CODE 108773 ACADEMIC YEAR 2024/2025 CREDITS 6 cfu anno 2 INGEGNERIA GESTIONALE 8734 (LM-31) - GENOVA SCIENTIFIC DISCIPLINARY SECTOR ING-IND/17 LANGUAGE Italian (English on demand) TEACHING LOCATION GENOVA SEMESTER 1° Semester TEACHING MATERIALS AULAWEB OVERVIEW Logistics and Supply Chain Management (SCM) are playing a leading role in today’s economy: if one just thinks of the main different products that are delivered each days through different transportation methods and sourced from many different factories. This pervasive structure is hiding often its complexity until the moment in which something goes wrong, and its fragility is revealed. The course is exploring the main aspects of Supply Chain Management by highlighting the possible threat and risks as well as describe the strategies, methodologies and techniques that could increase it resilience. The course presents examples from several supply chains, and it suggest appropriate decision-making models in proactive and reactive domains. In the Laboratory students will have the opportunity to test themselves the proposed approach and to evaluate the impact of simulated disruption scenarios, the effectiveness of the remedial actions and the robustness of their managerial choices. AIMS AND CONTENT LEARNING OUTCOMES The course aims to provide the student with a vision of the supply chain integrated into the business strategy. At the end of the course the student will be able to structure planning processes capable of coordinating market demand and the Supply Chain, implement distribution and inventory management processes to support the sales strategy, build and implement collaboration and information sharing practices between customers. and suppliers, to know and evaluate the information systems to support the Supply Chain AIMS AND LEARNING OUTCOMES The course aims to deliver the following learning objectives: Understand the complexity of the Supply Chain from the strategical and tactical point of view Understand the effect of uncertainty and randomness on the performance of the Supply Chain Explore disruption scenarios and the associated risks Understand the interconnection among inventory-strategy, transportation methods and procurement process in the construction of a resilient yet performing Supply Chain Understand what technologies, methodologies, tools and techniques should be adopted to manage the Supply Chain Risks in a proper and effective way Develop a managerial sensibility over the SCM complex decision making TEACHING METHODS The course would utilize a variety of tools- Books, Journal Papers, Popular Readings, Case Studies and Simulations. The classroom session would involve discussion of the critical concepts, case study discussions and quantitative simulations. This would be supplemented with assignments and exams. Extra readings and cases will be provided separately by the instructor. Instructions will be given in class on the preparation required before and after each session. The examinations will be based on class discussions, cases and quantitative decision making based on simulated scenario The instructors will follow participative methods in class. The instruction predominantly will be through interactive lectures and case discussions. The students are expected to come prepared to the class whenever a case or a reading is prescribed. The instructors can call upon any student for his/ her comments (cold call) during the case discussions. The students will be required to learn the use of a software tool AnyLogistiX (available free of charges at: https://www.anylogistix.com/downloads/ Personal Learning Edition) for exploring case simulation, develop strategies and prove the effectiveness of their recommended decisions. No programming language prior knowledge is required for the use of the software. Learning Through Case Method: Effective learning through case method requires four stages of learning (individual preparation, group discussion, class discussion, and after class reflection). For making best use of the learning opportunity following steps may be followed: It would be necessary for you to prepare each day's case/ learning material individually and then discuss in your group. It is strongly suggested that the reading(s) assigned should be read before preparing for the case. The responsibility could be shared by the members of the group. However, the gist of the readings needs to be understood by each participant. To ensure participation by the students, the instructors may ask the assigned groups to submit case study solutions before the class and the group may be called upon to make a group presentation. The lead questions for all the cases will be shared by the instructors well in advance. For making best use of the learning opportunities, following steps may be followed: Each participant must participate and be ready to share his/ her analysis in the class to build the skills of presentation and the attitude of collective learning. Individual participants/ Groups are encouraged to make presentations of their analysis/ recommendation of the case/ reading material. It would be necessary for you to prepare each day's case/chapter/paper reading individually be prepared with specific recommendations/conclusions and the rationale thereof. If required, the group will be asked to make a one-page synopsis on each case containing the Major issues Analysis for resolving the issue(s) Recommendations/inferences on the major issues The primary purpose of the synopsis is to prepare you for participation in the class. You may also be asked to submit the synopsis at the beginning of the class. You are welcome to discuss and clarify any doubts with the instructor. Laboratories: The course will use the AnyLogistiX simulation software in 4 guided laboratories in these students should be able to do the following: Think critically, be able to identify, generalize, prioritize, isolate, and reduce complexity in dynamic/uncertain and ambiguous operational situations, Understand how strategic considerations influence operational decisions, Apply analysis and improvement tools learned in previous courses to actual business situations, Reason quantitatively and qualitatively to make operational decisions. The laboratory-based case method requires students to prepare a decision, to the extent available, based on careful evaluation of case facts and numbers. As with all business situations, there may be insufficient facts, ambiguous goals, and strong dynamic/uncertain environments. Students, finally, will develop the following skills: Analytical Skills: Students will possess the analytical and critical thinking skills to evaluate issues faced in business and professional careers. Technical Skills: Students will possess the necessary technological skills to analyze problems, develop solutions, and convey information using optimization and simulation software Group Work: Groups of 4 students to be formed before Session-1 in Coordination with the Class Representative (POC) or the groups will be assigned by the Program Office SYLLABUS/CONTENT Course Outline: Session/Topic/Reading Material/Reference Session Topics Learning Outcomes Readings and Cases 1 Introduction to SCM 1. Explain the origins of both logistics and supply chain management. 2. Define both terms and outline how logistics and supply chain management differ from each other. 3. Highlight the importance of these areas in both manufacturing and services contexts. 4. Identify how best practice logistics and supply chain management can yield both cost reduction and value addition. 5. Show how supply chains have a major influence on society. Reading: Chapter 1 from Textbook [GSCM]. 2 Globalization and International Trade 1. Highlight the growth that has occurred in recent decades in international trade. 2. Illustrate the key role played by containerization in particular in facilitating international trade growth. 3. Explain what is meant by globalization and the drivers for globalization. 4. Explore the role of multinational companies in global trade, together with the impact of overseas investment by companies. 5. Finally, look at what happens when unequal volumes or types of freight flow in opposite directions in freight markets. Reading: Chapter 2 from Textbook [GSCM]. CASE: Dell's Configure-to-Order (CTO) Supply Chain Strategy (from textbook [GSCM]) 3 Supply Chain Relationships 1. Explain factors affecting outsourcing decisions. 2. Highlight the demand for outsourcing in view of both globalization and the growth of international trade. 3. Identify the problems faced by outsourcing companies that can result in failures in outsourcing. 4. Outline how outsourcees are selected. 5. Examine how outsourcer-outsourcee relationships develop. 6. Define the terms integration and collaboration in the global SCM context. 7. Explain how internal and external integration can be achieved to benefit supply chain performance. 8. Elaborate on specific methods used to enable collaboration. 9. Offer a holistic perspective of SCM to provide an understanding of how supply chains can gain greater integration and collaboration in the future. Reading: Chapter 3 from Textbook [GSCM]. CASE: Humanitarian Aid Supply Chain (from textbook [GSCM]) 4 Supply Chain Strategies 1. Highlight the role of logistics and supply chain strategy in the context of firm strategy, and see how logistics and supply chain strategy can actually sometimes drive firm strategy. 2. Outline the evolution of manufacturing, from which various logistics and supply chain strategies have emerged. 3. Look at both lean and agile logistics strategies, and the role of mass customization in the latter. 4. Develop a taxonomy of supply chain strategies. Reading: Chapter 4 from Textbook [GSCM]. 5 Transport in Supply Chain 1. Understand the cost structures and operating characteristics of the different transport modes, and the relationships between freight rates and consignment weight, dimensions and distance to be travelled. 2. Highlight key terms used in transport. 3. Outline the different types of load devices used in international transportation. 3. Discuss the roles of distribution centers and highlight the concept of factory gate pricing. 4. Identify some of the many issues (including the effect of supply chain strategies) that can impact the efficiency of transport services. 5. Review the world's major transport networks. Reading: Chapter 5 from Textbook [GSCM]. CASE: Port Logistics City: A Case Study of Melbourne in Australia (from textbook [GSCM]) 6 Laboratory 1: Basics of Simulation for Two-stage Supply Chain 1. Develop the technical skills needed to use anyLogistix to create two-stage supply chain models, perform experiments and measure performance 2. Understand the major trade-offs in facility location planning that affect the number of sites, lead time and demand uncertainty 4. Understand the areas of simulation and optimization Reading: 1. Alexandre Dolgui, Dmitry Ivanov, Boris Sokolov. Ripple effect in the supply chain: an analysis and recent literature. International Journal of Production Research, 2018, Leading scholars in Production Research, 56 (1-2), pp.414-430. 2. Chapter 1 [ALX]. CASE: Multi-Product Supply Chain Redesign (Case 1 Appendix 2 [ALX]) 7 Transport Security 1. Identify the need for transport security. 2. Understand the application of contemporary transport security initiatives. 3. Discuss the nature of security threats in transport, including terrorism and piracy. 4. Acquire knowledge of security technology. Reading: Chapter 6 from Textbook [GSCM]. 8 Procurement 1. Procurement's potential to improve business and organizational performance. 2. Understand how risk and value may affect sourcing and procurement strategy and tactics in relation to markets. 3. Understand the different dynamics of public and private sector procurement and how this affects procurement procedures and decision making. 4. The distinct stages of sourcing, selecting, procuring and managing contracts. 5. How consumer demand and expectations drive governance and accountability in sourcing and procurement. 6.Sustainability and environmental issues as non-price factors in procurement decision making. 7. The pivotal role that procurement plays in relation a wider supply chain issues. Reading: Chapter 8 from Textbook [GSCM]. 9 & 10 Laboratory 2: Simulation with Production Factories and Sourcing Policies (Four-Stage Supply Chain) 1. Gain insight into the impact of production and sourcing policies on supply chain and logistics performance; 2. Develop the anyLogistix skills needed to create four-stage supply chain models, perform experiments and measure performance; 3. Understand trade-offs in single vs dual sourcing strategies. Reading: 1.Ivanov D. (2017) Simulation-based ripple effect modelling in the supply chain. International Journal of Production Research, 55(7), 2083-2101. 2 Chapter 3 [ALX]. CASE: Three-stage, one-period supply network design for beverage industry (Case 4 Appendix 2 [ALX]). 11 Inventory Management 1. Explain the significance of inventory in logistics and SCM. 2. Introduce the costs involved in inventory management. 3. Introduce common inventory control systems designed to reduce costs. 4. Identify inventory reduction strategies including just-in-time inventory management. Reading: Chapter 9 from Textbook [GSCM]. 12 Technology in the Supply Chain 1. Illustrate the pervasive and important role played by technology in logistics and SCM. 2. Look at the growing role of automation in logistics. 3. Show how data can be transmitted and captured in the supply chain. 4. Explore the impact of 3D printing on supply chains. Reading: 1.Chapter 11 from Textbook. CASE: Patient Safety and the Pharmaceutical Supply Chain (from textbook [GSCM]). 2.Min, H. (2019). Blockchain technology for enhancing supply chain resilience. Business Horizons, 62(1), 35-45. 13 Information and Finance Flows in the Supply Chain 1. Examine how data flows through the supply chain. 2. Illustrate the techniques used for supply chain planning and control, and how performance metrics are established. 3. Understand the different types of costs accrued in logistics systems and supply chains. 4. Explain how responsibility for in-transit freight is established. 5. Review the documentation that accompanies in-transit freight and the efforts to ensure a more seamless, efficient movement of height. Reading: Chapter 12 from Textbook [GSCM]. 14 Supply Chain Vulnerability, Risk, Robustness and Resilence 1. Provide working definitions for key concepts. 2. Explain why supply chain risk, robustness and resilience have emerged as important themes in SCM. 3. Address the problems surrounding interpretations and the treatment of 'risk in management. 4. Highlight the need he a holistic approach to managing supply chain vulnerabilities. 5. Provide a structured framework for the identification and management of supply chain risk and resilience. Reading: Chapter 13 from Textbook [GSCM]. 15 & 16 Laboratory 3: Risk Management in Supply Chains 1. Develop analytical and management skills to analyze bullwhip and ripple effects in the supply chain; 2. Develop technical skills on batching, ordering rules and events; 3. Performing variation, comparison, and risk analysis experiments in AnyLogistix; 4. Understand major trade-offs in supply chain risk management Reading: 1. Ivanov D., Sokolov B., Pavlov A. (2014) Optimal distribution (re)planning in a centralized multi-stage network under conditions of ripple effect and structure dynamics, European Journal of Operational Research, 237(2), 758-770. 2. Chapter 4 [ALX]. CASE: Four-stage, multi-period supply chain planning with capacity disruptions, inventory, and transportation constraints (Case 5 Appendix 2 [ALX]). 17 Sustainable Logistics and Supply Chain Systems 1. Understand what sustainability involves in the context of logistics and SCM. 2. Understand terms used in sustainability such as carbon footprints and food miles. 3. Illustrate best practice examples of attempts to reduce environmental footprints. 4. Understand the link that exists between growth in logistics and concomitant growth in the demand for transport. 5. Examine the different aspects of the two key dimensions used in logistics to reduce environmental impacts, namely scale and efficiency. Reading: Chapter 14 from Textbook [GSCM]. 18 Management Science Application 1. Appreciate that the nature and characteristics of logistics systems and supply chains can influence the interpretation of analysis outputs. 2. Summarize a range of management science applications in transport, logistics and SCM. 3. Describe optimization, simulation, decision making and forecasting management science applications in the context of transport, logistics and SCM. Reading: Chapter 17 from Textbook [GSCM]. CASE: Contamination in the Bulk Agri-Commodity Logistics Chain (from textbook [GSCM]) 19 Laboratory 4: Network Optimization and Advanced Simulation with Inventory and Transportation Control 1. Understand network and transportation optimization; 2. Provide insight into the impact of inventory control and transportation policies on supply chain and logistics performance; 3. Develop the CPLEX (AnyLogistix) skills you need to create three-stage supply chain models, perform optimization and simulation experiments and measure their performance Reading: 1. Ivanov D., Dolgui A., Ivanova M., Sokolov B. (2018) Simulation Vs. Optimization Approaches to Ripple Effect Modelling in the Supply Chain. In: Freitag M., Kotzab H., Pannek J. (eds) Dynamics in Logistics. LDIC 2018, Bremen 20-22, 2. Chapter 2 [ALX]. CASE: Simulation and network optimization in Germany (Case 3 Appendix 2 [ALX]). 20 Reverse Logistics 1. Explain the basics of reverse logistics and the reasons for employing reverse logistics. 2. Describe the various recovery options in reverse logistics, such as reuse, remanufacturing and recycling. 3. Identify the characteristics of the remanufacturing recovery option and highlight the difference between forward and remanufacturing recoverable logistics environments. 4. Explain the key success factors for the implementation of reverse logistics systems. 6. Identify and understand performance metrics relevant turbo recovery options of reverse logistics. Reading: Chapter 15 from Textbook [GSCM]. RECOMMENDED READING/BIBLIOGRAPHY Texts Books: Mangan, John, and Chandra Lalwani. Global logistics and supply chain management. John Wiley & Sons, 2016. 3rd Edition, ISBN 978119117827. [GSCM] References: Ivanov D. (2021). Supply chain simulation and optimization with AnyLogistix. 5th, updated edition, Berlin School of Economics and Law Education [ALX] Ivanov, Dmitry. Structural dynamics and resilience in supply chain risk management. Vol. 265. Berlin, Germany: Springer International Publishing, 2018. https://www.youtube.com/playlist?list=PLJQSTE9A0y8UorXEXshHMjftC14IOnkuv https://blog.hwr-berlin.de/ivanov/wp-content/uploads/2020/09/Update_ALX-Book-2020.pdf TEACHERS AND EXAM BOARD ROBERTO REVETRIA Ricevimento: The reception is to be arranged with the lecturer by appointment by sending an email to: roberto.revetria@unige.it The lecturer is available in the office every week except August. LESSONS LESSONS START https://corsi.unige.it/en/corsi/8734/studenti-orario Class schedule The timetable for this course is available here: Portale EasyAcademy EXAMS EXAM DESCRIPTION The exam is composed of three main parts: 20 multiple-choice quiz for a total of 25 points over 30 assignments for a total of 7 points over 30 oral examination for a total of 32 points over 30 The final grade is the average of (quiz + assignments) and oral examination. The oral examination is based on a presentation on a course topic chosen by the student and 3 open questions by the teacher. The exercises (assignments) must be delivered to the address: assignments.revetria@dime.unige.it by the exam day. Late exercises are not accepted. The exercises done in groups must report on all in the name of the group members. Similar exercises that do not correctly name the group members will be waived. For every wrong question given at quiz time -0.5 points are subtracted. ASSESSMENT METHODS Laboratory Assigments Assignment 1 (in group): Present and discuss the results of the case implemented in laboratory #1 Deliverable: PowerPoint presentation to be submitted by the end of Session 7 Assignment 2 (individual): Present and discuss the results of the case implemented in laboratory #2 Deliverable: PowerPoint presentation to be submitted by the end of Session 12 Assignment 3 (in group): The assignment is to analyze the impact of supply chain redesign on (i) location-allocation options, (ii) impact of transportation, sourcing, and inventory control policies as well as (iii) future capacity and demand changes on supply chain financial, customer, and operational performance. Questions to be answered by the students: compare supply chain without central distribution centers and with central distribution centers on supply chain financial, customer and operational performance compare different location-allocation variants on supply chain financial, customer and operational performance compare the impact of LTL and FTL shipment policies on supply chain financial, customer, and operational performance compare inventory control policies on supply chain financial, customer and operational performance compare the impact of sourcing policies on supply chain financial, customer and operational performance analyze the impact of future demand changes on supply chain financial, customer and operational performance analyze the impact of capacity disruption risks on supply chain financial, customer and operational performance Deliverables: Report to be submitted by end of Session 18 Individual Presentation in Session 18 Assignment 4 (in group): Present and discuss the results of the case implemented in laboratory #4 Deliverable: PowerPoint presentation to be submitted by the end of Session 20 FURTHER INFORMATION Additional Instructions Additional readings and specific instructions related to the sessions will be shared with the students prior to the sessions. Groups will be formed coordinated by the Class Representative (POC) and groups will be assigned readings and cases. The groups will lead the class discussion for the readings assigned to them. The modalities for this and the course road map with be discussed and finalized.