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    Supplier and Inventory Management

    Track:Special Track Int. Logistics Management
    Follow-up / Interfaces:International Logistics Management
    Management of Logistics Networks
    Pre-requisites:Pre-reading and preparation tasks
    Didactics:Lecture, case studies, individual tasks, plenum discussions
    Exam:Term Paper
    ECTS points:5
    Lecturer:Inge Sattel / Wolfgang Ernst

    Aims and objectives:

    This course is divided into two sections. The first section dealing with supplier Management will provide fundamental knowledge of purchasing strategies and operational methods to manage the supply chain. The second section will provide an introduction to the most important aspects, which influence inventory and get to know strategies how to come to an optimum stock level.

    The first part of supplier management focuses on strategic purchasing decisions and shows the way from a company strategy to a suitable buying strategy including the purchasing organisation and measurement of purchasing performance.

    The second part concentrates on a holistic stepwise approach of the procurement processes and will provide a suitable framework and range of tools and methodologies up to a section about supplier development in order to build a competitive Supply Chain.

    The section inventory management starts with a general introduction about the different functions of stock and stock evaluation. After this different forecasting models will be presented and discussed. Finally stock policies and lot sizing problems are explained in detail and applied in practical cases.

    General learning objectives:

    Students who pass the Logistics Track will understand the value chain concept from a strategic perspective. This includes the inbound and sourcing process, the internal logistics and operation processes as well as the outbound process. A very important focus is that these logistics experts know how to implement the right tools to change a logistics system into a strategic element and effective area to gain a competitive advantage for their company.

    Detailed learning outcomes:

    • Gain a fundamental knowledge about purchasing strategies and operational methods to manage the supply chain
    • Learn about the tools and methodologies of procurement processes and supplier development
    • Understand how to build a competitive supply chain
    • Explain the different functions of stock and stock management
    • Discuss about different forecasting methods
    • Apply stock policies and lot sizing problems in practical cases

    Content of Supplier and Inventory Management

    1. Introduction to Supplier Management

    • Terms and Definitions
    • From Business Strategy to Purchasing Strategy
    • Purchasing Organization
    • Purchasing Performance Measurement
    • Case Studies

    2. Sourcing and Procurement Process

    • Market Analysis
    • Risk Management
    • Defining Specification
    • Supplier Selection
    • Contracting
    • Ordering
    • Expediting
    • Supplier Evaluation
    • Supplier Development
    • Case Studies

    3. Introduction to Inventory Management

    • Function of Inventory in the supply chain
    • Types of Inventory
    • Costs of Inventory
    • KPI’s for stock evaluation
    • ABC – XYZ classification
    • Beer Game

    4. Forecasting

    • Different Forecasting methods
    • Forecast Accuracy
    • Case Study

    5. Inventory Strategies and Lot Sizing

    • Push/Pull Strategy and Decoupling Point
    • Safety stock calculation
    • Inventory Control
    • Bullwhip Effect
    • Risk pooling Game
    • Static and dynamic lotsizing problems
    • Material Requirement Planning and Advanced Planning Systems
    • Case Study

    Recommended supplemental readings:

    Bowersox Donald J., Closs David J., Cooper M. Bixby: Supply Chain Logistics Management; 2nd edition; McGraw Hill; 2012

    Russell Roberta S., Taylor Bernard W.: Operations Management - Along the Supply Chain, International Student Version, 8th edition; John Wiley & Sons; 2014

    Simchi-Levi David, Kaminsky Philip, Simchi-Levi Edith: Designing and Managing the Supply Chain – Concepts, Strategies and Case Studies; 3rd edition; McGraw-Hill; 2008 (new edition 11/2015) 

    Stadtler, H.; Kilger, C.: Supply Chain Management and Advanced Planning – Concepts, Models, Software and Case Studies. Springer 2008.

    Stock, James R.; Lambert Douglas M.: Strategic Logistics Management. McGraw-Hill, 4th edition (2001)

    Vollmann Thomas E., Berry William L., Whybark D. Clay, Jacobs, F. Robert: Manufacturing Planning and Control Systems for Supply Chain Management; McGraw-Hill Professional; 2011 Kindle Edition

    Weele, Arjan J. van: Purchasing & Supply Chain Management, 5th ed., Thomson (2010)

    O'Brien, Jonathan: Category Management in Purchasing, Kogan Page (2009)

    Burt, David N.: World Class Supply Management: The Key to Supply Chain Management, 7th ed, Mcgraw Hill Book Co (2003)

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