Supply production management

Seuring, S., and Muller, M., 2008. From a literature review to a conceptual framework for sustainable supply chain management, Journal of Cleaner Production, 16, 1699-1720. 

Finally, an interesting trend in supply-chain management is improving business practices by providing capabilities to improve service for customers. One such concept is capability to promise. The idea is not just to ensure that the product is available, but that the supply chain is capable of delivering the product. This involves, for instance, capability to rapidly change the schedule to accommodate the customer order and interact with the active plant schedule. Such a system was developed at Celanese Fibers, which is integrated with a Customer Order System and enabled via a Web browser. 

Based on the characterization of a supply chain, supply chain management (SCM) can be defined as a process oriented approach to procuring, producing, and delivering end products and services to customers. It includes sub-suppliers, suppliers, internal operations, trade customers, retail customers and end users. It covers the management of materials, information, and fund flows [2],... 

This article gives a short introduction to methods and tools based upon stochastic models that are applicable in supply chain management in order to give the reader a flavor of the potential of such methods. Typical terms we will deal with are service level, lot size, and production capacity. 

In addition to their use as stand-alone systems, LPs are often included within larger systems intended for decision support. In this role, the LP solver is usually hidden from the user, who sees only a set of critical problem input parameters and a set of suitably formatted solution reports. Many such systems are available for supply chain management—for example, planning raw material acquisitions and deliveries, production and inventories, and product distribution. In fact, the process industries—oil, chemicals, pharmaceuticals—have been among the earliest users. Almost every refinery in the developed world plans production using linear programming. 

The supply side of the value chain has been subject to research since the middle of the 20th century. The research field can be structured into logistics management, production management, procurement and sourcing, as well as supply chain management. 

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... 

Several simulation-based optimization models in the context of supply chain management can be found e.g. in the area of supply chain network optimization (Preusser et al. 2005) or to simulate rescheduling of production facing demand uncertainty or unplanned shut-downs (Tang/Grubbstrom 2002 Neuhaus/Giinther 2006). A basic approach of simulation-based optimization is presented by Preusser et al. 2005, p. 98 illustrated in fig. 24. 

Delfinann and Albers (2000) discuss further specifics of global supply chain management and network characteristics. They review characteristics such as geographical configuration and production spatial dispersion in global supply chains developed by Dicken (1998). 

Chemical-industry related literature addressing value chain management focuses on production and supply chain management as well as selectively procurement. Companies in the oil and chemical industries have been leaders for almost 50 years in the development and use of linear and mixed integer programming models to support decision-making at all levels of planning (Shapiro 2004). 

In literature simulation and simulation-based optimization is focused on supply chain management areas such as production (Smith 2003 Wullink et al. 2004), inventory (Siprelle et al. 2003), transportation or integrated supply chain networks (Preusser et al. 2005). 

Global profit optimization consistent with profit and loss statements demonstrates how to integrate the value and volume views in controlling, sales marketing, supply chain management, production and procurement. 

Amtzen B, Brown G, Harrison T, Trafton L (1995) Global Supply Chain Management at Digital Equipment Corporation. Interfaces 25 (1) 69-93 Asche F, Gjolberg O, Volker T (2003) Price relationships in the petroleum market an analysis of crude oil and refined product prices. Energy Economics 25 (3) 289-301... 

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