Software Applications in Supply Chain Management Winter 2002:BA Seminar in Business Administration Software Applications in Supply Chain Management In Future: BA 5332/408E - Logistics and Supply Chain Modeling Course Home Page: James Campbell’s home page:

Outline  Syllabus  Definitions  Strategic Distribution System Design  Vehicle Routing & Scheduling  Software

Contact Information  Lead Instructor:Dr. James Campbell  Office: 208 CCB   Phone: office: (314)  fax: (314)  Office Hours:TR 10:00-10:45, TR 3:00-3:45 and by appointment  Other Instructors:Dr. David Ronen Dr. Ray Mundy Dr. Don Sweeney  Industry Speakers

ClassDates Topic Instructor 11/15Introduction Campbell 2,3 1/17,22 Supply Chain Network Design Ronen 4-71/24-2/5SAILS Mundy 8-112/7-2/19 Manugistics Network Strategy Sweeney 12 2/21 Supply Chain Applications Noce 132/26 Intro. to Midterm & Final Project Campbell 14,15 2/28,3/5 Vehicle Routing & Scheduling Campbell 16 3/7 Midterm Project Presentations /12-21 CAPS RoutePro Campbell 214/2 CAPS RoutePro Campbell 224/4Vehicle Routing Applications /9-23ArcLogistics RouteCampbell 28,294/25,30Final Project Work 305/2Summary & Final Project Work 5/14Final Project Presentations Course outline

Grading  Assignments12%  Quizzes 6%  Article Review 14%  Midterm Project 30%  Final Project 33%  Class Participation 5%

Course Work  Assignments:  3 assignments, with SAILS, CAPS, ArcLogistics Route  Quizzes:  over readings and materials presented in class  Article Review:  Midterm & Final Projects:  Midtem: Groups of 2 students using SAILS  Final: Groups of 3 or 4 students using SAILS, CAPS or ArcLogistics Route  Written and oral presentation

Readings  Readings page linked to syllabus  Some articles on-line  linked from Readings page  Other articles available in class or from Center for Transportation Studies

Article Review  Critical review of an application-oriented article on modeling, optimization or decision support systems in the supply chain.  Non-technical executive summary  Concise and carefully edited; <= four pages  Clearly present:  problem addressed,  solution approach or methodology,  any commercial software or consultants used  results.  Address:  key assumptions  limitations of the solution approach or results  applicability of the ideas to similar problems (in other firms)  Include a brief critique that identifies strengths and weaknesses of the article

Definitions  Supply Chain Management - the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. (CLM)  Logistics - Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements. (CLM)  Logistics - Science of managing (controlling) the movement and storage of goods (or people) from acquisition to consumption.

52 Retail Outlets in USA... Retail Outlets

...served by 5 Warehouses Retail Outlets Warehouses Single stop and multi-stop routes SEA LA NY ATL CHI

2 Plants, 5 Warehouses Plants Warehouses P1 P2 SEA LA NY ATL CHI

Outbound Distribution System Retail Outlets Plants Warehouses 2 plants, 5 warehouses, 52 retail outlets P1 P2 SEA LA NY ATL CHI

Inbound Distribution System Plants Warehouses Plants Supply Points Sub-assembly plants 9 suppliers, 3 sub-assembly plants, 2 plants P1 P2 LA

Total Distribution System Retail Outlets Plants Warehouses Supply Points Sub-assembly plants 9 suppliers, 3 sub-assembly plants, 2 plants, 5 warehouses, 52 retail outlets P1 P2 SEA LA NY ATL CHI

Total Distribution System 9 suppliers, 3 sub-assembly plants, 2 plants, 5 warehouses, 52 retail outlets CUSTOMERSCUSTOMERS P1 P2 SEA LA NY ATL CHI

Supply Chain Software  Strategic Distribution System (Supply Chain) Design  SAILS  Manugistics Network Strategy  Vehicle Routing and Scheduling  CAPS RoutePro  ArcLogistics Route

Strategic Distribution System Design Software  Determine the best number, size, and location of raw material suppliers, plants, production lines, and DCs (distribution centers)  Assign customers to DCs  Evaluate ownership options (owned, leased, public)  Evaluate cost vs. service level tradeoffs  SAILS -  Manugistics Network Strategy -

Vehicle Routing and Scheduling Software  Detemine the best routes and schedules to serve a set of orders for delivery and/or pickup  Assign customers (orders) to routes (dynamically)  Assign routes to vehicles and drivers to vehicles  Evaluate cost vs. service level tradeoffs  CAPS RoutePro -  ArcLogistics Route -

Commercial Software  Capable of solving large and complex problems.  Used in practice by many major public and private organizations.  Large, complex and hard to master.  Not designed for academic use!

Readings for next classes  Optimization, Heuristics and Simulation  "Optimization Models for Logistics Decisions", Journal of Business Logistics 10(1) 1989,  "Heuristics: Rules of Thumb for Logistics Decision Making", Journal of Business Logistics 10(1) 1989,  "Simulation in Logistics: A Review of Present practice and a look to the Future", Journal of Business Logistics 10(1) 1989,  Distribution System Design  "Twenty years of strategic distribution system design: an evolutionary perspective", Interfaces 25(5) Sep 1995,  Facility Location Software Survey  "Facility Location Commercial Software Survey", Journal of Business Logistics 20(1) 1999,