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Part I Introduction to Supply Chain and Operations Management |
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1 Basics of Supply Chain and Operations Management |
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3 | (14) |
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1.1 Introductory Case Study: The Magic Supply Chain and the Best Operations Manager |
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4 | (1) |
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1.2 Basic Definitions and Decisions |
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5 | (6) |
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1.2.1 The Transformation Process, Value Creation, and Operations Function |
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5 | (2) |
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1.2.2 Supply Chain Management |
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7 | (2) |
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1.2.3 Decisions in Supply Chain and Operations Management |
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9 | (2) |
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1.3 Careers and Future Challenges in Supply Chain and Operations Management |
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11 | (4) |
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15 | (1) |
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16 | (1) |
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2 Examples from Different Industries, Services, and Continents |
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17 | (28) |
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2.1 Examples of Operations and Supply Chains in Manufacturing |
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17 | (7) |
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2.1.1 Nike: Sourcing Strategy in the Integrated Supply Chain |
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17 | (2) |
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2.1.2 Dangote Cement: Establishing Sophisticated Supply Chain Management in Africa |
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19 | (3) |
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2.1.3 Toyota: Supply Chain Disruption Management |
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22 | (1) |
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23 | (1) |
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2.2 Examples of Operations and Supply Chains in Services |
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24 | (9) |
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2.2.1 SCOM in Restaurants: Case Study Starbucks Corporation |
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24 | (2) |
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2.2.2 Operations Management at Airport Madrid/Barajas |
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26 | (2) |
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2.2.3 Time-Critical Supply Chains: Disaster Management and Humanitarian Logistics |
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28 | (3) |
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2.2.4 Operations Issues in Car Sharing |
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31 | (1) |
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2.2.5 REWE: Expanding the Logistics Network |
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32 | (1) |
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2.3 Examples of e-Operations and Supply Chains |
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33 | (5) |
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33 | (4) |
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2.3.2 Homeplus: The Store Comes to Your Home |
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37 | (1) |
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2.4 Examples of Digital Supply Chains and Smart Operations |
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38 | (3) |
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38 | (1) |
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2.4.2 Adidas "Speedfactory": 3D Printing and Industry 4.0 in Supply Chain and Operations Management |
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39 | (1) |
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2.4.3 Predictive Analytics and Machine Learning: RueLaLa and Pharmapacks |
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40 | (1) |
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41 | (4) |
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3 Processes, Systems, and Models |
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45 | (36) |
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3.1 Introductory Case-Study: AirSupply |
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45 | (4) |
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46 | (1) |
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3.1.2 Vendor-Managed Inventory |
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47 | (1) |
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48 | (1) |
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3.2 Business Process Management |
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49 | (4) |
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3.2.1 Process Optimization and Re-engineering |
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49 | (2) |
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3.2.2 Business Process Modelling |
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51 | (2) |
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3.3 Management Information Systems |
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53 | (10) |
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3.3.1 Role of Information Technology in Supply Chain and Operations Management |
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53 | (1) |
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3.3.2 Types of Management Information Systems |
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53 | (1) |
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3.3.3 Management Information Systems and Organization |
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54 | (2) |
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56 | (1) |
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57 | (1) |
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58 | (2) |
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3.3.7 Business Analytics and E-Business |
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60 | (3) |
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3.4 Problem Solving Methods and Research Methodologies |
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63 | (11) |
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3.4.1 Problems, Systems, and Decision-Making |
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63 | (3) |
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3.4.2 Models and Modeling |
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66 | (1) |
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3.4.3 Model-Based Decision Making |
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67 | (3) |
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3.4.4 Quantitative Models and Operations Research |
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70 | (1) |
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3.4.5 Integrated Decision Making Support |
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70 | (2) |
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3.4.6 Research Methodologies |
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72 | (2) |
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3.5 Integration of Business Analytics, Simulation, and Optimization |
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74 | (2) |
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76 | (1) |
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77 | (4) |
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Part II Designing Operations and Supply Network: Strategic Perspective |
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4 Operations and Supply Chain Strategy |
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81 | (30) |
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4.1 Introductory Case-Study "Quick and Affordable": Zara, UNIQLO & Primark |
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81 | (4) |
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4.1.1 Zara's Three Success Factors: Speed, Speed, and Speed |
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81 | (2) |
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4.1.2 UNIQLO: Basic, Casual Wear at Top Quality |
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83 | (1) |
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4.1.3 Primark: It's All About Money |
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84 | (1) |
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4.2 Operations and Supply Chain Strategies |
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85 | (6) |
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4.2.1 Value Added and Costs |
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85 | (1) |
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4.2.2 Operations Strategies |
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86 | (1) |
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4.2.3 Supply Chain Strategies and "Strategic Fit" |
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87 | (4) |
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4.3 Supply Chain Coordination |
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91 | (9) |
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91 | (4) |
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4.3.2 Vendor-Managed Inventory |
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95 | (3) |
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4.3.3 Collaborative Planning, Forecasting and Replenishment |
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98 | (1) |
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4.3.4 Supply Chain Contracting |
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99 | (1) |
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4.4 Supply Chain Resilience and Sustainability |
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100 | (7) |
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4.4.1 Supply Chain Sustainability: Examples of Coca-Cola and Mercadona |
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101 | (3) |
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4.4.2 Supply Chain Resilience and Ripple Effect |
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104 | (3) |
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107 | (1) |
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108 | (3) |
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111 | (24) |
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5.1 Introductory Case Study "New Logistics Concept (NLK: Das Neue Logistik Konzept) at Volkswagen" |
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111 | (3) |
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5.2 Sourcing Process and Principles |
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114 | (6) |
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5.2.1 Procurement, Purchasing and Sourcing |
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114 | (1) |
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115 | (2) |
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5.2.3 Make-or-Buy and Outsourcing |
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117 | (3) |
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5.2.4 Organization of Sourcing Processes |
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120 | (1) |
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120 | (6) |
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5.3.1 Single vs. Dual and Multiple Sourcing |
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120 | (2) |
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5.3.2 Local vs. Global Sourcing |
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122 | (3) |
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125 | (1) |
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5.4 Supplier Relationship Management |
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126 | (7) |
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5.4.1 Strategic Supplier Analysis |
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127 | (2) |
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129 | (2) |
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5.4.3 Supplier Integration and Development |
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131 | (2) |
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133 | (1) |
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133 | (2) |
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135 | (20) |
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6.1 Introductory Case-Study DELL vs. Lenovo |
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135 | (5) |
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6.2 Postponement and Modularization |
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140 | (4) |
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6.2.1 Problem: Mass Production or Product Customization |
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140 | (1) |
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6.2.2 Principles: Postponement and Modularization |
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140 | (1) |
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6.2.3 Examples of Postponement Strategies |
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141 | (3) |
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6.3 Push--Pull Views and Order Penetration Point |
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144 | (1) |
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6.4 Selection of a Production Strategy |
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145 | (8) |
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6.4.1 Types of Production Strategies |
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145 | (5) |
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6.4.2 Method: Lost-Sales Analysis |
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150 | (3) |
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153 | (1) |
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153 | (2) |
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7 Facility Location Planning and Network Design |
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155 | (48) |
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7.1 Introductory Case Study Power Pong Sports, China |
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155 | (3) |
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7.2 Supply Chain Design Framework |
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158 | (1) |
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7.3 Global Supply Chain Design |
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159 | (21) |
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7.3.1 Warehouse Location Problem and Its Formalization |
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160 | (3) |
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7.3.2 A Spreadsheet Approach to the WLP |
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163 | (5) |
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7.3.3 Branch-&-Bound: How the Solver Add-In Works |
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168 | (5) |
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173 | (7) |
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7.4 Regional Facility Location |
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180 | (9) |
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7.4.1 Management Problem Description |
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181 | (1) |
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7.4.2 A Mathematical Model of the Decision Situation |
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181 | (1) |
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7.4.3 Solving the Mathematical Model: Centre-of-Gravity Approach |
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182 | (7) |
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7.5 Factor-Ranking Analysis |
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189 | (9) |
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7.5.1 Case-Study OTLG Germany |
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189 | (1) |
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7.5.2 Factor-Rating Method |
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189 | (5) |
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7.5.3 Utility Value Analysis |
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194 | (4) |
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7.6 Combining Optimization and Simulation in Supply Chain Design |
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198 | (2) |
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200 | (1) |
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201 | (2) |
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8 Distribution and Transportation Network Design |
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203 | (44) |
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8.1 Introductory Case Study: Bavarian Wood |
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203 | (3) |
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8.2 Generic Transport Network Structures |
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206 | (2) |
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8.3 Realizing Economies of Scale in Transportation |
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208 | (10) |
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8.3.1 Consolidation of Shipments |
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208 | (2) |
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210 | (1) |
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211 | (2) |
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213 | (5) |
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8.4 Trade-Off-Based Transportation Network Design |
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218 | (3) |
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8.5 Capacity Allocation in a Many-to-Many Network |
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221 | (13) |
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8.5.1 The Transportation Problem |
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222 | (1) |
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223 | (1) |
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8.5.3 Finding the First Feasible Model Solution |
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224 | (4) |
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228 | (2) |
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8.5.5 Solution Improvement |
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230 | (4) |
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8.6 Distribution Network Design |
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234 | (9) |
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8.6.1 Case Study: ALDI vs. Homeplus |
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234 | (2) |
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8.6.2 Types of Distribution Networks |
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236 | (2) |
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8.6.3 Case Study: Seven-Eleven Japan |
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238 | (2) |
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8.6.4 Transportation Modes |
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240 | (3) |
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243 | (1) |
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244 | (3) |
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9 Factory Planning and Process Design |
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247 | (46) |
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9.1 Introductory Case-Study "Factory Planning at Tesla" |
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247 | (2) |
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249 | (5) |
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9.2.1 Role of Factory Planning in SCOM |
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249 | (1) |
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9.2.2 Processes of Factory Planning |
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250 | (4) |
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254 | (18) |
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256 | (4) |
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260 | (4) |
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9.3.3 Bottleneck Analysis/Theory of Constraints |
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264 | (1) |
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265 | (1) |
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9.3.5 Break-Even Analysis |
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266 | (3) |
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269 | (1) |
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9.3.7 Simulation: Case Study AnyLogic |
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270 | (2) |
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9.4 Process Flow Structures |
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272 | (7) |
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272 | (1) |
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273 | (1) |
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273 | (5) |
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278 | (1) |
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9.4.5 Product-Process Matrix |
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278 | (1) |
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9.5 Lean Production Systems |
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279 | (9) |
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279 | (2) |
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9.5.2 Lean Production Principles |
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281 | (5) |
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286 | (2) |
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9.6 Key Points and Discussion Questions |
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288 | (2) |
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290 | (3) |
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293 | (26) |
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10.1 Introductory Case-Study "OTLG Ludwigsfelde" |
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293 | (1) |
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10.2 Layout Planning in Manufacturing |
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294 | (11) |
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10.2.1 Fixed Position Layout |
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295 | (1) |
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10.2.2 Process Flow Layout |
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296 | (3) |
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10.2.3 Product Flow Layout |
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299 | (3) |
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302 | (3) |
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10.3 Layout Planning in Warehouses |
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305 | (3) |
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305 | (1) |
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306 | (1) |
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10.3.3 Put-Away and Order Pick-Up |
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306 | (1) |
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307 | (1) |
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10.4 Methods of Layout Planning |
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308 | (5) |
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308 | (2) |
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10.4.2 Quadratic Assignment Problem |
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310 | (2) |
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10.4.3 Simulation: Modeling Operations at Pharmaceutical Distribution Warehouses with AnyLogic |
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312 | (1) |
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313 | (1) |
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314 | (1) |
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315 | (4) |
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Part III Matching Demand and Supply: Tactical and Operative Planning |
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319 | (16) |
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11.1 Introductory Case Study |
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319 | (2) |
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11.2 Forecasting Process and Methods |
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321 | (5) |
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11.2.1 The Forecasting Process and Time Horizons |
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322 | (1) |
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11.2.2 Forecasting Methods |
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323 | (2) |
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11.2.3 Forecasting Quality |
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325 | (1) |
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326 | (6) |
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326 | (2) |
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328 | (1) |
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11.3.3 Simple Exponential Smoothing |
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329 | (2) |
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11.3.4 Double Exponential Smoothing |
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331 | (1) |
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11.4 Key Points and Outlook |
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332 | (1) |
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333 | (2) |
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12 Production and Material Requirements Planning |
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335 | (26) |
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12.1 Introductory Case-Study SIBUR: Integrated Operations and Supply Chain Planning |
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335 | (3) |
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12.2 Planning Horizons/MRP-II |
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338 | (1) |
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12.3 Sales and Operations Planning |
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339 | (6) |
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12.3.1 Role of Sales and Operations Planning |
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339 | (2) |
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12.3.2 Options for Aggregate Planning |
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341 | (1) |
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12.3.3 Methods for Aggregate Planning |
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342 | (3) |
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12.4 Sales and Production Planning with Linear Programing |
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345 | (4) |
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12.4.1 Problem Description |
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345 | (1) |
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12.4.2 Method: Linear Programming |
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346 | (2) |
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12.4.3 Graphical Solution |
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348 | (1) |
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12.5 Master Production Schedule and Rolling Planning |
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349 | (2) |
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12.5.1 Master Production Schedule |
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349 | (2) |
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351 | (1) |
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12.6 Material Requirements Planning |
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351 | (7) |
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353 | (1) |
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354 | (4) |
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358 | (2) |
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360 | (1) |
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361 | (46) |
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13.1 Introductory Case-Study: Amazon, Volkswagen, and DELL |
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361 | (2) |
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13.2 Role, Functions, and Types of Inventory |
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363 | (2) |
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365 | (5) |
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365 | (2) |
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367 | (3) |
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13.4 Deterministic Models |
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370 | (8) |
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371 | (3) |
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13.4.2 EOQ Model with Discounts |
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374 | (2) |
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376 | (2) |
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378 | (1) |
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378 | (10) |
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13.5.1 Service Level and Safety Stock |
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379 | (5) |
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13.5.2 Single Period Systems ("Newsvendor Problem") |
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384 | (2) |
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13.5.3 Safety Stock and Transportation Strategy: Case DailyMaersk |
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386 | (2) |
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13.6 Inventory Control Policies |
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388 | (5) |
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389 | (4) |
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393 | (1) |
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13.7 Dynamic Lot-Sizing Models |
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393 | (6) |
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13.7.1 Least Unit Cost Heuristic |
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394 | (2) |
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13.7.2 Silver-Meal Heuristic |
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396 | (1) |
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13.7.3 Wagner--Whitin Model |
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397 | (2) |
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13.8 Aggregating Inventory |
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399 | (3) |
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402 | (1) |
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13.10 Key Points and Outlook |
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403 | (2) |
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405 | (2) |
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14 Routing and Scheduling |
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407 | (48) |
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14.1 Introductory Case Study RED SEA BUS TRAVEL |
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408 | (1) |
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14.2 Shortest Paths in a Network |
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409 | (6) |
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14.2.1 Outline of the Shortest Path Problem (SPP) in a Network |
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409 | (2) |
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14.2.2 Mathematical Graphs |
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411 | (1) |
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14.2.3 The SPP as Graph-Based Optimization Model |
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411 | (1) |
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14.2.4 Dijkstra's Algorithm for the Identification of a Shortest S-T-Path |
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412 | (3) |
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14.3 Round Trip Planning/Travelling Salesman Problem |
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415 | (12) |
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14.3.1 Travelling Salesman Problem |
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416 | (2) |
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14.3.2 A Mixed-Integer Linear Program for TSP-Modelling |
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418 | (3) |
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14.3.3 Heuristic Search for High Quality Round Trips |
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421 | (6) |
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427 | (12) |
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14.4.1 Case Study ORION: Vehicle Routing at UPS |
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427 | (2) |
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14.4.2 Decision Situation Outline |
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429 | (1) |
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14.4.3 Current Approach for the Route Compilation |
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430 | (2) |
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14.4.4 Capacitated Vehicle Routing Problem |
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432 | (3) |
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14.4.5 The Sweep Algorithm |
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435 | (4) |
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439 | (9) |
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14.5.1 The Problem of Scheduling a Machine |
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439 | (2) |
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14.5.2 Priority Rule-Based Scheduling |
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441 | (3) |
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14.5.3 Scheduling Algorithm of Moore |
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444 | (1) |
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14.5.4 Scheduling Two Machines in a Flow Shop |
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445 | (2) |
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14.5.5 Further Challenges in Machine Scheduling |
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447 | (1) |
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448 | (2) |
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450 | (5) |
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Part IV Advanced Topics in Supply Chain and Operations Management |
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15 Supply Chain Risk Management and Resilience |
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455 | (26) |
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15.1 Introductory Case-Study: Capacity Disruption at BASF |
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455 | (1) |
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15.2 Uncertainty and Risks |
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456 | (2) |
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15.3 Risk Management in the Supply Chain |
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458 | (4) |
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15.3.1 Risk Classification |
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458 | (2) |
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15.3.2 General Framework of Risk Management in the Supply Chain |
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460 | (2) |
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15.4 Operational and Disruption Risks |
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462 | (2) |
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15.5 Ripple Effect in the Supply Chain |
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464 | (2) |
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15.6 Supply Chain Resilience |
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466 | (7) |
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15.6.1 Resilience Framework |
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466 | (3) |
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15.6.2 Costs of Resilience |
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469 | (4) |
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15.7 KPI for Supply Chain Risk |
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473 | (2) |
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473 | (1) |
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474 | (1) |
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15.8 Key Points and Discussion Questions |
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475 | (1) |
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476 | (5) |
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16 Digital Supply Chain, Smart Operations and Industry 4.0 |
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481 | (46) |
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16.1 Introductory Case-Study: SupplyOn |
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481 | (2) |
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16.2 SCOM Excellence and Digitalization |
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483 | (4) |
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16.2.1 Operational Excellence |
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483 | (1) |
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16.2.2 From Operational Excellence to SCOM Excellence |
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484 | (1) |
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16.2.3 Digitalization as New Driver in SCOM Excellence |
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484 | (3) |
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16.3 Development of Technology in SCOM |
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487 | (6) |
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16.3.1 Three Industrial Revolutions |
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487 | (1) |
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16.3.2 Fourth Industrial Revolution: Industry 4.0 |
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488 | (2) |
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16.3.3 Internet of Things |
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490 | (1) |
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16.3.4 Cyber Physical Systems |
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490 | (1) |
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16.3.5 Smart, Connected Products |
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491 | (1) |
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16.3.6 Smart Supply Chains and Smart Value Adding Networks |
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492 | (1) |
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16.4 Digital SCOM Framework |
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493 | (1) |
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16.5 Digital Technology in the "Plan" Processes |
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494 | (3) |
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16.5.1 Big Data Analytics |
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494 | (1) |
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495 | (2) |
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16.6 Digital Technology in "Source" Processes |
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497 | (5) |
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497 | (1) |
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16.6.2 Supplier Collaboration Portals |
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498 | (1) |
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16.6.3 Digital Trends for Excellence in Sourcing |
|
|
499 | (1) |
|
|
499 | (2) |
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16.6.5 Robotic Process Automation and Artificial Intelligence in Procurement |
|
|
501 | (1) |
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16.7 Digital Technology in "Make" Processes |
|
|
502 | (5) |
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16.7.1 3D Printing and Additive Manufacturing |
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|
502 | (2) |
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16.7.2 Virtual Reality and Augmented Reality |
|
|
504 | (1) |
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|
505 | (2) |
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16.8 Digital Technology in the "Delivery" Processes |
|
|
507 | (4) |
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16.8.1 Drones or Unmanned Aerial Vehicles |
|
|
508 | (1) |
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16.8.2 Smart Driverless Transportation Systems |
|
|
508 | (1) |
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16.8.3 Smart Forklifts, Pallet Movers, and Cranes |
|
|
509 | (2) |
|
16.9 Qualitative and Quantitative Potential of Digital Technology in SCOM |
|
|
511 | (5) |
|
16.9.1 Qualitative Improvements of Digital SCOM |
|
|
512 | (1) |
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16.9.2 Quantitative Potential Assessments of Digital SCOM |
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|
512 | (2) |
|
16.9.3 Possible Obstacles and Limitations of Digital SCOM |
|
|
514 | (2) |
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16.10 Key Points and Discussion Questions |
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|
516 | (2) |
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16.11 Case-Study "Smart Usage of Big Data Along the Supply Chain: Big Data Analytics Between Companies, Value-Added and the Impact of Risk and Complexity Management" |
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|
518 | (4) |
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|
522 | (5) |
|
17 Pricing and Revenue-Oriented Capacity Allocation |
|
|
527 | (40) |
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17.1 Case Study: FRISIA COASTAL SHIPPING: The Story of Jordis and Tjark |
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|
529 | (3) |
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17.2 Non-competitive Pricing |
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|
532 | (4) |
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17.3 Pricing with Scarce Capacities |
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|
536 | (6) |
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17.4 Setting Optimal Prices in Resource Networks |
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|
542 | (4) |
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17.5 Dynamic Pricing: Pricing in Reaction to Observed Market Developments |
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|
546 | (19) |
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17.5.1 Business Extension by Coastal Tours |
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|
547 | (5) |
|
17.5.2 Decision Situation Modelling |
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|
552 | (2) |
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17.5.3 Pricing and Capacity Distribution over the Sales Period |
|
|
554 | (10) |
|
17.5.4 Summary of Dynamic Pricing |
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|
564 | (1) |
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17.6 Pricing Lessons Learned and Open Issues |
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|
565 | (1) |
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|
566 | (1) |
Appendix Case-Study "Re-designing the Material Flow in a Global Manufacturing Network" |
|
567 | (6) |
Index |
|
573 | |