FEA470 Logistics Supply & Demand Chain Management Autumn 2010 Bernt Saxin Bernt.Saxin@handels.gu.

se 786 5133

Course instructions and schedule
1 Teaching arrangements
The course consists of lectures, seminars, and a laboratory exercise. The lectures present various theories and applications, which are either covered by the course literature or forming minor extensions from the literature. The seminars, including laboratory work, purpose to deepen the understanding of the systemic and complex nature of the subject and also to develop skills in solving (simplified) real-life business problems and to present and discuss the results in a group situation. These seminars will deal with selected topics (cases) from the lectures and the literature and imply that the students prepare themselves individually or in groups by reading and answering questions in writing. These preparations will result in written reports and seminar discussions. The seminars and the laboratory exercise are compulsory. Instructions for seminars and the laboratory exercise, the Supply Chain Game, are given below.

2 Examination
A written examination will be given at the conclusion of the course. The examination also includes a major project assignments, case reports and a report from the Supply Chain Game. The project assignment will be graded by the instructor. The short case reports and the Supply Chain Game report will only be given the grades pass / no pass. The final grade from the course will be based on the sum of points from the written examination (maximum 60 points), the project work (max 30 points), and the case seminars and laboratory assignments (10 points when all are passed). A student who has failed a test twice has the right to change examiner, unless weighty argument can be adduced. The application shall be sent to the board of the Graduate

• Lack (IKEA) – will be handed out: To be specified The task for these minor case assignments are (group work. include a competitive perspective (Porter’s 5 force model) . third edition.School and has to be in writing. See schedule and dates for the seminars. p 358) • Dell (Chapter 6. • Steel-Works. You should answer the questions at the end of the case. but everyone is supposed to be able to present and discuss the answers): a) Give a brief description of the case and the problem (max half a page). Inc (ch 2). are taken from the book by Simchi-Levi. which should be handed in no later than at the lecture on 8th November. Kaminsky and Simchi-Levi (2008) Designing and Managing the Supply Chain. 3 Case assignments and seminars All cases. • Wal-Mart (ch 10). The course consists of minor assignments/seminars for case presentations and discussions. except the last one. You should be able to present and discuss your results in the class at the lecture (no PowerPoints or overheads). • Meditech Surgical (chapter 1 in the book). • Hewlett-Packard Company: Networks Printer Design for Universality (ch 11. however you answer the questions individually in writing. The next 6 cases will be done in your groups (hand in the reports at the beginning of the seminar): • Barilla SpS (. You may discuss the case in groups. McGraw-Hill. Note the questions to be answered is on page 171 (1a-e).5 pages (including a brief summary of the case). chapter 5 in the book). Note that the Dell case does NOT include the questions on page 188. The first case. Question 6 on page 329. page 179. in the book). 1 – 1. A student has the right to be examined a maximum of five times for each module. You should answer the questions at the end of each case. is done individually.

Reference list at the end (Harvard style). The seminar reports must be handed in to the instructors at the appropriate seminars and never to a subsequent one or otherwise be delivered too late.b) Answer the questions. Zoi Nikopoulou The supply chain game is a workshop about supply chain management. Pursue a brief discussion where you motivate your answers by referring to the book and / or other references (academic journals. d) Group report 1-3 pages for each case.Floden@handels. The group report should be written and turned in on the 15th Nov. 5 Lab / workshop: “The Supply Chain Game” Instructors: Jonas Flodén. Title page with case title and all group members’ names. All forms of plagiarism will be reported and the accused risks disciplinary actions! 4 Project assignment Instructor: Bengt Nordén Will be presented separately. which must be passed (only graded pass / fail) to pass the course.gu.Nikopoulou@handels. Seminar will be held 9th Dec 8:15-12. The game simulates the logistics effect in a simple supply chain.gu. . It is not allowed to use material from the Internet or other sources without giving proper references. other sources) c) Be prepared to present the case and the answers in a discussion at the seminar (no PowerPoints or overheads needed).se Zoi. These seminar reports are prepared in small work groups. Permitted group size is 3-4 students. books. no later than 12:00 to your instructor: Jonas.se More detailed instructions about this workshop are given in the coming pages. The workshop consists of one game round each group writes a brief report. to be handed in to me no later than the start of the seminar (bring it to the seminar).

THE SUPPLY CHAIN GAME A laboratory exercise about Supply Chain Management (SCM) – Instructions The Supply Chain Game is a laboratory exercise about supply chain management. low costs and high customer service. Game Introduction Today it is not only the company itself that competes. manufacturer. During the game we will record and follow up some KPI: s (Key Performance Indicators) such as tied-up capital. Round 1 – The starting point Round 1 – The starting point Order Order Goods receivin g WIP 1 WIP 2 Order Order Warehous e inventory Goods receivin g Order Finished WIP 1 WIP 2 goods Finished goods Goods receiving Bulk break Shelf stock Set-up Set-up Set-up Set-up Supplier Manufacturer Distributor Retailer . The teams compete against each other and the objective is to achieve the highest performances.e. as in the figure above. It is the efficiency and effectiveness along the whole supply chain that counts. each representing a supply chain. The game simulates the logistics effects in a simple supply chain (supplier. distributor and retailer). On the first game session we will play the game one round (15-20 weeks). Raw material Supplier Manufacturer Distributor Retailer Customer Figure 1: A simplified supply chain In this exercise we play a game that illustrates a supply chain. You will be divided into teams. Only focusing on the own company will hide existing possibilities. cost and customer service. instead it is more and more the supply chain that has to be competitive. low tied-up capital. i.

low tied-up capital. N. The whole supply chain HAS TO be in the same week during the entire game round. 2. It is FORBIDDEN to communicate with the other actors in any other way than by formal orders. Each game round is played for 15-20 weeks but you should play it as it would continue forever. The inventory carrying costs. Of course you are allowed to communicate with other participants within your own function. The objective is to achieve the highest performances. the cost of carrying one item in stock during one week is € 1).e. estimated as € 1 per week and item (i. a shortage of one item leading to a delayed delivery to the customer costs € 2 per week).e. low costs and high customer service. In this game the performances are quantified as two types of costs: 1. Every actor has a customer.e. the distributor is the customer of the manufacturer etc. no matter the location of the inventory along the supply chain. estimated as € 2 per week and item (i.B. The inventory shortage cost. The steps MUST be carried out in strict sequence. i. Wait for the teacher’s signal before you enter next week. . no matter where in the supply chain it occurs. the manufacturer is the customer of the supplier. It is very important that each actor strictly follows the steps specified on the playing board.Figure 2: The first round of the Supply Chain Game GAME RULES The Supply Chain Game simulates the logistics effects in a supply chain.

Simchi-Levi ( 2008): Designing and Managing the Supply Chain: Concepts. V. 3. Disney. Evaluate the graphs: Calculate the total costs of each actor and the total supply chain. Each team should then prioritize the seven changes and choose the two changes that it finds most important. and D. J.THE SUPPLY CHAIN GAME A laboratory exercise about Supply Chain Management (SCM) Task After playing the first round each team shall analyze how their supply chain worked. Whang (1997): “The Bullwhip Effect in Supply Chains”. Also discuss what actually was happening and explain why. Z. What effects would you expect from the changes? You receive a list of seven possible changes (see p. Error: Reference source not found below). Management Science. Ryan and D. Padmanabhan and S. Use the literature in recommended reading and other relevant literature as input to your discussion and motivation. S. Kaminski and E. Towill (2003): “The Effect of Vendor Managed Inventory (VMI) Dynamics on the Bullwhip Effect in Supply Chains”. 85(2): 199–215. Strategies and Case Studies. Lee. Discuss which of these are most important and will give the best effect on the supply chain and its performance. Spring: 93-102. 46(3): 436-443. H. In particular chapter 5 and 6. International Journal of Production Economics. McGraw-Hill. Simchi-Levi (2000): “Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting. and Information”. P. distributor and retailer) the following three graphs should be drawn: “Orders on suppliers”. Discuss what changes you would like to do in order to improve the performance of your supply chain.L. Sloan Management Review. and write a brief report (1-2 pages)..R. manufacturer.. Articles: Chen. F. “Inventory” and “Backlog to your customer”. 2. Drezner. New York. Lead Times. Draw 12 graphs: For each of the four actors (supplier. . Vol.M. D.  Hand in your group report no later than 2010-11-15 at 12:00! Recommended reading: Simchi-Levi.. This includes the following steps: 1.K. Vol. 4.

33(2): 103-131. Vol. .Svensson. International Journal of Physical Distribution & Logistics Management. G. (2003): The Bullwhip Effect in Intra-Organisational Echelons”.

9.gu. P.se Zoi.se 786 5133 Course literature SKS = Simchi-Levi. (2008) Designing and Managing the Supply Chain: Concepts. Lack. sourcing and outsourcing Localisation and place utility Case seminar Distribution strategies and business relationships Project assignment TEST Ch 4. Wal-Mart Ch 7.gu.se Martin.Saxin@handels. 11 Ch 3. 5-6.Floden@handels. D.Logistics Supply & Demand Chain Management (LSDCM) 2010 Date Time 04-nov 13:15-15:00 08-nov 10:15-12:00 09-nov 09:15-12:00 10-nov 09:15-12:00 10-nov 13:15-15:00 16-nov 09:15-11:00 18-nov 10:15-12:00 Room E43 C24 B41 B41 C33 CG salen E43 Form L L Lab Lab L Sem/ L Sem/ L Topic Course introduction Project assignment intro. 5-6. SKS Ch 1 Ch 2. 8 LE MÖ BS BN BN 04-feb 9.gu.Lammgard@handels. ext Ch 10. Kaminsky.Nikopoulou@handels.00-13 Re-test NB! This schedule is preliminary and could be subject to change L = Lecture Lab = Laboratory Sem = seminar Teachers: BN BS CL JF MÖ ZN Tel Bengt Norden Bernt Saxin Catrin Lammgård Jonas Flodén Martin Öberg Zoi Nikopoulou Bengt.gu.Norden@handels. 5-6. HP BS BS 23-nov 10:15-12:00 25-nov 10:15-12:00 30-nov 10:15-12:00 02-dec 10:15-12:00 08-dec 13:15-15:00 09-dec 08:15-12:00 14-dec 8:00-12:00 C24 F43 C24 E43 D32 L L Sem L Sem Purchasing.se Jonas.. McGraw-Hill. 12 Dell.Oberg@handels. and Simchi-Levi.se Bernt. Supply chain integration Supply Chain Game A+B Supply Chain Game C IT/IS and network planning Invenory and risk pooling Development chain and resourcing Literature.se Catrin. Titles will be added during the course and will be considered course literature .gu. 11 Ch 2. 1415 Ch 2. Strategies and Case Studies (3rd edition). E.gu. 11 Assignm Meditech surgical Lecturer BS BS JF ZN JF Barilla SteelWork.

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