Nanyang MBA
B6601 Supply Chain and Logistics Management
NANYANG TECHNOLOGICAL UNIVERSITY
NANYANG BUSINESS SCHOOL
THE NANYANG MBA
B6601
Supply Chain and Logistics Management
Prof. Chen Shaoxiang
Trimester 2, 2013 – 2014
Prof. Chen Shaoxiang
Nanyang Business School
Nanyang MBA
B6601 Supply Chain and Logistics Management
COURSE SCOPE and OBJECTIVE
As the economy becomes more globalized, goods have to move longer distance with
many more changeover transactions, while customers with choices worldwide are
requesting for faster and more flexible responses. Companies are finding themselves
incapable or not cost effective to conduct alone their business activities and customer
services worldwide. As a result, they must work more closely with their business
partners on a cooperative basis. Supply chain and logistics management deals with the
management of materials, information and financial flows in a network consisting of
suppliers, manufacturers, distributors, and customers across all activities such as
designing, purchasing, manufacturing, distributing, and customer services. The
coordination and integration of these flows within and across companies are critical to
achieve supply chain efficiency and effectiveness. Thanks to the advanced information
technology especially the Internet, it not only makes such coordination and integration
possible, but also allows sophisticated models to be used for reducing the costs towards
supply chain and network optimization. Management of the supply chain requires crossfunctional understanding as well as sound technical and managerial skills.
This course covers both strategic and operational issues in supply chain and logistics
management. It will introduce key concepts, principles, best practices, innovative ideas,
and critical thinking of integrative supply chain and logistics management. Topics
include supply chain and logistics strategies and design, push and pull, 3PL, 4PL, ebusiness, inventory systems and models, risk pooling, centralizing/decentralizing,
postponement, cross docking, partnership, CPFR, QR, ECR, VMI, etc. It does not aim at
completeness, but focuses on thinking principles and insightful topical discussions.
The objective of this course is to
a) gain an insight into the fundamental changes and trend in the world economy
brought by globalization and IT technology, and the revolutionary role and value
of modern supply chain and logistics in the new economy;
b) develop a deep understanding of the concepts, perspectives, principles,
methodologies, and the best practices of supply chain and logistics management
and how to apply them to innovate business models for gaining competitive
advantage;
c) provide analytical skills and techniques for analyzing supply chain and logistics
problems and designing effective solution
Prof. Chen Shaoxiang
Nanyang Business School
Nanyang MBA
B6601 Supply Chain and Logistics Management
PROPOSED COURSE SCHEDULE (subject to changes by further notice)
Day
1.
Nov.
12
Topics
Introduction
Remarks
Fundamental
Issues
in
Supply
Chain
Management
Case Study C1: Meditech Surgical
• Fundamental operational challenges:
- Issues in supplying, manufacturing,
distribution, marketing and customer service
- lead time effect
• Cost of uncertainty, Cost of inventory
• Inventory Turnover Rate and ROA
Supply Chain Process Simulation – Beer Game
• Structure of a supply chain
Nov. 19
• Order information flow, goods flow, lead time
• Simulation
• Results discussion and debriefing
2.
Changes and Trends and Opportunities
• “5-lizations”
• Paradigm Shifts: Point to Network Economy
Nov. 26
• Integration
• Information, Network, and Knowledge
• The role of modern logistics
• Cross-docking, Singapore Hub
• 4 flows in a supply chain
• Push and pull, postponement
Discover the supply
chain law of
dynamics
Dec. 3
e-Business and Supply Chain Management
• Problems with market economy
• E-business, and differences to e-Commerce
• Role and Values of e-Business
• Risk Pooling and Network Economy
• 5 principles for cost reduction and value
creation
• Challenges and Opportunities to Logistics
Prof. Chen Shaoxiang
Nanyang Business School
R1, B2,
BCC: Case 1
Case 8
SL: Ch 1
Bullwhip Effect
3.
4.
Readings
Traditional Problems C1
and Approaches
SL: Ch. 1
What-Why-Impact of
“5-lizations”:
Globalization,
Information-lization,
Network-lization,
Specialization,
Knowledge-lization
Best practices and
basic principles
Develop 5 principles
of operations
management for
cost reduction and
value creation
BCC Ch.1, 3,
6, 14
R3, R4
C5
SL: Ch 1, 2
SL: Ch4,
Case 14
BCC: Ch. 2
Nanyang MBA
•
5
Dec. 10
B6601 Supply Chain and Logistics Management
Industry
3 and 4th Party Logistics (3PL, 4PL)
rd
C4
Supply Chain Integration and Optimization
BCC: Ch. 3
Ch. 4, 14
• Information sharing, CPFR
• VMI
Case Study C4: Barilla SpA
Risk Sharing and Supply Chain Strategy
• News Boy Problem and Formula
Dec. 17
• Supplier – Dealer Risk Sharing Model and
Value Proposition
• Accurate Customer Response
Case Study C7: Sport Obermeyer
6.
7
Jan. 7
8
Jan. 14
Supply Chain Strategy
• Efficient and Responsive Supply Chain
• Strategy drivers
• Supply Chain Strategies
Supply Chain Business Model and Analysis
Debate: Is the Dell’s Business Model Applicable
to Ford?
Groups 1, 2, 3: Argue in Favor
Groups 4. 5, 6: Argue in Against
C7
BCC: Ch. 4,
14
Develop a
framework for
designing supply
chain strategies
based on product
and market
characteristics
R6, R7
C6, C7
SL: Ch4,
Case 14
C2, C3
Cases C2 and C3: Ford, Dell
9
Jan. 21
Supply Chain Inventory Models and Systems
• Supply Chain Inventory Models
• Pipeline Inventory Model
• Lead time and reliability effects
• ROP System
• Safety stock, service level
• Risk Pooling in inventory centralization
• Modularization, Postponement and other
Applications
• What are the effects of inventory
centralization?
Prof. Chen Shaoxiang
Nanyang Business School
R4, C9
SL: Ch 5,
6
BCC:Ch.12
Ch. 13, 15
Nanyang MBA
10
Jan. 28
11
B6601 Supply Chain and Logistics Management
Business Model and Supply Chain Network
Optimization
• Total Cost Model
• Trade-off Relationships
• Basic Distribution Network Models
• Case C8: Zara
• Case C10: CADCO Systems Inc
• Case C9: Lucent Technology
C7, C8,
C9, C10
BCC: Ch.15
Cases 3-12
Group Project Presentation
Feb. 4
12
Group Project Presentation
Feb. 11
Summary and Review
Exam
READINGS and CASES
(I) Text Books
The course package distributed to you contains the readings and cases for the course.
Additional readings, cases and lecture notes will either be distributed in the class or
made available online through edveNTUre.
The first book in the following list is selected as the “shadow text book” in the sense
that we will not follow the chapters of the book, yet the book provides an excellent
reference for your comprehension of class lectures.
i)
Supply Chain Logistics Management, 4th edition
Donald J. Bowersox, David J. Closs, M. Bixby Cooper (BCC)
Mcgraw-Hill International 2012
ii)
Strategic Logistics Management, 4th Edition
James R Stock and Douglas Lambert (SL)
Mcgraw-Hill International 2001
Prof. Chen Shaoxiang
Nanyang Business School
Nanyang MBA
B6601 Supply Chain and Logistics Management
(II) Journal Articles and Readings
R1
R2
R3
R4
R5
R6
R7
“The Bullwhip Effect in Supply Chains” Lee, Padmanabhan, and Whang, Sloan
Management Review, 38(3), 93-102
“Best Value Supply Chain: A Key Competitive Weapon for the 21st Century”,
Business Horizon (2008) 51, 235-243, Kelley School of Business
“Process Chain: A New Paradigm of Collaborative Commerce and Synchronized
Supply Chain” Business Horizon (2006) 49, 359-367, Kelley School of Business
“The Role and Relevance of Refocused Inventory: Supply Chain Management
Solutions” Business Horizon (2006) 49, 275-286, Kelley School of Business
“Mass Customization at Hewlett-Packard: The Power of Postponement,” Feitzinger
and Lee, Harvard Business Review, Jan. – Feb. 1997, pp. 116 – 121
“What is the right supply chain for your product?” Fisher, Harvard Business
Review, March – April 1997, pp. 105 – 116
“Aligning Supply Chain Strategies with Product Uncertainties” CMR, Vol 44, No. 3
(III) Cases
C1 Meditech Surgical, MIT Leaders for Manufacturing Program
C2 Ford Motor Company: Supply Chain Strategy, HBS, 9-699-198, 1999
C3 The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell
by J. Magretta. Harvard Business Review, March-April, 1998
C4 Barilla SpA (A), (B) Harvard Business School Case (1994) by J. H. Hammond
C5 Li & Fung (A): Internet Issues. HBS Case (Dec. 2000) by F. W. Mcfarlan and Fred
Young
C6 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration”
Luis C. Blancas, GS-53, Stanford University, 2006.
C7 Sport Obermeyer HBS 9-695-022, Feb 1996
C8 ZARA: Fast Fashion HBS Case, 9-703-497, April 2003
C9 Lucent Technologies: Global Supply Chain Management, by Hau Lee, David W. Hoyt
GS-01 Stanford University
C10 CADCO Systems Inc. Cranfield University
CLASS TIMINGS and VENUE:
Mondays: 6:15 – 9:30pm at NTU @ one-north Executive Centre, Slim Barracks Rise,
(off North Buona Vista Road), Singapore 138664
Prof. Chen Shaoxiang
Nanyang Business School
Nanyang MBA
B6601 Supply Chain and Logistics Management
COURSE ASSESSMENT
Class Participation:
Individual Case Study:
Group Case Study:
Group Project:
Final Examination:
Total
10%
10%
15%
20%
45%
100%
INSTRUCTOR:
Dr. Chen Shaoxiang
Professor, Operations Management, S3-B2A-30, Tel: 67906143, aschen@ntu.edu.sg
INDIVIDUAL CASES
Each individual is required to read all the journal articles and cases, and except group
cases assigned (see GROUP CASES), hand in a report of no more than 4 pages including
an executive summary and a brief analysis for each of the following cases: C4, C7, C8,
C9. The reports are due before dates of the respective classes when the corresponding
cases are to be discussed (see the proposed course schedule). Individuals will be
randomly selected to present their works and lead the discussion in class. Thus, you may
prepare a few PPT slides before respective classes. Note that you should read the articles
during the beginning weeks of the course.
GROUP CASES
On the first day of class, participants should form teams of no more than Four members.
We expect to have 6 groups. It is the same group for assigned GROUP CASES (Case 2
and Case 3) and GROUP PROJECT.
For Cases C2 & C3. Class Debate on the Theme:
“Is the Dell’s Business Model Applicable to Ford?”
Groups 1, 2, 3: Argue in Support the theme: “to Ford, Dell Model Applies”
Groups 4, 5, 6: Argue in Against the theme: “to Ford, Dell Model Applies”
Each group needs to prepare a PPT presentation with main argument points to be
presented in class within 10 minutes of duration (tentatively scheduled in Session 8).
Hand in a copy of the PPT (soft or hard) before Session 8.
Prof. Chen Shaoxiang
Nanyang Business School
Nanyang MBA
B6601 Supply Chain and Logistics Management
GROUP PROJECT
Weight 20%
1. Topic
It can be any topic/issue that closely relates to logistics/supply chain management. It
is strongly preferred to have a real case/project from one of the group member’s
company or the group member(s) has (ve) worked with. Confidential data can be
manipulated while keeping the context intact as much as possible.
2. Format
Each group should submit a project report of no more than 30 pages excluding
appendixes. The project report/presentation is suggested to follow the following
guidelines:
A.
B.
C.
D.
E.
F.
Project/Problem description (clear and sharp)
Requirements/constraints
Solution Approaches, Alternatives and Evaluation Process
Issues in the solution implementation
Results
Discuss how some of the concepts, principles, and models learned were (or
were not) applied in the project and what improvement can be made.
3. Group Presentation and Discussion
The group presentation is planned to be conducted in the last two sessions. Each
group is given 45 min for presentation, and 10 minutes for after-discussion.
4. Attitude and Grades
It relies heavily on the commitment and contribution of each and every group
member!
CLASS PREPARATION and PARTICIPATION
Class participation is important to obtain full benefit from the course as well as
assessment. You should carefully read the assigned readings and cases and analyze cases
before coming to class. This will allow us to make better use of class time by
concentrating on key issues and concepts. Points for class participation are based on the
class attendance, the quality of comments, questions and issues raised by each participant
during the class.
Prof. Chen Shaoxiang
Nanyang Business School
Nanyang MBA
B6601 Supply Chain and Logistics Management
Useful Links to SC/L Management English Websites
Professional Societies / Supply Chain Forum
Supply Chain Council http://www.supply-chain.org
Council of Logistics Management http://www.clm1.org
Stanford Global Supply Chain Management Forum http://www.stanford.edu/group/scforum/
Chartered Institute of Transport - International http://www.citrans.org.uk
Chartered Institute of Logistics and Transport – Singapore http://www.cilt.org.sg
Canadian Association of Supply Chain & Logistics Management http://www.infochain.org
American Production and Inventory Control Society http://www.apics.org
Collaborative Planning, Forecasting and Replenishment http://www.CPFR.org
e-business process standards
http://www.rosettanet.org/rosettanet/Rooms/DisplayPages/LayoutInitial
Suply Chain Forum http://www.supplychain-forum.com
SCM and LM Service Providers
Manuguistics http://www.manugistics.com/
i2 Technologies http://www.i2.com/
http://www.synquest.com/default.cfm
http://www.sapmarkets.com/
Many others can be found through links provided by
http://dir.yahoo.com/Business_and_Economy/Business_to_Business/Computers/Software/Busine
ss_Applications/Business_Management/Supply_Chain_Management/
http://www.logistics.about.com/industry/logistics/
Prof. Chen Shaoxiang
Nanyang Business School