A Study of

Supply Chain Management

For MBA

Complied by Faculty of
Ishan Institute of Management & Technology
Greater Noida
 Contents

1 Supply Chain Management

1.1 What is a Supply Chain? 1
1.2 Achieving Integrated Supply Chain 2
1.3 Generic Types of Supply Chain 3
1.4 Various definitions and implications 11
1.5 Flows (Cash, value and information) 12
1.6 Enablers of Supply chain performance 14

2 Logistics & Supply Chain Management

2.1 Functions of Logistics Management 15
2.2 Logistics Vs Supply Chain Management 18
2.3 Logistics Cost 18
2.4 Activity Based Costing 20
2.5 Inbound Logistics 26
2.6 Outbound Logistics 27
2.7 Bullwhip Effect and Supply Chain 28

3 Inventory Management
3.1 Definition of Inventory 33
3.2 Types of Inventory 34
3.3 Elements of inventory Cost 35
3.4 Selective Inventory Control (ABC Analysis) 38
3.5 ABC-VED Matrix 40
3.6 Determination of Economic Order Quantity 41
3.7 Material Requirement Planning 47
3.8 Vendor Managed Inventory Systems 55

4 Just-In-Time & Kanban

4.1 Introduction 61
4.2 Features 61
4.3 History 62
4.4 Toyota Motors 63
4.5 Requirements 64
4.6 Just-In-Time Total Quality Management 65
4.7 Pros & Cons of Just-In-Time 65
4.8 Case in Which JIT has failed 66
4.9 The Concept 67
4.10 Push vs. Pull 68
4.11 JIT Contribution to Competitive Advantage 69
4.12 Just-In-Time Success Factors 70
4.13 The Major Misconceptions of JIT 76
4.14 Elements of JIT 76
4.15 Kanaban System 78
5 Information Systems in Supply Chain
5.1 Introduction 91
5.2 Major Functional Roles of IT in SCM 95
5.3 IT in Supply Chain Collaboration and Coordination 96
5.4 Major Differences between ERP and ERPII 97
5.5 Technologies for Effective Supply Chain Management 97
Collaboration and Coordination Systems
5.6 The Four Factors in Operation Planning Systems 97
5.7 Technologies for Effective Supply Chain Management 98
5.8 IT in Supply Chain Measurement and Reporting: 98
Key Supply Chain Metrics
5.9 IT in Supply Chain Measurement and Reporting: 99
Enabling Technologies
5.10 Strategic Management Framework For IT Adoption in SCM 100
5.11 IT Implementation Methodologies 100
5.12 Categories of Firms Offering Supply Chain Application Software 100
5.13 Future Trends 101
5.14 DBMS Oriented Information Systems 101
5.15 ERP and SCM 104
5.16 RFID: Concept and application 107
5.17 RFID in Supply Chain Management 121

6 Supply Chain in Industries

6.1 Dabur India Ltd.: Using SCM in Pharmaceuticals 129
6.2 SCM in Beverages: Case Example- PepsiCo 134
6.3 Dell Computers: Using the Supply Chain to Compete 139
6.4 Newspaper Supply Chain 142
6.5 Case of Mumbai Tiffinwala 147
6.6 SCM at Dalmia Cement Ltd. 150
6.7 Amul: Using SCM in Milk & Dairy Products 158
6.8 SCM in fast-food: Comparison of Supply Chain Model
of McDonald’s and Domino’s 163

7 Recent Issues in SCM

7.1 Benchmarking 169
7.2 Demand Chain management 175
7.3 Supply Chain Operation Reference (SCOR) Model 180
7.4 Outsourcing 191
7.5 Value Addition in Chain 197

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