Supply chain decisions

The various decisions in supply chain engineering can be broadly grouped into three types—strategic, tactical, and operational. 

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We now discuss a recent example of simulation that models three alternative configurations for a supply chain in the mobile communications industry at the Ericsson company in Sweden. A supply chain consists of several links which may be separate companies or independent business units of a single large company. Examples of links are retailers, wholesalers, distributors, and factories. Customary strategies imply that, at the individual links of the supply chain, decisions are made based on... 

Integrating strategic, tactical and operational supply chain decision levels in a model predictive control framework... 

Advances in and use of IT to drive supply chain decisions. Large integrated stock-replenishment systems will control the storage and movement of large numbers of different goods into the stores. 

Hutchins, M. J., 8c Sutherland, J. W. (2008). An exploration of measures of social sustainability and their application to supply chain decisions./oMmaZ of Cleaner Production, 16, 1688-1698. doi 10.1016/ j.jclepro.2008.06.001... 

Supply chain decisions may conflict each other that requires coordination and integration through supply chain to optimize the processes in it globally. 

Key Supply Chain Decisions Table 2.7 MRP calculations for chip... 

The models and arguments in this section are mostly based on Watson et al. (2013) s book [4]. Location problem are very diverse. American Mathematical Society (AMS) has specific codes for location problems (90B80 for discrete location and assignment, and 90B85 for continuous location) [2]. General location problems include customers and facilities to satisfy customer demands. Facility locations problems are classified as discrete and continuous ones. Here, we are interested in discrete facility location problems. Also problem distinction is based on being capacitated or not. Melo et al. [2] identify four core features to be included in a facility location model to use in supply chain decisions ... 

Consider the supply chain example discussed earlier, but for this decentralized supply chain decision-making environment. Using the numerical example from the earlier section, the manufacturers optimal service level is - = 0.643. Using the probabilities in Table 5.1, this... 

The main difference under consignment inventory is that the manufacturer continues to own the retail consignment inventory until the product is sold to the customer. Thus, consignment inventory is equivalent to the manufacturer purchasing store shelf space and choosing inventory levels to maximize his profits. Coordination is achieved because the supply chain decisions are made by one decision maker. Such an approach is common in the provision of spices the spice racks in many retail stores are managed by the supplier. 

Bhaskaran, S., Simulation Analysis of a Manufacturing Supply Chain, Decision Sciences, 29 (3), 633-657,1998. 

If it exists, is the business unit strategy relevant to manufacturing, much less supply chain, decisions Are patterns of decision making within manufacturing and other supply chain functions consistent Would the best decision for manufacturing be the best for the supply chain ... 

No company — or supply chain, for that matter — will stay in business if it just covers direct costs. They must recover fixed costs as well. But awareness of direct costing and its impact on behavior is important to supply chain decisions on pricing and investments. A decision to participate as a supply chain partner should consider direct costs and contribution to profit. In our Acme case study (see Chapter 10), the company chose to focus on high contribution, as opposed to high contribution margin business as part of its strategy. If our houseware executive had followed the same path, the company would have taken the Sears offer. 

C Capacity, Commonality, and Consumption. The originators refer to 3C as a "theory. The theory uses these aspects to simplify supply chain decision making. 

The global ATP capability of SAP s APO suite serves as a key component for supporting integrated supply chain decision support. Global ATP is a part... 

Level III Sustainable supply chain decisions The highest level of analysis considers the retrofit designs integrated in the whole system. This level of analysis represents a holistic view and it is intended for companies aiming to achieve sustainable supply chains. This analysis requires time and it is data intensive. It covers several aspects of the process and assesses the relationship between stakeholders. Decisions wiU include conflicting aspects, which should be weighted, so that a final decision can be achieved. 

LI- Quick Sustainable Operations Decisions Lll- Sustainable Operations Decisions Llll- Sustainable Supply Chain Decisions... 

It is important to recognize that the three types of supply chain decisions— strategic, tactical, and operational—are interrelated. For example, the number... 

Values in the column of Table 7.12 can be used in supply chain decision making. For example, a buyer may consider minimizing the total transition time of his supply chain as a supplier selection criterion. Taking the analysis one step further, one of the functions /i(A) or /2(A) introduced earlier in the section can be used to characterize losses to the supply chain due to disruption delays. The last column in Table 7.12 shows the magnitude of losses the buyer would suffer from supplier disruptions under the / (A) function, where /i(A) = ln(A). As previously noted, buyers can use the/j(A) values (or/2(A) values given that they estimate the required parameters) to select among different suppliers. 

Presents multi-criteria optimization models, where appropriate, for supply chain decisions... 

Von Lanzenauer CH, Pilz-Glombik K (2002) Coordinating supply chain decisions an optimization model. OR Spectmm 24(l) 59-78... 

The cross-enterprise processes involve multiple companies in the executirui of supply chain processes. The important feature of these collaborative processes is that the companies involved are mainly concerned with their inter-conununications rather than with internal operations of each supply chain imit. That simplifies development and execution of complex supply chain processes. The cross-sectional processes involve multiple supply chain problem areas such as sales, purchasing, and logistics. This characteristic implies that supply chain decision-making and process execution cannot be done in isolation and mutual interactions and dependencies among different problem areas should be taken into account... 

As for any other system, the key properties of the supply chain system are decomposition, modularity, coupling and cohesion. The supply chain can be decomposed starting with the top level network. As stated above, the top level network consists of units having distinct legal or spatial characteristics. The units are further decomposed to represent their internal structure. For instance, a warehouse consists of multiple docking places and subdivisions. The decomposition is related to different levels of supply chain decision making. There are decisions (1) associated with the entire supply chain (2) made at the unit level and (3) made... 

Risk/benefit sharing. Implemented supply chain decisions have different impacts on supply chain members. Some of the units may assume larger risks and incur additional costs in the name of overall supply chain benefit. Risk and benefit sharing is essential for building trust and enforcing commitment among supply chain members. 

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. 

Fig. 9.6 Hybrid models and the supply chain decision-making framework...

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