Incorporating Realistic Parameters into Decision Models for Teaching Supply Chain Management and Enterprise Systems

摘要

Transportation costs and multi-organization inventory decisions are incorporated into a supply chain framework implemented in a Microsoft Excel spreadsheet. This spreadsheet is used to teach the topic of integrated supply chain lot-sizing decision making in advanced operations management courses. The use of the Least Unit Cost method is demonstrated with the incorporation of transportation rates between supply chain members, in-transit inventory carrying costs, and the simultaneous consideration of ordering, warehouse carrying, purchasing, and where applicable, production costs for all supply chain members.