CASE WESTERN RESERVE UNIVERSITY
Weatherhead School of Management
OPMT/MKMR 475 - Section 1 Prof. Ballou
Wed 10AM-12PM Fall 2002
Text: Ronald H. Ballou, Business Logistics Management, 4th ed. (Upper Saddle River, NJ: Prentice-Hall, Inc., 1999)
Tentative schedule
Ses-sion / Date / Topic / Preparation1 / 8/28 / Introduction
-Definition, scope and importance of supply chain management
-Mission
-Relationship to operations and marketing
-Cost to the firm
-Key activities
-Genesis of logistics thought
-Emerging directions / Handout: Learning by the case method
Read: Chap. 1
2 / 9/04 / Logistics Strategy and Planning
-Corporate strategy
-Logistics strategy
-Strategic, tactical, & operational planning
-Major planning areas
-When to plan
-Guidelines for strategy formulation
-ROLA / Read: Chap. 2
Problems: 1-12; 2-2,7,9 (Submit 9/11)
Case study: Roscoe Corp. (For in-class discussion)
Ses-sion / Date / Topic / Preparation
Block #1¾Customer Service Goals
3 / 9/11 / Customer Service and the Product
-Determining the sales-service function
-Setting service levels
-The product life cycle and the 80-20 curve
-Product characteristics and logistics system design
-Logistics costs in pricing structures
-Role of packaging in system design / Read: Chap. 3 & 4
Problems: 3-3,11,14; 4-5,7,9 (Submit 9/18)
Block #2¾Transport Strategy
4 / 9/18 / Transportation Fundamentals
-Transport and service offerings
-Performance characteristics
-Legal status of transport regulation
-Mode performance and relative costs
-Transport rate profiles by volume and distance / Read: Chap. 6
Problems: 6-9,10,16,21† (Submit 9/25)
Presentation #1: Maxwell Packing Co.
5 / 9/25 / Transportation Decisions
-Overview of transport decisions
-Transport service selection
-Carrier routing
-Logical methods for dispatching
-Large-scale methods for vehicle scheduling / Read: Chap. 7, pp. 185-211
Case study: MetroHealth Medical Center (For in-class discussion)
Problems:‡ 7-4,5,6 and Orion Foods (Submit 10/02)
6 / 10/02 / Transportation Decisions
-Shipment consolidation
-Order entry and inventory control
-Order processing priorities and customer service / Read: Chap. 8
Presentation #2: Ropax, Inc.
Block #3¾Inventory Strategy
7 / 10/09 / Storage and Handling System Basics
-Storage and handling function
-Storage alternatives
-Materials handling considerations
-Storage system costs and rates
Class cancelled! / Read: Chap. 12, pp. 437-453
Problems: 7-3,8; 12-2,3,4 (Submit 10/23)
Note: Due to building ceremonies, no class. Do the reading assignment and review slides on Blackboard. We will not discuss this topic in class.
8 / 10/16 / MIDTERM EXAMINATION
†In Figure 6-10, the note at C should read “Drop off 18,000 lb. from A or B”.
‡Note: Answer the Problems, not the Questions at the end of chapter 7.
Ses-sion / Date / Topic / Preparation9 / 10/23 / Storage and Handling Decisions
-Site selection
-Sizing the facility
-Facility configuration
-Space layout
-Product layout
-Dock design
-Setting productivity standards / Read: Chap. 12, pp. 454-475
Problems: 12-6,7,8,9 (Submit 10/30)
Presentation #3: Logistics in E-Business
10 / 10/30 / Inventory Management
-Inventory-to-sales relationship
-Distribution requirements planning
-Turnover ratio
-ABC classification by item and by location
-Push vs. pull concepts
-Cycle stock and safety stock
-General pull methods / Read: Chap. 10, pp. 350-355
Problem: 10-19 (Submit 11/06)
Block #4¾Location Strategy
11 / 11/06 / Facility Location
-Plant vs. warehouse location
-Relevant costs and their nature
-Center of gravity approach / Read: Chap. 13, pp. 483-494
Presentation #4: Polariod
12 / 11/13 / Facility Location
-Algorithmic approaches
-Mixed integer programming
-Simulation
-Heuristic methods
-Dynamic location analysis / Read: Chap. 13, pp. 494-516
Problems: 13-1, 2 and Ohio Auto & Driver's License Bureaus (Submit 11/20)
13 / 11/20 / Facility Location
-Uniqueness of retail location problem
-Weighted checklist
-Modified gravity model
-Regression analysis / Read: Chap. 13, pp. 516-588
Problems: 13-6,9,10,12 (Submit 11/27)
Presentation #5: Collaborative Logistics
14 / 11/27 / The Network Planning Process
-The network planning problem
-Data for network planning
-Tools for analysis
-Conducting the analysis / Read: Chap. 14
Problems: 14-5,6,8,9 (Submit 12/04)
15 / 12/04 / Summary and Review
-Work selected homework problems
-Summarize course
-Course evaluation / Presentation #6: Terrorism and the Supply Chain
12/11 / FINAL EXAMINATION
Objectives of the Course
The course will attempt to achieve two objectives: (1) to develop your skills in solving specific types of logistics problems, and (2) to improve your capabilities to deal with unstructured problems of the type encountered by intermediate and top managers. Skill development is accomplished through lecturers, homework, and examination. These skills are valuable for addressing specific problems where given technology is useful in treating them. On the other hand, broader analytical skills are enhanced using case studies and class discussion, which allow problem solving to be placed in a larger context. Defining a framework for analysis, applying concepts and principles, and commenting on the analysis of others help to achieve the second objective. Of course, these objectives interplay throughout the course of study.
Course Policies
Six cases studies and status reports will be assigned throughout the course. Your group will present your analysis to the class for one of these cases or status reports. A write up of the analysis by your group is to be handed in for grading. Other groups not presenting will be expected to have also prepared and analyzed the case study, and may be called upon in class to challenge the analysis of the presenting group. However, these secondary case analyses will not be required to be handed in. For the status reports, the non-presenting class members will be expected to actively participate in the discussion. All study group reports are to not exceed 10 double-spaced typewritten pages in 12-point font, less appendix materials.
Homework problems may be submitted on the date indicated. They will be reviewed to provide feedback. No grade will be given and submission of the homework is optional. The purpose of the homework is to provide extra practice in applying the concepts presented in the textbook and discussed in class. Answers to the problems will be handed out in class or posted on Courseware at the time the problems are submitted.
As a general exercise on supply channel design, the R & T Wholesalers case study is assigned to each study group. The case will be primarily graded based on the lowest routing cost that can be achieved. A short report is to be prepared indicating (1) the number of trucks needed and their type, (2) the truck routes with stop sequence, (3) the schedule of truck usage throughout the month, and (4) the schedule for using the crews. Where study teams designs are similar, the quality of the arguments favoring a particular solution will be determining. . The winning report will be used as the future teaching note for the case with proper credit given to the reporting team members.
Re-grading of homework, case studies, status reports, and examinations will only be considered under exceptional circumstances such as the scores are added incorrectly, an oversight of an important fact, etc. Judgment calls, to some extent, are based on the relative ranking of the work within the class. Should any paper be resubmitted, it must be accompanied by a written statement of the issue to be reconsidered.
Ethics of conduct follow the guidelines of the Weatherhead School of Management.
Grading
Your course grade will be determined from the following weights.
Attendance and class participation / 10%Case study or status report / 20
R & Wholesalers case / 20
Midterm exam / 25
Final exam / 25
100%
Handout Materials Checklist
1. / Learning by the case method2. / Roscoe Corp.
3. / Maxwell Packing Co.
4. / Ropax, Inc.
5. / Polaroid Corporation
6. / R & T Wholesalers
Instructor Availability
My office is PBLB 332, where I am available before class and by appointment. Since many questions can be answered by telephone or by e-mail, I may be reached at (216) 368-3808 (office) or (440) 498-0666 (home). E-mail: .
Guideline Study Questions for the Case Studies and Status Reports
1. Roscoe Corp.
a. What questions should Smith pose to his Staff Assistant to provide further information on which to base a decision?
b. As Smith's Staff Assistant, based on information presented in the case, would you recommend the use of the new rate? Why?
2. Maxwell Packing Co.
Consider the questions at the end of case
3. Ropax, Inc.
a. Is Ropax's strategy sound?
b. Is Ropax a sound business?
c. What should Dan Rose do about the price war?
d. If this threat is surmounted, what avenues of expansion look most promising for Ropax?
4. Polaroid Corporation: European Distribution System
a. How do Polaroid’s distribution needs vary by subsidiary in Europe? What are the implications of these differences?
b. Should Polaroid implement a direct distribution strategy in Europe? If not, what alternative do you recommend?
c. How should your recommendation be implemented? What implementation challenges do you foresee? How would you address those challenges?
d. What other changes do you recommend Polaroid make to its European logistics system?
5. Logistics in E-Business
This report is to examine the impact that the quickly evolving technology of the Internet is having on logistics, especially physical distribution, i.e., “the last mile.” The effect on sales has been quite clear, but what is the impact on distribution strategy and operations? Should companies have a different logistics strategy as compared with their existing distribution channels? What role should .com logistics companies play in a firm’s logistics strategy? Overall, the report should address the key questions that a logistics manager would ask about E-business in his or her company: Should I be concerned about the new technology of the Internet? What might the benefits—financial, customer service, operational, etc.—be for logistics and how can they be identified? What specific logistics decisions need to be made when operating in the E-business environment and how should I make them? What are the risks to logistics for operating in the E-business environment? Now that the initial enthusiasm for E-business has waned, what is the proper role of E-business and logistics in it?
6. Collaborative Logistics within the Firm
This report is to explore the issues surrounding the emerging opportunities in logistics associated with managing the supply chain across functional boundaries. Collaboration among supply channel members is at the heart of this new type of management. Critical questions to address include: What current levels of collaboration are taking place among participants in today’s supply chains? What are the benefits—financial, operational, customer service, and others—that can be achieved with collaboration that are not now being realized? What factors must be in place to form true collaboration with supply chain partners? What are the common problems that impeded the achievement of supply chain collaboration? What steps can a company take to achieve supply chain collaboration? Restrict your report to collaboration among channel members within the firm, such as collaboration between logistics and production, logistics and marketing, logistics and finance, etc.
7. Terrorism and the Supply Chain
Considering the terrorists threats here and around the world, this report is to explore terrorism’s impact on supply chain design and operation. What issues should concern companies about terrorist’s attacks on their supply chains? What protective measures are companies currently taking? Should they take? Can companies measure the risk for attack? If so, how? As potential supply chain managers, what should we know about managing this type of risk for the short run and the long run?
Note: Status reports should survey at least 20 articles/reports from the academic and trade press and reports available on web sites.
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