-
9/7/14 Supply Chain Management: Course Overview
lcm.csa.iisc.ernet.in/scm/scm_overview.html 1/4
E1 234 SUPPLY CHAIN MANAGEMENT : Overview
1. PREAMBLE
1.1. What is Supply Chain Management?
A SUPPLY CHAIN is a network of supplier, manufacturing,
assembly, distribution, and logistics facilities that
perform the functions of procurement of materials,
transformation of these materials into intermediate and
finished
products, and the distribution of these products to customers.
Supply chains arise in both manufacturing and
service organizations. SUPPLY CHAIN MANAGEMENT (SCM) is a
systems approach to managing the
entire flow of information, materials, and services from raw
materials suppliers
through factories and warehouses to the end customer. SCM is
different from SUPPLY MANAGEMENT
which emphasizes only the buyer-supplier relationship.
Supply chain management has emerged as the new key to
productivity and competitiveness of manufacturing and
service enterprises. The importance of this area is shown by a
significant spurt in research in the last five years
and also proliferation of supply chain solutions and supply
chain companies (e.g. i2, Manugistics, etc.). All major
ERP companies are now offering supply chain solutions as a major
extended feature of their ERP packages.
Supply chain management is a major application area for Internet
Technologies and Electronic Commerce(ITEC). In fact, advances in
ITEC have contributed to growing importance of supply chain
management and
SCM in turn has contributed to many advances in ITEC.
1.2. Two Faces of Supply Chain Management
SCM has two major faces to it. The first can be called loosely
as the back-end and comprises the physical
building blocks such as the
supply facilities, production facilities, warehouses,
distributors, retailers, and logistics facilities. The back-end
essentially involves
production, assembly, and physical movement. Major decisions
here include:
1. Procurement (supplier selection, optimal procurement
policies, etc.)
2. Manufacturing (plant location, product line selection,
capacity planning, production scheduling, etc.)
3. Distribution (warehouse location, customer allocation, demand
forecasting, inventory management, etc.)
4. Logistics (selection of logistics mode, selection of ports,
direct delivery, vehicle scheduling, etc.)
5. Global Decisions (product and process selection, planning
under uncertainty, real-time monitoring and
control, integrated scheduling)
Stochastic models (Markov chains, queueing networks),
optimization models (LP, ILP, MILP, heuristics), and
simulation provide the basis for the above decisions.
-
9/7/14 Supply Chain Management: Course Overview
lcm.csa.iisc.ernet.in/scm/scm_overview.html 2/4
The second face (which can be called the front-end) is where IT
and ITEC play a key role. This face involves
processing and use of information to facilitate and optimize the
back-end operations. Key technologies here
include: EDI (for exchange for information across different
players in the supply chain); Electronic payment
protocols; Internet auctions (for selecting suppliers,
distributors, demand forecasting, etc.); Electronic Business
Process Optimization; E-logistics; Continuous tracking of
customer orders through the Internet; Internet-based
shared services manufacturing; etc.
2. OBJECTIVES OF THE COURSE
To introduce the major building blocks, major functions, major
business processes, performance metrics, and
major decisions
(strategic, tactical, and operational) in supply chain
networks
To provide an insight into the role of Internet Technologies and
Electronic Commerce in supply chain
operations and to discuss
technical aspects of key ITEC components in supply chain
management.
To bring out the role of stochastic models (Markov chains,
queueing networks); optimization models (LP,
ILP, MILP, GA, Constraint Programming); and simulation in supply
chain planning and decision-making. Thiswill provide the foundation
for design and analysis of supply chains.
3. STRUCTURE OF THE COURSE
Part 1: Building Blocks, Performance Measures, Decisions
Topics
Building Blocks of a Supply Chain Networt
Performance Measures Decisions in the Supply Chain World Models
for Supply Chain Decision-Making
Resources
Lecture Notes Problem Set: 1 Chapter 2: N. Viswanadham. Analysis
of Manufacturing Enterprises. Kluwer Academic
Publishers. Chapter 7: N. Viswanadham. Analysis of Manufacturing
Enterprises. Kluwer Academic
Publishers. Y. Narahari and S. Biswas. Supply Chain Management:
Models and Decision Making
Ram Ganeshan and Terry P. Harrison. An Introduction to Supply
Chain Management D. Connors, D. An, S. Buckley, G. Feigin, R.
Jayaraman, A. Levas, N. Nayak, R. Petrakian,
R. Srinivasan. Dynamic modelling for business process
reengineering. IBM Research Report19944, 1995
-
9/7/14 Supply Chain Management: Course Overview
lcm.csa.iisc.ernet.in/scm/scm_overview.html 3/4
Part 2: Supply Chain Inventory Management
Topics
Economic Order Quantity Models
Reorder Point Models Multiechelon Inventory Systems
Resources
Lecture Notes
Chapter 3: W.J. Hopp and M.L. Spearman. Factory Physics:
Foundations of ManufacturingManagement
Chapter 17: W.J. Hopp and M.L. Spearman. Factory Physics:
Foundations of Manufacturing
Management
Part 3: Mathematical Foundations of Supply Chain Solutions
Topics
Use of Stochastic Models and Combinatorial Optimization in:
Supply Chain Planning Supply Chain Facilities Layout
Capacity Planning Inventory Optimization Dynamic Routing and
Scheduling
Understanding the "internals" of industry best practice
solutions
Resources
Lecture Notes
Part 4: Case Studies
Topics
Digital Equipment Case Study IBM Case Study
Resources
Lecture Notes
Part 5: Internet Techologies and Electronic Commerce in SCM
-
9/7/14 Supply Chain Management: Course Overview
lcm.csa.iisc.ernet.in/scm/scm_overview.html 4/4
Topics
Relation to ERP E-procurement
E-Logistics
Internet Auctions
E-markets Electronic business process optimization
Business objects in SCM
Resources
Lecture Notes
Syllabus Course Organization &
Overview Course Schedule
Books and References
Problems
Term Papers Mini Projects
Useful Web Resources
Back to Home
