Springer Texts in Business and Economics Dmitry Ivanov Alexander Tsipoulanidis Jörn Schönberger Global Supply Chain and Operations Management A Decision-Oriented Introduction to the Creation of Value Springer Texts in Business and Economics Moreinformationaboutthisseriesathttp://www.springer.com/series/10099 Dmitry Ivanov (cid:129) Alexander Tsipoulanidis (cid:129) € € Jorn Schonberger Global Supply Chain and Operations Management A Decision-Oriented Introduction to the Creation of Value DmitryIvanov AlexanderTsipoulanidis DepartmentofBusinessAdministration DepartmentofBusinessAdministration BerlinSchoolofEconomicsandLaw BerlinSchoolofEconomicsandLaw Berlin,Germany Berlin,Germany J€ornSch€onberger FacultyofTransportationandTrafficScience “FriedrichList” TechnicalUniversityofDresden Dresden,Germany ISSN2192-4333 ISSN2192-4341 (electronic) SpringerTextsinBusinessandEconomics ISBN978-3-319-24215-6 ISBN978-3-319-24217-0 (eBook) DOI10.1007/978-3-319-24217-0 LibraryofCongressControlNumber:2016940194 #SpringerInternationalPublishingSwitzerland2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade. Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAGSwitzerland Dmitry Ivanov To my parents who inspired the dreams and without whom this book would have never been completed To my wife who makes the dreams come true inspiring with love and smile and without whom this book would have been completed much earlier Tomychildren:getinspiredandclimb,reach the peak, enjoy, stay inspired Alexander Tsipoulanidis To my family: Joanna, Marina, Irini, Ursula and Reimar - I love you all! To my father: Ioannis (1934–2002) - I miss you! Jo¨rn Scho¨nberger For my family: Maybe this book explains what I’m doing in the Lecture hall... Preface About This Book In everyday life, all of us take supply chain and operations management (SCOM) decisions. If you move to a new flat, location planning is first necessary. Second, you need a plan of how to design the overall process. This includes capacity planning, transportation planning, and human resource planning. You also need toreplenishsomeitemsanddoprocurementplanning.Finally,adetailedschedule forthedayofthemoveisneeded. Similarly,buildinganewhouseinvolvesmanySCOMdecisions.Again,itstarts withlocationselection.Ifyoudecidetocoordinatetheoverallprocessbyyourself, itisnecessarytocoordinatetheentiresupplychainofdifferentmanufacturersand workmen.Inturn,theyneedthedetaileddataofyourplansandforecasteddatato plantheirownprocessandsourcingactivities.Inordertoavoidtrafficjamsatthe buildingsite,detailedcoordinationatthevehicleroutinglevelisneeded. SCOMbelongstothemostexcitingmanagementareas.Thesefunctionalitiesare tangibleandinhighdemandinallindustriesandservices.Thisstudybookintends to provide both the introduction to and advanced knowledge in the SCOM field. ProvidingreaderswithaworkingknowledgeofSCOM,thistextbookcanbeusedin core,special,andadvancedclasses.Therefore,thebookistargetedatabroadrange ofstudentsandprofessionalsinvolvedinSCOM. Specialfocusisdirectedatbridgingtheoryandpractice.Sincethemanagersuse both quantitative and qualitative methods in making their decisions, the book follows these practical knowledge requirements. Decision-oriented and method- orientedperspectivesdeterminethephilosophyofthebook.Inaddition,becauseof theextensiveuseofinformationtechnologyandoptimizationtechniquesinSCOM, wepayparticularattentiontothisaspect. Next, a strong global focus with more than 80 up-to-date cases and practical examplesfromallovertheworldisadistinguishingfeatureofthisstudybook.The The original version of this book was revised. An erratum to the book can be found at (DOI:10.1007/978-3-319-24217-0_15). vii viii Preface Fig.1 Interactivecase-studymapinthee-supplement casestudiesencompassdifferentindustriesandservicesandconsiderexamplesof successful and failed SCOM practices in Europe, America, Asia, Africa, and Australia. Finally,followingtheexpectationsofmodernstudentsandthepositiveteaching experiences in SCOM over the past 10 years, we divided this textbook into a hardback and an electronic part. In the hardback, basic theoretical concepts, case studies, applications, and numerical examples are explained. The e-supplement supports the hardback and provides students and teachers with additional case studies, video streams, numerical tasks, Excel files, slides, and solutions (see Fig.1). Thee-supplementofthisbookcanbeaccessedviatheURLwww.global-supply- chain-management.dewithoutfurtherregistration.Forcourseinstructors,aspecial area is set up that contains further material. The e-supplement is updated with additionaltopics,exercises,andcases. Thebookconsistsof14chaptersdividedintothreeparts: PartIIntroductiontoSupplyChainandOperationsManagement • Chapter1BasicsofSupplyChainandOperationsManagement • Chapter2ExamplesfromDifferentIndustries,ServicesandContinents • Chapter3Processes,SystemsandModels PartIIDesigningOperationsandSupplyNetwork:StrategicPerspective • Chapter4SupplyChainStrategy • Chapter5SourcingStrategy • Chapter6ProductionStrategy • Chapter7FacilityLocation Preface ix • Chapter8TransportationandDistributionNetworkDesign • Chapter9FactoryPlanningandProcessDesign • Chapter10LayoutPlanning PartIIIMatchingDemandandSupply:TacticalandOperativePlanning • Chapter11DemandForecasting • Chapter12ProductionandMaterialRequirementsPlanning • Chapter13InventoryManagement • Chapter14SchedulingandRouting Eachchaptercontainsthefollowingelements: • Introductorycasestudy • Learningobjectives • Theorywithpracticalinsightsandcasestudies • Taskswithsolutionexamples • Keypointsandoutlook • Additionaltasksandcasestudiesplacedine-supplement • Furthersupplementarymaterials:onlinetutorial,Excelfiles,andvideos. Each chapter starts with an introductory case study. Subsequently, major deci- sionareasandmethodsfordecisionsupportarehandled.Finally,applicationscan be trained based on additional case studies and numerical tasks. The summary of keypointsandanoutlookendeachchapter. Throughoutthebook,practicalinsightsarehighlighted. Inthee-supplement,differentadditionalmaterialscanbefound,highlightedin eachchapter. The advantage of using the e-supplement is that it offers the possibility of updating the case studies and to add additional materials more dynamically than producingneweditionsofthetextbook.Anotheradvantageistobeabletokeepthe hardback copy part quite short and concise. Finally, modern students are quite different from students who studied 20 years ago. They cannot imagine the study processwithoutonlineresources. Theauthorsgratefullyacknowledgeallthosewhohave helped usinbringing this book to publication. First and foremost, we have greatly benefited from the wealth of literature published on the subjects of SCOM and related topics. We thank Dr Marina Ivanov for coauthoring the Chap. 4 “Supply Chain Strategy” and Chap. 6 “Production Strategy.” We would like to thank all our colleaguesfromBerlinSchoolofEconomicsandLawandUniversityofBremen. The book has benefited immensely from their valuable insights, comments, and suggestions. We thank companies AnyLogic, Knorr-Bremse Berlin Systeme fu¨r Schienen- fahrzeuge GmbH, OTLG, REWE, and SupplyOn for permissions to prepare new casestudiesandusecompanymaterials.WethankourstudentassistantsBenjamin Bock,AlexanderReichardt,KatharinaSch€onhoff,andLauraSeyfarth,whohelped x Preface us to prepare case studies, tasks, and figures. In addition, we thank our PhD and masterstudentsAlex Bolinelli,ChristinatenBrinkgtBerentelg,Vikas Bhandary, JonasDahl,NoraFleischhut,IrinaFensky,DanielJa´comeFerrao,DiegoMart´ınez Gosa´lvez, Fernanda Jube´, Laura Kromminga, Chensuqiu Lin, Abdul Mutallab Mukhtar, Sufyan Nasir, Carlos Ortega, Janna Piorr, Beatrix Schubert, Aneesh Somanath, Henrik Thode, Evelyn Wendler, and Chiu Hua Yi for contributing to preparation of case studies. We cordially thank Ms. Pat Baxter for thorough proofreadingofthemanuscript. Finally,wewishtothankMrs.BarbaraBethkeandMr.ChristianRauscherfrom Springer and the entire Springer production team led by Mrs. Britta Kirchner for theirassistanceandguidanceinsuccessfullycompletingthisbook. Last but not least—we cordially thank our families who supported us enor- mouslyduringourworkonthebook. April2016 DmitryIvanov AlexanderTsipoulanidis J€ornSch€onberger Companion Web Site ThisbookisaccompaniedbyafreeWebsitewww.global-supply-chain-management. de.OnthisWebsiteyouwillfindalotofup-to-datecomplementarymaterialsuchas videostreams,case-studies,Excelspreadsheettemplates,tasksandanswers,figures fromthebook,andsimulationgames.Thisareawillbeextendedcontinuously.