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SCM 7397 Global Supply Chain Management

Section 19442 Summer 2 2012

Professor: Gordon D. Smith, Ph.D.
Class Schedule: 6:00 to 10:00 PM Tuesday/Thursday Room: 112 Melcher Hall
Office Hours: MH 260-A Tuesday/Thursday 4:00 until 6:00pm, or by appointment
Office Phone: 713.743.0402 Mobile: 832.477.4393 Email: use BB email for all course
correspondence. Otherwise use my Bauer account gsmith@bauer.uh.edu

I. Course Description

The creation of zones of economic activity such as APEC, ASEAN, EU, NAFTA and Mercosur, and the easing of
trade laws and tariff structures through GATT have helped to create a global marketplace. Today, it is not
uncommon to see a company develop a product in one country, manufacture it in another, and sell it in a third
country. In addition, new products could be introduced in several countries almost simultaneously, and suppliers
with special expertise and technology could collaborate with manufacturers in different countries to create global
products. As the world moves toward an international economy, the battle cry for corporations is increasingly
becoming one of global supply chain management. While globalization promises enormous strategic benefits by
coordinating operations located in different countries, it is imperative for managers to develop a perspective that can
fully understand and exploit the intricacies of the global marketplace. Matching supply and demand is an enormous
challenge for firms; excess supply is too costly, and inadequate supply irritates customers. Managing manufacturing
and service operations across cultural, economic and political boundaries is a formidable challenge, because of
which many globalization efforts are falling short of their promise.

Even as companies have learned to squeeze inefficiencies out of their manufacturing plants, through concepts like
just-in-time, statistical process control and lean manufacturing practices, they still find that moving goods and
services through several layers of their global supply chains is time consuming and costly. Logistics and supply
chain management has become one of the last frontiers that still remain to be conquered by most businesses in the
twenty first century. Yet this cannot be done unless all managers and supervisors, irrespective of their functional
orientation and current job responsibilities, fundamentally understand their supply chains and how their effective
functioning flows right down to the bottom line.

This course will focus on the key issues associated with the strategic planning and tactical operations of global
supply chains. The goals of the course are to provide students with an in-depth knowledge of the strategic issues
involved in managing a global supply chain and how the various supply chain functions are integrated to create the
supply chain. This course will provide you with high-level insight and tactical knowledge regarding key supply
chain drivers.

II. Course Objectives

This course will help students understand the linkage between a firms supply chain strategy and business strategy,
utilize the firms resources more effectively, and the impact of coordinating the movement of goods and services
through different echelons of supply chains in order to create a competitive advantage in the global marketplace.
More specifically, the course will promote the following learning objectives:

Understand the linkage between the coordination of the global supply chain and functional areas of the firm;
Understand important supply chain management frameworks for outsourcing and purchasing, as they relate to
make versus buy alternatives;
Understand the strategic factors that drive and the implications of decisions regarding different outsourcing
Understand the factors that are relevant for a company to develop an appropriate portfolio of relationship types
with their suppliers
Understand the more relevant issues and risks related to operations transferability to different international

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Section 19442 Summer 2 2012
Understand common pitfalls of inventory management and positioning in supply chains and the concept of risk
Understand the role of product development and postponement in supply chains.
Understand the strategic questions related to designing international logistics networks involving factories, flows
and inventory / cross docking;
Understand issues related to the uncertainty and risk management of global supply chains;
Understand the effects and remedies of demand volatility in global supply chains;

Methods and Materials:

The course uses a variety of teaching methods and materials. Managerial concepts are introduced via journal
articles. Analytical tools are discussed in lectures and referenced in various supplemental texts. Cases are used
extensively to illustrate the concepts and tools, and also to suggest the richness and complexity of actual supply
chain management issues.

III. Course Textbook and Other Requirements

Cases - supplied by the instructor:

Managing Supply Chain Complexity in a Tea Manufacturing Company - See BlackBoard

Cases available from Harvard Business School:

The easiest (and least expensive) way to access the cases is through the course page I have created on the
Harvard Business Online website. If you have not registered with Harvard Business Online, you will be
required to do so. The link below will provide you with access to the required case materials for use in this
course (the LINK will also be made available to you via Blackboard):

HBS Cases: http://cb.hbsp.harvard.edu/cb/access/13678763

You will have immediate access to the case materials upon placing your order.

Cases are used to provide students with the opportunity to identify and prioritize organizational problems, and to
develop and defend alternative solutions to those problems. The instructor is available to assist students in preparing
the cases. A total of eight cases will be assigned during the semester, all of which will be graded. Two cases are to
be done individually. Two cases are to be done as a team. All submissions are via BlackBoard.

Case Presentations:
Each student team will have the opportunity of serving as the presenting team for one of the cases and the
questioning team for one of the cases that we will discuss in class. The presenting team will provide the
background and content of the case, an analysis of what the company did correctly or incorrectly, and suggestions
about what the company should do in the future. They should also address any questions given as part of the case
write-up or indicated by the instructor. The case presentation should be appropriate for a senior management
presentation and will be submitted via BB prior to the presentation. The questioning team will be responsible for
questioning the presenting team, offering alternative solutions, and for leading the rest of the class in a discussion of
the case. The questioning team will submit a written list of questions via BB prior to the presentation. The
remaining members of the class will be asked to assess the performance of both teams. The instructor will
incorporate the class evaluations into the participation grades.

Written Cases:
All students are individually required to submit two written case mini-reports. The cases selected will be among
those that a student is not participating in as part of either the presenting or questioning team.

These reports should be no more than two typed pages in length (single spaced, one inch margins, 12-point Times
New Roman font). Proper grammar, spelling, and paragraph construction as well as evidence of effort in crafting a

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Section 19442 Summer 2 2012
well-written analysis are required. Any questions listed in the case itself or on the class BB website should be
addressed within the report. Charts, tables and other graphical displays should be attached as an addendum, and do
not count toward the page requirement. Please note that the information used in the case analysis for written reports
and presentations should be limited to the case itself and the material covered in this course. Each group case
assignment is worth 15% towards your final grade (30% total). You may discuss the individual cases with your
classmates; however they should still be done individually. Be prepared to discuss the cases in class on the due date.
If you cannot make it to class, please e-mail a print-ready file to the instructor. A cover sheet is not necessary - put
your name, pps number and case title in the upper right hand corner of the first page of your write-up.

Case evaluation
The exhibits should contain specific types of analysis (e.g. financial, break-even, capacity, cost, competitive), and
also information that supports your analysis and is relevant but would be too detailed for the report body. Exhibits
should not be simply an extension of the text. Clarity and organization of the case report are critical elements of
success. Use the available pages wisely. In addition the following guidelines will be used to evaluate the
presentations, reports and quality of case discussion in class:

Understanding of the decision situation;

Completeness, depth and accuracy of analysis;
Incorporation of relevant tools of analysis;
Demonstration of the relationships among the important factors in the situation;
Ability to relate concepts discussed in class to the case situations;
Effectiveness, practicality, specificity, and completeness of the action plan and recommendations;
Appropriateness, relevancy and quality of exhibits;
Effective communication of key issues;
Effective leading of discussion and stimulating class interest.

Various readings from academic journals - see the course schedule. All are available free of charge via
UofH library system SCM 7397 Global Supply Chain Management website:


To access the articles listed on this webpage or other University of Houston Libraries electronic resources
a CougarNet Login is required. Please contact UH Campus IT at (713) 743-1411 or visit their website

California Management Review - CMR

European Business Forum - EBF
Harvard Business Review HBR
International Journal of Physical Distribution & Logistics Management - IJPDLM
Journal of Business Logistics - JBL
Sloan Management Review SMR

Wall Street Journal required reading for this course. Details will be presented in class.

Article Presentations:
A series of supply chain management articles will be assigned as part of the class readings. Each student will be
assigned two articles for class presentation and a written review. These presentations and written review will cover
the salient points in the articles, and will include reference to a current event (within 3 months) or another current
article (within 6 months) that is related to the core concepts of the article. The members of the class will be asked
to assess the performance of the presenters. The instructor will incorporate the class evaluations into the article
presentation grade.

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Section 19442 Summer 2 2012

Teams will consist of four students who will work together as the presenting and questioning teams for cases as
assigned. The teams may allocate the work as desired, as long as all team members agree with the allocation. The
team should let a member know if they are not performing at an appropriate level, and should contact the instructor
if problems persist. Each team member will provide the instructor with an evaluation (Peer evaluation) of their team
members performance at the end of the semester by allocating 100 total points (no self-allocation) between the
other members.

The course examination will be turned in via BB on the last scheduled class session (June 30th). The take-home will
count 20% towards your final grade.

Class Participation:
Class engagement is an important part of this class, as it is in every Bauer course. Please e-mail me prior to class if
you will be unable to attend due to business or personal reasons. A pre-authorized missed class will require a make-
up assignment. More than one missed class automatically means that the student does not qualify for a pass grade
in the class. The honor code applies in this class, as in all courses.

As previously mentioned expectations for participation and involvement are high. You should come to class
prepared to become involved in the discussion, and have read the specified material and prepared questions about
areas that were not clear to you, and offer observations about other situations/examples that may help generate class
discussion. The instructor will form a subjective impression of your performance. In addition, at the end of the
semester each class member is to provide the instructor with an evaluation of the performance of each of their
classmates using the following categories (this is separate from team peer evaluations) including commentary: 5 =
exceptional participation that really contributed to my learning in the course; 4 = many solid contributions that
helped the class to learn; 3 = solid participation that contributed to the discussion; 2 = sometimes contributed, but
not at a high enough level; and 1 = this person did not pull their weight either in terms of the number or quality of
contributions. Based on the aggregation of these reports, I will adjust the participation grade up or down.

Cell Phones and Web Surfing:

It is important to display courtesy and respect towards others during class. Please turn off all cell phones prior to the
start of class. Please do not surf the web, text message, or email during class. If you need to make or receive a call
or if you feel you must surf the web, text message, or answer emails, please excuse yourself and leave the class

Special Class Session:

APICS Houston Chapter PDM June 28, 2012 Top Management Night
Our class on June 28th will be held at the HESS Club - 5430 Westheimer near the Galleria.

Energy Prospects for America

Straight Talk from an Energy Insider

John Hofmeister
Former CEO of Shell

I will discuss details of this event and arrange for reservations during our first class session. The pre-meeting
networking begins at 5:00pm.

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IV. Grading

All assignments will be graded on a scale of 100 and based on the following:

Individual Group
Cases: 50% 20% 30%
2 Individual@10% each; 2 Group at 15% each
Article Review and Presentation 2 at 10% 20% 20%
Take Home Exam 20% 20%
Class participation/APICS assignment 10% 10% ____
Total 100% 70% 30%

I do not curve grades in graduate courses. Instead, a students grade is based on the ranking of the students final
numerical score for the course among the students classmates. Your final cumulative score will be rounded-up to
the nearest whole number (92.2 = 93) and the final grades will be based on University of Houston grading policy.

Grading Scheme:

A 93 and above - Outstanding B- 80 - 82 - Slightly less than expected

A- 90 92 - Excellent C+ 78 - 79 - High(er) pass
B+ 88 89 - Very good, better than expected C 73 - 77 - Pass
B 83 - 87 - Good, as expected C- 70 - 72 - Just enough to pass

F Below 70 - Not enough to pass I Incomplete

V. Accommodations for Students with Disabilities

Our objective is to help all students achieve their highest potential in the Bauer College of Business. If you need to
receive accommodation in the classroom, on exams or with assignments, please make arrangements with me prior to
the exam or assignment. You can also contact the Justin Dart Center for Students with Disabilities (713-743-5400)
in order to obtain assistance. Services provided by the Center for Students with Disabilities include assistance with
course accommodations, adaptive equipment, individualized exam administration, taped textbooks, wheelchair
repair, library needs, handicapped parking, as well as many other needs.

VI. Academic Integrity

All students are expected to be familiar with the University of Houston Academic Honesty policy that is published
in the undergraduate catalog. In particular, the following four principles apply to this class:

All homework assignments and exams should reflect your own effort only (except as noted above for
homework assignments where work with other students is documented). Discussion with others from
another section about graded submissions is a violation of the Academic Honesty Policy.

Passing case notes and class handouts to students who have yet to take the course, who attend a different
section, or receiving material from those who took the class in the past, is strictly prohibited.

Plagiarizing (the misrepresentation of work done by others as being ones own work) is a violation of the
Academic Honesty Policy. Remember to cite all sources of information and ideas to prevent problems.

You may not submit the same work (or substantially similar work) to meet the requirements of more than
one course without the written consent of all instructors concerned.

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Section 19442 Summer 2 2012

Plagiarism is defined as representing as ones own work the work of another without appropriately acknowledging
the source.

Fundamentally, plagiarism is a deceit, an act of intellectual dishonesty that consists of passing off anothers
words as ones own. Plagiarism may take the form of repeating anothers sentences as your own,
paraphrasing someone elses argument as your own or even presenting someone elses line of thinking in
the development of a thesis as though it were your own. In short, to plagiarize is to give the impression that
you have written or thought something that you have in fact borrowed from another. Although a writer may
use other persons words and thoughts, they must be acknowledged as such.1

Please make certain that your work clearly acknowledges that of others. Plagiarism is a serious violation of
academic honesty and may result in a failing grade and possibly more severe action. The university does not
institutionalize plagiarism by acknowledging, excusing or condoning ignorance under the rubric of unintentional

VII. Blackboard/Tentative Class Schedule

I will be using Blackboard to provide additional course-related materials, grade posting, etc. In addition, I ask that
you use Blackboard email rather than my university email for all class-related business.

Team Assignments
Session number 3 4 6 7 9
Case Presentation #1 1 7 5 3 All *
Case Presentation #2 2 8 6 4 All *
Case Questions #1 3 1 7 5
Case Questions #2 4 2 8 6
Mini Case #1 5,7 3,5 1,3 7,1
Mini Case #2 6,8 4,6 2,4 8,2
Article Review 1&2 7,8 & 1,2 5,6 & 3,4 3,4 & 7,8 1,2 & 3,4 All *

*No Assignment to turn in In class discussion

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SCM 7397 Global Supply Chain Management
Section 19442 Summer 2 2012
An outline of the semester topics, readings and case studies is presented below. Please refer to the detailed case
syllabus on Blackboard for more information regarding the case studies.

Tentative Class Schedule

SCM 7397 Summer 2 2012
Date Topic and details Assignment and/or Deliverable Due Date
1 June 5 Course objectives and general overview of the Grounding Strategy in Reality (EBF)
course. The Intimate Supply Chain (SCMR)
Teams formation. Case:
Prepare: Managing Supply Chain Complexity
Supply Chain Management: an overview in a Tea Manufacturing Company
2 June 7 Discuss: Building Deep Supplier Relationships (HBR)
Managing Supply Chain Complexity in a Tea The Hand that Feeds You (WSJ)
Manufacturing Company

3 *June 12 Strategic sourcing Manage Consolidation in the Distribution

Case #1: Channel (SMR)
Plaza, the Logistics Park of Zaragoza Strategic Sourcing: From Periphery to the Core
(HBS 609113) (HBR OnPoint Enhanced Edition)
Case #2:
International Sourcing in Athletic Footwear: Nike
and Reebok (HBS 394189)
4 June 14 Global Logistics and Risk Management Managing Risk to Avoid Supply-Chain
Case #3: Breakdown (SMR)
Renaults Logan Car (HBS GS62) Achieving Excellence in Global Sourcing
Measuring performance in supply chains
Case #4:
Metalcraft Supplier Scorecard (HBS 102047)

5 June 16 Turnit-In Submit Article Review #1

6 June 19 Measuring performance in supply chains An Examination of Reverse Logistics Practices
Case #5: (JBL)
Resina: Managing Operations in China Exploring Future Competitive Advantage
(HBS 906M48) through Sustainable Supply Chains (IJPDLM)
Crocs: Revolutionizing an Industrys Supply Chain
Model for Competitive Advantage (HBS GS57)
7 June 21 Managing Risk in Supply Chain Management E-Procurement (SMR)
Case #7: A Supply Chain View of the Resilient
Li & Fung: Growth for a Supply-Chain Specialist Enterprise (SMR)
(HBS HKU849)
Case #8:
Sport Obermeyer (HBS 9-695-022)

Handout Take-Home Exam details.

8 June 23 Turnit-In Submit Article Review #2

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Section 19442 Summer 2 2012

9 June 26 Global Supply Chain Management Simulation The Supply-Chain Management Effect (SMR)
Aligning Incentives in Supply Chains (HBR)

10 June 28 APICS Association of Operations Management Prepare report regarding APICS networking
Professional Development Meeting event.
Class will Energy Prospects for America: Straight
begin at Talk from an Energy Insider This event will be held at the HESS Club
5:00pm John Hofmeister former President Shell Oil 5430 Westheimer Road Houston, Texas
and end at Company
11 June 30 Turnit-In Submit APICS Networking event paper
Submit Take-Home Exam

SCM 7397 Global Supply Chain Operations SU2012 2 8