Supply Chain Coordination and Sourcing (in English)

llsms2035  2020-2021  Louvain-la-Neuve

Supply Chain Coordination and Sourcing (in English)
Due to the COVID-19 crisis, the information below is subject to change, in particular that concerning the teaching mode (presential, distance or in a comodal or hybrid format).
5 credits
30.0 h
This course is reserved for students with a bachelor's degree in business engineering or students with equivalent quantitative method skills.
Main themes
The course provides an indepth treatment of the relationships between independent firms in a supply chain through the analysis of their behavior, contractual frame, product, process and market choices. The first part of the course aims at understanding and modelling the strategic behavior between firms using the tools of LSM2031 and game theory in order to understand how to design the features and parameters of supply chain information. The second part looks at supplier relationsships from a strategic perspective, interfacing with procurement, production planning and product innovation, to understand the scope and limits of the previously defined tools in contexts such as e.g. armslength, partnerships and supplier pools. Strategic sourcing is a collaborative and systematic approach to reduce external spending, while improving quality, internal processes and total cost of ownership or usage.

At the end of this learning unit, the student is able to :


During their programme, students of the LSM Master¿s in management and Master¿s in Business engineering will have developed the following capabilities¿


  • Master highly specific knowledge in one or two areas of management : advanced and current research-based knowledge and methods.


  • Perceptively synthesize the essential elements of a situation, demontsrating a certain conceptual distance, to diagnose and identify pertinent conclusions.


  • Position and understand the functioning of an organization, in its local and international socio-economic dimensions and identify the associated strategic issues and operational decisions.


  • Work in a team :Join in and collaborate with team members. Be open and take into consideration the different points of view and ways of thinking, manage differences and conflicts constructively, accept diversity.



The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
The purpose of the course is to provide analytical skills in supply chain coordination techniques. The base models will be primarily the standard newsboy model for inventory management and simple two-period investment-production models for the strategic game models. Some topics that will be studied:
●  Mechanisms for coordination (Information, Relational, Contractual)
●  Quantity Discounts
●  Buy-back contracts
●  Revenue Sharing
●  Price Protection and Quantity Flexibility
●  Game-theoretical models in supply chain coordination
●  Hold-up problems (investment, inventory)
●  Investment incentives for product and process innovation
Teaching methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

The class is mainly analytical and based on modern readings in the area. The sessions are devoted to theoretical discussions of selected aspects and debriefs of cases and assignments. Applied examples for the concepts using real firms, newspaper clips and numerical illustrations are provided at the lectures. At some occasions, interactive games are used to illustrate the intuition or complexity of certain models.  Inbetween lectures, participants work on the reading assignments and the course cases. 
Evaluation methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

Continuous evaluation
  • Date: will be announced on Moodle
  • Type of evaluation: Group work (I & II)
  • Comments: No
Evaluation week
  • Oral: No
  • Written: No
  • Unavailability or comments: No
Examination session
  • Oral: No
  • Written: Yes (3hours)
  • Unavailability or comments: No
Other information
Prerequisites (ideally in terms of competencies) LSM2030 LSM2031 LSM2032 
Online resources
Moodle webpage
All required teaching material and supplementary texts available on Moodle. 
Teaching materials
  • CachonG(2003)SupplyChainCoordinationwithContracts.Ch6in ed. S Tayur, R Ganeshan and M Magazine, Quantitative Models for Supply Chain Management, pp. 198-232.
  • Cachon G and S Netessine (2004) Game Theory in Supply Chain Analysis. Ch 6 in David Simchi-Levi, S. David Wu and Zuo-Jun (Max) Shen (Eds.), Supply Chain Analysis in the eBusiness Era, Kluwer.
  • Agrell (2019) C1: Toner for the World, Agrell, UCL/LSM, 2019.
  • Agrell (2019) C2: Mattel Supply Chain Organization, Agrell, UCL/LSM, 2019
Faculty or entity

Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Master [120] : Business Engineering

Master [120] : Business Engineering