SYLLABUS

MM6041 – Supply Chain Design

MASTER OF BUSINESS ADINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2017

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 Table of Contents
1. Mission of SBM ITB ............................................................................................................................... 3

2. Learning Goals and Objectives of MBA ................................................................................................. 3

3. Course Description ................................................................................................................................ 4

4. Learning Outcomes ............................................................................................................................... 6

5. Reading Material ................................................................................................................................... 7

6. The Course Schedule/ Plan ................................................................................................................... 8

7. Assessment Summary ......................................................................................................................... 12

8. Grading Policy ..................................................................................................................................... 14

9. Course Policy ....................................................................................................................................... 14

10. Lecture(S)/ Facilitator(S) Profile ...................................................................................................... 16

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 1. Mission of SBM ITB
SBM ITB has mission as follows:

“To educate students to be innovative leaders with an entrepreneurial mindset and to

develop and disseminate knowledge of business and management for the betterment of
business, government, and society”

2. Learning Goals and Objectives of MBA

MBA has learning goals and objectives as on Table 1. Third column shows the LG/LO of
study program attached to courses.

Table 1. Learning Goals and Objectives of MBA

COURSE LG/LO
LEARNING GOAL LEARNING OBJECTIVES
(MM6041)
LG 1: Integrative 1. Identify and analyze central problems of a business case 
Thinking 2. Construct multiple perspectives that integrate different factors or 
aspects, other related business functions and relevant contextual
information
3. Create recommendation based on the constructed perspectives and

the company’s strategic objectives
LG 2: Team work 1. Understand how to collaborate with others
2. Apply the concept of managing conflict to resolve problem in small 
group learning environment
3. Demonstrate constructive feedback in small group learning
environment
LG 3: Communication 1. Present information in an organized and concise manner 
2. Demonstrate skill to persuade others in persuasive manners
Skills
3. Demonstrate listening skills

LG 4: Ethical 1. Recognize ethical issues in business context

2. Assess the impact of ethical issue toward various stakeholders
Responsibility
3. Systematically analyze the pro and cons of any decisions related to
ethical issues
LG 5: Leadership 1. Demonstrate the propensity to take initiative 
2. Bring influence toward other people in her/his team
3. Inspire and empower others by evaluating, analyzing, and providing
critics on how leadership behaviors and characteristics affect
employees and businesses outcomes
4. Demonstrate an ability to manage change
LG 6: Global 1. Identify global issues that may affect the industry (Global Intellectual 
Capital)
awareness 2. Develop understanding toward global cultural aspects that affect
business operations

3. Develop business recommendations based on understanding about
the global aspects

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 3. Course Description
Global competition forces many companies to continuously seek new innovative opportunities to
improve their performance. Competitiveness should be reflected in the capability of their supply chains
to strive quality, variety, service, and price at the same time.

Managing a supply chain is a key for managers in creating and capturing values along the supply chain
ranging from procurements, production, transportation, distribution, and product returns. Each step
should be ensured to add value which improve revenues or reduce total costs. However, a local
optimization is no longer appropriate in improving overall performance of a supply chain. Supply chain
management thus is important for managers in order to be able to identify problems, solve those
problems, and implement effective solutions.

Supply chain management is a systematic approach to assist companies in creating and sustaining
competitive advantage. An improvement must bring a company to be closer to its goal to make money
now and in the future. This course is designed to provide MBA students with the knowledge and skills of
improving a supply chain.

Supply chain management integrates supply and demand management within and across companies.
Supply chain management encompasses the planning and management of all activities involved in
sourcing and procurement, conversion, and all logistics management activities. Supply chain
management is an integrating function with primary responsibility for linking major business functions
and business processes within and across companies into a cohesive and high-performing business
model. The concept of supply chain management is based on two core ideas. The first is that practically
every product that reaches an end user represents the cumulative effort of multiple organizations.
These organizations are referred to collectively as the supply chain. It means that supply chain
management includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. The second idea is that while supply chains
have existed for a long time, most organizations have only paid attention to what was happening within
their four internal walls. Few businesses understood, much less managed, the entire chain of activities
that ultimately delivered products to the final customer. The result was disjointed and often ineffective
supply chains.

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Supply chain management is the active management of supply chain activities to maximize customer
value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply
chain firms to develop and run supply chains in the most effective and efficient ways possible. Supply
chain activities cover everything from product development, sourcing, production, and logistics, as well
as the information systems needed to coordinate these activities.

The organizations that make up the supply chain are linked together through physical flows and
information flows. Physical flows involve the transformation, movement, and storage of goods and
materials. They are the most visible piece of the supply chain. But just as important are information
flows. Information flows allow the various supply chain partners to coordinate their long-term plans,
and to control the day-to-day flow of goods and material up and down the supply chain.

The main challenge of supply chain management includes designing and operating a supply chain based
on a system-wide strategy in minimizing total system-wide costs and maintaining system-wide service
levels. Another challenge is dealing with uncertainties both from demand and supply sides. Therefore,
key issues in supply chain management can be identified: distribution network configuration, inventory
control, supply contracts, distribution strategies, supply chain integration and strategic partnering,
outsourcing and procurement strategies, product design, information technology and decision-support
systems, and customer value.

The subject’s objective is to help managers understand concepts, frameworks, tools, and techniques of
supply chain systems that can be used to identify existing problems, think about how to design, manage,
and improve supply chain systems, and construct a plan of action that will result in real operating
improvements that directly affect the overall performance of a supply chain. This course is designed for
students who consider working in sales-marketing, supply chain, logistics management departments of
companies in different industries as well as who consider working in logistics service providers.

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4. Learning Outcomes
Learning outcomes along with its map to LG/LO of this course can be seen in Table 2.

Table 2. Learning Outcomes

No Learning Outcomes Course
LG/LO
1 Students will be able to identify key drivers of supply chain 1.1
performance and their inter-relationships with strategy and other
functions of the company such as marketing, manufacturing, and
accounting.
2 Students will be able to identify and analyze critical issues in supply 1.2
chain management and design problems
3 Student will be able to identify improvement opportunities that 1.3
exist within supply chain in different industries and to quantify the
improvements that various supply chain strategies offer.
4 Student will be able to understand which barriers companies face 1.3
during the implementation of one’s supply chain strategies.
5 Student will be able to perform a good team work and accomplish 2.2
group assignment
6 Student will be able to differentiate the scope of issue (i.e., internal 6.1
versus external problems; local versus global context) during case
discussion and exam
7 Student will be able to integrate solutions and recommendations 6.3
with strategic and tactical (in the global context) during the case
discussions, homework and exam

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 5. Reading Material
[1] Designing and Managing the Supply Chain, 3rd Edition (2008) by Simchi-Levi, Kaminsky,
and Simchi-Levi (SKS).
[2] Supply Chain Management: Strategy, Planning and Operations, 5th Edition (2013) by Sunil
Chopra and Peter Meindl (CM).

Other sources of reading materials are available from web-sites such as:

 Supply Chain Management: A recommended performance measurement scorecard:

http://www.acq.osd.mil/log/sci/exec_info/scorecard.pdf
 MIT Open Course Ware: (i) Management of Supply-networks for Products and Services at
http://ocw.mit.edu/courses/sloan-school-of-management/15-778-management-of-supply-
networks-for-products-and-services-summer-2004/lecture-notes/ and (ii) Supply Chain Planning
at http://ocw.mit.edu/courses/sloan-school-of-management/15-762j-supply-chain-planning-
sma-6305-spring-2005/lecture-notes/
 Council of Supply Chain Management Professionals: http://cscmp.org/default.asp
 Supply Chain Management Resources:
http://www.lib.washington.edu/business/guides/sup.html
 Caeers in Supply Chain Management: http://www.careersinsupplychain.org/
 Global Supply Chain Management Forum: http://www.gsb.stanford.edu/scforum/
 Develop and evaluate supply chain management systems:
http://www.marcbowles.com/courses/adv_dip/module4/overview/overview.htm
 Logistics Management: http://edmlab.ie.nthu.edu.tw/90_2_files/LM_Reference/index.htm
 Ontario Ministry of Finance: http://www.fin.gov.on.ca/en/ontariobuys/documents/
 E3 resources: http://www.e3associates.eu/articles

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6. The Course Schedule/ Plan
Table 3 present the class activities that are required to achieve the learning objectives of this course.

Table 3. Weekly Class Activities

Week Activities Other Activities/ Notes
1 Topic : Class Management + Introduction to SC Design  Lecturer: PPK
Activity : Lecturing, Class discussion
Jan 17
Learning Outcome : 1
Reading/ References : SKS Ch. 1; Cattani and Mabert (2009)
Topic : Introduction to SC Design  Case: Meditech Surgical
Activity : Lecturing, Class discussion
Learning Outcome : 3
2 Topic : Inventory Management and Risk Pooling  Lecturer: TMS
Activity : Lecturing, Class discussion
Jan 24
Learning Outcome : 2
Reading/ References : SKS Ch. 2; CM Ch. 11-12; Chandra and Kumar (2001)
Topic : Inventory Management and Risk Pooling  Case: Hewlett-Packard: Supplying
Activity : Class discussion the desk printer in Europe
Learning Outcome : 3,7
3 Topic : Network Planning  Lecturer: PPK
Activity : Lecturing, Class discussion
Jan 31
Learning Outcome : 2
Reading/ References : SKS Ch. 3; CM Ch. 4-5
Topic : Network Planning  Case: Healthcare Strategic Supply
Activity : Class discussion Chain Design in Kenya
Learning Outcome : 3,6

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Week Activities Other Activities/ Notes
4 Topic : Supply Contracts  Lecturer: PPK
Activity : Lecturing, Class discussion
Feb 7
Learning Outcome : 2
Reading/ References : SKS Ch. 4; CM Ch. 15
Topic : Supply Contracts  Case: American Tool Works
Activity : Class discussion
Learning Outcome : 3,6
5 Topic : The Value of Information  Lecturer: PPK
Activity : Lecturing, Class discussion
Feb 14
Learning Outcome : 2
Reading/ References : SKS Ch. 5; CM Ch. 17
Topic : The Value of Information  Case: Barilla SpA (A)
Activity : Class discussion
Learning Outcome : 3,6
6 Topic : Supply Chain Integration  Lecturer: TMS
Activity : Lecturing, Class discussion
Feb 21
Learning Outcome : 2
Reading/ References : SKS Ch. 6
Topic : Supply Chain Integration  Case: The Great Inventory
Activity : Class discussion Correction
Learning Outcome : 3,6

7 MID TERM EXAM  Course LG/LO assessment (1.1;

1.2; 1.3)
Feb 28

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Week Activities Other Activities/ Notes
8 Topic : Distribution Strategies  Lecturer: MHB
Activity : Lecturing, Class discussion
Mar 7
Learning Outcome : 2
Reading/ References : SKS Ch. 7; CM Ch. 4
Topic : Distribution Strategies  Case: Amazon.Com
Activity : Lecturing, Class discussion
Learning Outcome : 3,7
9 Topic : Strategic Alliances  Lecturer: MHB
Activity : Lecturing, Class discussion
Mar 14
Learning Outcome : 2
Reading/ References : SKS Ch. 8; Callioni & Billington (2001)
Topic : Strategic Alliances  Case: Audio Duplication Services,
Activity : Lecturing, Class discussion Inc. (ADS)
Learning Outcome : 4,6

10 Topic : Procurement & Outsourcing Strategies  Lecturer: TMS

Activity : Lecturing, Class discussion
Mar 21
Learning Outcome : 2
Reading/ References : SKS Ch. 9
Topic : Procurement & Outsourcing Strategies  Case: Zara
Activity : Lecturing, Class discussion  Course LG/LO assessment (6.1;
Learning Outcome : 3,7 6.3)
11 Topic : Global Logistics and Risk Management  Lecturer: MHB
Activity : Lecturing, Class discussion
Mar 28
Learning Outcome : 2
Reading/ References : SKS Ch. 10

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Week Activities Other Activities/ Notes
Topic : Global Logistics and Risk Management  Case: Wal-Mart
Activity : Lecturing, Class discussion
Learning Outcome : 4,7
12 Topic : Coordinated Product and Supply Chain Design  Lecturer: MHB
Activity : Lecturing, Class discussion
Apr 4
Learning Outcome : 2
Reading/ References : SKS Ch. 11; CM Ch. 13
Topic : Coordinated Product and Supply Chain Design  Case: HP Company: Network
Activity : Lecturing, Class discussion printer design for universality
Learning Outcome : 3,5  Course LG/LO assessment (2.2)
13 Topic : Smart Pricing  Lecturer: MHB
Activity : Lecturing, Class discussion
Apr 11
Learning Outcome : 2
Reading/ References : SKS Ch. 13; CM Ch. 16
Topic : Smart Pricing  Case: Starbucks Economics
Activity : Class discussion
Learning Outcome : 3,6
14 FINAL TERM EXAM

Apr 18

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7. Assessment Summary
Table 4. Assessment summary and weight
WEIGHTING/ MARKED LEARNING
ASSESSMENT TASK DUE DATE
OUT OF OUTCOMES
Team Project Report and Presentation 20%/ 100 <2,3,4>
Quiz/Assignment random 15%/ 100 <2>
In Class participation Week 1-6,8-14 15%/ 100 <1-6>
Mid Exam Week 7 25%/ 100 <1,2,3>
Final Exam Week 14 25%/ 100 <2,3,7>

Team Project (Case Analysis)

A team of three to six people is formed, and each team is required to submit a comprehensive
case analysis (less than 5 pages and single spaced). Teams are given a topic for a particular case
analysis session. Participants should apply the specific knowledge and skills learned from this
class to the case. You need to follow the following instructions:

 Be sure to research current sources

 Update the information found in the case as you prepare your analysis.
 A succinct but meaningful, results-filled executive summary is expected.
 You should take pains to clearly establish the purpose of your analysis in your executive
summary and in the analysis itself. In general, the purpose of any business case analysis is
to draw appropriate lessons learned.
 In successfully accomplishing this business case analysis, it will be important for you to:
 Formulate and address useful questions designed to extract the lessons of the case.
 You may start with the questions found with the case, but you should not stop with
them. Questions may be cast in terms of lessons useful to your own organization, to
society or in some other context that you should define.
 Be succinct, as your readership will likely be busy with other things and can devote only
a limited time to reading your ideas, no matter how good they are.

A case analysis is used to achieve a business goal. It is a hypothetical, yet realistic, business
situation that is developed to give the student a sense of the types of business situations a

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manager or business owner may encounter on a daily basis. A case analysis prompt usually
includes information on the business’s employees, goals and values. The situation requires a
decision to be made and a solution to be proposed. Through careful consideration and
examination of the information, students personally determine what the best remedy for the
problem that the business is facing will be. There is no single solution to the problem, but there
is an array of plausible solutions that depend strictly upon the characteristics of the person
(people) involved in the decision-making process. Cases provide the student with more than rote
memorization of facts. They give the student background, so that when placed in similar
circumstances, he/she will know how to effectively evaluate the situation and arrive at a
potential solution. Case analysis helps students to acquire two skills: (i) applying theories to real
situations and (ii) generating solutions to real problems. More information about case analysis
can be found in the following web sites:

 Case Analysis, University of Houston - Victoria:

http://www.uhv.edu/ac/wac/caseanalysis.aspx
 Apollo Root Cause Analysis: http://www.apollorca.com/
 Guide to Case Analysis: http://www.mbadepot.com/content/8395/
 Case Studies:
http://college.cengage.com/business/resources/casestudies/students/index.html

Participation

Class discussion requires active participation individually. Active participation in presentation

and discussion of the cases, articles, and problems is an important component of the course. In
most cases, syndicate discussion should be done before the class. Starting the third meeting, a
portion of the second period will be allocated to group presentation and discussion. Typically,
each meeting one group has the main responsibility to serve as the lead discussant. In addition
to the lead discussant, other students need to work on the scheduled materials and be ready for
a quality class discussion. The lead discussant need to prepare a summary handout and pass to
other groups before presentation. A discussion schedule is attached to this syllabus.

To capture team work grade, each team is required to submit written case analysis and
recommendation for same cases. The grading point of the team includes quality of the

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 document, quality of the presentation, and team member evaluation. Note that this could
significantly affect your final grade based on past experience. Projects will be evaluated based
on the following factors: (1) organization, neatness, quality of exhibits or charts (15 Points), (2)
originality, quality of literature sources, accuracy of discussion and writing (20 points), (3)
comprehensiveness of the project's content and depth of analysis (40 points), and (4)
presentation (25 points). Presentation will be judged on the following basis: (1) clarity of oral
presentation, (2) quality of visual aids used, (3) quality of topic definition and background
information, (4) depth of analysis, and (5) quality of time allocation and coordination. Successful
term project requires trust and cooperation of all members. A member may lose portion of the
grade if other group members complain about his/her lack of cooperation.

Exam

There are two exams for this course: midterm examination and final test. Each exam is open
book, open note, partially comprehensive in coverage and requires approximately 3 hours.

8. Grading Policy
Grading for this course is based on whether or not a student’s performance meets the
module standards for completion and proficiency in the subject materials.
 Grading weight follows Table 4
 Student will fail (grade E) when the attendance rate is <80% or find cheating in class

9. Course Policy
Time Commitment

This is a 3-credit course conducted over 16 weeks. In order to meet accreditation standards, on
average, students should expect to spend between 12 to 15 hours per week on course activities
and assignments. Spending less time would be insufficient for success in this course.

Academic Honesty

Bandung Institute of Technology has a “0” tolerance policy for academic dishonesty and if the
student is in violation an “E” the course will be apply. Please refer to the ITB academic honesty
policy.

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Dropping Course

Students may drop a course through the registration process. After the first week students need
to notify the instructor and then withdraw from the course as faculty will not drop or
withdrawal students. Please refer to the academic calendar for the exact dates and also review
the withdrawal policy.

Counseling Services

Counseling assistance will be available by appointment. Email is the preferred method of

communication for this class.

Attendance

Attendance is mandatory for all meetings. With an exceptional case, you could ask your
instructor’s permission for excuse in advance. However, you will not pass the class with more
than eight absences.

Course Progress

Considering the diverse course format and intensity, it is strongly recommended that you are to
complete all readings required prior to the class.

Late Assignment and Make-up Exam Policy

It is expected that students turn in their projects on time. Late submission may result in partial
deduction of the grade. There is no make-up exam allowed.

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10. Lecture(S)/ Facilitator(S) Profile

Lecture Profile
1 Name : Prof. Togar M. Simatupang [TMS]
E-mail : [email protected]
Office :
Short Profile : Togar is a professor of Operations and Supply Chain
Management at the School of Business and Management
in Bandung Institute of Technology. He holds a Ph.D.
degree from Massey University in New Zealand. He
teaches technology and operations management, supply
chain management, and supply chain design. His research
focuses on the development of knowledge based systems
for decision support in collaborative supply chains and the
application of value chain management in manufacturing
and services. He has published a number of research
articles in various international journals. He is the recipient
of Highly Commended Award in 2006 by Literati Club for a
research paper published in the International Journal of
Logistics Management.
Time and Method of Consultation : By appointment through e-mail or Google calendar

2 Name : Dr.Ir. P. Philips Kembaren, MBA [PPK]

E-mail : [email protected]
Office :
Short Profile Philips received his doctorate degree in Management
Science from Bandung Institute of Technology with
research focusing on innovation and design management.
He completed his MBA also from Bandung Institute of
Technology. He developed his professional career mostly
in state-owned telecommunication manufacturing
company for 30 years starting as a fresh engineer up to the
Technology Director as his latest position. He is also a
:
Senior Examiner in Indonesian Quality Award Foundation
(IQAF) which conducts an annual examination of
excellence performance management for state-owned
enterprises including several private enterprises based on
Baldrige Excellence Framework Criteria for the last 8 years.
His research interests are in leadership, operations
management, performance management, technology
management, innovation, and design management.
Time and Method of Consultation : By appointment through e-mail or Google calendar

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3 Name : Dr. Mursyid Hasan Basri [MHB]
E-mail : [email protected]
Office : 2nd floor Pertamina Building (MBA Building)
Short Profile Mursyid Hasan Basri earned his bachelor and master in
Industrial Engineering from Bandung Institute of
Technology. He holds a Doctor of Engineering degree from
Hiroshima University in Japan. He currently teaches several
:
courses, including Operations Management, Supply Chain
Management, and Quality Management. His research
interests are the application of business process and
quality management in healthcare operations.
Time and Method of Consultation : By appointment through e-mail or Google calendar

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