LOGISTICS and SUPPLY
CHAIN MANAGEMENT
70-471 Spring 2001 (Tu-Th, 1.30-2.50pm, Room: PH226A)
Prof. Itir Z. Karaesmen
Syllabus: Instructor Information,
Teaching
Assistant Information,
Course Description,
Prerequisites,
Textbook,
Course Methods and Materials,
Requirements
and Grading, Course Outline,
Assignments
Message Board
Last Update: 1/25/01
Instructor Information
Instructor: Itir Z. Karaesmen
Office: 360 Posner Hall
Office Hours: Tu 3-5pm, or by appointment
Phone: (412) 268-8833
E-Mail: itir@andrew.cmu.edu
Web Page: http:/www.andrew.cmu.edu/user/itir
Teaching Assistant Information
Teaching Assistants:
Mr. Nihat
Altintas (nihat@andrew.cmu.edu)
Mr. Koji
Inoue (kinoue@andrew.cmu.edu)
Office Hours: By appointment
Course Description
This is a course on logistics and supply chain management, which is an
integrated approach to the management of all activities involved
in physically moving raw material, in-process inventory and finished goods,
from point(s) of origin (supply) to point(s) of consumption. The activities
to be managed may include - but are not limited to – transportation and
distribution, inventory maintenance, purchasing, and material handling.
This course will provide a survey on strategic planning, demand management
and forecasting, facilities location selection, transportation decisions,
distribution systems, inventory control and role of information in
business logistics. It will introduce the students to quantitative models
and techniques that aid decision-making in supply chain management and
logistics problems.
The course has the following objectives: (1) to understand the role
of logistics and supply chain management in a business, (2) to understand
the individual components of logistics and their interrelationship within
individual companies, (3) to develop your skills in solving specific logistics
and supply chain problems, and (5) to make you familiar with some of the
emerging directions in business logistics and supply chain management.
Prerequisites
The Production and Operations Management (70-371) is a prerequisite for
this course. I also suggest - but not require - Probability and Statistics
for Business (70-207) and Operations Research I (21-292) (or Models &
Methods of Optimization 21-257) for you to be more comfortable with the
quantitative models and techniques to be covered in class.
Textbook
There is a required textbook for the course:
"Business Logistics Management" by R.H. Ballou, Prentice Hall,
4th edition, 1999.
There are a number of books related to Logistics and Supply Chain Management
on reserve for this course in the Library.
Course Methods and Materials
The course involves a mixture of lectures and case discussions. The workload
consists of homework assignments, a final group project, a midterm exam
and a final exam.
Requirements and Grading
Your grade in the course will be based on both your individual
and group efforts and performance. The weight on various activities will
be as follows:
Homework + Case + Game Assignments
Homework assignments should be done individually. Collaboration between
students for the homework assignments is not permitted. You may discuss
homework problems with the instructor and the teaching assistant.
Case studies should be done by groups of 3-4 students. Case write-ups should
begin with a brief summary of the case background, and should clearly state
the problem to be addressed, followed with your analysis and conclusions/recommendations.
The beer game will be played in groups of 4-5 people. There will be
one group assignment on the beer game.
Group Project
The intention of the course project is to allow you to apply or to expand
on the ideas you learn in class to an area of special interest to you.
You can choose a logistics problem based on your experience, or work on
a problem that you think will become important in the future, or do a research
on best practices, “emerging” problems, or strategies related to
logistics and supply chain management. You can focus on only one company,
or an industry, or on implementation of a strategy in different companies
or (industries). If your project involves “solving” a problem, actual or
reported data is preferred (especially if you choose to do case study on
a company). However, if such data is not available, reasonable scenario
analysis is acceptable. If your research involves research but no problem
solving, then try to get as much up-to-date information as possible by
searching books, articles, and web-sites. You are to do this project
in groups of no more than 4 students.
Your work on the final project will be submitted in three parts: a project
proposal, a final presentation and a final report. I strongly encourage
each group to come and have an informal meetings with me during the semester.
This will give me the opportunity to guide your work and give you timely
feedback for a high quality output. However, these meetings are optional.
The tentative date for the project presentations are April 24 (Tuesday)
and April 26 (Thursday). The project report is due May 1, 2001 (Tuesday).
Midterm Examination
The midterm exam is on March 1, 2001 (Tuesday), during the class time.
It will be in class, closed-book, closed-notes. One page of cheat
sheet allowed.
Final Exam
The date, time and location of the final exam will be announced later.
It will be in class, closed-book, closed-notes. One page of cheat
sheet allowed.
Course
Outline
Class 1 (1/16- Tu): Introduction
and course administration. What is business logistics management?
Download: Lecture
1
Class 2 (1/18-Th):
Role of business logistics for companies and in the economy.
Download: Lecture
2
Class 3 (1/23-Tu):
Logistics strategy and customer service issues.
Download:
Lecture 3
Class 4 (1/25-Th):
POM review.
Download: Lecture
4
Class 5 (1/30-Tu):
Customer service.
Download: Lecture
5
Class 6 (2/1-Th): Transport
fundamentals. Transport services.
Download: Lecture
6
Class 7 (2/6-Tu): Network
models, distribution and assignment problems.
Download: Lecture
7
Class 8 (2/8-Th): Introduction
to routing.
Download: Lecture
8
Class 9 (2/13-Tu):
Heuristics for vehicle routing.
Download: Lecture
9
Class 10 (2/15-Th):
Inventory models.
Download: Lecture
10
Class 11 (2/20-Tu): Inventory
models.
Download: Lecture
11
Class 12 (2/22-Th):
Total cost of logistics, inventory and transport costs combined.
Download: Lecture
12
Class 13 (2/27-Tu):
Mid-term review.
Download: Lecture
13
Class 14 (3/1-Th):
MIDTERM EXAMINATION. (closed book, closed notes, one page of cheat sheet
allowed)
Download: Lecture 14 (Midterm)
Class 15 (3/6-Tu):
Midterm solution. Forecasting.
Download: Lecture
15
Download: Midterm
solution
No Class on 3/8 (Th): MID-SEMESTER BREAK
Class 16 (3/13-Tu): Forecasting.
Download: Lecture
16
Class 17 (3/15-Th):
Forecasting.
Download: Lecture
17
Class 18 (3/20-Tu):
Facility location.
Download: Lecture
18
Class 19 (3/22-Th): Facility
location.
Download: Lecture
19
No Class on 3/27 (Tu) and 3/29 (Th): SPRING
BREAK
Class 20 (4/3-Tu):
Third Party Providers, logistics alliances.
Download: Lecture
20
Class 21 (4/5-Th):
Logistics and supply chain strategy.
Download: Lecture
21
Class 22 (4/10-Tu):
Beer Game.
Download: Lecture
22
Class 23 (4/12-Th):
Beer Game.
Download: Lecture
23
Class 24 (4/17-Tu):
Role of information.
Download: Lecture
24
Class 25 (4/19-Th):
New directions in supply chains.
Download: Lecture
25
Class 26 (4/24-Tu): Project
presentations.
Download: no lecture notes
Class 27 (4/26-Th):
Project presentations.
Download: no lecture notes
Class 28 (5/1-Tu):
Course wrap-up.
Download:
Lecture 28
Class 29 (4/24-Tu): Last
lecture, course wrap-up. review for the final exam.
Download: Lecture
29
Assignments
HW#1 (due February 1, 2001):This
is NOT a group assignment. Please do not discuss the material with your
friends.
Answer the following questions: Questions 1,
4.b, 7.a, 12 (Chapter 1, pages 25-26 of the textbook), questions
6 and 7 (Chapter 2, page 48 of the textbook).
HW#2 (due February 8, 2001): This
is NOT a group assignment. Please do not discuss the material with your
friends.
1. Answer the following questions: 13 (Chp.2),
11 (Chp.3), 13 (Chp.3), 5 (Chp.4), 7 (Chp.4).
2. Read the article
on Bennetton. Analyze Benetton's logistics and supply chain system,
using the "guidelines for logistics stragety" we discussed in Lecture
3. How does Benetton use these factors to improve its supply
chain performance?
3. Read the articles #6 and #7
on supply chain management. What are the seven pricinples of supply
chain management?
How does HP use these principles to improve its
supply chain performance?
Additional Reading
-
"Emerging
Technologies in Logistics: Selected Results from the 1999 Survey of Career
Patterns in Logistics"
-
"E-Commerce:
Its Impact on Transportation, Logistics, and Supply Chain Management "
-
"Internet
Fulfillment: The Next Supply Chain Frontier"
-
"The
Internet-Enabled Supply Chain: From the First Click to the Last
Mile"
-
"Global
Logistics Benetton Style" (click here
for .pdf version)
-
"Effective
Supply Chain Management" (click here
for .pdf version)
-
"The
Seven Principles of Supply Chain Management"
Links to Logistics Related Web Sites
Organizations
ASTL
- The American
Society of Transportation and Logistics
CALM
- Canadian Association
of Logistics Management
CLM-
Council
of Logistics Management
Council
on Competitiveness
IANA
- Intermodal
Association of North America
IWLA
- International
Warehouse Logistics Association
The
Material Handling Institute
The
International Society of Logistics
U.S.
Department of Transportation
WERC
- Warehousing Education
and Research Council
Logistics Related Businesses and Practices
FinListics®
Solutions, Inc.
The
Progress Group
Other Web Sites
ASCET
- Achieving Supply
Chain Excellence Through Technology
Educational
Resource links at ASCET
Benchnet:
The Benchmarking Exchange
ITS
Online
International
Society for Performance Improvement
Logistics
World
The
Logistics Network
The
Outsourcing Institute
Virtual
Logistics Directory
Yahoo
News - Transportation Industry