Showing papers on "Supply chain management published in 2000"

Supply Chain Management: Strategy, Planning and Operations

Abstract: PART I: BUILDING A STRATEGIC FRAMEWORK TO ANALYZE SUPPLY CHAINS Chapter 1: Understanding the Supply Chain Chapter 2: Supply Chain Performance: Achieving Strategic Fit and Scope Chapter 3: Supply Chain Drivers and Metrics PART II: DESIGNING THE SUPPLY CHAIN NETWORK Chapter 4: Designing Distribution Networks and Applications to e-Business Chapter 5: Network Design in the Supply Chain Chapter 6: Network Design in an Uncertain Environment PART III: Planning Demand and Supply in a Supply Chain Chapter 7: Demand Forecasting in a Supply Chain Chapter 8: Aggregate Planning in the Supply Chain Chapter 9: Planning Supply and Demand in the Supply Chain: Managing Predictable Variability PART IV: Planning and Managing Inventories in a Supply Chain Chapter 10: Managing Economies of Scale in the Supply Chain: Cycle Inventory Chapter 11: Managing Uncertainty in the Supply Chain: Safety Inventory Chapter 12: Determining Optimal Level of Product Availability PART V: Designing and Planning Transportation Networks Chapter 13: Transportation in the Supply Chain PART VI: Managing Cross-Functional Drivers in the Supply Chain Chapter 14: Sourcing Decisions in a Supply Chain Chapter 15: Pricing and Revenue Management in the Supply Chain Chapter 16: Information Technology and the Supply Chain Chapter 17: Coordination in the Supply Chain

The Value of Information Sharing in a Two-Level Supply Chain

Abstract: Many companies have embarked on initiatives that enable more demand information sharing between retailers and their upstream suppliers. While the literature on such initiatives in the business press is proliferating, it is not clear how one can quantify the benefits of these initiatives and how one can identify the drivers of the magnitudes of these benefits. Using analytical models, this paper aims at addressing these questions for a simple two-level supply chain with nonstationary end demands. Our analysis suggests that the value of demand information sharing can be quite high, especially when demands are significantly correlated over time.

Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information

Abstract: An important observation in supply chain management, known as the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. In this paper we quantify this effect for simple, two-stage supply chains consisting of a single retailer and a single manufacturer. Our model includes two of the factors commonly assumed to cause the bullwhip effect: demand forecasting and order lead times. We extend these results to multiple-stage supply chains with and without centralized customer demand information and demonstrate that the bullwhip effect can be reduced, but not completely eliminated, by centralizing demand information.

Information sharing in a supply chain

Abstract: Advances in information system technology have had a huge impact on the evolution of supply chain management. As a result of such technological advances, supply chain partners can now work in tight coordination to optimise the chain-wide performance, and the realised return may be shared among the partners. A basic enabler for tight coordination is information sharing, which has been greatly facilitated by the advances in information technology. This paper describes the types of information shared inventory, sales, demand forecast, order status, and production schedule. We discuss how and why this information is shared using industry examples and relating them to academic research. We also discuss three alternative system models of information sharing - the information transfer model, the third party model and the information hub model.

Supply chain migration from lean and functional to agile and customised

Abstract: Shows how the lean and agile paradigms may be selected according to marketplace requirements. These are distinctly different, since in the first case the market winner is cost, whereas in the second case the market winner is availability. Agile supply chains are required to be market sensitive and hence nimble. This means that the definition of waste is different from that appropriate to lean supply. The proper location of decoupling points for material flow and information flow enable a hybrid supply chain to be engineered. This encourages lean (efficient) supply upstream and agile (effective) supply downstream, thus bringing together the best of both paradigms. The paper concludes by proposing a cyclic migratory model which describes the PC supply chain attributes during its evolution from traditional to its present customised “leagile” operation.

Supply Chain Management and Advanced Planning

Abstract: A ceramic fiber mat attached to the interior wall or surface of a high temperature chamber or furnace or adapted to overlie an intermediate insulating member positioned between the mat and a furnace wall, the fibers in the mat lying in planes generally perpendicular to the wall, the mat constituting an improved insulation for the wall where the interior of the chamber or furnace will be operating at temperatures in excess of 1600 DEG F.

Lean, agile or leagile? Matching your supply chain to the marketplace

Abstract: Many enterprises have pursued the lean thinking paradigm to improve the efficiency of their business processes. More recently, the agile manufacturing paradigm has been highlighted as an alternative to, and possibly an improvement on, leanness. In pursuing such arguments in isolation, the power of each paradigm may be lost, which is basically that agile manufacturing is adopted where demand is volatile, and lean manufacturing adopted where there is a stable demand. However, in some situations it is advisable to utilize a different paradigm on either side of the material flow de-coupling point to enable a total supply chain strategy. This approach we have termed the Leagile Paradigm. This paper therefore considers the effect of the marketplace environment on strategy selection to ensure optimal supply chain performance. Real-world case studies in the mechanical precision products, carpet making, and electronic products market sectors demonstrate the new approach to matching supply chain design to the actua...

E-Business 2.0: Roadmap for Success

Abstract: Revolutions begin with attacks on the language. Today's managers are bombarded with an alphabet soup of technology acronyms such as CRM, ERP, and SCM. Managers must manage in the fog of this technology revolution. Kalakota and Robinson's book provides a lens for managers who want to understand the terminology and take action--to grasp the opportunities or defend against the invading virtual competitors. When the history of e-business is written--perhaps sooner than we think--this book will go down as a management landmark that helped clear the fog of mumbo jumbo and provided a beacon through which managers could chart their course. --Michael Quinn, eStrategy Director, B2B Commerce Ltd.To survive and succeed in today's complex business world, all companies--from established industry leaders to feisty upstarts--must develop a strategy that allows them to take maximum advantage of the latest trends in technology. Successful companies have implemented focused e-business strategies to build cutting-edge enterprises that serve and retain customers, manage suppliers, and integrate selling chains better than ever before. Others, unfortunately, are lured into ill-fated ventures by the ever-changing roster of buzzwords, fads and analogies.A timely follow-up to the best-seller on this crucial topic, e-Business 2.0 reveals how managers are rewiring the enterprise to take maximum advantage of e-business. Ravi Kalakota and Marcia Robinson present an innovative application framework that guides the migration from a traditional business model to an e-business model. Drawing on their extensive personal experience working with leading businesses, they provide a clear picture of the benefits and challenges that e-business companies face and identify the fundamental design principles for building a successful e-business blueprint.This new edition incorporates the latest strategies and techniques gained from the experiences of the first generation of e-businesses. In addition to updated information on application framework design, the book now features more detail on strategy and e-business execution. e-Business 2.0 shows how e-commerce has evolved into e-business and identifies the 20 key e-business trends that are shaping today's economy. It then addresses core application frameworks--customer relationship management, selling chain management, enterprise resource planning, supply chain management, e-procurement, and business intelligence--and shows how each forms the foundation of an e-business strategy. 0201721651B06012001

Engineering the leagile supply chain

Abstract: Notes the importance of new internal supply chains being properly interfaced with the marketplace. Suggests that the appropriate way forward is to design and implement a “leagile supply chain”. Whereas leanness may be achieved by eliminating non‐value added time, agility usually requires the additional reduction of value‐added time via production technology breakthroughs. Demonstrates how the “lean” and “agile” paradigms may be integrated. This requires evaluation of the total performance metric and development of a route map for integrating lean production and agile supply in the total chain. Presents results achieved in a re‐engineered real world supply chain serving the electronic products market.

An initial classification of supply networks

Abstract: The articulation of supply networks, as an extension of supply chains, seeks to accommodate and explain the commercial complexity associated with the creation and delivery of goods and services from the source of raw materials to their destination in end‐customer markets. In place of the simplistic, linear and unidirectional model sometimes presented for supply chains, the supply network concept describes lateral links, reverse loops, two‐way exchanges and so on, encompassing the upstream and downstream activity, with a focal firm as the point of reference. A review of classifications of supply networks reveals that none of the existing approaches appears adequate for managers facing the practical problems of creating and operating them on a day‐to‐day basis. This research identifies differing emphases that may be required for managing within supply networks, according to the nature of the products for which they are created. Taking an established categorisation of supply chains as its starting point, the research first develops the conceptual basis, using strategy literature, and then tests the resultant initial model in 16 case studies. Finally, a new categorisation for supply networks is presented, using the type of product as a differentiator.

Ten-mega trends that will revolutionize supply chain logistics

Abstract: This article, the last in the visioning series under the current editor, describes the authors' vision of the major trends in supply chain logistics as well as their perspective regarding current industry status with respect to these trends. The authors also suggest the changes and transformations that must take place to enable firms to achieve this vision.

Information sharing in a supply chain

Abstract: Advances in information system technology have had a huge impact on the evolution of supply chain management. As a result of such technological advances, supply chain partners can now work in tight coordination to optimise the chain-wide performance, and the realised return may be shared among the partners. A basic enabler for tight coordination is information sharing, which has been greatly facilitated by the advances in information technology. This paper describes the types of information shared inventory, sales, demand forecast, order status, and production schedule. We discuss how and why this information is shared using industry examples and relating them to academic research. We also discuss three alternative system models of information sharing - the information transfer model, the third party model and the information hub model.

The impact of exponential smoothing forecasts on the bullwhip effect

Abstract: An important phenomenon often observed in supply chain management, known as the bullwhip effect, implies that demand variability increases as one moves up the supply chain, i.e., as one moves away from customer demand. In this paper we quantify this effect for simple, two-stage, supply chains consisting of a single retailer and a single manufacturer. We demonstrate that the use of an exponential smoothing forecast by the retailer can cause the bullwhip effect and contrast these results with the increase in variability due to the use of a moving average forecast. We consider two types of demand processes, a correlated demand process and a demand process with a linear trend. We then discuss several important managerial insights that can be drawn from this research. c 2000 John Wiley & Sons, Inc. Naval Research Logistics 47: 269{286, 2000

New managerial challenges from supply chain opportunities

Abstract: Supply chain is an emerging term that emphasizes interactions among marketing, logistics, and production. With this term and its application come opportunities associated primarily with managing the logistics channel across the legal boundaries of enterprises, such as between firms and their suppliers. In this paper, there is a discussion of the evolution of logistics to see how it is defined and practiced today, with the intent of highlighting the emerging opportunities for channel performance improvement. It is shown that supply chain management has moved us from an intrafunctional vision of the channel toward an interfunctional and even inter-organizational one. Examples are given to illustrate the type of problems that are associated with each of these visions. Focus is given to those problems inherent in managing inter-organizationally, since this is where traditional management tools and techniques are no longer appropriate. The new metrics, informational sharing systems, and allocation-of-benefits procedures needed to operate in the expanded channel are discussed.

Optimizing Strategic Safety Stock Placement in Supply Chains

Abstract: Manufacturing managers face increasing pressure to reduce inventories across the supply chain. However, in complex supply chains, it is not always obvious where to hold safety stock to minimize inventory costs and provide a high level of service to the final customer. In this paper we develop a framework for modeling strategic safety stock in a supply chain that is subject to demand or forecast uncertainty. Key assumptions are that we can model the supply chain as a network, that each stage in the supply chain operates with a periodic-review base-stock policy, that demand is bounded, and that there is a guaranteed service time between every stage and its customers. We develop an optimization algorithm for the placement of strategic safety stock for supply chains that can be modeled as spanning trees. Our assumptions allow us to capture the stochastic nature of the problem and formulate it as a deterministic optimization. As a partial validation of the model, we describe its successful application by product flow teams at Eastman Kodak. We discuss how these flow teams have used the model to reduce finished goods inventory, target cycle time reduction efforts, and determine component inventories. We conclude with a list of needs to enhance the utility of the model.

A practical framework for understanding the outsourcing process

Abstract: Over the last number of years, outsourcing has become an important issue for many organisations. The potential for outsourcing has moved from peripheral activities such as cleaning and catering to critical activities such as design and manufacturing. However, there is evidence to suggest that organisations are not achieving the desired benefits from outsourcing. Outsourcing decisions are rarely taken within a thoroughly strategic perspective with many firms adopting a short‐term perspective and being motivated primarily by the search for short‐term cost reductions. The aim is to illustrate that outsourcing should be carried out from a strategic perspective and integrated into the overall strategy of the organisation by proposing an outsourcing framework. The framework attempts to overcome some of the problems associated with outsourcing by integrating a number of key strands related to outsourcing including a value chain perspective, core competency thinking and supply base influences into the decision‐making process.

Supply-Chain Management for Recoverable Manufacturing Systems

Abstract: Recoverable manufacturing systems minimize the environmental impact of industry by reusing materials, reducing energy use, and reducing the need to landfill industrial products. These systems are widespread in the United States and are profitable, in addition to contributing to sustainable development. However, the management of supply-chain activities can differ greatly from management activities in traditional manufacturing supply chains. Seven complicating characteristics increase uncertainty. Managers must take actions to reduce uncertainty in the timing and quantity of returns, balance return rates with demand rates, and make material recovery more predictable. Managers must also plan for the collection of products from end-users. The use of information systems with new production-planning and control techniques makes management of these activities more predictable.

Purchasing and Supply Chain Management

Abstract: Purchasing and Supply Chain Management, now in its 6/e is a much revised and enlarged version of this successful textbook. The authors take an integrated approach, drawing on the many disciplines from ethics and human resources to suppliers, sourcing and strategy that all contribute to a full knowledge of purchasing practice and techniques. This 6/e has been substantially revised, with 3 new chapters, to take account of recent developments in this area. The book covers the syllabus of the CIPS in respect of the Foundation Stage subjects Introduction to Supply and Materials Management' and `Legal and Procurement Processes' and the Graduate Diploma, Professional Stage core and option subjects of `Purchasing and Supply Chain Management I- Strategy', and `Purchasing and Supply Chain Management II- Tactics and Operations'

Supply chain management in theory and practice: a passing fad or a fundamental change?

Abstract: Supply chain management is a major issue in many industries as firms realize the importance of creating an integrated relationship with their suppliers and customers. Managing the supply chain has become a way of improving competitiveness by reducing uncertainty and enhancing customer service. This paper analyzes various issues important to supply chain management and provides broader awareness of supply chain principles and concepts. The role of planning and coordination in complex integrated systems and information technology to synchronize the supply chain is described in a framework that creates the appropriate structure and installs proper controls in the enterprise and other constituents in the chain.

System dynamics modelling in supply chain management: research review

Abstract: The use of system dynamics modeling in supply chain management has only recently re-emerged after a lengthy slack period. Current research on system dynamics modelling in supply chain management focuses on inventory decision and policy development, time compression, demand amplification, supply chain design and integration, and international supply chain management. The paper first gives an overview of recent research work in these areas, followed by a discussion of research issues that have evolved, and presents a taxonomy of research and development in system dynamics modelling in supply chain management.

An optimization approach to determining the number of vendors to employ

Abstract: Presents an approach for evaluating the number of vendors to employ in a procurement situation using multi‐objective programming (MOP) and data envelopment analysis (DEA). The approach advocates developing vendor‐order quantity solutions (referred to as supervendors) using MOP and then evaluating the efficiency of these supervendors on multiple criteria using DEA. Formulations are presented for both the MOP and DEA models. A case study is presented for a Fortune 500 company in a just‐in‐time (JIT) manufacturing environment.