IEOR 153

Supply Chain Management and Logistics Network Design

Fall 2008

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 3106 Etcheverry Hall

Thurs. 2:00-3:30 3106 Etcheverry Hall

Teaching Assistant:

Engin Alper

Office Hours: To be determined

Email:  engin@ieor.berkeley.edu

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

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.

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

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.  

I will distribute copies of the PowerPoint transparencies used in class after we complete our coverage of a topic.  This should help you focus on class discussion rather than on note-taking.

Text:

Designing and Managing the Supply Chain, Third Edition, by Simchi-Levi, Kaminsky and Simchi-Levi, 2008, New York: McGraw-Hill.   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 an article to the class.  This article should be in some way relevant to the class, and should be turned in, along with a short paragraph summary, and a one sentence summary that will be posted on the web.  Also, please include a web link to the article if relevant.  The presentation should be a brief verbal summary (a minute or two) of the article.  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 that you will be expected to complete.  There will be periodic short quizzes (every one to four sessions) given in class to test your understanding of lectures and readings.  The lowest three quiz grades will be dropped.  I will also post homework assignments approximately weekly, although (with the exception of one or two group assignments) these will not be collected or graded. 

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%
Quizzes	25%
Articles	5%
Case Presentation	10%

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 to get a Cardkey if you do not already have one. The fee depends on whether or not you already have a key card – Joyce can give you the details. You are required to have a PC account in order to use the PC's, and some of the software we use will only be available in the lab.

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 on the course web page, which can be found at:   http://ieor.berkeley.edu/~kaminsky/ieor153

Week of:	Topic	Chapter
1. August  28	Introduction	1
2. September 1	Introduction Inventory	2
3. September 8	Inventory  and Forecasting	2
4. September 15	Supply Contracts	4
5. September 22	The Beer Game and the Value of Information	5
6. September 29	Value of Information	5
7. October 6	Logistics Network Planning	3
8. October 13	Logistics Network Design Algorithms
9. October 20	Supply Chain Integration Midterm (Tuesday 10/21)**	6
10. October 27	Distribution Strategies	7
11. November 3	Strategic Alliances and Outsourcing	9
12. November 10	Veterans Day Tuesday Design For Supply Chain Management	11
13. November 17	Smart Pricing	13
14. November 24	Global Logistics and Risk Management Thursday - Thanksgiving	10
15. December 1	Case Presentations

                        ** Subject to change