Supply Management

Desired Scholastic
Culture
Values and Dress code
Late

coming

leaving
Class participation
Exams approach
Counseling hours

Early

Reference Text

Semester Plan
But since Most plans are just inaccurate predictions I
may back off!!
Week

Topic

5,6
7

Introduction
Purchasing process
Purchasing process + Demand
Planning + Forecasting
Policy and procedures , Integration
Purchasings Position within
Organization structure
Commodity strategy
Optimal Decision Making

8
9
10
11

Supplier evaluation and structure

Mid term
Supplier management
Inventory Models, Waiting Lines

12
13

Global sourcing
Transportation Decisions and Cost
Calculations
Negotiations
Project presentations
Project presentations
Final

2
3
4

14
15
16
17

Readings

Chapter 1, Chapter 2
Chapter 2
Chapter 3, Chapter 4
Chapter 5
Chapter 6
Case study /Articles/Excel
Solver
Chapter 7
Chapter 8, Chapter 9
Cases/Articles/Online
resources
Chapter 10
Cases/Articles/Online
resources
Chapter 13

Grading Scheme

Where are the SC Jobs?

Difference between Supply Chain

and Value Chain
A supply chain is a set of three or more organizations linked directly by one or
more of the upstream or downstream flows of products, services, finances, and
information from a source to a customer.
Michael Porter, who first articulated the value chain concept in the 1980s,
argues that a firms value chain is composed of primary and support activities
that can lead to competitive advantage when configured properly.

Value chain is a systematic

approach to examine the
development of competitive
advantage and it consists of a
series of activities that create
and build value

The supply Chain key areas of

concerns are forecasting,
purchasing, production planning,
warehousing and distribution; In
addition, manufacturing of the
product and its distribution

A Cereal
Manufacturer
s Supply
Chain

Supply Management in the Chain

Supply Management Process

The process of obtaining and managing of products or services
needed to operate a business.
Elements: Actual Products, Information, Budgets, Employees etc
Aim/Objective: keep costs low/stable and use resources effectively to increase the
profits and efficiency of the business or organization.

Customer Production
Demand Schedule

Supply
Mgmt

Production Shipping

Customer
Service

Issue
Follow-Up Receive & Process
Select
Assess
Establish
Identify
Purchase
Payment
& Expedite Verify
SpecificationsSuppliers Supplier(s)
Requirements
Order

Maintain
Records

Supply Management
Strategic approach to planning for and acquiring the organizations
current and future needs through effectively managing the supply
base, utilizing a process orientation in conjunction with crossfunctional teams (CFTs) to achieve the organizational mission.

Key Issues

Overcoming functional silos with conflicting goals

Purchasing

Low purchase
price
Multiple
vendors

SOURCE

Manufacturing

Few
changeovers
Stable
schedules
Long run
lengths
MAKE

Distribution

Low
inventories
Low
transportation
DELIVER

Customer Service/
Sales
High
inventori
es
High
service
levels
Regional
stocks
SELL