Basics of Supply Chain Management

The practice of supply chain management has become widespread in most industries. It is now included in the curriculum of many business schools in the United States and in many countries around the world. A number of professional associations, such as the American Production and Inventory Control Society and the Supply Chain Management Society, offer certification programs in supply chain management for practicing professionals. This book covers the contents of the basic supply chain management course and helps you prepare for the certification examination in supply chain management. Basics of Supply Chain Management covers all modules of a core supply chain management course, including: Transformation process Forecasting and managing demand Planning and production scheduling Inventory management Purchasing management Distribution management Global supply chain issues Authored by a practitioner with the highest level of industrial experience and recognition, this book presents each concept fully and in an accessible manner. To aid understanding, it includes many practice problems, self-study test questions, and case studies. The case studies of 20 different companies can be used to teach graduate courses in supply chain management using the case method. National as well as global demand for supply chain management experts has been growing exponentially. Therefore, learning supply chain management can lead to a very rewarding professional career path. This book gives you the information you need to get started on that path.

IntroductionIntroductionElements of Supply ChainOperating Environment of Supply ChainManufacturing Planning and Control SystemPlanning Hierarchy in a Manufacturing Planning and Control SystemCapacity ManagementComputerized Manufacturing Resource Planning SystemEnterprise Resource Planning SystemsDistribution Planning SystemsBasic Production Planning StrategiesTransformation of Demand into Supply: Designing Products to Meet Customer ExpectationsIntroductionDesigning Products to Meet Customer Needs and ExpectationsProduct Design Determines Product QualityTotal Quality Management and Product DesignQuality Function Deployment and Product DesignTaguchi’s Methodology for Product DesignProduct Design StrategiesDistinctive Competence and Product DesignOrder-Winning Criteria and Order Qualifiers and Product DesignTransformation Process Choices for Making Products Conforming to Product Design Specifications and TolerancesIntroductionTraditional Manufacturing Process ChoicesJust-in-Time ManufacturingObjectives of the JIT Approach to ManufacturingThe Key Elements of the JIT ConceptPrinciples of JIT ManufacturingManufacturing Process Design for JIT ProductionCharacteristics of a JIT EnvironmentSupplier Relations in JIT EnvironmentEmployee Involvement and Empowerment in JIT EnvironmentEffects of JIT on Manufacturing Planning and Control SystemEffects of JIT on Production PlanningEffects of JIT on Master Production SchedulingEffects of JIT on Material Requirements PlanningEffects of JIT on Capacity ManagementEffects of JIT on Inventory ManagementEffects of JIT on Organization DesignEffects of JIT on Job DesignTotal Quality Management and JITBenchmarkingTaguchi’s Methodology for Quality Product DesignMistake Proofing and Automatic On-Line InspectionStatistical Concepts for Quality ManagementStatistical Quality Control ChartsProcess Capability AnalysisDemand Forecasting and Demand ManagementIntroductionUnderstanding Target CustomersDemand ManagementDemand ForecastingPrinciples of Forecasting DemandCollection and Preparation of Data for ForecastingForecasting MethodsSome Quantitative Forecasting Techniques for Forecasting Short-Range DemandForecasting Seasonal DemandForecasting Long-Range TrendTracking the Forecast for ErrorMaster PlanningIntroductionManufacturing Planning and Control SystemPriority and CapacityPlanning HierarchyComputerized Manufacturing Planning and Control SystemProduction Planning StrategiesBasic Production Planning StrategiesDeveloping a Production PlanResource Requirements PlanningMaster Production SchedulingIntroductionMaster Production SchedulePreparing a Master Production ScheduleMaster Scheduling DecisionsMPS and Delivery PromisesPlanning Horizon for an MPSTime FencesSummary and ConclusionMaterial Requirements PlanningIntroductionMaterial Requirements PlanningObjectives of MRPMRP SystemInputs to the MRP SystemCapacity PlanningAvailable CapacityWork Center Utilization RateWork Center EfficiencyWork Center Rated CapacityWork Center Demonstrated CapacityWork Center Required CapacityInputs to Capacity Requirements PlanningShop CalendarScheduling OrdersLoad ProfileProduction and Purchasing Activity ControlPlanning ActivitiesPAC in Different Types of Manufacturing SystemsData Requirements for Processing PACOrder PreparationSchedulingManufacturing Lead TimeScheduling TechniquesInventory ManagementIntroductionAggregate Inventory ManagementPhysical Classification of InventorySupply and Demand Patterns of InventoryFunctions of Inventories in Batch Production SystemsObjectives of Inventory ManagementInventory CostsABC Inventory ControlInventory Ordering System ModelsBasic Economic Order Quantity ModelPurchasing ManagementIntroductionPurchasing ManagementPurchasing CycleDeveloping SpecificationSelecting SuppliersSupplier DevelopmentSupplier Relationship ManagementPhysical Distribution ManagementIntroductionPhysical Supply ManagementPhysical Distribution ManagementAn Integrated Physical Distribution SystemModes of TransportationTypes of CarriersConcept of Total System CostExample ProblemsDistribution Inventory ManagementIntroductionDistribution InventoriesDistribution Inventory Management SystemsWarehousingMaterial Handling in a WarehouseMulti-warehouse SystemCost Characteristics in Multi-warehouse SystemTotal Cost Curve of a Multi-warehouse SystemGlobal and Other Issues in SCMIntroductionTotal Quality Management in the Global Supply ChainRespecting Human Resources and Human Rights in the Global Supply ChainSuppliers Relationship Management in the Global Supply ChainCustomer Relationship Management in the Global Supply ChainAppendix A: Cases in Supply Chain ManagementAppendix B: Self-Study Practice Questions for Basic Supply Chain Management

Jayanta K. Bandyopadhyay, PhD, CFPIM, is a professor of operations and supply chain management at DeVry University of Chicago, Illinois, and an emeritus professor of management at Central Michigan University of Mount Pleasant, Michigan. He earned his PhD degree in industrial engineering from Texas Tech University at Lubbock, Texas, in 1973, and his master’s degree in industrial engineering and operations research from the University of Texas at Austin, Texas, in 1970. He was certified as a quality auditor (CQA) by the American Society for Quality, an international quality auditor (IQA) by the Institute of Quality Assurance, London, and a quality systems auditor (QSA) by the Registrar Accreditation Board of the American Society for Quality in 1985. He was also made a lifetime member at the fellows level (CFPIM) of the American Production and Inventory Control Society in 1990.