Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

1.3 Strategies in the Entrepreneurial Context

Intended learning outcomes: Differentiate between various entrepreneurial objectives in a company and in a supply chain. Explain resolving conflicting entrepreneurial objectives. Describe the customer order penetration point (OPP) and the coordination with product and process design. Produce an overview on the target area flexibility: investments in enabling organizations, processes, basic technologies, and technologies toward personalized production.


Logistics, operations, and supply chain management can best be understood as management systems for performance, according to Fig. 1 in the introduction. Particular attention will be paid to delivery, that is, high fill rate, delivery reliability, and short lead times. No other manage­ment system within and across companies focuses to this extent on delivery. In addition, it is also concerned with how the various stakeholders of the company, in this case especially the business partners, experience the way in which delivery is handled.


Course section 1.3: Subsections and their intended learning outcomes

  • 1.3 Strategies in the Entrepreneurial Context

    Intended learning outcomes: Differentiate between various entrepreneurial objectives in a company and in a supply chain. Explain resolving conflicting entrepreneurial objectives. Describe the customer order penetration point (OPP) and the coordination with product and process design. Produce an overview on the target area flexibility: investments in enabling organizations, processes, basic technologies, and technologies toward personalized production.

  • 1.3.1 QCDF — Entrepreneurial Objectives in a Company and in a Supply Chain

    Intended learning outcomes: Produce an overview on company performance, or supply chain performance. Identify entrepreneurial objectives affected by logistics, operations, and supply chain management in the target areas of quality, costs, delivery, and flexibility (QCDF). Describe target areas in supply chain performance across companies.

  • 1.3.2 Resolving Conflicting QCDF Objectives

    Intended learning outcomes: Produce an overview on the supply chain strategy and the business plan. Explain opportunity, opportunity cost, and the potential for conflicting QCDF objectives. Present terms such as return on net assets, net income, profit after tax, net working capital, and primary entrepreneurial objective. Disclose the objective of a supply chain initiative (SCI).

  • 1.3.3 Customer Order Penetration Point (OPP), or Customer Order Decoupling Point (CODP), and Coordination with Product and Process Design

    Intended learning outcomes: Explain the determination of the (customer) order penetration point, or customer order decoupling point, and the stocking level. Describe the modular product concept, the concepts of customization and late customization as well as the postponement approach.



Course 1: Sections and their intended learning outcomes

  • Course 1 – Logistics, Operations, and Supply Chain Management

    Intended learning outcomes: Describe basic definitions, issues, and challenges. Identify business partners and business objects. Explain strategies in the entrepreneurial context. Disclose how performance is measured.

  • 1.1 Basic Definitions, Issues, and Challenges

    Intended learning outcomes: Produce an overview on terms of the working environment and of business life. Explain service orientation in the classical industry, product orientation in the service industry, and the industrial product-service system. Disclose the product life cycle, the synchronization of supply and demand, and the role of inventories. Produce an overview on supply chain management, the role of planning and control as well as the SCOR model.

  • 1.2 Business Objects

    Intended learning outcomes: Present business-partner, and order-related business objects in detail. Explain product-related, process-related, and resource-related business objects. Produce an overview on rough-cut business objects.

  • 1.3 Strategies in the Entrepreneurial Context

    Intended learning outcomes: Differentiate between various entrepreneurial objectives in a company and in a supply chain. Explain resolving conflicting entrepreneurial objectives. Describe the customer order penetration point (OPP) and the coordination with product and process design. Produce an overview on the target area flexibility: investments in enabling organizations, processes, basic technologies, and technologies toward personalized production.

  • 1.4 Performance Indicators and Performance Measurement

    Intended learning outcomes: Present the basics of the measurement, meaning, and practical applicability of logistics performance indicators. Describe performance indicators in the target areas of quality, costs, delivery, and flexibility. Produce an overview on performance indicators of the primary entrepreneurial objective.

  • 1.5 Summary

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  • 1.6 Keywords

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  • 1.7 Scenarios and Exercises

    Intended learning outcomes: Describe improvements in meeting entrepreneurial objectives. Differentiate between entrepreneurial objectives and the ROI. Assessing the Economic Value Added (EVA) of Supply Chain Initiatives. Derive rough-cut business objects from detailed business objects.

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