BUSMBA 702 Managing Capacity and Inventory - Course Outlines

Course Prescription

Develops effective strategies for determining and allocating capacity and inventories to match supply and demand consistent with business strategy, cost factors, and uncertainty. Considers both manufacturing and services utilising perspectives from operations, accounting, and finance.

Course Overview

To enable the effective creation and distribution of products and services, an important function of management is to establish and implement policy to determine the nature, amount, and timing of physical resources (e.g., labour, materials, equipment, capital, information, and technology).

The course shows how these capacity and inventory decisions relate to performance measures, constraints and uncertainty in the internal and external environment. Students will discover how trade-offs should be made and how they relate to an organisation’s strategy and competitive position. They will become familiar with using key concepts, models, and tools to formulate and justify recommendations.

Course Requirements

No pre-requisites or restrictions

Learning Outcomes

By the end of this course, students will be able to:

Explain and illustrate the key concepts of managing capacity and inventory and justify how operations and supply chain management can be used to improve the competitive position of both manufacturing and service organisations. (Capability 1 and 2)
Develop, design and justify effective capacity and replenishment models, technologies, and strategies (e.g., to reduce working capital requirements and/or improve customer service) appropriate to business strategies, cost considerations, and uncertainty (Capability 1 and 3)
Articulate and apply important linkages between the management of inventory and capacity with other areas of the firm: in particular human resources, marketing, and finance. (Capability 1 and 3)

Assessments

Assessment Type	Percentage	Classification
Assignments	30%	Individual Coursework
Group Simulation	30%	Group Coursework
Test	40%	Individual Test
3 types	100%

Assessment Type	Learning Outcome Addressed
	1	2	3
Assignments
Group Simulation
Test

Workload Expectations

In addition to attending classes, students should be prepared to spend an average of 55 hours outside of class on activities related to this course, approximately evenly split between preparatory reading, assignments, and reflection/self-study (standard workload for courses is 10 hours per point). These activities include carrying out the required readings and assignments, viewing video material, and preparing for the simulations and the test . Over the first half of the quarter, a total of 20 hours are delivered in class in weekend block format on Friday afternoon and evening and all day Saturday.

Delivery Mode

Campus Experience

Attendance is expected at scheduled activities including the classes and the simulation (the latter can be done remotely if necessary). Lectures (excluding case study discussion) will be available as recordings. Other learning activities including tutorial material will be available as recordings.
Attendance on campus is required for the test. The activities for the course are scheduled as a 4 hour blocks.

Learning Resources

An online coursepack is available at Harvard Business School Publishing, which includes 1 case study and 2 introductory readings (Shapiro (2013), and Hammond (2013)).

Cases, articles, and chapters listed in this document provide fundamentals, applications, illustrations, and extensions. The case study questions (see CANVAS) should be contemplated before the appropriate class. I recommend that, for each chapter and journal article, you record (e.g., on a single sheet of paper) the key issues, features (positive and negative), and perhaps a question you would like answered in class.

The following text is strictly optional: Cachon, G., and Terwiesch, C. (2019) Matching Supply with Demand: An Introduction to Operations Management (4e). McGraw-Hill Education: New York (ISBN 978-1-260-08461-0). Digital copies are available for purchase or rent at amazon.com, or for purchase for NZ$85.20 from https://www.mheducation.com.au/ise-ebook-online-access-for-matching-supply-with-demand-an-introduction-to-operations-management-9781260288872-aus. Please bear in mind if intending to buy the on-line text that, other than calculators, electronic devices and watches of any kind are not permitted in tests. Paperback copies are available for around NZ$124 with free shipping from https://www.bookdepository.com/ISE-Matching-Supply-with-Demand-Introduction-Operations-Management-Gerard-Cachon/9781260084610. There are also copies in the General and Engineering Libraries as well as a short loan (3 day) copy in the Kate Edgar Information Commons. I would only recommend purchasing the book if you would like a good comprehensive guide to Operations Management beyond the course material (which focuses only on several aspects). Note that Canvas readings include a digitised chapter (Chapter 9) from this text.

As a reference source you may like to refer to the APICS Operations Management Body of Knowledge (free download at www.apics.org/ombok) or the glossary at http://www.lindo.com/library/glossary.pdf. For some good discussion on current topics in operations management take a look at www.operationsroom.wordpress.com and http://www.oprules.com/ . There is a list of some good Operations Management blogs at https://www.poms.org/om_blogs/.

Information on assignments, copies of lecture slides, case studies, sample questions, worked examples, and course readings will be distributed electronically on CANVAS.

Cases and Reading List:

Buell, R. (2017). Breakfast at the Paramount. Boston, MA, Harvard Business Publishing.

Hammond, J. H. (2013). Managing Inventory. Boston, MA, Harvard Business Publishing.

Kumar, S. and S. Wood (2009). Managing a Short Product Life Cycle at Littlefield Labs. Stanford, Stanford Graduate School of Business.

Laseter, T. M. (2009). "An Essential Step for Corporate Strategy." strategy+business 57.

Mabin, V. J. (1994). "Goulds Fine Foods."

Robb, D. J. (2019). Setting the Reorder Point using Business Intelligence.

Shapiro, R. (2013). Process Analysis. Boston, MA, Harvard Business Publishing.

Student Feedback

At the end of every semester students will be invited to give feedback on the course and teaching through a tool called SET or Qualtrics. The lecturers and course co-ordinators will consider all feedback and respond with summaries and actions.

Your feedback helps teachers to improve the course and its delivery for future students.

Class Representatives in each class can take feedback to the department and faculty staff-student consultative committees.

This is the second offering of the course. As a result of the feedback from the first offering (Q1, 2020), I have reduced the course content/reading by 2 cases, and put the 2-hour simulation outside of class, and the test inside the final session (rather than in Week 8).

I have slightly reduced the amount of technical material and slightly increased the strategic material (on capacity strategy (e.g., leading, lagging, etc.) and inventory strategy.

Digital Resources

Course materials are made available in a learning and collaboration tool called Canvas which also includes reading lists and lecture recordings (where available).

Please remember that the recording of any class on a personal device requires the permission of the instructor.

Academic Integrity

The University of Auckland will not tolerate cheating, or assisting others to cheat, and views cheating in coursework as a serious academic offence. The work that a student submits for grading must be the student's own work, reflecting their learning. Where work from other sources is used, it must be properly acknowledged and referenced. This requirement also applies to sources on the internet. A student's assessed work may be reviewed against online source material using computerised detection mechanisms.

Inclusive Learning

All students are asked to discuss any impairment related requirements privately, face to face and/or in written form with the course coordinator, lecturer or tutor.

Student Disability Services also provides support for students with a wide range of impairments, both visible and invisible, to succeed and excel at the University. For more information and contact details, please visit the Student Disability Services’ website http://disability.auckland.ac.nz

Special Circumstances

If your ability to complete assessed coursework is affected by illness or other personal circumstances outside of your control, contact a member of teaching staff as soon as possible before the assessment is due.

If your personal circumstances significantly affect your performance, or preparation, for an exam or eligible written test, refer to the University’s aegrotat or compassionate consideration page https://www.auckland.ac.nz/en/students/academic-information/exams-and-final-results/during-exams/aegrotat-and-compassionate-consideration.html.

This should be done as soon as possible and no later than seven days after the affected test or exam date.

Learning Continuity

In the event of an unexpected disruption we undertake to maintain the continuity and standard of teaching and learning in all your courses throughout the year. If there are unexpected disruptions the University has contingency plans to ensure that access to your course continues and your assessment is fair, and not compromised. Some adjustments may need to be made in emergencies. You will be kept fully informed by your course co-ordinator, and if disruption occurs you should refer to the University Website for information about how to proceed.

Student Charter and Responsibilities

The Student Charter assumes and acknowledges that students are active participants in the learning process and that they have responsibilities to the institution and the international community of scholars. The University expects that students will act at all times in a way that demonstrates respect for the rights of other students and staff so that the learning environment is both safe and productive. For further information visit Student Charter https://www.auckland.ac.nz/en/students/forms-policies-and-guidelines/student-policies-and-guidelines/student-charter.html.

Disclaimer

Elements of this outline may be subject to change. The latest information about the course will be available for enrolled students in Canvas.

In this course you may be asked to submit your coursework assessments digitally. The University reserves the right to conduct scheduled tests and examinations for this course online or through the use of computers or other electronic devices. Where tests or examinations are conducted online remote invigilation arrangements may be used. The final decision on the completion mode for a test or examination, and remote invigilation arrangements where applicable, will be advised to students at least 10 days prior to the scheduled date of the assessment, or in the case of an examination when the examination timetable is published.

Capability 1:	Disciplinary Knowledge and Practice
Capability 2:	Critical Thinking
Capability 3:	Solution Seeking

BUSMBA 702 : Managing Capacity and Inventory

Business and Economics

2021 Quarter One (1212) (7.5 POINTS)