SCM 701
Supply Chain & Logistics Mgmt
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Road Map
 Course Policies Overview
 Introduction to SCM
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Self-introduction
 Instructor (Zhengping Wu)
⚫ J&J
⚫ PhD from Purdue
⚫ Singapore Management University
(SMU)
 Students
⚫ Make name cards
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COVID Ramifications
 Observe SU COVID protocols
 No hard copy of course materials
available
 Virtual office hours preferred
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Whitman SCM Program
 Nation’s first SCM program
 H. H. Franklin Center for SCM
⚫ Franklin Supply Chain Club
⚫ Salzberg Memorial Lecture Program (link available on
Blackboard)
⚫ Zinsmeister Award
 Robert H. Brethen Operations Management Institue
⚫ The Robert H. Brethen Prize
⚫ Supports SU’ chapter of ASCM (previously known as APICS)
 MIT SCM Excellence Award (link available on Blackboard)
 ASCM Supply Chain Awards (link available on Blackboard)
 Case competitions
 Corporate partners
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Course Policies
 Blackboard Tour
 Syllabus
⚫ Attendance & participation
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Your SCM Stories
 What have your learnt about SCM?
 What have you read in the news
about SCM?
 Your personal experience
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 Matching Supply with Demand
in the Presence of Uncertainties
 Matching
⚫ Inventory strategies (supply side
strategies)
⚫ Dynamic pricing & revenue management
(demand side strategies)
 Uncertainties
⚫ Impact of uncertainties
⚫ Risk pooling: reducing uncertainties
⚫ Bullwhip effect
Course Overview
Course Goal
Test of Business Acumen
 Mr Perdew’s farm grows and sells fresh-
cut Christmas trees.
⚫ This year’s demand is exactly 50 trees. How
much to stock up?
⚫ This year’s demand is equally likely to be 49 or
51 trees. How much to stock up?
⚫ This year’s demand is equally likely to be any
number between 40 and 60 trees. How much
to stock up?
⚫ In general, if demand becomes more
uncertain, should he grow more/less trees?
 Is a (cost) efficient supply chain always
desirable?
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Component
Manufacturing
Final
Assembly
Distribution &
Warehousing
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Physical Supply
Inbound Logistics
Physical Distribution
Outbound Logistics
Supply Chain
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Effective control of the flows in a network consisting of
suppliers, manufacturers, distributors, and customers
• Material flow
• Information flow
• Finance flow
Formal Definition of SCM
The Supply Chain Umbrella
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Why So Much Interest in Supply
Chain Management?
 As manufacturing becomes more
efficient (or is outsourced),
companies look for ways to reduce
costs
 Several significant success stories.
Efficient SCM gives Walmart, HP,
others, an important edge
 Considers the broad, integrated, view
of materials management from
purchasing through distribution
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Trends in Supply Chain
Management
 Outsourcing of the logistics function
(example: Saturn outsourced their
logistics to Ryder Trucks.
Outsourcing of manufacturing is a
major trend these days.)
 Moving towards more web based
transactions systems
 Improving the information flows
along the entire chain
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Analytical Methods to Support
SCM Implementation
 Successful supply chain management relies
on information, analytics, and aligned
incentives
 Analytical methods include:
⚫ Inventory management and demand forecasting
models such as those discussed in this course
⚫ Dynamic pricing and revenue management
⚫ Analytical methods for aligning incentives in
supply chains
⚫ Warehouse location decision and distribution
network design
⚫ The transportation problem and more general
network formulations for describing flow of goods
in a complex system
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Mini-Case: Walmart vs Kmart:
Similarities
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Mini-Case: Walmart vs Kmart:
Discrepancies
Kmart Walmart
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Homework
 Form your case study group by next
Wednesday @5pm
 Purchase the course pack
⚫ Everyone should buy a copy; otherwise you won’t
be able to play the Global SCM simulation game
⚫ Find required articles (if not purchased – the 6
articles are optional items in the course pack to
save you money)
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