Indian Institute of Management Bangalore
Supply Chain Management
(There is likely to be some minor changes in the outline)
Instructor: Jishnu Hazra
Course Objectives:
Supply chain management (SCM) is the entire process of materials and products moving into,
through and out of the firm. Supply chain activities-- communication, inventory management,
warehousing, transportation and facility location, have been performed since the start of
commercial activity. SCM costs can be as high as 40% of total value added in some industries like
petroleum and chemicals. Firms have started focusing on SCM as a source of competitive
advantage. The objective of this course is to provide students with tools by which they can analyze
supply chain in different industries.
Course Topics:
1.
Introduction to Logistics and Supply Chain Management.
 Issues in Supply Chain
 Mapping Product characteristics with Supply Chain Design
2.
Inventory Management.
 Recap of Inventory Control (covered in the core course): Types of Service Level;
Location of inventory: Centralization versus De-centralization
 Inventory Allocation Issues
 Inventory Management and Responsive Supply Chain
3.
Supplier Management.
 Buyer-supplier relationship
 Information sharing between buyers and suppliers
 Contracts between buyers and suppliers; Pricing in supply chains; Bidding and
Auctions; Electronic Procurement
4.
Understanding Responsiveness in Supply Chain
 Impact of Uncertainty on Lead Time
 Product variety and Manufacturing Flexibility
 Capacity Sizing and Timing
5.
Supply Chain Analysis of Different Industries.
 Supply Chain Issues in different Industries: Analysing Supply Chains of Computers
and Electronics, Automobile, Retail and Fashion Industries;
 Internet Retailing
6.
Service Supply Chain.
 Transportation Network Design
 Logistics of BPO Operations
 Distribution of Services
 Yield Management
Session-wise Details on Page 3, 4.
Page 1 of 4
Methodology:
The course will consist of mixture of lectures and cases. The cases will be discussed in the class.
Each group will submit 2 cases. The due date of each case report will be strictly enforced.
Attendance Policy: Much of the learning happens both during your preparation and discussion in
class involving mutual exchange of ideas. Hence, attendance and participation in class is
expected. There is an 80% attendance requirement for the course. If this is not met then there will
be a -1 drop in your course GPA.
Performance Evaluation: The weightage for the three components are given below.
Cases
Project
Supply Chain Game
Mid-term:
End-Term
20% (Group Evaluation)
20% (Group Evaluation)
20% (Group/Individual Evaluation)
20% (Open book test; Individual Evaluation)
20% (Open Book test; Individual Evaluation)
Each group will submit 2 case assignments. Allocation of cases to groups will be done in the
second week.
Teaching Material: A soft copy of the lecture notes (most of them) and spreadsheets for casestudies will be available on Moodle.
Text Book: Supply Chain Management by Chopra and Meindl
My office is located in D-I. My office phone number is 3195 and e-mail address is
hazra@iimb.ernet.in. My secretary is Mr. Khan (Phone No. 3028) who is also located in DI.
Project
The Project is to be done in groups. You could analyze an existing logistics process of a
specific firm and suggest any improvements that need to be made. Examples include a
study of the distribution system of a FMCG company, fashion (apparel) retailing in India,
managing e-wastes (such as laptops, printers, etc.) in India, supplier contracts in the
automobile industry, e-business in India, and service supply chain (eg IT Services,
telemedicine in rural India), and pricing of software services.
Page 2 of 4
Proposed Outline for 2013
Class
1
2
3
4
5
6
7
Date
Topics
Introduction to Supply Chain Management
Readings: Chapters 1, 2 of Text
Information Sharing and Supply Chain Coordination
Readings: Chapter 17 of Text
Recap of Inventory Management: Understanding the
key inventory-related levers to improve the
performance of a supply chain.
We will use the case-study as an illustration.
Readings: Chapters 10, 11, 12 of Text; also refer to
your I Year Inventory Notes
Sourcing Contracts between Buyers and Suppliers:
Revenue sharing, Quantity Flexibility, Buyback
Policy, Options Model;
How does Supply Chain Contracts Reduce Risks
Readings: Chapter 12 and Section 14.6
Optional: Procurement Risk Management (PRM) at
HP
Sourcing Contracts between Buyers and Suppliers:
Analyzing Contract Options
Sourcing & Supply Management: Matching Supply
and Demand for Short life-cycle Products;
Forecasting in fashion retailing
Readings: Chapters 10, 11, 12 of Text
Outsourcing: To Make or Buy;
Motivations for companies to outsource;
Focused Operations or Operational Diversifications;
8
Guest speaker: Details to be given later
9
Lead Time and Capacity Management in Supply
Chains: Capacity Sizing & Investment; Capacity
Timing and Expansion
Readings: Chapter 6 of Text
Facility Location: Location Decisions and Supply
Chain Strategies;
Reading: Chapter 5 of Text
Capacity Type and Flexibility: Deciding on Quantum
of Manufacturing Flexibility; Managing Product
variety
Reading: Limits of Mass Customization
Midterm exam
Transportation Network Design: Hub and Spoke
versus Direct Route; Examples from the Airline
Industry
Reading: Chapter 13 of Text
Optional: A New Business Model in the Airline
Industry
10
11
12
Page 3 of 4
Case-studies for
class discussion
Barilla
Reebok
Konys
*Wills Lifestyle
*Bergerac Systems
*Intel: Strategic
Decisions in
Locations
13
14
15
16
Procurement: Pricing Models in Procurement; Auction
versus Fixed price
Readings: Chapter 14 of Text (till section 14.5)
The Service Supply Chain: The Logistics of BPO
Operations: Models and Performance for Call-Centres
Readings: Queueing Models of Call Centres
Pricing and Revenue Management in Services
Readings: Chapter 15 of Text
Optional: Decision-Support System that Helps
Retailers Decide Order Quantities and Markdowns for
Fashion Goods
Internet Retailing: Designing a Supply Chain to
Deliver Products and Customer service; Service
Delivery and Distribution;
We will Contrast the Operations of Amazon and
Zappos (now part of Amazon)
Reading: Chapter 4 of Text
Procurement
Auction
*Comfort Class
Transport
*Zappos and
*Amazon
Zappos's CEO on Going to Extremes for
Customers
17
18
19
20
Managing Risks in Supply Chains: Types of Risks;
Supply Chain Disruption; Volatile Raw material
prices;
The Gray Supply Chain: Quick and Agile
SCM Game Discussion
Submit Project write-up (All Groups)
Project Presentation
Project Presentation
End-Term exam
*Case submissions required on that particular date.
Page 4 of 4
Shanzhai Mobile
Phones