IEOR 153

IEOR 153

Supply Chain Management and Logistics Network Design

Fall 2009

Instructor:

Phil Kaminsky

Office: 4179 Etcheverry Hall

Phone: 642-4927

Email: kaminsky@ieor.berkeley.edu

Office Hours:

Tuesday 1:00-2:00

Thursday 3:30-4:30

or by appointment.

Course Meetings:

Tues. 2:00-3:30 3 LeConte Hall

Thurs. 2:00-3:30 3 LeConte Hall

Teaching Assistant:

Ming Yuen

Office Hours:

Tues. 3:30-4:30

Thurs. 3:30-4:30

Email: mingkyuen@gmail.com

Course Objectives:

Intense competition and continually increasing customer expectations continue to force firms to become more efficient and more responsive in order to thrive. This, together with continuing advances in transportation and communication technology, and rapidly evolving internet-based strategy, has motivated the continuous evolution of the supply chain, and of techniques to manage it. At the same time, these rapid advances and new approaches provide exciting opportunities for managers and firms that are positioned to take advantage of them. In this course, we will explore state-of-the-art logistics strategies, models, algorithms and tools for integrating the supply chain in ways that reduce system-wide costs, and improve system-wide service. We will discuss methods which firms can utilize to better deal with the randomness and variation inherent in real-world systems. We will identify new opportunities, issues, and concepts introduced with the growth of the Internet and ecommerce, including exchanges, collaborative forecasting, and others. We will also discuss decision support and information technology, and develop an understanding of the optimization tools used for logistics and supply chain network design.

We will address many advanced topics and issues including:

· Supply chain configuration

· Inventory Management and risk pooling

· Visibility in supply chains

· Supply Contracts

· Information technology

· Supply chain integration

· Ecommerce

· Strategic partnerships

· Dynamic pricing and yield management

· Coordinated product and supply chain design

· Risk Management

After taking this class, you should be able to:

· Develop a systematic framework for analyzing the behavior of large and complex supply chain networks.

· Understand the relationship and motivations of suppliers and distributors to ensure supplies of raw materials and markets for finished goods.

· Explain state of the art technologies and approaches that reduce production, inventory and transportation costs, and improve service levels and profitability.

· Understand the concept of risk in the supply chain, and how it can be fairly distributed.

· Understand the concepts of known-unknown and unknown-unknown risk, and be able to discuss how both kinds of risk can be mitigated.

In addition, you will have experience using commercial logistics network design software.

Course Web Site:

Updated versions of this syllabus, homework assignments, class notes, announcements, etc will be on the course bSpace page. Please let me know immediately if you don’t have access to that page.

Questions and Discussion:

For this course to be successful, everyone must participate in classroom discussion. Much of the course will consist of case discussions and analysis, so please do all of the assigned reading ahead of time, and prepare for and contribute to class discussions.

For many (but not all) lectures I will make use of PowerPoint slides. I will make every effort to have these slides available on bSpace ahead of time. Printouts of the slides may be useful for note taking. If I don’t manage to have the slides available before class, they will be available soon after class. In some cases the answers to discussion questions I ask in class will appear in later slides, so please make an effort not to read the slides ahead of time, or to read ahead in class.

Text:

Designing and Managing the Supply Chain, Third Edition, by Simchi-Levi, Kaminsky and Simchi-Levi, 2008, New York: McGraw-Hill. There are (unfortunately) quite a few typos in this addition – I’ve posted a listing of significant typos on the bSpace page.

There will also be several cases, most of which are available electronically, and can be purchased online. I’ll let you know the details before we get to these cases.

Article:

Each student will be responsible for presenting a newspaper or magazine article to the class. This article should be in some way relevant to the material we have or will cover and class. A scan, printout, or link to the article, along with a short summary of the article, should be emailed to the GSI no later than one day after the article is presented – this will be posted on the course bSpace page. Please format your email similar to this:

Presenter: Your name here

Presentation Date: The date you have or will present the article

Article: The title of the article

Source: The magazine, newspaper, etc reference, including date

URL: If the article is available on line, include the URL

Summary: A one paragraph summary of the key points in the article

The presentation should be a brief verbal summary (a minute or two) of the article and an explanation of why it is relevant to this class . Each article can only be turned in once, so there are advantages to presenting early in the semester. Please be sure to sign up when the signup sheet is circulated.

Assignments and Grading:

There will be occasional reading assignments, typically case studies, that you will be expected to complete before the class in which they are discussed. There will be approximately weekly written assignments. Some of these assignments may be mathematical, but many of them will not be. Where appropriate, please write clearly and correctly. Non-mathematical assignments must be typed or word-processed. Assignments will be due at the start of class on the due date. You will be allowed to turn in one homework one week late without penalty. Any other late homework will receive a grade of 0. The lowest homework grade will be dropped. This policy is non-negotiable. With the exception of occasional group homework assignments, homework write-ups must be completed alone; however, you can work with others on particular problems. If you do so, you must acknowledge the names of these colleagues as part of your write-up. Failure to do so will be considered cheating.

There will be a midterm and a final exam. There will also be a formal group case presentation towards the end of the semester. Within the first few weeks of classes, we will form groups to be used for the occasional group homework assignments as well as for the final case presentation

Your final grade will be based on:

Midterm	30%
Final	30%
Homework	20%
Article	5%
Case Presentation	10%
Participation	5%

Computer Programs and the Lab:

We will use several computer programs in the course, either during class or as a part of homework assignments. These programs will all available in the IEOR Undergraduate Computer Lab in 1173 Etcheverry Hall. Please go to the IEOR main office to arrange for access to the lab and computers.

Course Outline:

For the most part, we will follow the text book, with additional material added as we go along. This is a very tentative syllabus, which I will update as we progress. I will keep an updated syllabus available on the class bSpace page.

Week of:	Topic	Chapter
1. August 27	Introduction	1
2. August 31	Introduction Inventory	2
3. September 7	Inventory and Forecasting	2
4. September 14	Supply Contracts	4
5. September 21	The Beer Game and the Value of Information	5
6. September 28	Value of Information	5
7. October 5	Logistics Network Planning	3
8. October 12	Logistics Network Design Algorithms
9. October 19	Supply Chain Integration Midterm (Tuesday 10/20)**	6
10. October 26	Distribution Strategies	7
11. November 2	Strategic Alliances and Outsourcing	9
12. November 9	Veterans Day Tuesday Design For Supply Chain Management	11
13. November 16	Smart Pricing	13
14. November 23	Global Logistics and Risk Management Thursday - Thanksgiving	10
15. November 30	Case Presentations
Final Exam: Monday, December 14^th 12:30pm-3:30pm

** Subject to change