Supply chain dependability

Do not know No strategic advantage from the supply chain Dependent on third-party providers Vulnerable to competition 1... 

The success of a manufacturing supply chain depends on its ability to accurately forecast customer demands and produce in time to meet those demands. This chapter is divided into two parts. Part 1 (Demand Forecashng) discusses the commonly used forecasting methods (both qualitative and quantitative) used in industry. It also includes a discussion of available forecasting software and real-world applications of forecasting methods. 

Detectability is defined as the time it takes for the buyer to realize that a disruption to supply network has occurred. Modeling the propagation of disruption information in a supply chain depends on the way nodes communicate with one another. Under the best-case scenario, each supplier, independent of its tier, communicates directly with the buyer. This is a very optimistic scenario since it requires every supplier to know the end destination of its product and to establish a direct connection with the buyer. The next best scenario assumes that every disrupted supplier reports to its immediate buyer. This situation is more realistic however, it does not ensure that the information will reach the primary buyer promptly since the immediate buyer of the disrupted supplier may not share the information with his customers or with the main buyer. Another scenario would be to assume that the information flows randomly in the supply chain network. This scenario may be perceived as pessimistic at first, but the method can be customized to better model the reality. 

The success of the supply chain depends on the integration of the management systems used by its links, collaboration in the supply chain, the establishment of long-term relationships, the coordination of flows, the compatibility of information systems, and mutual commitment, responsibility and trust (Moberg, Speh and Freese 2003). 

The partners closest to the company that is the direct source of the problem are the most exposed to the domino effect. Disruptions maybe caused by a wrong decision or random event of one of the participants resulting from, e.g., human error or failure of machinery and equipment. The problem of the domino effect is especially escalated if strong dependencies occur within the supply chain. Dependencies resulting from cooperation translate into strong relations between resources and actions, which are the basic components of each relationships between... 

To enable constant product flow it is very important to have a look at the material supply and its reception after granulation. The design of the supply chain depends mostly on the process mode. This means in cases of small batches or batches with a volume of not more than one bin the realization is quite easy. With respect to... 

A specific index is given to each echelon of fhe supply chain. For the case study, one or more echelons can be part of the supply chain, depending on the product. The production process is split into two production echelons, manufacturing and converting facilities, and needs one or more distribution centers to reach a market. For example, a manufacturing facility may produce a semi-finished product, such as paper rolls, and a converting... 

In addition, the data to be shared and communicated at various stages in the supply chain depend on what will provide the most overall benefit. These data should include ... 

Two distinct and simple business strategies for manufacturing household furniture may be described as the provision of either low-cost, short lifespan, or expensive, long lifespan products. The decision on which strategy to take is made at the conception stage of the business and may depend upon existing supply chain links, market opportunities or available workforce skill set for example. It is unlikely that such a strategic decision would ever be made... 

In the given case study, it is possible to introduce additional terms into this comparison which may look at energy implications such as process machinery and infrastructure life cycle energy costs, warranty repair, supply chain PSS, for example, depending on the company s scope and business model. 

Many of the problems exhibited on the level of material flow are the result of the distortion of marketplace sales information as it is transferred upstream through the supply chain. Therefore, the design of the information flow is as important for the effectiveness and efficiency of supply chains as the design of the material flow. The information flow is obviously influenced by the level of material flow. However, the information flow is not necessarily dependent on the material flow. 

Figure 16.2 shows a simplified and idealized version of the components involved in the planning step, that is, the components of the supply chain. S possible suppliers provide raw materials to each of the M manufacturing plants. These plants manufacture a given product that may be stored or warehoused in W facilities (or may not be stored at all), and these in turn are delivered to C different customers. The nature of the problem depends on whether the products are made to order or made... 

R6 - Price uncertainty consideration in planning Spot demand quantity and prices are uncertain in commodity business specifically in the considered planning horizon of 3-12 months. Since price is the main buying criterion in commodity business, mid-term demand quantity is mainly influenced by the price level. If spot demand quantity and prices depend on each other, uncertainty can be limited to one parameter while the other parameter is kept constant. The spot demand price is considered as uncertain in this problem leading to different turnover scenarios for the same sales quantity. Lababidi et al. (2004) presenting a petrochemical case that had to consider uncertainty in market prices and raw material costs in supply chain optimization. 

A more marked acceptance of responsibility by the market actors - such as within the future framework of REACH - requires the development of new forms of communication and co-operation along the supply chains. If substance-related information (by substance manufacturers) and user-related information (by preparations mannfacturers and/or nsers) are not collected in the supply chains, the market actors remain dependent on assessments by state bodies. 

The actors at one stage of the supply chain are able under certain circumstances to make implicit or explicit arrangements to prevent or slow down an innovation process. It depends on the individual case whether and how this delaying tactic pays off from an economic aspect. 

Hypothesis (11) The substance users ability to be innovative does not solely depend on the size of the enterprise, but also just as much on the organisational structure of the enterprises as well as their position in the supply chain, for example. 

It is difficult to make generalisations. Distinctions are required depending on the market and constellation of actors in the supply chains, however some influential factors can be specified which increase the incidence of innovation ... 

Supply chain safety— to protect the products and services on which our economy and society depend. The opportunities for chemical scientists include improved security plans at chemical production sites, automated detection systems that can sense agents inside of closed containers, and improved placarding of railroad tank cars. 

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