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Overview Learning Objectives Who Should Attend Program Materials Topics Covered Course
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Demand-Driven Supply Chain Management [PI.20s]

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Date: July 16-17, 2008 | Tuition: $1,250 | Continuing Education Units (CEUs): 1.0

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* Course schedule and registration times

Overview

Recent advances in fact-based methods for supply chain management have opened up opportunities for its coordination with demand management. These developments include:

• Transforming the company's business from a push to a pull system to synchronize supply with demand
• Implementing postponement strategies that delay product customization to reduce the impact of volatile demand
• Contingency planning for the acquisition of products with short life cycles

Data-driven supply chain models are playing an increasingly important role in helping managers translate these concepts into effective decision-making processes. In addition, their integration with data-driven models for marketing and sales, otherwise known as “marketing science,” has enhanced the firm's capability to identify and pursue holistic strategies for maximizing net revenues. In this course, supply chain optimization models and marketing science models that support demand-driven supply chain management will be examined. Differences in modeling approaches across industries such as consumer products, consumer durables, retailing, and industrial commodities will also be discussed. Several cases will be presented that describe successful applications in distribution, retailing, and manufacturing companies.

Learning Objectives

• Understand how network optimization models can be used to support S&OP (sales and operation planning).
• Comprehend the complementary roles of supply chain and marketing science models in supporting decisions for net revenue maximization in the firm.
• Examine guidelines for creating and using models including: model selection; data collection, preparation, and validation; scenario planning; and organizational process change.
• Gain knowledge of software systems for supply chain network optimization, forecasting, and marketing.
• Acquire insights from case studies where models were successfully applied to coordinate supply chain and demand management decisions.

Who Should Attend

This program is intended for managers and analysts who are using or seek to use data-driven models to improve supply chain management in their companies and integrate it with demand management. It is also intended for consultants who participate in supply chain and demand management studies, and academics who teach supply chain subjects to students in management and engineering. Participants will not need advanced analytical skills to fully absorb material presented in the program.

Program Materials

At the start of the program, participants will be given a copy of the second edition of Professor Shapiro's book, Modeling the Supply Chain, published in 2007, plus other recently published and unpublished papers. Participants will also be given a copy of Flowcasting the Retail Supply Chain, published in 2006, by Andre Marin, Mike Doherty, and Jeff Harrop.

Topics Covered

• Overview of supply-chain network optimization models
• Analysis of postponement strategies using optimization models
• Data-driven models to support S&OP
• Net profit maximization using revenue models that are price and location sensitive
• Flowcasting the retail supply chain
• Overview of market response models
• Integration of supply chain and marketing strategies in consumer products companies
• Case study: Dynamic sourcing in a container rental company
• Case study: Postponement planning of mainframe computers
• Beyond supply chain optimization to enterprise optimization
• Business process changes to exploit analytics

PARTICIPANT CASE STUDIES

Participants will be invited via email to submit descriptions of demand driven supply chain planning problems in their companies. Two or three of these problems will be selected for discussion and analysis during course sessions.

Course schedule and registration times

Class runs 9:00 am - 5:00 pm on Wednesday and 8:30 am - 4:00 pm
on Thursday.

Registration is on Wednesday morning from 8:00 - 8:30 am.

The two-day program will consist of four sessions per day. The first session will be devoted to an overview of the course material. Follow-on sessions will cover supply chain and marketing model fundamentals, case studies, and software demonstrations.

Instructors

This two-day course will be presented by Jeremy F. Shapiro, Professor of Operations Research and Management, Emeritus, at the Sloan School, MIT. He will be assisted by Art Brown, a supply chain expert with 25 years experience applying analytics to supply chain problems; Mike Doherty and Jeff Harrop, Founders of Demand Clarity; and Rama Ramakhrisnan, Chief Scientist and Vice-President of R&D, Oracle Retail.