TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG

KHOA QUẢN TRỊ KINH DOANH

THE COURSE OF
SUPPLY CHAIN MANAGEMENT

706018– QUẢN TRỊ CHUỖI CUNG ỨNG CĂN BẢN

 Lecturer’s Info
LÊ PHƯỚC LUÔNG EDUCATION BACKGROUND
 2007 Bachelor of Arts – Industrial
Email: [email protected] Management (HCMUT)
 2012 Master of Business Administration
(Umea University, Sweden)
Production & Operations Management Dept. -  2020 Doctor of Applied Engineering in
School of Industrial Management, Ho Chi Supply chain (Quebec University,
Minh City University of Technology Canada)
Visiting lecturer at Ton Duc Thang University
INDUSTRIAL EXPERIENCES
 2007 Sales supervisor at Kimberly –
Clark
 2014 Process improver at Thien Tu call
Research Interests: Supply chain center
management, Lean production,  2020 Purchasing & inventory manager
Operations management. at Innocar Canada
Course Objective
This course enables learners to identify the fundamental concepts and methods that inform supply chain
management within a variety of organizational settings as well as apply the concept of integrated logistics and
supply chain management to solve an organizational problem.

Learning Outcomes
Identify the key issues and challenges in Supply chain management;
Explain the basic concepts and methods in inventory management
Apply information technology in supply chain management
Apply modeling skills and problem-solving tools to real-world cases, with an emphasis on how to find a
balance between total cost and service level
Evaluate the advantages and disadvantages of outsourcing;
Evaluate the risks in global transportation management;
COURSE ASSESSMENT

• Process Evaluation 1: 20%

• 4 in-class quizzes
• Process evaluation 2: 30%
• Groupwork
• Final Exam: 50%
• Written exam (chapters 1 7)
• Open exam for English class & Closed-book exam for Vietnamese
class
 Process Evaluation 2: Group assignment 30%
Each group (see the team list) prepares the report (word file) and presentation (powerpoint file - 45
minutes to 1 hour) for one of the below topics. Your group is required to read carefully the book chapter
related to the topic. You can use the slides of this course for your presentation, but you have to modify the
contents with your innovations in presenting the chapter (for example: a play, or a game, or a case
discussion with all students in class, or any other innovative approach). Your report may focus on a case
analysis with the relevant theories mentioned in the chapter. You must submit the report and the
presentation files in E-learning at least 1 day before the presentation.
• Team 1: Designing distribution networks and applications to online sales (Chapter 4, presented
in week 7).
• Team 2: Coordination in a Supply Chain (Chapter 5, presented in week 9).
• Team 3: Transportation in a Supply Chain (Chapter 6, presented in week 11).
• Team 4: Sourcing decisions in a Supply Chain (Chapter 7, presented in week 13).

• Note: The chapter numbers in this course differ from the book’s. You have to see the chapter titles to find the right chapter numbers in the
book for your reading.
 Course Schedule
Week Lesson Activities Actor
1, 2 Course introduction & Chapter 1 In-class quiz Mr. Luong
3, 4 Chapter 2 In-class quiz Mr. Luong
5, 6 Chapter 3 In-class quiz Mr. Luong
7 Chapter 4 Presentation Team 1
8 Chapter 4 (continued) In-class quiz Mr. Luong
9 Chapter 5 Presentation Team 2
10 Chapter 5 (continued) In-class quiz Mr. Luong
11 Chapter 6 Presentation Team 3
12 Chapter 6 (continued) In-class quiz Mr. Luong
13 Chapter 7 Presentation Team 4
14 Chapter 7 (continued) In-class quiz Mr. Luong
15 Revise Mr. Luong
 RULES
1. NO MOBILE PHONES IN CLASS.
2. NO MORE THAN 15 MINUTES LATE
3. GET A BONUS FOR YOUR ATTENDANCE OF ALL CLASSES (+0.5 POINT), AND BEING ACTIVE FOR
CLASS DISCUSSION (+0.5 POINT). THE BONUS IS APPLIED FOR PROCESS EVALUATION 1 AND 2.
4. YOU ARE NOT ALLOWED TO TAKE THE FINAL EXAM IF YOU ARE ABSENT FOR MORE THAN 3
CLASSES.
 TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG
KHOA QUẢN TRỊ KINH DOANH

CHAPTER 1
UNDERSTANDING THE SUPPLY CHAIN
MANAGEMENT

706018– QUẢN TRỊ CHUỖI CUNG ỨNG CĂN BẢN

 LEARNING OUTCOMES

• 1.1 What Is a Supply Chain?

• 1.2 The Objective of a Supply Chain
• 1.3 The Importance of Supply Chain Decisions
• 1.4 Decision Phases in a Supply Chain
• 1.5 Process Views of a Supply Chain
• 1.6 Examples of Supply Chains

12/18/2023 302053 – PHÁP LUẬT ĐẠI CƯƠNG 10

706018– QUẢN TRỊ CHUỖI CUNG ỨNG CĂN BẢN
Traditional View: Logistics in the Economy

• Freight Transportation $352, $455 Billion

• Inventory Expense $221, $311 Billion
• Administrative Expense $27, $31 Billion
 Logistics Related Activity 11%, 10.5% of GNP

Source: Cass Logistics

1-11
 Traditional View: Logistics in the Manufacturing Firm

Profit
• Profit 4% Logistics
Cost

Marketing
• Logistics Cost 21% Cost

• Marketing Cost 27%

Manufacturing
Cost
• Manufacturing Cost 48%
1-12
 Supply Chain Management: The Magnitude in the Traditional View

• Estimated that the grocery industry could save $30 billion (10% of
operating cost) by using effective logistics and supply chain strategies
• A typical box of cereal spends 104 days from factory to sale
• A typical car spends 15 days from factory to dealership

• Laura Ashley turns its inventory 10 times a year, five times faster than
3 years ago

1-13
 Supply Chain Management:
The True Magnitude

• Compaq estimates it lost $.5 billion to $1 billion in sales because

laptops were not available when and where needed
• When the 1 gig processor was introduced by AMD, the price of the
800 mb processor dropped by 30%
• P&G estimates it saved retail customers $65 million by collaboration
resulting in a better match of supply and demand

1-14
 What is a Supply Chain?

• Introduction
• The objective of a supply chain

Supplier Manufacturer Distributor Retailer Customer

1-15
 What is a Supply Chain?

• All stages involved, directly or indirectly, in fulfilling a customer

request
• Includes manufacturers, suppliers, transporters, warehouses,
retailers, and customers
• Within each company, the supply chain includes all functions involved
in fulfilling a customer request (product development, marketing,
operations, distribution, finance, customer service)

1-16
 What is a Supply Chain?

• Customer is an integral part of the supply chain

• Includes movement of products from suppliers to manufacturers to
distributors, but also includes movement of information, funds, and
products in both directions
• Probably more accurate to use the term “supply network” or “supply
web”
• Typical supply chain stages: customers, retailers, distributors,
manufacturers, suppliers
• All stages may not be present in all supply chains
(e.g., no retailer or distributor for Dell)
1-17
 What is a Supply Chain?
Customer wants
P&G or other Jewel or third Jewel
detergent and goes
manufacturer party DC Supermarket
to Jewel

Chemical
Plastic Tenneco
manufacturer
Producer Packaging
(e.g. Oil Company)

Chemical
Paper Timber
manufacturer
Manufacturer Industry
(e.g. Oil Company)

1-18
 Flows in a Supply Chain

Information

Product
Providers Customer
Funds

1-19
 The Objective of a Supply Chain

• Maximize overall value created

• Supply chain value: difference between what the final product is
worth to the customer and the effort the supply chain expends in
filling the customer’s request
• Value is correlated to supply chain profitability (difference between
revenue generated from the customer and the overall cost across the
supply chain)

1-20
 The Objective of a Supply Chain
• Example: Dell receives $2000 from a customer for a computer
(revenue)
• Supply chain incurs costs (information, storage, transportation,
components, assembly, etc.)
• Difference between $2000 and the sum of all of these costs is the
supply chain profit
• Supply chain profitability is total profit to be shared across all stages
of the supply chain
• Supply chain success should be measured by total supply chain
profitability, not profits at an individual stage
1-21
 The Objective of a Supply Chain

• Sources of supply chain revenue: the customer

• Sources of supply chain cost: flows of information, products, or funds
between stages of the supply chain
• Supply chain management is the management of flows between and
among supply chain stages to maximize total supply chain
profitability

1-22
 Decision Phases of a Supply Chain

• Supply chain strategy or design

• Supply chain planning
• Supply chain operation

1-23
 Supply Chain Strategy or Design
• 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

1-24
 Supply Chain Planning

• Definition of a set of policies that govern short-term operations

• Fixed by the supply configuration from previous phase
• Starts with a forecast of demand in the coming year

1-25
 Supply Chain Planning

• Planning decisions:
• Which markets will be supplied from which locations
• Planned buildup of inventories
• Subcontracting, backup locations
• Inventory policies
• Timing and size of market promotions
• Must consider in planning decisions demand uncertainty, exchange
rates, competition over the time horizon

1-26
 Supply Chain Operation
• Time horizon is weekly or daily
• Decisions regarding individual customer orders
• Supply chain configuration is fixed and operating
policies are determined
• Goal is to implement the operating policies as
effectively as possible
• Allocate orders to inventory or production, set order
due dates, generate pick lists at a warehouse, allocate
an order to a particular shipment, set delivery
schedules, place replenishment orders
• Much less uncertainty (short time horizon)
1-27
 Process View of a Supply Chain
• Cycle view: processes in a supply chain are divided into a series of
cycles, each performed at the interfaces between two successive
supply chain stages
• Push/pull view: processes in a supply chain are divided into two
categories depending on whether they are executed in response to a
customer order (pull) or in anticipation of a customer order (push)

1-28
Cycle View of Supply Chains
Customer
Customer Order Cycle

Retailer
Replenishment Cycle

Distributor

Manufacturing Cycle

Manufacturer
Procurement Cycle
Supplier
1-29
 Cycle View of a Supply Chain
• Each cycle occurs at the interface between two successive
stages
• Customer order cycle (customer-retailer)
• Replenishment cycle (retailer-distributor)
• Manufacturing cycle (distributor-manufacturer)
• Procurement cycle (manufacturer-supplier)
• Cycle view clearly defines processes involved and the
owners of each process. Specifies the roles and
responsibilities of each member and the desired outcome
of each process.

1-30
Push/Pull View of Supply Chains
Procurement, Customer Order
Manufacturing and Cycle
Replenishment cycles

PUSH PROCESSES PULL PROCESSES

Customer
Order Arrives
1-31
 Push/Pull View of Supply Chain
Processes
• Supply chain processes fall into one of two categories depending on
the timing of their execution relative to customer demand
• Pull: execution is initiated in response to a customer order (reactive)
• Push: execution is initiated in anticipation of customer orders
(speculative)
• Push/pull boundary separates push processes from pull processes

1-32
 Push/Pull View of Supply Chain
Processes
• Useful in considering strategic decisions relating to supply chain
design – more global view of how supply chain processes relate to
customer orders
• Can combine the push/pull and cycle views
• The relative proportion of push and pull processes can have an impact
on supply chain performance

1-33
 Supply Chain Macro Processes in a
Firm
• Supply chain processes discussed in the two views can be classified
into:
• Customer Relationship Management (CRM)
• Internal Supply Chain Management (ISCM)
• Supplier Relationship Management (SRM)
• Integration among the above three macro processes is critical for
effective and successful supply chain management

1-34
 Examples of Supply Chains

• Gateway
• Zara
• McMaster Carr / W.W. Grainger
• Toyota
• Amazon / Borders / Barnes and Noble
• Webvan / Peapod / Jewel

What are some key issues in these supply chains?

1-35
 Gateway: A Direct Sales Manufacturer
• Why did Gateway have multiple production facilities in the US?
What advantages or disadvantages does this strategy offer
relative to Dell, which has one facility?
• What factors did Gateway consider when deciding which plants
to close?
• Why does Gateway not carry any finished goods inventory at its
retail stores?
• Should a firm with an investment in retail stores carry any
finished goods inventory?
• Is the Dell model of selling directly without any retail stores
always less expensive than a supply chain with retail stores?
• What are the supply chain implications of Gateway’s decision to
offer fewer configurations? 1-36
 7-Eleven
• What factors influence decisions of opening and closing stores?
Location of stores?
• Why has 7-Eleven chosen off-site preparation of fresh food?
• Why does 7-Eleven discourage direct store delivery from vendors?
• Where are distribution centers located and how many stores does
each center serve? How are stores assigned to distribution
centers?
• Why does 7-Eleven combine fresh food shipments by temperature?
• What point of sale data does 7-Eleven gather and what information
is made available to store managers? How should information
systems be structured?

1-37
W.W. Grainger and McMaster Carr
• How many DCs should there be and where should they be located?
• How should product stocking be managed at the DCs? Should all DCs carry all
products?
• What products should be carried in inventory and what products should be left at
the supplier?
• What products should Grainger carry at a store?
• How should markets be allocated to DCs?
• How should replenishment of inventory be managed at various stocking locations?
• How should Web orders be handled?
• What transportation modes should be used?

1-38
 Toyota

• Where should plants be located, what degree of flexibility should

each have, and what capacity should each have?
• Should plants be able to produce for all markets?
• How should markets be allocated to plants?
• What kind of flexibility should be built into the distribution system?
• How should this flexible investment be valued?
• What actions may be taken during product design to facilitate this
flexibility?

1-39
 Amazon.com
• Why is Amazon building more warehouses as it grows? How many
warehouses should it have and where should they be located?
• What advantages does selling books via the Internet provide? Are
there disadvantages?
• Why does Amazon stock bestsellers while buying other titles from
distributors?
• Does an Internet channel provide greater value to a bookseller like
Borders or to an Internet-only company like Amazon?
• Should traditional booksellers like Borders integrate e-commerce
into their current supply?
• For what products does the e-commerce channel offer the
greatest benefits? What characterizes these products?

1-40
 Summary of Learning
Objectives
• What are the cycle and push/pull views of a supply chain?
• How can supply chain macro processes be classified?
• What are the three key supply chain decision phases and what is the
significance of each?
• What is the goal of a supply chain and what is the impact of supply
chain decisions on the success of the firm?

1-41
THE END

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