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Article
Publication date: 1 August 2003

Woon Kian Ng, Rajesh Piplani and S. Viswanathan

End‐user demand information suffers from delay and distortion as it moves upstream in a supply chain. Co‐ordination between organisations in the supply chain, through…

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1671

Abstract

End‐user demand information suffers from delay and distortion as it moves upstream in a supply chain. Co‐ordination between organisations in the supply chain, through sharing of demand information, is a possible solution to counter this distortion. Modelling and analysing supply chains, however, is not an easy task, as the supply chains contain multiple echelons and are faced with uncertain demand and lead‐times. For multi‐echelon supply chains adopting different inventory and forecasting policies at the echelon level, simulation is the most appropriate analysis tool. In this paper, we describe the development of a simulation workbench for modelling and analysing multi‐echelon supply chains. The workbench facilitates study of inventory and forecasting policies practised by the echelons, and models different information exchange mechanisms adopted by them. An experiment conducted, to test the workbench and demonstrate its capabilities, confirms that the workbench is a useful tool for gaining valuable insights into information exchange in a particular supply chain.

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Integrated Manufacturing Systems, vol. 14 no. 5
Type: Research Article
ISSN: 0957-6061

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Article
Publication date: 8 November 2011

Matloub Hussain and Paul R. Drake

The purpose of this paper is to understand the effect of batching on bullwhip effect in a model of multi‐echelon supply chain with information sharing.

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2831

Abstract

Purpose

The purpose of this paper is to understand the effect of batching on bullwhip effect in a model of multi‐echelon supply chain with information sharing.

Design/methodology/approach

The model uses the system dynamics and control theoretic concepts of variables, flows and feedback processes and is implemented using iThink® software.

Findings

It has been seen that the relationship between batch size and demand amplification is non‐monotonic. Large batch sizes, that when combined in integer multiples can produce order rates that are close to the actual demand, produce little demand amplification, i.e. it is the size of the remainder of the quotient that is the determinant. It is further noted that the value of information sharing is greatest for smaller batch sizes, for which there is a much greater improvement in the amplification ratio.

Research limitations/implications

Batching is associated with the inventory holding and backlog cost. Therefore, future work should investigate the cost implications of order batching in multi‐echelon supply chains.

Practical implications

This is a contribution to the continuing research into the bullwhip effect, giving supply chain operations managers and designers a practical way into controlling the bullwhip produced by batching across multi‐echelon supply chains.

Originality/value

Previous similar studies have used control theoretic techniques and it has been pointed out that control theorists are unable to solve the lot sizing problem. Therefore, system dynamic simulation has been applied to investigate the impact of various batch sizes on bullwhip effect.

Details

International Journal of Physical Distribution & Logistics Management, vol. 41 no. 10
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 6 September 2011

Matloub Hussain and Paul R. Drake

The purpose of this paper is to analyze the effect of batching on bullwhip effect in a model of multi‐echelon supply chain with information sharing.

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2344

Abstract

Purpose

The purpose of this paper is to analyze the effect of batching on bullwhip effect in a model of multi‐echelon supply chain with information sharing.

Design/methodology/approach

The model uses the system dynamics and control theoretic concepts of variables, flows, and feedback processes and is implemented using iThink® software.

Findings

It has been seen that the relationship between batch size and demand amplification is non‐monotonic. Large batch sizes, when combined in integer multiples, can produce order rates that are close to the actual demand and produce little demand amplification, i.e. it is the size of the remainder of the quotient that is the determinant. It is further noted that the value of information sharing is greatest for smaller batch sizes, for which there is a much greater improvement in the amplification ratio.

Research limitations/implications

Batching is associated with the inventory holding and backlog cost. Therefore, future work should investigate the cost implications of order batching in multi‐echelon supply chains.

Practical implications

This is a contribution to the continuing research into the bullwhip effect, giving supply chain operations managers and designers a practical way into controlling the bullwhip produced by batching across multi‐echelon supply chains. Economies of scale processes usually favor large batch sizes. Reducing batch size in order to reduce the demand amplification is not a good solution.

Originality/value

Previous similar studies have used control theoretic techniques and it has been pointed out that control theorists are unable to solve the lot sizing problem. Therefore, system dynamic simulation is then applied to investigate the impact of various batch sizes on bullwhip effect.

Details

International Journal of Physical Distribution & Logistics Management, vol. 41 no. 8
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 16 March 2012

Amik Garg and S.G. Deshmukh

A number of approaches have been suggested in the literature for maintenance performance measurement, including use of the balanced scorecard (BSC). However, its…

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1196

Abstract

Purpose

A number of approaches have been suggested in the literature for maintenance performance measurement, including use of the balanced scorecard (BSC). However, its application towards assessing maintenance contribution to business objectives is limited. Currently, a framework integrating maintenance activities in a supply chain environment is lacking in the literature. The purpose of this paper is to develop a maintenance performance measurement framework using BSC for multi echelon repair inventory systems (MERIS) comprising of modular electronic equipment. The paper also suggests a large number of performance measures/indicators (PMs/PIs) pertaining to both maintenance and supply chain components including a few BSC implementation issues for such types of supply chains.

Design/methodology/approach

The paper analyses a base model of a large maintenance organization and after carrying out SWOT analysis, identifies strategic themes/objectives for performance measurement. Performance measures for various objectives are identified for MERIS and implementation strategy including cascading of BSC is suggested. The developed performance measurement model is also validated using an action research (AR) based approach.

Findings

A performance measurement system (PMS) for MERIS using BSC approach has been developed and an implementation strategy suggested. AR methodology is used for developing BSC for an organization using the selected performance measures. The importance of cause‐effect relationships between various performance objectives and measures is also established.

Research limitations/implications

Quantification of each of the developed PMs/PIs and establishing an effective information system for MERIS are the limitations of the present work and may be taken up for more research.

Practical implications

The paper will be useful for practitioners in the field of MERIS of electronic repairables wherein relevant PMs/PIs can be selected for implementation as per the requirement of the application.

Originality/value

The paper is of value by being original, as no work towards performance measurement of MERIS using BSC concept (as applicable for non‐profit organizations like military, government, NGOs etc) is reported in literature so far. The paper is relevant in this context and its contribution lies in the area of performance measurement.

Details

Journal of Modelling in Management, vol. 7 no. 1
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 9 August 2011

Thi Le Hoa Vo and Daniel Thiel

The purpose of this paper is to study the behaviour of a food supply chain possessing two originalities, i.e. a singular structure (40‐day upstream push and 24‐hour…

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1402

Abstract

Purpose

The purpose of this paper is to study the behaviour of a food supply chain possessing two originalities, i.e. a singular structure (40‐day upstream push and 24‐hour downstream pull) and one that suffers from simultaneous fluctuations in raw material supply capacities (due to epizooty) and customer demand (due to customer anxieties and fears) caused by a sanitary crisis.

Design/methodology/approach

A simulation model based on the system dynamics principles of Forrester is developed and applied to the French chicken meat supply chain suffering an Avian Influenza crisis.

Findings

This model first enables one us to study the regulation mechanisms of the chain that will improve understanding of the supply chain behaviour under environmental perturbations. A what‐if analysis is then implemented to examine the supply chain stability and the influence of flexibility adjustment times, inventory coverage time, slaughtered chicken buffer size and smoothing policies on the supply chain performance in different crisis fluctuation rate scenarios in order to propose necessary logistic policy enhancements.

Research limitations/implications

This work will improve one's knowledge about the buffer inventory problem and the global stability of this multi‐echelon push‐pull supply chain.

Practical implications

The model can be used as a decision system support which aims to minimise the additional costs due to stock level increases as demand decreases as well as exceptional external purchasing sparked by the lack of available products when there is a sudden hike in demand. The research can help decision‐makers of fresh food push‐pull supply chains when they are facing such crises by using both cybernetic representation and computer simulation.

Originality/value

This study deals with a specific food supply chain within the context of a sanitary crisis. A system dynamics model is presented for studying the behaviour of the entire food supply chain threatened by high uncertainties in the supply capacity as well as in customer demand.

Details

British Food Journal, vol. 113 no. 8
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 2 November 2012

Matloub Hussain, Paul R. Drake and Dong Myung Lee

The purpose of this paper is to quantify the effect of design parameters on the bullwhip effect and dynamic responses produced by a multi‐echelon supply chain with…

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1985

Abstract

Purpose

The purpose of this paper is to quantify the effect of design parameters on the bullwhip effect and dynamic responses produced by a multi‐echelon supply chain with information sharing.

Design/methodology/approach

Taguchi design of experiments and system dynamics simulation are used to quantify the impact of a supply chain's design parameters, including degree of information sharing, on its dynamic performance, and the interactions that occur as the parameter values are varied.

Findings

Quantified relationships between supply chain design parameters and dynamic performance, including the bullwhip effect, are presented. Two parameters in particular, time to adjust inventory error and production lead time, are shown to have a particularly strong impact on the order variance compared to other parameters. However, there are several other significant findings.

Research limitations/implications

Batching and capacity constraints are common causes of the bullwhip effect, but they are not included here. Future work should quantify the impact of these.

Practical implications

This paper presents a systematic way for quantifying and understanding the impact of supply chain design parameters on the bullwhip effect and dynamic responses, and their interactions. The experimental results provide practical understanding for supply chain managers.

Originality/value

Previous studies have identified causes of the bullwhip effect but little attention has been given to quantifying their impact and interactions. This paper makes a contribution towards filling this gap, using system dynamics simulation and Taguchi design of experiments.

Details

International Journal of Physical Distribution & Logistics Management, vol. 42 no. 10
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 17 January 2022

Arunachalam Narayanan and Rafay Ishfaq

Previous research has shown that firms are struggling to incorporate collaboration among supply chain partners. This paper presents a new approach to incorporate…

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23

Abstract

Purpose

Previous research has shown that firms are struggling to incorporate collaboration among supply chain partners. This paper presents a new approach to incorporate collaboration using metric-alignment. The analysis provides key insights regarding the usefulness of this approach to synchronize decision-making that leads to reduced bullwhip effect, less backordering and lower supply chain costs.

Design/methodology/approach

This research is based on a large-scale behavioral study comprising 556 participants in multi-echelon supply chain games. Supply chain decisions from these experiments are evaluated to study the impact of metric-alignment on managerial decision-making and the corresponding effects on the overall supply chain performance.

Findings

Results show that the metric-alignment approach offers an informal and self-enforced governance mechanism that changes managerial decision-making behaviors and improves supply chain performance. Results also show this approach to yield operational and financial benefits for all supply chain partners in the form of reduced bullwhip effect, less backordering and lower supply chain costs.

Originality/value

This is the first behavioral study of its kind that evaluates a new approach to incorporate collaboration in supply chains using metric-alignment. This approach avoids the shortcomings of current industry practices of using monetary penalties, such as on-time in-full (OTIF) mandates in supply contracts. The study shows that metric-alignment approach can improve overall supply chain performance while offering mutually beneficial rewards for all supply chain partners.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 24 May 2011

Travis Tokar, John A. Aloysius, Matthew A. Waller and Brent D. Williams

Communication between supply chain partners is critical for replenishment decision making. Decision support systems still require significant human decision making with…

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2345

Abstract

Purpose

Communication between supply chain partners is critical for replenishment decision making. Decision support systems still require significant human decision making with regard to replenishment when promotions are involved. The purpose of this paper is to study the impact of the sharing of information about the magnitude and timing of retail promotions on cost efficiency in the supply chain. The authors compare performance against theoretical benchmarks and draw conclusions significant to managers.

Design/methodology/approach

The subjects in Study 1, 30 undergraduate students at a large, US university, completed the experiment in a single session lasting approximately 60 minutes. The experiment involved a simple, multi‐period replenishment task, played as individuals, that was somewhat like the newsvendor game. Subjects in the experiment employed in Study 2 were senior‐level members of multiple departments from a large consumer products manufacturer in the USA. Participating departments included sales, operations, and supply chain. Self‐reported questionnaires revealed that the average subject had 15 years of experience with supply chain issues and seven years of experience with replenishment. The study was conducted in a single session, lasting approximately two hours, at the corporate headquarters of the participating company. In this experiment, 76 unique subjects participated.

Findings

Results from the single‐echelon study reveal the cost‐reducing effect of knowing the magnitude and timing of demand generated by a promotion. However, the poor performance, compared with the theoretical benchmarks, by respondents in the multi‐echelon study, even when the lead time per node is half that of the single‐echelon case and the subjects were experienced managers, highlights the complexity of the task that results from a lack of coordination.

Practical implications

Billions of dollars are spent on retail promotions each year. The management of the forecasting and replenishment of inventory for such promotions is difficult to automate and requires significant human decision making. The paper explores some key issues that are important in the replenishment decision‐making scenario when a promotion is involved.

Originality/value

Although the most obvious managerial recommendation for reducing the coordination and planning problems associated with promotions is simply to communicate more, the authors' research also suggests it may not be enough to alter performance. The results suggest that while communication is helpful, coordination may represent a more serious challenge.

Details

The International Journal of Logistics Management, vol. 22 no. 1
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 26 January 2021

Vivek Roy

Supply chain traceability and supply chain visibility have become a critical element for the effective management of contemporary complex supply chains. At their core is…

Abstract

Purpose

Supply chain traceability and supply chain visibility have become a critical element for the effective management of contemporary complex supply chains. At their core is information sharing, which has been acknowledged as a key prerequisite for logistics and supply chain performance, but whose notional underpinnings have not been delineated fully, leading to interchangeable deployment of these terms. Addressing the shortcoming, this paper aims to establish a contrast between the two notions.

Design/methodology/approach

Drawing from systematic review protocols, a multi-disciplinary review scope is constructed wherein the synthesis is strategized to primarily channel implications for the scholarship of logistics and supply chain management. The review is aimed at addressing two research objectives: (1) how the notions of traceability and visibility in supply chain management develop contrast in terms of their thematic emphasis and (2) to attain an integrative understanding of the notional convergence and divergence between supply chain traceability and visibility for raising strategic recommendations.

Findings

The review outcomes help contrast both the convergence and the divergence between traceability and visibility in the supply chain environment, and the differentiated but fundamental role that information sharing plays within these notions to outline why they are not interchangeable.

Originality/value

The originality of the findings lies in the conceptual synthesis of the relevant literature from both technological and non-technological perspectives to ultimately draw logistics and supply chain management implications. The review also points out key strategic considerations to demarcate the notional boundaries of traceability and visibility in future research.

Details

The International Journal of Logistics Management, vol. 32 no. 3
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 13 December 2017

Vahid Kayvanfar, Mohsen S. Sajadieh, S.M. Moattar Husseini and Behrooz Karimi

In this paper, a multi-objective multi-echelon supply-distribution model is proposed to optimize interactions of entities located within an Industrial Cluster (IC…

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303

Abstract

Purpose

In this paper, a multi-objective multi-echelon supply-distribution model is proposed to optimize interactions of entities located within an Industrial Cluster (IC) including small- and medium-sized enterprises (SMEs), using a third-party logistics provider (3PL)-managed supply-demand hub in industrial cluster (SDHIC) as a specific public provider of warehousing and logistics services.

Design/methodology/approach

The three considered objectives are minimizing the total logistics costs, maximizing the rate of demand satisfaction and maximizing the quality of delivery. Because some parameters such as “demand of customers” are naturally fuzzy because of incompleteness and/or inaccessibility of the needed information, the triangular fuzzy number is applied for all fuzzy parameters to handle this difficulty. The proposed model is primarily changed into a correspondent supplementary crisp model. To solve such a model, a revised multi-choice goal programming (RMCGP) approach is then used with the purpose of finding a compromise solution.

Findings

Experimental results demonstrate that all enterprises involved in such a supply chain benefit with several advantages using SDHIC by consolidating shipments and merging the storage space of inventories. The applicability of the presented model is shown by conducting these experiments over an applied industrial case study.

Originality/value

The main contributions of this research are proposing a practical mathematical approach to the supply chain of ICs using a specific public warehouse managed by a 3PL, called SDHIC, bridging the existing gaps with respect to the already published researches in this area by applying real-world assumptions such as uncertainty; optimizing the interactions of involved entities in the supply chain of an IC, comprising suppliers, SMEs as manufacturers and customers; minimizing the total incurred logistics costs to such a system through optimum usage of lands, facilities, labors, etc. and boosting the satisfaction of customers through maximizing the service level criteria, illustrating the positive consequences of cooperation of 3PL with the SMEs/manufacturers in an IC, showing the applicability of the adopted approach by implementing it on an applied industrial instance.

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