1. Agenda of Week II. Introduction to SCM Objective of SCM  Office and contact point  Education  Research interest Definition of SCM Review of week 1 123  What is SCM  Diagram  3PL  Network  Logistics  Visibility  Examples Purposes :  Understanding the definition of SCM  Analyzing SCM through system approach. Structure and functions of SCM 4  Players in SC  Physical vs. Cyber  Organically functioning

2. Review of Week I. Introduction Modules  Office and contact point  Education  Research interest Lecture Issues Professor Introduction 123  Lecture site  Text book  Lecture structure  Module I: Theoretical SCM  Module II: SCM issues Purposes :  Understanding the general aspects of SCM lecture through introduction of professor and whole class.

3. What is SCM? o Diagram for typical supply chain Product Design Retailers Customers Wholesalers SuppliersManufacturer Distributors 3 rd party logistics company

4. Definition of SCM o Supply chain Chain relationship among companies which participate in providing a final product for customers Traditionally Manufacturer is the master of supply chain and suppliers, distributors, wholesalers, and retailers are included Currently Product design, customers, customer services are included o Supply chain network

5. Definition of SCM o Supply chain Management To manage the whole supply chain in order to achieve some objectives To decide the parameters (such as quantity, quality, price, and delivery date etc.) between two players in supply chain o Logistics To concentrate on moving the products including parts, raw materials, w.i.p., and final products

6. Objectives of SCM o Visibility Through supply chain To make Whole SC visible to all who have some interests in an industry To integrate the power of all players in SC to optimize the SC performance To maximize the customer satisfaction Example: Television, Pizza

7. Structure of SCM o Players in supply chain o Logistics infra Seaport, airport, railroad, road, warehouse, handling facilities Vessels, cargos, trains, trucks etc. o Logistics policy, laws, regulations etc.

8. Physical SC vs. Cyber SC o Information technology e-Business e-Commerce o Cyber SC Supply chain which is made up of e-business systems and e-commerce systems Each player is e-business and it is connected by e-commerce Cyber chain controls and manages physical chain

9. Functions of SCM o Inbound logistics Product design based on feedback from customer service area Timely procurement of quality raw materials and parts at a ‘reasonable’ price o Production/operations Production of products effectively and efficiently to satisfy divergent customer needs Innovation of service system Technology improvement vs. process improvement

10. Functions of SCM o Outbound logistics Timely distribution to correct destinations of correct quantity at a ‘reasonable price’ Distributed quantity, destination, compensation for distribution, and penalty etc. Art of delivery o Marketing and customer service Fast and accurate identification of customer needs and reflection of them to products Progress in information technology and telecommunication networks

11. Functions of SCM o Inventory management Raw materials, parts, work-in-process, and final products Safety stock model, EOQ, EPQ News vender model, stochastic news vendor model, MRP, JIT