Includes bibliographical references and index.

Supply Chain Management, Integrated Planning, and Models -- Fundamentals of Supply Chain Management -- Supply Chain Networks -- Integrated Supply Chain Planning -- Objectives of Supply Chain Management -- Overview of Supply Chain Models and Modeling Systems -- Supply Chain Modeling Incorporates Concepts from Several Management Disciplines -- Strategy Formation and the Theory of the Firm -- Logistics, Production, and Inventory Management -- Management Accounting -- Demand Forecasting and Marketing Science -- Operations Research -- Innovations in Information Technology Require and Support Supply Chain Modeling -- Organizational Adaptation to Integrated Supply Chain Management and Modeling -- Information Technology -- Developments in Enterprise Resource Planning Systems and E-Commerce -- ERP Systems -- E-Commerce -- Comparison of Transactional IT and Analytical IT -- Time Frame Addressed -- Purpose -- Business Scope -- Nature of Databases -- Response Time for Queries -- Implications for Business Process Redesign -- Hierarchy of Supply Chain Systems -- Components of the Supply Chain System Hierarchy -- Frequency of Analysis, Cycle Times, and Run Times of Supply Chain Systems -- Communication Among Supply Chain Systems of Data and Decisions -- Balancing Centralized and Decentralized Decision Making -- Legacy Systems and Legacy Thinking -- Final Thoughts -- Modeling and Solution Methods -- Fundamentals of Optimization Models: Linear Programming -- Linear Programming Modeling Examples -- Resource Allocation Model -- Infeasible and Unbounded Models -- Spreadsheet Optimization -- Multiperiod Resource Allocation Model -- Network Models -- Properties of Linear Programming Models -- Linearity -- Separability and Additivity -- Indivisibility and Continuity -- Single Objective Function -- Data Known with Certainty -- Interpreting an Optimal Linear Programming Solution -- Shadow Prices -- Reduced Cost Coefficients -- Dual Linear Programming Model -- Parametric and Sensitivity Analysis -- Multiple Objective Optimization -- Stochastic Programming -- Generalizations -- The Simplex Method of Linear Programming -- Fundamentals of Optimization Models: Mixed Integer Programming -- Mixed Integer Programming Modeling Vignettes -- Fixed Costs -- Economies of Scale -- Production Changeovers -- Multiple Choice and Other Nonnumeric Constraints -- Distribution Center Location Models -- DC Location Model -- Generalizations -- Supply Chain Network Optimization Models -- Strategic Planning at Ajax -- Generalizations -- Designing and Implementing Optimization Modeling Systems for Strategic and Tactical Planning -- System Design -- System Implementation -- Optimization Software -- Optimizers -- Algebraic Modeling Language Development Kits -- Spreadsheet Optimizers -- The Branch-and-Bound Method for Mixed Integer Programming -- Unified Optimization Methodology for Operational Planning Problems -- Heuristic Methods for Combinatorial Optimization Problems -- Local Delivery Heuristics -- Overview of the Unified Optimization Methodology -- Production Scheduling Example of Decomposition -- Unified Optimization Methodology -- Unified Optimization Methodology Applied to Vehicle Routing -- Statements of the Optimization Models -- Numerical Solution -- Generalizations -- Unified Optimization Methodology Applied to Production Scheduling -- Company Background and Numerical Data -- Unified Optimization Methodology Specialized to Goodstone's Production Scheduling Problem -- Production Scheduling Solution -- Generalizations -- Supply Chain Decision Databases -- Data Aggregations -- Aggregating Products -- Aggregating Customers and Markets -- Aggregating Suppliers -- Facility Data -- Recipes, Processes, Resources, and Costs -- Transportation Network Data -- Transportation Network Submodels -- Transportation Costs and Capacities -- Modal Choice and Shipment Sizes -- Utilities for Generating Networks -- Supplier Data -- Vendor Costs and Constraints -- Role of Management Accounting -- Develop Causal Cost Relationships of Direct and Indirect Costs -- Activity-Based Costing -- Connection of ABC to Optimization Models and the Taxonomy of Costs -- Computation of Transfer Prices, Product and Customer Costs from an Optimal Solution to a Supply Chain Model -- Demand Forecasting -- Types of Forecasting Models -- Demand Data Specifications for Optimization Models -- Forecasting Software -- Global and Policy Data -- Model Output Data -- Management Reports of Output Data -- Shadow Prices and Reduced Costs -- Derived Output -- Connections Among Supply Chain Decision Databases -- Scenarios -- Multiperiod Decision Databases -- Hierarchies -- Graphical Displays of Data Inputs and Outputs -- Applications -- Strategic and Tactical Supply Chain Planning: State-of-the-Art Modeling Applications -- Resources and the Resource-Based View of the Firm -- Taxonomy of Resources -- Summary of the Resource-Based View of the Firm -- Connections with Optimization Models -- Strategic Analysis of Logistics Supply Chains -- A Framework for Logistics Strategy Formation -- Constructing an Optimization Model for Strategic Logistics Planning -- Redesigning the Distribution Network of an Electronics Products Company -- Strategic Analysis of Manufacturing Supply Chains -- A Framework for Manufacturing Strategy Formation -- Constructing an Optimization Model for Strategic Manufacturing Planning -- Two Manufacturing Strategy Applications -- Worldwide Sourcing at Delta Industrial Chemicals -- Postmerger Consolidation of Consumer Paper Companies -- Tactical Planning -- Two Tactical Planning Applications -- Monthly Planning at an Industrial Gases Company -- Monthly Planning at a Beer Company -- Strategic and Tactical Supply Chain Planning: Advanced Modeling Applications -- Integrating Supply Chain and Demand Management -- Price and Location Sensitive Revenue Curves -- Integrating Supply Chain and Marketing Models for Consumer Products -- Consumer Products Supply Chains -- Modeling the Effects of Marketing Decisions on Demand for Consumer Products -- Integrating Supply Chain and Marketing Models for Manufacturers of Consumer Products -- Illustrative Numerical Model -- Planning for New Product Introduction and Growth -- Optimization Models for Competitive Analysis -- Structural Analysis of Industries -- Theory of Industrial Organization -- A Model of Price Competition -- Illustrative Numerical Model -- Application of Competitive Analysis in the Forest Products Industry -- Practical Issues of Price Competition -- Decision Trees and Stochastic Programming -- Decision Trees -- An Inventory Example of Stochastic Programming -- Supply Chain Strategies for Managing Product Variety -- Exploit Component Commonality and Postponement of Product Differentiation -- Assemble Differentiated Products from Vanilla Boxes -- Implement Quick Response to Early Sales -- Scenario Planning -- Methodology -- Connections to Optimization Modeling -- Integration of Financial and Physical Supply Chains -- Optimization Models for Corporate Financial Planning -- Modeling the Balance Sheet -- Numerical Example of an Optimization Model for Corporate Financial Planning -- Model and Methodological Extensions -- Financial Planning Issues Facing the Multinational Corporation -- A Network Illustration -- Financial Flows Model -- Statement of the Financial Flows Model -- Financial Flows Model Results -- Modeling Exchange Rate Risks -- Real Options for Hedging Risks in the Global Economy -- Operational Supply Chain Planning -- Taxonomies of Operational Planning Problems -- Production Planning and Scheduling -- Vehicle Routing and Scheduling -- Human Resources Scheduling -- Modeling Systems for Operational Planning -- System Integration -- Steps to Follow in Using a System -- Real-Time Operational Planning -- Other Uses of a Modeling System -- Training, Learning, and System Evolution -- Vehicle Routing System for an E-Commerce Company -- Company Background -- Routing System Description and Use -- Driver Assignment -- Production Planning System for a Semiconductor Company -- Manufacturing and Marketing Background -- Planning and Modeling Approaches -- Implementation -- Results -- Simulation Models and Systems -- Deterministic Simulation -- Monte Carlo Simulation -- Simulation Software -- Simulation versus Optimization -- Inventory Management -- Inventory Theory Models -- Deterministic Models -- Probabilistic Models -- ABC Classification -- Incorporating Inventory Management Decisions in Strategic and Tactical Supply Chain Models -- Incorporating Inventory Management Decisions in Strategic Supply Chain Models -- Incorporating Inventory Management Decisions in Tactical Supply Chain Models -- Inventory Management in Distribution Supply Chains -- Distribution Scheduling in a Reverse Logistics Company -- Multiechelon Spare Parts Distribution System at IBM -- Inventory Management in Manufacturing Supply Chains -- Optimizing Inventory across Hewlett-Packard's Printer Supply Chains -- Optimal Safety Stock Placement in Kodak's Manufacturing Supply Chains -- The Future -- Organizational Adaptation to Optimization Modeling Systems -- How Organizations Make Decisions -- The Theory of Rational Choice versus the Reality of Organizational Behavior -- Uncertainty and Risk -- Rule-Based Decision Making -- Deriving Meaning from the Decision Environment -- Decision-Making Ecologies -- Contested Issues about Organizational Decision Making -- Choice-Based versus Rule-Based Decision Making -- Clear versus Ambiguous Decision Making -- Instrumental versus Interpretive Decision Making -- Supply Chain Management as an Interacting Ecology -- Information Technology as Competitive Advantage -- Recent History of IT as Competitive Advantage -- Resource-Based Analysis -- Attributes of IT as Possible Sources of Competitive Advantage -- Complementary Organizational Resources -- Exploitative versus Exploratory IT Developments --

Acquisition or Development of a Modeling System -- Use of a Modeling System -- Enhancement of a Modeling System -- Business Process Redesign and IT -- Modeling Systems Invoke Business Process Redesign -- Supply Chain Coordination Processes and Incentive Contracts -- Selecting Coordination Processes -- Principal-Agent Theories of Incentives -- No Gain without Pain -- Stages of a Strategic Supply Chain Study -- Outlook for the Future of Modeling Systems and Their Applications.

With an emphasis on modeling techniques, Jeremy Shapiro's MODELING THE SUPPLY CHAIN is the perfect tool for courses in supply-chain management or for professional managers who seek better analytical tools for managing their supply chains, information technologists who are responsible for developing and/or maintaining such tools, and consultants who conduct supply-chain studies using models. Shapiro examines in detail the roles of data, models, and modeling systems in helping companies improve the management of their supply chains. The focus is on optimization models based on linear and mixed integer programming. Shapiro clearly illustrates that when properly applied, these methodologies can create accurate and comprehensive models of great practical value. The book also shows how competitive advantage in supply chain management can be most fully realized by implementing and applying optimization modeling systems.