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Indian Institute of Management Bangalore
Supply Chain Management
Instructor: Jishnu Hazra
This is the outline used in 2008. There could be minor changes in 2009. See page 3 and 4
for course schedule in 2008.
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 Outline:
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
3. Supplier Management.
Buyer-supplier relationship
Information sharing between buyers and suppliers
Contracts between buyers and suppliers; Pricing in supply chains
Electronic Procurement
4. Understanding Responsiveness in Supply Chain
Impact of Uncertainty on Lead Time
Product variety and mass customization
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;
Supply Chain Issues of Introducing New Products
Design of Distribution Networks in a Multi-plant, multi-depot Environment
Flexibility Issues in Manufacturing Networks
6. Service Logistics.
Logistics of BPO Operations
Transportation Network Design
Yield Management
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 3 cases. The due date of each case report will be strictly enforced. If the
whole group expects to be absent from the class on that day then please submit it any time before
the class, either to me or to my secretary.
Performance Evaluation:
Students will be evaluated based on case write-ups, a project that would involve supply chain
performance & analysis (SCPA) of selected companies and two examinations. Both examinations
will be open books and notes.
The weightage for the four components are given below.
Cases: 20% (Group Evaluation)
Project 20% (Group Evaluation)
Mid-term: 30%
End-term: 30%
Each group (of 5 students) will submit 3 case assignments. Allocation of cases to groups will be
done in the first/second week.
Teaching Material: A soft copy of the lecture notes (most of them) and spreadsheets for case-
studies will be available on the Institute Network. The drive address is:
H:\usr\faculty\hazra\SCM
References:
Text Book: Designing and Managing the Supply Chain by Simchi-Levi
You will also be given journal articles and other handouts.
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 D-
I.
Project
In this segment you will select 2 or 3 companies in the same industry and analyze the
supply chain performance over a period of 3 years. You should consult financial statements
(of listed companies) and information gleaned from business publications. For example,
you can compare Intel & AMD, TATA Steel & SAIL, Toyota, GM & Maruti, HP, Acer &
Dell, etc. Ask questions like is there an improvement/deterioration in any specific supply
chain metric and possible reasons.
Important Project deadlines:
1. July 18, 2008: Submit SCPA companies
2. July 31, 2008: Submit a two page Progress Report
3. August 21, 2008: Final project report due
4. August 21-22, 2008: Project presentation.
Page 2 of 4
Class schedule for 2008:
Class Date Topics Case-studies for
class discussion
1 19 June Introduction to Supply Chain Management
Readings: What is the Right Supply Chain for your
Product?
2 20 June Responsive Supply Chain: Evolution of the PC
Supply Chain; Comparing the PC and Automobile
Supply Chain;
Readings: Execution without Excuses
3 26 June Recap of Inventory Management: Understanding the
key inventory-related levers to improve the
performance of a supply chain;
Readings: Chapter 2 of Text
Inventory Decisions in Dell Supply Chain
4 27 June Assessing Distribution Systems; Supply Chain *Merloni
Coordination: Information Sharing in Supply Chain;
Value of Information; Vendor Managed Inventory
Readings: Chapter 5, 7 of Text
Mumbai Dabbawallah (Text Pg 473-478)
The Power of Virtual Integration at Dell
5 3 July Global Sourcing: Matching Supply and Demand for *Sports Obermeyer
Short life-cycle Products; Page 63 of Text
Readings:
Making Supply meet Demand in an Uncertain World
6 4 July Procurement: Pricing Models in Procurement;
Auction versus Fixed price
Readings: Chapter 9 of Text
Combinatorial and Quantity Discount Procurement
Auctions Benefit and its Suppliers
7 10 July Issues in Electronic Procurement; *Seagate
Flexibility and Capacity Issues in Sourcing Networks; Technologies
Readings: Procurement Auction Example (to be
given later)
8 11 July Guest Speaker: Venu Nair, Marks & Spencer
9 17 July Deciding on Quantum of Manufacturing Flexibility; *National Bicycle
Managing Product Variety & Mass Customization;
Readings: Limits of Mass Customization
Manufacturing Strategy: An adaptive Perspective
Page 3 of 4
10 18 July Submit SCPA companies that you will study
Managing Transportation in Supply Chains:
Transportation Network Design: Hub and Spoke
versus Direct Route; Examples from the Airline
Industry
Reading: A New Business Model in the Airline
Industry
11 24 July Mid-Term
12 25 July Managing Lead Times in Supply Chain
Readings: Chapter 6 of Text
Fast, Global, and Entrepreneurial: Supply Chain
Management, Hong Kong Style.
13 31 July The Logistics of BPO Operations: Models and Submit a 2-page
Performance for Call-Centres Progress Report
Readings: Queueing Models of Call Centres
Improving Customer Service Operations at
Amazon.com (skip the optimization model)
14 1 August Contracts and Pricing between Buyers and Suppliers: *Megacard
Quantity Flexibility, Buyback Policy , Options Model;
Readings: Chapter 4 of Text
Return Policies: Making Money by Making Good
Procurement Risk Management (PRM) at HP
15 7 August Guest Speaker: H.G. Raghunath, Titan
16 8 August Design of a Supply Network; *General Appliance
Readings:
17 14 August Pricing and Yield management in Service Supply Retail game
Chain;
Pricing Fashion Products: Play this game before
coming to class
Readings: Chapter 13 of Text
18 15 August No Class
20 August Submit Project Report
19 21 August Project Presentation
20 22 August Project Presentation
24 August End-Term exam
*Case submissions required on that particular date.
Page 4 of 4
