Lecture 01: Introduction to Courseoran/classes/LSCM_resources...Syllabus & Rules LSCM 101 SCM & me...

Syllabus & Rules LSCM 101 SCM & me Terminology

Lecture 01:Introduction to Course

Oran Kittithreerapronchai1

1Department of Industrial Engineering, Chulalongkorn UniversityBangkok 10330 THAILAND

last updated: May 4, 2017

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Outline

1 Before Class: Contact Information, Syllabus,Roles and Agreement

2 Fundamental of Logistics & Supply ChainManagement

3 Why do we care/learn about Supply ChainManagement?

4 Important Terminology in Logistics and SupplyChain Management

General Reference: [?] [?] [?] [?]

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Contact information

Name: Oran Kittithreerapronchai, PhDOffice: Room 603, Engineering Building 4Office Hour: After class or by appointmentEmail: [email protected]: 02-218-6832Coursevile: LSCM≪ year ≫WWW: http://www.ie.eng.chula.ac.th/ ̃oran/

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mailto:[email protected]

http://www.ie.eng.chula.ac.th/~oran/


Syllabus: Before we start

GoalsAware of concepts and issues in logistics and supply chain management,including trade-off and recent developmentsIdentify problems in occurred in a case studies and suggest reasonableimprovementsApply analytical tools to improve logistic and supply chain system

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Grading policy

Grading

Item Option 1 Option 2Progressive Traditional

Homework 2 × 10% 1 × 10%Case Study 2 × 15% 1 × 15%Quiz & Participation 15% 5%Field trip report 10% -Midterm exam 35% 35%Final exam - 35%

Grading and Scores85 and above: final grade id definitely ’A’between 50 and 85: A, B+, B, C+, . . . ,D50 and below: final grade is possibly ’F’

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Class rules and agreements

No class attendance, except during field tripsDon’t miss field tripDon’t interrupt othersBe responsible, especially meeting time and assignmentParticipate during class; this is elective level course

Midterm Exam is designed to test student basic knowledge of the course.

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Code of honors

Education with ethic standards and social responsibilitiesTrust as integral and essential part of learning processSelf-discipline necessityDishonesty hurts the entire community

adapted from: Georgia Institute of Technology –The Honor Code

Any violation to code of honors will severely punished, especially cheating andplagiarism

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Textbook and references

Textbook[?] Chopra, S. and Meindl, P. 2001. Supply chain management:

Strategy, Planning and Operation. Prentice Hall. New Jersey.

[?] Goetschalckx, M. 2011. Supply Chain Engineering, Springer,Boston

[?] Ballou, R. 2004. Business Logistics/ Supply ChainManagement. Prentice Hall. New Jersey.

[?] Jacob, R. and Chase, R. 2010. Operation and SupplyManagement: The Core. McGraw-Hill, New York.

[?] Simchi-Levi, D. et. al. 2001. Designing & Managing theSupply Chain. McGraw-Hill, New York.

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What do you know about SCM?

Supply Chain Management (SCM) is recent/fresh and sexy?SCM and IHow SCM relate to your field?Scopes of SCM ∈? OM (e.g., inventory, warehouse, distribution)mis-concept?Logistics =? Supply Chain =? Value ChainSCM →? Cost reduction & Investment in ITSCM is for modern trade retailers & large manufacturers

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Example of SCM: Shirts Supply Chain

Manufacturer Distributor Retailer Customer

$20.45 $41.34 $52.72

source: Operations and supply management. 2010 [?]LSCM v2.0 10/ 24


What is Supply Chain?

Flows of products (service), funds and information from raw materials to endconsumers

Upstream DownstreamMaterials: return, repair, disposal RM, WIP, FGInformation: sales, promotion plan capacity, delivery scheduleFunds/Values: payment, consignment credit, invoice, payment

Importance of supply chainSCM covers every products/ service and impacts cost and availabilitySCM is important to strategy and value creationSCM involves many parties and becomes ever increasing complex

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Is supply chain new ’thing’?

source: Center for Supply Chain Research, Penn State University [?]

What new in SCM?: Supply Chain VS Material ControlSC is single entity, not zero sum gameSC requires strategic decision makingSC views inventory as last resourceSC needs integration, not interfacing

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Discussing Question 1: Background check

What are factors that fuels SCM development?Which companies/industries do excel in supply chain?

Why do they need to focus on SCM (any pressure) ?How do they achieve (operation, technology, management, strategy) ?What are activities that they do focus

What do these companies/industries have in common?Elaborate SCM of your lunch

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Inventory in automotive industry

logistics costs ≈ 12% of material costssource: Martin Christopher, 2011 [?]

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Logistics/SCM and Economy?

source: Designing and managing the supply chain. 2003 [?]Martin Christopher, 2011 [?]

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Economic Reasons for Globalization

Local consumptionConsumer in Suit Software TotalThailand $250 $500 $750USA $500 $200 $700

Global consumptionConsumer in Suit Software TotalThailand $250 $250 $500USA $300 $200 $500

Is this good idea?Political pressure e.g., local sourcing, growing industryInefficient market e.g., under crisis

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Factors in Managing Supply Chain

source: Martin Christopher, 2011 [?]

Product design: variation by postponement, container designMake/Buy VS outsource: value VS. used materialCompete through time: shorten LC, low inventory ,volatile marketGlobalization: trade, economic growth, technology, deregulationInformation: ERP, service, traceabilityRelationship: trust, sourcing, style, replenishment

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SCM today: searching for value

BackgroundCompanies focuses on core competencies (Apple – designed in CA)Cooperate are managed by profit centers (CP ALL – Dynamics Mgt)Information system revolutionizes global trade (Alibaba –market place)People moves to cities with high pay job (Lazada –online market)

Effects on SCMRaise of specialist: assets and knowledge/ differentiate/ outsoucing /collaborationRaise of Modern Trade: large retailers dictated customerFragmented Supply Chain: individual goals, no resilientComputerized Operation: data collection, big data,

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Issues in LSCM

Revenue Mgt– American Airline: budgeted leisure traveller VS on-callconsultantOmniChannel– Home Depot: cross-dock at transit facility VS growth ofonline salesDeskJet Distribution– HP: manufacturing economy of scale VS flexibilityof local componentsIT– Zara: cheap manufacturer in Asia VS sophisticated customer in EuropeDevelopment– Boeing 787 : quality & technical designer VS quick &cheap assemblerDC Strategy– Amazon: MHE technology VS # & locations of DCs

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How to create value into supply chain

Minimize total costs → EfficiencyMaximize customer satisfaction → Responsiveness/ ServiceCreate long lasting recognition → Differentiation + Relationship

Keep in mind thatAll costs will eventually pay by consumersGood SCM requires measuring total values, not individual profit

Discussing Question 2What should do we measure?

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SCM Future

source: “The evolution and future of logistics and supply chain management” [?]

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Logistics/ Supply Chain/ Value Chain

FactorySupplier WholesaleR.Supplier Retailer Consumer

ReuseReprocessRecycleLandfill

MarketingR&D

legendmaterials information

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Terminology

Logistics“Time related positioning of resources” (Man, Machine, Materials, Money)Military logistics: can food, computer, petrolatum, tankerSocial logistics: taxation, transportation infrastructure, lawBusiness logistics: company related

Supply Chain“The management of material out of the ground and back into it’Inbound: logistic of raw materialsOutbound: logistic of finished goodsConcurrent term: Retailer business, Distribution network

Reverse Supply ChainLogistic of used products from customer to landfill, including re-use/re-cycle

Value ChainExtension of supply Chain includes product/process design and recycleprocesses

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Reference[Bal07] Ronald H Ballou.

The evolution and future of logistics and supply chain management.European Business Review, 19(4):332–348, 2007.

[Chr16] Martin Christopher.Logistics & supply chain management.Pearson Higher Ed, 2016.

[CM07] Sunil Chopra and Peter Meindl.Supply chain management. Strategy, planning & operation.Springer, 2007.

[Goe11] Marc Goetschalckx.Supply chain engineering, volume 161.Springer, 2011.

[JC10] F Robert Jacobs and Richard B Chase.Operations and supply management: The core.McGraw-Hill Irwin New York, NY, 2010.

[LKL03] David Simchi Levi, Philip Kaminsky, and Edith Simchi Levi.Designing and managing the supply chain: Concepts, strategies, and case studies.McGraw-Hill, 2003.

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Lecture 01: Introduction to Courseoran/classes/LSCM_resources...Syllabus & Rules LSCM 101 SCM & me...

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