Sunil Chopra's " Supply Chain Management: Strategy, Planning, and Operation" (7th Edition)

Speaker Notes: Chopra divides decisions into three categories. Strategy is about the "bricks and mortar"—deciding where to build factories and warehouses. Planning deals with how to use that infrastructure over the next year. Operations are the day-to-day activities. A common failure is trying to fix a strategic problem (like a factory in the wrong location) with operational changes (like rushing shipments).

  • Facilities:

    Cycle View: Focuses on processes divided into cycles performed at the interface between two successive stages (e.g., Customer Order Cycle, Replenishment Cycle).

    1. Facilities: Where to locate? Centralized vs. Decentralized.
    2. Inventory: How much to hold? Cycle stock vs. Safety stock.
    3. Transportation: How to move? Fast (Air) vs. Cheap (Sea/Rail).

    The 7th edition emphasizes several high-level concepts critical for any supply chain presentation:

    Chopra identifies six key "levers" that managers use to influence the balance between responsiveness and efficiency: