B8108: Supply Chain Analytics Spring 2023

Class schedule: Mondays and Wednesdays, 12-1:30 PM

Location: Kravis 890

Instructor: Awi Federgruen

Office:
Phone:6469576589
af7@columbia.edu

Instructor office hours: Mondays 9-10am

4-5 pm, and by appointment.

TAs Wen Yun

WYun25@columbia.edu

TA office hours: TBA

This course covers the major issues in supply chain management, including the definition of
supply chain, planning models to guide the design of a supply chain network, the role of
inventories in make to stock systems, commonly used inventory models, supply contracts, the
value of information and information sharing, risk pooling, design for postponement,
managing product variety, information technology and supply chain management;
international and environmental issues.

Prerequisites:

 IEOR 3402, IEOR 4000 or permission of instructor

 Students are expected to have a working knowledge of optimization, spreadsheet-based
simulation, probability, and Excel.

Required Textbook: David Simchi-Levi et al., Designing and Managing the Supply Chain:
Concepts, Strategies, and Test Studies. 3rd edition, McGraw-Hill, 2008.

Readings & Cases (available on Courseworks website):

 Blockbuster Inc. & Technological Substitution (A): Achieving Dominance in the Video
Rental Industry
 Cargo: Supply Chain Coordination and Contracts in the Sharing Economy
 CEMEX: Transforming a Basic Industry Company
 Fast, Global, and Entrepreneurial: Supply Chain Management, Hong Kong Style (An
interview with Victor Fung)
 GE Healthcare: Managing Magnetic Resonance Operations
 LL Bean, Inc: Item Forecasting and Inventory Management
 Multimarket Facility Network Design with Offshoring Applications
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 Queuing Management and Models
 Sport Obermeyer Ltd.
 Dynamic Lot Sizing with Deterministic Demand, Principles of Inventory Management

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 Recommended References:

 Jeremy F. Schapiro, Modeling the Supply Chain. Duxbury, 2001.

 Terry P. Harrison et al., eds., The Practice of Supply Chain Management: Where Theory
and Application Converge. Kluwer Academic Publishers, 2003.
 Sunil Chopra and Peter Meindl, Supply Chain Management: Strategy, Planning, and Operation.
2nd edition, Pearson Prentice Hall, 2004.
 Gérard Cachon and Christian Terwiesch, Matching Supply with Demand: An Introduction
to Operations Management. McGraw Hill, 2009.
 Robert E. Hall, Digital Dealing: How E-Markets are Transforming the Economy. W.W. Norton
& Company, 2001.
 A.G. de Kok and S.C. Graves. Eds., Supply Chain Management: Design, Coordination,
and Operation. Elsevier, 2003.

Game Assignment: Write-up Littlefield game (group assignment), due March 2 (5% grade)

Problem Assignments (You must turn in at least 6; you will be credited for the best 6 grades):

1. Problem set 1: Deterministic continuous review models, due Jan 31

2. Problem set 2: Cargo Part I, due Feb 7
3. Problem set 3: Sport Obermeyer analysis, due Feb 21
4. Problem set 4: Single period stochastic inventory problems/Cargo II, due Feb 28
5. Problem set 5: Make to order systems, due Mar7
6. Problem set 6: Multi-period stochastic inventory models, due March 28
7. Problem set 7: Coordinated replenishments, due Apr 25
8. Problem set 8: Bullwhip effect, due May 2

Grading: Problem Sets 25

Final Exam %%
30
Midterm Exam %
25
Littlefield game write-up (group assignment) %5
Illumexico case (group assignment) 5
Participation 10
%
Participation: For this course to be successful, everyone must participate in classroom
discussion. The participation grade is based on the instructor’s evaluation of the quality of
each student’s progress and contribution during the semester. You should note that, in
general, quality is more important than quantity.

Tentative schedule:

1. Jan 3-25: Introduction to Supply Chain Management: Amazon

Introduction to inventory management and supply management:
Deterministic Continuous Review models I
2. Jan 30 – Feb 1: Deterministic Continuous review Models II: supply chain coordination
mechanisms

Managing Demand risks; (Single sales season models) LL Bean case

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 3. Feb 6-8: Managing Demand risks; Single sales season models; Supply contracts: Buyback

Agreements, revenue sharing, discount schemes; Cargo case

4. Feb 13-14: Forecasting in supply chain management

Make to Order Systems I: queueing models;

5. Feb 20-22: The benefits of reactive capacity: Sport Obermeyer case

Make to Order Systems II; introduction to Littlefield.

6. Feb 27-March 1: Littlefield Supply Chain game: discussion and analysis

7. Mar 3 (Friday): Midterm Exam 12-1:30 PM

Mar 6-10: Spring Break

8. Mar 13-18: Multi-period inventory systems: linear procurement costs

Multi-period inventory models: economies of scale in procurement costs
9. Mar 20-22: Inventory pooling and supply chain integration; two echelon inventory system
Inventory pooling and supply chain integration; two echelon inventory systems II:
General Electric Healthcare Case

10: March 27-29 Assemble to Order: Illumexico case

Supply chain design; design for postponement: the HP Deskjet case

11. Apr 3-5: GE Healthcare case discussion: The benefits of coordinated replenishments
/ design for postponement

12. Apr 14 (Friday): 830am - 10:15am: Prof. Medini Singh: Role of IT in Supply Transformation

Virtual Integration; Value Chain Dissection

13. Apr 17-19: The value of information and information sharing: discussion of the Bulllwhip
effect

14. April 24-26: Dual Sourcing: China-Mexico dual sourcing game

Final Exam date TBD (3 hours)