KnoWerX Education (India) Private Limited

APICS 2013 CSCP List of Primary References and Additional Aids

Certified Supply Chain Professional (CSCP)

Primary Alternate reference edition Primary reference title sequence number number 1 1 APICS Certified Supply Chain Professional (CSCP) Learning System APICS Dictionary Supply Chain Logistics Management Supply Chain Logistics Management Principles of Supply Chain Management Principles of Supply Chain Management Introduction to Supply Chain Management Technologies Designing and Managing the Supply Chain Designing and Managing the Supply Chain United Nations Global Compact: Corporate Sustainability in the World Economy Editor: John H. Blackstone Jr., Ph.D., CFPIM, Jonah's Jonah Donald J. Bowersox, David J. Closs, M. Bixby Cooper and John C. Bowersox Donald J. Bowersox, David J. Closs, M. Bixby Cooper and John C. Bowersox Richard E. Crandall, William R. Crandall and Charlie C. Chen Richard E. Crandall, William R. Crandall and Charlie C. Chen David Frederick Ross, CFPIM David Simchi-Levi, Philip Kaminsky and Edith SimchiLevi David Simchi-Levi, Philip Kaminsky and Edith SimchiLevi APICS NonMember Estimated member price delivery price (US$)++ time (US$)++ $1,275 $945 Imported, 1 to 2 weeks Imported, 1 to 2 weeks Imported, 1 to 2 weeks `4,690 Imported, 1 to 2 weeks `730 Imported, 1 to 2 weeks Imported, 1 to 2 weeks `650 `610 `610 Up to 1 week `690 `690 Up to 1 week `4,410 `4,410 Up to 1 week KnoWerX Corporate credit price (`)## `74,590 Nonmember price (`)## `70,110 Estimated Member delivery price (`)## time Imported, `63,100 1 to 2 weeks Reprinted, `2,420 up to 1 week

Module name

Author(s)

Edition

Edition Binding type

Publisher

Year ISBN-13

Pages

Table of Contents

Comments

Stock number No stock number 01102-2011

2013 US

Paperback APICS

2013

1484 LS_1

13 US

Paperback APICS

2011 9780615394411

164

$50

$30

`2,710

`2,550

1 3 2

4 US

Hardcover McGraw-Hill

2012 9780078024054

496 SCLM_1

03998-V4

$183

$174

Internat Paperback McGraw-Hill ional Hardcover CRC Press Taylor & Paperback Francis/BSP Books Hardcover CRC Press

2012 9780071326216

544

1 4 2

1 US

2010 9781420091076

645 PSCM_1

03903

$84

$76

1 Indian

2010 9781420091076

595

2 US

2010 9781439837528

424 ISCMT_1

03925-V2

$72

$65

`5,970

`5,610

Imported, `5,610 2 to 6 weeks

1 6 Certified Supply Chain Professional (CSCP) 7 2

3 US

Hardcover McGraw-Hill

2008 9780073341521

544

03819

$143

$136

3 Indian

Paperback

Tata McGraw2008 9780070666986 Hill UN Global Compact Office

560 DMSC_1 http://www.unglob alcompact.org/do 6 cs/news_events/8 .1/GC_brochure_ FINAL.pdf http://www.unglob alcompact.org/do cs/news_events/9 .1_news_archives 32 /2010_06_17/UN_ Global_Compact_ Management_Mo del.pdf https://www.globa lreporting.org/reso urcelibrary/G3.156 SustainabilityReportingGuidelines.pdf https://www.globa lreporting.org/reso 2 urcelibrary/G3.1Quick-ReferenceSheet.pdf http://www.apics. org/cscp

Downlo 2011 adable PDF

2011

UN Global Compact Deloitte Touche Tohmatsu Management Model: Framework for Implementation

Downlo 2010 adable PDF

UN Global Compact Office

2010

GRI Sustainability Reporting Guidelines G3.1

Downlo G3.1 adable PDF

Global Reporting Initiative

2011

10

GRI Sustainability Reporting Guidelines G3.1 Reference Sheet

Downlo G3.1 adable PDF

Global Reporting Initiative

2011

11

Additional reference materials

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Module name Certified Supply Chain Professional (CSCP)

Additional Alternate aid edition Additional aid title sequence number number APICS CSCP Exam Content Manual

Author(s)

Edition

Edition Binding type

Publisher

Year ISBN-13

Pages

Table of Contents

Comments

Stock number

APICS NonMember Estimated member price delivery price (US$)++ time (US$)++ $25 $25 Imported, 1 to 2 weeks

KnoWerX Corporate credit price (`)## Nonmember price (`)## Estimated Member delivery price (`)## time Reprinted, `2,090 up to 1 week

CSCP Subcommittee

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Paperback APICS

2013

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09031-2013

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`2,200

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Page 1 of 25

APICS CSCP Exam Content Manual

CSCP Subcommittee - 2013 Stock #09031-2013 Table of Contents Letter to Candidates Introduction About the APICS CSCP Examination
Question Format Taking the Test Interpreting Test Scores

1 2 2
2 3 3

Studying for the APICS CSCP Exam

APICS CSCP References Terminology Additional Resources for APICS CSCP Candidates APICS CSCP Learning System APICS CSCP Instructor-Led Review Courses APICS Educational Programs APICS Certified in Production and Inventory Management (CPIM) Basics of Supply Chain Management (BSCM) Review Course and Examination

3
3 4 4 4 4 4 5

APICS CSCP Certification Maintenance: Continuing Professional Development

The Importance of Certification Maintenance

5
5

APICS Code of Ethics APICS Certified Supply Chain Professional (CSCP)

Scope of the Subject Matter APICS CSCP Content Content Outline Key Terminology Supplemental Glossary Bibliography

5 6
6 6 7 12 14 15

Sample Questions Answers to Sample Questions

17 19

Page 2 of 26

Designing and Managing the Supply Chain

David Simchi-Levi, Philip Kaminsky, Edith Simchi-Levi and Ravi Shankar ISBN: 9780070666986 Table of Contents About the Authors Foreword Preface Acknowledgments List of Cases
CHAPTER 1 INTRODUCTION TO SUPPLY CHAIN MANAGEMENT
1.1 What Is Supply Chain Management? 1.2 The Development Chain 1.3 Global Optimization 1.4 Managing Uncertainty and Risk 1.5 The Evolution of Supply Chain Management 1.6 The Complexity 1.7 Key Issues in Supply Chain Management 1.8 Book Objectives and Overview Discussion Questions CASE: MEDITECH SURGICAL

vii viii ix xv xvii

1
1 3 4 5 7 11 12 16 18 18

CHAPTER 2

INVENTORY MANAGEMENT AND RISK POOLING

CASE: STEEL WORKS, INC. 2.1 Introduction 2.2 Single Stage Inventory Control 2.2.1 The Economic Lot Size Model 2.2.2 The Effect of Demand Uncertainty 2.2.3 Single Period Models 2.2.4 Initial Inventory 2.2.5 Multiple Order Opportunities 2.2.6 Continuous Review Policy 2.2.7 Variable Lead Times 2.2.8 Periodic Review Policy 2.2.9 Service Level Optimization 2.3 Risk Pooling CASE: RISK POOLING 2.4 Centralized Versus Decentralized Systems 2.5 Managing Inventory in the Supply Chain 2.6 Practical Issues 2.7 Forecasting 2.7. I Judgment Methods 2.7.2 Market Research Methods 2.7.3 Time-Series Methods 2.7.4 Causal Methods 2.7.5 Selecting the Appropriate Forecasting Technique Summary Discussion Questions CASE: SPORT OBERMEYER

27
27 31 33 33 36 36 39 41 42 45 45 47 48 49 52 52 56 57 58 58 59 59 59 60 60 63

CHAPTER 3

NETWORK PLANNING
CASE: THE Bis CORPORATION 3.1 Introduction 3.2 Network Design 3.2.1 Data Collection 3.2.2 Data Aggregation

79
79 81 82 84 84

Page 3 of 26

3.2.3 Transportation Rates 3.2.4 Mileage Estimation 3.2.5 Warehouse Costs 3.2.6 Warehouse Capacities 3.2.7 Potential Warehouse Locations 3.2.8 Service Level Requirements 3.2.9 Future Demand 3.2.10 Model and Data Validation 3.2.11 Solution Techniques 3.2.12 Key Features of a Network Configuration SCP 3.3 Inventory Positioning and Logistics Coordination 3.3. I Strategic Safety Stock CASE: ELECCOMP INC. 3.3.2 Integrating Inventory Positioning and Network Design 3.4 Resource Allocation Summary Discussion Questions CASE: H. C. STARCK, INC.

88 89 90 91 92 92 92 92 93 96 97 97 99 105 106 109 110 111

CHAPTER 4

SUPPLY CONTRACTS
CASE: AMERICAN TOOL WORKS 4.1 Introduction 4.2 Strategic Components 4.2.1 Supply Contracts 4.2.2 Limitations 4.3 Contracts for Make-to-Stock/Make-to-Order Supply Chains 4.4 Contracts with Asymmetric Information 4.5 Contracts for Nonstrategic Components Summary Discussion Questions

127
127 128 129 129 134 135 139 140 142 143

CHAPTER 5

THE VALUE OF INFORMATION

CASE: BARILLA SpA (A) 5.1 Introduction 5.2 The Bullwhip Effect 5.2.1 Quantifying the Bullwhip Effect 5.2.2 The Impact of Centralized Information on the Bullwhip Effect 5.2.3 Methods for Coping with the Bullwhip Effect 5.3 Information Sharing and Incentives 5.4 Effective Forecasts 5.5 Information for the Coordination of Systems 5.6 Locating Desired Products 5.7 Lead-Time Reduction 5.8 Information and Supply Chain Trade-offs 5.8.1 Conflicting Objectives in the Supply Chain 5.8.2 Designing the Supply Chain for Conflicting Goals 5.9 Decreasing Marginal Value of Information Summary Discussion Questions CASE: REEBOK NFL REPLICA JERSEYS: A CASE FOR POSTPONEMENT

147
147 158 159 161 163 166 167 169 169 170 171 171 172 172 175 176 176 177

CHAPTER 6

SUPPLY CHAIN INTEGRATION

CASE: DELL INC.: IMPROVING THE FLEXIBILITY OF THE DESKTOP PC SUPPLY CHAIN 6.1 introduction 6.2 Push, Pull, and Push-Pull Systems 6.2.1 Push-Based Supply Chain 6.2.2 Pull-Based Supply Chain 6.2.3 Push-Pull Supply Chain

185
185 195 195 195 196 197

Page 4 of 26

6.2.4 Identifying the Appropriate Supply Chain Strategy 6.2.5 Implementing a Push-Pull Strategy 6.3 The Impact of Lead Time 6.4 Demand-Driven Strategies 6.5 The Impact of the Internet on Supply Chain Strategies 6.5.1 What Is E-Business? 6.5.2 The Grocery Industry 6.5.3 The Book Industry 6.5.4 The Retail Industry 6.5.5 Impact on Transportation and Fulfillment Summary Discussion Questions CASE: THE GREAT INVENTORY CORRECTION

198 200 202 204 205 206 207 207 208 209 209 210 210

CHAPTER 7

DISTRIBUTION STRATEGIES
CASE: AMAZON.COM'S EUROPEAN DISTRIBUTION STRATEGY 7.1 Introduction 7.2 Direct Shipment Distribution Strategies 7.3 Intermediate Inventory Storage Point Strategies 7.3.1 Traditional Warehousing 7.3.2 Cross-Docking 7.3.3 Inventory Pooling 7.4 Transshipment 7.5 Selecting an Appropriate Strategy Summary Discussion Questions

215
215 238 238 239 240 241 242 247 247 248 249

CHAPTER 8

STRATEGIC ALLIANCES
CASE: HOW KIMBERLY-CLARK KEEPS CLIENT COSTCO IN DIAPERS 8.1 Introduction 8.2 A Framework for Strategic Alliances 8.3 Third-Party Logistics 8.3.1 What Is 3PL? 8.3.2 Advantages and Disadvantages of 3PL 8.3.3 3PL Issues and Requirements 8.3.4 3PL Implementation Issues 8.4 Retailer-Supplier Partnerships 8.4.1 Types of RSP 8.4.2 Requirements for RSP 8.4.3 Inventory Ownership in RSP 8.4.4 Issues in RSP Implementation 8.4.5 Steps in RSP Implementation 8.4.6 Advantages and Disadvantages of RSP 8.4.7 Successes and Failures 8.5 Distributor Integration 8.5.1 Types of Distributor Integration 8.5.2 Issues in Distributor Integration Summary Discussion Questions CASE: AUDIO DUPLICATION SERVICES, INC. (ADS) CASE: THE SMITH GROUP CASE: MARUTI UDYOG LIMITED

251
251 254 256 257 258 258 260 261 262 262 263 264 265 265 266 267 268 268 269 270 270 271 272 273

CHAPTER 9

PROCUREMENT AND OUTSOURCING STRATEGIES

CASE: ZARA 9.1 introduction 9.2 Outsourcing Benefits and Risks 9.3 A Framework for Buy/Make Decisions 9.4 Procurement Strategies

277
277 291 292 294 296

Page 5 of 26

9.4.1 Supplier Footprint 9.5 E-Procurement Summary Discussion Questions CASE: SOLECTRON: FROM CONTRACT MANUFACTURER TO GLOBAL SUPPLY CHAIN INTEGRATOR

298 300 304 305 305

CHAPTER 10 GLOBAL LOGISTICS AND RISK MANAGEMENT

CASE: WAL-MART CHANGES TACTICS TO MEET INTERNATIONAL TASTES 10.1 Introduction 10.1.1 Global Market Forces 10.1.2 Technological Forces 10.1.3 Global Cost Forces 10.1.4 Political and Economic Forces 10.2 Risk Management 10.2.1 Many Sources of Risks 10.2.2 Managing the Unknown-Un/mown 10.2.3 Managing Global Risks 10.2.4 Requirements for Global Strategy Implementation 10.3 Issues in International Supply Chain Management 10.3.1 International versus Regional Products 10.3.2 Local Autonomy versus Central Control 10.3.3 Miscellaneous Dangers 10.4 Regional Differences in Logistics 10.4.1 Cultural Differences 10.4.2 Infrastructure 10.4.3 Performance Expectation and Evaluation 10.4.4 Information System Availability 10.4.5 Human Resources Summary Discussion Questions

321
321 324 325 326 326 327 327 328 330 333 334 335 335 336 337 338 338 338 339 340 340 340 341

CHAPTER 11 COORDINATED PRODUCT AND SUPPLY CHAIN DESIGN

CASE: HEWLETT-PACKARD: DESKJET PRINTER SUPPLY CHAIN 11.1 A General Framework 11.2 Design for Logistics 11.2.1 Overview 11.2.2 Economic Packaging and Transportation 11.2.3 Concurrent and Parallel Processing 11.2.4 Standardization 11.2.5 Selecting a Standardization Strategy 11.2.6 Important Considerations 11.2.7 The Push-Pull Boundary 11.2.8 Case Analysis 11.3 Supplier Integration into New Product Development 11.3.1 The Spectrum of Supplier Integration 11.3.2 Keys to Effective Supplier Integration 11.3.3 A "Bookshelf" of Technologies and Suppliers 11.4 Mass Customization 11.4.1 What Is Mass Customization? 11.4.2 Making Mass Customization Work 11.4.3 Mass Customization and Supply Chain Management Summary Discussion Questions CASE: HEWLETT-PACKARD COMPANY: NETWORK PRINTER DESIGN FOR UNIVERSALITY

343
343 351 354 354 355 356 357 361 361 362 363 365 365 366 367 367 367 368 369 369 370 370

CHAPTER 12 CUSTOMER VALUE

CASE: MADE TO MEASURE

377
377

Page 6 of 26

12.1 Introduction 12.2 The Dimensions of Customer Value 12.2.1 Conformance to Requirements 12.2.2 Product Selection 12.2.3 Price and Brand 12.2.4 Value-Added Services 12.2.5 Relationships and Experiences 12.2.6 Dimensions and Achieving Excellence 12.3 Customer Value Measures 12.4 Information Technology and Customer Value Summary Discussion Questions

380 382 382 384 387 388 389 391 392 395 397 398

CHAPTER 13 SMART PRICING

CASE: STARBUCKS ECONOMICS: SOLVING THE MYSTERY OF THE ELUSIVE "SHORT" CAPPUCCINO 13.1 Introduction 13.2 Price and Demand 13.3 Markdowns 13.4 Price Differentiation 13.5 Revenue Management 13.6 Smart Pricing 13.6.1 Differential Pricing 13.6.2 Dynamic Pricing 13.7 Impact of the Internet 13.8 Caveats Summary Discussion Questions CASE: THE GREAT REBATE RUNAROUND

399
399 400 401 402 403 405 408 408 410 411 412 413 413 414

CHAPTER 14 INFORMATION TECHNOLOGY AND BUSINESS PROCESSES

CASE: SUPPLY CHAIN WHIRL 14.1 Introduction 14.2 The Importance of Business Processes 14.3 Goals of Supply Chain IT CASE: 7-ELEVEN STOCKS UP ON TECH SAVVY 14.4 Supply Chain Management System Components 14.4.1 Decision-Support Systems 14.4.2 IT for Supply Chain Excellence 14.5 Sales and Operations Planning CASE: S&OP "EVOLUTION" AT ADTRAN 14. 6 Integrating Supply Chain Information Technology 14.6.1 Implementation of ERP and DSS 14.6.2 "Best of Breed " versus Single-Vendor ERP Solutions Summary Discussion Questions

419
419 421 422 428 432 435 436 439 442 442 445 446 447 448 449

CHAPTER 15 TECHNOLOGY STANDARDS

CASE: PACORINI STAYS ON TOP OF GLOBAL LOGISTICS MARKET WITH IBM SOA SOLUTION 15.1 Introduction 15.2 IT Standards 15.3 Information Technology Infrastructure 15.3.1 Interface Devices 15.3.2 System Architecture 15.3.3 Electronic Commerce 15.4 Service-Oriented Architecture (SOA) 15.4.1 Technology Base: IBM and Microsoft 15.4.2 ERP Vendor Platform: SAP and Oracle

451
451 452 453 455 455 455 457 460 460 462

Page 7 of 26

15.4.3 Conclusion 15.5 Radio Frequency Identification (RFID) 15.5.1 Introduction 15.5.2 RFID Applications 15.5.3. RFID and Point-of-Sale Data 15.5.4 Business Benefits 15.5.5 Supply Chain Efficiency Summary Discussion Questions

463 464 464 465 468 469 471 471 472

CHAPTER 16 LOCAL ISSUES IN SUPPLY CHAIN MANAGEMENT

CASE: AMAZING STORY OF MUMBAI DABBAWALAHS 16.1 Introduction 16.2 Supply Chain Issues during Natural Disasters and Other Calamities 16.3 Supply Chain Issues for SMEs 16.4 Organized Retail in India 16.5 Reverse Logistics Summary Discussion Questions

473
473 479 479 480 481 482 482 483

APPENDIX A

COMPUTERIZED BEER GAME

A.1 Introduction A.2 The Traditional Beer Game A.2.1 The Difficulties with the Traditional Beer Game A.3 The Scenarios A.4 Playing a Round A.4.1 1ntroducing the Game A.4.2 Understanding the Screen A.4.3 Playing the Game A.4.4 Other Features A.5 Options and Settings A.5.1 File Commands A.5.2 Options Commands A.5.3 The Play Commands A.5.4 The Graphs Commands A.5.5 The Reports Commands

485
485 485 486 487 488 488 489 490 492 493 493 493 496 497 498

APPENDIX B

THE RISK POOL GAME

B.1 Introduction B.2 The Scenarios B.3 Playing Several Rounds B.3.1 1ntroducing the Game B.3.2 Understanding the Screen B.3.3 Playing the Game B.3.4 Other Features B.4 Options and Settings B.4.1 File Commands B.4.2 Play Commands B.4.3 The Reports Commands

500
500 500 501 501 502 503 503 503 504 504 506

APPENDIX C

EXCEL SPREADSHEET
C.1 introduction C.2 The Spreadsheet

508
508 508

APPENDIX D

THE BIDDING GAME

D.1 introduction D.2 The Scenario D.3 instructions for Excel Version of the Game

509
509 509 510

Page 8 of 26

BOBILOGRAPHY INDEX

511 521

Page 9 of 26

Introduction to Supply Chain Management Technologies

David Frederick Ross, CFPIM ISBN: 9781439837528 Table of Contents
Preface Acknowledgements Author Supply Chain Management: Architecting the Supply Chain for Competitive Advantage
The Foundations of Supply Chain Management The Rise of Supply Chain Management Defining Supply Chain Management Redefining Supply Chain Management Supply Chain Competencies Summary and Transition Notes

xiii xix xxi

CHAPTER 1

1
2 5 11 17 23 31 33

CHAPTER 2

Supply Chain Technology Foundations: Exploring the Basics

The Importance of Information Technology Enterprise Information Technology Basics New Technologies Summary and Transition Notes

35
37 41 53 62 63

CHAPTER 3

Supply Chain System Foundations: Understanding Todays Technology Solutions

Business Information System Basics Enterprise Business Systems Foundations Standard EBS Systems Advent of Internet Business Technologies Summary and Transition Notes

65
66 70 83 92 112 114

CHAPTER 4

Technology-Driven Supply Chain Evolution: Building Lean, Adaptive, Demand-Driven Supply Networks
The Lean Supply Chain Adaptive Supply Chains Demand-Driven Supply Networks Summary and Transition Notes

117
119 133 141 155 157

CHAPTER 5

Customer and Service Management: Utilizing CRM to Drive Value to the Customer
Creating the Customer-Centric Supply Chain Applying Technology to CRM CRM and the Supply Chain New Concepts in Customer Management Technologies Summary and Transition Notes

159
160 172 185 193 202 204

CHAPTER 6

Manufacturing and Supply Chain Planning: Linking Product Design, Manufacturing, and Planning to Increase Productivities

207

Page 10 of 26

Manufacturing in the Age of the Global Enterprise Impact of Technology on Manufacturing Collaborative Product Commerce Managing Manufacturing Planning Functions Summary and Transition Notes

209 218 231 236 247 249

CHAPTER 7

Supplier Relationship Management: Integrating Suppliers into The Value Chain

Defining Purchasing and Supplier Relationship Management (SRM) The Internet-Driven SRM Environment Anatomy of the e-SRM Marketplace Exchange Environment Implementing e-SRM Summary and Transition Notes

251
252 262 274 282 287 289

CHAPTER 8

Logistics Resource Management: Utilizing Technology to Enhance Logistics Competitive Advantage

Defining Logistics Resource Management (LRM) Defining LRM in the Age of the Global Internet Understanding the Third Party Logistics Network Choosing and Implementing an LSP Solution Summary and Transition Notes

293
294 306 318 325 330 332

CHAPTER 9

Developing SCM Technology Strategies: Creating the Game Plan for the Successful Implementation of SCM Technologies
Changing Views of Enterprise Strategy Preliminary Steps in SCM Technology Deployment Strategy Developing the SCM Technology Strategy Summary Notes

335
336 346 356 379 381

Afterword
Notes

383
386

Index

387

Page 11 of 26

APICS CSCP Learning System

APICS 2013 Edition Table of Contents Course Overview and Module 1: Fundamentals of Supply Chain Management
Module 1, Book 1 Contents

2013 APICS CSCP EXAM CONTENT MANUAL (ECM) COURSE OVERVIEW MODULE 1: FUNDAMENTALS OF SUPPLY CHAIN MANAGEMENT Introduction Section A: Supply Chain Management Concepts
It's a World of Global, Complex, Interdependent Supply Chains Basic Supply Chain The SCOR Model: Linking Processes, Metrics, Best Practices, and Technologies Vertical versus Horizontal Integration Supply Chain Management Objectives Supply Chain Management Benefits Accounting and Financial Statement Basics

ECM-1 i

1-1 1-3
1-3 1-5 1-13 1-15 1-24 1-46 1-52

Section B: Supply Chain Alignment with Business Strategy

Business Strategy and Competitive Advantages Organizational and Supply Chain Strategy, Prioritization, Capabilities, and Alignment Resolving Misalignment or Gaps

1-68
1-70 1-74 1-106

Section C: Supply Chain Design and Improvement Considerations

Understanding the Marketplace Supply Chain Design Considerations Continuous Improvement

1-115
1-115 1-118 1-124

Section D: Inventory Management

The Need for Inventory Aggregate and Item Inventory Management Flow of Material Functions of Inventory Inventory-Related Cost Categories Effects of Inventory on the Financial Statements

1-148
1-148 1-151 1-153 1-155 1-157 1-159

Page 12 of 26

Principles of Supply Chain Management

Richard E. Crandall, William R. Crandall and Charlie C. Chen ISBN: 9781420091076 Table of Contents PART I
CHAPTER 1

OVERVIEW OF SUPPLY CHAIN MANAGEMENT

Evolution of Supply Chains
Learning Outcomes What Is a Supply Chain? Importance of SCM Evolution of Supply Chains Changing Government Orientation Current Trends That Link Supply Chain Participants More Closely Current Developments in SCM Obstacles to Supply Chain Integration Examples of Companies with Successful Supply Chains Progress toward an Integrated Supply Chain Supply Chain Models

CHAPTER 2

Supply Chains as a System

Learning Outcomes Introduction Supply Chain Systems Types of Supply Chains Examples of Supply Chains in Different Industries Open Systems vs. Closed Systems Effect of External Influences on Supply Chains Obstacles and Enablers of Supply Chain Integration Internal and External Customers Open Systems vs. Closed Systems Effect of External Influences on Supply Chains Obstacles and Enablers of Supply Chain Integration Performance Measurement Allocation of Costs, Resources, and Benefits along the Supply Chain Value Creation as the Ultimate Objective

PART II
CHAPTER 3

THE CUSTOMER PERSPECTIVE

Determining Customer Needs
Learning Outcomes Introduction Group Customers into Homogeneous Segments Determine the Needs of the Ultimate Consumer How Do You Accurately Determine Needs? How Do You Forecast Demand? Attributes of a Well-Designed Product Product Design Approaches Determine the Number of Supply Chains Needed within a Company Performance Measurement Determine the Needs of Internal Customers

CHAPTER 4

A System to Meet Customer Needs

Learning Outcomes What Is Customer Relationship Management? Global Supply Chain Forum Model How CRM Can Be Used to Design a Supply Chain?

Page 13 of 26

Product Lifecycle Management Supply Chain Mapping Determining Resource Requirements Designing Processes to Match with Products Determining the Mix of "Make" and "Buy" Aligning Entities along the Supply Chain Evaluating the System Design

CHAPTER 5

Demand Management
Learning Outcomes Introduction Definition of Demand Management Importance of Demand Management Managing Demand Managing Supply Merging Supply and Demand into a Demand Management Process Demand Management in Manufacturing Demand Management in Services Proposed Demand Management Strategies Factors That Affect the Selection of a Demand Management Strategy Relationship between Factors and Strategies Model for Integrating Demand and Supply Management Programs Used to Implement Demand Management Strategies Demand Management along the Supply Chain

PART III
CHAPTER 6

THE SUPPLY PERSPECTIVEDISTRIBUTION, PRODUCTION, AND PROCUREMENT

Distribution and Retailing
Learning Outcomes Introduction Retail Function Designing the Retail Process Managing a Retail Business Retail and Inventory Management Present Situation in Retailing Future in Retailing Role of Wholesalers and DCs Critical Success Factors for Distribution Inventory within Distribution Functions Inventory Management between Retailer and Distributor Technology in Distribution Functions Positioning Services within the Distribution Functions Predominant Delivery Methods Third-Party Service Providers Distribution Performance Measurement RetailerDistributor Relationship

CHAPTER 7

Production and Service Processes

Learning Outcomes Introduction Evolution of the Production Function Critical Success Factors for Manufacturers Manufacturing Strategies Batch to Lean Operations Make or Buy Strategies Capacity Planning Service Production Strategies Relationships with Downstream Customers From Transactions to Processes

Page 14 of 26

Trends in Production Performance Measurement

CHAPTER 8

Procurement/Purchasing
Learning Outcomes Introduction Role of Procurement in the Supply Chain Traditional Purchasing Contemporary Purchasing Critical Success Factors for Procurement Changing Role of Purchasing Purchasing Functions Purchasing at Different Stages of the Supply Chain Dealing with Off shore Outsourcing Performance Measurement Future of Purchasing

CHAPTER 9

Reverse Supply Chains

Learning Outcomes Introduction Description of Reverse Supply Chain Networks Principal Drivers of the Movement Activities in Reverse Logistics Role of Private Industry Role of Government Role of Consumer Reverse Logistics Network Future

PART IV

INTEGRATED SUPPLY CHAINS

Expected Outcomes Introduction Setting the Stage From Mass Production to Mass Customization From Vertical Integration to Virtual Integration From Homogeneous Cultures to Diverse Cultures Drivers of Change Involves Change Management Steps in the Integration Process Need for Strategic Planning Need for a Multi-Year Project Plan Performance Measurement across the Supply Chain Integration Requires Sharing

CHAPTER 10 The Need to Integrate

CHAPTER 11 Why Integration Is Difficult

Learning Outcomes Introduction Determining Strategic Objectives Evaluating the Potential Return on Investment Designing for Participant Differences Need for Multiple Supply Chains Selecting and Implementing Technology Realigning Infrastructure Transforming Company Cultures Building Relationships Measuring Performance Maintaining the System

Page 15 of 26

Obstacles to International SCM

CHAPTER 12 How to Build an Integrated Supply Chain

Learning Outcomes Introduction Who Manages the Supply Chain? The World of Lean Production Stages in Moving from Functional-Focus to Cross-Enterprise Collaboration A Comprehensive Supply Chain Model Decisions Needed to Achieve a Lean and Agile Supply Chain Integrated Supply Chain Steps in the Change Process A Look Ahead

PART V

THE FINANCIAL AND INFORMATION TECHNOLOGY PERSPECTIVES

Learning Outcomes Introduction Need for Information Flow Types of Information Transmitted Intracompany Technologies Used Supply Chain Direct Links Linking Technologies Linking Applications Third-Party Services Benefits of Information Technologies Barriers to IT Adoption Model of an Integrated Supply Chain Information System

CHAPTER 13 Information Flow along the Supply Chain

CHAPTER 14 Funds Flow along the Supply Chain

Learning Outcomes Overview of the Flow of Funds Need for Electronic Funds Flow Benefits and Obstacles of Funds Flow in Supply Chains Participants Other Than Members of the Supply Chain Performance Measurement Effect of Production Strategies on Funds Flow Technologies Used New Concepts in Funds Flow Funds Flow in the Reverse Supply Chain A Comprehensive Example

CHAPTER 15 ROI for Supply Chains and Other Issues

Learning Outcomes Supply Chain Configurations Programs Requiring Close Supply Chain Relationships Need to Evaluate Supply Chain ROI Tangible Costs Indirect Costs Cash Flow and Time Value of Money Considerations Intangible Benefits Intangible Costs Plan for Equitable Distribution among Members Role of Prime Mover in the Supply Chain Changes in Supply Chain Composition Case Studies

Page 16 of 26

PART VI

THE FUTURE
Learning Outcomes From the Past to the Present Evolution of Critical Success Factors in the United States Major Drivers of Change in Supply Chains Changes Needed in the Future Global Business Perspective Balanced Approach to Offshore Outsourcing Continuing Changes in Technology Vanishing Boundaries between Manufacturing and Services Process Evolution from Transactions to Integrated Infrastructure Refinements Culture and Employees Supply Chain Relationships

CHAPTER 16 Trends in Supply Chain Development and Management

CHAPTER 17 Preparation for the Future

Learning Outcomes Recognize the Need to Adapt to Changing Conditions Identify What Needs to Be Done Summary of Challenges Role of Government Role of Third Parties Future TechnologyInformation Technology Oriented Build Strategic and Operational Plans Continue the Drive for Collaboration Develop Performance Measures for Supply Chain Management Structure the Organization to Manage Change Modify the Culture to Accept Change Drive for Sustainability WisdomEducation and Training Vanishing Boundaries between Manufacturing and Services Application of Chaos Theory to Business

Index

Page 17 of 26

Supply Chain Logistics Management

Donald J. Bowersox, David J. Closs, M. Bixby Cooper and John C. Bowersox ISBN: 9780078024054 Table of Contents About the Authors Preface SUPPLY CHAIN LOGISTICS MANAGEMENT PART I
CHAPTER 1 21st-Century Supply Chains
The Supply Chain Revolution Why Integration Creates Value Generalized Supply Chain Model Information System Functionality Supply Chain Information System Modules Enterprise Integration and Administration Enterprise Supply Chain Operations Enterprise Planning and Monitoring Communication Technology Consumer Connectivity Integrative Management and Supply Chain Processes Collaboration Enterprise Extension Integrated Service Providers (ISPs) Responsiveness Anticipatory Business Model (Push) Responsive Business Model (Pull) Postponement Barriers to Implementing Responsive Systems Financial Sophistication Cash-to-Cash Conversion Dwell Time Minimization Cash Spin Globalization Summary Study Questions Challenge Questions

iv v 1
2
4 5 6 7 10 11 12 13 14 14 14 16 17 17 19 19 20 21 23 23 24 24 25 25 26 27 27

CHAPTER 2

Logistics
The Logistics of Business Is Big and Important The Logistical Value Proposition Service Benefits Cost Minimization Logistics Value Generation The Work of Logistics Order Processing Inventory Transportation Warehousing, Materials Handling, and Packaging Facility Network Design Logistical Operations Inventory Flow Information Flow Logistical Integration Objectives Responsiveness Variance Reduction Inventory Reduction Shipment Consolidation

28
29 30 30 32 32 33 33 34 35 36 37 38 38 40 40 41 41 41 41

Page 18 of 26

Quality Life Cycle Support Logistical Operating Arrangements Echelon Direct Combined Flexible Structure Supply Chain Synchronization Performance Cycle Structure Performance Cycle Uncertainty Summary Study Questions Challenge Questions

42 42 42 43 43 44 45 47 48 50 52 53 53

CHAPTER 3

Customer Relationship Management

Customer-Focused Marketing Transactional versus Relationship Marketing Supply Chain Service Outputs Customer Service Availability Operational Performance Service Reliability The Perfect Order Basic Service Platforms Customer Satisfaction Customer Expectations A Model of Customer Satisfaction Increasing Customer Expectations Limitations of Customer Satisfaction Customer Success Achieving Customer Success Value-Added Services Developing Customer Relationship Strategy Framework for Strategic Choice Customer Relationship Management Technology Summary Study Questions Challenge Questions

54
55 56 57 59 59 61 62 63 64 64 65 65 68 69 70 71 72 73 73 75 76 77 78

CHAPTER 4

Procurement
Procurement Objectives Continuous Supply Minimize Inventory Investment Quality Improvement Supplier Development Access Technology and Innovation Lowest Total Cost of Ownership Procurement Strategy Insourcing versus Outsourcing Alternative Procurement Strategies Procurement Strategy Portfolio Supplier Selection and Assessment Supplier Audits Supplier Development Monitoring Performance Supplier Certification E-Commerce and Procurement Logistical Interfaces with Procurement Just-in- Time

79
80 80 80 81 81 81 81 83 83 84 87 89 89 90 90 91 91 92 93

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Procurement of Logistics Services Performance-Based Logistics Summary Study Questions Challenge Questions

93 94 94 95 95

CHAPTER 5

Manufacturing
The Quality Imperative Dimensions of Product Quality Total Quality Management Quality Standards Manufacturing Perspectives Brand Power Volume Variety Constraints Leadtime Manufacturing Strategy Basic Manufacturing Processes Matching Manufacturing Strategy to Market Requirements Alternative Manufacturing Strategies Total Cost of Manufacturing Contemporary Manufacturing Developments Mass Customization Lean Systems Flexible Manufacturing Six Sigma Requirements Planning Design for Manufacture Design for Logistics Summary Study Questions Challenge Questions

96
97 97 99 100 100 100 101 101 102 103 103 104 106 106 108 109 109 110 111 112 113 113 114 114 115 115

CHAPTER 6

Integrated Operations Planning

Supply Chain Planning Supply Chain Visibility Simultaneous Resource Consideration Resource Utilization Supply Chain Planning Applications Demand Planning Production Planning Logistics Planning Inventory Deployment Sales and Operations Planning (S&OP) S&OP Process Making S&OP Work APS System Overview APS System Components Supply Chain Planning Benefits Supply Chain Planning Considerations Integrated Business Planning Supply Chain Planning Summary Collaborative Planning, Forecasting, and Replenishment Forecasting Forecasting Requirements Forecasting Components Forecasting Process Forecasting Techniques

116
117 117 117 118 118 118 119 119 120 121 121 124 126 127 129 130 131 131 132 133 134 135 137 139

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Forecasting Accuracy Summary Study Questions Challenge Questions

143 145 145 146

PART II
CHAPTER 7

SUPPLY CHAIN LOGISTICS OPERATIONS

Inventory
Inventory Functionality and Definitions Inventory Functionality Inventory Definitions Inventory Carrying Cost Capital Taxes Insurance Obsolescence Storage Planning Inventory When to Order How Much to Order Managing Uncertainty Demand Uncertainty Performance Cycle Uncertainty Safety Stock with Combined Uncertainty Estimating Fill Rate Dependent Demand Replenishment Inventory Management Policies Inventory Control Reactive Methods Planning Methods Collaborative Inventory Replenishment Inventory Management Practices Product/Market Classification Segment Strategy Definition Policies and Parameters Summary Study Questions Challenge Questions

147
148
149 149 151 155 155 155 155 156 156 156 156 157 162 162 166 166 168 171 171 172 174 175 180 181 182 183 183 184 184 185

CHAPTER 8

Transportation
Transport Functionality and Participants Functionality Participants From Regulation to a Free Market System Transportation Modal Structure Rail Truck Water Pipeline Air Modal Comparative Characteristics and Capabilities Infrastructure in Crisis Specialized Transportation Services Package Services Intermodal Nonoperating Intermediaries Transportation Economics and Pricing Economy of Distance Economy of Weight Economy of Density

186
187 187 188 190 191 193 194 196 196 197 198 198 199 199 201 202 203 203 203 204

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Other Pricing Factors Costing Freight Pricing Freight Transportation Management Operational Management Consolidation Negotiation Control Auditing and Claim Administration Documentation Bill of Lading Freight Bill Shipment Manifest Product Pricing and Transportation F.O.B. Pricing Delivered Pricing Pickup Allowances Summary Study Questions Challenge Questions

204 205 206 212 212 213 215 215 216 217 217 219 219 219 219 220 221 221 222 222

CHAPTER 9

Warehousing
Strategic Warehousing Economic Benefits Service Benefits Warehouse Operations Handling Storage Warehouse Ownership Arrangements Private Public Contract Network Deployment Warehouse Decisions Site Selection Design Product-Mix Analysis Expansion Handling Layout Sizing Warehouse Management Systems (WMS) Yard Management Systems (YMS) Accuracy and Audits Security Safety and Maintenance Summary Study Questions Challenge Questions

223
224 225 230 231 231 233 235 235 236 236 237 237 237 238 239 239 239 240 241 241 243 244 244 245 246 246 247

CHAPTER 10 Packaging and Handling

Packaging Perspectives Packaging for Handling Efficiency Package Design Utilization Communication Handling Basic Handling Considerations Mechanized Systems

248
248 251 251 252 254 255 255 256

Page 22 of 26

Semiautomated Systems Automated Systems Information-Directed Systems Special Handling Considerations Summary Study Questions Challenge Questions

257 259 263 264 266 266 266

PART III

SUPPLY CHAIN LOGISTICS DESIGN

Global Economies Global Supply Chain Integration Logistics in a Global Economy Globalization Strategies Managing the Global Supply Chain Global Sourcing Rationale for Low-Cost-Country Sourcing Challenges for Low-Cost-Country Sourcing Guidelines for Sourcing Summary Study Questions Challenge Questions

269
270
270 271 272 272 276 280 280 281 282 283 283 283

CHAPTER 11 Global Supply Chains

CHAPTER 12 Network Design

Enterprise Facility Network Spectrum of Location Decisions Local Presence: An Obsolete Paradigm Warehouse Requirements Procurement Drivers Manufacturing Drivers Customer Relationship Drivers Warehouse Justification Systems Concept and Analysis Total Cost Integration Transportation Economics Inventory Economics Total Cost Network Formulating Logistical Strategy Cost Minimization Threshold Service Service Sensitivity Analysis Establishing Strategy Other Considerations in Logistics Network Design Summary Study Questions Challenge Questions

285
286 287 287 288 288 289 290 291 291 292 292 295 300 301 302 302 304 306 307 308 309 310

CHAPTER 13 Operations Analysis

Planning Methodology Phase I: Problem Definition and Planning Feasibility Assessment Project Planning Phase II: Data Collection and Analysis Assumptions and Data Collection Analysis Phase III: Recommendations and Implementation Recommendations Implementation Supply Chain Analysis Methods and Techniques

311
311 312 312 318 320 320 323 325 325 326 327

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Design Decisions Design Logic Inventory Decisions Transportation Decisions Freight Lane Analysis Inventory Analysis Summary Study Questions Challenge Questions

327 328 334 336 338 339 341 341 342

PART IV

SUPPLY CHAIN LOGISTICS ADMINISTRATION

Logistical Organization Functional Aggregation A Shift in Emphasis from Function to Process Development of Collaborative Relationships Collaborative Relationships and Dependency Developing Trust Risk, Power, and Leadership Supply Chain Collaborative Framework Relationship Management Initiating Implementing Maintaining Terminating Summary Study Questions Challenge Questions

343
344
345 345 347 351 352 353 355 356 360 360 361 362 363 364 364 365

CHAPTER 14 Collaboration

CHAPTER 15 Performance Measurement

Measurement System Objectives Operational Assessment Functional Perspectives Measuring Customer Relationships Determining Appropriate Metrics Supply Chain Comprehensive Metrics Benchmarking Information Technology and Measurement Financial Assessment Cost-Revenue Analysis Strategic Profit Model Requirements for Financial Reporting Summary Study Questions Challenge Questions

366
366 367 368 372 374 375 377 378 379 379 383 387 389 390 390

CHAPTER 16 Risk and Sustainability

Evolving Responsibilities of Supply Chain Professionals Processes and Resources Product Complexity Outsourcing Risk and Secity Management Regulation Financial and Taxation Security Sustainability Environmental Ethical Educational

391
391 394 394 395 395 397 397 398 402 403 404 405

Page 24 of 26

Economic Supply Chain Sustainability Examples Summary Study Questions Challenge Questions

406 407 414 415 415

Epilogue Problems Cases Index

417 419 431 475

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