Showing papers on "Supply chain published in 1994"

Logistics & Supply Chain Management

Abstract: Table of Contents The 4 new chapters will be worked into the structure where appropriate: exact order to be decided * Managing Supply Chain Relationships * Product Design in the Supply Chain * Matching Supply and Demand * Creating a Sustainable Supply Chain Chapter 1 : Logistics, the Supply Chain & Competitive Strategy Chapter 2 : Logistics & Customer Value Chapter 3 : Measuring Logistics Costs and Performance Chapter 4 : Creating the Responsive Supply Chain Chapter 5 : Strategic Lead-Time Management Chapter 6: The Synchronous Supply Chain Chapter 7 : Managing the Global Pipeline Chapter 8: Managing Risk in the Supply Chain Chapter 9: Overcoming the Barriers to Supply Chain Integration Chapter 10: Entering the Era of Network Competition

Logistics and Supply Chain Management: Strategies for Reducing Costs and Improving Services

Abstract: (1994). Logistics and Supply Chain Management: Strategies for Reducing Costs and Improving Services. Journal of the Operational Research Society: Vol. 45, No. 11, pp. 1341-1341.

New venture strategies: theory development with an empirical base

Abstract: The strategy focus of over 2500 new ventures across six different industries was examined to identify what dimensions coalesce into distinct configurations The supposition that traditional strategy typologies are inadequate to describe the breadth of differentiation exhibited among new ventures was supported Factor and cluster analysis revealed six generic new venture strategy archetypes that can be distinguished along two dimensions; scope of segmentation, and product vs marketing emphasis The extent to which the archetypes tend to dominate in different industries was found to vary according to the industry's position on the industry supply chain Strategies with a narrow scope of segmentation tended to prevail in industries near the end of the supply chain, whereas those that adopted a broad approach tended to predominate in industries near the beginning or middle of the supply chain

Supply Chain Redesign

Abstract: One criterion by which the relative importance of various business processes may be judged is their potential impact on relationships with external customers. Another criterion is the potential impact that re‐engineering the process might have on business results. It is suggested that on both of these counts “Supply Chain Redesign” should rank near the top of most enterprises' list of re‐engineering initiatives. The concepts of process efficiency and process effectiveness are investigated by reference to the supply chain redesign experiences of a number of major corporations. The conclusion is drawn that process‐oriented supply chain redesign can lead to levels of intra‐enterprise and inter‐enterprise operational efficiency and effectiveness which have previously been unobtainable even in leading edge companies.

Global Supply Chains: Factors Influencing Outsourcing of Logistics Functions

Abstract: Explores the attitude of shippers and service providers towards outsourcing of logistics functions performed within large multinational, manufacturing companies engaged in global trade and presents a model describing the factors which influence the outsourcing decisions. Indicates that five key factors influence the outsourcing decision: centrality of the logistics functions to the firm′s core competency; risk liability and control; cost/service tradeoffs in operations; information and communications systems; and market relationships. Discusses several drivers, involving product, process and network complexities, which govern these factors.

Strategic Purchasing and Supply Chain Management

Abstract: 1. Introduction / Part 1: Environmental Change and Strategic Requirements: Changes in environmental conditions and their impact on businesses Approaches to strategic management From corporate strategy to purchasing and supply chain management strategy The content of supply chain Management strategies. Part 2: The Implementation of Purchasing and Supply Chain Management Strategies: Strategic management of quality Strategic management of material flow Strategic management of costs and added value Strategic management of supplier relationships Strategic management of human resources in relation to the supply chain Strategic opportunities of information technology Conclusion.

Supply Chain Management in the Electronics Products Industry

Abstract: A number of strategies for reducing supply chain demand amplification and simultaneously improving customer service levels have been modelled and tested via dynamic simulation. To create an environment in which supply chain re‐design methodologies may be exploited, it is necessary to study the distribution of power and influence at individual echelons within the chain. Outlines current management practice in the electronics products industry and concludes by highlighting the steps needed to enhance total system dynamic performance. The likely benefits are estimated via dynamic simulation of the various phases of re‐engineering an international electronics products supply chain wherein huge improvements are predicted in the damping of upstream order patterns.

Partnership Sourcing: An Integrated Supply Chain Management Approach

Abstract: Real competitive advantages can be gained from rethinking approaches to relationships in the supply chain. The new requirement is to put mutual obligation relationships into place in each of the links in the supply chain, so that the relationship becomes a partnership. Partnership sourcing works because both parties have an interest in each others success. "Partnership Sourcing" should help the reader: achieve world class quality standards; cut lead times and increase flexibility in response to market fluctuations; cut costs and improve cash flow; improve planning through better long term relationships between customer and supplier; reduce "time to market" - the time lag between identifying a market and introducing a new service or product; compete more effectively with other supply chains in the marketplace.

The application of filter theory to the study of supply chain dynamics

Abstract: Recently, there has been a rebirth of interest in supply chain demand amplification, a trend accelerated by the availability of a wide range of simulation packages. However, although this approach provides some guidance on design improvements possible in a given situation, it rarely offers insight for the future. In the present paper the use of simple filter theory is proposed to help bridge this gap. The example chosen to illustrate the approach is a three-echelon system in which there are factory, distributor, and retailer activities. The results vividly confirm an optimal design previously obtained via a multi-attribute utility technique (MAUT) expert system. However, the knowledge gained via filter theory should improve yet further the effectiveness of the expert system. This is because the sequential steps to be followed when varying the echelon dynamics as part of the search procedure can be greatly improved. The paper concludes by showing how simulation results might be used to confirm the...

Foundations for Successful Continuous Replenishment Programs

Abstract: In the future, earnings ‐ perhaps even survival, will depend upon strong and enduring relationships between manufacturers and their customers. Continuous replenishment is rapidly emerging as a value‐added service that enhances the development of these relationships. For the most part, such partnerships have been engaged with positive expectations of reducing costs in the near term. However, in order to realize the real, mutual benefits of continuous replenishment, it is critical that both parties have a foundation of second business practices which will support this new way of doing business and its many and various effects upon the supply chain. This means establishing organizational alignments which facilitate a process, installing new or different technology and securing the support of senior management to champion the concept of supply chain management.

Modeling the Dynamics of Supply Chains

Abstract: It is estimated that, on average, 60-70% of the costs of manufactured goods come from raw materials and purchased components [Har92]. As industry moves toward an increasingly more global market economy in which companies focus more on the production of core highvalue-adding components, this gure can only increase. This in turn will further increase the interdependence between manufacturers and their suppliers when it comes to improving due date performance, reducing costs or increasing quality and will put a premium on the ability of managers to grasp the full complexity of the supply chain environment in which their companies operate. Current supply chain analysis techniques and tools often prove inadequate in this regard, due to modeling limitations (e.g. xed leadtimes, inability to account for nite capacities, steady state assumptions, omission of important costs), an inability to take advantage of opportunities provided by Electronic Data Interchange (EDI) technology and a lack of support for operationalizing recent manufacturing philosophies (e.g. \Lean Production",TQM and JIT). This paper reviews important research issues in supply chain management and presents initial work towards the development of decision support tools for analysis of supply chain dynamics. Our approach relies on the development of an extensible multi-agent simulation testbed in which a wide range of supply chain problems can be quickly and accurately modeled, and alternative solutions to these problems can be compared via simulation. We summarize initial results obtained with an early prototype that indicate some performance e ects of di erent information sharing protocols. 1 Objectives and Motivations To remain competitive, industrial organizations are continually faced with challenges to reduce product development time, improve product quality, and reduce production costs and leadtimes. Increasingly, these challenges cannot be e ectively met by isolated change to speci c organizational units, but instead depend critically on the relationships and interdependencies among di erent organizations (or organizational units). With the movement toward a global market economy, companies are increasingly inclined toward speci c, high-value-adding manufacturing niches. This, in turn, increasingly transforms the above challenges into problems of establishing and maintaining e cient material ows along product supply chains. The ongoing competitiveness of an organization is tied to the dynamics of the supply chain(s) in which it participates, This research was supported by the Advanced Research Projects Agency under contracts F30602-91-F-0016 and F30602-90-C-0119. and recognition of this fact is leading to considerable change in the way organizations interact with their supply chain partners. Broadly speaking, supply-chain management can be subdivided into three inter-related topics: 1. Supply Chain Con guration: Decisions here relate to determination of an optimal number of suppliers as well as the selection of speci c suppliers (internal or external) based on considerations such as quality, leadtimes, costs, reliability, expected learning curves, locations, capacities, earlier experiences, etc. 2. Buyer-Supplier Relations: These decisions have to do with assessing the merits of alternative contracts and agreements between buyers and suppliers. They include understanding tradeo s involved in setting up cost-sharing agreements, determining the length of contracts, agreeing to share di erent types of information (e.g. open-book audits of suppliers), or committing to buying a percentage of the supplier's capacity. 3. Buyer-Supplier Coordination: Here buyers and suppliers are concerned about identifying e cient coordination policies to maintain a smooth ow of materials and products through the supply chain, avoiding stockouts while keeping inventories to as low a level as possible. Decisions of interest at this level include the selection of proper inventory policies and associated reordering policies (how much to reorder and when) as well as evaluating the impact of di erent information exchange protocols. In this paper, we summarize ongoing work aimed at the development of an extensible modeling and simulation framework for analyzing supply chain management problems. Our objectives are two-fold: 1. First, we are interested in providing new insights into the nature of tradeo s in currently ill-understood aspects of supply chain coordination such as buyer-supplier information exchange, buyer-supplier contractual agreements and buyer-supplier decisions under dynamically changing supply chain relationships. Analyses conducted to date in each of these areas has either su ered in their relevance to practical industrial situations, due to the limiting assumptions that are necessary to construct tractable analytical models, or have been retroactive and limited in applicability, relying on post hoc trend analysis of speci c organizational entities. Our work, in contrast, seeks to construct and analyze models that capture the assumptions and dynamics of these decision tradeo s in actual organizational decision-making contexts, and to provide relevant, prescriptive advice in di erent decision-making circumstances. 2. More generally, we are interested in increasing the relevance of analysis results to practical decision-making contexts, and in providing practical decision-support tools to supply chain management decision-makers. In developing our modeling and simulation testbed, our goal is a modular framework for specifying models of arbitrary delity to a given application context; allowing analysis of decision tradeo s under assumptions that match the actual circumstances facing supply chain managers and their decision-making requirements. We expect, as a by product of investigating the above mentioned tradeo s, to produce an extensible library of model building blocks (e.g., supplier/buyer agents, reordering policies, contractual agreements, information exchange protocols) for subsequent adaptation and re-use. In the longer term, we envision this research leading to the development of practical decision support tools, directly accessible to supply chain managers and integrated with the EDI capabilities of industrial organizations. The balance of this paper is organized as follows. Section 2 brie y introduces concepts and issues in supply chain management and reviews existing research and approaches in this area. Section 3 summarizes the multi-agent modeling and simulation testbed we are developing. In Section 4, we present initial results obtained with an early prototype. Future work is discussed

Managing Operations Across the Supply Chain

Abstract: Part 1: Supply Chain: A Perspective for Operations Management Chapter 1: Introduction to Managing Operations Across the Supply Chain Chapter 2: Operations and Supply Chain Strategy Part 2: Foundations of Operations Management Chapter 3: Managing Processes and Capacity Chapter 3: Supplement: Process Mapping and Analysis Chapter 4: Product/Process Innovation Chapter 5: Manufacturing and Service Process Structures Chapter 6: Managing Quality Chapter 6: Supplement: Quality Improvement Tools Chapter 7: Managing Inventories Chapter 8: Lean Systems Part 3: Integrating Relationships Across the Supply Chain Chapter 9: Customer Service Management Chapter 10: Sourcing and Supply Management Chapter 11: Logistics Management Part 4: Planning for Integrated Operations Across the Supply Chain Chapter 12: Demand Planning: Forecasting and Demand Management Chapter 13: Sales and Operations Planning Chapter 14: Materials and Requirements Planning Part 5: Managing Change in Supply Chain Operations Chapter 15: Project Management Chapter 15: Supplement: Advanced Methods for Project Scheduling Chapter 16: Sustainable Operations Management - Preparing for the Future

New Trends in the Supply Environment

Abstract: Present‐day competitiveness has brought about a marked evolution in supply management, imposing on firms an increasingly close interaction with suppliers. The achievement of high‐level performances in terms of cost, quality and time to market appears ever more dependent on the quality and effectiveness of the supply network. This transformation modifies the traditional adversarial model of the buyer‐supplier relationship and fosters the reconfiguration and integrated management of the supply chain. At the same time, competitive dynamics and current global competing models encourage the extension of traditional sourcing areas. Analyses these evolutionary aspects of the current supply environment and examines the new role of the purchasing function.

The Realities of Quick Response in the Grocery Sector: : A Supplier Viewpoint

Abstract: Presents a supplier view of the realities of quick response supply chain partnershipping in the grocery sector. Discusses the factors which determine the level of stock held by manufacturers and retailers and the resulting conflicts which occur in reconciling policies pursued by both parties. Asks why manufacturers and retailers want quick response partnerships and what their objectives are.

Establishing a Framework for Effective Materials Logistics Management

Abstract: The “Law of Industrial Dynamics” is a well‐known phenomenon which leads to significant swings in demand as orders are passed down along a supply chain. Large fluctuations in demand result for the manufacturer leading to policies which counteract the objectives of materials logistics management which are to reduce inventories while maintaining strategic stocks, improve product quality, minimize the total cost of operations and procurement, ensure service levels to customers and minimize variance in material flow. A number of strategies have been advocated and applied which may be summarized as integrating the supply chain and adopting lean manufacturing techniques. Such strategies encompass three main factors, classified as technological (which may include adopting electronic data interchange), organizational (such as moving towards focused plants) and attitudinal (such as the adoption of Partnership Sourcing as a strategy). This paper provides a framework in which systems dynamics modeling, analysis and simulation aids in the decision making process to establish how best to achieve the materials logistics management objectives. Firstly, during the modeling and analysis phase, the supply chain champion is provided with insight as to the effectiveness of the current supply chain design to damp down order fluctuations. Secondly, on the basis of continuous improvement, simulation then allows him to re‐engineer the supply chain by asking “what if?” questions and assessing the relative benefits of various strategies against the financial and attitudinal costs of implementation.

Supplier‐Retailer Collaboration in European Grocery Distribution

Abstract: Describes a research project conducted throughout Europe, aiming to establish the extent of collaboration in the grocery supply chain and to quantify the true benefits of increasing “partnerships”. Addresses two of the six areas of collaboration identified by the study: product, and information flow. Looks at the state of collaboration in various European countries, the opportunities presented by the use of electronic data interchange and the potential for cost reduction.

Dynamic Modelling and Analysis of Information Flows in Production-Inventory and Supply Chain Systems

Abstract: System dynamics is the fundamental concept of this academic dissertation. The focus is on analysis and modelling of properties representative for production-inventory and supply chain systems. The modelling approach is based on Industrial Dynamics but employs a hybrid approach of Control Theory and simulation in the analysis. Simplification based on a structural approach is performed on block diagrams of complex systems as a prerequisite of analysis. In general, there are three main activities of interest when modelling manufacturing systems from a system dynamics point of view. Thus forecasting, lead times and inventory replenishment rules are each analysed and the properties of the suggested models discussed. Analogies between delays and density functions are identified introducing the concept of expected dynamic behaviour. Inventory replenishment rules based on inventory position enables a decomposition of production-inventory systems, thus simplifying the inclusion of trigger decision rule models. A production-inventory system and the Forrester supply chain are analysed based on a system simplification approach. It is shown that the amplification of demand fluctuations of the original Forrester model is not due to the much quoted feedback effect. Instead it is shown that no net feedback exists within the echelons due to cancellations of feedback information. Hence, the amplification is due to the design of the feedforward of orders through the supply chain. A difficult problem is the performance evaluation of dynamic systems. It is known that the net present value of a system can easily be obtained if a Laplace or z-transform model of the system and its cash flows exists. This theory is expanded also to cover general state space models and an application to a simple production-inventory model is given. In most cases, however, the models do not capture all aspects of economic relevance. Instead, as a complement to the cash flow based analysis, a multiple criteria approach for evaluating complex systems is suggested.

Production systems without MRP: A lean time based design

Abstract: This paper begins with an assumption that many UK manufacturing organizations are inherently wasteful, with complex production systems divorced from the core task of adding value This waste can be regarded as untapped potential which exists throughout the total value adding chain Releasing this potential can greatly improve company performance By focusing upon value adding activity and non value adding removal, waste, complexity and cost can be reduced progressively to achieve world class competitiveness A time based value adding framework to direct development and continuous improvement is described The total conversion chain from raw materials purchase to final goods assembly is examined using this approach Examples taken from the electrical switchgear industry, operating within a post MRP II environment using Kanban type pull system triggers to control material inputs, illustrate the use and effectiveness of the approach

Strategic Alliances in the European Food Industry

Abstract: The EC food industry is characterized by a fragmented manufacturing sector of over 100,000 companies. The heterogeneous nature of food demand and the predominance of family‐owned companies servicing specialized local needs has hindered the growth of the major food manufacturers, while the influence of the food multiples has grown unabated. An analysis of the forces for change in the European food industry leads to the conclusion that partnerships and alliances will increase rapidly throughout Europe. Vertical co‐ordination will be driven by such factors as: food safety legislation; growing consumer concern over how, where and by whom food products are produced; and incentives for all parties to squeeze costs in the supply chain to gain additional margin and enhanced competitiveness. Horizontal alliances will continue to develop as retailers seek to maintain their strength in the market, manufacturers attempt to minimize the risks associated with entering new markets, and farmers (co‐operatives) look to ad...

Health care reform and the hospital supply chain.

Abstract: With health care reform, hospitals will be differentiated in the marketplace by how well they manage the costs of services. Because products will be market priced, hospital materiel managers will have to minimize all other related acquisition costs. The key opportunities will be in changing processes to eliminate non-value added administrative, supply chain, and process activities and their attendant costs.