ITLS6002 Supply Chain Planning and Design
The Complete Exam Bible · S2 2026ITLS6002 Overview
- Semester 2 2026
- Postgraduate
- Excel model work
- Six source-led chapters
What this unit asks you to do
Supply Chain Planning and Design develops a quantitative decision toolkit across inventory control, demand and lead-time uncertainty, aggregate planning, sales and operations planning, facility location, distribution networks and last-mile choices.
- Final exam The published written final is worth 35% and lasts two hours.
- Model before recommending Balances and constraints must work before cost output can support a choice.
- Interpret changed cases Explain which formula or constraint moves and whether the recommendation survives.
- Use the permitted notes sheet Organise formulas by decision and place diagnostic checks beside them.
How ITLS6002 is assessed
| Component | Weight | Format |
|---|---|---|
| Final Exam essay and model-based questions | 35% | Written exam, 2 hours, formal exam period |
| Computer exam - inventory control Computer exam covering material from the first 6 weeks of the unit. Exam will be held within the normal timetabled session for the unit. | 35% | Practical test, 2 hours, Week 08 |
| Group assignment Report | 30% | Written group work, 8 pages maximum |
The official Semester 2 outline totals 100%. A current Canvas announcement calls the computer exam 30%, while the official outline table states 35%; confirm the displayed weight on the live assessment page. The Semester 2 group brief states 6 November 2026, while the outline row shows an inherited May date.
Assessment structure
Segment widths show the official outline weights for the final exam, computer exam and group assignment, totaling 100%.
Current ITLS6002 dates
| Date | Item | Control |
|---|---|---|
| 23 September 2026 | Computer exam | Current Canvas announcement and outline timing. |
| 6 November 2026 | Group assignment | Current Semester 2 assignment brief due date. |
Dates follow the current Semester 2 Canvas announcement and assignment brief; the inherited May outline date is excluded. Confirm exact deadlines and submission settings in the live LMS.
What ITLS6002 covers
Six chapters move from inventory control through aggregate planning to facility, distribution and last-mile design.
Inventory Costs, EOQ and Reorder Points
Separate order quantity, timing and annual cost before testing constraintsInventory decisions begin by separating acquisition, ordering, holding and shortage costs, because only costs that change with the decision belong in the optimisation.
- Inventory cost classification
- Economic order quantity derivation
- Cycle stock and sawtooth profiles
- Reorder point timing
- Total relevant cost comparison
- Assumptions and sensitivity checks
Safety Stock and Periodic Review
Match demand variability and service targets to the correct protection periodSafety stock converts uncertainty and a service objective into a protection quantity. The calculation depends on what varies, how the lead-time demand distribution is represented, and whether the system is reviewed continuously or periodically.
- Demand uncertainty and lead-time exposure
- Cycle service level and z-values
- Continuous-review safety stock
- Periodic-review protection intervals
- Order-up-to levels
- Service-cost trade-offs
Advanced Inventory Decisions
Model time-varying demand, echelon exposure and single-period orderingAdvanced inventory planning selects a policy that matches the structure of the decision rather than forcing every case into EOQ. Quantity discounts require total landed-cost comparisons across feasible price ranges.
- Quantity-discount candidate testing
- Single-period newsvendor logic
- Time-varying lot sizing
- Mixed-integer inventory models
- Echelon versus installation stock
- Model selection and boundary checks
Aggregate and Sales Planning
Balance demand, capacity, inventory and flexible supply across the horizonAggregate planning translates medium-term demand into coordinated production, workforce, inventory, overtime and subcontracting decisions.
- Sales and operations planning cycle
- Level and chase strategies
- Hybrid capacity policies
- Inventory and backlog balance
- Capacity and workforce constraints
- Plan auditing and KPI comparison
Facility Location and Network Optimisation
Open feasible sites, route flows and test capacity and resilienceFacility-location models decide which sites to open and how demand should flow through the resulting network. Their logic combines binary opening choices with continuous allocations, fixed costs with transport costs, and customer assignment with site capacity.
- Strategic network-design drivers
- Centre-of-gravity approximation
- Fixed-charge facility location
- Demand allocation constraints
- Capacity and opening-link constraints
- Scenario and resilience interpretation
Distribution Networks and Last-Mile Design
Connect customer promises to distribution options, costs and response trade-offsDistribution design determines which stages hold product, who performs transport and fulfilment, and how the customer receives an order.
- Distribution network roles
- Direct shipping and in-transit merge
- Distributor and local storage
- Pickup and retail fulfilment
- Response-time and cost frontiers
- Last-mile threshold decisions
The recurring task is to turn an operating situation into a transparent spreadsheet model, check that its balances and constraints work, and explain why one feasible option is preferable.
Calculations matter, but the current assessment guidance also stresses comparison, adaptation, interpretation and recommendation.
How the six chapters connect
The first chapter separates the economic order quantity from the reorder trigger and shows how ordering and holding costs create the basic trade-off. The second chapter adds uncertain demand, safety stock, service measures and periodic review.
The third changes the decision horizon through time-varying demand, echelon stock and the newsvendor model. The fourth moves from item control to aggregate capacity, inventory and sales planning. The fifth formulates facility-opening and flow decisions with capacity and resilience.
The final chapter connects competitive strategy to distribution and last-mile structures.
What makes the course demanding
The published final exam is worth 35% and uses essay and model-based questions over two hours. The course page says all material is assessable, with particular emphasis on aggregate planning and the first network-design block.
Excel is required, so revision must combine formulas, model layout, constraint diagnosis and written interpretation. The strongest preparation is to rebuild unfamiliar cases with new values and then change one condition, rather than memorising a finished workbook.
How to use this guide
For each chapter, read the concept map and write the decision variable in words.
Recompute the finished example without copying its formulas. Attempt the practice cards, then compare units, balances and direction words. Keep a repair log that records the first failed step.
The formula sheet should route you to a method and a check, while the prose should help you explain the operational consequence and the condition that would reverse your recommendation.
ITLS6002 cheatsheet for the final exam
AskSia publishes a free ITLS6002 cheatsheet for the final exam, an A4 cheat sheet that follows the official permitted-materials rule for this assessment and condenses the topics in this guide.
Worked example · free
Choose a feasible inventory policy
- 2Convert the carrying rate to dollars per unit-year.
- 3Compute the unconstrained EOQ with consistent annual units.
- 3Compare neighbouring feasible carton quantities and conclude.
Key terms
- Economic Order Quantity
- Economic Order Quantity is the replenishment size that balances annual ordering and regular-stock carrying costs under the basic assumptions.
- Reorder Point
- Reorder Point is the inventory-position trigger that covers expected demand during replenishment lead time plus any safety stock.
- Safety Stock
- Safety Stock is the additional inventory held to protect a stated service target against demand or lead-time variability.
- Service Level
- Service Level measures the proportion of demand supplied without stockout under the course's expected-shortage relation.
- Periodic Review
- Periodic Review checks inventory at set intervals and orders enough to restore inventory position to a target level.
- Newsvendor Model
- Newsvendor Model chooses a single order by comparing the marginal costs of underage and overage.
- Aggregate Planning
- Aggregate Planning balances medium-term demand with capacity, workforce, inventory, backlog and flexible supply decisions.
- S&OP
- S&OP reconciles demand, operations and financial plans so commercial commitments remain feasible.
- Mixed Integer Programming
- Mixed Integer Programming combines continuous quantities with discrete choices such as opening a facility or releasing an order.
- Echelon Stock
- Echelon Stock measures inventory at a node together with the downstream inventory that the node supports.
- Centre Of Gravity
- Centre Of Gravity gives a flow-weighted coordinate estimate for further facility-location evaluation.
- Last-Mile Design
- Last-Mile Design selects how orders reach customers through delivery, pickup, stores or combined channels.
ITLS6002 FAQ
How should economic order quantity and reorder point be separated?
Economic order quantity answers how much to replenish by balancing ordering and regular-stock carrying cost. Reorder point answers when to release that order by covering demand during lead time plus any safety stock. Keep the two results in separate spreadsheet rows and report both in the policy.
Why does periodic review usually need more safety stock?
A periodic system waits until the next review before it can respond, then also waits through replenishment lead time. Its protection period therefore includes review time plus lead time. The longer exposure increases mean protected demand and usually increases the variability term used for safety stock.
What should be checked before trusting a Solver result?
Reconcile physical balances, verify demand satisfaction, inspect capacity and non-negativity, confirm binary opening or order links, and recompute the objective from its cost components. Then change one material input. A plausible objective value cannot compensate for a missing operational constraint.
How should aggregate plans be compared?
Use the same demand, horizon, opening conditions, capacity limits, service assumptions and final-balance requirement. Compare relevant cost by category and explain the operating pattern behind it. A lower number is not comparable if one plan quietly permits backlog or excludes a cost included elsewhere.
What makes a network recommendation defensible?
Name the chosen facilities or channel structure, show routed flow and capacity feasibility, compare cost and customer-service effects, and test a disruption or demand change. Finish with a condition that would reverse the choice so the recommendation can be monitored after implementation.
What is published about the final exam?
The official outline describes a two-hour written final worth 35% with essay and model-based questions. The course page says all material is assessable, with emphasis on aggregate planning and the first network-design block, requires Excel, and permits one double-sided A4 notes sheet.
Questions students ask in each ITLS6002 chapter
- Why are purchase costs often omitted from the basic EOQ objective?
- If the unit price is constant, annual purchase cost does not change with order quantity, so it cannot change the optimum. Purchase cost must return to the comparison when quantity discounts or other price changes make it decision-relevant. Chapter 01 · Inventory Costs, EOQ and Reorder Points
- Why does periodic review usually require more protection than continuous review?
- A periodic system may wait until the next review before responding, so it must cover both the review interval and the replenishment lead time. A continuous system can trigger as soon as the inventory position crosses its threshold. Chapter 02 · Safety Stock and Periodic Review
- Why must quantity-discount breakpoints be tested?
- An EOQ computed using a lower price may fall outside that price bracket. The breakpoint is the smallest feasible quantity receiving the discount, and its lower purchase cost can dominate even when it raises cycle-stock holding cost. Chapter 03 · Advanced Inventory Decisions
- Why can a low-cost aggregate plan still be unacceptable?
- A model may exploit backlogs, workforce changes or subcontracting in ways that breach service, labour or supplier limits. Review the decision profile and operational constraints, not just the objective value, before recommending the plan. Chapter 04 · Aggregate and Sales Planning
- Why is centre of gravity only a starting point?
- It treats location as continuous and usually simplifies distance and cost. Real choices are discrete and affected by capacity, fixed cost, infrastructure, risk and service requirements, so the estimate should generate candidates rather than settle the decision. Chapter 05 · Facility Location and Network Optimisation
- Why can direct shipping reduce inventory but raise transport cost?
- Central pooling reduces duplicated stock and improves demand aggregation, but customer orders travel individually over longer distances. The network exchanges inventory efficiency for smaller, more frequent and often more expensive transport movements. Chapter 06 · Distribution Networks and Last-Mile Design
How to study for the exam
Build revision around decisions rather than lecture order alone. Start with the policy question, write the balance or trade-off, and label every input with its time basis and unit. Recompute one worked example from a blank spreadsheet, then change a service target, capacity, fixed cost or demand pattern and trace the first affected formula.
For Solver work, keep decision cells, objective and constraints visible and perform an independent balance reconciliation. Practise writing two-sentence conclusions that state the selected option, its comparator and the condition that would reverse the result.
Use the permitted double-sided A4 notes sheet as a routing system: one section for inventory formulas, one for aggregate balances, one for facility constraints and one for distribution comparison criteria. In the final week, alternate model builds with short essay outlines so Excel work does not crowd out interpretation during the two-hour exam.
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