Sunil Chopra’s " Supply Chain Management: Strategy, Planning, and Operation " (7th Edition)
: Analyzes design options for moving products from factories to customers, with a focus on Omni-Channel Retailing Chapter 5: Network Design
- Single vs. Multiple sourcing.
- Supplier development vs. switching.
- Design collaboration: Involving suppliers early (Design for Supply Chain).
- Problem: Demand is rarely stable.
- Components of Demand:
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Part 1: Building a Strategic Framework
- Understanding the supply chain decision phases (strategy, planning, operation)
- Process views: Cycle view vs. Push/Pull view
- Competitive and supply chain strategies (the “strategic fit” concept)
- Expanding strategic scope (intra-company to inter-company)
Part 5: Managing Cross-Functional Drivers
- Transportation – modes, routing, and trade-offs
- Sourcing – supplier selection, make vs. buy, procurement risk
- Pricing and revenue management – yield management, markdowns
- Information technology – blockchain, AI, and ERP in the 7th edition updates
- Differential pricing: Different segments pay different prices (airlines, hotels).
- Dynamic pricing: Surge pricing (Uber, Amazon).
- Overbooking: Hedge against no-shows (formula: Cu/(Cu+Co) for seats). Requirements: Market segmentation, demand forecasting, perishable capacity.