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Stan Kent, vice president of pharmacy at NorthShore University HealthSystem, is faced with the challenge of seasonal planning for the influenza vaccine. The supply received by the multilocation healthcare system is unreliable in terms of timing and quantity. As part of improved planning, Kent is contemplating a new contract with NorthShore's major supplier of flu vaccines. The options under consideration include fixing either the date of delivery or the quantity delivered. The main decision involved in either option would be how much vaccine to order. The case also provides details about the seasonal influenza epidemic in the United States, illustrates operational complexities of the U.S. flu vaccine supply chain, and provides a brief description of the various channels used to distribute flu vaccine to end consumers.

Global Supply Chain Management is a four-chapter book written by Matt Drake, Director of International Business Programs and Assistant Professor of Supply Chain Management at Duquesne University, and published by Business Expert Press in January of 2012. Written for executives and managers of all levels, the title explores the challenges of managing a global supply chain and discusses what cutting-edge strategies firms can implement to cope with these challenges and improve their supply chain performance. Using case studies to illustrate concepts, the author explores many topics including: supply chain risk management, the total-cost-of-ownership approach to procurement, global supplier selection, network orchestration, transportation and distribution strategies around the world, and transportation security measures. The author opens the first chapter by exploring the concepts underlying supply chain management, terminology specific to the subject, and its evolution relevant to its business functions. The importance of supply chain management to executives and business leaders is discussed and real-world examples to illustrate why and how a firm can derive a competitive edge by managing the supply chain effectively.

Global Supply Chain Management is a four-chapter book written by Matt Drake, Director of International Business Programs and Assistant Professor of Supply Chain Management at Duquesne University, and published by Business Expert Press in January of 2012. Written for executives and managers of all levels, the title explores the challenges of managing a global supply chain and discusses what cutting-edge strategies firms can implement to cope with these challenges and improve their supply chain performance. Using case studies to illustrate concepts, the author explores many topics including: supply chain risk management, the total-cost-of-ownership approach to procurement, global supplier selection, network orchestration, transportation and distribution strategies around the world, and transportation security measures. In the second chapter the author introduces reasons why firms trade globally, the benefits of globalization, and the challenges encountered when a firm is sourcing abroad. The author then discusses the management and mitigation of global supply chain risks as well as strategies for increasing the agility and efficiency of a supply chain. Additionally, he addresses the most pertinent security issues involved when trading internationally; U.S. government security programs are highlighted.

Global Supply Chain Management is a four-chapter book written by Matt Drake, Director of International Business Programs and Assistant Professor of Supply Chain Management at Duquesne University, and published by Business Expert Press in January of 2012. Written for executives and managers of all levels, the title explores the challenges of managing a global supply chain and discusses what cutting-edge strategies firms can implement to cope with these challenges and improve their supply chain performance. Using case studies to illustrate concepts, the author explores many topics including: supply chain risk management, the total-cost-of-ownership approach to procurement, global supplier selection, network orchestration, transportation and distribution strategies around the world, and transportation security measures. In Chapter Three, the author explains key elements that firms must consider when developing a global sourcing strategy. He explores the make-versus-buy decision, global versus local sourcing, and the total cost of ownership. He also discusses methods for selecting, managing, and evaluating successful alliances with international supply chain partners, and he examines innovative supply management relationships developed from the global supply network.

Global Supply Chain Management is a four-chapter book written by Matt Drake, Director of International Business Programs and Assistant Professor of Supply Chain Management at Duquesne University, and published by Business Expert Press in January of 2012. Written for executives and managers of all levels, the title explores the challenges of managing a global supply chain and discusses what cutting-edge strategies firms can implement to cope with these challenges and improve their supply chain performance. Using case studies to illustrate concepts, the author explores many topics including: supply chain risk management, the total-cost-of-ownership approach to procurement, global supplier selection, network orchestration, transportation and distribution strategies around the world, and transportation security measures. Chapter Four discusses the considerations and latest practices that firms implement while venturing into the global marketplace. The author explores strategic options that can improve international operations including exporting, licensing, franchising, joint ventures, and subsidiaries. The importance of transportation infrastructure and its relationship with managing global logistics is discussed in detail, as are international intermediaries that assist with international transportation and documentation processes. Additionally, global warehousing and distribution as well as criteria for establishing efficient global distribution networks are explored.

This is an MIT Sloan Management Review article. Multinational corporations are under growing pressure to make sure that their contractors and subcontractors in China meet environmental standards in their operations. Yet traditional approaches to ensuring environmental, health and safety compliance, such as checklist audits, have proved problematic. The authors conducted research over a one-and-a-half-year period with leading multinational buyers (mostly in the apparel and footwear industries) as well as with NGOs and industry groups active in China. Based on their research, the authors report that rather than simply monitoring Chinese suppliers'compliance with local environmental, health and safety (EHS) standards, leading companies are giving suppliers tools and incentives to independently improve environmental performance. They are helping suppliers use energy, water and materials more efficiently and reaching deeper into their supply chains to where the greatest environmental damage occurs. At the same time, they are overcoming their traditional reluctance as competitors to cooperate in monitoring and fixing problems at common suppliers.<BR> <BR>The authors describe innovative approaches that companies such as Nike are taking. More generally, the authors' recommendations include working closely with suppliers and providing incentives for identifying, disclosing and addressing problems; establishing collaborative relationships with NGOs and industry groups; and finding ways both to learn from suppliers'best practices and to facilitate learning among suppliers.<BR>

Curtis "Hank" Barnette exited Bethlehem Steel's boardroom with a sense of calm and purpose. He loved Bethlehem Steel. He had seen it prosper and decline over the previous 30 years, and he had given most of his life to shepherding it through change. Barnette was a soft-spoken man with graying hair and a serene countenance. He paused at the plate-glass window and looked toward the massive blast furnaces and the miles of steelwork structures on the south side of town. This was American history. So much had happened here: so many lives, families, innovations, and purposeful interactions. And now a special division of the corporation would come to an end on his watch as chairman and CEO: The doors were closing on Bethlehem Steel's Structural Products Division located in the heart of the city of Bethlehem. Or were they? When one door closed, somewhere else a window opened-didn't it? The current business structure would end, but he had assets to work with: the land, historical artifacts, town, buildings, goodwill he'd spent a good part of his life creating, and the people.

Domino's Pizza is the world's second-largest pizza company with 9,436 stores globally, 95% of which are franchised. Domino's franchisees in the U.S. market were able to purchase fresh dough, cheese, pizza toppings, and other menu ingredients and store supplies directly from the company-owned supply chain system. When commodity prices became more volatile in 2007 and 2008, executives at Domino's changed the way they worked with suppliers and franchisees to manage costs and risks, and better leverage the assets of the supply chain system. As the company prepared to accelerate international growth in 2011 and beyond, executives contemplated how to best apply their purchasing and supply chain knowledge into new international markets.

Bergerac Systems is a small, rapidly growing manufacturer of diagnostic instruments used in veterinary practices. The company introduced the OmniVue chemistry analyzer, which enables veterinarians to run a wide range of blood and blood chemistry tests on their animal patients in the office instead of sending them to outside laboratories. OmniVue is easy to operate and produces highly reliable results using a proprietary cartridge for holding the blood specimen during the analysis. Sales of these single-use cartridges are an important part of the revenue stream for the product line. The firm relies on two outside suppliers for the plastic components of the cartridges. The CEO is concerned about inconsistent delivery from the cartridge suppliers which have resulted in shortages and stock-outs. To address the supply chain problems, the CEO considers acquiring one of the suppliers, GenieTech, while the director of planning proposes building the required capabilities within the company's existing manufacturing facilities. Students must perform a quantitative and qualitative analysis of a "make vs. buy" decision while considering expected production capacities, market forecasts, and the company's overall sourcing strategy.

Student Spreadsheet for Product Number 4381.

Riverside District Memorial Hospital (RDMH) is a small rural hospital that must work within an operational budget that is determined by the Ministry of Health and Long Term Care in a Canadian province. This case identifies the emergence of concerns for patient safety related to medication administration, and the challenges of ensuring professional services are maintained by the pharmacy department to serve patients admitted to hospital. The chief nursing executive (CNE) must decide what steps should be taken to reduce this exposure in the context of the complex relationships in which RDMH exists.

Jamie Bailey, owner and president of C.R. Plastics, has successfully grown his business every year since 1994 when he began producing recycled plastic outdoor furniture. This rapid growth has provided its own challenges in terms of constrained financing and by summer 2010, Bailey was desperate for a new source of cash. He subsequently auditioned to be on Dragon's Den, a television show where entrepreneurs can pitch their business to a group of venture capitalists, who may then choose to invest their own cash in exchange for a share of the business. With a week remaining before he has to present his final pitch, Bailey has to make a difficult prediction: How much money will he need to meet the growing demand into 2011? Complicating his analysis are competing proposals to fundamentally change how production is managed. In addition to reconfiguring labour allocation, one method requires significant investment in equipment while the other increases inventory during the off-season. Which alternative will allow the company to retain a greater share of the equity when he pitches his business to the Dragon's Den panel?

In 2006, European automotive supplier Interior Group and China-based China Textile established Interior JV, a joint venture in China to produce seat covers for automakers manufacturing in China. After a slow start, the joint venture began to secure orders and was moving towards a breakeven point. Nonetheless, it was still faced with teething problems, especially in product development time, internal quality and on-time delivery. Though Interior JV had adopted many processes that were used by its European mother company, operating in the foreign environment of an emerging market continued to pose challenges for the joint venture. Now Interior JV must address these problems in order to stay on top of the game.

Samasource sought to use work, not aid, for economic development. The company secured contracts for digital services from large companies in the United States and Europe, divided the work up into small pieces (called microwork) and then sent it to delivery centers in developing regions of the world for completion through a web-based interface. Different from traditional business process outsourcing companies, Samasource relied on a marginalized population of workers to execute the work. The case explores how the company can grow its capability to help individuals around the globe through the provision of digital work. This case includes color exhibits.

Dental Associates of Northern Virginia is one of the largest dental networks in northern Virginia. In this series of two cases, the head administrator must choose between keeping up with new technology by investing in innovative all-porcelain crown-making machines or holding onto a strategy of waiting and seeing. This choice also aligns with the head administrator making a larger decision of whether to enhance the core competency of his network by developing a complete in-house laboratory or continuing to rely on an expensive, but reliable, outside laboratory for all-porcelain restorations. Together, the two cases in the series are rich in concepts of cost, timeliness, quality, and flexibility, as students are forced to see an operations problem from both patient and doctor perspectives. The cases also consider the ever-changing world of technology and how it impacts a doctor’s practice along with an entire network of offices.

This case is a supplement to Dental Associates of Northern Virginia (A).

In the past 25 years, major original equipment manufacturers have delegated the management of their supply chains to a handful of first-tier suppliers. Although this approach frees OEMs from the tasks of building and supervising supply subsystems, speeds up product introductions, and helps manufacturers secure larger volume discounts, it has gone too far. In this article, Choi, of Arizona State University, and Linton, a former chief procurement officer of LG Electronics, point out the dangers of relinquishing so much power to first-tier suppliers: it weakens an OEM's ability to control costs, stay on top of critical technology developments and shifts in demand, and ensure that suppliers are operating in a socially and environmentally sustainable fashion. The solution is for an OEM to selectively establish direct relationships with key lower-tier suppliers. Specifically, an OEM should form close ties with vendors that have a significant impact on the OEM's cost of goods sold, have strong innovation potential, don't pose sustainability risks, and can provide insights into important trends. Implementing this approach isn't simple--it may require reshaping the entire purchasing function. But it's essential for manufacturers that want to stay ahead of competitors.

The Madurai District Cooperative Milk Producers' Union Ltd. also known as Madurai Aavin Milk Dairy (MAMD) has been one of the largest dairies in the southern part of Tamil Nadu, India. One of the major activities in the MAMD's supply chain was to procure milk from the farmers and also to provide necessary technical input facility to them. The procurement was carried out by forming village-level milk producers' cooperative societies (MPCS). The supply of raw milk to MAMD from the farmers around Madurai is decreasing, whereas the demand is increasing. Several strategies are explored by Aavin to meet the demand for their main product, "premium milk". Aavin faces two challenges: 1. Forecasting the demand for premium milk and 2. Meeting the demand in an optimal manner that would maximize their profit.

The owner of a goat herd in Tennessee must decide whether to rent out his herd for a land-clearing project at a nearby resort. Goats are better suited to clearing the land than humans and machines, but the owner has never rented out his goats for such a purpose. The owner must identify costs associated with the project, then determine a price to charge for the service. Since the owner has no prior experience renting out livestock, he must come up with estimates of the incremental costs associated with the rental operation and prepare a bid with little knowledge of rates charged by competitors for goat rentals. This case provides a realistic example of the thought processes that business owners go through when evaluating whether to expand into complementary lines of business, as well as the considerations of entrepreneurs contemplating starting new businesses. See also Goats: The Green Alternative (B) 9B11B025 and Goats: The Green Alternative (C) 9B15D001.

Sym-Bio, an entrepreneurial Chinese diagnostic company with a product line in infectious disease testing, has agreed to be acquired by PerkinElmer, an international corporation with businesses in neonatal testing, life science services, and environmental health. Sym-Bio wants to accelerate its growth and competitive position in China through this strategic move, and PerkinElmer seeks to broaden its access to the Chinese marketplace, leverage the cost advantages of operating in China, and tap into the talent pool of young Chinese scientists. Strategic and operational integration of Sym-Bio into PerkinElmer is explored through the lens of the founder and CEO of Sym-Bio and that of the acquiring company.