scholarly journals Disruptions in Information Flow: A Revenue Costing Supply Chain Dilemma

2008 ◽  
Vol 3 (1) ◽  
pp. 30-40
Author(s):  
Albert Munoz ◽  
Michael Clements
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Information Flow ◽  
Discrete Event ◽  
Accurate Information ◽  
Lost Sales ◽  
Sales Revenue ◽  
Event Simulation ◽  
Delay Times ◽  
Flow Of Information

The integration of supply chains as a mechanism for value creation is largely dependent on continuous flow of real time accurate information from the customer back upstream to the manufacturer. This ideal is often unachievable when disruptions in the flow of information and materials are known to regularly occur in some manufacturing supply chains. This paper focuses on quantifying the potential lost sales revenue attributed to information and material delays in a supply chain using discrete event simulation of the Beer Distribution Game. Results indicate a direct relationship between lost sales revenue and delay times. When exposed to several levels of delay such disruptions will cause loss of sales revenue. Interestingly, data collected suggests that information delays play a larger role than material delays as a contributor to lost sales revenue. This study provides a solid platform to further justify the implementation of technology such as RFID in an effort to decrease the level of lost sales revenue in manufacturing supply chains. The implementation of technologies that will increase the speed of information flow throughout a supply chain as well as increasing visibility of inventory in the supply chain can assist to minimise lost sales.

Network resilience modelling: a New Zealand forestry supply chain case

2020 ◽  
Vol 31 (2) ◽  
pp. 291-311
Author(s):  
Paul Childerhouse ◽  
Mohammed Al Aqqad ◽  
Quan Zhou ◽  
Carel Bezuidenhout
Keyword(s):  
Linear Programming ◽  
Supply Chain ◽  
Supply Chains ◽  
Discrete Event Simulation ◽  
Discrete Event ◽  
Network Resilience ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Event Simulation ◽  
Export Supply

PurposeThe objective of this research is to model supply chain network resilience for low frequency high impact disruptions. The outputs are aimed at providing policy and practitioner guidance on ways to enhance supply chain resilience.Design/methodology/approachThe research models the resilience of New Zealand's log export logistical network. A two-tier approach is developed; linear programming is used to model the aggregate-level resilience of the nation's ports, then discrete event simulation is used to evaluate operational constraints and validate the capacity of operational flows from forests to ports.FindingsThe synthesis of linear programming and discrete event simulation provide a holistic approach to evaluate supply chain resilience and enhance operational efficiency. Strategically increasing redundancy can be complimented with operational flexibility to enhance network resilience in the long term.Research limitations/implicationsThe two-tier modelling approach has only been applied to New Zealand's log export supply chains, so further applications are needed to insure reliability. The requirement for large quantities of empirical data relating to operational flows limited the simulation component to a single regionPractical implicationsNew Zealand's log export supply chain has low resilience; in most cases the closure of a port significantly constrains export capacity. Strategic selection of location and transportation mode by foresters and log exporters can significantly enhance the resilience of their supply chains.Originality/valueThe use of a two-tiered analytical approach enhances validity as each level's limitations and assumptions are addressed when combined with one another. Prior predominantly theoretical research in the field is validated by the empirical investigation of supply chain resilience.

scholarly journals Exiting the COVID-19 pandemic: after-shock risks and avoidance of disruption tails in supply chains

2021 ◽  
Author(s):  
Dmitry Ivanov
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Inventory Management ◽  
Supply Chain Coordination ◽  
Discrete Event ◽  
Inventory Costs ◽  
Event Simulation ◽  
Inventory Dynamics ◽  
Disruption Recovery ◽  
The Impact

AbstractEntering the COVID-19 pandemic wreaked havoc on supply chains. Reacting to the pandemic and adaptation in the “new normal” have been challenging tasks. Exiting the pandemic can lead to some after-shock effects such as “disruption tails.” While the research community has undertaken considerable efforts to predict the pandemic’s impacts and examine supply chain adaptive behaviors during the pandemic, little is known about supply chain management in the course of pandemic elimination and post-disruption recovery. If capacity and inventory management are unaware of the after-shock risks, this can result in highly destabilized production–inventory dynamics and decreased performance in the post-disruption period causing product deficits in the markets and high inventory costs in the supply chains. In this paper, we use a discrete-event simulation model to investigate some exit strategies for a supply chain in the context of the COVID-19 pandemic. Our model can inform managers about the existence and risk of disruption tails in their supply chains and guide the selection of post-pandemic recovery strategies. Our results show that supply chains with postponed demand and shutdown capacity during the COVID-19 pandemic are particularly prone to disruption tails. We then developed and examined two strategies to avoid these disruption tails. First, we observed a conjunction of recovery and supply chain coordination which mitigates the impact of disruption tails by demand smoothing over time in the post-disruption period. Second, we found a gradual capacity ramp-up prior to expected peaks of postponed demand to be an effective strategy for disruption tail control.

scholarly journals Assessing the Harmony of Supply Chain Actors in Live Animal Export: The Case of Gurage Zone, Ethiopia

2020 ◽  
pp. 88-93
Author(s):  
Samuel Gemechu ◽  
Meaza Getnet ◽  
Alemu Tereda
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Live Animal ◽  
Future Improvement ◽  
Common Planning ◽  
Flow Of Information ◽  
Culture Of Planning ◽  
Share Information

This article aims to study the harmony of supply chain actors in Live Animal Export at Gurage Zone, Ethiopia. This problem is relevant and researches in this sense can help policies that aim to improve the functioning of supply chains. Harmony of supply chain is the collaboration level of supply chain participants which is measured in terms of common planning and action guidelines they have, how they share information and generally the overall relations they have one another. Being descriptive in design, the study has targeted main live animals supply chain actors who are 719 producers, 6 traders and 2 exporters in Gurage zone from whom 257 producers were randomly chosen as a sample and all the traders and exporter have been used directly from whom questionnaires were collected from. The findings have proved that there is relatively consistent flow of information throughout the supply chain actors in live animals export in Gurage zone. Additionally there have been seen that there is a culture of planning jointly among the chain actors followed by having common updating means in case of plan fails to meet the expectations even though there exists problems of sitting for evaluation of actions made by the chain elements which is the key for future improvement of the export business. Finally it has been found that the overall harmony of the chain actors is attractive with some reservations.

Evaluation of postponement strategy in the production of table wine in Brazil: a discrete event simulation approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carolina Reis Gualberto ◽  
Lásara Fabrícia Rodrigues ◽  
Karine Araújo Ferreira
Keyword(s):  
Discrete Event Simulation ◽  
Discrete Event ◽  
Real Life ◽  
Minas Gerais ◽  
Future Research ◽  
Lost Sales ◽  
Wine Production ◽  
Content Type ◽  
Event Simulation ◽  
Postponement Strategy

Purpose The purpose of this paper is to develop an approach to evaluate the partial postponement strategy and compare it with postponement and make-to-stock (MTS) strategies in the production of table wine in wineries in the state of Minas Gerais (south-eastern Brazil). Design/methodology/approach An approach based on discrete event simulation was developed to support decision-making in the wine sector. Simulation models were used to analyse partial postponement, postponement and MTS strategies in wine production. These models were inspired by a typical table wine producer selected from an exploratory study conducted in 12 wineries of Minas Gerais state in Brazil. Findings Hybrid strategies, such as partial postponement, favour the advantages of postponement and MTS depending on the portion of semi-finished and finished goods adopted. Wine production characteristics favour postponement and partial postponement with high semi-finished product levels (customer order-driven product) because this allows companies to reduce their inventory of bottles, despite possible increases in lost sales and costs. MTS and partial postponement with high finished product levels (forecast-driven product) present higher costs with bottled wine storage; however, these strategies reduce lost sales and improve agility and reliability in deliveries. Research limitations/implications Future research should analyse the production of table wines in other regions of the country and the production of fine wines. Practical implications The findings suggest promising perspectives for real-life applications in wineries in Brazil and other countries. Originality/value Simulation techniques allow the analysis of production strategies in little-known industries, such as table wine production in Brazil. The approach developed is flexible enough to support decisions and to be adapted to companies’ and markets’ characteristics and to test specific strategies.

Fair Share of Supply Chain Responsibility for Low Carbon Manufacturing

2016 ◽  
pp. 235-266
Author(s):  
Yu Mei Wong
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Carbon Emissions ◽  
Accurate Information ◽  
Low Carbon ◽  
Embodied Carbon ◽  
Carbon Emissions Reduction ◽  
Consumer Responsibility ◽  
Embodied Carbon Emissions ◽  
Sharing Responsibility

Large amounts of carbon emissions and pollution are generated during the manufacturing process for consumer goods. Low carbon manufacturing has been increasingly enquired or requested by stakeholders. However, international trade blurs the responsibility for carbon emissions reduction and raises the questions of responsibility allocation among producers and consumers. Scholars have been examining the nexus of producer versus consumer responsibility among supply chains. Recently, there have been discussions on the share of producer and consumer responsibility. Both producer and consumer responsibility approaches have intrinsic shortcomings and are ineffective in curbing the rise of carbon emissions in supply chains. Shared responsibility based on the equity principle attempts to address these issues. This chapter relates a case study of carbon impact on China's export and economy with scenarios which show that the benefits of carbon reduction by producers can trickle down along the supply chain and motivate the sharing responsibility under certain circumstances. The share of producer and consumer responsibility for low carbon manufacturing can be enabled when embodied carbon emissions in goods and services are priced and such accurate information is available. A mechanism engaging the global participation is recommended. The author calls for further research on the system pricing embodied carbon emission, the universal standard to calculate the embodied carbon emissions and to disclose the information, and the way to secure global cooperation and participation.

scholarly journals Using Sensor-Based Quality Data in Automotive Supply Chains

Machines ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 53 ◽  
Author(s):  
Michael Teucke ◽  
Eike Broda ◽  
Axel Börold ◽  
Michael Freitag
Keyword(s):  
Supply Chains ◽  
Discrete Event ◽  
Transport Processes ◽  
Environmental Data ◽  
Sensor Data ◽  
Quality Data ◽  
Event Management ◽  
Event Simulation ◽  
Mutual Relations ◽  
Automotive Supply

In many current supply chains, transport processes are not yet being monitored concerning how they influence product quality. Sensor technologies combined with telematics and digital services allow for collecting environmental data to supervise these processes in near real-time. This article outlines an approach for integrating sensor-based quality data into supply chain event management (SCEM). The article describes relationships between environmental conditions and quality defects of automotive products and their mutual relations to sensor data. A discrete-event simulation shows that the use of sensor data in an event-driven control of material flows can keep inventory levels more stable. In conclusion, sensor data can improve quality monitoring in transport processes within automotive supply chains.

Supply Chain Simulation Modeling Using the Supply Chain Operations Reference Model

2003 ◽  
Author(s):  
Jeffrey W. Hermann ◽  
Edward Lin ◽  
Guruprasad Pundoor
Keyword(s):  
Supply Chain ◽  
Simulation Modeling ◽  
Reference Model ◽  
Discrete Event ◽  
Simulation Models ◽  
Supply Chain Performance ◽  
Simulation Framework ◽  
Event Simulation ◽  
Scor Model ◽  
Supply Chain Simulation

Simulation is a very useful tool for predicting supply chain performance. Because there are no standard simulation elements that represent accurately the activities in a supply chain, there exist a variety of approaches for developing supply chain simulation models. To improve this situation, this paper describes a novel supply chain simulation framework that follows the Supply Chain Operations Reference (SCOR) model. This framework has been used for building powerful simulation models that integrate discrete event simulation and spreadsheets. The simulation models are hierarchical and use submodels that capture activities specific to supply chains. The SCOR framework provides a basis for defining the level of detail in a way as to include as many features as possible, while not making them industry specific. This approach enables the reuse of submodels, which reduces development time. The paper describes the implementation of the simulation models and how the submodels interact during execution.

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