ISM 225: Management of Technology 2: Supply Chain Management

Instructor: Subhas Desa Office: E2, Room #369 Phone: 831-459-1641 E-mail:

Lecture Times : Tuesday/Thursday, 4-5:45 PM

Location : Kresge Classroom 325

Office Hours : Monday, 2 - 4PM; and by appointment.

About the course:

MOT II is the second in a sequence of courses in the management of technology. The first course MOT I, provides a systematic methodology and the corresponding set of methods and analytical tools to address the management, development and commercialization (MDC) of technology and products in an integrated manner, which enables the cost-effective and rapid development of profitable and high quality technologies and products. This course, MOT II, will deal the management of the processes involved in technology-business value chains from supplier through technology development, manufacturing and marketing to distribution and sales. In particular, MOT II will develop and apply methods and tools for the design, optimization, selection, and management of these value chain networks.


Chopra, S., and Meindl, P.: Supply Chain Management: Strategy, Planning, and Operations, Prentice-Hall, Second Edition.

Objectives of the course:

•  To understand the stages, processes, and flows involved in the strategic design, planning, and operation of value and supply chains.

•  To develop and apply an integrated framework for designing, planning, and operating a supply chain.

•  To develop and apply methods and tools for effective and efficient management of supply chains. These tools will be both qualitative and quantitative in nature.

•  To gain experience with SCM of high-tech through case studies and the term project.

•  To design and implement a software system for simulating an integrated enterprise supply chain (as part of the term project).


•  Homework: 25%

•  Project: 25%

•  Midterm Exam (May 4): 25%

•  Final Exam: 25%


Project Plan: (dates indicate when progress reports are due)

•  Form project teams and choose technology domain by 1/6

•  Formulate Project Proposal: due 1/13

•  Phase 1 (Technology Strategy and SC Strategy/Design): due 1/20

•  Phase 2 (Supply Chain Modeling and Planning): due 2/10

•  Phase 3: (Software Integration and integrated Supply Chain simulation): due 3/3

•  Phase 4: Closure: due 3/10

Instructions outlining the requirements for each phase of the project will be provided.

General Comments:

•  This course is interactive. We will be actively discussing case studies and homework in class . Therefore, attendance is mandatory .

•  Homework must be turned in on time. This is really to prevent the “bullwhip effect” (see chapter in the textbook on “Coordination”, and also the section on the “Beer Game”)

•  Keep a project notebook , which will be used when grading your term project.

•  Your constructive feedback on an ongoing basis (the “things” you like, your concerns, suggestions for changes and improvements, etc.) will help improve the course in this and following years.

•  If you have any problems related to the course, please see me immediately so that we can resolve the issue quickly.

Course Topics (D/S = Design/Strategy; P = Planning; O= Operations):




Case Study

Textbook Chapter

Introduction to SCM

Stages, Cycles, Flows, IT


1, 12.1-12.3

D/S 1: Supply Chain Performance and Drivers

Strategic fit between competitive and SC strategies

Dell, HP

2, 3, 12.4-12.6

P1: Demand Forecasting in a SC

Time Series Forecasting methods

Specialty Packaging Corporation (SPC)

4,13.1-13.3, 14.1, 14.2

P2: Aggregate Planning

Linear Programming

SPC, Kodak


P3: Planning Supply and Demand in an SC


Mintendo (!)


P4: Managing economies of scale in an SC

Cycle Inventory control



P5: Managing Uncertainties

Safety Inventory control

ALKO, Inc.


P6: Optimal Product Availability




P7, O1: Transportation

Transportation Network Design



D/S 2: Facilities Design

Network Design


D/S 3: Financial Modeling

DCF, NPV analysis, Decision Analysis

AM Tires


O3: Coordination in a SC

Bullwhip Effect

Beer Game


D/S 4: Information Tech.

IT Architecture


12, 14