gnu. MASTER’S SEMINAR. Global Production
and Supply Chain
Management. 

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Global Production
and Supply Chain
Management

Prepared by Mohamed Samir Khalifa  Ahmed Bakry Mohamed Hamdy Amira Mohamed

Photo: Bayport Container Terminal, via Wikimedia Commons

Presentation Objectives. ORIENTATION / 02. The learning outcomes move from conceptual foundations to managerial implementation.. 

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The learning outcomes move from conceptual foundations to managerial implementation.

Trace the shift from scientific management and mass production to global, digital, resilient, and sustainable supply networks.

Differentiate production, operations, logistics, procurement, SCM, and global production networks; apply major scholarly definitions.

Evaluate location, capacity, make-or-buy, sourcing, supplier, logistics, inventory, and integrated-planning decisions.

Compare lean, agile, resilient, and viable operating models; identify risks and develop continuity responses.

Connect digitalization, sustainability, performance metrics, governance, and implementation into a coherent management system.

Scope synthesized from the supplied source document; academic framing developed for this presentation.

From Factory Efficiency to Network Orchestration. 

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From Factory Efficiency to Network Orchestration

The unit of analysis expanded from a task, to a plant, to an inter-organizational ecosystem.

Managerial question: How can the entire network create customer value while balancing efficiency, responsiveness, risk, and responsibility?

Sources: Taylor (1911); Ohno (1988); Womack, Jones & Roos (1990); Mentzer et al. (2001).

Foundations Before the 21st Century. EVOLUTION / 04. 

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Each school solved a different operational problem—and created a capability still used today.

Standard work, time study, task specialization

Interchangeable parts, assembly line, scale

Process variation, prevention, continuous improvement

JIT, jidoka, pull, kaizen, waste elimination

Materials planning, shared data, enterprise coordination

Sources: Taylor (1911); Ford (1926); Deming (1986); Ohno (1988); Orlicky (1975).

The 21st-Century Transformation. EVOLUTION / 05. Globalization created reach; digitalization created visibility; disruption made resilience strategic.. 

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Globalization created reach; digitalization created visibility; disruption made resilience strategic.

• Offshoring and contract manufacturing scale

• China’s WTO accession accelerates global production networks

• Post-crisis cost pressure and supplier consolidation

• Cloud, IoT, robotics, advanced analytics

• E-commerce raises speed and fulfillment expectations

• COVID-19 exposes concentration and tier-n opacity

• Semiconductor and logistics bottlenecks

• Continuity and working capital become board priorities

• Near/friend-shoring and regional capacity

• AI, sustainability, traceability, and viability

Sources: Christopher (2016); Spieske & Birkel (2021); Ivanov & Dolgui (2020); UNCTAD (2024).

Academic Definitions: What SCM Actually Means. FOUNDATIONS / 06. 

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Academic Definitions: What SCM Actually Means

The literature converges on strategic coordination across functions and organizations.

Systematic, strategic coordination of traditional business functions within a firm and across businesses in the supply chain—aimed at improving long-term performance.

Integration of key business processes from end users through original suppliers that provide products, services, and information adding value for customers and stakeholders.

Management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole.

Synthesis: SCM is a governance philosophy for end-to-end processes—not a synonym for purchasing, transport, or software.

Sources: Lambert & Cooper (2000); Mentzer et al. (2001); Christopher (2016); CSCMP Supply Chain Management Definitions.

The Supply Chain as a System of Flows. FOUNDATIONS / 07. 

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Material moves downstream; demand, cash, data, and returns move in both directions.

Optimization must be end-to-end: improving one node can worsen total cost, service, inventory, or risk elsewhere.

Sources: Lambert & Cooper (2000); Mentzer et al. (2001); Chopra & Meindl (2019).

Production, Operations, Logistics, and SCM. FOUNDATIONS / 08. 

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Production, Operations, Logistics, and SCM

The concepts overlap, but their scope, decision horizon, and unit of analysis differ.

Concept Primary scope Typical decisions Performance emphasis Production management Factory / transformation process Scheduling, capacity, quality, maintenance Cost, yield, throughput Operations management Processes producing goods or services Process design, workforce, demand–capacity match Quality, speed, flexibility Logistics Movement and storage Transport, warehousing, order fulfillment Lead time, freight cost, reliability Procurement External resource acquisition Supplier selection, contracts, category strategy Total cost, quality, supply assurance Supply chain management End-to-end interfirm network Integration, incentives, planning, risk, relationships Total value and network performance Global SCM Cross-border multi-tier ecosystem Footprint, trade, currency, geopolitics, compliance Value under uncertainty

Key distinction: logistics executes flows; SCM aligns decisions, relationships, and incentives across the network.

Sources: Slack & Brandon-Jones (2019); Christopher (2016); CSCMP definitions.

Global Production Strategy and Network Design. STRATEGY / 09. 

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Global Production Strategy and Network Design

A production network is a portfolio of capabilities—not merely a collection of low-cost factories.

Where should each capability live, at what scale, and with how much redundancy?

The answer must connect corporate strategy, customer promise, technology, and risk appetite.

Centralized hub  •  Regional hubs  •  Local-for-local  •  Hybrid / segmented network

Sources: Porter (1985); Ferdows (1997); Hayes & Wheelwright (1984); Chopra & Meindl (2019).

Facility Location and Capacity Decisions. STRATEGY / 10. 

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Use a total-network business case; labor cost alone rarely explains long-run competitiveness.

Lead: ahead of demand
Lag: after demand is proven
Match: incremental expansion

Global scale hub
Regional hub
Local-for-local
Dual / backup site

Duties and freight
Quality and delay
Working capital
Coordination complexity

Scenario NPV
Sensitivity analysis
Stress test
Exit / reversibility cost

Decision rule: choose the footprint with the strongest risk-adjusted total value—not the lowest visible unit cost.

Sources: Ferdows (1997); Chopra & Meindl (2019). Weights shown are illustrative and must be adapted to the firm.

Make, Buy, Outsource, or Partner?. STRATEGY / 11. 

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The decision combines transaction economics, strategic capability, control, and ecosystem access.

Retain core know-how, IP, quality-critical processes, and differentiating capabilities.

Co-develop, share risk, create governance, align incentives, and preserve access to innovation.

Keep where coordination, utilization, or reliability makes internal provision economically sound.

Use qualified markets for standardized, non-core activities with measurable service levels.

Evaluate: asset specificity • uncertainty • frequency • IP • supplier capability • switching cost • reversibility

Sources: Williamson (1985); Barney (1991); Quinn & Hilmer (1994); McIvor (2009).

Global Sourcing and the Kraljic Portfolio. SOURCING / 12. 

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Global Sourcing and the Kraljic Portfolio

Category strategy should reflect both supply risk and profit impact—not apply one sourcing policy to everything.

Secure allocation and buffers Develop substitutes Monitor tier-n constraints

Executive governance Joint innovation and capacity Open-book risk / cost dialogue

Standardize specifications Automate buying channels Reduce process cost

Competitive tendering Volume bundling Should-cost and market intelligence

Source: Kraljic (1983), “Purchasing Must Become Supply Management,” Harvard Business Review.

Supplier Management and Collaboration. SOURCING / 13. 

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A low quoted price is not supplier value; management must consider total cost, capability, risk, and relationship fit.

Category criticality, risk, switching cost

Quality systems, capacity, compliance, financial health

Weighted score, total landed cost, scenarios

Service levels, incentives, IP, continuity clauses

Forecast sharing, EDI/API, joint planning

Kaizen, technical support, capability investment

Scorecards, QBRs, escalation, renewal/exit

Competitive discipline; standardized interfaces

Joint roadmaps; mutual dependence; innovation governance

Sources: Dyer & Singh (1998); Krause, Handfield & Tyler (2007); Monczka et al. (2020).

Global Logistics and Total Landed Cost. EXECUTION / 14. 

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Mode choice is a service-and-risk decision; freight rate is only one component of economic cost.

Mode Speed Cost Capacity Emissions intensity Best use Air Very high Very high Low High Urgent, high-value, low-weight Ocean Low Low Very high Low per ton-km Global bulk/container flows Rail Medium Medium High Relatively low Long-distance corridors Road High locally Medium–high Medium Medium–high Flexible regional / last mile Multimodal Balanced Balanced High Route-dependent Cost-service optimization

Purchase price + freight + duties + insurance + handling + inventory-in-transit + quality/delay risk + administrative cost

Application: segment logistics by customer promise and product economics; do not use one mode or service level for every SKU.

Sources: Christopher (2016); Ballou (2004); Chopra & Meindl (2019).

Inventory as a Strategic Decoupling Mechanism. EXECUTION / 15. 

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Inventory as a Strategic Decoupling Mechanism

Inventory protects service and continuity—but also hides variability, ties up cash, and can become obsolete.

Reorder point = expected lead-time demand + safety stock

EOQ balances ordering cost with holding cost under simplifying assumptions

ABC–XYZ segmentation combines value/volume with demand variability

Delay final configuration until demand becomes clearer. This reduces finished-goods risk while preserving responsiveness.

Management objective: minimize total expected cost subject to a defined service level and risk tolerance.

Sources: Silver, Pyke & Thomas (2016); Fisher (1997); Chopra & Meindl (2019).

S&OP / Integrated Business Planning. EXECUTION / 16. 

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IBP converts functional forecasts into one feasible, financially aligned plan with explicit decisions.

Demand signals and scenarios
Capacity, materials, constraints
Financial targets and risk appetite

Volume and mix commitments
Inventory and capacity actions
Trade-offs, owners, escalation

Sales forecast as the plan
No financial reconciliation
Meetings without decision rights

Fewer surprises and expedites
Better service and working capital
Faster cross-functional decisions

Sources: Wallace & Stahl (2008); Thomé et al. (2012).

Lean Production and the Toyota Production System. 

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Lean Production and the Toyota Production System

Lean is a socio-technical system for customer value, stable flow, built-in quality, and continuous learning.

Takt time
Continuous flow
Pull / kanban
Small batches

Stop at abnormality
Quality at source
Visual control
Root-cause learning

Standard work • Heijunka
Kaizen • 5S • TPM
Respect for people
Daily problem solving

STABILITY: capable processes • reliable equipment • leveled workload • disciplined management

Defects  •  Overproduction  •  Waiting  •  Non-used talent  •  Transport  •  Inventory  •  Motion  •  Extra processing

Sources: Ohno (1988); Womack & Jones (1996); Liker (2004).

Lean, Agile, Resilient—and Viable. OPERATING MODELS / 18. 

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The appropriate model depends on demand, supply uncertainty, product economics, and societal constraints.

Model Primary aim Best fit Design mechanisms Failure risk Lean Efficiency Stable, predictable demand Flow, pull, waste removal, low variability Fragility if buffers vanish Agile Responsiveness Volatile / innovative markets Flexible capacity, postponement, rapid sensing Higher conversion cost Resilient Continuity & recovery Disruption-prone networks Redundancy, diversity, visibility, recovery plans Cost without prioritization Viable Long-term survival Persistent structural change Agility + resilience + sustainability + adaptation Complex governance

Use lean for predictable base demand, agile capacity for volatility, resilience for critical nodes, and viability for long-term ecosystem adaptation.

Sources: Naylor, Naim & Berry (1999); Lee (2004); Sheffi (2005); Ivanov & Dolgui (2020).

Global Supply Chain Risk Landscape. RISK / 19. Risk = likelihood × impact × exposure duration; systemic risks propagate through dependencies and shared infrastructure.. 

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Risk = likelihood × impact × exposure duration; systemic risks propagate through dependencies and shared infrastructure.

equipment, labor, utility, process failure

geopolitics, climate, pandemic, regulation

1 Cyberattack   2 Single-source   3 Trade restriction   4 Demand shock   5 Natural disaster   6 Quality   7 FX

Sources: Tang (2006); Pettit, Fiksel & Croxton (2010); Christopher & Peck (2004). Heatmap positions are illustrative.

Resilience: Anticipate, Absorb, Recover, Adapt. RISK / 20. 

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Resilience: Anticipate, Absorb, Recover, Adapt

Resilience is an operating capability built before disruption—not an emergency response created during it.

Map dependencies; monitor signals; run scenarios

Buffers, dual sources, modular capacity, insurance

Control tower, decision rights, rapid allocation

Prioritized restart, alternative lanes, customer recovery

Redesign network, update policies, institutionalize learning

Prioritize critical products  •  Diversify intelligently  •  Make trade-offs visible  •  Assign owners  •  Test recovery, not only prevention

Resilience economics: compare the cost of readiness with the expected margin, service, and reputation protected.

Sources: Sheffi (2005); Ivanov & Dolgui (2020); Pettit et al. (2010).

Digital Transformation of the Supply Chain. DIGITAL / 21. 

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Digital Transformation of the Supply Chain

Technology creates value only when reliable data, redesigned processes, skills, and governance change decisions.

AI/ML optimization • scenario engines • autonomous recommendations

Digital twins • simulation • network design • predictive maintenance

Control towers • track-and-trace • event management • alerts

Cloud platforms • APIs/EDI • blockchain for selected trust problems

IoT sensors • RFID • machine/transaction data • external signals

Suppliers • plants • warehouses • transport • customers

Visibility and traceability
Planning quality
Speed and utilization

Master-data discipline
Process ownership
Cybersecurity and architecture

Human oversight
Model risk / bias
Interoperability and adoption

Sources: Spieske & Birkel (2021); Ivanov, Dolgui & Sokolov (2019). Blockchain value depends on governance and use case.

Sustainable and Circular Supply Chains. SUSTAINABILITY / 22. 

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Sustainability expands optimization from firm cost to economic, environmental, and social value across the life cycle.

Profitability • productivity • innovation • continuity

Carbon • energy • water • materials • waste • biodiversity

Labor rights • safety • human rights • inclusion • community

Measure Scope 1–3, supplier standards, product life, recovery yield, and verified outcomes—not claims alone.

Sources: Carter & Rogers (2008); Seuring & Müller (2008); Ellen MacArthur Foundation (2013).

Implementation Barriers—and How to Overcome Them. 

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Implementation Barriers—and How to Overcome Them

Most failures are organizational and architectural, not purely technical.

Barrier Root cause Managerial response Evidence of progress End-to-end complexity Multi-tier dependencies; fragmented ownership Map critical value streams; assign process owners Tier-n coverage; decision latency Low visibility / poor data Inconsistent master data; weak partner connectivity Data governance; event standards; selective control tower Data accuracy; event coverage Silos and local KPIs Functions optimize cost, service, or cash independently IBP; shared metrics; explicit trade-off governance Plan adherence; fewer expedites Technology legacy Point solutions; integration debt; unclear use case Modular architecture; value-led pilots; cybersecurity by design Adoption; benefit realization Geopolitical / regulatory risk Concentration; long routes; changing rules Scenario design; dual sourcing; regional options; compliance intelligence Recovery time; exposure reduction Capability and change gap Insufficient analytics, supplier, and process skills Role-based training; change network; incentives; leadership cadence Use in decisions; behavior change

Sources: Mentzer et al. (2001); Spieske & Birkel (2021); Chopra & Meindl (2019).

Performance System and Implementation Roadmap. IMPLEMENTATION / 24. 

Global Production and Supply Chain Management

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