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 Second Edition Springer Texts in Business and Economics Moreinformationaboutthisseriesathttp://www.springer.com/series/10099 (cid:129) (cid:129) Dmitry Ivanov Alexander Tsipoulanidis Jörn Schönberger Global Supply Chain and Operations Management A Decision-Oriented Introduction to the Creation of Value Second Edition DmitryIvanov AlexanderTsipoulanidis DepartmentofBusinessAdministration DepartmentofBusinessAdministration BerlinSchoolofEconomicsandLaw BerlinSchoolofEconomicsandLaw Berlin,Germany Berlin,Germany JörnSchönberger FacultyofTransportation andTrafficScience“FriedrichList” TechnicalUniversityofDresden Dresden,Germany Additionalmaterialtothisbookcanbedownloadedfromhttp://extras.springer.com. ISSN2192-4333 ISSN2192-4341 (electronic) SpringerTextsinBusinessandEconomics ISBN978-3-319-94312-1 ISBN978-3-319-94313-8 (eBook) https://doi.org/10.1007/978-3-319-94313-8 LibraryofCongressControlNumber:2018947867 #SpringerNatureSwitzerlandAG2019 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartofthe materialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation, broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionorinformation storageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology nowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. The publisher, the authors and the editors are safe to assume that the advice and information in this bookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor theeditorsgiveawarranty,expressorimplied,withrespecttothematerialcontainedhereinorforany errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional claimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland 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 To mychildren: 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! Jörn Schönberger 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.Ifyoumovetoanewflat,locationplanningisfirstnecessary.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 to replenish someitemsanddoprocurementplanning.Finally,adetailedscheduleforthedayof themoveisneeded. Similarly,buildinganewhouseinvolvesmanySCOMdecisions.Again,itstarts withlocationselection.Ifyoudecidetocoordinatetheoverallprocessbyyourself,it is necessary to coordinate the entire supply chain of different manufacturers and workmen. In turn, they need the detailed data of your plans and forecasted data to plan their own process and sourcing activities. In order to avoid traffic jams at the buildingsite,detailedcoordinationatthevehicleroutinglevelisneeded. SCOMbelongstothemostexcitingmanagementareas.Thesefunctionalitiesare tangibleandinhighdemandinallindustriesandservices.Thisstudybookintendsto provide both the introduction to and advanced knowledge in the SCOM field. Providing readers with a working knowledge of SCOM, this textbook can be used in core, special, and advanced classes. Therefore, the book is targeted at a broad rangeofstudentsandprofessionalsinvolvedinSCOM. Specialfocusisdirectedatbridgingtheoryandpractice.Sincemanagersuseboth quantitative and qualitative methods in making their decisions, the book follows these practical knowledge requirements. Decision-oriented and method-oriented perspectives determine the philosophy of the book. In addition, because of the extensive use of information technology and optimization techniques in SCOM, wepayparticularattentiontothisaspect. Next, a strong global focus with more than 80 up-to-date cases and practical examples from all over the world is a distinguishing feature of this textbook. The case studies encompass different industries and services and consider examples of successful and failed SCOM practices in Europe, America, Asia, Africa, and Australia. vii viii Preface Fig.1 Interactivecase-studymapinthee-supplement Finally, following the expectations of modern students and our teaching experiences in SCOM over the past 15 years, we divided this textbook into a hardbackandanelectronicsupplement.Inthehardback,basictheoreticalconcepts, casestudies,applications,andnumericalexamplesareexplained.Thee-supplement supports the hardback and provides students and teachers with additional case studies,videostreams,numericaltasks,Excelfiles,slides,andsolutions(seeFig.1). Thee-supplementofthisbookcanbeaccessedviatheURLwww.global-supply- chain-management.de without further registration. For course instructors, a special area is set up that contains further material. The e-supplement is updated with additionaltopics,exercises,andcases. This second edition of our textbook consists of 17 chapters divided into four parts: PartIIntroductiontoSupplyChainandOperationsManagement (cid:129) Chapter1BasicsofSupplyChainandOperationsManagement (cid:129) Chapter2ExamplesfromDifferentIndustries,Services,andContinents (cid:129) Chapter3Processes,Systems,andModels PartIIDesigningOperationsandSupplyNetwork:StrategicPerspective (cid:129) Chapter4SupplyChainStrategy (cid:129) Chapter5SourcingStrategy (cid:129) Chapter6ProductionStrategy (cid:129) Chapter7FacilityLocation (cid:129) Chapter8TransportationandDistributionNetworkDesign Preface ix (cid:129) Chapter9FactoryPlanningandProcessDesign (cid:129) Chapter10LayoutPlanning PartIIIMatchingDemandandSupply:TacticalandOperativePlanning (cid:129) Chapter11DemandForecasting (cid:129) Chapter12ProductionandMaterialRequirementsPlanning (cid:129) Chapter13InventoryManagement (cid:129) Chapter14SchedulingandRouting PartIVAdvancedTopicsinSupplyChainandOperationsManagement (cid:129) Chapter15SupplyChainRiskManagementandResilience (cid:129) Chapter16DigitalSupplyChain,SmartOperations,andIndustry4.0 (cid:129) Chapter17PricingandRevenue-OrientedCapacityAllocation Eachchaptercontainsthefollowingelements: (cid:129) Introductorycasestudy (cid:129) Learningobjectives (cid:129) Theorywithpracticalinsightsandcasestudies (cid:129) Taskswithexamplesolutions (cid:129) Keypointsandoutlook (cid:129) Additionaltasksandcasestudiesplacedine-supplement (cid:129) Furthersupplementarymaterials:onlinetutorial,Excelfiles,andvideos. Eachchapterstartswithanintroductorycasestudy.Subsequently,majordecision areas and methods for decision support are handled. Finally, applications can be taught based on additional case studies and numerical tasks. The summary of key pointsandanoutlookendeachchapter.Throughoutthebook,practicalinsightsare highlighted. The second edition contains three new chapters: “Supply Chain Risk Manage- mentandResilience,”“DigitalSupplyChain,SmartOperations,andIndustry4.0,” and “Pricing and Revenue-Oriented Capacity Allocation.” These new chapters providestructuredknowledgeontheprinciples,models,andtechnologiesforman- aging supply chain risks and improving supply chain and operations performance with the help of digital technologies such as Industry 4.0, additive manufacturing, Internet of Things, advanced optimization methods, and predictive analytics. The existing chapters have been updated and new case studies have been included. In addition,theprefaceprovidesaguideline(Table1)forinstructorsconcerninghowto selectandstructurethematerialsfromthisbookfordifferentcoursesinsupplychain andoperationsmanagementandwithregardtodifferent educationallevels suchas general undergraduate, specialized undergraduate, and graduate courses. The com- panion web site for this textbook www.global-supply-chain-management.de has been updated accordingly. In addition, the book is now supported by e-manuals x Preface Table1 Recommendationsforinstructorsoncoursestructuringatdifferentteachinglevelsusing thistextbook UndergraduatecorecourseinOperationsManagement 1,4.2,5.2,7.4,7.5,8.6,9,10,12.2,12.6,13.2–13.4,14.3,and14.5 UndergraduatemajorcoursesinSupplyChainandOperationsManagement SourcingandProduction Distributionand SupplyChain SelectedTopicsin Management Transportation Management SupplyChainand Management Operations Management 1.2.1,4.2,4.3.1,4.3.2,5,6, 7,8,11,14.2– 1.2.2,3.3,4.2–4.4, 2,3,7.3,16,17 9.3–9.5,11,12.2–12.5,13.2, 14.4 5.3,7.2,7.4,7.5, 13.5–13.7,14.5 8,13.5–13.9 GraduatecoursesinSupplyChainandOperationsManagement AdvancedOperations GlobalSupply International SupplyChainand Management Chain Logistics Operations Management Management Analysis 2,9.2,9.5,9.6,16;17 2,4.3,4.4,5.3, 2,8,10,16;Case 3.4,7.3; AnyLogicHandbookin 11.3,13.5,13.6, Studiesin AnyLogicand E-Supplement; 15;16 E-Supplement anyLogistix CaseStudiesin anyLogistix Handbooksin E-Supplement Handbookin E-Supplement; E-Supplement; LPandCWLP CaseStudiesin ExcelSpreedsheet E-Supplement Templatesin E-Supplement for supply chain and operations simulation and optimization in AnyLogic and anyLogistix. In addition, in the e-supplement, different additional materials can be found, whicharehighlightedineachchapter. The advantage of using the e-supplement is that it offers the possibility of updating the case studies and adding additional materials more dynamically than producingneweditionsofthetextbook.Anotheradvantageistobeabletokeepthe hardback text short and concise. Finally, modern students are quite different from students who studied 20 years ago: they cannot imagine the study process without onlineresources. Table 1 summarizes some recommendations for instructors concerning how to structurecoursesatdifferentteachinglevelsusingthistextbook.Thisstructurerelies on the teaching concept in the bachelor’s specialization “Supply Chain and Operations Management” and the master program “Global Supply Chain and OperationsManagement”attheBerlinSchoolofEconomicsandLaw. Theauthorsgratefullyacknowledgeallthosewhohavehelpedusinbringingthis booktopublication.Firstandforemost,wehavegreatlybenefitedfromthewealthof literature published on the subjects of SCOM and related topics. We thank Dr.MarinaIvanovaforcoauthoringChap.4“SupplyChainStrategy”andChap.6 “Production Strategy.” We would like to thank all our colleagues from the Berlin