OM4411 Inventory and Supply Chain Management

This course provides a rigorous examination of Inventory and Supply Chain Management (ISCM) with particular emphasis on inventory theory and inventory decision models as central mechanisms for coordinating the flow of materials, information, and finances across networks of suppliers, manufacturers, distributors, and customers. The course focuses on balancing inventory investment and service levels to ensure materiel is delivered to the right place, at the right time, and within budget—an issue of particular importance in military and defense contexts.

A key distinction between logistics and ISCM is their scope. Logistics traditionally focuses on the movement and storage of materiel within and downstream from the factory, while ISCM takes a broader, strategic perspective that integrates upstream and downstream actors and emphasizes information flows across the entire network. This broader perspective has elevated ISCM to a strategic concern for senior leaders due to its direct impact on readiness, resilience, and resource allocation.

At its core, ISCM seeks to align supply and demand through analytical inventory models, supported by decisions on warehouse location and transportation. This course emphasizes the development, analysis, and application of inventory policies—including prioritization of stock-keeping units, demand forecasting, tradeoffs between cost and service, and adaptation of commercial inventory models to military supply chains.

Students will analyze real-world and defense-focused case studies to develop a disciplined, model-based understanding of ISCM and its role in supporting mission effectiveness and sustainment.

Prerequisite

The course requires prior understanding of basic statistics and process analysis.

Lecture Hours

4

Course Learning Outcomes

  • Develop and implement inventory policies for independent demand items, including prioritization of stock-keeping units (SKUs) and strategies for single-period and multi-period demands.
  • Identify and analyze cost-saving opportunities across various supply chain structures, such as vendor-managed inventories (VMI), inventory pooling, postponement, and cross-docking.
  • Optimize resource-sharing strategies in supply chains, addressing scenarios with equal and unequal value items.
  • Evaluate and apply supply chain information systems to enhance efficiency, including the use of Automatic Identification Technologies (AIT) for supply chain management and life-cycle asset tracking.
  • Design and evaluate warehouse location and distribution strategies to optimize costs, service levels, and supply chain efficiency, considering factors such as transportation, and demand patterns.