An Integrative Methodology for Product and Supply Chain Design Decisions at the Product Design Stage

2011 ◽  
Vol 133 (2) ◽  
Author(s):  
Ming-Chuan Chiu ◽  
Gül Okudan

Supplier selection is one of the key decisions in supply chain management. Companies need not only to make the “make” or “buy” decisions but also differentiate across potential suppliers in order to improve operational performance. Product design is an engineering based activity that realizes the customer requirements into functions of a new product. Many studies have pointed out that the integration of product and supply chain is a key factor for profitability and efficiency. However, most studies address supply chain performance after freezing the design of the product; only a few studies discuss when and how to incorporate supply chain decisions during product design. This paper presents a graph theory based optimization methodology to tackle this problem. The supplier selection issue is considered by evaluating its impact on both internal (e.g., ease of assembly) and external (e.g., transportation time) enterprise performances, which are aggregated as supply chain performance at the conceptual design stage. A case study in the bicycle industry demonstrates the advantages of this methodology. The presented mathematical programming formulation enables simultaneous optimization of both product design and supply chain design during the early design stages.

Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan

Today supply chain management has become one of the crucial factors for gaining and sustaining a competitive advantage. Enterprises that can more effectively manage their supply chain network have a higher likelihood of success in the marketplace. To this end, companies need not only make the “make” or “buy” decisions but also differentiate across potential suppliers in order to improve operational performance, and hence, supplier selection is one of the key decisions aiding effective supply chain management. Many studies have also pointed out that the integration of product and supply chain is a key factor for profitability and efficiency. However, prior studies mostly address supply chain performance after the creation of a new product; and only a few studies discuss when and how to incorporate supply chain decisions during product design. In the studies that cover product design, product family and product platform concepts are presented as enabling vehicles for mass customization, which require a considerable investment, and hence might be out of reach for small to medium size enterprises (SME). Accordingly, there is a need to develop a methodology that can consider manufacturability and supply chain issues at the product design stage. This paper presents a graph theory based optimization methodology to tackle this problem. The supplier selection issue is considered by evaluating its impact on both engineering (e.g., process planning) and operational performance (e.g., cost and time), which are then aggregated as the supply chain performance at the conceptual design stage. A case study in the bicycle industry demonstrates the advantages of this methodology. The synchronized structure of the supply chain and the product design results in simultaneous optimization of both design and supply chain decisions during the early design stages.


Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan

The benefit of integrating product design decisions and supply chain design decisions has been noticed by researchers. This integration can provide better communication between design teams and operations groups. Accordingly, potential supply chain risks can be highlighted before the launch of a new product. Modularization is one of the most critical product design and supply chain design decisions because it will determine the assembly sequence and potential suppliers of the product in the supply chain execution. However, the impact of modularity level on supply chain performance is still unclear. The objective of this study is to tackle this issue. The proposed method covers product design functions and supply chain design functions, hence the product design decisions and supply chain design decisions can be considered simultaneously. The supply chain performance of all design concepts is comprehensively investigated so as to analyze the impact of modularity on supply chain performance regarding lead-time and cost. The results show that increased modularity is advantageous for the time-based performance of supply chain network whereas decreased modularity demonstrates superiority on cost performance.


Author(s):  
Ming-Chuan Chiu ◽  
Saraj Gupta ◽  
Gu¨l E. Okudan

A supply chain connects product suppliers, manufacturers, as well as customers with the goal of managerial efficiency. Meanwhile, product design emphasizes the engineering efficiency of a product. Both supply chain management and product design have been drawing attention from numerous researchers. However, there has been only limited research on the integration of product design and supply chain. Despite this fact, there is significant potential for synergy in the integration of engineering and supply chain management, as well as managerial concepts into product design. In the paper, we present a methodology to form this synergistic connection. The methodology presented first generates functional requirements of a product. A design repository is then utilized to synthesize potential components of all sub-functions, providing multiple options for the potential conceptual designs. These concepts are screened by using a Design for Assembly (DfA) index and then a Design for Supply Chain (DfSC) index to select the best concept. An example from the bicycle industry is presented to demonstrate the benefit of supply chain considerations at the conceptual design phase.


Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan

Design for supply chain has become an essential consideration while designing a new product. Previous studies have pointed out that early supplier involvement can contribute to the success of the product development and enhance the competitive advantage of the enterprise. However, most of the studies coordinating supplier selection and supply chain configuration make these decisions during the detail design stage, which is the last phase of product design. This research aims to investigate the supply chain scenarios for their relevant performance at the conceptual design stage. The performance of different supply chain scenarios, centralized and decentralized, are compared and discussed. The results show that the decentralized supply chain scenario is advantageous for the time performance of supply chain network whereas the centralized supply chain scenario demonstrates superiority on cost performance.


2010 ◽  
Vol 09 (02) ◽  
pp. 129-144 ◽  
Author(s):  
AVINASH D. SARODE ◽  
V. K. SUNNAPWAR ◽  
P. M. KHODKE

The supply chain is an important element for the development of all industries. It can improve efficiency and effectiveness of product transfer and information sharing between complex hierarchies of all the tiers. Supplier selection is an important step in the supply chain design. In many existing decision models for supplier selection, only quantitative criteria are considered. However, supplier selection is a multi-objective problem containing quantitative as well as qualitative factors. Hence, this paper attempts to demonstrate the application of the Analytic Hierarchy Process (AHP) to overcome the above-mentioned problem. From an extensive analysis of the results, it is evident that selection of an appropriate supplier would result in improving effectiveness of supply chain.


2022 ◽  
Vol 355 ◽  
pp. 02034
Author(s):  
Shimin Wang ◽  
Zhimin Du

As the first process of the supply chain, fresh food supplier is the source of food safety, and also the key factor of the whole fresh food supply chain competition. AHP is used to establish the fresh food supplier selection index system. IT is used to calculate the weight of each evaluation index. Through the establishment of a comprehensive evaluation model, decision maker will comprehensively evaluate the strength of fresh food suppliers.


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