SFE Key

SCLM

 Sesha Iyer – Refer notebook and excel sheets for sums (everything related to inventory)
1. Inventory by purpose: notebook
2. Holding cost: notebook
3. Inventory carrying cost
4. Inventory ordering cost
5. Q model: root of (2*D*O/P*I) [here order quantity is fixed] (refer SCLM class 1 excel)
6. Lead time consumption = Annual demand / lead time
7. Reorder level = refer SCLM class 1 excel
8. Service level: cost of understocking / (cost of understocking + overstocking)
9. P model: same vendor & a large number of items
10. Risk pooling by aggregation – centralised inventory to counter demand variability
 Nagendra
o Air freight – PPT (introduction to airfreight)
 Why air freight?
 Calculations of chargeable weight
 Various carrier charges
 Airway bill
 Dangerous goods classification
 Pallets
 Types of aircrafts
o Various KPIs used in logistics (PPT)
 Warehousing
 Dispatch
 Order fulfilment
 Delivery
 Costs
 Finance
o CLASS – Computerised layout & simulation software created for warehouse
operations (enabling design and decision making in area of logistics) (PPT)
 Role
 Key uses
o Multi-modal transportation – (PPT) – benefits & issues
 Road
 Rail
 Water
 Air
o Introduction to network design – (PPT)
 Three phase approach of network design
 CAST – dpm
 3PL
 Control reports
o PARAGON – A transport design too (PPT)
 It is a routing and scheduling software used for complex distribution
operation
o RFID – (PPT)
 o CFS – Gesa CFS PPT & notebook
o GST – (GST PPT)
o Material handling – refer handout

SCSP
1. PPT - S1_SC Strategy : Basic intro
3 step framework to derive SC strategy from business strategy
Functional vs innovative products
Supply certainty: stable vs unstable processes
Uncertainty Framework

PPT has detailed desc of the value chain nodes for each of the 4 types of SC
mentioned above!

Apparel industry stuff – includes typical planning calendar, discount/sell through…

Refer handwritten notes for details on different parts of Zara Value chain
2. PPT - S3,4_SC Network Design
Sourcing Strategy:

Ops/Mfg strategy: decisions that serve as an input to the network design

Integrated vs functional focused plants

Make vs Buy decision

2 ways of distribution: a) factory to customer – lower facility cost or b) include

warehouses – quick response/ closer to customer
Pros & cons of direct distribution
Notes on cross docking

Pros & cons of warehousing option

 Impact of increasing no. of warehouses (intermediate storage locations)

Ikea furniture vs England furniture (exclusive customised stuff) example

Network Design: a) Identify potential sites b) determine final locations & linkages
a) Use qualitative methods & COG method
b) Using LP
Excel Sheet S4_Network Design for COG & LP
3. PPT - S5_IT in SC
ERP – Transaction Systems – Eg: SAP/Finacle
SCM Software – Planning System – Eg: Demand Planning System, Prodn & Dist
Planning Systems
Execution systems – Eg: Vehicle Routing System, WMS

 Difference between Planning & Execution systems

 Fuzzy boundaries – overlaps between these systems

 Purpose & examples on each of the different kinds (demand planning, supply
planning, etc) of systems

4. Sourcing strategy
 Sourcing vs supply management


 Centralized vs de-centralized sourcing

 Role of Cross functional teams (CFT) in sourcing – advantages & disadvantages
 Pareto & disadvantages
 Kraljic Matrix

 Assessing buyer seller power balance

 Suppliers view
 Purchasing portfolio management – integration of buyer seller power & kraljic
matrix
  Spend analysis steps – data gathering, data cleansing, categorization, analysis

Extra

 Product – Process matrix for manufacturing strategy (Jayaraman)

 Product – Process matrix for innovation (Rahul Pandey)
 8 dimensions of quality & 8 product mix strategies (Jayaraman)
 MPC directly refer notebook notes or new document notes
 Efficient frontier: highest return with least risk (highest quality with least cost)
 For protection high fare level: normsinv (SL)
 Throughput: Refer MPC notes (notebook)
 Drivers of supply chain: MPC notes (notebook)
 Types of inventory: MPC notes (notebook, new document)
 Competitive priorities in operations strategy: cost, quality, flexibility and time
 Cost – low cost operations
 Quality- top and consistent quality
 Time- delivery speed, on time delivery & development speed
 Flexibility – volume, variety and customisation
 Decisions in operation strategy
o Designing & improving processes
o Planning & managing projects
o Designing value chains
o Operating value chains
 From complex process & product to simplest process & products
o Project
o Job
o Batch
o Line
o Continuous
 Balanced Score Card
o Finance
o Customer
o Internal business process
o Organisational capabilities