)
Summary	237	(1)
Key Terms	237	(1)
Discussion Questions	237	(5)
Internet Questions	238	(1)
Problems	238	(4)
Case Studies	242	(29)
JIT Implementation Issues at the Oak Hills Production Facility	242	(6)
ISO 14001 Implementation at Mt. Baker Products	248	(5)
Service Parts Operations for General Motors Brazil	253	(4)
A Comparative Analysis of Utility Rate Forecasting: The Cape Coral Experience	257	(4)
AMP Incorporated, 1941--1999	261	(4)
Whirlpool Corporation---Giving ERP a Spin	265	(6)
Part 4 Distribution Issues in Supply Chain Management	271	(125)
Domestic and International Transportation	273	(36)
Introduction	275	(1)
The Impact of Transportation on Supply Chain Management	276	(1)
The Fundamentals of Transportation	277	(11)
The Objective of Transportation	277	(1)
Legal Forms of Transportation	277	(1)
The Modes of Transportation	278	(2)
Intermodal Transportation	280	(1)
Third-Party Logistics Services	281	(2)
Transportation Pricing	283	(1)
Transportation Regulation and Deregulation	284	(4)
Warehousing	288	(7)
The Importance and Types of Warehouses	290	(1)
Risk Pooling and Warehouse Location	291	(3)
Just-in-Time Warehousing	294	(1)
International Transportation Issues	295	(4)
International Freight Security	295	(1)
International Intermediaries	295	(1)
Land Bridges	296	(1)
Foreign Trade Zones	296	(2)
The North American Free Trade Agreement	298	(1)
Transportation Management	299	(2)
Transportation Supply Base Reduction	299	(1)
Mode and Carrier Selection	299	(1)
Connecting Transportation Services	299	(1)
Outsourcing the Transportation Function	300	(1)
Measuring Transportation Performance	300	(1)
Creating Strategic Carrier Alliances	300	(1)
Performing Transportation Audits	301	(1)
e-Commerce and Transportation	301	(4)
Electronic Invoice Presentment and Payment	301	(1)
Supply Chain Visibility Technologies	302	(1)
Third-Party Electronic Transaction Platforms	302	(2)
Offshore Information Technology Outsourcing	304	(1)
Summary	305	(1)
Key Terms	305	(1)
Discussion Questions	306	(3)
Internet Questions	306	(3)
Customer Relationship Management	309	(25)
Introduction	311	(1)
Defining Customer Relationship Management	312	(1)
Customer Relationship Management's Role in Supply Chain Management	313	(1)
Key Tools and Components of Customer Relationship Management	314	(10)
Segmenting Customers	314	(3)
Predicting Customer Behaviors	317	(1)
Customer Profitability Determination	317	(1)
Personalizing Customer Communications	317	(1)
Automated Sales Force Tools	318	(1)
Customer Service Capabilities	319	(5)
Designing and Implementing a Successful Customer Relationship Management Program	324	(4)
Creating the Customer Relationship Management Plan	325	(1)
Involving Customer Relationship Management Users from the Outset	325	(1)
Selecting the Right Application and Provider	325	(1)
Integrating Existing Customer Relationship Management Applications	326	(1)
Establishing Performance Measures	327	(1)
Providing Training for Customer Relationship Management Users	327	(1)
Some Customer Relationship Management Application Providers	328	(2)
Oracle	328	(1)
Siebel Systems	329	(1)
Future Trends in Customer Relationship Management	330	(1)
Summary	331	(1)
Key Terms	331	(1)
Discussion Questions	331	(3)
Internet Questions	332	(2)
Facility Location Decisions	334	(28)
Introduction	336	(1)
Location Strategies	337	(2)
Critical Location Factors	339	(9)
Regional Trade Agreements and the World Trade Organization	340	(1)
Competitiveness of Nations	341	(1)
Government Taxes and Incentives	342	(1)
Currency Stability	343	(1)
Access and Proximity to Markets/Customers	343	(1)
Environmental Issues	344	(1)
Labor Issues	345	(1)
Right-to-Work Laws	345	(1)
Access to Suppliers and Cost	345	(1)
Utility Availability and Cost	346	(1)
Quality-of-Life Issues	346	(2)
Land Availability and Cost	348	(1)
Facility Location Models	348	(4)
The Weighted-Factor Rating Model	348	(1)
The Break-Even Model	349	(1)
The Center-of-Gravity Model	350	(2)
Helpful On-Line Information for Location Analysis	352	(2)
Business Clusters	354	(3)
Summary	357	(1)
Key Terms	357	(1)
Discussion Questions	357	(5)
Internet Questions	358	(1)
Spreadsheet Problems	358	(4)
Service Response Logistics	362	(34)
Introduction	363	(1)
An Overview of Service Operations	364	(9)
Service Productivity	365	(1)
Global Service Issues	366	(1)
Service Strategy Development	366	(1)
The Service Delivery System	367	(1)
Service Location and Layout Strategies	368	(5)
Supply Chain Management in Services	373	(1)
The Primary Concerns of Service Response Logistics	374	(18)
Managing Service Capacity	374	(4)
Managing Waiting Times	378	(8)
Managing Distribution Channels	386	(4)
Managing Service Quality	390	(2)
Summary	392	(1)
Key Terms	392	(1)
Discussion Questions	392	(4)
Internet Questions	393	(1)
Spreadsheet Problems	393	(3)
Case Studies	396	(11)
Dr. Martin's Office	396	(4)
Mass Customization at the Gravatai Automotive Industrial Complex	400	(7)
Part 5 Sustaining Competetive Advantage	407	(61)
Supply Chain Process Integration	409	(22)
Introduction	410	(1)
The Supply Chain Integration Model	411	(9)
Identify Critical Supply Chain Trading Partners	411	(1)
Review and Establish Supply Chain Strategies	412	(1)
Align Supply Chain Strategies with Key Supply Chain Process Objectives	412	(3)
Develop Internal Performance Measures for Key Process Effectiveness	415	(1)
Assess and Improve Internal Integration of Key Supply Chain Processes	416	(1)
Develop Supply Chain Performance Measures for the Key Processes	417	(1)
Assess and Improve External Process Integration and Supply Chain Performance	417	(2)
Extend Process Integration to Second-Tier Supply Chain Partners	419	(1)
Reevaluate the Integration Model Annually	420	(1)
Obstacles to Process Integration Along the Supply Chain	420	(8)
The Silo Mentality	420	(2)
Lack of Supply Chain Visibility	422	(1)
Lack of Trust	423	(2)
Lack of Knowledge	425	(1)
Activities Causing the Bullwhip Effect	425	(3)
Summary	428	(1)
Key Terms	428	(1)
Discussion Questions	428	(3)
Internet Question	429	(2)
Performance Measurement Along the Supply Chain	431	(23)
Introduction	433	(1)
Viewing the Supply Chain as a Competitive Weapon	433	(4)
Understanding End Customers	435	(1)
Understanding Supply Chain Partner Requirements	435	(1)
Adjusting Supply Chain Member Capabilities	435	(2)
Traditional Performance Measures	437	(3)
Use of Organization Costs, Revenue, and Profitability Measures	437	(1)
Use of Performance Standards and Variances	438	(1)
Use of Firm-Wide Productivity and Utilization Measures	438	(2)
World-Class Performance Measurement Systems	440	(1)
Developing World-Class Performance Measures	440	(1)
Supply Chain Performance Measurement Systems	441	(3)
Specific Supply Chain Performance Measures	442	(2)
The Balanced Scorecard	444	(1)
The Supply Chain Operations Reference Model	445	(5)
Summary	450	(1)
Key Terms	450	(1)
Discussion Questions	450	(4)
Internet Questions	452	(2)
Looking to the Future of Supply Chain Management	454	(14)
Introduction	456	(1)
Expanding the Supply Chain	457	(2)
Extending Progress Integration Throughout the Supply Chain	457	(1)
The Global Expansion of Supply Chains	458	(1)
The Greening of Supply Chains	459	(1)
Increasing Supply Chain Responsiveness	459	(2)
Reducing Supply Chain Costs	461	(5)
Reducing Purchasing Costs	462	(1)
Outsourcing Supply Chain Management Functions	462	(1)
Managing Inventories Along the Supply Chain	463	(3)
Summary	466	(1)
Key Terms	466	(1)
Discussion Questions	466	(2)
Internet Question	466	(2)
Case Studies	468	(8)
Cisco Systems: The Supply Chain Story	468	(5)
Genexis and the Brazilian Pharmaceutical Industry	473	(3)
Appendixes	476	(2)
Glossary	478	(9)
Author Index	487	(5)
Subject Index	492