SCM Outline by nuhman10


									                            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

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:


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 My secretary is Mr. Khan (Phone No. 3028) who is also located in D-

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
  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
                  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
                   Reading: A New Business Model in the Airline
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
          (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
17     14 August   Pricing and Yield management in Service Supply        Retail game
                   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

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