Supply chain configuration model

Hybrid models. This combination of other types of supply chain configuration models are not necessarily confined just to combination of analytical and simulation models. 

Step 5—Modeling and analysis. Interrelated qualitative and quantitative supply chain configuration models are developed and applied according to the experimental plan established in Step 3. Models are used to explore different aspects of the supply chain configuration problem. Additionally, combinations of models (i.e., hybrid models) are often considered. Verification and validation of models is also a part of this step. 

The case specific model is constructed for a specific supply chain cmifiguration initiative and it uses elements from the generic supply chain configuration model. Development of the case specific model is illustrated using the running example of the see Bike supply chain. 

The case specific model is intended for analysis of the particular supply chain problem and also serves as input to development of other supply chain configuration models. Depending on the purpose, it has different levels of detail ... 

The case specific supply chain configuration model is created for the SCC Bike supply chain. 

A conceptual representation of the supply chain configuration problem is elaborated by using the enterprise modeling techniques. The configuration problem is modelled at the domain level and at the case level, where the generic concepts are defined at the domain level and instances specific to a particular supply chain are defined at the case specific level. The domain level model is not developed as a meta-model because it can be directly used to create generic supply chain configuration models and other elements can be added, if necessary. 

The data structure generation is emphasized in the chapter because it is believed that a practical supply chain configuration model at the case level should not include graphical representation of all supply chain entities. The most efficient way is to show graphically only the most important supply chain entities and other supply chain entities can be represented using a text based format. Nevertheless, the textual representation should be easily perceivable and modifiable by experts involved in the supply chain decision-making. Spreadsheets are an attractive option. 

The literature on including policy-related variables in the quantitative supply chain configuration models is scarce. Truong and Azadivar (2005) include a decision variable representing a choice between using push and pull manufacturing policies. 

Pirkul and Jayaraman (1998) successfully applied the Lagrangian relaxation problem for the supply chain configuration problem. Similar results have been obtained by Jang et al. (2002) and Amiri (2006). The supply chain configuration model by Pirkul and Jayaraman (1998) locates a specified number of manufacturing facilities and warehouses to minimize fixed and transformation costs subject to customer demand satisfaction and capacity constraints. 

Other multi-objective supply chain configuration models have been developed by Li and O Brien (1999), Sabri and Beamon (2000), Talluri and Baker (2002), Brandenburg (2015) and Das and Rao Posinasetti (2015) (see Chap. 3). 

Comparison with results obtained using other supply chain configuration models is an additional validation technique. Expert evaluation, comparison with manual computations, comparison of simulation with real-life situation, and pilot implementation of simulation results are named as validation methods used by Van der Vorst et al. (2000) in their supply chain redesign model. However, the pilot implementation was possible only for operational level decisions. Bowersox (1972) uses the stability of output data, sensitivity analysis, and comparison of simulated output to historical data as his model validation methods. 

The data driven approach to supply chain configuration is part of the overall supply chain configuration framework and decision support systems. Within this framework, it emphasizes data gathering and representation of modeling results as well as uses a specific data intensive supply chain configuration model. These key elements of the data driven approach are shown in Fig. 11.1... 

The supply chain configuration methodology has been applied to analyze configuration challenges at the ICT distribution company. The company s supply chain has evolved in a step-by-step manner and the network development decisions have been made on a case-by-case basis. Consequently, the supply chain configuration models developed in the case study help to establish a systematic basis for further supply... 

The model for evaluation of different delivery modes as combination of delivery contracts and delivery routes is a novel type of supply chain configuration model potentially valuable for other companies providing logistics services. 

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