1st Edition

Basics of Supply Chain Management

By Jayanta Kumar Bandyopadhyay Copyright 2016
    384 Pages 4 B/W Illustrations
    by CRC Press

    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.

    Introduction
    Introduction
    Elements of Supply Chain
    Operating Environment of Supply Chain
    Manufacturing Planning and Control System
    Planning Hierarchy in a Manufacturing Planning and Control System
    Capacity Management
    Computerized Manufacturing Resource Planning System
    Enterprise Resource Planning Systems
    Distribution Planning Systems
    Basic Production Planning Strategies

    Transformation of Demand into Supply: Designing Products to Meet Customer Expectations
    Introduction
    Designing Products to Meet Customer Needs and Expectations
    Product Design Determines Product Quality
    Total Quality Management and Product Design
    Quality Function Deployment and Product Design
    Taguchi’s Methodology for Product Design
    Product Design Strategies
    Distinctive Competence and Product Design
    Order-Winning Criteria and Order Qualifiers and Product Design

    Transformation Process Choices for Making Products Conforming to Product Design Specifications and Tolerances
    Introduction
    Traditional Manufacturing Process Choices
    Just-in-Time Manufacturing
    Objectives of the JIT Approach to Manufacturing
    The Key Elements of the JIT Concept
    Principles of JIT Manufacturing
    Manufacturing Process Design for JIT Production
    Characteristics of a JIT Environment
    Supplier Relations in JIT Environment
    Employee Involvement and Empowerment in JIT Environment
    Effects of JIT on Manufacturing Planning and Control System
    Effects of JIT on Production Planning
    Effects of JIT on Master Production Scheduling
    Effects of JIT on Material Requirements Planning
    Effects of JIT on Capacity Management
    Effects of JIT on Inventory Management
    Effects of JIT on Organization Design
    Effects of JIT on Job Design
    Total Quality Management and JIT
    Benchmarking
    Taguchi’s Methodology for Quality Product Design
    Mistake Proofing and Automatic On-Line Inspection
    Statistical Concepts for Quality Management
    Statistical Quality Control Charts
    Process Capability Analysis

    Demand Forecasting and Demand Management
    Introduction
    Understanding Target Customers
    Demand Management
    Demand Forecasting
    Principles of Forecasting Demand
    Collection and Preparation of Data for Forecasting
    Forecasting Methods
    Some Quantitative Forecasting Techniques for Forecasting Short-Range Demand
    Forecasting Seasonal Demand
    Forecasting Long-Range Trend
    Tracking the Forecast for Error

    Master Planning
    Introduction
    Manufacturing Planning and Control System
    Priority and Capacity
    Planning Hierarchy
    Computerized Manufacturing Planning and Control System
    Production Planning Strategies
    Basic Production Planning Strategies
    Developing a Production Plan
    Resource Requirements Planning

    Master Production Scheduling
    Introduction
    Master Production Schedule
    Preparing a Master Production Schedule
    Master Scheduling Decisions
    MPS and Delivery Promises
    Planning Horizon for an MPS
    Time Fences
    Summary and Conclusion

    Material Requirements Planning
    Introduction
    Material Requirements Planning
    Objectives of MRP
    MRP System
    Inputs to the MRP System
    Capacity Planning
    Available Capacity
    Work Center Utilization Rate
    Work Center Efficiency
    Work Center Rated Capacity
    Work Center Demonstrated Capacity
    Work Center Required Capacity
    Inputs to Capacity Requirements Planning
    Shop Calendar
    Scheduling Orders
    Load Profile
    Production and Purchasing Activity Control
    Planning Activities
    PAC in Different Types of Manufacturing Systems
    Data Requirements for Processing PAC
    Order Preparation
    Scheduling
    Manufacturing Lead Time
    Scheduling Techniques

    Inventory Management
    Introduction
    Aggregate Inventory Management
    Physical Classification of Inventory
    Supply and Demand Patterns of Inventory
    Functions of Inventories in Batch Production Systems
    Objectives of Inventory Management
    Inventory Costs
    ABC Inventory Control
    Inventory Ordering System Models
    Basic Economic Order Quantity Model

    Purchasing Management
    Introduction
    Purchasing Management
    Purchasing Cycle
    Developing Specification
    Selecting Suppliers
    Supplier Development
    Supplier Relationship Management

    Physical Distribution Management
    Introduction
    Physical Supply Management
    Physical Distribution Management
    An Integrated Physical Distribution System
    Modes of Transportation
    Types of Carriers
    Concept of Total System Cost
    Example Problems

    Distribution Inventory Management
    Introduction
    Distribution Inventories
    Distribution Inventory Management Systems
    Warehousing
    Material Handling in a Warehouse
    Multi-warehouse System
    Cost Characteristics in Multi-warehouse System
    Total Cost Curve of a Multi-warehouse System

    Global and Other Issues in SCM
    Introduction
    Total Quality Management in the Global Supply Chain
    Respecting Human Resources and Human Rights in the Global Supply Chain
    Suppliers Relationship Management in the Global Supply Chain
    Customer Relationship Management in the Global Supply Chain

    Appendix A: Cases in Supply Chain Management

    Appendix B: Self-Study Practice Questions for Basic Supply Chain Management

    Biography

    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.

    This title, authored by a well-qualified academic, provides a top-level view of the elements of supply chain management. Manufacturing supply and demand management is explored via the presentation of a number of qualitative and quantitative forecasting techniques, including averages, smoothing, seasonal demand, and regression analysis. Master planning at the departmental level begins with the business plan and includes production plans, master production schedules, material requirements plans, and capacity requirement plans, to name a few processes discussed...Top level strategic planning is briefly addressed in the final chapter, which explores global total quality management and customer satisfaction. Attributes of the work are definitions, examples, chapter discussion questions, and 19 cases written to appeal to an entry-level audience....

    L. C. Gordon, University of La Verne, USA