10631444 – Design and Management of Supply Chains

An-Najah National University, Department of Industrial Engineering

Fall 2021/2022
Problem-Based Learning (PBL) Course
Instructor:
Yahya Saleh Salahat
Industrial Engineering Department
Faculty of Engineering &IT
Office No. 2600 (temporarily) Engineering Building, 2nd Floor
Telephone: +970 (9) 2345113, Ext. 2520
E-mail: ysaleh@najah.edu
Office Hours: Will be posted on my office door or by appointment via email.
Course Schedule: Sunday and Wednesday, (11:00-12:30 PM).
Class Room: 111060 (Engineering Building, 1st Floor).
Course Summary
Supply chain management deals with the management of materials, information and financial flows in
a network consisting of suppliers, manufacturers, distributors, and customers. The topics that are
covered in this course include logistics network configuration, risk pooling and multi-echelon
inventory systems, value of information in supply chains, coordination of the supply chain using
contracts and other mechanisms, distribution strategies for the supply chain and product design for
supply chain efficiency.

Prerequisites: Operations Research I (10631413), Production Planning & Inventory Control

(10631431)

Course Objectives
 Introduce basic notions of supply chains.
 Teach concepts that play a key role in supply chains: risk pooling, centralization vs.
decentralization, information distortion/bullwhip effect and postponement.
 Introduce solution techniques that can be applied for supply chain planning.
 Build appreciation on several aspects of supply chains.

Student Performanc
Outcome e Contribution
Course Learning Outcomes (CLO's)
s Indicators %
(SO's) (PI's)
i Define, understand and analyze the key features of
supply chains and the challenges posed by the
7 7.2 30%
integration of supply chains within and across
organizations.
ii Ability to design a supply chain network. 2 2.1 10%
ii Ability of planning and coordinating demand and supply 1 1.1 15%

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i in a supply chain.
iv Ability of planning and managing inventories in a
1 1.2 25%
supply chain.
v Ability to design a transportation networks for the
2 2.4 10%
supply chain.
vi Ability of managing cross-functional drivers and
understand the pricing and revenue management in a 1 1.2 10%
supply Chain.

Course Textbook
 (CM) Chopra, S., and Meindl, P., Supply Chain Management: Strategy, Planning and Operation,
Prentice Hall, 6th Edition, 2016.
Supplemental Texts
 (SPP) Silver, E.A., Pyke, D., and Peterson, R., Inventory Management and Production Planning
and Scheduling, John Wiley, 1998, 3rd Edition.
 (SKS) Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E., Designing and Managing the Supply
Chain: Concepts, Strategies, and Cases, 2nd edition, McGraw-Hill, 2003 ISBN: 0-07-119896-2.
 (NS) Nahmias, S., Production and Operations Analysis, 5th edition, Mc Graw Hill College, ISBN-
13: 978-0072865387, ISBN-10: 0072865385

Teaching Philosophy
 Emphasize the practical relevance and value of a topic as importantly as the content of the topic
 Develop and cultivate students’ interests in SCM and critical thinking, to bridge the gap between
classroom learning and real world application
 Leverage my research interests and expertise to introduce the most recent advancement, and
meet the evolving needs and challenges of today’s supply chains.
How to Succeed in This Course
• Be a motivated learner
• Be a proactive learner
• Be a responsible learner
Grading
All exams are written, closed-book-and-notes exam covering the all the material covered in class up to
that date.
 Two Exams (15% and 15%) –
 Exam I Date: (Sunday 10/10/2021 in class)
 Exam II Date: (Sunday 7/11/2021 in class)
 Term paper (10%)-Week 10
 Case Study (10%)-Week 14
 Project (20%)-Week 15
 Final Exam (30%) – Week 16
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Course Format: Class will be a mix of lectures, in-class exercises, case discussions and presentations.

Team Project
Description:
Each team of students will select one organization from a local Palestinian industry (service and
manufacturing sectors) that they are familiar with to be assessed. More specifically, each team should
identify an SCM and logistics-related problem, analyze the basic operational process of this organization
including purchasing, suppliers, logistics, information systems, inventory management, quality and
customer service issues. Write a minimum 20-25 page analysis report on the following:
 Location and layout strategies
 How emerging technologies has transformed their production/service systems
 The process of their online trade
 The company green initiatives include green logistics and sustainability
 Customers
 Suppliers' performance and/or capabilities
 Competitors
 Marketing strategies
 Inventory management
 Warehousing systems
 Lean and Six Sigma
 Financial Statements Analysis and discuss how the company has improved their financial
performance.
 Solution of the identified problem.
Each team will write a report (more details will be given on the report structure requirements) and will
create a 15-minute presentation to be delivered in Week.15
Assessment Criteria
 Final Written Report will be assessed based on the following criteria:

 The report was handed over on time

 Report format and organization
 Analytical abilities and/or other skills are reliable in the report
 The literature survey and the bibliography are sufficient
 The project was capable in solving faced problems
 Documenting the references and the information sources are addressed

 Final Report Presentation will be assessed based on the following criteria:

 Speaking skills (delivery, eye contact, body language, posture, volume)

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  Content (introduction, topic development, conclusion)
 Ability to answer questions

Course Conduct Policy

1. All students and the instructor of the course are expected to

 Respect each other.

 Help each other in creating a suitable environment for learning.
 Help each other to have fair assessment of the work done.

2. Attendance is mandatory and students who will miss a class should inform the instructor in advance.
Class participation is required and students may need to prepare before the class.
3. Academic misconduct is not tolerated, and violations will be dispatched in accordance with the
University policy.
4. All exams will be in class, closed books and notes. In each written exam, you will be asked to sign the
following statement:

Academic integrity is expected of all students of An-Najah National University at all times, whether
in the presence or absence of members of the faculty. Understanding this, I declare that I shall not
give, use or receive unauthorized aid in the examination.
5.   Discussion of the course material and working in groups are effective ways of learning.  Homework

problems will be suggested, collected and occasionally will be graded. However, this does not mean
that you can copy the homework from one of your colleagues. You can discuss the solution of a
problem with your friends, but you should be alone, without any written solution in front of you, when
you actually solve the problem. It is extremely important to understand the value of this exercise in
the process of learning.
6. In the unlikely event the instructor does not show up at the beginning of the class, please wait for 10
minutes before you decide to leave.
7. Class attendance and participation is of a great value as it brings different viewpoints that enhance
everyone’s knowledge in the class. Students are highly encouraged to attend all class sessions in order
to get the most benefit from their time spent in traveling to the university, the expenses of tuition fees
and many other activities given up to obtain the master degree. To this end, attendance will be taken
at the end of each session.
8. Correct English spelling, syntax and grammar are expected from all students in exams and any other
submitted printed or hand-written materials.

Course Outline(*)
1. Introduction
2. Inventory Management – Review and Further
3. Multi-Echelon Inventory Systems: Risk Pooling, Issues of Centralization/Decentralization
4. Supply Chain Coordination – Contracting
5. Coordinated Product and Supply Chain Design - Postponement
6. Issues of Information
 Bullwhip effect
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  Role of information
7. Other issues:
 Logistics Network Configuration
 Strategic Alliances - Third Party Logistics
 Outsourcing

(*): A weekly detailed outline of the course topics, readings and resources is provided below.

1. Week 1
Introduction (Going over the course outline + 1 hour lecture)
Required Reading: Chapter 1-3, Chopra and Meindl (2007)

2. Week 2
Issues of Cycle Inventory - Review (ABC Analysis, EOQ), Joint Replenishment Problem.
Required Reading: Chapter 10.1-10.2, Chopra and Meindl (2007)
Optional Reading: Chapter 4, Nahmias (2005)
Optional Reading: Chapter 5, Silver et al (1998)
Project, case study and term paper teams’ formation
Term Paper assigned to teams
Case Studies assigned to teams.

3. Week 3
Issues of Cycle Inventory – Multi-Echelon Inventory Problem under Continuous Review (Two-
Stage), Price Discounting
Required Reading: Chapter 10.3-10.5, Chopra and Meindl (2007)
Required Reading: Chapter 12.1-12.3, Silver et al (1998) – (a copy is available at the library)
Optional Reading: Monahan (1984)
4. Week 4
Issues of Cycle Inventory – Price Discounting (continued)
Role of Games – Cournot’s Oligopoly Game; Stackelberg Game
5. Week 5
Exam I (Sunday 10/10/2021 in class)
Issues of Optimal Inventory under Uncertainty – Review (Newsvendor Problem)
Required Reading: Chapter 12.1-12.2 (up-to page 354, including the related material in the
appendix of Chapter 12), Chopra and Meindl (2007)
Optional Reading: Chapter 5.3, Nahmias (2005)
Optional Reading: Chapter 10, Silver et al (1998)

6. Week 6
Contracting structures and Coordination issues – Application to the single-period, stochastic
demand environment
Required Reading: Chapter 14.1, 14.5, Chopra and Meindl (2007)
Optional Reading: Remaining parts of Chapter 14, Chopra and Meindl (2007)
7. Week 7
Contracting structures and Coordination issues (continued)
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 Required Reading: Reading: Pasternack, B. A., “Optimal pricing and return policies for
perishable commodities”, Marketing Science, 4, 166-176 (1985) – Check WEB
8. Week 8
Transportation issues in Supply Chain.
Required Reading: Chapter 13, Chopra and Meindl (2007)
Optional Reading: Lee, C., “The Economic Order Quantity for Freight Discount Costs”, IIE,
318-320 (1986).
Optional Reading: Chapter 3, Simchi_Levi et al (2003)
Optional Reading: Chapter 7-9, Silver et al (1998)
Exam II (Sunday 7/11/2021 in class)
9. Week 9
Review: Managing uncertainty through safety inventories.
Issues of inventory aggregation – Risk-pooling, Advantages of Centralization, Distribution
Systems
Required Reading: Chapter 11, Chopra and Meindl (2007)
Optional Reading: Eppen, G. P., “Effects of centralization on expected costs in a multi-location
newsboy Problem”, Management Science, 25, pp. 498-501, (1979).
10. Week 10
Distribution Systems (continued).
Required Reading: Nozick, L.K. and Turnquist, M.A., “Inventory, Transportation, Service
Quality and the Location of Distribution Centers”, EJOR, Vol: 129, 2001, pp. 362-371.
Term Paper Presentations in class

11. Week 11
Distribution Systems – Overview.
12. Week 12
Bullwhip effect
Required Reading: Chapter 17, Chopra and Meindl (2007)
Optional Reading: Lee, H.L. Padmanabhan, V. and Whang, S., “Information Distortion in a
Supply Chain: The Bullwhip Effect”, Management Science, Vol: 43, No: 4, 1997, pp. 546-558.
13. Week 13
Inventory Positioning - Multi-Echelon Stochastic Inventory Problem under Continuous Review
Optional Reading: Chapter 12.4, Silver et al (1998)
14. Week 14
Issues of Postponement
Required Reading: Chapter 11, pp. 328-329, Chapter 12, pp. 362-367, Chopra and Meindl
(2007).
Case Study Solution Submission
Wrap-up + Other supply chain issues.
15. Week 15
Term Project Presentations and Report Submissions
16. Week 16
Final Exam (date and venue: TBD)

Chopra and Meindl (2007) – Chopra, S., and Meindl, P., Supply Chain Management: Strategy,
Planning and Operation, Prentice Hall, 3rd Edition, 2007.

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Nahmias (2005) – S. Nahmias, Production and Operation Analysis, 5th edition, McGraw Hill/Irwin,
2005.

Silver at al (1998) – Silver, E.A., Pyke, D., and Peterson, R., Inventory Management and Production
Planning and Scheduling, John Wiley, 1998, 3rd Edition.

Simchi-Levi et al (2003) – Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E., Designing and
Managing the Supply Chain, McGraw-Hill Irwin, 2003, 2nd edition

Instructor reserves the right to alter the syllabus where warranted