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Executive Development Center

SCM 511 Supply Chain Management, Fall Term 2013
Course Tutor: Prof. Dr. Masood Sabzwari
Office: Faculty Room (K8)
Counseling Hours: An hour before class (Also by

Supply Chain Management:

The context of an integrated supply chain is multi-firm relationship management
within a framework characterized by capacity limitations, information, core
competencies, capital, and human resource constraints. Within this context, supply
chain structure and strategy results from efforts to operationally link an enterprise
with customers as well as the supporting distributive and supplier networks to gain
competitive advantage. Business operations are therefore integrated from initial
material purchase to delivery of products and services to end customers. Value
results from the synergy among firms comprising the supply chain with respect to
five critical flows: information, product, service, financial, and knowledge.
[Bowersox et al, 2010]

Suggested Texts:
1. Wisner, J. D., Leong, G. K. and Tan, KC., Principles of Supply Chain Management,
Cengage Learning, 2009
2. Chopra, S., and Meindl, P., Supply Chain Management: Strategy, Planning, &
Operation, 2nd edition, Upper Saddle River, NJ: Prentice-Hall, Inc., 2004.

Supplementary Texts:
1. Bowersox, DJ, Closs, DJ & Cooper, MB, Supply Chain Logistics Management, 3rd,
McGraw-Hill Irwin, New York, 2010
2. Coyle, J. J. Bardi, E.J. and Langley Jr., C. J., The Management of Business Logistics,
Published by South-Western College Pub; 7 edition, 2002

Course Evaluation
Class Assessments

10 %

Hourly Exams
Midterm Examination
Final Examination


Multiple choice, short descriptive
As shown below
Based on MCQ and numericals
Midterm Examinations
Final Examination



Total Marks: 100

SCM 511 Supply Chain Management, Fall Term 2013

Course Outline
Topics to be covered

Introduction to Supply
Chain Management

Learning Objectives of the topic

The evolution of Supply Chain Management (SCM), purpose of
logistics systems, need for logistics improvements, development
of logistics and supply chain, component of logistics systems,
value added inventory
Competitive advantage, value and productivity advantages,
Logistics/SCM competency, Inventory management policy,
integrated logistics, Barriers to logistics integration,
Achieving strategic fit, understanding the customer needs
regarding attributes of supply, responsive and functional supply
chains, Push/Pull View of Supply Chains
Video Film: Introduction to SCM

Information Technology
Enterprise Resource
Planning, Material
Requirement Planning

Goals of supply chain information technology, Information

technology infrastructure, E-Commerce, Supply chain
management components.
Application of information technology in SCM; ERP, MRP, SC
application software


Capacity Planning

As assignment
Importance of Capacity Decisions, Capacity Strategy, Steps for
Capacity Planning, Capacity Expansion Strategies, Minimizing
Capacity Constraints

Location Logistics

Logistics planning triangle, strategic location of facilities, steps in

location decisions, factors in manufacturing, warehousing and
distribution centers locations, factors for global and regional
location of facilities. Criteria for site selection, techniques for
location analysis

Partnerships/ Third
Party Logistics

Types of logistics relationships, Process Model for Logistics

Relationship, driver and facilitator of relationship, process
methodology for forming and developing logistic relationship,
third party logistics (3PL), types of 3PL, collaborative
relationship, advantages and disadvantages of 3PL, causes of
failure of logistics relationships, 4th party logistics

Procurement &

The fundamental aspects of sourcing, procurement as a strategic

tool, benefits of effective sourcing decisions, procurement
perspective, total cost of ownership, procurement strategies, seven
basic procurement processes, supplier assessment factors

Inventory Management
& Control

Types of inventories, inventory control system, economic order

quantity, inventory costs
Cycle Inventory, Safety Stock Inventory, Anticipatory Inventory,
Pipeline Inventory, inventory system models, multi-period
inventory and single period inventory models, fixed order quantity


Transportation Mgmt.

model, price break model, ABC analysis, bin and optional

replenishment systems, Just in Time (JIT) inventory procedures,
Bull whip effect,
Vendor Managed Inventory (VMI) > as assignment
As assignment
As assignment


Production Planning,
Lean Manufacturing &
JIT Manufacturing

Manufacturing System Design, Flexibility and Capacity Planning,

System theory and manufacturing, lean manufacturing, JIT, Video
Films on Manufacturing and lean manufacturing.


Reverse Logistics
Supply Chain
Measurement &

As assignment
Performance Measurement Perspective, Metrics and Key
Performance Indicators (KPI), activity and process based
Internal Performance Measurement; cost, customer service and
performance based measurements, External Performance
Measurement; customer surveys and benchmarking, perfect order
and causes of failure to deliver a perfect order
Measurement system for logistics performance; SC balancescorecard, Logistics Scoreboard, Supply Chain Councils SCOR
model, measurement of overall chain efficiency,
Video Film on SC Efficiency Measurement

Assignment 1

Reverse Logistics

Forward & reverse logistics (RL), strategic

reverse logistics,
Reverse logistics vs. close-loop supply chains,
challenges of RL, environmental consideration
of RL and green logistics

Assignment 2


Importance of forecasting, prediction &

forecasting, qualitative & quantitative methods
of forecasting, forecast accuracy
Video Film: Using Excel for Forecasting

Assignment 3


Nature & Importance of Marketing Channels,

Marketing Channel Functions, distribution
channel design, alternative channel
arrangements; multiple channels, non
traditional channels, adaptive channels,
strategic alliances, Channel leadership,
conflict, and partnering, managing channel

Assignment 4

Vendor Managed Inventory

The difference between Traditional Inventory

Managed and Vendor Managed Inventory
(VMI), issues that must be considered to make
a Vendor Managed Inventory program
successful, Role of IT in VMI.

Assignment 5

Transportation management
or Warehouse Management

Types of warehouses, warehousing activities,

factors influence effective use of warehouses,
stock location methods.
Importance of transportation in logistic chain,
value added transportation, inter-modal
transport, Transportation Decision Making in
an Integrated Supply Chain, Transportation
Role in Value Attainment Process, network
freight flows, modal selection and carrier
management, factors influencing
transportation costs, efficient use of
technology and equipment in transportation.