Engineering System Division
Sloan School of Management
15.763J; ESD.268J,1.274J
Professor David Simchi-Levi
Professor Don Rosenfield
H2, Spring 2016
MANUFACTURING SYSTEMS AND SUPPLY CHAIN DESIGN
Monday, Wednesday 8:30 to 10 am, Room E51-345
Recitations: Friday 8:30 to 10 am, Room E51-315
COURSE OUTLINE AND ASSIGNMENTS
Class will be a mix of lectures, case discussions and applications. The course objectives are to
develop modeling skills and to provide new concepts and problem-solving tools, applicable to
the design of manufacturing systems and supply chains.
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NOTE 15.762 OFFERED IN H1 IS NOT A PREREQUISITE FOR 15.763 IN H2.
NEVERTHELESS, 15.762 SHOULD BE VERY HELPFUL FOR THIS CLASS.
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Course requirements are to come to class prepared, and to participate in the class. There will be
a number of assignments throughout the class. The grading will depend on the assignments and
contribution to the class.
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Most of the class material will be posted on the class web site on stellar. In addition, four cases
have to be purchased from study.net. We recommend the following book, and will suggest
complementary readings throughout the class:
in
Simchi-Levi, Kaminsky and Simchi-Levi, Designing and Managing the Supply Chain, Irwin
McGraw Hill, 3rd edition, 2008 (SKS)
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We also recommend and suggest the following books as useful references or complements:
Simchi-Levi, Operations Rules, MIT Press, 2011 (SL)
Fine, Clockspeed, Perseus Books, 1998.
Hopp and Spearman, Factory Physics, 2nd edition, Irwin, 2000. (HS)
Hopp, Supply Chain Science, McGraw-Hill/Irwin, 2008 (H)
Nahmias, Production and Operations Analysis, 4th edition, Irwin, 2000 (N)
Chopra and Meindl, Supply Chain Management, Prentice Hall, 2nd edition 2004 (CM)
Shapiro, Modeling the Supply Chain, Duxbury, 2001 (S)
Silver, Pyke, Peterson, Inventory Mgmt and Pdtn Planning & Scheduling, Wiley, 3rd ed., 1998.
Instructors:
D. Simchi-Levi
Donald Rosenfield
dslevi@mit.edu
donrose@mit.edu `
TA:
Louis Lester Chen
Wang Chi Cheung
llchen@mit.edu
wangchimit@gmail.com
253 7160
253 1064
1-171
E62-577
E40-130
E40-130
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Manufacturing System & Supply Chain Design
Mar 28
Introduction and Course Overview
Preparation
DSL
Risk Case assigned
DSL
Read MetalWorks
Case
TAs
Install LogicNet
Software
Supply Chain Risk Mitigation Strategies
Mar 30
Network Design
Read the MetalWorks case (posted on Stellar) in preparation
for class; this case assignment is due May 13th, but requires
the use of an optimization software tool that will be
discussed in class today and shown in this week’s recitation
Apr 1
Recitation to demo LogicNet software
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This is an optional recitation where we will demo the
software tool that you will need to use for the MetalWorks
case.
Supply-Chain Flexibility and Strategic Inventory
Apr 6
System design and model selection
Prepare case: Sorenson Research
Apr 8
Apr 11
Apr 15
Recitation
Guest visitor – Xin Huang, Expert Associate Principle
McKinsey. Conducting Supply Chain Transformation
Supply Chain strategy: Strategic choices, effects of
globalization
Recitation
Apr 18
Patriots Day—No Class
Apr 20
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Apr 13
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Apr 4
DSL
DR
Assignment Due:
Strategic Inventory
Problem Set
Submit individual
assignment (full-page
answer to questions
posted on Stellar)
TAs
DR
TAs
Review of basic
queuing theory. Risk
case due
System Design – Service Systems
Prepare case: Manzana Insurance – Fruitvale Branch.
DR
Submit individual
assignment (full-page
answer to questions
posted on Stellar)
Apr 22
Recitation
TAs
Apr 25
Distribution Strategies
DSL
Apr 27
Big Data Analytics
DSL
Apr 29
Recitation: Dual sourcing game
TAs
Simulation game on
Dual sourcing
May 2
Dual Sourcing
DR
Submit individual
assignment (full-page
2
Mini- Case: Mexico or China: Managing a Global Network
answer to questions)
posted on Stellar)
Guest Visitor: Joe Franken, Senior Associate, Cohesive
Capital Partners
May 4
DR
May 6
Guest visitor – Viju Menon, Senior Vice President, Supply
Chain Services, Verizon
Open
May 9
Flexibility and Capacity Planning
DR
Submit individual
assignment (full-page
answer to questions)
posted on Stellar)
All
MetalWorks Case due
Prepare Case: Seagate Technologies: Operational Hedging
May 11
Wrap up and debrief of MetalWorks case
Course Evaluation:
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Strategic Inventory Problem Set (due 4/4) – individual assignment
Risk case (due 4/15) – group assignment
MetalWorks case (due 5/13) – group assignment
Case assignments (due 4/6, 4/20, 5/2, 5/9) ) –individual assignments
Class participation
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10%
15%
20%
40%
15%
The Risk and MetalWorks cases are group assignments. Each group must have at least three and no more than four
students. Each group needs to stay together for the term. The problem set and the half-page write-ups are to be done
individually.
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Meaningful participation is an integral part of this class. Regularly engaging in discussion of cases and readings,
asking questions that lead to better understanding of a concept by the class as a whole, clarifying concepts, and
sharing professional experience about course topics constitute superior class participation and contribute to our
collective learning. We will judge class participation based on the quality of answers given to posed questions,
contributions to the discussion of case material, and questions raised by the student.
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Academic Honesty
The rules of the MIT Faculty state: "The attempt of any student to present as his or her own the work of another, or
any work which he or she has not honestly performed, or to pass any examination by improper means, is regarded
by the Faculty as a most serious offense, and renders the offender liable to immediate expulsion. The aiding and
abetting of a student in any dishonesty is likewise held to be a great breach of discipline."
In the context of this class, we expect you to work in groups; but groups should work independently and should not
consult with each other about a particular assignment. Also, several of the cases have been used in prior years. We
regard as inappropriate any substantive consultation with students from prior years about a particular assignment.
We also regard as inappropriate any use of notes or videos from prior years.
If you are uncertain about any aspect or instance of this policy, please ask one of the instructors for clarification.
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