Supply Chain Management

The course deals with the coordination of information and product flows in supply chains. First, interdependencies between the different stages of a supply chain are identified, and then methods for coordinating ordering, production and consumption at these stages are introduced. The course then discusses problems incomplete information may cause in supply chains and proposes tools for mitigating these problems. Finally, different contractual mechanisms for coordinating the supply chain are discussed.

After participating in this course, students should be able to understand and describe planning problems that occur in supply chains and to support solving these problems with the help of mathematical models. In addition, students should be able to classify all planning problems covered in the course within a general business context.

Outline:

1. Introduction

2. Coordination of order and production quantities

2.1 The Joint Economic Lot Size Problem

2.2 The role of batch shipments in the management of inventories

3. Information management in supply chains

3.1 The influence of demand uncertainty on cost and services

3.2 Periodic stock control

3.3 Continuous stock control

3.4 The newsvendor model

3.5 The bullwhip effect

4. The Beer Game (simulation exercise)

5. Incentive mechanisms and contracts in supply chains

5.1 The double marginalization problem

5.2 Coordinating supply chains with discounts

5.3 Coordinating supply chains with buyback contracts

The two courses “Supply Chain Management” and “Operational Production Management” jointly constitute the elective module “Materials Management, Production and Logistics” (6 CP), which can be attended within various master degree programs of the Department of Law and Economics.

Type of exam: written exam, date available in TUCaN.