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Supply Chain and Logistics Management Made Easy: Methods and Applications for Planning, Operations, Integration, Control and Improvement, and Network Design

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Supply Chain and Logistics Management Made Easy: Methods and Applications for Planning, Operations, Integration, Control and Improvement, and Network Design


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The ideal new introduction to modern supply chain management for every manager, professional, and student

  • Practical, accessible, and up-to-date: designed from the ground up to maximize “takeaways” and support today’s best practices
  • Covers core concepts, planning, operations, integration, collaboration, network design, metrics, control, improvement, lean/agile, and much more
  • Explains why supply chains have become so important, and how their components can fit together in highly-efficient global networks
  • By world-renowned supply chain professional, consultant, and teacher Paul Myerson, Lean Supply Chain columnist for Inbound Logistics Magazine


  • Copyright 2015
  • Dimensions: 7" x 9-1/8"
  • Pages: 352
  • Edition: 1st
  • Book
  • ISBN-10: 0-13-399334-5
  • ISBN-13: 978-0-13-399334-9



  • This easy guide introduces the modern field of supply chain and logistics management, explains why it is central to business success, shows how its pieces fit together, and presents best practices you can use wherever you work.

    Myerson explains key concepts, tools, and applications in clear, simple language, with intuitive examples that make sense to any student or professional. He covers the entire field: from planning through operations, integration and collaboration through measurement, control, and improvement.

    You’ll find practical insights on hot-button issues ranging from sustainability to the lean-agile supply chain. Myerson concludes by helping you anticipate key emerging trends—so you can advance more quickly in your own career.

    Trillions of dollars are spent every year on supply chains and logistics. Supply chain management is one of the fastest growing areas of business, and salaries are rising alongside demand. Now, there’s an easy, practical introduction to the entire field: a source of reliable knowledge and best practices for students and professionals alike.

    Paul A. Myerson teaches you all you’ll need to start or move forward in your own supply chain career. Writing in plain English, he covers all the planning and management tasks needed to transform resources into finished products and services, and deliver them efficiently to customers.

    Using practical examples, Myerson reviews the integration, collaboration, and technology issues that are essential to success in today’s complex supply chains. You’ll learn how to measure your supply chain’s performance, make it more agile and sustainable, and focus it on what matters most: adding customer value.

      Improve procurement, transportation, warehousing, ordering, reverse logistics, and more
      Manage new risks as you improve sustainability
      Get supply chains right by getting collaboration right
      Discover “where the puck is headed”—so you can get there first

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    Introduction to Supply Chain and Logistics Management Made Easy: Methods and Applications for Planning, Operations, Integration, Control and Improvement, and Network Design

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    Table of Contents

    Part I: Supply Chain and Logistics Management: Overview 1

    Chapter 1: Introduction 3

    Supply Chain Defined 4

    SCOR Model 5

    An Integrated, Value-Added Supply Chain 7

    The Value Chain 7

    Leveraging the Supply Chain 8

    Supply Chain Strategy for a Competitive Advantage 9

    Segmenting the Supply Chain 10

    The Global Supply Chain and Technology 11

    Chapter 2: Understanding the Supply Chain 13

    Historical Perspective 13

    Value as a Utility 14

    Organizational and Supply Chain Strategy 15

    Mission Statement 15

    SWOT Analysis 16

    Strategic Choices 17

    Supply Chain Strategy Elements and Drivers 17

    Supply Chain Strategy Methodology 19

    Supply Chain Opportunities and Challenges 23

    Supply Chain Talent Pipeline 26

    Career Opportunities in Supply Chain and Logistics Management 27

    Growing Demand 27

    Part II: Planning for the Supply Chain 31

    Chapter 3: Demand Planning 33

    Forecasting Used to Be Strictly Like “Driving Ahead,

    Looking in the Rearview Mirror” 34

    Forecasting Realities 35

    Types of Forecasts 36

    Demand Drivers 36

    Forecasting Process Steps 37

    Quantitative Versus Qualitative Models 38

    Qualitative Models 38

    Quantitative Models 39

    Product Lifecycles and Forecasting 40

    Introduction 41

    Growth 41

    Maturity 41

    Decline 41

    Time Series Components 42

    Time Series Models 43

    Associative Models 44

    Correlation 45

    Seasonality 45

    Multiple Regression 46

    Forecasting Metrics 46

    Forecast Error Measurement 47

    Demand Forecasting Technology and Best Practices 48

    Chapter 4: Inventory Planning and Control 51

    Independent Versus Dependent Demand Inventory 51

    Types of Inventory 53

    Costs of Inventory 53

    Carrying or Holding Costs 54

    Ordering Costs 54

    Setup Costs 54

    Total Cost Minimized 55

    Economic Order Quantity Model 56

    Basic EOQ Calculation 57

    Reorder Point (ROP) Models 57

    Fixed-Quantity Model 57

    Fixed-Period Model 60

    Single-Period Model 61

    ABC Method of Inventory Planning and Control 61

    Realities of ABC Classification 62

    Other Uses for ABC Classification 63

    Inventory Control and Accuracy 63

    Cycle Counting 63

    Key Metrics 64

    Inventory Planning and Control Technology 65

    Software 65

    Hardware 67

    Careers 67

    Chapter 5: Aggregate Planning and Scheduling 69

    The Process Decision 70

    Goods and Service Processes 70

    Planning and Scheduling Process Overview 72

    Aggregate Planning 74

    S&OP Process 74

    Demand and Supply Options 76

    Aggregate Planning Strategies 78

    Master Production Schedule 78

    Production Strategies 79

    System Nervousness 80

    Material Requirements Planning 80

    Bill of Materials 80

    MRP Mechanics 81

    Short-Term Scheduling 83

    Types of Scheduling 84

    Sequencing 84

    Finite Capacity Scheduling 85

    Service Scheduling 85

    Technology 86

    Part III: Supply Chain Operations 87

    Chapter 6: Procurement in the Supply Chain 89

    Make or Buy 90

    Outsourcing 90

    Other Supply Chain Strategies 91

    The Procurement Process 93

    Identify and Review Requirements 93

    Establish Specifications 94

    Identify and Select Suppliers 95

    Determine the Right Price 97

    Issue Purchase Orders 98

    Follow Up to Ensure Correct Delivery 99

    Receive and Accept Goods 100

    Approve Invoice for Payment 100

    Key Metrics 100

    Technology 101

    Chapter 7: Transportation Systems 103

    Brief History of Transportation Systems in America 103

    Transportation Cost Structure and Modes 105

    Transportation Costs 105

    Modes 105

    Legal Types of Carriage 110

    For Hire 110

    Private 110

    Transportation Economics 111

    Transportation Cost Factors and Elements 111

    Rates Charged 114

    Effects of Deregulation on Pricing 115

    Pricing Specifics 115

    Documents 116

    Domestic Transportation Documents 116

    International Transportation Documents 119

    Key Metrics 122

    Technology 122

    Chapter 8: Warehouse Management and Operations 125

    Brief History of Warehousing in America 126

    Economic Needs for Warehousing 126

    Types of Warehouses 127

    Warehouses by Customer Classification 127

    Warehouses by Role in the Supply Chain 128

    Warehouses by Ownership Type 129

    Warehouse Economic Benefits 131

    Consolidation 132

    Accumulation, Mixing, and Sorting 133

    Postponement 134

    Allocation 134

    Market Presence 135

    Warehouse Design and Layout 135

    Size of Facility 135

    Facility Layout 137

    Warehouse Operations 140

    Packaging 141

    Key Metrics 142

    Customer-Facing Metrics 142

    Technology 143

    Warehouse Management Systems 143

    Yard Management Systems 145

    Chapter 9: Order Management and Customer Relationship Management. .147

    Order Management 148

    Order Placement 148

    Order Processing 148

    Order Preparation and Loading 149

    Order Delivery 150

    Customer Relationship Management 150

    Customer Service 150

    Customer Relationship Management 154

    Technology 155

    Chapter 10: Reverse Logistics and Sustainability 157

    Reverse Logistics Activities 157

    Repairs and Refurbishing 158

    Refilling 159

    Recall 159

    Remanufacturing 159

    Recycling and Waste Disposal 160

    Returns Vary by Industry 160

    Publishing Industry 160

    Computer Industry 160

    Automotive Industry 160

    Retail Industry 161

    Reverse Logistic Costs 161

    Reverse Logistics Process 161

    Receive 161

    Sort and Stage 161

    Process 162

    Analyze 162

    Support 162

    Reverse Logistics as a Strategy 162

    Using Reverse Logistics to Positively Impact Revenue 162

    Other Strategic Uses of Reverse Logistics 163

    Reverse Logistics System Design 164

    Product Location 164

    Product Collection System 164

    Recycling or Disposal Centers 165

    Documentation System 165

    Reverse Logistics Challenges 165

    Retailer-Manufacturer Conflict 165

    Problem Returns and Their Symptoms 166

    Cause and Effect 166

    Reactive Response 166

    Managing Reverse Logistics 166

    Gatekeeping 167

    Compacting the Distribution Cycle Time 168

    Reverse Logistics Information Technology Systems 168

    Centralized Return Centers 168

    Zero Returns 169

    Remanufacture and Refurbishment 169

    Asset Recovery 170

    Negotiation 170

    Financial Management 170

    Outsourcing 170

    Reverse Logistics and the Environment 170

    Supply Chain Sustainability 171

    Green Logistics 171

    Chapter 11: Global Supply Chain Operations and Risk Management 173

    Growth of Globalization 173

    Factors Influencing Globalization 174

    Reasons for a Company to Globalize 174

    Global Supply Chain Strategy Development 175

    International Transportation Methods 177

    Ocean 177

    Air 177

    Motor 178

    Rail 178

    Global Intermediaries 178

    Global Supply Chain Risks and Challenges 178

    Questions to Consider When Going Global 179

    Key Global Supply Chain Challenges 180

    Risk Management 181

    Potential Risk Identification and Impact 181

    Sources of Risk 182

    Supply Chain Disruptions 183

    Risk Mitigation 184

    Part IV: Supply Chain Integration and Collaboration 187

    Chapter 12: Supply Chain Partners 189

    Outsourcing 189

    Reasons to Outsource 190

    Steps in the Outsourcing Process 191

    Supply Chain and Logistics Outsourcing Partners 192

    Traditional Service Providers 192

    Third-Party Logistics Providers 193

    Fourth-Party Logistics Service Providers 196

    Chapter 13: Supply Chain Integration Through Collaborative Systems 199

    Internal and External Integration 200

    Internal Integration 200

    External Integration 201

    Supply Chain Collaboration Methods: A Closer Look 206

    Quick Response 206

    Efficient Consumer Response 207

    Collaborative Planning, Forecasting, and Replenishment 208

    Chapter 14: Supply Chain Technology 211

    Supply Chain Information 211

    Supply Chain Information Needs 213

    Supply Chain Software Market 214

    Supply Chain Planning 215

    Supply Chain Execution 215

    Other Supply Chain Technologies 216

    SCM System Costs and Options 217

    Best-in-Class Versus Single Integrated Solution 217

    Consultants 218

    Current and Future Trends in Supply Chain Software 218

    Short-Term Supply Chain Technology Trends 218

    Emerging Supply Chain Technology Trends 219

    Part V: Supply Chain and Logistics Network Design 223

    Chapter 15: Facility Location Decision 225

    The Importance of Facility Location When Designing a Supply Chain 225

    Supply Chain Network Design Influencers 226

    Types of Distribution Networks 228

    Manufacturer Storage with Direct Shipping 228

    Manufacturer Storage with Direct Shipping and In-Transit Merge 229

    Distributor Storage with Carrier Delivery 230

    Distributor Storage with Last-Mile Delivery 232

    Manufacturer or Distributor Storage with Customer Pickup 233

    Retailer Storage with Customer Pickup 234

    Impact of E-Business on the Distribution Network 235

    Location Decisions 237

    Strategic Considerations 237

    Location Decision Hierarchy 238

    Dominant Factors in Manufacturing 240

    Dominant Factors in Services 240

    Location Techniques 240

    Location Cost-Volume Analysis 240

    Weighted Factor Rating Method 242

    Center of Gravity Method 243

    The Transportation Problem Model 245

    Technology 246

    Careers 246

    Chapter 16: Facility Layout Decision 249

    Types of Layouts 249

    Product Layouts 250

    Process Layouts 250

    Hybrid Layouts 253

    Cellular (or Work Cell) Layouts 253

    Fixed-Position Layout 255

    Facility Design in Service Organizations 255

    Designing and Improving Product Layouts 256

    Assembly Line Design and Balancing 256

    Work Cell Staffing and Balancing 258

    Warehouse Design and Layout Principles 260

    Design and Layout Process 260

    Technology 261

    Careers 262

    Part VI: Supply Chain and Logistics Measurement, Control, and Improvement 263

    Chapter 17: Metrics and Measures 265

    Measurement and Control Methods 265

    The Evolution of Metrics 266

    Data Analytics 266

    Measurement Methods 267

    Measurement Categories 267

    Balanced Scorecard Approach 268

    Customer Service Metrics 269

    Operational Metrics 269

    Financial Metrics 270

    SCOR Model 270

    Supply Chain Dashboard and KPIs 273

    Indicators 274

    Benchmarking 274

    Chapter 18: Lean and Agile Supply Chain and Logistics 277

    Lean and Waste 277

    History of Lean 278

    Value-Added Versus Non-Value-Added Activities 279

    Waste 280

    Lean Culture and Teamwork 281

    Lean Teams 282

    Kaizen and Teams 283

    Team and Kaizen Objectives 283

    Value Stream Mapping 283

    VSM Benefits 286

    Lean Tools 286

    Standardized Work 288

    5S-Workplace Organization System 288

    Visual Controls 289

    Facility Layout 289

    Batch Size Reduction and Quick Changeover 289

    Quality at the Source 290

    Point-of-Use Storage 291

    Total Productive Maintenance 291

    Pull/Kanban and Work Cells 291

    Lean and Six Sigma 292

    Chapter 19: Outlook for Supply Chain and Logistics Management 293

    Supply Chain and Logistics Career Outlook 293

    Trends in Supply Chain and Logistics Management 294

    Supply Chain Trends 294

    Logistics Trends 295

    Supply Chain Leadership Trends 296

    Supply Chain Technology Trends 297

    Conclusion 299

    References 301

    Index 305


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