Supply chain objective

They proposed that logistics complexity is a driver to define the way a company manages and emphasizes the different supply chain objectives and decision areas, and based on this, a contingency approach for supply chain management is required, where different contextual conditions drive the way the supply chain choices are made and management activities are performed, as opposed to a best practice approach where there would be some universally applicable principles that would be appropriate regardless of the particular conditions under study. 

Figure 7.9 shows the case level process model. The process model includes both generic supply chain concepts and specific supply chain objects. The generic concepts are used to show that products are shipped firom suppliers to plants. The process model shows that in general products can be shipped to any of the distribution centers, as well as customers can be served from any of the distribution centers. However, at the level of specific supply chain objects, there are particular shipment and delivery restrictions. The model shows that frames from the frame... 

Different mechanisms are used to represent various entities from the supply chain object model. In the case of using ARENA (Rockwell 2001) as a simulation modeling tool, a supply chain unit object is represented as a standardized sequence of simulation modeling blocks, customer zones are represented using a differently structured sequence of simulation modeling blocks, products and materials are... 

Most often specialists and selected area (process) managers are involved in the achievement of the objectives. This was confirmed hy 57 per cent of analysed companies. Approximately one-third of respondents extended the supply chain excellence concept across the entire organisation. On the other hand, only 5 per cent of respondents stated that the representatives of coUahorators were involved in the achievement of supply chain objectives. A lack of involvement of all employees or collaborators may corroborate earlier conclusions on the concentration on integration... 

Naim (2000) Supply chain assessment methodology based on the supply chain proficiency model that can be used to set realistic supply chain objectives. 

The validation of any project is in the results achieved. This project allowed the company to meet or exceed all of the supply chain objectives initially set for the new distribution center ... 

The appropriate distribution network can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness. As a result, companies in the same industry often select different distribution networks. Next, we discuss industry examples that highlight the variety of distribution network choices and the issues that arise when selecting among these options. 

Supply chain objectives can be defined in different ways - in terms of customer service, time compression, and cost reductions - but in each process it is vitally important to prioritize these goals in order to identify the most critical ones. 

Proposition 3 Even though each actor has specific goals, the entire organization shottld share common supply chain objectives with regard to end customers and users. Failure to do so may result in ineffective decision-making, inappropriate strategies, inadequate measrtrement of performance and enhanced risk exposure. 

Whereas each step has a unique objective, electronic tools allow the steps to be accompHshed totally by the creator, thus changing the roles and responsibihties across the printing supply chain. 

To tackle these problems successfully, new concepts will be required for developing systematic modeling techniques that can describe parts of the chemical supply chain at different levels of abstraction. A specific example is the integration of molecular thermodynamics in process simulation computations. This would fulfill the objective of predicting the properties of new chemical products when designing a new manufacturing plant. However, such computations remain unachievable at the present time and probably will remain so for the next decade. The challenge is how to abstract the details and description of a complex system into a reduced dimensional space. 

The structure of a supply chain in the broader sense is comparable to a virtual corporation. A virtual corporation is a network of legally independent companies which cooperate for a limited time in order to achieve a given objective. 

The bullwhip effect motivated research and practice to focus on crosscompany supply chain optimization of information and material flows between companies. Several authors specify a set of objectives related to cross-company supply chain optimization ... 

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... 

Definitions for supply chain management reflect these objectives. The term supply chain management was first created by Oliver and Webber (1982). Since then, various definitions in literature can be found ... 

Supply Chain Collaboration and Negotiation since supply chain management across companies is a key objective, several authors focus on the management of the interface and collaboration between company supply chains towards a cross-industry supply chain the idea is that a collaboration between all companies from natural resource (e.g. metals) to end consumer product (e.g. cars) can lead to lower inventories, lowest costs and... 

Sustainability overall objective for human beings formulated by the United Nations in the 1990s is to ensure sustainable development for future generations chemical companies have already started to translate this objective into their industry practice with respects to products developed and sold, energy and natural resource efficiency in their processes, climate protection, corporate social responsibility for the workforce as well as stakeholders in production and consuming areas sustainability as an objective also already inspired operations research and supply chain literature (see for example Zhou et al. 2000 Al-Sharrah et al. 2002)... 

The value objective function is oriented at the company s profit and loss definitions. Guiding principle is to only use value parameters that can be found in the cost controlling of the company signed by controlling. Penalty costs and without currency and weighting factors being applied to steer optimization results but having no actual financial impact - as it can be often found in supply chain optimization models - do not meet this requirement. 

---