CPI099 - Basics of Supply Chain Management

Outline info
Last revision date 2018-07-20 12:20:29.949
Last review date 2018-07-20 12:20:54.435

Subject Title
Basics of Supply Chain Management

Subject Description
This is an introductory subject for production and inventory management personnel and CPIM candidates. This subject covers basic definitions and concepts for planning and controlling the flow of materials into, through, and out of an organization. It explains fundamental relationships among the activities that occur in the supply chain from suppliers to customers. In addition, the subject addresses types of manufacturing systems, forecasting, master planning, material requirements planning, capacity management, production activity control, purchasing, inventory management, distribution, quality management, and Just-in-Time manufacturing.

Credit Status
One credit toward the Certified in Production and Inventory Management (CPIM) certification offered by APICS - The Association for Operations Management

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Describe basic business concepts, including the various production environments used for the transformation process (demand into supply) and financial fundamentals.

2. Demonstrate a basic understanding of markets and customer expectations, the definition of value and a fundamental overview of demand forecasting.

3. Demonstrate an understanding of the design, management and control of the transformation process itself.

4. Demonstrate an understanding of the concepts of inventory, purchasing, and physical distribution.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

This subject is the suggested prerequisite to the other CPIM subjects, but, it is not required.

Topic Outline
I.   Businesswide Concepts
This section of the outline covers basic businesswide concepts, including the various production environments used for the transformation processes and financial fundamentals.
Also in this section, three of the more common companywide management approaches (MRP II, JIT, and TQM) are individually presented together with their relationships.

A. Elements of the Supply Chain

  • Supplier
  • Producer
  • Distributor
  • Retailer
  • Customer
  • Service and support
B. Operating Environments
  • Definition and impact
  • Process choices
  • Impact of product design
  • Production environment
C. Financial Fundamentals
  • Statements
  • Costs
  • Analysis
D. Manufacturing Resource Planning (MRP II)
  • Objectives
  • Key principles and characteristics
E. Just-in-Time (JIT)
  • Objectives
  • Key principles and characteristics
  • Concepts of waste and value-added activity
F. Total Quality Management (TQM)
  • Objectives
  • Key principles and characteristics
G. Relationships among MRP II, JIT, and TQM

II.  Demand Planning
This section covers demand planning, including a basic understanding of markets and customer expectations, the definition of value, and a fundamental overview of demand forecasting.

A. Marketplace-Driven
  • Customer
  • Competitors
  • Economy and regulatory policy
B. Customer Expectations and Definition of Value
  • Order winners/qualifiers
  • Marketing strategy
C. Customer Relationships
  • Expanding product/service offerings
  • Design assistance
  • Information/communications
D. Demand Management
  • Sources of demand
  • Forecast management
  • Distribution requirements planning (DRP)

III. Transformation of Demand into Supply
This section includes design, management, and control of the transformation process itself.  The first part of this section includes the design of products, processes, and information systems used for planning.  The rest of the section includes fundamentals of planning systems, execution controls, and performance measures.

A. Design
  • Manufacturing feasibility
  • Planning parameters
  • Data
  • Functional responsibilities
B. Capacity Management
  • Resources
  • Measuring capacity
  • Capacity planning
  • Bottlenecks/constraints
C. Planning
  • Business planning
  • Sales and Operations Planning (SOP)/Production Planning (PP)
  • Master scheduling and rough-cut capacity planning
  • Material Requirements Planning (MRP) and Capacity Requirements Planning (CRP)
D. Execution and Control
  • Customer service
  • Linkages to the master schedule
  • Scheduling techniques
  • Work-in-Process (WIP)
  • Quality assurance
E. Performance Measurements
  • Strategic
  • Tactical

IV. Supply
This section is devoted to supply issues.  These include the concepts of inventory, purchasing, and physical distribution.

A. Inventory
  • Categories
  • Functions
  • Dependent versus independent demand systems
  • Management
  • Order systems
  • Cost analysis
B. Purchasing
  • Receiving and analyzing notification of need
  • Selecting suppliers
  • Supplier agreements
  • Order management
C. Physical Distribution system
  • Transportation
  • Warehousing
  • Distribution inventory
  • Interfaces with production, marketing, and finance  

Mode of Instruction
Lectures with regular problem solving, case studies and discussion of assignments. 

Prescribed Texts
Student workbook provided by APICS.

Reference Material

Required Supplies

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.

Modes of Evaluation
70% attendance is required for a satisfactory grade on your college transcript.

This is a review subject which prepares students to write the APICS exam.

Students must contact APICS, by phone or mail, to register in order to write the exam. Exams are administered by APICS and are conducted by  computer based testing at Pearson Vue www.pearsonvue.com.  Pearson VUE Customer Care at 1-800-274-8399 or 610-617-5093
Please contract APICS (1-800-444-2742) for exam dates and details.
Students are given 3 hours to complete the Basics of Supply Chain Management exam which consists of 105 multiple-choice questions.  

Approved by: Barb Shannon, Denis Gravelle, Sharon Estok