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Introduction
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. Chapter 1, Introduction (10 pages), explores the benefits of supply chains as well the inherent risks. While the increased global connections in a supply chain can provide greater cost efficiency, they also expose the system to a greater risk from disruptions like piracy, natural disasters, and epidemics. The author explains that, since a supply chain is often based on a "just-in-time" delivery, a problem in one section can throw off the entire process. Thus, he advises managers to incorporate flexibility into a supply chain, by methods such as diversified product sourcing, multiple transportation routes, and other contingency planning. He highlights the importance of anticipating unexpected consequences and categorizes risks into internal (such as government regulations and organizational delays) or external (such as market trends and political events). He provides a detailed discussion of examples in each risk category. -
Supply Chain Risk Management Process
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 2, Supply Chain Risk Management Process (18 pages), the author describes how modern supply chains have evolved in complexity due to the growth of global competition and technological change. He contends that the importance of risk management has grown accordingly, becoming part of part of organizational strategy and planning. He presents a basic model for risk management in four steps: identification, assessment, avoidance, and mitigation. He describes how risk mitigation focuses on the source of risk and outlines four areas of risk: supply, demand, products, and information, and provides examples for each. He also considers four methods of supply chain coordination, including Vendor-Managed Inventory (VMI) and continuous replenishment. He highlights examples of supply chain disruption due to natural disasters and provides nine coping strategies, including postponement, economic supply incentives, and dynamic assortment planning. -
Risk Matrices in Supply Chain Risk Management
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 3, Risk Matrices in Supply Chain Risk Management (14 pages), the authors discuss how to use a matrix planning tool and rating system. He considers risk identification and present an enterprise risk management framework to assist managers in approaching different risk types, such as legal, market, and operational. He explains how a risk matrix can help a manager determine the probability of success and identify areas that need attention. He demonstrated the matrix, reviews the challenges in using it, and then presents detailed analysis of several examples of decision-making with a matrix. -
Supply Chain Selection Decisions
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. Chapter 4, Supply Chain Selection Decisions (18 pages), reviews how to organize decision-making criteria when selecting sources, channels, or routes in a supply chain. The author reviews the creation of a value hierarchy to assess the risks involved in supply chain selection decisions. He considers decisions made on multiple criteria and explains each step in a simple multi-attribute rating theory (SMART). He illustrates this technique through a detailed example of a sourcing decision. He also provides examples of the supplier segmentation process and product design selection. -
Simulation of Supply Chain Risk
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 5, Simulation of Supply Chain Risk (16 pages), the author outlines basic concepts in modeling risk. When risks can be based on probability, he advises managers to use a Monte Carlo simulation and provides an example based on a military supply network. He demonstrates how to use Net Present Value (NPV) model and presents an example where levels of funding are uncertain. He also consider risk management for inventory systems and models a basic simulation using Crystal Ball to analyze data. -
Supply Chain Management Risk Models
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. Chapter 6, A Simulation of Supply Chain Risk Models (12 pages), focuses on a Monte Carlo simulation used to manage the risks of selecting supply vendors. The author uses vendor data to demonstrate in detail how a simulation can frame the uncertainties in the decision-making process. He also explains the need for a program such as Crystal Ball in the simulation. He explains how to use the Value at Risk (VaR) Concept to determine risk exposure in a supply chain and provides an example of a vendor selection model. The chapter ends with a real-world example of a furniture supply chain. -
Optimization Models in Supply Chain Risk Management
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 7, Optimization Models in Supply Chain Risk Management (22 pages), the author presents linear programming as a tool for operations management. He reviews different model types, such as product mix, blending, and transportation, and the corresponding variables, functions, and constraints. He provides detailed analysis of the components in linear programming through an example of a petroleum shipping supply chain, reviewing the solution, assumptions, and complications of the model. He also explores the metals production industry to show the potential of optimization models and outlines two real-world examples. First, how one company built a decision support system (DSS) to minimize costs. Second, how a mixed integer programming model optimizes medical supply transportation. -
Balanced Scorecard in Supply Chain Risk Management
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 8, Balanced Scorecard in Supply Chain Management (14 pages), the author explores tools to monitor organizational progress. He explain the basics of a balanced scorecard, selecting four strategic elements to measure, and add the SMART approach as a way to gauge performance within the scorecard framework. He outlines guidelines for using balanced scorecard for supply chain management, linking risk management to strategic performance. He provides detailed analysis of using both a balanced scorecard and SMART for supply chain management, including examples from construction contractors, port authority, and petroleum businesses. -
Recapitulation
Supply Chain Information Technology, Second Edition, is a seven-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author provides tools to evaluate, select, and coordinate systems for supply chain management (SCM). He reviews fundamental elements of different supply chain systems and provides tools for determining the type of system that will best fit a business process. The second edition includes new and updated examples. In Chapter 7, Recapitulation (9 pages), the author discusses issues involved in implementing SCM systems. First, he explains the need for training as part of any transition to a new system, with a focus on both how to use the system as well as the business process that the system supports. He mentioned common problems in training and suggests several training methods. Second, he explains why systems are updated an outlines several benefits. Third, he outlines several common system add-ons, such as a customer relationship management module. He also looks at the considerations for green SCM. -
Supply Chain Software Installation Project Management
Supply Chain Information Technology, Second Edition, is a seven-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author provides tools to evaluate, select, and coordinate systems for supply chain management (SCM). He reviews fundamental elements of different supply chain systems and provides tools for determining the type of system that will best fit a business process. The second edition includes new and updated examples. Chapter 6, Supply Chain Software Installation Project Management (18 pages), the author reviews criteria for the successful implementation of a new system. He argues that the project manager has the most influence the ultimate success of the installation. He outlines three general approaches based on timing and location of the installation: pilot implementation approach, Big Bang implementation approach, and the phased implementation approach. He provides steps to manage risk involved in the transition to a new system. He demonstrates project management by outlining a critical path model (CPM) and two visual representations: a network and Gantt chart, as well as early and late start schedules. To further demonstrate the challenges of SCM installation, he provides a business case, Enterprise Resource Planning Project Problems in Nevada Department of Motor Vehicles. -
System Selection
Supply Chain Information Technology, Second Edition, is a seven-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author provides tools to evaluate, select, and coordinate systems for supply chain management (SCM). He reviews fundamental elements of different supply chain systems and provides tools for determining the type of system that will best fit a business process. The second edition includes new and updated examples. In Chapter 5, System Selection (20 pages), the author highlights the need to build a business case when selecting SCM software. He presents tools for basic ï¬nancial analysis such as total cost of ownership, cost benefit analysis, and net present value. He also explains the limitations of these tools and suggests that most businesses need to use multiple objective analysis that incorporate both short- and long-term factors such as maintenance and quality. He illustrates methods such as SMART and value analysis with a short business case, Enterprise Resource Planning System Evaluation by Toroid International Ltd. -
Business Process Reengineering in Supply Chains
Supply Chain Information Technology, Second Edition, is a seven-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author provides tools to evaluate, select, and coordinate systems for supply chain management (SCM). He reviews fundamental elements of different supply chain systems and provides tools for determining the type of system that will best fit a business process. The second edition includes new and updated examples. In Chapter 4, Business Process Reengineering in Supply Chains (11 pages), the author examines the role of business process reengineering (BRP) in an ERP system. He outlines the business process, dividing it into two categories: operational (business functions) and infrastructural (administrative). He explains how BPR identifies best practices and discusses the value of benchmarking with peer groups. He highlights two methods for implementing process reengineering, clean slate and technology-enabled, and compares the advantages of each method. He provides post-audit analysis of a large manufacturing company's SCM software implementation as an example of BPR. -
Supply Chain Management Software Options
Supply Chain Information Technology, Second Edition, is a seven-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author provides tools to evaluate, select, and coordinate systems for supply chain management (SCM). He reviews fundamental elements of different supply chain systems and provides tools for determining the type of system that will best fit a business process. The second edition includes new and updated examples. In Chapter 3, Supply Chain Management Software Options (15 pages), the author looks in greater depth at the options available for management systems. He reviews the range of options, including a customized in-house system, customized vendor system, selected modules, and an open-source system. He compares the basic characteristics of each option and provides a more in-depth review of the outsourcing and open source options. The chapter ends with a short business case, Implementation of an Open-Source Enterprise Requirements Planning System. -
Development of ERP and SCM
Supply Chain Information Technology, Second Edition, is a seven-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author provides tools to evaluate, select, and coordinate systems for supply chain management (SCM). He reviews fundamental elements of different supply chain systems and provides tools for determining the type of system that will best fit a business process. The second edition includes new and updated examples. In Chapter 2, Development of ERP and SCM (18 pages), the author explores the modular structure of an ERP system. He describes basic materials requirements planning (MRP) as a foundation for understanding supply chain management, illustrating concepts with sample forecast, bill of materials, and inventory record documents. He explains how advance planning system (APS) modules add greater control of supply chain complexities and provides a short, illustrative business case, APSs in Swedish Seed Distribution. -
Supply Chain Information Systems
Supply Chain Information Technology, Second Edition, is a seven-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author provides tools to evaluate, select, and coordinate systems for supply chain management (SCM). He reviews fundamental elements of different supply chain systems and provides tools for determining the type of system that will best fit a business process. The second edition includes new and updated examples. Chapter 1, Supply Chain Information Systems (22 pages), begins with a brief look at the development of supply chains and systems for managing them. The author describes six basic elements in the supply chain process, from product development to customer relationship management, and says that system applications are usually oriented towards a particular process element. He reviews the evolution of several supply chain systems, including materials requirements planning (MRP), enterprise resource planning (ERP), and advanced planning system (APS) software, as well as systems for warehouse management, transportation management, and manufacturing execution. He also looks at more recent systems developments and online marketplaces. He provides a detailed examination of the benefits of an ERP system and a warehouse management system. -
Recapitulation
Supply Chain Information Technology is a seven-chapter book written by David L. Olson, the James & H.K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska, and published by Business Expert Press in January of 2011. Written for both students of and business professionals in the supply chain management field, the text examines the influence of rapidly growing computer technology systems on supply chain management and how these systems provide supply chains with information support. In addition to surveying the systems available that are used by business to give supply chains this information system support, the author demonstrates the design of these systems, and the tasks they perform, with the help of analytic techniques and models. The seventh and final chapter discusses three issues related to current events in enterprise systems: the importance of training in obtaining effective use of supply chain management systems, the issues presented by software vendors upgrading their systems, and the evolution of added functionality, or add-on's, in the software systems field. The chapter concludes with a case study highlighting the lessons a mortgage bank learned from the implementation of enterprise application integration. -
Supply Chain Software Installation Project Management
Supply Chain Information Technology is a seven-chapter book written by David L. Olson, the James & H.K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska, and published by Business Expert Press in January of 2011. Written for both students of and business professionals in the supply chain management field, the text examines the influence of rapidly growing computer technology systems on supply chain management and how these systems provide supply chains with information support. In addition to surveying the systems available that are used by business to give supply chains this information system support, the author demonstrates the design of these systems, and the tasks they perform, with the help of analytic techniques and models. In Chapter 6 the author presents issues in implementing Supply Chain Management (SCM) software systems along with a demonstration of project management in the SCM software context. Topics include: approaches to the implementation process, installation project risk, software alternatives for project management, and critical path models of SCM software options. The chapter concludes with a case study demonstrating some of the difficulties encountered in implementing software projects within organizations. -
System Selection
Supply Chain Information Technology is a seven-chapter book written by David L. Olson, the James & H.K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska, and published by Business Expert Press in January of 2011. Written for both students of and business professionals in the supply chain management field, the text examines the influence of rapidly growing computer technology systems on supply chain management and how these systems provide supply chains with information support. In addition to surveying the systems available that are used by business to give supply chains this information system support, the author demonstrates the design of these systems, and the tasks they perform, with the help of analytic techniques and models. Chapter 5 examines the costs that arise when implementing supply chain management (SCM) software and demonstrates the methods used to evaluate SCM software proposals, including: cost-benefit analysis, net present value calculation, payback, sensitivity analysis, value analysis, and the SMART analysis for multiple criteria decision analyses. -
Business Process Reengineering in Supply Chains
Supply Chain Information Technology is a seven-chapter book written by David L. Olson, the James & H.K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska, and published by Business Expert Press in January of 2011. Written for both students of and business professionals in the supply chain management field, the text examines the influence of rapidly growing computer technology systems on supply chain management and how these systems provide supply chains with information support. In addition to surveying the systems available that are used by business to give supply chains this information system support, the author demonstrates the design of these systems, and the tasks they perform, with the help of analytic techniques and models. Chapter 4 explores the relationship between business process reengineering (BPR) -- an approach to redesigning the way a firm operates with the goal of maximizing its value-added inputs - and supply chain management software solutions. Key concepts and best practices are discussed. Two basic methods of implementing BPR are examined: clean-slate reengineering and technology-enabled reengineering. The chapter concludes with a case study demonstrating the role of BRP in extensive software implementations. -
Supply Chain Management Software Options
Supply Chain Information Technology is a seven-chapter book written by David L. Olson, the James & H.K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska, and published by Business Expert Press in January of 2011. Written for both students of and business professionals in the supply chain management field, the text examines the influence of computer technology systems on supply chain management and how these systems provide supply chains with information support. In addition to surveying the systems available that are used by business to give supply chains this information system support, the author demonstrates the design of these systems, and the tasks they perform, with the help of analytic techniques and models. In Chapter 3 the author discusses optional forms of supply chain information system software, or modules, in greater detail. Other topics include: outsourcing supply chain management software, open-source supply chain software, and a comparison of various supply chain management software sources. The chapter is concluded with a case study of a small organization's experience in obtaining inexpensive software support for their made-to-order planning operation.