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Supply Materials Management

Course Code: BUSN 3386
Faculty: Commerce & Business Administration
Department: Business
Credits: 3.0
Semester: 15 weeks
Learning Format: Lecture, Seminar
Typically Offered: TBD. Contact Department Chair for more info.
course overview

This course provides students with analytical tools for translating production plans into material requirements in the manufacturing and service environments. Factors and constraints in planning and scheduling are analyzed and a number of techniques to achieve production goals efficiently are introduced. Topics to be covered include inventory mangement, planning material requirements to support the master schedule, capacity and priority planning, product and process design, and supply and purchasing.

Course Content

1. The Master Scheduling concept and its relationship to Production Plans
a. Master Production Schedule process
b. Rough-cut capacity planning
2. Material Requirements Planning
a. MRP objectives, roles and process
b. Basic MRP techniques
c. Bills of Material, their formats and use
d. MRP management
3. Capacity definitions and concept
a. Capacity Requirement Plan (CRP) and its inputs
b. Loading
c. Production Activity Control
d. Theory of Constraints and Drum-Buffer-Rope scheduling
4. Factors influencing product and process development
a. Make-or-buy decision
b. Purchasing
c. Supply Risk and Profit Impact Model
d. Suppliers selection and management
5. Inventory classification
a. Aggregate and item inventory management methodologies
b. Independent and dependent demand
c. Inventory valuation methods
d. Inventory audits
6. Inventory costs
a. ABC classification
b. Order quantities and methodologies
c. Lot-size decision rules
d. Order Point System
e. Safety stock
f. Periodic Review System
g. Lean production impact on inventory

Methods of Instruction

Interactive lectures and case analysis

Means of Assessment

Group case project 20 - 30%

Assignments          15 - 20%

Participation            0 - 10%

Midterm                 20 - 25%

Final                      25 - 35%

Note:  Students must achieve a grade of at least 50% on the combined examination components to pass the course.

Learning Outcomes

After completing this course, successful students will be able to:

  • Demonstrate understanding and use the supply chain and materials management terminology and concepts;
  • Apply Master Scheduling and the Master Production Schedule (MPS);
  • Determine requirements and keep priorities current using Material Requirement Planning (MRP) and Bills of Material;
  • Apply Theory of Constraints (TOC), capacity planning and Production Activity Control (PAC);
  • Use the technique of Backward scheduling;
  • Analyze and apply measures of efficiency and utilization;
  • Apply inventory management techniques including inventory valuation using financial statements, performance measures and inventory audits, lot-size and safety stock decision rules, ABC classification, and aggregate and item inventory methodologies;
  • Evaluate make-or-buy decisions and purchasing and supplier relations, and
  • Analyze factors affecting product and process development.  

course prerequisites

Minimum grade of C in [(BUSN 2429 OR MATH 1160) and BUSN 3380], permission of the instructor, OR currently active in the:
PDD Supply Chain Management AND a minimum grade of C in BUSN 3380, or
PBD Computer and Information Systems AND a minimum of C grade in BUSN 3380.



curriculum guidelines

Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.

course schedule and availability
course transferability

Below shows how this course and its credits transfer within the BC transfer system. 

A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.

For more information on transfer visit the BC Transfer Guide and BCCAT websites.


If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.