OPRE 6363: Managing Inventory

Tuesday/Thursday 5:30-6:45 p.m.

SOM2.901

Course Instructor Prof. Holly Lutze, hlutze@utdallas.edu, SOM 3.403

Office hours: Tuesdays 10:00 a.m. to noon (or by appointment)

Teaching Assistant Ruixia Shi, rxs039200@utdallas.edu, SOM 3.409

Office hours: Mondays 3:00-5:00 p.m.

Course Objective In this course, we will study inventory control as a competitive strategy. The
material includes analysis and application of deterministic and simple stochastic
inventory models. Course concepts are presented through a combination of theory,
problem solving, and case discussion.

Prerequisites OPRE 6302 & exposure to probability (or consent of instructor)

Related Courses OPRE 6366: Supply Chain Management

OPRE 6370: Logistics and Distribution

Textbook Inventory Management and Production Planning and Scheduling

By Edward A. Silver, David F. Pyke and Rein Peterson
Third edition published by John Wiley & Sons, Inc., 1998.

Course Units I. Fundamentals & Forecasting (~2.5 wks)

Chapters 1-4, Case: Northco (A) HBS 9-697-017
II. Deterministic Demand (~2.5 wks)
Chapters 5-6, Case: Brazilian Chemical Company
Intl. Trans. in Op. Res. 6 (1999) 623-637
III. Probabilistic Demand (~3 wks)
Chapters 7, Case: Progistix-Solutions Inc. HBS 905D02
IV. Special Class of Inventory (~3.5 wks)
Chapters 8-10, Case: Paper and More HBS 9-604-093
V. Multi-product & Multi-echelon (~2.5 wks)
Chapters 11-12, Inventory Game

Grading Method 10% Class Participation

Each student is expected to contribute to regular classroom discussion. In
addition, during each course unit, each student must bring in and
summarize for the class one newspaper or magazine article pertaining to
course material.
10% Homework Average
Students will receive short weekly homework assignments. Students may
work together but must prepare answers individually, with full understand
of what they write. Identical assignments will be in violation of university
regulations and will receive no credit.
70% Quizzes 1-5
Each course unit will be followed by a quiz on the covered
material. Each quiz counts for 14% of the final course grade.
10% Inventory Game Performance & Report
More details to follow.
Tentative Course Schedule

Wk Activity Topic Due

Lecture Strategic Inventory Management: 1.1-1.3, 2.1-2.4
1
Lecture Framework for Inventory Management: 3.1-3.4, 3.6-3.11
Lecture Forecasting: 4.1-4.6 HW 1Due
2
Case Northco (A) HBS 9-697-017 HW 2 Due
3
Quiz Chapters 1-4
Lecture Level Demand: 5.1-5.3, 5.5-5.10
4
Lecture Time-Varying Demand: 6.1-6.8 HW 3 Due
5
Case Brazilian Chem. Company Intl. Trans. in Op. Res. 6 (1999) 623-637
Quiz Chapters 5-6 HW 4 Due
6
Lecture Probabilistic Demand – Continuous Review
7
Lecture Probabilistic Demand – Periodic Review
HW 5 Due
8 Case HP Deskjet Printer Supply Chain (A) HBS GS-3A
~~~SPRING BREAK~~~
Quiz Chapter 7 HW 6 Due
9
Lecture Class A Inventories: 8.1-8.7
HW 7 Due
10
Lecture Class C Inventories: 9.1-9.5
Lecture Style Goods & Perishables: 10.1-10.7 HW 8 Due
11
Case Paper and More HBS 9-604-093
Quiz Chapters 8-10 HW 9 Due
12
Lecture Coordinated Replenishments: 11.1-11.5
13
Lecture Multiechelon Inventories: 12.1-12.4
HW 10 Due
14
Quiz Chapters 11-12 Game Report Due