Week 1: Introduction MIS 3580: Internet-Enabled Supply Chains Prof. Sunil Wattal

Introductions Write on the index cards - Name - Major / Minor - Recent Internships / Industry Experience - What brings you here? Read introductions aloud

Have you ever wondered … How did Mattel toys get contaminated with lead paint? How Team Obama achieved a record turnout in the elections? How the milk tainted with melamine from China reached candy sold in the US? Why did the employee at one of Apple’s suppliers commit suicide? How does bin Laden release videos?

Have you ever wondered … How did Netflix become a dominant player in the DVD rental market? Why makes Walmart one of the largest companies in the world? How do products get shipped from China? How do the ‘Dabbawallahs’ in Mumbai deliver 175,000 lunch boxes every day? ….. and many more!

What this course is about? Explain the concept of supply chains and why they are important Discuss the impact of information technology on supply chains Ethics and challenges in supply chains Organizational networks Innovations in supply chains

Who should take it? MIS Majors / Minors ◦ New opportunities (globalization) Non MIS majors ◦ Understand competitive aspects of supply chains

Course formalities Syllabus Office Hours Lecture slides Evaluations Group Work Preparing for class

Learning Objectives Key concepts in supply chains Value chains

What is a Supply Chain? Customer wants detergent and goes to Jewel Jewel Supermarket Jewel or third party DC P&G or other manufacturer Plastic Producer Chemical manufacturer (e.g. Oil Company) Tenneco Packaging Paper Manufacturer Timber Industry Chemical manufacturer (e.g. Oil Company) Source: Sunil Chopra and Peter Meindl ‘Supply Chain Management’ Prentice Hall, 2006

What is a supply chain? Also known as a “logistics network” Consists of ◦ Suppliers ◦ Manufacturing centers ◦ Raw materials ◦ Work-in-process inventory ◦ Finished products ◦ Warehouses ◦ Distribution centers ◦ Retail Outlets

Supply chain management A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores Goals ◦ To produce and distribute merchandise at right quantities, to the right locations at the right time ◦ Minimize system-wide costs while satisfying system-level requirements

Supply chain management Decisions about the structure of the supply chain and what processes each stage will perform Strategic supply chain decisions ◦ Locations and capacities of facilities ◦ Products to be made or stored at various locations ◦ Modes of transportation ◦ Information systems Supply chain design must support strategic objectives Supply chain design decisions are long-term and expensive to reverse – must take into account market uncertainty Source: Sunil Chopra and Peter Meindl ‘Supply Chain Management’ Prentice Hall, 2006

Knowledge Check Form groups of 4-5 students and explain the following terms Cycle Time Push/Pull Processes Lead Time Lot Sizing Sourcing Transportation Distribution Network Vendor Managed Inventory Incentive Alignment Demand Forecasting Customization Forecasting Process & Capacity Planning Contract manufacturing Inventory Policies Revenue Management

Why supply chains are important Cost Efficiency ◦ (Walmart) Agility ◦ (Gap) Complexity ◦ (Walmart) Need for innovation ◦ (iPhone APIs) Blurred organizational boundaries ◦ (Cisco)

Factors driving supply chain Information technology Global suppliers / customers / competition Shorter product cycles / Clockspeed Customized products Need for collaboration

Learning Objectives Key concepts in supply chains Value chains