ISyE 3101: Supply Chain Modeling

The Professor

Dr. J. Vande VateE-Mail:

john.vandevate@isye.gatech.eduPhone: 4-3035Office: 433Office Hours: 11-12 TTh, 12-1 W http://www.isye.gatech.edu/~jvandeva

Gary Larson Look-Alike

May I be excused?

My brain is full

Course Organization

Grading: Exams 60% Group Projects 30% Class Participation 10%

Exams

In-class, open-book, open-notes, Individual workDrop Lowest GradeSeptember 16October 14December ?NO MAKE UP EXAMS

Group Projects

You form groups of 4 or 5No late projects acceptedBrief report for eachOne Major Group Project

Group Projects

Describe a company's supply chain Project Plan 9/2 Final Report 12/7

World Oil Case Study 9/14American Lighting Products Case 9/28Industrial Distributors Case 10/5Orion Foods Case Study 10/12Usemore Soap Case Study 11/9Network Planning Case 11/18

Labs

No formal meetingsTime when your teammates should

be availableTry to have grader available part of

the time

Project ReportsTitle Page – List all group member names Executive Summary

2 to 3 paragraph summary

Introduction Describe briefly the issues

Main Body (Do not use this name) Organize information into a logical argument

providing support for your conclusions

ConclusionsAppendices

Major Project: Part I

Project Plan DUE 9/2 Company Name The level of detail Overview of the company Sources of information available to you Project plan with specific tasks and

completion dates.

Major Group Project: Part II

Final Report Major products and markets Major raw materials and their sources Major facilities and their functions Transportation modes employed Special Information flows Special methods of payment A discussion of how each component

relates to the corporate strategy.

Class Participation

Tent CardsDaily participationBe prepared for class especially on

days we discuss cases.

Your Responsibilities

Keep up with information posted on the class home page.

Form and manage your lab group. Keep up with the assignments. Participate in class discussions.Ask questions.

Syllabus

Subject to change, so check frequently

Exam dates are fixed so you can plan around them.

Supply Chain Management

Getting the right goods and services to the right place at the right time while making the greatest contribution to the firm.

Also concerned with Information Payments

Management Component

Strategy Marketing Finance

Industrial Engineering Component

Design of the Systems Processes

Beyond Traditional Business Functions

Supply Chain involves Purchasing Transportation and Traffic Manufacturing Warehousing Marketing etc.

Beyond the Corporation

Sand to SandIncludes

Services to support the product Reverse channels to recover the

product

The Supply Chain

ProductionGermanyAtlantaBatam

Packaging and ShippingAtlantaGermany

Global DistributionUSACanadaEuropeJapanOther

Distribution Channels

Mail Order HousesWal-MartOpticians/OptometristsRetailCountry Specific LabelingPrivate LabelMerchandiser

The Supply Chain

Form Teams of 4 Select a Team

Representative Beer Name A Retailer A Wholesaler A Distributor A Factory

The Beer Game

Objective: Minimize Costs inventory carrying costs:

$.50/case/week backlog costs: $1.00/case/week

Rules: No communication between players

Getting Started

Inventory: 12 cases of beer Shipping: 4 cases of beer Production delay: 4 cases of beer Orders:

Orders placed: One for 4 cases Incoming orders: One for 4 cases Production requests: One for 4 cases

The Supply Chain

Recording

Team Name:_______________________ Circle your position: Wholesaler Retailer

Distributor Factory Week Inventory Backlog Your Orders Placed

1 . . . 2 . . . 3 . . .

Calculations

This week's order from customer: _____

last week's backlog: + _____

total orders to ship: = _____

this week's shipments: - _____

this week's backlog: = _____

Step 1

Retailer Get new orders from Market Fill orders from Inventory Advance goods in shipping delay

Wholesaler Advance outbound shipping delay Advance inbound shipping delay Fill incoming orders + back orders

Step 1 Cont’d

Distributor Advance outbound shipping delay Advance inbound shipping delay Fill incoming orders + back orders

Factory Advance outbound shipping delay Advance inbound production delay Fill incoming orders + back orders Advance raw materials delay

Step 2

All: Record your inventory or backlog

Step 3Factory

Advance order placed by Distributor Place and record new order for Raw materials

Distributor Advance order placed by Wholesaler Place and record new order for Factory

Wholesaler Advance order placed by Retailer Place and record new order for Distributor

Retailer Place and record new order for Wholesaler

Step 4

Clean up and prepare for next round

Repeat

Before you leave

Plot what you think consumer orders were on the sheet that reads Customer Orders (All but Retailers) TURN THIS IN. BE SURE YOUR TEAM AND POSITION ARE MARKED.

Due Next Time

Plot your inventory position (Effective Inventory)

Plot your orders (Orders)In each case horizontal access is

“Weeks”Turn this in at the beginning

Due by Noon Wednesday

E-mail an Excel spreadsheet with your record to me. Include your Team Name and your Position.

Team Name: ________________Your Position: ________________

Week

Inventory (NON-

NEGATIVE)

Backlog (NON-

NEGATIVE)

Orders you

placed Week

Inventory (NON-

NEGATIVE)

Backlog (NON-

NEGATIVE)

Orders you

placed1 262 273 284 295 306 317 32