: These sites host comprehensive lecture notes and summaries for Chapters 1-6, 10, and 15 of the 7th edition.

Cost ^ | / Total Cost | \ / | \_/ <-- Optimal Number of Facilities | / \__ Transportation Cost | /_______ Inventory & Facility Costs +-------------------------------------> Number of Facilities Global Supply Chain Network Design and Risk Management

The distributor delivers the product directly to the customer’s home rather than using a carrier. This requires a high density of local facilities.

Revenue management uses differential pricing over time, customer segments, or product availability to maximize profits from a finite set of supply chain assets.

Varying machine capacity or hiring/laying off workforce to match production directly with the demand rate. Inventory remains low, but workforce morale and utilization costs can be volatile.

Chopra defines this as the difference between the value generated for the customer and the total cost incurred by the supply chain. This reframes the relationship between suppliers, manufacturers, and retailers. Instead of one entity trying to squeeze profit out of another, the goal is to increase the size of the pie for everyone involved.

Delaying product differentiation until closer to the point of sale (e.g., manufacturing generic sweaters and dyeing them only when specific color demand is known) significantly reduces safety stock requirements. Seasonal Inventory