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Dr. Hokey Min, Director of The Center for World Wide Supply Chain Management Shelby Campus - Burhans LL23, (502) 852-2818 Fax: (502) 852-2842 Email: h0min001@gwise.louisville.edu The Center for World Wide Supply Chain Management INTRODUCTION The University of Louisville created The Center for World Wide Supply Chain Management (CWWSCM) to serve as the organizational entity required to bring together the strong individual, but currently fragmented, university resources that have been engaged in conducting research, teaching and solving problems relating to supply chain management. Given the faculty, staff, students, degree programs, and facilities extant, the focus that can be provided by this institute can truly lead to research and problem solving excellence in supply chain management. WHAT IS SUPPLY CHAIN MANAGEMENT? According to The International Center for Competitive Excellence, supply chain management is defined as the integration of business processes from end user through original suppliers that provide products, services and information that add value for customers and other stakeholders. BACKGROUND In the report "Economic Development Strategy for the Greater Louisville Region," prepared for the Louisville Area Chamber of Commerce and the Greater Louisville Economic Development Partnership, logistics and distribution were cited as key factors in the economic development of the region. As a result, the University of Louisville’s Challenge for Excellence has embraced logistics and distribution as an area of strength. The wisdom of these actions is supported in a recent report by The Logistics Institute at the Georgia Institute of Technology which states: Logistics represents a significant and growing segment of the United States’ economy, accounting for more than $1 trillion annually. It also plays a critical role in international trade, which is expected to more than quadruple over the next 15 years. Companies increasingly view logistics as a crucial element in their corporate strategy. If modern enterprises are to meet customer demands for responsiveness, customization, quality, and value, they must effectively and efficiently link their entire global supply chain. ORGANIZATION, RESOURCES AND OBJECTIVES OF THE INSTITUTE MISSION STATEMENT The mission of the Center for World Wide Supply Chain Management (CWWSCM) is to provide state-of-the-art education, research and development in the field of Supply Chain Management at the University of Louisville. The goals of CWWSCM are: To sustain a high-quality research environment by facilitating interdisciplinary and application oriented research that will benefit the Louisville academic and business community. To take a leadership role in building the close-knit industry network in the Kentuckiana area by promoting local roundtable meetings. To identify outreach and training needs of the local governments, port authorities, and logistics companies in the city of Louisville, and the states of Kentucky and Indiana. To offer innovative and viable solutions to a variety of supply chain problems encountering the regional business community. To develop cutting-edge instructional programs and curriculums (e.g., interdisciplinary courses, executive development seminars, distance learning) for regional business employees seeking career-long supply chain education and training. To attract extramural funding to support supply chain related research activities of the College of Business and Public Administration. To take the initiatives in global academia/industry partnerships and cross-industry cooperation in response to the current industry trend. To profile the best industry practices that will make regional businesses more competitive in the global marketplace. Figure 1 is a conceptual map showing the interaction of three key areas of CWWSCM. Focus Areas E-Commerce Synchronized Supply Chain Management Health Care Logistics Quick-Response Logistics Reverse Logistics Global Supply Chain Management Warehousing Management The Institute meets two primary objectives of the Challenge for Excellence. Bring together the resources necessary to solve important economic and managerial problems experienced by organizational entities in the region and the State. Lead to increased extramural research funding. ADMINISTRATIVE STRUCTURE The Center for World Wide Supply Chain Management is administered by Executive Director, Dr. Hokey Min Dr. Min is responsible for the administration of the Institute and will be responsible for fostering interaction among the key areas, proactively informing local industry of the services provided by the focus areas, and developing interdisciplinary teams in response to government Requests for Proposals (RFP’s) and industry contracts. The Executive Director will also be responsible for coordinating the educational offerings of CWWSCM, including seminars, roundtables, certificate and degree programs, and executive education. APPLIED PROBLEM SOLVING The resources of the Institute can also be used to assist in the solution of logistics and distribution problems encountered by companies or other organizations in the region and the State. These can be either research solutions resulting from the creation of new knowledge, entrepreneurial strategies or the application of existing knowledge to solve the problems frequently arising in supply chain management. Examples of these types of logistics and distribution problems are provided below. LTL Distribution Problems Less-than-truckload shippers can realize economies by consolidating their freight bound for distant destinations with that of other shippers. Optimum Network Reliability The problem of network connectivity is crucial in transportation and communication networks, particularly in defense applications. The objective was to develop techniques to maximize the connectivity of the network. Routing and Scheduling of Aircraft An important logistics problem is the optimal or near optimal scheduling of aircraft on routes so that the cost of moving people or goods is minimized. This is a difficult problem to formulate and solve mathematically to get a closed form solution. Frequently heuristic or simulation models must be developed to obtain acceptable, implementable solutions. Management of Technological Innovation in Supply Chain: Management for Automotive Manufacturing In advanced technology management, manufacturing activities tend to be defined as a "continuously value-adding information exchange process." This is because even a small manufacturing improvement can produce numerous and valuable information exchanges among various functions such as assembly, inspection, quality assurance, purchasing and marketing. A faculty member in industrial engineering at U of L has recently submitted a major proposal to the National Science Foundation for support in working with the Ford Kentucky Truck Plant and BMW in Greenville, SC to study the impact of electronic data interchange (EDI) in implementing supply chain management concepts in the automotive industry. Fleet Sizing, Route Determination, and Vehicle Allocation These types of problems generally fall into a category called "routing problems," and are exemplified by intriguing names such as the traveling salesman problem, or the Chinese Postman problem. They generally seek to determine routes for a vehicle or a fleet of vehicles required to service some demand in the public or private sector at a minimum cost for personnel and equipment. The difficulty and complexity involved in solving them grows exponentially with problem size. Nevertheless, they are typical of the problems that must be solved to increase efficiency in such seemingly mundane activities as trucking, solid waste collection, and bus routing. U of L faculty members from industrial engineering and mathematics have a wealth of experience in solving these types of problems. Location of a New Fire Department Critical to the needs of community fire protection, equal distribution of fire department coverage is essential in handling emergency runs. Time of travel, road access, and barriers to travel, all must be taken into consideration when redistricting fire department protection coverage. Working with the City of Elizabethtown Planning Commission, and using Geographic Information System (GIS) technology, U of L staff developed several model scenarios to locate a new fire station. Maps, as well as on-line computer demonstrations, were provided which displayed travel times, fire district overlap, and best travel routes. Digital Network of Water Lines An inventory of city infrastructure can be expedited by centralizing this information using GIS technology. The GIS can store in digital format all linear features and link these features to information stored in a database. Working with the City of Elizabethtown Planning Commission, U of L staff digitally reproduced a map of all underground water lines within the city proper including data on pipe diameter, length, and elevation. Using this information, holding capacities and flow rates can be modeled, and future needs assessments can be predicted. Hierarchical Production Planning, Layout Design and Simulation A large-scale simulation model was developed for Henry Vogt Machine Company in Louisville by faculty of the Industrial Engineering Department. It was used to assess various layout design configurations for a new plant, which featured machining cells and hierarchical production planning. The simulated flow of production and purchased parts through the alternative facility layouts was evaluated to assist the company in selecting the best design from those considered.

Dr. Hokey Min, Director of The Center for World Wide Supply Chain Management

Shelby Campus - Burhans LL23, (502) 852-2818 Fax: (502) 852-2842
Email: h0min001@gwise.louisville.edu

The Center for World Wide Supply Chain Management

INTRODUCTION

The University of Louisville created The Center for World Wide Supply Chain Management (CWWSCM) to serve as the organizational entity required to bring together the strong individual, but currently fragmented, university resources that have been engaged in conducting research, teaching and solving problems relating to supply chain management. Given the faculty, staff, students, degree programs, and facilities extant, the focus that can be provided by this institute can truly lead to research and problem solving excellence in supply chain management.

WHAT IS SUPPLY CHAIN MANAGEMENT?

According to The International Center for Competitive Excellence, supply chain management is defined as the integration of business processes from end user through original suppliers that provide products, services and information that add value for customers and other stakeholders.

BACKGROUND

In the report "Economic Development Strategy for the Greater Louisville Region," prepared for the Louisville Area Chamber of Commerce and the Greater Louisville Economic Development Partnership, logistics and distribution were cited as key factors in the economic development of the region. As a result, the University of Louisville’s Challenge for Excellence has embraced logistics and distribution as an area of strength. The wisdom of these actions is supported in a recent report by The Logistics Institute at the Georgia Institute of Technology which states:

Logistics represents a significant and growing segment of the United States’ economy, accounting for more than $1 trillion annually. It also plays a critical role in international trade, which is expected to more than quadruple over the next 15 years. Companies increasingly view logistics as a crucial element in their corporate strategy. If modern enterprises are to meet customer demands for responsiveness, customization, quality, and value, they must effectively and efficiently link their entire global supply chain.

ORGANIZATION, RESOURCES AND OBJECTIVES OF THE INSTITUTE

MISSION STATEMENT

The mission of the Center for World Wide Supply Chain Management (CWWSCM) is to provide state-of-the-art education, research and development in the field of Supply Chain Management at the University of Louisville. The goals of CWWSCM are:

To sustain a high-quality research environment by facilitating interdisciplinary and application oriented research that will benefit the Louisville academic and business community.
To take a leadership role in building the close-knit industry network in the Kentuckiana area by promoting local roundtable meetings.
To identify outreach and training needs of the local governments, port authorities, and logistics companies in the city of Louisville, and the states of Kentucky and Indiana.
To offer innovative and viable solutions to a variety of supply chain problems encountering the regional business community.
To develop cutting-edge instructional programs and curriculums (e.g., interdisciplinary courses, executive development seminars, distance learning) for regional business employees seeking career-long supply chain education and training.
To attract extramural funding to support supply chain related research activities of the College of Business and Public Administration.
To take the initiatives in global academia/industry partnerships and cross-industry cooperation in response to the current industry trend.
To profile the best industry practices that will make regional businesses more competitive in the global marketplace.

Figure 1 is a conceptual map showing the interaction of three key areas of CWWSCM.

Focus Areas

E-Commerce Synchronized Supply Chain Management
Health Care Logistics
Quick-Response Logistics
Reverse Logistics
Global Supply Chain Management
Warehousing Management

The Institute meets two primary objectives of the Challenge for Excellence.

Bring together the resources necessary to solve important economic and managerial problems experienced by organizational entities in the region and the State.
Lead to increased extramural research funding.

ADMINISTRATIVE STRUCTURE

The Center for World Wide Supply Chain Management is administered by Executive Director, Dr. Hokey Min

Dr. Min is responsible for the administration of the Institute and will be responsible for fostering interaction among the key areas, proactively informing local industry of the services provided by the focus areas, and developing interdisciplinary teams in response to government Requests for Proposals (RFP’s) and industry contracts. The Executive Director will also be responsible for coordinating the educational offerings of CWWSCM, including seminars, roundtables, certificate and degree programs, and executive education.

APPLIED PROBLEM SOLVING

The resources of the Institute can also be used to assist in the solution of logistics and distribution problems encountered by companies or other organizations in the region and the State. These can be either research solutions resulting from the creation of new knowledge, entrepreneurial strategies or the application of existing knowledge to solve the problems frequently arising in supply chain management. Examples of these types of logistics and distribution problems are provided below.

LTL Distribution Problems

Less-than-truckload shippers can realize economies by consolidating their freight bound for distant destinations with that of other shippers.

Optimum Network Reliability

The problem of network connectivity is crucial in transportation and communication networks, particularly in defense applications. The objective was to develop techniques to maximize the connectivity of the network.

Routing and Scheduling of Aircraft

An important logistics problem is the optimal or near optimal scheduling of aircraft on routes so that the cost of moving people or goods is minimized. This is a difficult problem to formulate and solve mathematically to get a closed form solution. Frequently heuristic or simulation models must be developed to obtain acceptable, implementable solutions.

Management of Technological Innovation in Supply Chain: Management for Automotive Manufacturing

In advanced technology management, manufacturing activities tend to be defined as a "continuously value-adding information exchange process." This is because even a small manufacturing improvement can produce numerous and valuable information exchanges among various functions such as assembly, inspection, quality assurance, purchasing and marketing. A faculty member in industrial engineering at U of L has recently submitted a major proposal to the National Science Foundation for support in working with the Ford Kentucky Truck Plant and BMW in Greenville, SC to study the impact of electronic data interchange (EDI) in implementing supply chain management concepts in the automotive industry.

Fleet Sizing, Route Determination, and Vehicle Allocation

These types of problems generally fall into a category called "routing problems," and are exemplified by intriguing names such as the traveling salesman problem, or the Chinese Postman problem. They generally seek to determine routes for a vehicle or a fleet of vehicles required to service some demand in the public or private sector at a minimum cost for personnel and equipment. The difficulty and complexity involved in solving them grows exponentially with problem size. Nevertheless, they are typical of the problems that must be solved to increase efficiency in such seemingly mundane activities as trucking, solid waste collection, and bus routing. U of L faculty members from industrial engineering and mathematics have a wealth of experience in solving these types of problems.

Location of a New Fire Department

Critical to the needs of community fire protection, equal distribution of fire department coverage is essential in handling emergency runs. Time of travel, road access, and barriers to travel, all must be taken into consideration when redistricting fire department protection coverage. Working with the City of Elizabethtown Planning Commission, and using Geographic Information System (GIS) technology, U of L staff developed several model scenarios to locate a new fire station. Maps, as well as on-line computer demonstrations, were provided which displayed travel times, fire district overlap, and best travel routes.

Digital Network of Water Lines

An inventory of city infrastructure can be expedited by centralizing this information using GIS technology. The GIS can store in digital format all linear features and link these features to information stored in a database. Working with the City of Elizabethtown Planning Commission, U of L staff digitally reproduced a map of all underground water lines within the city proper including data on pipe diameter, length, and elevation. Using this information, holding capacities and flow rates can be modeled, and future needs assessments can be predicted.

Hierarchical Production Planning, Layout Design and Simulation

A large-scale simulation model was developed for Henry Vogt Machine Company in Louisville by faculty of the Industrial Engineering Department. It was used to assess various layout design configurations for a new plant, which featured machining cells and hierarchical production planning. The simulated flow of production and purchased parts through the alternative facility layouts was evaluated to assist the company in selecting the best design from those considered.