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Operations Management

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DISC 333: SUPPLY CHAIN & LOGISTICS MANAGEMENT Course Instructor Name: Contact Details: Office Hours: Course Description Course Code: Quarter: DISC 333 Fall-2011 Total No. of Sessions: 28 (100 minutes each) Suitability: Undergraduate 3rd, 4th Year Dr. Kamran Ali Chatha 148-A, SDSB, Tel. 3560 8094, Email: By Appointment

kamranali@lums.edu.pk

In todays world of competitiveness supply-chains compete with supply-chains rather than individual organizations. Individual organizations cannot survive by maximizing their local benefits rather they have to develop linkages and collaborate with others in order to survive and get a bigger pie of the market share. Moreover, globalization brings its own challenges and opportunities that impact the performance of each partner within a supply chain. In the wake of these challenges, many local and multinational organizations in Pakistan and abroad have established their own supply chain planning departments. Whether that be manufacturing sector (FMCGs, Textiles, Engineering goods, Defense etc.), services sector (Financial Services, Retailing, Food Industry etc.) or social development sector (natural disaster management, social mobilization etc.), the need of supply chain management has become imperative. This course introduces necessary concepts in relation to analyzing, designing, and managing supply chains from three perspectives: (1) Operations Issues i.e. Demand forecasting, aggregate planning, inventory management, and enterprise resource planning systems; (2) Distribution Issues i.e. Distribution strategy, facility location, warehouse management, and transportation management; (3) Purchasing Issues i.e. Purchasing management, developing and managing supplier relationships, third party logistics, and strategic sourcing; These issues and many more in relation to these will be discussed at length and practical insights will be developed by analyzing a number of Management Case-Studies. The treatment of the course is such that after each major topical issue (described above) a full session will be dedicated to a case study that will describe the topic in practice and will provide opportunity to discuss problems faced by the case-study organization in practice. At the same time students will be involved in a group project. They will take up a supply chain related problem of an organization, analyze it, make models where necessary and recommend solutions in the light of concepts developed throughout the course. The students will submit their findings in the form of an oral presentation and a written report at the end of the course1.

The instructor will identify projects that can potentially be converted into case-studies or conference papers and interested students may work with the instructor following the course to convert their project into a case-study, conference paper, or even a senior project.

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Operations Management

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Pre-Requisite 1. It is expected that participants possess basic knowledge of Algebra, Calculus and/or Statistics in order to develop better understanding of the course. 2. Having taken Operations Management course is an added advantage.

Grading Students will be assessed as per following criteria, however, the instructor has the right of 5% reassigning of the criteria: Class Participation Quizzes Assignments / Written Case Analyses Group Project Final Exam Written Case Analyses The course has written case analyses report requirements. For this purpose you will form a group of three students and each group will be submitting a written case analysis in the BEGINNING of each Case Based Class. The choice of group members is up to you. Each written case must be type written and a maximum of three 1.5 line-spaced pages plus appendices, charts and graphs are allowed. Each written case report will be graded for writing style as well as analysis, recommendations and conclusions. Any text beyond three pages will not be graded. The written case reports will be due in the BEGINNING of each Case Based Class session. Group Project The course requires you to engage in a project drawn from a company situation. The desire is for you to attack a supply chain related problem of some kind, for example, demand forecasting, aggregate planning, inventory management, logistics management, or distribution network analysis and resolve it. The project team will consist of three people. It is advisable to have same group formation for the written case analyses reports and group project. Each group will present its project in both written and oral form. The oral presentations will be held during the last two class sessions. The project report should target (say) 20-30 pages in length, 1 line spaced. The project reports will be due after the final oral presentation. The quality of oral presentation and written report besides the content will be a factor in assigning grades. You are encouraged to meet your instructor on regular basis (preferably once in a week) in order to conceptualize, model, analyze and find solution of the supply chain related problem being addressed in your project. Recommended Books Following books are recommended for this course however, students are strongly encouraged to consult any other resources such as: books, journals, magazines, sharing personal experiences to enhance their learning. : : : : : 20% 10% 20% 15% 35%

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Text Book: (1) BCC: Bowersox, D.J., Closs, D.J., and Cooper, M.B., 2002, Supply Chain Logistics Management, McGraw Hill Higher Education, ISBN: 0-07-235100-4. (2) WLT: Wisner, J.D., Leong, G.K., and Tan, K.C., 2005, Principles of Supply Chain Management A Balanced Approach, Thomson: South-Western Publishing, USA, ISBN-13: 978-0-324-19187-5. Other Books: (1) SKS: Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E., 2003, Designing & Managing the Supply Chain Concepts, Strategies, and Case Studies, 2nd edition, McGrall-Hill Higher Education, USA, ISBN-13: 978-0-07-249256-9.

Detailed Course Outline

S. Topic No. (Text / Case Study) INTRODUCTION 1 2 3 4 5 6 Topic: Introduction to Supply Chain Read: BCC2-Chapter-1: 21st Century Supply Chains Case: The Pioneer Hi-Bred International Inc. Supply Management Topic: Rooh Afza Games (DOUBLE SESSION) Read: The Bull Whip Effect in Supply Chains Case: Barilla SpA (A) Read: The Bull Whip Effect in Supply Chains OPERATIONS ISSUES IN SUPPLY CHAIN MANAGEMENT 7 Topic: Demand Forecasting Read: WLT3-Chapter-5: Demand Forecasting and Collaborative Planning, Forecasting, and Replenishment

BCC means the book, Bowersox, D.J., Closs, D.J., and Cooper, M.B., 2002, Supply Chain Logistics Management, McGraw Hill Higher Education, ISBN: 0-07-235100-4. 3 WLT means the book, Wisner, J.D., Leong, G.K., and Tan, K.C., 2005, Principles of Supply Chain Management A Balanced Approach, Thomson: South-Western Publishing, USA, ISBN-13: 978-0-324-19187-5.

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Case: Supply Chain Management at World Co. Ltd. Read: Rocket Science Retailing Is Almost HereAre You Ready?

Topic: Aggregate Planning & Inventory Management in Supply Chains Read: (1) WLT-Chapter-6: Aggregate Planning and Inventory Management (2) BCC-Chapter-10: Inventory Management and Strategy Exercise: MacPherson Refrigeration PROJECT PROPOSALS DUE

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Case: L.L. Bean, Inc.: Item Forecasting and Inventory Management Read: The Critical-Fractile Method for Inventory Planning

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Topic: IT Enabled Supply Chain Read: BCC-Chapter-7: Information Networks

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Case: DEC: The Endpoint Model Read: A Note on Manufacturing Resource Planning, MRP II (SKIM)

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Case: Ford Motor Company: Supply Chain Strategy Read: The Power of Virtual Integration: An Interview with Dell Computers Michael Dell (SKIM)

DISTRIBUTION ISSUES IN SUPPLY CHAIN MANAGEMENT 15 Topic: Network Design Read: BCC-Chapter-15: Network Integration 16 Topic: Network Design Read: BCC-Chapter-16: Design Process & Techniques 17 18 19 Case: Halloran Metals Case: Merloni Elettrodomestici SpA: The Transit Point Experiment Topic: Planning for Facility Locations

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Read: (1) WLT-Chapter-11: Facility Location Decisions (2) BCC-Chapter-13: Warehousing (SKIM) 20 21 Case: Plaza, the Logistics Park of Zaragoza Case: Velky Potraviny Prague Read: BCC-Chapter-13: Warehousing (SKIM) 22 Topic: Transportation Management Read: (1) BCC-Chapter-12: Transportation Management 23 Case: Exel plc--Supply Chain Management at Haus Mart

PURCHASING ISSUES IN SUPPLY CHAIN MANAGEMENT 24 Topic: Procurement-1 Read: (1) WLT-Chapter-2: Purchasing Management (2) WLT-Chapter-3: Creating & Managing Supplier Relationships 25 Topic: Procurement-1 Read: (1) WLT-Chapter-3: Creating & Managing Supplier Relationships (continued) (2) WLT-Chapter-4: Strategic Sourcing for Successful Supply Chain Management 26 Case: Freqon--Buyer-Supplier Evolution?

PROJECT REPORTS DUE 27 28 Project Presentations Project Presentations

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