Supply Chain Management Strategy, Planning, and Operation

For MBA, engineering master, or senior-level undergraduate courses in supply chain management.

A strategic framework for understanding supply chain management

Supply Chain Management  introduces high-level strategy and concepts while giving readers the practical tools necessary to solve supply chain problems. Using a strategic framework, readers are guided through all of the key drivers of supply chain performance, including facilities, inventory, transportation, information, sourcing, and pricing. The 7th Edition weaves in compelling case study examples to illustrate how good supply chain management offers a competitive advantage and how poor supply chain management can damage an organization’s performance. With this text, readers gain a deeper understanding of supply chains and a firm grasp on the practical managerial levers that can improve supply chain performance.

Sunil Chopra is the IBM Distinguished Professor of Operations Management and Information Systems at the Kellogg School of Management. He has served as the interim dean and senior associate dean for curriculum and teaching, and the co-director of the MMM program, a joint dual-degree program between the Kellogg School of Management and the McCormick School of Engineering at Northwestern University. He has a PhD in operations research from SUNY at Stony Brook. Prior to joining Kellogg, he taught at New York University and spent a year at IBM Research.

Professor Chopra’s research and teaching interests are in supply chain and logistics management, operations management, combinatorial optimization, and the design of telecommunication networks. He has won several teaching awards at the MBA and Executive programs of Kellogg. He has authored more than 50 papers and two books.

Chopra has been a department editor for Management Science and an associate editor for Manufacturing & Service Operations Management, Operations Research, and Decision Sciences Journal. He has also consulted for several firms in the area of supply chain and operations management.

PART I: BUILDING A STRATEGIC FRAMEWORK TO ANALYZE SUPPLY CHAINS

1. Understanding the Supply Chain

2.   Supply Chain Performance: Achieving Strategic Fit and Scope

3.   Supply Chain Drivers and Metrics

PART II: DESIGNING THE SUPPLY CHAIN NETWORK

4.   Designing Distribution Networks and Applications to Online Sales

5.   Network Design in the Supply Chain

6.   Designing Global Supply Chain Networks

PART III: PLANNING AND COORDINATING DEMAND AND SUPPLY IN A SUPPLY CHAIN

7.   Demand Forecasting in a Supply Chain

8.   Aggregate Planning in a Supply Chain

9.   Sales and Operations Planning in a Supply Chain

10.   Coordination in a Supply Chain

PART IV: PLANNING AND MANAGING INVENTORIES IN A SUPPLY CHAIN

11.   Managing Economies of Scale in a Supply Chain: Cycle Inventory

12.   Managing Uncertainty in a Supply Chain: Safety Inventory

        Appendix 12A: The Normal

        Appendix 12B: The Normal Distribution in Excel 

        Appendix 12C: Expected Shortage per Replenishment Cycle 

        Appendix 12D: Evaluating Safety Inventory for Slow-Moving Items 

13.   Linking Product Availability to Profits

        Appendix 13A: Optimal Level of Product Availability 

        Appendix 13B: An Intermediate Evaluation 

        Appendix 13C: Expected Profit from an Order 

        Appendix 13D: Expected Overstock from an Order 

        Appendix 13E: Expected Understock from an Order 

        Appendix 13F: Simulation Using Spreadsheets

PART V: DESIGNING AND PLANNING TRANSPORTATION NETWORKS

14.   Transportation in a Supply Chain

PART VI: MANAGING CROSS FUNCTIONAL DRIVERS IN A SUPPLY CHAIN

17.   Sustainability and the Supply Chain 

PART VII: ONLINE CHAPTER

A. Information Technology in a Supply Chain