MBA559 Issues in Supply Chain Management Fall 2012 Sec. 001 MW 5:30-6:45pm MBEB 4001 Instructor: Phil Fry
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1 MBA559 Issues in Fall 2012 Sec. 001 MW 5:30-6:45pm MBEB 4001 Instructor: Phil Fry Office Hours: MW 4:30 5:30 and by Phone: appointment. Office: MBEB 3249 Prerequisites: Admission to the MBA program, or admission to MSA program and permission of instructor. Course Overview: Matching supply with demand is an enormous challenge for both service and manufacturing firms. This course will examine ways that a company s supply chain can help organizations more closely match supply with demand so that customer service can be maximized, costs can be controlled, and profits can be increased. By discussing how to evaluate business processes, how to measure key process parameters, and how to implement process improvement strategies throughout the supply chain, students will gain both the tactical and high-level knowledge needed to assess and improve business operations Textbooks: Cachon, G. P. & Terwiesch, C. Matching supply with demand: An introduction to operations management. 3 rd edition. New York, NY. McGraw Hill Irwin, MBA Program Objectives Met In This Course Build student skills in the discipline-specific areas of: Accounting Economics Financial Analysis Global Issues Human Resource Information Technology Legal Issues Marketing Organizational Design Strategy Formulation Enhance student intellectual development in: Corporate Social Responsibility Critical Thinking Ethics Innovation and Creativity Structured Problem Determination and Solving Unstructured Problem Determination and Solving
2 Quantitative Literacy Strengthen student interpersonal skills in: Change Communication - Oral Communication - Written Conflict Resolution Leadership Negotiation Sensitivity to Individual and Cultural Differences Team Specific Course Objectives: This class supports the following MBA program objectives: (1) build student skills in the business discipline-specific area of supply chain management & operations; (2) enhance student intellectual development in critical thinking and problem solving (structured and unstructured) and quantitative literacy; and (3) strengthen student in team management and written communication. The following outcomes will be evaluated using the criteria listed: MBA Objective Learning Objective Assessment & & & Supply Chain & Critical Thinking, Structured and Measuring process performance. Relationship among inventory, throughput rate and flow time. Applying Little s Law to process analysis. Developing process flow diagrams. Bottleneck analysis. Improving capacity using line balancing. Developing & applying inventory models. Understanding the effects of variability on process performance. Understanding the basic principles of the Toyota Product System Causes, consequences, and mitigating strategies for the bullwhip effect. Critical Thinking & Problem Solving Problem Sets, Cases & Examination. Problem Sets, Cases, & Examination. Problem Sets, Cases, & Examination. Problem Sets & Examination. Problem Set & Examination. Examination Examination. Model building. Problem Sets.
3 Unstructured Problem Determination and Solving Written communication and Team Teamwork & Written Communication Cases Assessment Plan (connection between course objectives and grade determinants) Course objective Measuring process performance. Relationship among inventory, throughput rate and flow time. Applying Little s Law to process analysis. Developing process flow diagrams. Bottleneck analysis. Improving process flows. Improving capacity using line balancing. Developing & applying inventory models for decision making.. Role of market segmentation and pricing to improve revenue. Understanding the effects of variability on process performance. Managing variability. Understanding the basic principles of the Toyota Production System Causes, consequences, and mitigating strategies for the bullwhip effect Critical Thinking & Problem Solving Teamwork & Written Communication Problem Sets Cases Examinations Model Building Grading: The following grading scale will be used to determine your semester grade: Break Points Final Grade Semester Points Final Grade 502 A 415 C+ 478 A- 394 C 467 B+ 364 C-
4 448 B 318 D 424 B- Less than 318 F Course Schedule * : This is a tentative course schedule. Changes may be necessary to accommodate the needs of the class. Please check the Blackboard site frequently for updates and modifications. Class Topic Learning Readings & Introduction & Overview. August 29 th The Process View of the Organization. Evaluating Process Capacity. Monday, August 27th Objectives Measures of Process Performance: Inventory, Throughput Rate, Flow Time. Little s Law. Inventory Turns & Costs. 3 rd Labor Day Holiday No Class September 5 th Process Flow Analysis. Discussion of Kristen s Cookie Co. (A) Case. 10 th Improving Process Capacity. Drawing a Process Flow Diagram. Bottleneck Analysis & Process Capacity. Increasing Capacity by Line Balancing. Assignments Chapter 1 Chapter 2 Case: Kristen s Cookie Co. (A) Problems: 2.4 & 2.5. Chapter 3. Chapter 4 Problems: 4.4 & 4.5 September 12 th Estimating & Reducing Labor Costs 17 th Basic Inventory Models Computing the Cost of Direct Labor The Economic Order Quantity Model Case: Executive Shirt Company, Inc. Chapter 6 September 19 th Basic Inventory Models 24 th Catch up & Review Effect of Setups on Capacity. Effects of Joint Replenishment on Order Sizes & Costs. Harley Davidson Problem Set Case: National Cranberry Cooperative.
5 September 26 th Monday, October 1 st Dealing with Uncertain Demand The Newsvendor Model Examination I Developing a Demand Distribution Using Forecast Errors Case: L.L. Bean, Inc. Problem: 11.6 October 3 rd The Newsvendor Model Monday, October 8 th The Newsvendor Model October 10 th Quick Response with Reactive Capacity Quick Response with Reactive Capacity October 17 th Quick Response Wrap up. The Order-up-to Inventory Model Monday, October 15 th Monday, October 22 nd The Order-up-to- Inventory Model October 24 th The Order-up-to- Inventory Model & Risk-Pooling Strategies Marginal Analysis. Calculating Expected Profit Maximizing Order Quantity Performance Measures & Model Building How to Calculate & Minimize the Newsvendor Mismatch Costs. Reactive Capacity Strategies. Model Building Developing the Order-up-to Inventory Model Calculating Performance Measures. Model Building. Determine the Effects of Location Pooling, Product Pooling & Delayed Differentiation on Inventory. Chapter 12 Problem Case: Sport Obermeyer, Ltd. Chapter 12 Chapter 13 Case: Hewlett- Packard Company: Deskjet Printer (A) & (B) Problem: 13.8 Chapter 13 Chapter 14 Problem 14.7 Monday, 29 th Review Chapters 11-13& Continue Chapter 14 October 31st Monday, November 5 th Risk-Pooling Strategies (continued) Examination II Chapters 11, 12, & 13 Margin Arithmetic. Understanding Protection Levels & Booking Limits. Calculating the Optimal Quantity to Chapter 15 Problem: 15.6
6 November 7 th Overbook Allocating Capacity to a Market Segment Under Uncertainty Chapter 15. Problem Set: Assigned Monday, November 12 th November 14 th Pricing to Multiple Segments Implementation of Chapter 15 Chapter 15 November 19 th November 21 st Monday, November 26 th Variability & Process Performance November 28 th Variability & Process Performance Monday, December Variability & 3 rd Process Performance December 5 th Lean & the TPS Monday, December 10 th Lean & TPS December 12 th December 17 th -20 th Coordination. Barilla Case Discussion. Thanksgiving Holiday How to Model & Measure the Effects of Variability on Process Performance Understanding Service Levels & Economic Implications Chapter 7 Problems: 7.2 & 7.5 Chapter 7 Review Chapter 7 Understanding the TPS Framework, Identifying Sources of Waste. Discussion: Toyota Motor Manufacturing Explain Causes & Consequences of the Bullwhip Effect Comprehensive Final Examination Chapter 10 Case: Toyota Motor Manufacturing Barilla SpA(A) * This is a tentative schedule. The instructor reserves the right to make changes when necessary to improve the structure and flow of the course. Please check Blackboard regularly for updates and modifications.
7 Assignment Due Dates (tentative): Assignment Due Date Value Problems 2.4 & 2.5 September 5 th 20 Problem 4.4 & 4.5 September 10 th 20 Case: Executive Shirt Co., Inc. September 19 th In-Class Discussion Harley Davidson Problem Set September 26 th 20 Examination I September 26 th 60 Case: National Cranberry October 1 st 30 Cooperative Problem 11.6 October 3 rd 20 Case: L.L. Bean October 10 th 30 Problems 12.7 & 12.8 October 15 th 20 Case: Sports Obermeyer October 22 nd 30 Problem 13.8 October 19 th 20 Problem 14.7 October 29 th 20 Examination II October 31 st 60 Case: Hewlett-Packard November 12 th 30 Company: Deskjet Printer (A) & (B) Problem 15.6 November 14 th 20 Problem Set: November 28 th 20 Problems 7.2 & 7.5 November 30 th 20 Final Examination December 17 th 100 Other cases may be assigned for in-class discussion.
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