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

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

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  • Copyright 2015
  • Dimensions: 7" x 9-1/8"
  • Edition: 1st
  • eBook (Watermarked)
  • ISBN-10: 0-13-399427-9
  • ISBN-13: 978-0-13-399427-8



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

Sample Content

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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