An Investigation on Centralized and Decentralized Supply Chain Scenarios at the Product Design Stage to Increase Performance

2011 ◽  
Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan
Keyword(s):  
Supply Chain ◽  
Product Design ◽  
Supplier Selection ◽  
New Product ◽  
Design Stage ◽  
Supply Chain Network ◽  
Cost Performance ◽  
Decentralized Supply Chain ◽  
Detail Design ◽  
Supplier Involvement

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.

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
Keyword(s):  
Supply Chain ◽  
Product Design ◽  
Supplier Selection ◽  
Supply Chain Design ◽  
Simultaneous Optimization ◽  
Design Stage ◽  
Supply Chain Performance ◽  
Bicycle Industry ◽  
Key Factor ◽  
Optimization Methodology

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.

A Small to Medium-Size Enterprise Oriented Methodology for Optimizing Product and Supply Chain Design Decisions

2010 ◽  
Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Product Design ◽  
Supplier Selection ◽  
Supply Chain Design ◽  
Operational Performance ◽  
Design Stage ◽  
Medium Size ◽  
Supply Chain Performance ◽  
Chain Management

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.

An Investigation of Product Modularity and Supply Chain Performance at the Product Design Stage

2011 ◽  
Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan
Keyword(s):  
Supply Chain ◽  
Product Design ◽  
Supply Chain Design ◽  
Design Stage ◽  
Supply Chain Performance ◽  
Design Decisions ◽  
Cost Performance ◽  
Design Concepts ◽  
Supply Chain Risks ◽  
The Impact

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.

Efficiency Evaluation of Supply Chain Network Using a Framework Based on DEA and Seller-Buyer Structure

2020 ◽  
Vol 37 (06) ◽  
pp. 2050029 ◽  
Author(s):  
Hassan Arabshahi ◽  
Hamed Fazlollahtabar ◽  
Leila Maboudi
Keyword(s):  
Supply Chain ◽  
Supplier Selection ◽  
Selection Procedure ◽  
Point Of View ◽  
Decision Makers ◽  
Efficiency Evaluation ◽  
Supply Chain Network ◽  
Stage Model ◽  
Proposed Model ◽  
Efficient Portfolios

This paper aims to develop a DEA-based framework to evaluate the efficiency of the supply chain based on the seller–buyer structure and with respect to win–win strategy. This is a bi-stage model employing the CCR model in the forms of input-oriented and output-oriented considering the intermediate measures for two different conditions under a centralized point of view. The obtained results from the extension of this model to supply chain network lead to introduce “efficient path” concept being a path including different components of the supply chain that are efficient in terms of DEA. Other kinds of proper information provided by the proposed model can help the managers and decision-makers of the supply chain field in supplier selection procedure and making efficient portfolios and collaborations across the supply chain network.

A multi-objective optimization model for sustainable supply chain network with using genetic algorithm

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reza Ehtesham Rasi ◽  
Mehdi Sohanian
Keyword(s):  
Supply Chain ◽  
Performance Indicators ◽  
Supplier Selection ◽  
Supply Chain Network ◽  
Sustainable Supply Chain ◽  
Multi Objective Optimization ◽  
Content Type ◽  
Sustainability Performance ◽  
Multi Objective ◽  
Sustainable Supplier Selection

Purpose The purpose of this paper is to design and optimize economic and environmental dimensions in a sustainable supply chain (SSC) network. This paper developed a mixed-integer linear programing (MILP) model to incorporate economical and environmental data for multi-objective optimization of the SSC network. Design/methodology/approach The overall objective of the present study is to use high-quality raw materials, at the same time the lowest amount of pollution emission and the highest profitability is achieved. The model in the problem is solved using two algorithms, namely, multi-objective genetic and multi-objective particle swarm. In this research, to integrate sustainable supplier selection and optimization of sustainability performance indicators in supply chain network design considering minimization of cost and time and maximization of sustainability indexes of the system. Findings The differences found between the genetic algorithms (GAs) and the MILP approaches can be explained by handling the constraints and their various logics. The solutions are contrasted with the original crisp model based on either MILP or GA, offering more robustness to the proposed approach. Practical implications The model is applied to Mega Motor company to optimize the sustainability performance of the supply chain i.e. economic (cost), social (time) and environmental (pollution of raw material). The research method has two approaches, namely, applied and mathematical modeling. Originality/value There is limited research designing and optimizing the SSC network. This study is among the first to integrate sustainable supplier selection and optimization of sustainability performance indicators in supply chain network design considering minimization of cost and time and maximization of sustainability indexes of the system.

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