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Teaching the Costs of Uncoordinated Supply Chains

Author

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  • Charles L. Munson

    (College of Business and Economics, Washington State University, PO Box 644736, Pullman, Washington 99164-4736)

  • Jianli Hu

    (College of Business and Economics, Washington State University, PO Box 644736, Pullman, Washington 99164-4736)

  • Meir J. Rosenblatt

    ((deceased) formerly Professor at Washington University in St. Louis, Missouri, and Technion'Israel Institute of Technology)

Abstract

Supply-chain management has become a prominent area for teaching and research. Academics and managers realize that communication and coordination among members of a supply chain enhance its effectiveness, creating financial benefits to be shared by the members. We have collected numerical examples covering (1) location decisions, (2) centralized warehousing, (3) lot sizing with deterministic demand, (4) demand forecasting, (5) pricing, and (6) lot sizing with stochastic demand in a newsvendor environment. The examples are suitable for classroom use, and they illuminate the rewards supply-chain members can obtain by eliminating naturally occurring supply-chain inefficiencies and the costs of not doing so.

Suggested Citation

  • Charles L. Munson & Jianli Hu & Meir J. Rosenblatt, 2003. "Teaching the Costs of Uncoordinated Supply Chains," Interfaces, INFORMS, vol. 33(3), pages 24-39, June.
    • Handle: RePEc:inm:orinte:v:33:y:2003:i:3:p:24-39
    DOI: 10.1287/inte.33.3.24.16009
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    References listed on IDEAS

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    Cited by:

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    2. Boaz Golany & Uriel G. Rothblum, 2006. "Inducing coordination in supply chains through linear reward schemes," Naval Research Logistics (NRL), John Wiley & Sons, vol. 53(1), pages 1-15, February.

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