Supply Chain Engineering: Models and Applications, 1st Edition (Paperback) book cover

Supply Chain Engineering

Models and Applications, 1st Edition

By A. Ravi Ravindran, Donald P. Warsing, Jr.

CRC Press

546 pages | 79 B/W Illus.

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Winner of 2013 IIE/Joint Publishers Book-of-the-Year Award

Emphasizing a quantitative approach, Supply Chain Engineering: Models and Applications provides state-of-the-art mathematical models, concepts, and solution methods important in the design, control, operation, and management of global supply chains. The text provides an understanding of how companies plan, source, make, and deliver their products to create and/or maintain a global competitive advantage. It emphasizes application of operations research models and methods to optimize the various components of an integrated supply chain.

The authors have carefully constructed the book so that it is not so "micro" in its focus that the perspective on the larger business problem is lost, nor is it so "macro" in its treatment of that business context that it fails to develop students’ appreciation for, and skills to solve, the tactical problems that must be addressed in effectively managing flows of goods in supply chains. Building students’ knowledge of the first principles of supply chain engineering, the book covers the traditional issues in operations, logistics, and supply chain management—forecasting demand, managing inventories, managing transportation, and locating facilities. It also includes a number of new optimization tools such as risk pooling, for addressing these problems, based on recent research.

In addition, the authors’ treatment of managing customer-supplier relations supplies a fresh perspective that draws on recent research using multiple criteria optimization methods. Moreover, the chapter on managing risks in supply chains presents important problems that extend beyond the traditional treatment of supply chain management. Building a bridge between theory and practice, the authors pull all of these themes together in the culminating chapter that solidifies students’ understanding of managing global supply chains.


"Everyone admires the supply chain efficiency that makes glitzy products like Apple iPhone and iPad available everywhere or the availability of Coca-Cola drink even in many remote tourist spots. But not many understand the 'secret sauce.' This book unravels the mystery of the mathematics behind supply chain without intimidating the readers. Readers’ interest is maintained through contemporary examples and issues without sacrificing the rigor. A much-needed balanced book that has deftly managed the twin objectives of rigor and readability, breadth and depth and theory and practice admirably well."

—Prof S. Sadagopan, IIIT Bangalore, India

"… a very comprehensive first-year graduate level textbook covering all aspects of global supply chain management, incorporating optimization and MCDM (multi-criteria decision making) into the process of supply chain design, decision making, and operation."

—Katta G. Murty, University of Michigan, Ann Arbor, USA

"This volume is included in curricula for industrial engineering and supply chain as well as MBA students, however it makes a good bridge for readers looking to move from simple lean or Japanese production methods based on kanban and cells, into deeper, more responsive globally integrated networks. … Exercises complete the book’s rigorous approach to proving the concepts. Risk pooling, a key logistics method, is covered thoroughly with questions that plumb the reader’s general and detailed comprehension."

—Blue Heron Journal

Table of Contents

Introduction to Supply Chain Engineering

Understanding Supply Chains

Flows in Supply Chains

Meaning of Supply Chain Engineering

Supply Chain Decisions

Enablers and Drivers of Supply Chain Performance

Assessing and Managing Supply Chain Performance

Relationship between Supply Chain and Financial Metrics

Importance of Supply Chain Management

Organization of the Textbook

Summary and Further Readings



Planning Production in Supply Chains

Role of Demand Forecasting in Supply Chain Management

Forecasting Process

Qualitative Forecasting Methods

Quantitative Forecasting Methods

Incorporating Seasonality in Forecasting

Incorporating Trend in Forecasting

Incorporating Seasonality and Trend in Forecasting

Forecasting for Multiple Periods

Forecasting Errors

Monitoring Forecast Accuracy

Forecasting Software

Forecasting in Practice

Production Planning Process

Aggregate Planning Problem

Linear Programming Model for Aggregate Planning

Nonlinear Programming Model for Aggregate Planning

Aggregate Planning as a Transportation Problem

Aggregate Planning Strategies: A Comparison

Summary and Further Readings

Replenishment (CPFR)



Inventory Management Methods and Models

Decision Framework for Inventory Management

Some Preliminary Modeling Issues

Single-Item, Single-Period Problem: The Newsvendor

Single-Item, Multi-Period Problems

Multi-Item Inventory Models

Multi-Echelon Inventory Systems


Further Readings

A Appendix: The Bullwhip Effect




Transportation Decisions in Supply Chain Management


Motor Carrier Freight: Truckload Mode

Accounting for Goods in transit

Stepping Back: Freight Transportation Overview

More General Models of Freight Rates

Building A Rate Model: LTL Service

A More General Rate Model for LTL Service

Beyond Truck Transport: Rail and Air Cargo


Further Readings



Location and Distribution Decisions in Supply Chains

Modeling with Binary Variables

Supply Chain Network Optimization

Risk Pooling or Inventory Consolidation

Continuous Location Models

Real-World Applications

Summary and Further Readings



Supplier Selection Models and Methods

Supplier Selection Problem

Supplier Selection Methods

Multi-Criteria Ranking Methods for Supplier Selection

Multi-Objective Supplier Allocation Model

Summary and Further Readings



Managing Risks in Supply Chain

Supply Chain Risk

Real World Risk Events and Their Impacts

Sources of Supply Chain Risks

Risk Identification

Risk Assessment

Risk Management

Best Industry Practices in Risk Management

Risk Quantification Models

Value-at-Risk (VaR) Models

Miss-the-Target (MtT) Risk Models

Risk Measures

Combining VaR and MtT Type Risks

Risk Detectability and Risk Recovery

Multiple Criteria Optimization Models for Supplier Selection Incorporating Risk

Summary and Further Readings




Global Supply Chain Management

History of Globalization

Impacts of Globalization

Global Sourcing

International Logistics

Designing a Resilient Global Supply Chain: A Case Study

Summary and Further Readings




Appendix A: Multiple Criteria Decision Making: An Overview


About the Series

Operations Research Series

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Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Purchasing & Buying
TECHNOLOGY & ENGINEERING / Engineering (General)
TECHNOLOGY & ENGINEERING / Industrial Engineering
TECHNOLOGY & ENGINEERING / Operations Research