Showing papers on "Supply chain published in 2003"

Supply Chain Coordination with Contracts

Abstract: Publisher Summary This chapter reviews the supply chain coordination with contracts. Numerous supply chain models are discussed. In each model, the supply chain optimal actions are identified. The chapter extends the newsvendor model by allowing the retailer to choose the retail price in addition to the stocking quantity. Coordination is more complex in this setting because the incentives provided to align one action might cause distortions with the other action. The newsvendor model is also extended by allowing the retailer to exert costly effort to increase demand. Coordination is challenging because the retailer's effort is noncontractible—that is, the firms cannot write contracts based on the effort chosen. The chapter also discusses an infinite horizon stochastic demand model in which the retailer receives replenishments from a supplier after a constant lead time. Coordination requires that the retailer chooses a large basestock level.

Supply chain risk management: outlining an agenda for future research

Abstract: In recent years the issue of supply chain risk has been pushed to the fore, initially by fears related to possible disruptions from the much publicised “millennium bug”. Y2K passed seemingly without incident, though the widespread disruptions caused by fuel protests and then Foot and Mouth Disease in the UK, and by terrorist attacks on the USA have underlined the vulnerability of modern supply chains. Despite increasing awareness among practitioners, the concepts of supply chain vulnerability and its managerial counterpart supply chain risk management are still in their infancy. This paper seeks to identify an agenda for future research and to that end the authors go on to clarify the concept of supply chain risk management and to provide a working definition. The existing literature on supply chain vulnerability and risk management is reviewed and compared with findings from exploratory interviews undertaken to discover practitioners' perceptions of supply chain risk and current supply chain risk managem...

Aligning supply chain strategies with product uncertainties

Abstract: Today's supply chain managers have been bombarded with a wide variety of the socalled leading-edge supply chain strategies. New terminologies and initiatives are being developed constantly. However not all these initiatives or strategies are appropriate for all firms. Companies need to first understand the uncertainties faced by the demand and supply of its products and then try to match these uncertainties with the right supply chain strategies. Based on an analysis of the uncertainties of supply and demand faced by the firm, this article develops a framework that can assist managers in developing the right supply chain strategy for their products.

Increased visibility during order management in a network-based supply chain environment

Abstract: A system, method and article of manufacture are provided for a first business entity to provide a network-based supply chain framework for collaborative order management between at least a second and a third independent business entity, such as a service provider, vendor, reseller, manufacturer and the like. A request for an order is received over a network with an automated system, from at least a second business entity. The order is transmitted over a network, with an automated system, to at least the third business entity. Information is received from the third business entity relating to a status of completion of the order by the third business entity using a network. The progress in completing the order is tracked based on the information received from the third business entity. Progress reports from the tracking are generated periodically; and transmitted to the second business entity using the network.

Production, Manufacturing and Logistics Measuring and avoiding the bullwhip effect: A control theoretic approach

Abstract: An important contributory factor to the bullwhip effect (i.e. the variance amplification of order quantities observed in supply chains) is the replenishment rule used by supply chain members. First the bullwhip effect induced by the use of different forecasting methods in order-up-to replenishment policies is analysed. Variance amplification is quantified and we prove that the bullwhip effect is guaranteed in the order-up-to model irrespective of the forecasting method used. Thus, when production is inflexible and significant costs are incurred by frequently switching production quantities up and down, order-up-to policies may no longer be desirable or even achievable. In the second part of the paper a general decision rule is introduced that avoids variance amplification and succeeds in generating smooth ordering patterns, even when demand has to be forecasted. The methodology is based on control systems engineering and allows important insights to be gained about the dynamic behaviour of replenishment rules. � 2002 Elsevier Science B.V. All rights reserved.

Increasing efficiency in the supply chain for short shelf life goods using RFID tagging

Abstract: Short shelf‐life grocery goods present some of the biggest challenges for supply chain management due to a high number of product variants, strict traceability requirements, short shelf‐life of the products, the need for temperature control in the supply chain, and the large volume of goods handled. A Radio Frequency Identification (RFID) based data capture system can help solve the problems associated with the logistics of short shelf life products. This article discusses the potential of utilising RFID technology for increasing efficiency in the supply chain of short shelf life products. The focus of this article is a RFID trial conducted at Sainsbury’s, which is discussed to study the potential benefits of RFID for short shelf‐life products retailers. Further this article analyses the potential impact of RFID for other supply chain participants. We conclude that when applied with recyclable transport containers, RFID investments can provide quick amortisation of capital whilst offering a range of operational benefits.

Building a secure and resilient supply network.

Abstract: SUBTITLE: FOR MANY COMPANIES, THE ONLY THING STANDING BETWEEN THEM AND A DISASTROUS SUPPLY CHAIN DISRUPTION IS LUCK. BUT, AS ANY GAMBLER KNOWS, YOUR LUCK EVENTUALLY RUNS OUT. IN TODAY'S BUSINESS ENVIRONMENT, YOU NEED A SUPPLY NETWORK THAT HAS COMPREHENSIVE SECURITY PROCESSES AND PROCEDURES IN PLACE AND IS RESILIENT ENOUGH TO BOUNCE BACK FROM ANY DISRUPTIONS THAT DO HAPPEN. LUCK PLAYS NO PART IN THE EQUATION.

A conceptual model of supply chain flexibility

Abstract: This paper presents an integrated conceptual model of supply chain flexibility. It examines flexibility classification schemes and the commonalities of flexibility typologies published in the literature to create a theoretical foundation for analyzing the components of supply chain flexibility. Even though there has been a tremendous amount of research on the topic of flexibility, most of it has been confined to intra‐firm flexibility concerns. As supply chain management goes beyond a firm’s boundaries, the flexibility strategies must also extend beyond the firm. This paper identifies the cross‐enterprise nature of supply chain flexibility and the need to improve flexibility measures across firms. Opportunities are identified for future cross‐functional research that builds on this theoretical foundation and leads to more effective formulation of supply chain strategies.

Performance measurement in a supply chain

Abstract: The supply chain is an important element in logistics development for all industries. It can improve efficiency and effectiveness of not only product transfer, but also information sharing between the complex hierarchy of all the tiers. There is no systematic grouping of the different performance measures in the existing literatures. This paper presents the formulisation of both quantitative and qualitative performance measurements for easy representation and understanding. Apart from the common criteria such as cost and quality, five other performance measurements are defined: resource utilisation; flexibility; visibility; trust; and innovativeness. In particular, new definitions are developed for visibility, trust, and innovativeness. Details of choices of these performance measurements are listed and suggested solutions are given, with the hope that a full picture of supply chain performance measurements is developed. In addition, a multi-attribute decision-making technique, an analytic hierarchy process (AHP), is used to make decisions based on the priority of performance measures. This paper outlines the application and particularly the pairwise comparison which helps to identify easily the importance of different performance measurements. An example from the electronic industry is used to demonstrate the AHP technique.

Information Sharing and Supply Chain Coordination

Abstract: Publisher Summary This chapter discusses the information pertaining to the downstream part of the supply chain and then reviews the upstream information. The chapter discusses the papers that investigate the consequences of imperfect transmission of information. All the papers adopt the perspective of a central planner whose goal is to optimize the performance of the entire supply chain. The chapter addresses the incentive issues in information sharing. Supply chains are composed of independent firms with private information. Information sharing in supply chains with independent players is tricky. When a player has superior information, two things may happen. He may withhold it to gain strategic advantage or he may reveal it to gain cooperation from others. If the former, the less informed players try to provide incentives for him to reveal his private information, then it is termed “screening.”

Supply Chain Specific? Understanding the Patchy Success of Ethical Sourcing Initiatives

Abstract: As a number of high profile companies have found to their cost, corporate reputations can be significantly affected by firms' management of sustainability issue, including those that are outside their direct control, such as the environmental and social impacts of their supply networks. This paper begins by examining the relationship between corporate social responsibility, reputation, and supply network conditions. It then looks at the effectiveness of one tool for managing supply network sustainability issues, ethical sourcing codes of conduct, by examining how the characteristics of three supply networks branded clothes, DIY wood products and branded confectionary affects the implementation ethical sourcing codes of conduct. It ends by setting out conclusions on why implementation of such codes has been so much more successful in some sectors than others and recommendations on effective approaches to managing sustainability issues in supply networks.

The impacts of sharing production information on supply chain dynamics: A review of the literature

Abstract: This paper is a review of research into the impacts of sharing production information on the supply chain dynamics. The purpose of the review is to understand the needs to unravel such impacts on the supply chain design and management, to identify the current research frontier and to study the future trend in this field. The scope of the review is somewhat broad in the sense that more than 100 relevant publications resulting from major research projects and originating from some leading research groups are selected for review. In order to maintain the necessary coherence and consistency, this comprehensive review proposes a loose reference framework to reflect major elements commonly involved in this type of research, including the decision level investigated, supply chain structure, research questions addressed, factors involved, supply chain dynamics measured, modelling methodology adopted, data analysis technique used, and findings and insights from the managerial perspective obtained. The framework se...

Models for Supply Chains in E-Business

Abstract: Supply chain management is likely to play an important role in the digital economy. In this paper, we first describe major issues in traditional supply chain management. Next, we focus our attention on the supply chain issues of visibility, supplier relationships, distribution and pricing, customization, and real-time decision technologies that have risen to importance with the prevalence of e-business. We present an overview of relevant analytical research models that have been developed in these areas, discuss their contributions, and conclude with a discussion on future modeling opportunities in this area.

E‐business strategy

Abstract: The interest of both researchers and practitioners around the use of Internet‐based tools to support business processes has been quite high in the last few years. However, despite the initial enthusiastic expectations, it is still not completely clear whether these expectations have been translated into business reality. This paper explores the actual adoption of Internet technologies in supply chain processes by a large sample of European manufacturing firms participating in the IMSS survey. Four e‐business strategies are identified and their relationship with contingent factors and supply chain integration mechanisms is investigated. Results show a close link between the use of Internet tools and the level of integration with customers and suppliers, thus suggesting the need to define e‐business strategies in coherence with the use of traditional integration mechanisms.

An innovative performance measurement method for supply chain management

Abstract: Supply chain management has become such a popular topic in modern business management and researches. It brings the revolutionary philosophy and approach to manage the business with the sustained competitiveness. However, the existing performance measurement theory fails to provide its necessary support in strategy development, decision making, and performance improvement. This paper attempts to propose an innovative performance measurement method to contribute to the development of supply chain management. A process‐based systematic perspective is employed to build an effective model to measure the holistic performance of complex supply chains. Fuzzy set theory is introduced to address the real situation in judgment and evaluation processes. The main framework of this method is outlined with some suggestions and a simple example.

Managerial Perceptions of Supply Risk

Abstract: SUMMARY There has been a growing emphasis in business on outsourcing production activities and focusing on core competencies. The decision to outsource the production of goods and services, however, has inherent risk. The purposes of this article are to describe characteristics of inbound supply that affect managerial perceptions of supply risk and to create a classification of those supply risk sources. An analysis of case study data suggests that supply risk is perceived by the effect that purchased items and services have on corporate profitability, market factors, and supplier characteristics. By understanding the characteristics of supply risk, supply management professionals can implement strategies for better managing that risk.

Supply chain scheduling: Batching and delivery

Abstract: Although the supply chain management literature is extensive, the benefits and challenges of coordinated decision making within supply chainscheduling models have not been studied. We consider a variety of scheduling, batching, and delivery problems that arise in an arborescent supply chain where a supplier makes deliveries to several manufacturers, who also make deliveries to customers. The objective is to minimize the overall scheduling and delivery cost, using several classical scheduling objectives. This is achieved by scheduling the jobs and forming them into batches, each of which is delivered to the next downstream stage as a single shipment. For each problem, we either derive an efficient dynamic programming algorithm that minimizes the total cost of the supplier or that of the manufacturer, or we demonstrate that this problem is intractable. The total system cost minimization problem of a supplier and manufacturer who make cooperative decisions is also considered. We demonstrate that cooperation between a supplier and a manufacturer may reduce the total system cost by at least 20%, or 25%, or by up to 100%, depending upon the scheduling objective. Finally, we identify incentives and mechanisms for this cooperation, thereby demonstrating that our work has practical implications for improving the efficiency of supply chains.

The Challenge of Closed-Loop Supply Chains

Abstract: Closed-loop supply chains differ significantly from forward supply chains in many aspects. These differences are not well understood in many contexts, and the situation is complicated by many types of product returns. Progress is slow since closed-loop supply chains are rarely considered as value-creating systems, and much of the focus is on the operational aspects, rather than the larger strategic issues. Interest is growing in the US because of the potential profitability and in the European Union because of legislation. New business models need to be developed by joint cooperation between industry and academia that take a life-cycle approach to products.

Supply chain management : design, coordination and operation

Abstract: This handbook contains chapters covering a broad range of supply chain management issues written by leading experts in the field. It is aimed at researchers, students, engineers, economists and managers involved in supply chain management.

A structural equation model of supply chain management strategies and firm performance

Abstract: This research develops and analyzes a theoretical framework for supplier management and customer relationship strategies, supply chain management strategy, and firm performance using structural equation modeling. Data used in the paper were collected from a comprehensive survey circulated to a wide variety of U.S. and European business executives. Based on the findings, a clearer picture of the practice and benefits of SCM and its strategic implications emerges.

Safeguarding Investments in Asymmetric Interorganizational Relationships: Theory and Evidence

Abstract: We model the governance strategies adopted by suppliers to safeguard relationship-specific investments in asymmetric interoganizational relationships using two dimensions: quasi integration and joi...