Basics of Supply Chain Management: 1st Edition (Hardback) book cover

Basics of Supply Chain Management

1st Edition

By Jayanta Kumar Bandyopadhyay

CRC Press

366 pages | 4 B/W Illus.

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Hardback: 9781466588929
pub: 2015-10-16
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The practice of supply chain management has become widespread in most industries. It is now included in the curriculum of many business schools in the United States and in many countries around the world. A number of professional associations, such as the American Production and Inventory Control Society and the Supply Chain Management Society, offer certification programs in supply chain management for practicing professionals. This book covers the contents of the basic supply chain management course and helps you prepare for the certification examination in supply chain management.

Basics of Supply Chain Management covers all modules of a core supply chain management course, including:

  • Transformation process
  • Forecasting and managing demand
  • Planning and production scheduling
  • Inventory management
  • Purchasing management
  • Distribution management
  • Global supply chain issues

Authored by a practitioner with the highest level of industrial experience and recognition, this book presents each concept fully and in an accessible manner. To aid understanding, it includes many practice problems, self-study test questions, and case studies. The case studies of 20 different companies can be used to teach graduate courses in supply chain management using the case method.

National as well as global demand for supply chain management experts has been growing exponentially. Therefore, learning supply chain management can lead to a very rewarding professional career path. This book gives you the information you need to get started on that path.


This title, authored by a well-qualified academic, provides a top-level view of the elements of supply chain management. Manufacturing supply and demand management is explored via the presentation of a number of qualitative and quantitative forecasting techniques, including averages, smoothing, seasonal demand, and regression analysis. Master planning at the departmental level begins with the business plan and includes production plans, master production schedules, material requirements plans, and capacity requirement plans, to name a few processes discussed…Top level strategic planning is briefly addressed in the final chapter, which explores global total quality management and customer satisfaction. Attributes of the work are definitions, examples, chapter discussion questions, and 19 cases written to appeal to an entry-level audience….

L. C. Gordon, University of La Verne, USA

Table of Contents



Elements of Supply Chain

Operating Environment of Supply Chain

Manufacturing Planning and Control System

Planning Hierarchy in a Manufacturing Planning and Control System

Capacity Management

Computerized Manufacturing Resource Planning System

Enterprise Resource Planning Systems

Distribution Planning Systems

Basic Production Planning Strategies

Transformation of Demand into Supply: Designing Products to Meet Customer Expectations


Designing Products to Meet Customer Needs and Expectations

Product Design Determines Product Quality

Total Quality Management and Product Design

Quality Function Deployment and Product Design

Taguchi’s Methodology for Product Design

Product Design Strategies

Distinctive Competence and Product Design

Order-Winning Criteria and Order Qualifiers and Product Design

Transformation Process Choices for Making Products Conforming to Product Design Specifications and Tolerances


Traditional Manufacturing Process Choices

Just-in-Time Manufacturing

Objectives of the JIT Approach to Manufacturing

The Key Elements of the JIT Concept

Principles of JIT Manufacturing

Manufacturing Process Design for JIT Production

Characteristics of a JIT Environment

Supplier Relations in JIT Environment

Employee Involvement and Empowerment in JIT Environment

Effects of JIT on Manufacturing Planning and Control System

Effects of JIT on Production Planning

Effects of JIT on Master Production Scheduling

Effects of JIT on Material Requirements Planning

Effects of JIT on Capacity Management

Effects of JIT on Inventory Management

Effects of JIT on Organization Design

Effects of JIT on Job Design

Total Quality Management and JIT


Taguchi’s Methodology for Quality Product Design

Mistake Proofing and Automatic On-Line Inspection

Statistical Concepts for Quality Management

Statistical Quality Control Charts

Process Capability Analysis

Demand Forecasting and Demand Management


Understanding Target Customers

Demand Management

Demand Forecasting

Principles of Forecasting Demand

Collection and Preparation of Data for Forecasting

Forecasting Methods

Some Quantitative Forecasting Techniques for Forecasting Short-Range Demand

Forecasting Seasonal Demand

Forecasting Long-Range Trend

Tracking the Forecast for Error

Master Planning


Manufacturing Planning and Control System

Priority and Capacity

Planning Hierarchy

Computerized Manufacturing Planning and Control System

Production Planning Strategies

Basic Production Planning Strategies

Developing a Production Plan

Resource Requirements Planning

Master Production Scheduling


Master Production Schedule

Preparing a Master Production Schedule

Master Scheduling Decisions

MPS and Delivery Promises

Planning Horizon for an MPS

Time Fences

Summary and Conclusion

Material Requirements Planning


Material Requirements Planning

Objectives of MRP

MRP System

Inputs to the MRP System

Capacity Planning

Available Capacity

Work Center Utilization Rate

Work Center Efficiency

Work Center Rated Capacity

Work Center Demonstrated Capacity

Work Center Required Capacity

Inputs to Capacity Requirements Planning

Shop Calendar

Scheduling Orders

Load Profile

Production and Purchasing Activity Control

Planning Activities

PAC in Different Types of Manufacturing Systems

Data Requirements for Processing PAC

Order Preparation


Manufacturing Lead Time

Scheduling Techniques

Inventory Management


Aggregate Inventory Management

Physical Classification of Inventory

Supply and Demand Patterns of Inventory

Functions of Inventories in Batch Production Systems

Objectives of Inventory Management

Inventory Costs

ABC Inventory Control

Inventory Ordering System Models

Basic Economic Order Quantity Model

Purchasing Management


Purchasing Management

Purchasing Cycle

Developing Specification

Selecting Suppliers

Supplier Development

Supplier Relationship Management

Physical Distribution Management


Physical Supply Management

Physical Distribution Management

An Integrated Physical Distribution System

Modes of Transportation

Types of Carriers

Concept of Total System Cost

Example Problems

Distribution Inventory Management


Distribution Inventories

Distribution Inventory Management Systems


Material Handling in a Warehouse

Multi-warehouse System

Cost Characteristics in Multi-warehouse System

Total Cost Curve of a Multi-warehouse System

Global and Other Issues in SCM


Total Quality Management in the Global Supply Chain

Respecting Human Resources and Human Rights in the Global Supply Chain

Suppliers Relationship Management in the Global Supply Chain

Customer Relationship Management in the Global Supply Chain

Appendix A: Cases in Supply Chain Management

Appendix B: Self-Study Practice Questions for Basic Supply Chain Management

About the Author

Jayanta K. Bandyopadhyay, PhD, CFPIM, is a professor of operations and supply chain management at DeVry University of Chicago, Illinois, and an emeritus professor of management at Central Michigan University of Mount Pleasant, Michigan. He earned his PhD degree in industrial engineering from Texas Tech University at Lubbock, Texas, in 1973, and his master’s degree in industrial engineering and operations research from the University of Texas at Austin, Texas, in 1970. He was certified as a quality auditor (CQA) by the American Society for Quality, an international quality auditor (IQA) by the Institute of Quality Assurance, London, and a quality systems auditor (QSA) by the Registrar Accreditation Board of the American Society for Quality in 1985. He was also made a lifetime member at the fellows level (CFPIM) of the American Production and Inventory Control Society in 1990.

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Purchasing & Buying