Showing papers in "International Journal of Information Systems and Supply Chain Management in 2009"

Supply Chain Risk Management: Literature Review and Future Research

Abstract: Supply chain risk management has increasingly becoming a more popular research area recently. Various papers, with different focus and approaches, have been published since a few years ago. This paper aims to survey supply chain risk management (SCRM) literature. Paper published in relevant journals from 2000 to 2007 are analysed and classified into five categories: conceptual, descriptive, empirical, exploratory cross-sectional, and exploratory longitudinal. We also looked at the papers in terms of the types of risks, the unit of analysis, the industry sectors, and the risk management process or strategies addressed. The literature review will provide the basis for outlining future research opportunities in this field.

Information sharing and supply chain performance: Understanding complexity, compatibility, and processing

Abstract: Practically all supply chains operate under conditions of uncertainty. To mitigate this uncertainty and increase performance, organizations within chains exchange information to achieve operational cohesion. However, as some researchers have noted, some supply chains benefit more from increased levels of information sharing than others (e.g. Cachon & Fisher, 2000). To assist in explaining the performance differences experienced by supply chains engaged in information-sharing activities, we introduce a new perspective of information sharing within supply chains based on organizational information processing theory (Galbraith, 1973). More specifically, our work and derived conceptual model posit that individual supply chains may be examined as single information processors and that their characteristics can induce complexities in the shared information which subsequently influence how supply chains process this information. Furthermore, the degree to which supply-chain members’ information systems are compatible with each other is posited to also play a significant role in information-processing capabilities.

An Approach of Decision-Making Support Based on Collaborative Agents for Unexpected Rush Orders Management

Abstract: Decisions at different levels of the supply chain can no longer be considered independently, since they may influence profitability throughout the supply chain. This paper focuses on the interest of multi-agent paradigm for the collaborative coordination in global distribution supply chain. Multi-agent computational environments are suitable for a broad class of coordination and negotiation issues involving multiple autonomous or semiautonomous problem solving contexts. An agent-based distributed architecture is proposed for better management of rush unexpected orders. This paper proposes a first architecture validated by a real and industrial case.

Measuring the Impact of Supplier-Customer Information Sharing on Production Scheduling

Abstract: Nowadays, implementing collaboration strategies between the members of the supply chain has been an important research topic to obtain a more reactive and flexible supply chain in the highly competitive markets. However, few studies have been done on the impact of such collaboration strategies at one of the lower short-term decision levels: production scheduling. This article is devoted to the study of information sharing between the members of a supply chain in a dynamic context. We consider a typical make-to-order direct sell supply chain without finished products inventory, similar to the one implemented by Internet PC sellers. We compare various scheduling algorithms implemented to study different scenarios of information sharing among the members of the chain. We have considered scenarios where no information is shared and scenarios where some or all information is shared. A simulation study is developed in order to get some insights about the impact of information sharing on the performance of the chain. Our results suggest improvement in the performance that shows the importance of collaboration and information sharing between the members of the chain.

Genetic Algorithm to Solve Multi-Period, Multi-Product, Bi-Echelon Supply Chain Network Design Problem

Abstract: In many multi-stage manufacturing supply chains, transportation related costs are a significant portion of final product costs. It is often crucial for successful decision making approaches in multi-stage manufacturing supply chains to explicitly account for non-linear transportation costs. In this article, we have explored this problem by considering a Two-Stage Production-Transportation (TSPT). A two-stage supply chain that faces a deterministic stream of external demands for a single product is considered. A finite supply of raw materials, and finite production at stage one has been assumed. Items are manufactured at stage one and transported to stage two, where the storage capacity of the warehouses is limited. Packaging is completed at stage two (that is, value is added to each item, but no new items are created), and the finished goods inventories are stored which is used to meet the final demand of customers. During each period, the optimized production levels in stage one, as well as transportation levels between stage one and stage two and routing structure from the production plant to warehouses and then to customers, must be determined. The authors consider “different cost structures,†for both manufacturing and transportation. This TSPT model with capacity constraint at both stages is optimized using Genetic Algorithms (GA) and the results obtained are compared with the results of other optimization techniques of complete enumeration, LINDO, and CPLEX.

Coordination of a Supply Chain with Demand Stimulation and Random Demand Disruption

Abstract: This article develops a dynamic game model of a supply chain consisting of one manufacturer and one retailer to study the coordination mechanism and the effect of demand disruption on the coordination mechanism, where the market demand is sensitive to retail price and service. We assume that the supplier and the retailer only know the distribution of the disrupted amount after the demand disruption and they share the quantity deviation costs. We find that an all-unit wholesale quantity discount-subsidy mechanism can coordinate the supply chain. We give the coordination mechanism of the supply chain after the demand disruption and find that the demand disruption remarkably influences the price-service level decisions of the centralized supply chain and the coordination mechanism of the decentralized supply chain. In particular, the expected quantity differs from the planned quantity although the penalty costs prevent from this deviation.

Suppliers Selection in Volume Discount Environments in the Presence of Both Cardinal and Ordinal Data

Abstract: With the widespread use of manufacturing philosophies such as Just-In-Time (JIT), emphasis has shifted to the simultaneous consideration of cardinal and ordinal data in supplier selection process. Traditionally, many optimization models of supplier selection assume that the average prices of related expenditures are constant. This is far beyond the real situation. In fact, suppliers usually offer quantity discounts to encourage the buyers to order more. To select the best suppliers in volume discount environments in the presence of both cardinal and ordinal data, this paper proposes an innovative approach. A numerical example demonstrates the application of the proposed method.

A Stochastic Model for Improving Information Security in Supply Chain Systems

Abstract: This article presents a probabilistic security model for supply chain management systems (SCM) in which the basic goals of security (including confidentiality, integrity, availability and accountability, CIAA) are modeled and analyzed. Consequently, the weak points in system security are identified. A stochastic model using measurable values to describe the information system security of a SCM is introduced. Information security is a crucial and integral part of the network of supply chains. Each chain or driver requires a different security level according to the services it contributes to the overall SCM system. Different probabilistic weights are assigned to the four goals CIAA of security depending on the SCM driver’s mission. A Semi-Markov chain model is used to describe the probabilistic nature of different security levels for each driver in the system. A comparison of the steady-state security for a multi-driver model with different levels of attack is performed, and the results analyzed. Enhanced supply chain security could be achieved by identifying the effects of attacks on the security goals of an organization. The use of this model helps to identify weak points in supply chain system security, and offers hints on how to strengthen them. The model is tested by considering intrusion scenarios representing different levels of attack on the SCM system. An analysis of the results is performed using an interactive application.

Analyzing the Impact of Coordinated Decisions within a Three-Echelon Supply Chain

Abstract: Supply chain performance is highly influenced by the coordination level between its members, which needs information sharing. In this article we consider a three-echelon direct sell supply chain model and focus on the problem of coordinated decision-making between its members. Our contribution is a first approach that measures the impact of the degree of coordination between the members. Demand behavior is modeled using a geometric Brownian process. Simulation models are run in order to analyze various cooperation scenarios. Our results show a direct relation between the degree of coordination within the supply chain and the total system cost. Although this result is intuitive, our simulations allowed us to quantify such a relation and in which measure these costs are whether or not associated to imperfect coordination

A Relative Comparison of Leading Supply Chain Management Software Packages

Abstract: Supply Chain Management (SCM) has proven to be an effective tool that aids companies in the development of competitive advantages. SCM Systems are relied on to manage warehouses, transportation, trade logistics and various other issues concerning the coordinated movement of products and services from suppliers to customers. Although in today’s fast paced business environment, numerous supply chain solution tools are readily available to companies, choosing the right SCM software is not an easy task. The complexity of SCM systems creates a multifaceted issue when selecting the right software, particularly in light of the speed at which technology evolves. In this paper, we use the approach of Analytic Hierarchy Process (AHP) to determine which SCM software best meets the needs of a company. The AHP approach outlined in this paper can be easily transferred to the comparison of other SCM software packages.

A Stochastic Perturbation algorithm for inventory optimization in supply chains

Abstract: In recent years, simulation optimization has attracted a great deal of attention because simulation can model the real systems in fidelity and capture complex dynamics. Among numerous simulation optimization algorithms, Simultaneous Perturbation Stochastic Approximation (SPSA) algorithm is an attractive approach because of its simplicity and efficiency. Although SPSA has been applied in several problems, it does not converge for some. This research proposes Augmented Simultaneous Perturbation Stochastic Approximation (ASPSA) algorithm in which SPSA is augmented to include research, ordinal optimization, non-uniform gain, and line search. Performances of ASPSA are tested on complex discrete supply chain inventory optimization problems. The tests results show that ASPSA not only achieves speed up, but also improves solution quality and converges faster than SPSA. Experiments also show that ASPSA is comparable to Genetic Algorithms in solution quality (6% to 15% worse) but is much more efficient computationally (over 12x faster).

Managing Risk in Supply Chain: A Model for the Classification of Potential Threats to Efficient Supply Chain Operation

Abstract: This article resulted from our study of 3 manufacturing centric supply chain operations in Singapore through 4 iterations of Action Research (AR) guided by Gowin’s V (Rachan, 2007). Although, there is substantial volume of literature on the topic of Supply Chain Management, it came to our attention during the literature review stage of research process, that major concentration of literature was in SCM design and optimization or supply chain performance benchmarking. Almost all of the literature on Risk issues was found to be focused on Security matters. This study was conducted to identify the main process flows in a Supply Chain. Key characteristics were derived from these process flows. From these key characteristics of the process flow, constraints were identified as a “class†to categorize all potential threats and problems. Thus the potential threats and problems classified are actionable and within the span of control, of the member supply chain network entities. This Model for classification will enable an integrated approach to (i) problem structuring, (ii) problem solving and (iii) learning on potential threats and problem to efficient supply chain operations. In today’s intense competitive market environment, efficient supply chain operations make the difference between profit and growth vs. Loss and closure.

Supply Chain Coordination by Contracts with Inventory Holding Cost Share

Abstract: In this document it is analyzed the importance of contracts for coordination between two companies in a supply chain. In the studied situation, one company, or supplier, supplies one product to the other company, who is a retailer. The companies are going to coordinate by two types of decisions: economic (concerning prices fixed on a contract), and physical exchange (concerning the inventory to be held). Two types of contracts will be presented: one contract with a simple pricing scheme and two contracts with inventory holding cost shared among the companies of the supply chain. The objective is to show that contracts with inventory holding cost share allow the two companies to efficiently coordinate the chain they form.

Trust-Based Information Risk Management in a Supply Chain Network

Abstract: Information risk management is crucial for an organization operating in an increasingly integrated and intensively communicated environment to mitigate risks and ensure core business functions. Given the open and dynamic nature of a supply chain network, information risk management is challenging and various factors must be considered. This article introduces a trust-based approach to facilitate supply chain participants to perform effective risk management. The major components of the proposed framework include supply chain member trust evaluation, data classification, and trust-based decision making. The major purpose of the framework is to control and mitigate information risks that a participant faces in a supply chain network (e.g., risks to information confidentiality, privacy, and integrity). We apply the principle of transitive trust for trust evaluation and use several decision tools for risk analysis and mitigation.

A Mathematical Model for Tactical Operations Planning for Response-Base Supply Chains

Abstract: This article explores the issue of lead-time in response-based supply chains. From a tactical viewpoint of response-based supply chains, the processing time for each stage is assumed to be a random variable since different practices exist in the selection pool of each stage under a specific lead-time requirement. The decision-maker must select suitable practices of operations for each stage to ensure that the lead time meets a desired requirement. The relationship and the trade-off between the operating costs for the selected practices and the inventory holding cost of safety stock that is in turn affected by the lead-time are discussed. A mathematical model for planning the operations from a manufacturer viewpoint is proposed. The variation in practical situation for the proposed model is also addressed. A hypothetic example is provided to illustrate the effectiveness of the proposed model. With reference to the computational results, the effect of several parameters on the model’s optimal solutions was discussed.

A Coordinated Revenue-Sharing Contract for a Two-Stage Supply Chain with Linear Stepwise Inventory Holding Costs

Abstract: In this paper, the authors focus on examining the coordination mechanisms for a two-stage supply chain comprising one supplier and one retailer. The authors consider such a channel relationship that the transaction quantity between the two members is sensitive to the supplier’s inventory level and that the supplier’s unit inventory holding cost has a linear stepwise structure. They devise a coordinated revenue-sharing contract with bargaining so that each party’s respective profit is better than that resulted from the simple sequential optimization mechanism. The key contract parameters, namely the supplier’s inventory level and the retailer’s revenue-sharing fraction, are obtained and analyzed. Numerical illustrations of the contracts are given and shed lights on how the supply chain should coordinate in order to gain better performance.

Collaborative supply chain management

Abstract: ment of new technologies have a deep impact on the development and the positioning of companies on international marketplaces. In addition, customers are more demanding in term of quality, lead time and order fulfilment. Firms must anticipate customers’ requests and adapt to market changes. This quest for flexibility and reactivity affects the conception and the management of firms and more generally their logistic systems and contributes to the development of partnership relations, to the emergence of mergers or strategic alliances between companies. As a result, a firm can no longer be considered as an isolated entity but as a component of a wider supply network. The purpose of this special issue on Collaborative Supply Chain Management was to publish selected research articles from academicians and practitioners that examine the aspects related with internal and external logistics and operations management within a collaborative context. As a result, a total of 13 articles were initially submitted. After the double-blind review process, 5 articles were finally accepted for publication on this special issue. Such articles are based on empirical, analytical and/or conceptual research approaches and display an interesting picture of the research currently conducted about collaboration and coordination issues within the supply chain from different author’s countries and affiliations. Guest editorial Preface Collaborative supply Chain Management

Optimal Solutions for a Multi-Product, Multi-Echelon Production and Replenishment System

Abstract: The effective coordination is a key element in the success of many cooperative supply chains. All production, distribution and supply must be adequately synchronized in order to satisfy the customer needs and at the same time optimizing the operational costs. This article presents a multi-product, multi-echelon inventory system which comprises one manufacturer, a number of distribution centers and a number of retailers which are dependent of such distribution centers. The coordination and collaboration is achieved through a carefully designed replenishment policy. The near-optimal order quantities for each of the supply chain agents are calculated with a mathematical model in which the integrality constraints are relaxed. A number of instances were generated and tested. The results show the validity of the proposed approach.

Recognizing RFID as a Disruptive Technology

Abstract: Recognizing radio frequency identification (RFID) as a disruptive technology unearths interesting facts that could help managers decide how to approach their RFID projects. RFID for the supply chain (RFID/SC) has attracted global attention and the adoption pace is quickening. It has characteristics resembling that of a disruptive technology. To better understand RFID/SC, we use Christensen’s principles of disruptive technology and the motivation/ability framework to illustrate the uniqueness of RFID/SC. The principles provide valuable information for managers steering their RFID projects toward success. We provide cases studies as vignettes to support the applications of the theories. The objectives of this paper are: (1) to equip managers with the knowledge of disruptive technology in the context of RFID/SC, (2) to highlight the need to assess an organization’s motivation and ability for adopting RFID/SC, and (3) to propose further research areas in RFID/SC in the IS field.Keywords: disruptive technology; feasibility assessment; information system implementation; organi

Multi-Agent Architecture for Developing Cooperative E-Business Applications

Abstract: This article describes a multi-agent approach that provides solutions to the problems raised during the development of cooperative e-business applications. This approach is organized in the form of cooperative application groups representing the different parts of a company. Agent coordinators orchestrate the cooperative work of these groups. The most requested functionalities inside the company and those offered to the external world can be exported as Web Services. These Web Services are described with DAML-based Web Service ontology (OWL-S) and managed with an intermediate agent called Web Service Finder Agent. The proposed solution provides a new vision of the cooperation context where the companies and their partners share knowledge and offer functionalities as agents and Web Services.

Optimal Pricing Strategies for an Inventory System with Perishable Items and Waiting Time Dependent Order Cancellations

Abstract: Although many researchers have studied inventory models for perishable items, the situation of advance sales, spot sales and order cancellations have not been addressed so far. However, this problem arises in a variety of industries including the sales of fashion garments, flight seats and hotel rooms. In this article, we deal with an inventory system in which sales cycle is divided into an advance sales period and a spot sales period. We consider order cancellation effect which depends on the waiting time of the customer orders. The goal is to determine the optimal order quantity and optimal prices in order to maximize the profit. We also show the concavity of the profit function using mathematical lemmas and theorem. Besides we develop a solution procedure which computes optimal policy effectively. Finally we present the results of numerical study for linear and exponential demand functions.

Production Lots as Determinant of Paper Production Lead Time Performance

Abstract: In this research work we are interested about connection between lead time performance, and production order size as well as in how many production lots this order was eventually produced. Based on the system dynamics simulation model, the authors got a priori assumption that production lots have in multiproduct environment better explanation power. Our empirical findings give support for this – number of production lots explain in production environment manufacturing lead time much better than production order size. Further support is gained from supply chain phases, which are analyzed similarly, but as surprise explanation power of production lots decreases, and seems to be significantly lower in more distant markets. It is interesting to note that currently used IT applications of analyzed global case company do not give real time snapshot regarding to the development of overall supply chain lead time.

Exploring the behaviour of a centralised supply chain at Draeger Safety UK

Abstract: This article presents analysis of the behaviour of a model of a centralised supply chain. The research was conducted within the manufacturing sector and involved the breathing equipment manufacturer Draeger Safety, UK. A simplified model of the Draeger Safety, UK centralised supply chain has been developed and validated. Simulation and analysis have been performed using System Dynamics, non-linear dynamics and control theory. The findings suggest that destructive oscillations of inventory could be generated by internal decision making practices. A management microworld has been developed allowing managers to experiment with different decision policies and learn how the supply chain performs.