Supply Chain Design Approaches for Dual Demand Management Strategies

2016 ◽  
pp. 161-200
Author(s):  
Can Celikbilek ◽  
Gürsel A. Süer
Keyword(s):  
Supply Chain ◽  
Demand Management ◽  
Management Strategies ◽  
High Volume ◽  
Construction Sector ◽  
Supply Chain System ◽  
Make To Order ◽  
New Construction ◽  
Manufacturing Facilities ◽  
Engineer To Order

Supply chain management involves efficiently integrating suppliers, manufacturers, warehouses, stores, and customers. To survive in a highly competitive business environment, manufacturing, resource planning and scheduling and distribution operations are the significant drivers that need to be optimized within supply chain management. In this chapter, we design the supply chain system considering dual demand management strategies simultaneously for the same company, both engineer-to-order (ETO) and make-to-order (MTO). This research has been inspired from the window manufacturer which manufactures and distributes vinyl windows to meet new construction and replacement/remodeling sector demand in the State of Ohio. The company manufacturers windows based on make-to-order strategy for new construction projects and at the same time builds replacement windows to individual customer specifications in very small quantities to be used for replacement in homes. In this study, a total of 174 individual customers and six big contractors are considered throughout the State of Ohio. This paper proposes to separate products based on demand management strategy and develop different supply chain networks for each group. The idea is to design bigger facilities for high volume (make-to-order products) as transportation cost per unit is reduced due to economies of scale whereas to place smaller and more facilities for low volume engineer-to-order products to be closer to the clients where it may not feasible to carry a only few products over long distances. All in all, this study provides nested models to integrate both design and operational aspects of supply chain system in the presence high-volume and low-volume of window products. Moreover, all location, design and manufacturing operations are performed by considering new mathematical models (mixed-integer and integer mathematical models) and heuristics in engineer-to-order demand management environment. Normally-distributed, probabilistic demand environment is considered in our design and operational phase of the study. Preliminary results show that, each design has its own strategic advantage and outcome and the ultimate objective has been accomplished in our design in this study. Briefly, four manufacturing facilities are established to meet the demand of replacement/remodeling sector and two manufacturing facilities are situated to meet the demand of new construction sector. The results revealed that, 29 layered-cells and a total of 200 machines are opened and utilized for replacement/remodeling sector. Additionally, 15 layered-cells and a total of 104 machines are needed to cover the entire demand of new construction sector. Also for the new construction sector, three distribution centers are needed to facilitate the products over the region. In terms of daily cell loading and scheduling phase, the results are almost doubled in replacement/remodeling sector demand compared to new construction sector demand volume due to having more cells and machines in the new construction design strategy. The supply chain work involves location and number of manufacturing facilities, number and location of distribution centers, detailed design of manufacturing systems and performing scheduling to confirm the validity of the manufacturing system design.

Supply Chain Design Approaches for Dual Demand Management Strategies

2020 ◽  
pp. 491-526
Author(s):  
Can Celikbilek ◽  
Gürsel A. Süer
Keyword(s):  
Supply Chain ◽  
Demand Management ◽  
Management Strategies ◽  
High Volume ◽  
Construction Sector ◽  
Supply Chain System ◽  
Make To Order ◽  
New Construction ◽  
Manufacturing Facilities ◽  
Engineer To Order

Supply chain management involves efficiently integrating suppliers, manufacturers, warehouses, stores, and customers. To survive in a highly competitive business environment, manufacturing, resource planning and scheduling and distribution operations are the significant drivers that need to be optimized within supply chain management. In this chapter, we design the supply chain system considering dual demand management strategies simultaneously for the same company, both engineer-to-order (ETO) and make-to-order (MTO). This research has been inspired from the window manufacturer which manufactures and distributes vinyl windows to meet new construction and replacement/remodeling sector demand in the State of Ohio. The company manufacturers windows based on make-to-order strategy for new construction projects and at the same time builds replacement windows to individual customer specifications in very small quantities to be used for replacement in homes. In this study, a total of 174 individual customers and six big contractors are considered throughout the State of Ohio. This paper proposes to separate products based on demand management strategy and develop different supply chain networks for each group. The idea is to design bigger facilities for high volume (make-to-order products) as transportation cost per unit is reduced due to economies of scale whereas to place smaller and more facilities for low volume engineer-to-order products to be closer to the clients where it may not feasible to carry a only few products over long distances. All in all, this study provides nested models to integrate both design and operational aspects of supply chain system in the presence high-volume and low-volume of window products. Moreover, all location, design and manufacturing operations are performed by considering new mathematical models (mixed-integer and integer mathematical models) and heuristics in engineer-to-order demand management environment. Normally-distributed, probabilistic demand environment is considered in our design and operational phase of the study. Preliminary results show that, each design has its own strategic advantage and outcome and the ultimate objective has been accomplished in our design in this study. Briefly, four manufacturing facilities are established to meet the demand of replacement/remodeling sector and two manufacturing facilities are situated to meet the demand of new construction sector. The results revealed that, 29 layered-cells and a total of 200 machines are opened and utilized for replacement/remodeling sector. Additionally, 15 layered-cells and a total of 104 machines are needed to cover the entire demand of new construction sector. Also for the new construction sector, three distribution centers are needed to facilitate the products over the region. In terms of daily cell loading and scheduling phase, the results are almost doubled in replacement/remodeling sector demand compared to new construction sector demand volume due to having more cells and machines in the new construction design strategy. The supply chain work involves location and number of manufacturing facilities, number and location of distribution centers, detailed design of manufacturing systems and performing scheduling to confirm the validity of the manufacturing system design.

A Review on Strategic Positioning of Bottleneck around the Customer Order Decoupling Point and Issues on Production Planning in Supply Chain

2016 ◽  
Vol 16 (4) ◽  
pp. 243-254
Author(s):  
Muhammad Saeed ◽  
Samiya Loya ◽  
Adil Loya
Keyword(s):  
Supply Chain ◽  
Capacity Planning ◽  
Strategic Positioning ◽  
Shifting Bottleneck ◽  
Customer Order ◽  
Make To Order ◽  
Make To Stock ◽  
Engineer To Order ◽  
Operational Constraints ◽  
Specific Part

AbstractThe decoupling point separates part of the supply chain oriented towards customer orders from the part based on forecast planning. This paper focuses on identification of bottlenecks and their positioning with respect to customer order decoupling point (CODP) in supply chain continuum. The research is based on a conceptual model that separates engineer to order (ETO), make to order (MTO), assemble to order (ATO) and make to stock (MTS) by a decoupling point. The important feature of this paper is that supply, demand and operational constraints are allocated in specific part of the supply chain, making it more versatile. Shifting bottleneck concepts, including impact of bottleneck position and issues concerning production and capacity planning, are studied extensively to stabilize the supply chain and reduce its complexity.

Introduction to Supply Chain Management and Multimodal Logistics

2019 ◽  
pp. 1-28
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Chain Management ◽  
Cost Leadership ◽  
Make To Order ◽  
Leadership Strategy ◽  
Make To Stock ◽  
Engineer To Order ◽  
Focus Strategy ◽  
Cost Leadership Strategy

This chapter provides an understanding of basic essence of supply chain management. It introduces a multi-dimensional facet of supply chain management. A typical supply chain has at least three entities, that is, the supplier, the firm, and its customer. The inter-link between these three entities comprises three primary components of a supply chain, namely, the inbound or upstream supply chain, internal supply chain, and outbound or downstream supply chain. However, in a real-life scenario, many firms (especially in case of large and complex firms), the suppliers, and production centres are more than one. This increases the complexity of the supply chain structure. This concept has been introduced in this chapter. The drivers of supply chain have been categorized under strategic and operational drivers. This aspect has been explained, with examples. The chapter discusses the enablers and inhibitors of a supply chain of a firm. It proceeds to explain the issues in assessing and integrating the drivers, enablers, and inhibitors in the supply chain planning process. Bull whip and snow ball effects are two important outcomes of an inefficient supply chain. These concepts have been introduced here. Finally, the chapter concludes by laying down the objectives and the strategies of supply chain management. It prioritizes the focus of supply chain management, stating that customers come first followed by cost optimization. The chapter discusses on the ways to make supply chain agile and flexible. Supply chains are always prone to disruptions; hence, this chapter talks about a resilient supply chain. Next to customer, cost is an important element that enables a firm to keep its price competitive and be profitable. Here the concept of a lean supply chain has been discussed, a way to minimize waste and hence reduce cost. Supply chain management varies with firms' business strategy. The firm may choose to follow either a cost-leadership strategy or a differentiation or a focus strategy and thus would accordingly adopt push or pull or push-pull (supply chain) strategy. In case of cost-leadership strategy, the firm is expected to follow “make-to-stock” (operations) strategy; in case of differentiation strategy it would adopt “make-to-order” strategy; and for focus strategy the firm embraces “engineer-to-order” strategy. This chapter discusses these aspects to correlate the different dimensions of business and its supply chain management. Firms now are focussing on global operation to leverage on opening up of economy, enabling them to lower the cost of operations and achieve the desired quality. Besides, globalisation has also led to widening of market coverage. A brief introduction to global logistics management has been made in this chapter to emphasise on operationalization of a firms' global supply chain.

scholarly journals Production -Marketing Coordination under Demand and Lead -Time Uncertainty

2020 ◽  
Author(s):  
Cuiling Ran ◽  
Wei He
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Pure Strategy ◽  
Order Quantity ◽  
Supply Chain System ◽  
Nash Game ◽  
System Parameters ◽  
Strategy Equilibrium ◽  
Make To Order ◽  
Lead Time Uncertainty

In this paper, we consider a make-to-order supply chain which satisfies demand that is dependent on both price and quoted lead -time. The manufacturer chooses the lead -time and the order quantity, and the retailer sets the revenue shares. The interactions between the manufacturer and the retailer are modelled as a Nash Game, and the existence and uniqueness of pure strategy equilibrium are demonstrated. A mechanism that enables the supply chain to coordinate the decisions of the members is developed. Lastly, we also analyze how the supply chain system parameters impact the optimal supply chain decisions and the supply chain performance.

scholarly journals Demand Management Strategies in Services Industry and Measuring its Impact on Company Performance

2021 ◽  
Author(s):  
Renu L Rajani ◽  
Githa S. Heggde ◽  
Rupesh Kumar
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Demand Management ◽  
Management Strategies ◽  
Company Performance ◽  
Competitive Performance ◽  
Demand Planning ◽  
Services Industry ◽  
Forecasting Techniques

Abstract This study explores the relationships between selected Supply Chain Risks (SCRs), use of Demand Management Strategies (DMS) in services industry and impact on Company performance. An empirical framework is proposed in which presence of SCRs influences use of DMS during peak and lean demand. Use of these options is related to improved company performance, i.e. Supply Chain (SC) competitive performance, customer satisfaction, and financial performance. The empirical tests using a Structured Equation Model (SEM) were carried out based on data from survey of 439 services businesses in India covering 10 services industry groups. The results demonstrate the contingent relationship between SCRs and company performance and use of DMS as mediator. The presence of demand variability risk influences the use of Demand Planning and Forecasting techniques and Controlling of customer arrival during peaks. Use of Demand Planning and Forecasting techniques enhances SC Competitive performance. Controlling customer arrival during peaks improves financial performance. Mismatch of Capacity against demand (unused capacity) leads to use of techniques to influence demand during lean periods which in turn improves SC performance, customer satisfaction, as well as financial performance. Presence of delivery quality risk does not influence use of DMS.

scholarly journals Dynamic Adjustment Mechanism and Differential Game Model Construction of Mask Emergency Supply Chain Cooperation Based on COVID-19 Outbreak

2021 ◽  
Vol 13 (3) ◽  
pp. 1115
Author(s):  
Shufan Zhu ◽  
Kefan Xie ◽  
Ping Gui
Keyword(s):  
Supply Chain ◽  
Differential Game ◽  
Production Technology ◽  
Wholesale Price ◽  
Transfer Payment ◽  
Dynamic Adjustment ◽  
Supply Chain System ◽  
Government Subsidies ◽  
Technology Investment ◽  
The Impact

Incorporating the impact of the COVID-19 pandemic on the mask supply chain into our framework and taking mask output as a state variable, our study introduces the differential game to study the long-term dynamic cooperation of a two-echelon supply chain composed of the supplier and the manufacturer under government subsidies. The study elaborates that government subsidies can provide more effective incentives for supply chain members to cooperate in the production of masks compared with the situation of no government subsidies. A relatively low wholesale price can effectively increase the profits of supply chain members and the supply chain system. The joint contract of two-way cost-sharing contract and transfer payment contract can promote production technology investment efforts of the supply chain members, the optimum trajectory of mask production, and total profit to reach the best state as the centralized decision scenario within a certain range. Meanwhile, it is determined that the profits of supply chain members in the joint contract can be Pareto improvement compared with decentralized decision scenario. With the increase of production technology investment cost coefficients and output self-decay rate, mask outputs have shown a downward trend in the joint contract decision model. On the contrary, mask outputs would rise with growing sensitivity of mask output to production technology investment effort and increasing sensitivity of mask demand to mask output.

Quality safety of agricultural products in supply chain-computer simulation based on multi-agent system

2021 ◽  
pp. 1-8
Author(s):  
Wei Zhou ◽  
Maha Saad Metawea
Keyword(s):  
Computer Simulation ◽  
Supply Chain ◽  
Agricultural Products ◽  
Computer Simulation Model ◽  
Quality And Safety ◽  
Multi Agent System ◽  
Agent System ◽  
Supply Chain System ◽  
Multi Agent ◽  
Countermeasures And Suggestions

As is known that, one of the challenges in ensuring the quality and safety of agricultural products in China is how to organize plenty of scattered small farmers and integrate them into the modern agricultural products supply chain system. In this paper, in order to promote the tight integration of agricultural products supply chain, based on multi-agent system, a computer simulation model of agricultural products supply chain is proposed. Through a series of simulation experiments, the evolution of the organizational structure of the agricultural products supply chain, its impact on the quality and safety of agricultural products under different government regulations are explored and discussed in detail. It follows from these simulation results that the more long-term-contract farmers and sellers, the more conducive to the improvement of the quality and safety of agricultural products, and the corresponding countermeasures and suggestions are also provided.

scholarly journals A Model of Waste Price in a Symbiotic Supply Chain Based on Stackelberg Algorithm

2021 ◽  
Vol 13 (4) ◽  
pp. 1740
Author(s):  
Cheng Che ◽  
Xiaoguang Zhang ◽  
Yi Chen ◽  
Liangyan Zhao ◽  
Zhihong Zhang
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Comparative Analysis ◽  
Power Structure ◽  
Income Level ◽  
Power Structures ◽  
Optimal Price ◽  
Supply Chain System ◽  
Chain System ◽  
Revenue Model

By establishing a two-level symbiotic supply chain system consisting of one supplier and one manufacturer, we use Stackelberg method to analyze the optimal price and revenue model of supplier and manufacturer in the symbiotic supply chain under two power structures in which the supplier and manufacturer are dominant respectively, and analyze the influence of the degree of symbiosis and power structure on the model. Through comparative analysis, we find that: There is a relationship between the income level and the degree of symbiosis in the symbiotic supply chain. The change of power structure will affect the relative benefits of suppliers and manufacturers in the symbiotic supply chain. The manufacturer’s expected unit product revenue will affect the supply chain revenue when the manufacturer is dominant. Finally, the sensitivity analysis of relevant parameters is carried out through an example analysis, and the validity of the conclusion is verified. This paper has a guiding significance for the behavior of enterprises in the cogeneration supply chain.

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