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SAMUEL H. HUANG
Supply
Chain
Management
For Engineers
Supply
Chain
Management
For Engineers
SAMUEL H. HUANG

Boca Raton London New York

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Contents

Preface.......................................................................................................................ix
Author.......................................................................................................................xi

1. Designing and Engineering the Supply Chain for Competitive

Advantage......................................................................................................... 1
1.1 Overview.................................................................................................1
1.2 Supply Chain Types...............................................................................4
1.3 Supply Chain Design........................................................................... 12
1.4 Supply Chain Process Model............................................................. 16
1.5 Supply Chain Drivers.......................................................................... 20
Problem: Dr. Smart’s Supply Chain Strategy.............................................. 23
References........................................................................................................ 24

2. Understanding Customer Demand: Forecasting..................................... 25

2.1 Overview............................................................................................... 25
2.2 Time Series Forecasting...................................................................... 27
2.2.1 Constant Process..................................................................... 27
2.2.2 Trend Process..........................................................................34
2.2.3 Seasonal Process..................................................................... 38
2.3 Error Analysis.......................................................................................42
2.4 Case Studies.......................................................................................... 45
Problem: Oriental Trading Company.......................................................... 55
Exercises........................................................................................................... 57
References........................................................................................................ 58

3. Matching Supply with Demand: Aggregate Planning.......................... 59

3.1 Overview............................................................................................... 59
3.2 Elements of Aggregate Planning....................................................... 60
3.3 Aggregate Planning Strategies........................................................... 62
3.3.1 Level Strategy.......................................................................... 62
3.3.2 Capacity Strategy.................................................................... 67
3.3.3 Chase Strategy......................................................................... 70
3.4 Linear Programming Approach to Aggregate Planning............... 71
3.4.1 Problem Formulation............................................................. 71
3.4.2 Gurobi Optimizer................................................................... 75
3.4.3 Solving Aggregate Planning Problems Using Gurobi
Optimizer.................................................................................77

v
vi Contents

3.5 Case Studies.......................................................................................... 87

Problem: Plastic Bottle Inc............................................................................. 99
Exercises......................................................................................................... 100
References...................................................................................................... 102

4. Satisfying Customer Demand: Inventory Management..................... 103

4.1 Overview............................................................................................. 103
4.2 Economic Order Quantity................................................................ 104
4.2.1 Basic Concept of Economic Order Quantity..................... 104
4.2.2 EOQ Calculation under Different Scenarios.................... 106
4.2.3 Multiple Types of Products.................................................. 109
4.2.4 Quantity Discounts.............................................................. 112
4.3 Safety Inventory................................................................................. 117
4.3.1 Continuous Review.............................................................. 117
4.3.2 Periodic Review..................................................................... 120
4.3.3 Impact of Demand Correlation........................................... 122
4.3.4 Impact of Lead Time Uncertainty...................................... 125
4.4 Optimal Product Availability........................................................... 127
4.5 Case Studies........................................................................................ 130
Problem: Business Attire Store.................................................................... 136
Exercises......................................................................................................... 137
References...................................................................................................... 138

5. Moving Products across Supply Chain: Distribution Network

Design and Transportation Decision Making....................................... 139
5.1 Overview............................................................................................. 139
5.2 Frameworks for Distribution Network Design and
Transportation Decision Making..................................................... 144
5.3 Distribution Network Design Models............................................ 147
5.4 Transportation Decision Making..................................................... 154
5.5 Case Studies........................................................................................ 165
Problem: Dragon Furniture Enterprise...................................................... 175
Exercises......................................................................................................... 176
References...................................................................................................... 178

6. Supplier Selection Methodology.............................................................. 179

6.1 Overview............................................................................................. 179
6.2 Supplier Performance Measures...................................................... 180
6.3 Supplier Selection Methods.............................................................. 183
6.3.1 Analytical Hierarchy Process Approach........................... 185
6.3.2 Multiattribute Utility Theory Approach........................... 197
6.4 Contracts to Increase Supply Chain Profitability.......................... 200
6.5 State of the Art in Supplier Selection.............................................. 202
References...................................................................................................... 203
Contents vii

7. Supply Chain Simulation Game.............................................................. 205

7.1 Overview............................................................................................. 205
7.2 Sales Contract and Aggregate Plan................................................. 209
7.3 Simulation and Profit Analysis........................................................ 213
7.4 Notes for Using the Simulation Game............................................ 218
Preface

Supply chain management is an area that has generated a great deal of inter-
est in academia over the past two decades. The emergence of supply chain
management is a response to increased competition in the global market. It
integrates suppliers, manufacturers, distributors, and customers to reduce
costs over the entire chain and to respond quickly to customer needs. Supply
chain management is inherently multidisciplinary and requires the efforts
of both engineers and business managers. Broadly speaking, engineers deal
with modeling and optimization of supply chain operations, whereas busi-
ness managers focus on strategies for the framework of supply chain mod-
els. In practice, business strategy dictates supply chain strategic decisions,
whereas modeling and optimization are tools to facilitate the execution of
these decisions.
Supply chain management was originally taught in business schools with a
strong focus on strategic thinking. It has since appeared as elective and grad-
uate courses in engineering colleges. It is a logical conclusion that more and
more engineering colleges will offer this course in order to satisfy increased
demand of engineers with supply chain knowledge. However, the majority
of supply chain management textbooks are geared toward business school
students. Some of these books do not cover quantitative analysis techniques;
others include only a superficial coverage of modeling and optimization
techniques. Supply chain management textbooks that have a reasonable cov-
erage of quantitative analysis techniques are few and far between. Typically,
the presentation of these techniques was intertwined with a large amount of
qualitative discussion of strategic issues. For an engineering course focusing
on modeling and optimization, one has to distill the quantitative analysis
components and supplement them with more in-depth coverage that is suit-
able for the engineering discipline.
This book is targeted toward engineering students. It is concise, straight-
forward, and easy to read. It is also strongly influenced by the problem-
based learning (PBL) pedagogy. It uses example problems to introduce key
concepts. Case studies are then used to help strengthen students’ analysis
and synthesis skills. It also presents a simulation game where students can
play the roles of suppliers, Original Equipment Manufacturers, and retailers
within a supply chain environment to practice the skills they acquired.
This book is designed to cultivate students’ practical problem-solving
skills. It covers both theoretical concepts and the use of practical software
tools, including Excel spreadsheet and Gurobi Optimizer. The majority of the
examples and all the case problems are presented in a real-world application
context. Students are encouraged to act as consultants to provide solutions

ix
x Preface

and recommendations. This provides a motivation for students to acquire

supply chain knowledge and to sharpen their problem-solving skills.
It is recommended that the instructor use a combination of traditional lec-
ture and PBL approach when using this textbook. PowerPoint lecture slides
with embedded Excel solutions and Gurobi model files are provided. The
instructor can start by presenting key supply chain concepts and model-
ing and optimization techniques using the lecture slides. The students are
encouraged to practice problem solving using the embedded Excel solution
and Gurobi model files. The instructor can then dedicate a few class sessions
on selected case studies where students are required to work together to
develop solutions. During these class sessions, the instructor should serve
as a facilitator to guide and challenge the learning process. In addition to
exercises, this book also provides several problems that are relatively compli-
cated. These problems can be used as mini-projects for the students so they
will have an opportunity to link theoretical concepts to practical problem
solving. The instructor can select a few students to present their solutions
to the entire class. This will provide an opportunity to engage students in
peer-to-peer learning. It also makes the students’ thinking processes trans-
parent so the instructor can better assess their knowledge, skill, and attitude.
Finally, the simulation game can be used as a class project. Most students
are motivated to make their company as profitable as possible. They also
appreciate the opportunity to engage in contract negotiation where not only
analytical skills but also interpersonal skills play an important role. It is a
fun experience for the students as well as for the instructor.

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Author

Samuel H. Huang is professor and director of Intelligent Systems Laboratory

at the School of Dynamic Systems, the University of Cincinnati, Cincinnati,
Ohio. He was previously assistant professor of industrial ­ engineering
at the University of Toledo (1998–2001) and systems engineer at EDS/
Unigraphics (1996–1997, now Siemens PLM Software). He received his BS
in instrument engineering from Zhejiang University, Hangzhou, People’s
Republic of China, in 1991 and his MS and PhD in industrial engineering
from Texas Tech University, Lubbock, Texas, in 1992 and 1995, respectively.
Dr. Huang’s research focuses on supply chain management, system analy-
sis and optimization, and predictive analytics, with applications in manu-
facturing and healthcare delivery. He received the Robert A. Dougherty
Outstanding Young Manufacturing Engineer Award from the Society of
Manufacturing Engineers (SME) in 2005. Dr. Huang has published over 120
technical papers. He serves on the editorial boards of International Journal of
Industrial and Systems Engineering, Applied Computational Intelligence and Soft
Computing, and Recent Patents on Computer Science and on the advisory board
of International Journal of Advanced Manufacturing Technology. In addition to
many ­industry-sponsored projects, Dr. Huang has been awarded five grants
from the National Science Foundation for his research in manufacturing,
healthcare analytics, and engineering education.

xi
1
Designing and Engineering the Supply
Chain for Competitive Advantage

1.1 Overview
Generally speaking, a supply chain is a network of facilities that procure raw
materials, transform them into intermediate goods and then final products,
and deliver the products to customers through a distribution system. It
encompasses all the information, financial, and physical flows from the sup-
plier’s supplier to the customer’s customer. Consider the automotive indus-
try; the development, design, production, marketing, and delivery of new
cars is a team effort that begins with extracting raw materials from the earth,
continues through design, fabrication, and assembly, and ends with fit and
finish in the dealer’s showroom. When a customer buys a car, the customer
chooses the output of the entire supply chain and pays all the participants.
To be successful, automotive companies must develop an approach to design,
organize, and execute supply chain activities from its roots in basic materi-
als extracting to the dealer network. This does not mean ownership or even
direct control, but it does imply mechanisms that influence decision making
and impact system-wide performance.
A typical supply chain involves the following stages: (1) raw material/­
component suppliers, (2) original equipment manufacturers (OEMs),
(3) wholesalers/distributors, (4) retailers, and (5) customers. Consider the
case of a customer purchasing an HTC mobile phone from an electronics
store at MBK Bangkok, which is one of the best shopping malls in Thailand.
The electronics store, a retailer, offers a variety of mobile phones and other
electronics products for the customer to choose from. It obtains mobile
phones from Brightstar, a distributor of various wireless devices produced
by Apple, Nokia, HTC, and other OEMs. HTC, an OEM, obtains metal cases
for its mobile phones from Catcher Technology, a component supplier. The
customer, MBK electronics store, Brightstar, HTC, and Catcher Technology
are different stages in a mobile phone supply chain. Each stage is connected
through the flow of materials, information, and funds. A distinct process

1
2 Supply Chain Management for Engineers

Wholesalers/
Suppliers OEMs Retailers Customers
distributors

Catcher MBK
HTC Brightstar Customer
technology electronics

Procurement Manufacturing Replenishment Customer order

FIGURE 1.1
A typical supply chain and its process cycles.

cycle occurs between two successive stages of the supply chain, resulting in
a total of four process cycles, as shown in Figure 1.1. These process cycles are
summarized as follows:

• Customer order process cycle. This process cycle occurs between the
customer and the retailer. A customer arrives at the MBK electron-
ics store and decides to purchase an HTC mobile phone. The store
processes this information and fulfills the customer’s order. The cus-
tomer receives the HTC mobile phone that he/she desires. Funds are
transferred from the customer to the electronics store.
• Replenishment process cycle. This process cycle occurs between the
retailer and the wholesaler/distributor. As the inventory of mobile
phones at the MBK electronics store decreases to a certain level
because of fulfilling customer orders, the electronics store places an
order to Brightstar. Brightstar processes this information and sends
a shipment to the electronics store. The electronics store replenishes
its inventory. Funds are transferred from the electronics store to
Brightstar.
• Manufacturing process cycle. This process cycle occurs between the
wholesaler/distributor and the OEM. To replenish its inventory
of HTC mobile phones, Brightstar places an order to HTC. HTC
schedules its production based on order information. It then pro-
duces and ships the ordered mobile phone to Brightstar. Brightstar
replenishes its inventory. Funds are transferred from Brightstar
to HTC.
• Procurement process cycle. This process cycle occurs between the OEM
and the raw material/component supplier. HTC orders metal cases
for its mobile phones from Catcher Technology based on its produc-
tion schedule. Catcher Technology schedules its production based
on order information. It then produces and ships the ordered metal
cases to HTC. HTC receives the metal cases for its production. Funds
are transferred from HTC to Catcher Technology.
Designing and Engineering the Supply Chain for Competitive Advantage 3

Note that the previous description is a simplified version of a mobile phone

supply chain focusing on a single entity in each stage of the supply chain.
In reality, the MBK electronics store sells products obtained from different
wholesalers/distributors. It could also obtain products directly from certain
OEMs. Brightstar supplies thousands of retailers worldwide. When it orders
mobile phones from HTC, Brightstar aggregates demand from all the retail-
ers it supplies. In addition to HTC, Brightstar provides value-added distribu-
tion services for many other OEMs. On the other hand, HTC also provides
mobile phones to different wholesalers/distributors. Other than mobile
phones, HTC manufactures products such as tablets. When it schedules pro-
duction, HTC aggregates demands of different products from all of its cus-
tomers. In the production process, HTC requires many other components in
addition to metal cases for mobile phones. Therefore, it has many suppliers
in addition to Catcher Technology. Besides HTC, Catcher Technology sup-
plies metal cases to other OEMs as well. Therefore, it also uses aggregated
demand information from all of its customers for production scheduling.
In summary, the supply chain relationships among different companies are
complex and require a systematic management strategy.
A supply chain derives its revenue from the customer. It incurs various
costs in providing products and services to the customer. The difference
between the revenue generated and the overall costs across the supply chain
is the supply chain profitability. This is the profit to be shared across all sup-
ply chain stages. If each stage of the supply chain aims to maximize its own
profit without considering the entire supply chain, it may result in lower
supply chain profitability. Therefore, the objective of a supply chain should
be to maximize its profitability by carefully managing its assets, products,
information flow, and logistics.
The idea of supply chain management is to view the chain as an integrated
system and to fine-tune the decisions about how to operate the various com-
ponents (companies, functions, and activities) in ways that can produce the
most desirable overall system performance in the long run. Supply chain
management is made possible by the dramatic development of information
technology in the last several decades, while its seed was sown during World
War II when manufacturers were using systems capable of mass producing
standardized products efficiently. Emerging from World War II, demand for
all kinds of consumer products created large back orders. In this environ-
ment, variety was limited and a manufacturer’s competitive strength lay in
low-cost production and exploiting economies of scale. In the late 1970s, with
a decline in their share of the world markets, U.S. manufacturers recognized
that the price and quality of their products made them less competitive. They
thus adopted the total quality management (TQM) paradigm and regarded
price and reduced lead time as the market qualifier. Gradually, custom-
ers began to demand high-quality products with low price and short lead
time. This forced manufacturers to reexamine the mass production concept
to reveal previously “hidden” costs (due to the prevalent costing system at
4 Supply Chain Management for Engineers

the time) such as inventory, quality, and overheads. Another realization was
that success in the global economy would be achievable only if distinct mar-
ket segments were identified and targeted and products were custom-made
to suit the customer’s individual needs. Manufacturers were thus forced to
develop new methodologies and tools to face product customization and
lead time reduction. This gave rise to the supply chain management concept,
which integrates suppliers, manufacturers, wholesalers/distributors, retail-
ers, and customers to (1) reduce costs over the entire chain and (2) respond
quickly to customer needs.
Supply chain management is inherently multidisciplinary and requires
the efforts of both engineers and business managers. Broadly speaking,
engineers deal with design and development of technologies and models
of supply chain, whereas business managers work on the development and
implementation of strategies for the framework of supply chain models. In
practice, business strategy dictates supply chain strategic decisions, whereas
technologies and models are tools to facilitate the execution of these deci-
sions. Therefore, successful supply chain management requires both the
understanding of the strategies behind supply chain design and the mastery
of supply chain modeling and optimization techniques.
This book is written for engineers with an emphasis on modeling and
optimization techniques. However, engineers also need to have a clear
understanding of strategic issues in supply chain management. The rest
of the chapter will provide an overview of such issues, including the types
of supply chains, methods for designing supply chains, supply chain pro-
cess models and performance metrics, and drivers to improve supply chain
performance.

1.2 Supply Chain Types

Vonderembse et al. (2006), after a careful review of the literature, defined
three types of supply chains, summarized as follows:

• Lean supply chain. A lean supply chain (LSC) employs continuous

improvement efforts that focus on eliminating waste or nonvalue-
added steps along the chain. It is supported by efforts to achieve
internal manufacturing efficiencies and setup time reduction, which
enable the economic production of small quantities and enhance
cost reduction, profitability, and manufacturing flexibility to some
degree. The short setup time provides internal flexibility, but an LSC
may lack external responsiveness to customer demands, which can
require flexibility in product design, planning and scheduling, and
distribution in addition to manufacturing.
Designing and Engineering the Supply Chain for Competitive Advantage 5

• Agile supply chain. An agile supply chain (ASC) focuses on responding

to unpredictable market changes and capitalizing on them through
fast delivery and lead time flexibility. It deploys new technologies,
methods, tools, and techniques to solve unexpected problems. It uti-
lizes information systems and technologies, as well as electronic data
interchange capabilities to move information faster and make bet-
ter decisions. It places more emphasis on organizational issues and
people (knowledge systems and empowered employees), so decision
making can be pushed down the organization. The ASC paradigm
is a systemic approach that integrates the business, enhances inno-
vations across the company, and forms virtual organizations (VOs)
and production entities based on customer needs.
• Hybrid supply chain. A hybrid supply chain (HSC) generally involves
“assemble to order” products whose demand can be forecasted with
a relative high level of accuracy. The chain helps to achieve mass
customization by postponing product differentiation until final
assembly. The lean or agile supply chain techniques are utilized for
component production with different characteristics. For example,
in the automotive industry, air bags would most likely be produced
with an LSC while engine electronics might require the innovation
found in an ASC. In addition, the agility is needed to establish a
company–market interface to understand and satisfy customer
requirements by being responsive, adaptable, and innovative.

A more detailed description of LSC, ASC, and HSC is provided in Table 1.1.
These supply chain types are, to a large extent, a function of product char-
acteristics and customer expectations (Fisher 1997). With a rapidly chang-
ing business environment, organizations require a supply chain model that
deals with strategic and customer issues in addition to operating constraints.
The product is the soul of the supply chain; there is no justification for adopt-
ing a particular supply chain type unless it conforms to the needs of the
product and its customers. Three case studies are presented next to help the
reader better understand the relationships between supply chain types and
product characteristics.

Case Study 1.2.1 Black and Decker’s Lean Supply Chain

Black and Decker Inc. (now Stanley Black & Decker) produces a variety
of small appliances and hand tools for use in the home. Success in that
market is predicated on manufacturing products that have high quality
and low cost and a moderate amount of variety. Designs for these appli-
ances and tools change slowly, and demand for these products can be
characterized as slow and steady growth. Under these circumstances, an
LSC effectively meets the needs of Black and Decker. An LSC focuses on
operating issues as it attempts to eliminate nonvalue-added operations.
6 Supply Chain Management for Engineers

TABLE 1.1
Summary of Lean, Agile, and Hybrid Supply Chains
Lean Supply Chain Agile Supply Chain Hybrid Supply Chain
Category (LSC) (ASC) (HSC)
Definition An LSC employs Agility relates to the A HSC generally
continuous interface between a involves “assemble to
improvement to company and the order” products,
focus on the market. ASCs profit where demand can be
elimination of waste by responding to accurately forecasted.
or nonvalue-added rapidly changing, The supply chain
steps in the supply continually helps to achieve some
chain. It is supported fragmenting global degree of
by the reduction of markets by being customization by
setup time to allow dynamic and postponing product
for the economic context-specific, differentiation until
production of small aggressively final assembly. Lean
quantities, thereby changing, and or agile supply chains
achieving cost growth oriented. are utilized for
reduction, flexibility, They are driven by component
and internal customer-designed production. The agile
responsiveness. It products and services part of the chain
does not have the establishes an
ability to mass interface to
customize and be understand and
adaptable easily to satisfy customer
future market requirements by
requirements being responsive and
innovative
Purpose Focus on cost Understands customer Employ lean
reduction and requirements by production methods
flexibility for already interfacing with for manufacturing.
available products. customers and Interfaces with the
Employs a market and being market to understand
continuous adaptable to future customer
improvement process changes. Aims to requirements.
to focus on the produce in any Achieve a degree of
elimination of waste volume and deliver customization by
or nonvalue–added to a wide variety of postponing product
activities across the market niches differentiation until
chain. Primarily aims simultaneously. final assembly and
at cost cutting, Provides customized adding innovative
flexibility, and products at short components to the
incremental lead times existing products
improvements in (responsiveness) by
products reducing the cost of
variation
Approach to Advocates lean Advocates agile Employs lean and agile
manufacturing manufacturing manufacturing manufacturing
techniques techniques, which is techniques
an extension of lean
manufacturing
Designing and Engineering the Supply Chain for Competitive Advantage 7

TABLE 1.1 (continued)

Summary of Lean, Agile, and Hybrid Supply Chains
Lean Supply Chain Agile Supply Chain Hybrid Supply Chain
Category (LSC) (ASC) (HSC)
Integration Integrate Integrates marketing, Similar to the LSC at
manufacturing, engineering, component level and
purchasing, quality, distribution, and follows an ASC at
and suppliers information systems product level
Production Works on confirmed Has the ability to Works on confirmed
planning orders and reliable respond quickly to orders and reliable
forecasts varying customer forecasts with some
needs (mass ability to achieve
customization) some produce variety
Length of Standard products Innovative products Involved the
product life have relatively long have short life cycle production of
cycle life cycle time time (3 months to “assemble to order”
(>2 years) 1 year) products, which stay
in the maturity phase
of the life cycle for a
long time
Alliances May participate in Exploits a dynamic Along with traditional
traditional alliances type of alliance operating alliances,
such as partnerships known as a “virtual HSCs may utilize
and joint ventures at organization” that strategic alliances to
the operating level works on product respond to changing
design consumer
requirements
Markets Serve only the current Acquire new Respond to customer
market segments competencies, requirements with
develop new product innovative features in
lines, and open up existing products.
new markets This enables the
organization to
capture a larger
segment of that
product market
Organizational Uses a static Create virtual Maintain an
structure organizational organizations by organization similar
structure with few creating alliances to an LSC. May create
levels in the with partners that temporal
hierarchy vary with different relationships with
product offerings that partners to implement
change frequently innovative features
Approach to Supplier attributes Supplier attributes Supplier attributes
choosing involve low cost and involve speed, involve low cost and
suppliers high quality flexibility, and high quality, along
quality with the capability for
speed and flexibility,
as and when required
(continued)
8 Supply Chain Management for Engineers

TABLE 1.1 (continued)

Summary of Lean, Agile, and Hybrid Supply Chains
Lean Supply Chain Agile Supply Chain Hybrid Supply Chain
Category (LSC) (ASC) (HSC)
Demand Demand can be Demand is Similar to the LSC. The
patterns accurately forecasted unpredictable with average product
and average margin forecasting errors demand can be
of forecasting error exceeding 50% accurately forecasted.
tends to be low, Component-level
roughly 10% forecasting may
involve larger errors
Inventory Generates high turns Make in response to Postpone product
strategy and minimizes customer demand differentiation and
inventory throughout minimize functional
the chain components
inventory
Lead time focus Shorten lead time as Invest aggressively in Similar to the LSC at
long as it does not ways to reduce lead component level
increase cost time (shorten lead time but
not at the expense of
cost). At product
level, to accommodate
customer
requirements
Manufacturing Maintain high average Deploy excess buffer Combination of lean
focus utilization rate capacity to ensure and ASC depending
that raw material/ on the company
components are
available to
manufacture the
innovative products
according to market
requirements
Product design Maximize Design products to Use modular design in
strategy performance and meet individual order to postpone
minimize cost customer needs product
differentiation for as
long as possible
Human Empowered Involves decentralized Empowered
resources individuals working decision making. individuals working
in teams in their Empowered in teams in their
functional individuals working functional
departments in cross-functional departments
teams, which may be
across company
borders too
Source: Modified from Int. J. Prod. Econ., 100 (2), Vonderembse, M.A., Uppal, M., Huang, S.H.,
and Dismukes, J.P., Designing supply chains: Towards theory development, 223–238,
Copyright 2006, with permission from Elsevier.
Designing and Engineering the Supply Chain for Competitive Advantage 9

LSC partners support the reduction of setup time to enable the economic
production of small quantities. This enables the supply chain to keep
inventory costs low, achieve manufacturing cost reductions, and enables
manufacturing operations to switch quickly among products, which
provides a degree of responsiveness to customer needs. Customization
of individual products to satisfy specific requirements is not necessary
because a standard product meets the needs of most customers at an
affordable price.
As an example, consider the 3/8-in., variable speed, reversing drill, which
is one of Black and Decker’s most popular products. The tool is sold primar-
ily to homeowners, who use it infrequently to hang a shelf or repair a table.
The major components of the drill, whether produced by internal or external
suppliers, can be divided into three major groups. The electric motor and
other electronic components provide the power, the gearing transforms the
power to the drill bit, and the housing supports and encases the motor and
the gears. There are other items, including fasteners, that are also purchased,
but these items are standard and can be provided by many suppliers.
To create a successful supply chain, component suppliers must adopt
lean manufacturing and its continuous improvement philosophy. These
suppliers must achieve an interesting combination of flexibility and cost
reduction. Flexibility is needed because there are several different mod-
els of drills, as well as other hand tools and appliances that require simi-
lar components. Cost reduction is also essential because products, like
drills, are produced by many competitors and customers are price sensi-
tive. Cost reductions can be achieved when suppliers purchase large vol-
umes of basic materials such as steel for the gear manufacturer or copper
for the electric motor producer. They are also achieved by streamlining
the flow of materials and information through the supply chain to drive
out inventory and nonvalue-added steps. Because drills have low profit
margins, maintaining high sales and production volumes is critical for
profitability for all members in the supply chain.
Changes in product design are incremental and often focus on small
improvements in performance or cost reductions. Substantial improve-
ments in product performance are not generally available. For example,
most drills today have a keyless chuck so that bits can be quickly replaced
without searching for a tool to remove the bit. This redesign was accom-
plished easily and quickly. In another case, parts of the housing are now
made of plastic rather than steel because plastic is lighter and cheaper.
As a result, Black and Decker can with relative ease switch from one
supplier of electric motors to another, which is a significant motivator for
suppliers to seek continuous improvements in both component part cost
and quality. To the extent that Black and Decker and its supplier achieve
this, they will maintain and expand their share of the market.

Case Study 1.2.2 IBM’s Agile Supply Chain

IBM operates in the highly competitive information technology arena,
where response to rapidly changing and continually fragmented global
markets is essential. This requires IBM to move beyond operating
10 Supply Chain Management for Engineers

partnerships that cut manufacturing costs and reduce manufacturing

time to an environment that creates strategic partnerships that work
jointly on research and development, product conceptualization, prod-
uct development, and distribution, as well as operations. Under these
circumstances, an ASC creates dynamic and context-specific partner-
ships with various companies in order to meet specific customer needs.
An ASC learns and assimilates requirements by interfacing with cus-
tomers and markets. It adapts to changing expectations quickly and
with minimal disruption. It provides customized products at short lead
time by reducing the cost of variation.
IBM pursued a strategic business alliance with Hitachi that is designed
to accelerate the development and delivery of advanced storage technol-
ogies and products to meet diverse customer expectations. This alliance
combines technical leadership with global economies of scale in design-
ing and manufacturing disk storage. Various hard disk drive operations
were reorganized into a new standalone joint venture that integrated
research, development, and manufacturing. It also allowed the organi-
zations to coordinate related sales and marketing teams. In the storage
area, IBM has also collaborated with Tree Data to cater to individual cus-
tomer requirements in a timely manner. This collaboration helps IBM
concentrate on storage networking products for mid-sized customers.
With the flexibility that this partnership brings, IBM can design and
develop storage systems that meet the needs of various market segments
easily and quickly.
IBM is collaborating with UPS to manage IBM’s distribution network,
which covers Asia, Europe, and North America. The partnership was
created because UPS has the skills and ability to move products eas-
ily, quickly, and efficiently. UPS can help IBM coordinate and integrate
the supply and distribution networks that link suppliers to manufactur-
ers and manufacturers to customers. These efforts expand collaboration
among the four logistic centers in Singapore, Taiwan, the Netherlands,
and the United States, and 22 just-in-time suppliers and other vendor-
managed inventory locations. This has increased the real-time visibility
throughout the supply chain for IBM, which improves the management
of inventory and shortens product turnaround time. In addition, UPS
holds licenses in Europe and Asia that allow “self-reporting” of duties
and taxes owed after shipment, which reduces paperwork and creates
seamless operations in the supply chain. The important benefits achieved
through this collaboration are shorter cycle time from manufacturers to
customers, doubling inventory turns, and flexibility in expedited service
and rush deliveries.

Case Study 1.2.3 DaimlerChrysler’s Hybrid Supply Chain

Because vehicles are complex, with hundreds or even thousands of
components of varying cost and sophistication, DaimlerChrysler (now
Chrysler Group LLC) cannot use a one-size-fits-all approach when
developing supplier relationships. Some components that have high
product and/or process technology are undergoing rapid technological
Designing and Engineering the Supply Chain for Competitive Advantage 11

change and can add significant value to the vehicle in the eyes of the
consumer. Global positioning and information systems for navigation
are examples. This type of component may require DaimlerChrysler
to use ASC and to develop a strategic partnership with the supplier in
order to work jointly on product design and development. For other
components, product technology is well established but the components
themselves are high cost, bulky, and subject to variation. These products
also contribute significantly to factors that impact the customer deci-
sion to purchase or repurchase such as comfort, safety, appearance, or
reliability. For example, vehicle seats consume a lot of space, and they
come in a variety of styles and colors. Without careful management and
coordination between suppliers and manufacturers, production, inven-
tory, and material handling costs can spiral out of control. In this case,
DaimlerChrysler attempts to create operating partnerships that improve
overall supply chain performance. Some components are basic commod-
ities that customers do not see or appreciate, but they are essential to the
vehicle’s performance. These hidden items, like hose couplings and wire
connectors, are not points of differentiation for the customer, and they
are not valued by customers in the traditional sense. Customers only
notice them when they fail. These items are purchased based on quality,
cost, and reliable and on-time delivery. This wide range of components
presents DaimlerChrysler with fundamentally different supply chain
management issues. The following are three examples that illustrate
how the company handles these alternatives:

• Strategic Partnership with Dana Corporation. Dana designs and

manufactures drive train components for cars and trucks,
which are key components for delivering engine performance
to the wheels, improving operating efficiency, and enhancing
comfort. Many vehicles, especially light trucks and sport util-
ity vehicles, have more than one gearing option, so platform
design and flexibility in manufacturing are also important.
Drive train components interact significantly with engine and
body design, and engineers are beginning to use computer chip
to improve their efficiency. To optimize vehicle performance,
DaimlerChrysler, Dana Corporation, and other first-tier sup-
pliers work together on design teams to address important
design issues and make critical tradeoffs. Changes in weight,
engine displacement, or traction requirements can impact
design decisions for Dana. In addition, Dana’s manufactur-
ing operations are designed to achieve high quality, keep costs
low, and cope with variability in demand for the components.
DaimlerChrysler defines metrics to assess supplier perfor-
mance, sets target levels for these metrics, measures outcomes,
and works with suppliers to improve performance.
• Operating Partnership with Modine Manufacturing. Modine
Manufac­turing supplies cooling modules to DaimlerChrysler’s
new facility that assembles the Jeep Liberty. A cool-
ing module includes a radiator, fan, condenser for the air
12 Supply Chain Management for Engineers

conditioner, oil cooler, wiring, supporting frame, and hose

connections. The modules are a­ssembled by Modine and
delivered to DaimlerChrysler’s final assembly plant ready for
installation. To keep inventory and material handling costs
low, DaimlerChrysler insists that Modine deliver the cooling
modules within 4 h of the order and in the sequence needed at
the assembly line. To do this, DaimlerChrysler sends an elec-
tronic signal to the Modine Plant every time a vehicle begins
the trip down the assembly line (every 72 s). When Modine gets
the signal, it assembles the module from materials fabricated
at other facilities or it pulls the ­module from a modest 2-day
inventory. The modules are loaded on shipping racks in the
order needed at final assembly and delivered within 4 h. Upon
arrival, the rack is taken directly to the assembly line where
the modules are taken from the rack and placed in the vehicle.
This is much better than the traditional approach, which would
require DaimlerChrysler to stage the product, check the order,
determine what was needed immediately, and place what was
not needed in inventory. Modules placed in inventory would
be picked from inventory eventually and taken to the assem-
bly line. DaimlerChrysler pays only for modules that are in
vehicles that drive off the assembly line. This new approach
eliminates unneeded paperwork and clerical activity, and it
greatly reduces inventory and material handling costs. To help
Modine and its suppliers determine their inventory needs,
DaimlerChrysler provides a 5-day rolling schedule for produc-
tion that is not fixed but is usually very accurate.
• Commodity Purchasing: Threaded Fasteners. DaimlerChrysler also
purchases many different threaded fasteners for the final assem-
bly process. The size, shape, and strengths of these fasteners are
highly standardized. There are few, if any, significant design deci-
sions. These fasteners are simple and take little storage space, so
close coordination of production, shipping, and delivery of the fas-
teners is of limited importance. The primary elements in the pur-
chasing decision are quality, price, and reliable delivery. Strategic
and operating partnerships add little value. E-purchasing practices
and competitive bidding can be used to streamline paperwork and
coordinate delivery. The Internet has become an effective means
for purchasing these commodities because it eliminates transac-
tions that increase cost but add little if any value.

1.3 Supply Chain Design

The goal of a supply chain is to meet specific customer expectations and in
the mean time generate profit for the entire chain. As previously mentioned,
supply chain design should be a function of the product characteristics and
Exploring the Variety of Random
Documents with Different Content
“It will do more for you in the way of popularity than your empress
of the world pose. You asked me for my opinion. You now have it.
I’m going for a ride, and a stop at Baretti’s on the way back to
dinner.” Laura rose with the deliberate slowness which characterized
her every movement. “You’d better come along.”
“No; I have letters to write,” Stephanie replied curtly. She was still
piqued at Laura’s scarcely flattering criticism.
“Then you’d better put a ‘Busy’ sign on the door. Miss Ogden has
been here twice to see you while you were out.”
“Oh, that tiresome little upstart!” Stephanie’s face darkened. “I can’t
endure her.”
“She seems to have a crush on you.”
“She’ll have to get over it, then, for I can’t endure her. She’s
underbred.” Stephanie’s red upper lip lifted itself scornfully.
“She’s a freshie, though. Don’t forget that,” Laura reminded. “Class
election’s next week. Be nice to her, and she may nominate you for
president. Antagonize her, and she may do you a lot of damage
among the freshies. Those black eyes of hers can shoot danger
signals. Try snubbing her once, and then—look out.”
“You’re positively maddening today,” Stephanie exclaimed in angry
vexation. “You’ve done nothing but criticize me ever since I came
into the room.”
“At least I’ve said what I had to say to your face.” Laura’s unconcern
at her roommate’s displeasure was apparent. “You’d like it a good
deal less if I had said it to one of the other girls, and behind your
back.”
Stephanie accepted the truth of Laura’s calm statement with a
pettish little shrug. “I shall not put up a ‘Busy’ sign, nor answer the
door if she should knock,” she declared perversely.
“It’s up to you.” It was Laura’s turn to shrug. “Don’t forget, though,
that Miss Ogden rooms with Miss Cairns, and Miss Cairns is one of
the high powers on the campus, as nearly as I can judge. She’s a pal
of the Great I Am.”
“I fail to see any special reason why all that nonsense should be of
interest to me.” Stephanie chose to continue to be perverse.
“Think it over. So long. Shall I hang out the ‘Busy’ sign?”
“No,” Stephanie all but shouted the reply.
“All right. Have your own way about it, and be sorry afterward.” With
this prophetic warning, Laura went out the door, laughing softly,
leaving her stubborn roommate to digest the unwelcome prediction
as best she might.
 CHAPTER XIV

MARJORIE FINDS THE LOST NOTE BOOK

“Only one more case to do, then this job will be finished, and
finished as it should be.” Miss Susanna Hamilton, looking tinier than
usual in the enveloping folds of a blue and white pinafore, gave a
long, satisfied sigh as she viewed the completed work which had
engaged Marjorie, Jonas and herself for several days.
“It truly does look fine,” Marjorie echoed the sigh. Standing beside
Miss Susanna in the middle of the large library at the Arms, she was
a charming study of work in her pale blue smock and dust cap. “Only
to think; we are the first to re-arrange Mr. Brooke’s books since he
himself used them,” she added meditatively.
“Yes,” Miss Susanna nodded rather absently. Her thoughts, as well as
Marjorie’s, were turning to the long-passed master of the Arms
whose influence still pervaded the stately old house like a living
presence.
“Goodness knows the library needed a going-over,” Miss Hamilton
said with a sudden change to practicality. “Jonas has kept the books
dusted, of course; but that’s all. I knew Uncle Brooke’s books were
sadly out of place. I used to help him take care of his library.
Somehow, after his death, I hadn’t a heart for this straightening job.
Toward the last of his life he spent a great deal of time in the library.
He was inclined to forgetfulness at times, which accounts for his
books being so sadly out of place. They’re in order again at last,
thanks to you, Marjorie.” Her keen dark eyes wandered contentedly
from one tall-glassed bookcase to another.
“It’s not yet eleven. I think we’d have time to do that last case
before luncheon, don’t you?” Marjorie was appraising the contents of
a smaller teak-wood bookcase that stood by itself against the east
wall of the library. Three sides of the library were book-lined, but the
east side showed no bookcases other than the one she had just
indicated.
“Yes; I think so, too. That case holds Uncle Brooke’s most treasured
books.” Miss Susanna stood regarding it retrospectively. “Not books
which might be considered very valuable from a money standpoint,”
she explained. “It holds the books that were dear to him, for one
reason or another. He never followed any particular arrangement in
the matter of that case. I daresay half of them are standing upside-
down on the shelves. I left it until last, purposely. The case is locked,
but here’s the key.”
The old lady brought a small brass key from the depths of her
pinafore pocket. She trotted across the room to the case and fitted
the key to the lock. Marjorie followed her, standing interestedly
beside her as she swung open the double glassed doors. More than
once, during her stay at Hamilton Arms, while compiling the Brooke
Hamilton biography, she had wondered idly about this particular
case. Its glass doors had inside curtains of a thin, silky Oriental
material which lent to the case an oddly mysterious air. Miss
Susanna had never spoken of it to her, and Marjorie had delicately
forborne making any inquiry to Miss Hamilton concerning it.
“It’s just as he left it.” Miss Susanna’s brisk tones had softened. She
and Marjorie were gazing into the interior of the now open bookcase
at the orderly disorder of the overcrowded shelves. There were
books, thick and thin, large and small, even to tininess, leather and
cloth bindings, standing in uneven rows upon the dusty shelves. On
top of the rows were yet more books, in little piles of twos and
threes, a true sign of an ardent book lover.
“We’ll have to take them out, four or five at a time, dust them and
the space on the shelf that they occupy, then put them back exactly
as we found them,” was Marjorie’s plan of action. “Wait a minute, I’ll
bring you a chair, Goldendede. You shall sit beside me, and direct
this enterprise. Let me do the work. The case is hardly large enough
for us both to work on at the same time.”
She was hurrying across the library before she had finished speaking
for Miss Susanna’s favorite chair. “There, my dear Goldendede, pray
you be seated,” she invited, with a low bow, setting the chair beside
Miss Hamilton, “while your faithful servitor proceeds to work magic.”
“I’ll take you at your word, child. I’m really a little tired. I haven’t
your young strength, and we have delved most industriously this
morning.” The old lady sat down in the chair with grateful alacrity.
Very carefully Marjorie began the task. She started at the left end of
the top shelf of the case, gently pulling out the well-worn bindings
with reverent fingers. Brooke Hamilton had ranged literature in
search of the best was her thought as she continued to explore his
treasures.
“You are welcome to the key to the case at any time, Marjorie,” Miss
Susanna’s bright, bird-like eyes had not missed the warm, interested
light upon Marjorie’s lovely features as her willing hands moved
among the dusty bindings, restoring them once more to something
of their original pristine brightness.
“How dear in you, Goldendede. I was just wishing that I might go
browsing among these books.” Marjorie’s childlike delight at the
unexpected concession was the old lady’s pleasure. “This bookcase
seems a little library in itself, representative of Mr. Brooke and his
broad-mindedness.”
“It is just that. Uncle Brooke’s books were his best friends. They
were dear to him because of the particular message each had for
him.” The mistress of the Arms dropped into one of her not
infrequent intervals of silence which Marjorie had early come to
know and respect. She continued with her work, content to let the
little old lady shatter it at will.
“What is the latest news from the campus, child?” Miss Susanna
came suddenly out of her brief spell of silent abstraction. “‘I have
nerve,’ as Jerry would say, to ask you that, since I’ve been the
means of keeping you away from it for the past week.”
“Then, further to quote Jerry, ‘I like your nerve,’” Marjorie replied
laughingly. “I’ve loved to be here. Not that I love the campus less,
but Goldendede more. I’m going over to Wayland Hall tomorrow
evening to see the girls. Hal has a business appointment in the town
of Hamilton. I haven’t the least idea of what it’s all about. He’s been
very mysterious over it. He’s going to stop for me on his way home.”
“A business appointment! That sounds interesting.” Miss Susanna
exhibited affectionate curiosity. Hal’s one cross since he and Marjorie
had taken up their residence at Hamilton Estates had been his
inability to decide upon some definite plan of business occupation.
Possessed of a comparatively large fortune, inherited from his
grandfather, his youthful energy rebelled against settling down at
Travelers’ Rest as a country gentleman. Marjorie had found her work
at Hamilton College, the work which had all but parted them forever.
Hal hoped that he might also find a work in their new home,
satisfying to heart and brain. Only lately an idea had come to him as
the result of a prospecting tour about the staid, self-centered town
of Hamilton. Pursuant of his idea he had got into action. The result
had been his appointment with John Saxe, the real estate agent who
had formerly figured in the business ventures of the steady little firm
of “Page & Dean.” The outcome of his appointment with Mr. Saxe
would, he fondly hoped, furnish a happy surprise for Marjorie.
“Of course it sounds interesting. That’s precisely what I said to Hal
when he mentioned the appointment to me. He laughed, but
wouldn’t volunteer any further information. I didn’t ask for any,
either. He has some sort of delightful surprise in store for me. I
know he has,” was Marjorie’s smilingly confident assertion.
Miss Susanna nodded smiling content of the happiness of the two
young people upon whom her affections were so firmly centered.
“There’s the bell.” She suddenly held up a hand in a listening
attitude. “Now who can that be? Not callers, I hope. If it should be, I
shall receive them just as I am; pinafore, dusty hands, and all.”
“It’s Miss Leslie, Miss Susanna.” Jonas had appeared in the open
doorway of the library.
“Oh! What a relief! Ask her to come in here, Jonas.” Miss Hamilton
had bobbed up from the chair at sound of the bell. She dropped into
it again, with a thankful sigh.
“Where have you been keeping yourself, Leslie?” Sight of Leslie
Cairns in the doorway, looking her best in a smart ecru ensemble
and ultra-trim little felt hat, brought Miss Susanna to her feet again,
and hurrying across the room to greet her welcome caller.
“Yes! where have you been, elusive person?” Marjorie hastily shoved
a book, held in her right hand, back into place on a shelf and came
forward, dust cloth cheerfully waving a greeting to the visitor. “Twice
I’ve ’phoned you. ‘Out’ was the answer Annie gave me both times.
Then I wrote you a note, demanding your presence at Travelers’ Inn
at dinner tomorrow evening. I ’phoned Leila, asking her and Vera to
come, too. They can’t come because the Bertramites are
entertaining them at Baretti’s. They’ll be back at the Hall, though, by
seven-thirty, for the Bertramites have to study. Leila said, why not
foregather in Vera’s and her room for the evening. Now you see
what it’s all about. My note to you was a sketchy scrawl. I wrote it in
a hurry. Perhaps you haven’t received it yet.” Marjorie glanced
inquiringly at Leslie.
“Yes; I received it in the morning mail. I was anxious to see you, and
Miss Susanna, so I took a run over here instead of telephoning. I
had an idea you were still busy with the library job. It looks great.”
Leslie’s eyes roved approvingly over the beautiful old room with its
wealth of books from many lands.
“This is the last case, and I have only two more shelves to do.
Please tell Leslie about it, Goldendede, while I work very hard to
finish it.” Marjorie energetically resumed work, making herself a
mental promise to spend a day soon in the library in a leisurely
exploration of the treasures of the quaint old bookcase.
Presently coming to the bottom shelf, she sat down upon the thick
velvet rug, reaching mechanically for the first book at the left end of
the shelf. It was, she saw, a copy of the dissertations of Epictitus,
bound in green morocco, the soft fine leather worn by constant use.
She smiled. Epictitus had been Brooke Hamilton’s favorite
philosopher, so Miss Susanna had told her. She wiped away the dust
very gently from the priceless volume, then opened it, about to give
the yellowed leaves a mild shake.
To her surprise a considerably smaller, black, cloth-bound book
dropped from among the leaves of the Epictitus into her lap. It was
a thin little book, not more than six inches long and three inches
wide. About an inch from the top of the cover a white label had been
pasted that bore the writing of the departed master of the Arms.
“Brooke Hamilton,” she read, “Personal Notes.”
Marjorie’s heart began a sudden joyful throbbing. Could the little
black book be the particular, important notebook of which Miss
Susanna had regretfully spoken as lost at the time when she had
turned over to Marjorie the material for her distinguished great-
uncle’s biography?
With a joyful little cry Marjorie was on her feet, and holding out the
little black book to Miss Hamilton.
“What wonderful thing have you found in the old case, child?” Miss
Susanna interrupted her conversation with Leslie to peer tolerantly
through her glasses at Marjorie.
“Look at it, Goldendede,” Marjorie excitedly thrust the notebook into
the old lady’s hands. “It’s a notebook. Mr. Brooke’s own notebook;
the one that you thought was lost. I’m sure of it.”
 CHAPTER XV

BROOKE HAMILTON’S STAUNCHEST ADVOCATE

“I believe you are right, Marjorie.” Miss Susanna’s hands were

trembling slightly as she opened the notebook and read aloud the
first entry. “‘Thought of a new motto today. “Her ways led upward to
the stars.” Note: This motto should be particularly applicable to the
“one” whom I hope may rise, a future guiding light to Hamilton
College.’”
“Why—why—that’s my motto.” Marjorie was looking her utter
amazement. “I mean—” Sudden confusion deepened the pink in her
cheeks to rose. “It’s the one you selected for me for citation,
Goldendede,” she added in embarrassed explanation.
“It’s the one that suited you best, so don’t feel backward about
coming forward and saying so,” Leslie assured with her slow smile.
“Of course it suited her,” chimed in Miss Susanna. “You know, Leslie,
I’ve always said that Marjorie typified Uncle Brooke’s ideal of
girlhood.”
“Wouldn’t you like to read us some more notes, Goldendede?”
Marjorie asked persuasively.
“And thus take the subject off your very retiring self,” the old lady
supplemented pithily. “Very good, my dear.” Miss Hamilton turned
the first leaf and read out to her two avid listeners, “‘Must have
Jenkins retake my foot measurements. Last pair of boots he made
me are a fraction too narrow. Don’t forget to do this. Important.’”
A ripple of laughter greeted this entry.
“From the sublime to the vexatious problems of everyday life,”
commented Miss Susanna. She continued to read aloud the
annotations of her famous kinsman. Short, and to the point, they
revealed clearly the character of Brooke Hamilton—philosopher,
sage, philanthropist, and lastly, unassuming country gentleman.
“This must be the book Uncle Brooke lost not more than a year
before his death. He was greatly annoyed by the loss, and used to
hunt for it by the hour. Many of the annotations contained dates
which he could not remember, offhand. And to think that it’s been
tucked away all these years in the Epictitus! Strange he didn’t find it
again soon after he had lost it.” Miss Hamilton knitted thoughtful
brows. “Ah, now I recall something that may have been the very
reason he didn’t. A friend gave him a very fine copy of Epictitus on
his birthday. He placed the new copy on his desk, in his study. It was
in a much larger print than the other, and his eyes had begun to fail
him considerably then.”
Miss Susanna turned leaf upon leaf of the notebook, reading aloud
to her interested audience of two as she turned them. “There, I
knew I was right about that.” She looked up triumphantly from the
book, then read, “‘Have decided to offer the fifty-thousand
conditional gift to Hamilton through the medium of “the one who
may arise” in my college. I shall ask Norris to handle the matter for
me. I can rely upon him for integrity, and at the same time be of
financial service to him since he is hard put at present in his law
business. I shall go to his office to talk things over with him
tomorrow.’”
“This little book is a precious find to me, girls.” Miss Hamilton’s
hands were trembling with the excitement of what she had just
read. “Uncle Brooke had sometimes spoken vaguely to me of some
such plan he had in mind for the college, but I never knew whether,
or no, he had put it into execution. This annotation tells me that he
must have done so. Once he had put his hand to the plow, he never
turned back.”
The abstracted light in the old lady’s eyes spelled her absorbed
listeners to silence. They continued to watch her as she turned the
next leaf, waiting to hear more from her at will. The time-yellowed
leaves of the note book continued to turn under her small fingers.
She was evidently in search of further data concerning her kinsman’s
avowed project.
“Ah; here it is!” she exclaimed. “‘Saw Norris last Tuesday. Have
completed arrangements with him for the “Brooke Hamilton Honor
Fund.” For particulars and necessary accompanying papers, see
secret drawer.’”
“The secret drawer!” Marjorie cried. “It is in Mr. Brooke’s study desk,
isn’t it? Didn’t you say once to me that there was a secret drawer in
the desk?”
“Yes,” An oddly puzzled frown had sprung between Miss Hamilton’s
brows. “I don’t understand what Uncle Brooke meant. There is
nothing in the secret drawer in his study desk. I know that positively
because Jonas and I examined it quite a long time after Uncle’s
death. Jonas knew how to open it. I hadn’t known until he showed
me. There were a few letters in it then, which I turned over to you,
Marjorie, together with other material for the biography. None of
those letters related to either this man Norris, or the honor fund.
Please ring for Jonas, Leslie. He may know of another secret drawer
here. I surely do not.” Miss Susanna looked nonplussed.
“Who is, or, more likely was, the man Norris to whom he intrusted
the matter?” Leslie asked in her keen fashion. “If living, he would be
a very old man now.”
“I don’t know who he is, or was, as the case may he,” Miss Hamilton
replied, a note of distress in her answer. “According to Uncle
Brooke’s notes he is, or was, a lawyer. I know of no lawyer, however,
by the name of Norris, who was practicing law in the town of
Hamilton at that time.” She shook a puzzled head.
Jonas just then appearing in the library doorway, Miss Hamilton
turned eagerly to him, “Jonas, do you know of another secret drawer
here at the Arms besides the one in Uncle Brooke’s study desk?”
Jonas came forward without answering the question, his white
brows contracted in an evident effort at recollection.
“I don’t know where there is another secret drawer at the Arms,” he
said slowly, “but it seems to me I once heard Mr. Brooke speak of
one. I can’t think now, when, or why, he spoke about it. Maybe it’ll
come back to me after a while. I only think that he did speak of it to
me,” the old houseman ended with certainty.
“Marjorie found Uncle Brooke’s notebook; the one he lost, and
worried about losing.” Miss Hamilton held up the little black book,
relating to Jonas in an excited voice the circumstances of the finding
and the important information it contained concerning the “Honor
Fund.”
Jonas’s fine old features registered marked surprise. “He talked to
me about that honor fund, different times,” he said, an excited note
in his own voice. “He must have put his idea through, or he wouldn’t
have written that in the notebook.”
“Do you recall a lawyer in Hamilton by the name of Norris, Jonas?”
Miss Susanna had fixed hopeful eyes on Jonas.
“No,” Jonas answered after due deliberation. “I never heard Mr.
Brooke mention any such man, either. He must have lived there,
though, or in some near-by town. Mr. Brooke said in the note you
just read me that he was going to this man Norris’s office the next
day to see him.”
“Yes,” the old lady nodded, “I wish you to go to Hamilton town this
afternoon, Jonas, and see John Saxe. He knows everybody in the
town and around it. Ask him to look up this man Norris, if he can, as
soon as possible. It was his business to write me concerning this
trust directly after Uncle Brooke’s death. Possibly he thought I knew
the situation regarding it. Nevertheless, he should have
communicated with me, at any rate. He must have been living then.
If he had died before Uncle Brooke died Uncle would have made a
new arrangement with another lawyer about the fund.”
“Perhaps he may have done so, and any data which might relate to
the change of lawyers is in the secret drawer, too,” Marjorie
suggested.
“And we haven’t the remotest idea of where that mysterious secret
drawer may be!” Miss Susanna’s small hands went up in a despairing
gesture.
“Some Chinese puzzle,” Leslie commented.
“Maybe the secret drawer is somewhere in the Chinese room,” came
as a sudden inspiration from Marjorie, prompted by Leslie’s mention
of the word “Chinese.”
“It may be there.” Miss Hamilton cast a half startled glance at her
companions. “The room has a number of odd Oriental stands and
cabinets, any one of them might easily contain a secret drawer. To
find it, though!” Up went her hands again. “A needle-in-the-haystack
search, I’m afraid. I know less about the Chinese room than any
other room in the house. Jonas is far more familiar with it than I.
You’ll have to be chief hunter, there, Jonas.”
“I guess I will.” Jonas looked pleased at being thus appointed to the
search.
“One thing is certain. The secret drawer must be found. It is
somewhere in this house which narrows down the area to be
searched to the few rooms Uncle Brooke continually used,—his
bedroom, his study, the Chinese room and the library. Of the four, I
should say the library is the least likely to contain it. The only piece
of furniture in here that might contain it is the library table. I doubt
the possibility of there being a secret drawer in it.”
Miss Susanna rose, went over to the massive, claw-legged
mahogany table, and began a slow prowl about it, her sharp eyes
taking in its every detail. Jonas had already begun the search,
tapping the sides of the table as he peered along the carvings of
them for what might prove to be a cunningly concealed spring. He
opened the drawers of the table, subjecting the inside of them to
the same careful examination.
“There’s no secret drawer in this table,” was his opinion, spoken at
the end of his methodical investigation.
“I’m satisfied, too, there isn’t,” agreed the mistress of the Arms.
“Tomorrow, Jonas, we will tackle the study. There may be another
secret drawer in the study desk besides the one of which we know.
This afternoon I want you to go to Hamilton and see what you can
learn regarding Lawyer Norris. If we should be lucky enough to find
the secret drawer within the next few days it won’t be necessary to
start an investigation, regarding the fifty thousand dollars involved in
this affair. The one note plainly states Uncle Brooke’s intention of
offering a fifty thousand dollar honorarium to Hamilton College
under certain conditions, laid down by him. The note of later date
states that he completed some sort of arrangement for it with
Lawyer Norris. As a trust fund the fifty thousand would have,
probably, been deposited in bank at once by Norris. Uncle Brooke
used the Hamilton Trust largely, although he was a depositor in
several New York City banks. If he gave his check for the honor fund
to Norris, together with instructions to him to deposit the check, it
may be the Hamilton Bank was used for the transaction. In such
case the bank should have the record of the transaction. If so, why
was I not notified of it soon after Uncle Brooke’s death?” Miss
Susanna’s question was asked with hurt belligerence.
“An arrangement entire separate from your kinsman’s other financial
affairs may have been made by him with Norris,” Leslie hazarded.
“His notes state his confidence in Norris. No doubt then he made the
check out to Norris. Of course he might have given him bonds
instead.”
“He had no bonds at the time he sent for Norris. His large fortune
was almost all in cash or in real estate. His father left him a great
deal of land, in and about Hamilton, and Hamilton Estates. I’d prefer
not to call the Hamilton Trust into the matter, though we may find it
necessary in the long run to do so.”
“Surely, if the Hamilton Bank had been asked to handle the check
you would have heard something about the matter, either directly, or
indirectly, during all the years you have lived at the Arms,” was
Leslie’s further opinion.
“I’m inclined to that view of it, too. I doubt if the Hamilton Bank is in
any way concerned in this Norris business.”
“Why not let my father investigate for you?” proposed Leslie. “He’s
coming to Hamilton to see me for a day or two, soon after he lands.
If, by that time, you haven’t found the secret drawer, then please let
my father help you in the matter, Miss Susanna,” Leslie earnestly
petitioned.
“Peter? I never once thought of him!” Miss Susanna exclaimed,
brightening visibly. “He’s the very man I need to help me. I should
be eternally grateful to him, if he would.”
“He will,” Leslie promised.
“There’s more to this than appears on the surface.” Miss Hamilton’s
lips set themselves in severe line. “Granted we find the secret
drawer, the finding of the data relating to the honor fund may only
serve to prove treachery to his trust on Lawyer Norris’s part. As heir
to my uncle’s fortune and estate, Hamilton Arms, he at least owed it
to me to inform me of the trust Uncle Brooke had reposed in him.”
“Possibly he was under the impression that you knew of the fifty-
thousand dollar fund through your uncle, and had been instructed by
Mr. Brooke to assume the responsibility of choosing ‘the one’ in the
event of his death,” Marjorie made meditative suggestion. “In such
case, he might wait for you to communicate with him regarding it.”
“I’ll admit such a contingency,” the old lady conceded rather
reluctantly. “We’re all at sea in the matter, it seems. Either Norris, or
else the secret drawer, must be found; both preferably.”
“This much seems certain, Lawyer Norris was not commissioned by
Mr. Brooke to choose ‘the one’ in the event of Mr. Brooke’s decease,”
Marjorie said.
“I’m not so sure of that.” Miss Susanna showed inclination toward
distrust of the lawyer. “Uncle Brooke never did things by halves. You
must remember, this particular transaction was made less than two
years before his death. He was then over eighty years old. He knew
his end was near. He had often said as much to me. I believe he
would have appointed me to choose ‘the one’; not the man Norris. I
knew Uncle; his hopes, dreams; ideals, and he knew that I knew
them. I can’t understand why he did not confide in me at the time
he formulated a definite plan.” Her voice trembled a trifle on the last
words, the manifestation of a hurt spirit.
“I’ve no doubt but that the lost papers may hold an explanation of
that,” Marjorie advanced comfortingly, “and they’re tucked away
somewhere in this very house. Somehow, I have faith in Lawyer
Norris. Mr. Brooke would not have chosen him for such an important
responsibility if he hadn’t been sure of his truth and honor.
“Uncle Brooke’s staunchest advocate.” Miss Susanna drew Marjorie,
standing beside her, into the circle of an arm. “If neither the papers,
nor Lawyer Norris should be found, I could still carry out his wish.
The important point to be considered, after all, would not be the fifty
thousand dollars. The finding of ‘the one’ would be the real problem,
except—” her eyes came to rest with luminous tenderness upon the
lovely face bent seriously upon her,—“the one has already been
found. I found her for Uncle Brooke, long ago, not far from my
gates. She helped a very cranky old lady pick up an overturned
basket of plant pots, and showed her how beautiful girlhood might
be. Afterward, I came to know her better, not only as a friend, but
as an inspiration to Uncle Brooke’s college, giving her best to it
because of her appreciation of its founder. He chose the motto ‘Her
ways led upward toward the stars,’ as applicable to ‘the one.’
Without knowing it I chose the same motto as best suited to
Marjorie. It is almost as though I had received his direct approval of
my choice.”
 CHAPTER XVI

LESLIE’S QUEER PROBLEM

“And is it yourself, and no other? Is it not time you put in an

appearance at the Hall with many apologies for having forgotten
us?” Leila Harper ushered Marjorie into her room, her smiling lips in
decided apposition to her severe tone.
“It is myself, and, may I ask, who else might it be?” Marjorie
retorted as she and Leila enthusiastically wrung hands.
“Ask me nothing. I am that glad to see you, I have no flip answer at
my tongue’s end. We have all been busy, it would seem. I have been
at the Playhouse, with only the typewriter for company, pounding
out the parts for my opening play. Midget was invited to become co-
editor with Jane Everest on the ‘Campus Echo.’ Leslie is wrestling
with a queer problem of her own. You will hear more about it this
evening. And Hamilton Arms has held you a willing captive. We
should have come to see you in the evening, except that we have
had callers here every night for a week. The Bertramites dinner at
Baretti’s ended my social rush for a while. I shall begin to lead the
life of a hermit for the next three weeks.”
“You can’t. Miss Susanna had ordered yours and Vera’s presence at
the Arms at seven o’clock dinner tomorrow night. You are to bring
Kathie, Lucy, Lillian and Doris with you. You are to tear them away
from any engagements they may have made. Goldendede has
something important to tell the Travelers. Robin and Phil are coming,
too. I’ve already ’phoned them.”
“Now what has happened?” Leila cocked her head inquisitively to
one side. “This much I can guess. Leslie knows all about it. When I
asked her for news of the Arms last night, knowing that she had
lunched there yesterday, she had little to say except that the library
looked fine, and Miss Susanna was well. I saw mystery in the tail of
her eye. But I am so polite. I said nothing to her about it.” Leila gave
Marjorie a drolly hopeful glance.
“I tell you a tiny little bit, Leila Greatheart,” Marjorie conceded
indulgently. “Something happened yesterday at the Arms that was in
the nature of an astonishing surprise. Leslie was there when it
happened. Goldendede wishes the girls she has invited to dinner to
hear about it. She intends to tell them.”
Marjorie felt the color rising in her cheeks. Her own surprise at the
finding of Brooke Hamilton’s notebook had been secondary to that of
Miss Hamilton’s avowed choice of “the one.” To cover her sudden
feeling of confusion she asked hastily, “Where is Vera?”
“Now you are asking me something. Midget is at the freshie frolic.
It’s tonight, you know, and seems a very clannish affair. There were
more than enough sophs to go round. No juniors or seniors were
invited this year to help on escort duty. Midget was asked to be one
of the three judges of the beauty contest. She, Doris and Calista
Wilmot are the fateful trio. The contest was to be held at nine-thirty,
so Midget will be here before you go.”
“There’s a freshie at the dormitory who ought to win it,” Marjorie
declared with enthusiasm. “I don’t know her name, but I do know
she is a beauty. I happened to be over at the dorm the day she
arrived. She actually took my breath. She has violet blue eyes and
curly black auburn hair, and the sweetest face, with a skin like a
roseleaf.”
“I’ve met her. Her name is Carol Burke. The dorms are hoping she’ll
win the contest. They say, though, that she will be awfully upset, if
she should win it; that she’s very shy, and retiring, with but little idea
of her own good looks. That is the way you were, Beauty, when I
dragged you into the first contest.” Leila flashed Marjorie one of her
inimitable smiles.
“I remember I felt awfully cross with you because of it,” Marjorie
reminded. “Now, in my settled old age, I can afford to smile over it.”
“But if you were to walk into the gym tonight in your violet dress you
would win it again,” Leila predicted.
“My violet dress!” Marjorie hurried away from the subject of the
contest. “It seems strange, Leila, but it looks as lovely as ever; not a
bit old style. Captain shortened it and took out the sleeves, and now
it’s a dream. How are the Bertramites? I must have them over at the
Rest soon to dinner.”
“They are—” Two deliberate, successive knocks on the door sent
Leila scurrying to open it for Leslie, who had dropped Marjorie at the
Hall and had then gone on to the garage with her roadster.
“Come on into my room for a while,” Leslie invited. “Marjorie hasn’t
seen Fifteen since it was done over. Jewel Marie is gaily fox-trotting
at the frolic, thank goodness, and we can discuss the affairs of the
universe in peace. Leave a scrawl on the table for Vera when she
comes in, Leila. Have you seen Miss Remson yet?” she turned to
Marjorie.
“Yes; only for a moment. She had to go to town on unexpected
business. I’ll run over tomorrow to see her. Goldendede wants her to
be at the dinner tomorrow night.”
“’Tis done. ‘Midget, Attention! Come to Fifteen. No knocking
necessary,’” Leila read out, then gave the penned message a
vigorous drying fluttering before running it through with a long,
black-headed pin, and sticking the pin into the middle of the study
table.
Leslie closed the door of Fifteen behind her comrades to the tune of
admiring exclamation from Marjorie.
“Can this celostrous cozy corner be old Fifteen?” Marjorie’s face
glowed appreciation of Leslie’s artistry.
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