Supply Chain Management : Strategy, Planning, and Operation

by Chopra, Sunil; Meindl, Peter

• ISBN13: 9780131730427
• ISBN10: 0131730428
• Edition: 3rd
• Format: Hardcover
• Copyright: 2010-01-01
• Publisher: Pearson College Div

Summary

This book brings together the strategic role of the supply chain, key strategic drivers of supply chain performance, and the underlying tools and techniques for supply chain analysis. Students are able to articulate the strategic importance of supply chain thinking and support their ideas with evidence that can be built using models.

Table of Contents

Preface	xiii
PART I BUILDING A STRATEGIC FRAMEWORK TO ANALYZE SUPPLY CHAINS	1	(72)
Understanding the Supply Chain	3	(19)
What Is a Supply Chain?	3	(2)
The Objective of a Supply Chain	5	(1)
The Importance of Supply Chain Decisions	6	(3)
Decision Phases in a Supply Chain	9	(1)
Process View of a Supply Chain	10	(6)
Examples of Supply Chains	16	(4)
Summary of Learning Objectives	20	(2)
Discussion Questions	20	(1)
Bibliography	21	(1)
Supply Chain Performance: Achieving Strategic Fit and Scope	22	(22)
Competitive and Supply Chain Strategies	22	(2)
Achieving Strategic Fit	24	(14)
Expanding Strategic Scope	38	(4)
Summary of Learning Objectives	42	(2)
Discussion Questions	43	(1)
Bibliography	43	(1)
Supply Chain Drivers and Metrics	44	(29)
Drivers of Supply Chain Performance	44	(2)
Framework for Structuring Drivers	46	(2)
Facilities	48	(2)
Inventory	50	(3)
Transportation	53	(2)
Information	55	(3)
Sourcing	58	(2)
Pricing	60	(2)
Obstacles to Achieving Fit	62	(2)
Summary of Learning Objectives	64	(9)
Discussion Questions	65	(1)
Bibliography	65	(1)
Case Study Seven-Eleven Japan Co.	66	(7)
PART II DESIGNING THE SUPPLY CHAIN NETWORK	73	(112)
Designing Distribution Networks and Applications to e-Business	75	(39)
The Role of Distribution in the Supply Chain	75	(1)
Factors Influencing Distribution Network Design	76	(4)
Design Options for a Distribution Network	80	(14)
e-Business and the Distribution Network	94	(16)
Distribution Networks in Practice	110	(2)
Summary of Learning Objectives	112	(2)
Discussion Questions	112	(1)
Bibliography	113	(1)
Network Design in the Supply Chain	114	(38)
The Role of Network Design in the Supply Chain	114	(1)
Factors Influencing Network Design Decisions	115	(6)
Framework for Network Design Decisions	121	(3)
Models for Facility Location and Capacity Allocation	124	(16)
The Role of IT in Network Design	140	(1)
Making Network Design Decisions in Practice	141	(2)
Summary of Learning Objectives	143	(9)
Discussion Questions	143	(1)
Exercises	143	(6)
Bibliography	149	(1)
Case Study Managing Growth at SportStuff.com	150	(2)
Network Design in an Uncertain Environment	152	(33)
The Impact of Uncertainty on Network Design	152	(1)
Discounted Cash Flow Analysis	153	(1)
Representations of Uncertainty	154	(2)
Evaluating Network Design Decisions Using Decision Trees	156	(8)
AM Tires: Evaluation of Supply Chain Design Decisions Under Uncertainty	164	(11)
Risk Management and Network Design	175	(2)
Making Supply Chain Decisions Under Uncertainty in Practice	177	(1)
Summary of Learning Objectives	178	(7)
Discussion Questions	178	(1)
Exercises	179	(2)
Bibliography	181	(1)
Case Study BioPharma, Inc.	182	(3)
PART III PLANNING DEMAND AND SUPPLY IN A SUPPLY CHAIN	185	(74)
Demand Forecasting in a Supply Chain	187	(31)
The Role of Forecasting in a Supply Chain	187	(1)
Characteristics of Forecasts	188	(1)
Components of a Forecast and Forecasting Methods	189	(2)
Basic Approach to Demand Forecasting	191	(2)
Time-Series Forecasting Methods	193	(10)
Measures of Forecast Error	203	(1)
Forecasting Demand at Tahoe Salt	204	(6)
The Role of IT in Forecasting	210	(1)
Risk Management in Forecasting	211	(1)
Forecasting in Practice	212	(1)
Summary of Learning Objectives	213	(5)
Discussion Questions	213	(1)
Exercises	214	(1)
Bibliography	215	(1)
Case Study Specialty Packaging Corporation, Part A	216	(2)
Aggregate Planning in a Supply Chain	218	(23)
The Role of Aggregate Planning in a Supply Chain	218	(2)
The Aggregate Planning Problem	220	(1)
Aggregate Planning Strategies	221	(1)
Aggregate Planning Using Linear Programming	222	(8)
Aggregate Planning in Excel	230	(2)
The Role of IT in Aggregate Planning	232	(1)
Implementing Aggregate Planning in Practice	233	(1)
Summary of Learning Objectives	234	(7)
Discussion Questions	235	(1)
Exercises	235	(3)
Case Study Specialty Packaging Corporation, Part B	238	(3)
Planning Supply and Demand in a Supply Chain: Managing Predictable Variability	241	(18)
Responding to Predictable Variability in a Supply Chain	241	(1)
Managing Supply	242	(2)
Managing Demand	244	(8)
Implementing Solutions to Predictable Variability in Practice	252	(1)
Summary of Learning Objectives	252	(7)
Discussion Questions	253	(1)
Exercises	253	(3)
Bibliography	256	(1)
Case Study Mintendo Game Girl	257	(2)
PART IV PLANNING AND MANAGING INVENTORIES IN A SUPPLY CHAIN	259	(124)
Managing Economies of Scale in a Supply Chain: Cycle Inventory	261	(43)
The Role of Cycle Inventory in a Supply Chain	261	(3)
Economies of Scale to Exploit Fixed Costs	264	(11)
Economies of Scale to Exploit Quantity Discounts	275	(10)
Short-Term Discounting: Trade Promotions	285	(5)
Managing Multiechelon Cycle Inventory	290	(4)
Estimating Cycle Inventory-Related Costs in Practice	294	(2)
Summary of Learning Objectives	296	(8)
Discussion Questions	296	(1)
Exercises	297	(3)
Bibliography	300	(1)
Case Study Delivery Strategy at MoonChem	301	(2)
Appendix 10A: Economic Order Quantity	303	(1)
Managing Uncertainty in a Supply Chain: Safety Inventory	304	(42)
The Role of Safety Inventory in a Supply Chain	304	(2)
Determining Appropriate Level of Safety Inventory	306	(10)
Impact of Supply Uncertainty on Safety Inventory	316	(2)
Impact of Aggregation on Safety Inventory	318	(11)
Impact of Replenishment Policies on Safety Inventory	329	(3)
Managing Safety Inventory in a Multiechelon Supply Chain	332	(1)
The Role of IT in Inventory Management	333	(1)
Estimating and Managing Safety Inventory in Practice	334	(1)
Summary of Learning Objectives	335	(11)
Discussion Questions	336	(1)
Exercises	336	(4)
Bibliography	340	(1)
Case Study Managing Inventories at ALKO Inc.	341	(2)
Appendix 11A: The Normal Distribution	343	(1)
Appendix 11B: The Normal Distribution in Excel	344	(1)
Appendix 11C: Expected Shortage Cost per Cycle	345	(1)
Determining the Optimal Level of Product Availability	346	(37)
The Importance of the Level of Product Availability	346	(1)
Factors Affecting Optimal Level of Product Availability	347	(9)
Managerial Levers to Improve Supply Chain Profitability	356	(11)
Setting Product Availability for Multiple Products Under Capacity Constraints	367	(3)
Setting Optimal Levels of Product Availability in Practice	370	(1)
Summary of Learning Objectives	370	(13)
Discussion Questions	371	(1)
Exercises	371	(4)
Bibliography	375	(1)
Appendix 12A: Optimal Level of Product Availability	376	(1)
Appendix 12B: An Intermediate Evaluation	377	(1)
Appendix 12C: Expected Profit from an Order	378	(1)
Appendix 12D: Expected Overstock from an Order	379	(1)
Appendix 12E: Expected Understock from an Order	380	(1)
Appendix 12F: Simulation Using Spreadsheets	381	(2)
PART V DESIGNING AND PLANNING TRANSPORTATION NETWORKS	383	(32)
Transportation in a Supply Chain	385	(30)
The Role of Transportation in a Supply Chain	385	(2)
Modes of Transportation and Their Performance Characteristics	387	(5)
Transportation Infrastructure and Policies	392	(3)
Design Options for a Transportation Network	395	(4)
Trade-Offs in Transportation Design	399	(7)
Tailored Transportation	406	(2)
The Role of IT in Transportation	408	(1)
Risk Management in Transportation	409	(1)
Making Transportation Decisions in Practice	410	(1)
Summary of Learning Objectives	411	(4)
Discussion Questions	412	(1)
Exercises	412	(1)
Bibliography	413	(2)
PART VI MANAGING CROSS-FUNCTIONAL DRIVERS IN A SUPPLY CHAIN	415	(113)
Sourcing Decisions in a Supply Chain	417	(42)
The Role of Sourcing in a Supply Chain	417	(2)
In-House or Outsource	419	(7)
Third- and Fourth-Party Logistics Providers	426	(2)
Supplier Scoring and Assessment	428	(4)
Supplier Selection---Auctions and Negotiations	432	(4)
Contracts and Supply Chain Performance	436	(11)
Design Collaboration	447	(1)
The Procurement Process	448	(3)
Sourcing Planning and Analysis	451	(1)
The Role of IT in Sourcing	452	(1)
Risk Management in Sourcing	453	(1)
Making Sourcing Decisions in Practice	454	(1)
Summary of Learning Objectives	454	(5)
Discussion Questions	456	(1)
Exercises	456	(2)
Bibliography	458	(1)
Pricing and Revenue Management in a Supply Chain	459	(23)
The Role of Pricing and Revenue Management in a Supply Chain	459	(2)
Pricing and Revenue Management for Multiple Customer Segments	461	(7)
Pricing and Revenue Management for Perishable Products	468	(5)
Pricing and Revenue Management for Seasonal Demand	473	(1)
Pricing and Revenue Management for Bulk and Spot Contracts	474	(2)
The Role of IT in Pricing and Revenue Management	476	(1)
Using Pricing and Revenue Management in Practice	477	(1)
Summary of Learning Objectives	478	(4)
Discussion Questions	479	(1)
Exercises	479	(2)
Bibliography	481	(1)
Information Technology in a Supply Chain	482	(15)
The Role of IT in a Supply Chain	482	(3)
The Supply Chain IT Framework	485	(3)
Customer Relationship Management	488	(1)
Internal Supply Chain Management	489	(2)
Supplier Relationship Management	491	(1)
The Transaction Management Foundation	492	(1)
The Future of IT in the Supply Chain	492	(1)
Risk Management in IT	493	(1)
Supply Chain IT in Practice	494	(1)
Summary of Learning Objectives	495	(2)
Discussion Questions	496	(1)
Bibliography	496	(1)
Coordination in a Supply Chain	497	(31)
Lack of Supply Chain Coordination and the Bullwhip Effect	497	(2)
The Effect on Performance of Lack of Coordination	499	(2)
Obstacles to Coordination in a Supply Chain	501	(5)
Managerial Levers to Achieve Coordination	506	(5)
Building Strategic Partnerships and Trust Within a Supply Chain	511	(7)
Continuous Replenishment and Vendor-Managed Inventories	518	(1)
Collaborative Planning, Forecasting, and Replenishment (CPFR)	519	(4)
The Role of IT in Coordination	523	(1)
Achieving Coordination in Practice	523	(2)
Summary of Learning Objectives	525	(3)
Discussion Questions	526	(1)
Bibliography	526	(2)
Name Index	528	(2)
Subject Index	530