Alexander Tsipoulanidis

Pricing and Revenue-Oriented Capacity Allocation

This chapter provides a structured introduction to important ideas and procedures of revenue management (RM) with a focus on price determination. The exploration of the opportunities as well as limitations of RM is guided by a comprehensive case study from the transportation sector. After you have successfully worked through this chapter you will be able to answer the following basic question of pricing: How can we determine adequate and customer-specific prices for the products we sell to our customers?

Supply Chain Risk Management and Resilience

This chapter is devoted to risk management in the supply chain. The chapter starts with fundamental definitions of uncertainty and risks. Subsequently, risk classifications are presented. Decisions in the scope of supply chain risk management are discussed. Reasons for different supply chain risks and the mitigation strategies are shown. The special focus is directed towards the disruption risks and the ripple effect in supply chains. Finally, supply chain resilience concept is presented.

Digital Supply Chain, Smart Operations and Industry 4.0

The supply chain is as good as the digital technology behind it. This chapter is devoted to the digitalization of supply chain and operations management (SCOM). The chapter starts with the concept of SCOM excellence and continues with fundamental definitions of digital supply chains and operations. Subsequently, digital technology classifications of SCOM are presented in terms of the SCOR model. Decision-making support improvements in the digital SCOM framework are discussed from qualitative and quantitative perspectives.

Facility Location Planning and Network Design

This chapter starts with an outline of a recent real-world location planning problem. It provides the analysis of different decision tasks in a typical location planning scenario and reveals the interactions between individual decision situations of the tasks. The generic decision task regarding which regions should be incorporated into a supply network is addressed. A further part is dedicated to the identification of explicit location proposals for those regions that contribute to supply chain cost efficiency. The multiple factor search for the right location for a facility in a region is addressed in the final section. The chapter is completed by the respective E-Supplement providing additional case studies, Excel templates, tasks and video streams.

Processes, Systems, and Models

This chapter starts with an introductory case-study from aerospace industry. In the first part, the interrelations between business processes, quantitative models, and information systems are discussed. Next, the role of business process management in operations and supply chains is considered. Subsequently, the effects of management information systems in supply chain and operations management are analysed. In particular, ERP, APS, WMS as well as RFID technologies are considered. In the second part, the terms “planning”, “problem”, and “decision” are clarified. The role of models and modelling in decision-making is discussed. Furthermore, this chapter analyses the crucial role of uncertainty, resilience, and risk management in decision-making. Finally, quantitative methods of decision-making are presented and discussed with regard to their applicability to supply chain and operations management. An E-Supplement provides additional case studies and video streams.

Examples from Different Industries, Services and Continents

This chapter provides up-to-date examples of supply chain and operations management in manufacturing, services, and e-operations. The case-studies include examples of operations and supply chains from different industries, services and continents. Particular focus is directed to e-operations and e-supply chains. With the help of the case-studies the readers obtain an overview of typical decisions and trade-offs in supply chain and operations management that will be addressed in detail in further chapters of the textbook. An E-Supplement containing additional case studies and video streams provides additional insights related to the content of this chapter.

Basics of Supply Chain and Operations Management

This chapter introduces global supply chain and operations management. Underlying issues related to the observed transformation process(es) and value creation are analysed. The definitions of operations, supply chains, operations management and supply chain management are provided. Subsequently, typical decisions in the scope of supply chain and operations management are systematically rolled out. Practically relevant objectives to measure supply chain and operations performance are discussed. The question of which qualifications should obtain a future supply chain and operations manager is addressed and, finally, possible career paths for supply chain and operations managers are discussed.

Operations and Supply Chain Strategy

This chapter discusses basic supply chain and operations strategies. It starts with an introductory case-study considering supply chain strategies in the apparel industry. In the first part, operations strategies as well as the “strategic fit” are discussed. Subsequently, efficient and responsive supply chain strategies are distinguished. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such as Vendor-managed Inventory (VMI) and Collaborative Planning, Forecasting, and Replenishment (CPFR) are presented. Finally, the issues of supply chain resilience and sustainability are discussed. Additional case studies, Excel templates, tasks and video streams as part of an E-supplement enrich this chapter.

Distribution and Transportation Network Design

This chapter addresses basic strategies for the configuration of physical distribution and transportation networks so that given supplying locations are physically connected with demanding locations. At the beginning, it introduces a case study to discuss the challenges related to the installation of transportation links. The next section suggests generic types of transportation network set-ups as a starting point for the setup of more sophisticated network layouts. Subsequently, the concept of shipment consolidation as the key approach to the realization of economies of scale in transportation is considered. Additionally, different transport network configuration objectives and their balancing are analysed, so that efficient and profitable network layouts can be set up. The incorporation of transport service providers (freight carriers) is discussed. Finally different case studies regarding the distribution network design are presented and the concepts, models and principles are discussed with the backup of numerous examples such as distribution and transportation strategies at global retailers. The chapter is accompanied by an E-Supplement providing additional case studies, Excel templates, tasks and video streams.

Production and Material Requirements Planning

In this chapter, the sales and operation planning (S&OP) concept is presented. It starts with an introductory case-study considering sales and operation planning at a petrochemistry company. At the beginning, different planning horizons and the role of aggregate planning are discussed. Afterwards, different options of matching demand and supply at an aggregated level are explained. Next, the rolling planning concept is introduced. Subsequently, the concept of the master production schedule (MPS) is presented. We learn how to apply linear programming methods to production planning. Finally, the principles of exploiting the bill-of-materials are discussed in order to learn how to compute dependent material requirements taking into account the lead time. This chapter is accompanied by an E-Supplement providing additional case studies, Excel templates, tasks and video streams.