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MG6.01 Supply Chain Management

tag 0 Download 18 Pages / 4,418 Words tag 13-11-2020


Analyse and evaluate relevant subject knowledge, skills and abilities, in this case - supply chain management techniques, and thus develop their competencies in this area.

Section A: Integrated Supply Chain Management


  1. To demonstrate comprehension of the major supply chain management areas including foundational concepts, supply chain functions and processes, competencies etc.
  2. To model and analyse supply chain networks, components, and processes with the aid of a SCM framework.
  3. To discuss the integrated nature of modern supply chain networks.


  1. This section of the portfolio assessment consists of writing an evaluation report, using the report template given on EIT Online, to present your analysis of an organisation’s supply chain network mapping and integration.
  2. The report will consist of two parts:

Part (a) is a written discussion about the nature and degree of supply chain process integration based on your analysis of the case study.

Part (b) is creating a supply chain model to illustrate an organisation’s supply chain network. The network should be mapped using a recommended supply chain framework.

  1. Assessment Tasks- There are two assessment sub-tasksto be completed:

Task 1- Building a supply chain network model using a framework: Using the recommended supply chain framework, model an organisation’s supply chain network. In your model, you should:

  1. a) Identify and label the major components of the supply chain including:
    • internal components of the organisation
    • external components of the supply chain
    • trace the flow of materials, information, products, finance etc. in and across the supply chain
      1. It is expected that students will refer to the course readings & resources, conduct own desktop/ secondary research to identify the generic industry supply chain network structure; which will then be used for modelling organisation’s supply chain.
      2. This is an illustration task using the Generalised SCM (GSCM) framework model template given in this document and must be used.
      3. Illustrations are to be made using MS-Word or MS-Visio which are available to EIT students through IT services.
      4. Usually the illustration is a one-page document, including all labelling.

Task 2: Discuss the nature and degree of supply chain integration: Based on the GSCM developed by your group, analyse and comment on the nature and degree of integration of organisation’s supply chain processes. A comprehensive and in-depth discussion will include:

  • A concise introduction explaining the meaning of the nature and degree of integration supported with evidence from relevant course reading.
  • Identification and classification of the organisation’s supply chain processes.
  • Using examples, analysing and discussing the nature and degree of supply chain process integration within the organisation’s supply chain.

Section B: Demand Management And Planning


  1. To demonstrate understanding of demand management and planning processes.
  2. To demonstrate understanding of demand forecasting techniques and usage.
  3. To develop and evaluate demand forecasting models


  1. The report will consist of two parts:
    1. Part (a) is a written report evaluating the demand forecasting models in predicting future demand, based on a given dataset.
    2. Part (b) requires applying demand forecasting techniques to develop multiple demand forecasting models to predict the future demand for organisation’s product/ services. Obviously, Part (b) needs to be completed before Part (a) can be completed.

  2. There are the sub-tasksto be completed:
  1. Three-period weighted moving average. Assume most recent period weight to be 0.6, the next period weight is 0.3 and last period weight is 0.1 to begin with. You may then change the weights to create the best possible forecast.
  2. Exponential smoothing method. Smoothing coefficient α = 0.7 to begin with.
  3. Trend projection model
  4. Compute the forecasting error for each model developed: using (a) Mean absolute deviation (MAD); (b) Mean squared Error (MSE)
  5. For each model, develop seasonal indices.
  6. Graphically represent all final demand forecasting models.
  7. Interpret the results of the demand forecasting models and compare the models based on their ability to accurately predict demand.
  8. Evaluate the demand forecasting models and processes at the organisation.

Section C: Production Planning And Management


  1. To develop and evaluate aggregate planning scenarios to meet forecasted demand
    • Changing inventory levels.
    • Varying workforce size by hiring and layoffs.
    • Varying production rates through overtime/ idle time.
    • Sub-contracting.
  2. Develop a Material Requirements Plan (MRP) based on the MPS.
    • Develop gross requirements plan
    • Develop net material requirements plan.
  3. Demonstrate comprehension of inventory management and inventory modelling. Develop and evaluate inventory management plans based on the MRP requirements.
    • Develop economic order quantity model for inventory modelling.
    • Develop production order quantity model for inventory modelling.
    • Develop quantity discount model using EOQ for inventory modelling.Required:

There are 3 assessment sub-tasks to be completed in this section:

Task 1: Aggregate Planning

Develop and evaluate three aggregate production plan options for a given situation.


Create TWO more plans (Plan B and Plan C) and compute their total cost. Compare these THREE plans based on total cost, and some related implementation issues.

Task 2: Material Requirement Planning

Develop Material Requirements Plan (MRP) for a given product for one production cycle. The MRP must include:

  1. Gross requirements plan.
  2. Net requirements plan.

Background: Alex Last, the production manager of a Health Equipment Manufacturer, needs to schedule an order for 60 Steppers, which are to be shipped in week 9. Details about the steppers are given in Table 1, where the numbers in the brackets indicate quantity required for each parent (i.e. the product at upper level). Assume lot-for-lot ordering model.

Table 1



Lead time

On-hand inventory

Components required





A (1), B (3), C (2)





D (1), F (2)





E (1), F (3)





D (2), F (3)

















  1. Develop a product structure for the Stepper.
  2. Develop a net material requirements plan for item F.

Task 3: Inventroy Control Techniques.


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