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Supply Chain Management

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.

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Nyeko Francis
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22 views3 pages

Supply Chain Management

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.

Uploaded by

Nyeko Francis
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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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. 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. This will 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 Report 19944, 1995

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