Supply chain exceptions

The inventory policy aims at determining when should a replenishment order be placed and how large should this order be at each time. At every time R, the inventory position I is checked. All the members of the supply chain, except the one in consideration, behave like follows If I is below the reorder threshold s, a replenishment quantity is ordered according to a known law. One example of such law is the proportional one used by Perea-Lopez et al. (2001) If the inventory is above a threshold s, nothing is done until the next review, otherwise an order u is done according to the proportional law, u = k (s - I). Total profit is used as performance index. It considers sales, purchasing costs and storage costs for materials and orders over the simulation time horizon. 

In attempting to analyze supply chain exceptions, our analysis here is based on a simple two-tier supply chain stmcture where the customer demand is directly fulfilled by a manufacturer, who in turn is supplied various components by a set of suppliers. Logistics service providers handle material movements between all the parties as shovm in Fig. 2. 

In a supply chain exceptions can occur at various nodes - on the supply side, demand side, during transport or in storage - and due to a variety of different causes. There could be failures of power and communications or employee strikes. There is also a risk of breach of trust by partners, by outside elements. 

Most of the authors except Chopra/Meindl share the objective to minimize costs in the inter-company supply chain between companies with given demand and customer service level. Chopra/Meindl support the objective of value maximization, where it is later proposed to distinguish this objective with the term value chain management... 

Additionally, the physical maximum inventory determined by physical storage capacity should be applied in exceptional months specifically for the first planning month if actual inventories to be considered in the plan are higher than the maximum bandwidth inventory. Minimum and maximum inventory boundaries are regular components in standard supply chain planning models (see for example Chen et al. 2003, p. 1881). 

Product quality, purity and consistency are critically important in the pharmaceutical sector, applying to all stages of the supply chain and final dosed product. The human body is an exceptionally complex system and the full effect of a pharmaceutical product, consisting of the API, impurities and formulation components, is impossible to predict from first principles. The industry relies on rigorous clinical trials to assess drug efficacy, toxicity and side effect profiles. 

An exception applies if the substance has already been registered for that particular use - irrespective of supply chain. 

A more important deactivation aspect is poisoning. A diesel oxidation catalyst is poisoned by the same elements that poison three-way catalysts, except for lead, which is absent from diesel fuel and the diesel fuel supply chain. Table 25 compares the amount of sulfur, phosphorus and zinc offered to a diesel catalyst and to a three-way catalyst during their lifetime. From this table, it is apparent that a diesel oxidation catalyst has to deal with a considerably higher amount of sulfur during its lifetime than is the case with a three-way catalyst. This is because the diesel fuel specification allows for a higher sulfur content than the gasoline specification. Table 26 gives an overview of the maximum sulfur content in the diesel fuel specification of some selected countries. 

This model reflects a physics perspective, however this model might not fit a regular supply chain design since objective function employs a second degree penalty for unit distance travelled. However, gravity location model can give insight for potential location areas. Every model is an abstraction of reality that comes with assumptions. This model is no exception. This model does not take into account the physical features of location areas, i.e. mountainous or not, proximity to labor force or required infrastructure etc. 

From our supplier s supplier to our customer s customer, our supply chain in Brazil is 200 days long. When we started, we projected capacity for five years. Due to exceptional growth, we found that we exceeded our usable capacity within one year. We were in trouble. To build a new plant in Brazil takes two years. The application process is tough. We have to get approval from three of the 13 ministries within Brazil before we can start the process. As a result, we built capacity in China and ship the product to Brazil to satisfy the burgeoning needs. 

Sainsbury s had exceptional expenses of 145 million in information technology and 119 in supply chain costs following the implementation of a new supply chain system. 

Manufacturers and importers of polymers are required to submit a registration for the monomer substance(s) or any other substance chemically bound to the polymer except if these have already been registered by the supplier or another actor in their supply chain. Article 6 3. 

DU cannot register substances that they use (except if there is an intended release). However, be aware that the registration of substances by their manufacturers and importers will affect them. It is advised to be active in communicating up (and down) the supply chain to avoid unpleasant surprises. Substances which are not registered will no longer be available on the EU market. 

Lapide (2004) proposed a list of dozen factors that can help to implement an effective S OP process that maintains exceptional supply chain operational performance over time. The factors are listed below and are detailed in the reference provided ... 

Same as in level 4, but in addition, there is a portfolio optimization tool that support the execution of the entire process, manage exceptions and project timeline for SKU retirement across the supply chain (from customers to suppliers). 

Project logistics chain Efficient at project supply and execution Integrates multiple suppliers to the project Like nano-chain except for project environment 2... 

Supply Chain Event Management (SCEM) Software feature that monitors supply chain transaction data for predefined exceptions or events that require intervention. An example could be a late order. In such a case, the SCEM software would alert designated parties to inform them and suggest interventions. 

The information structure In the basic form of the supply chain, day-to-day exchange of information is not possible, except for order placement. On the other hand, in a collaborative forecasting setting, sharing of forecast data and inventory status may be possible. Some of the models we shall present later are quite flexible in terms of their capability of handling a variety of information structures. We shall generally assume that a fair amount of static information is commonly known to the members of the supply chain. This includes the cost structure of the supply chain, the characteristics of the demand process, the types of forecasting processes used at each member s location. 

AirSupply is a central aerospace SCM platform that facilitates secured and traceable communication across companies and provides valuable assistance at both operational and management level. As a result, processes with external partners are more transparent and dependable while various alert mechanisms allow exception-based management of the supply chain. It is based on technology from SupplyOn, a specialist in cross-company supply chain collaboration which is already established in the automotive industry. In close cooperation with BoostAeroSpace, SupplyOn s platform has been adapted to meet aU requirements specific to the aerospace industry. 

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