Design, Analysis and Optimization of Supply Chains: A System Dynamics Approach (Supply and Operations Management Collection)

This book is a study of supply chain dynamics in the aerospace industry. It is almost impressive in how obscure and useless it is. Improperly managed supply chains can make planes inoperable and cost millions of dollars. Components are made of sub-assemblies, and each layer of contractors has months of lead time between when an order is placed and a part is delivered. Even in relatively simple cases, the ‘bullwhip effect’ can amplify variations down the supply chain. After reading this book, I have a greater appreciation for difficulties in this field.

Unfortunately, I also have no greater understanding of how to model supply chains, or how to improve them. Basic ideas, like translating real-world terms into system diagrams, and calculating lags from actual data, are mentioned not at all. The graphs are poorly designed to the point of pain. This is a rare book that would be improved by more equations, because then I could at least implement them in a modern language.

The saving grace, and reason this gets a second star, is one useful equation in the first chapter about how to estimate how much stock to have on hand, given variability and lag time. This appears to come from Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply chain: Concepts, strategies and case studies, which may be a decent book on the subject.