• Title/Summary/Keyword: Efficiency of Supply Chain

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An Integrated Approach to Measuring Supply Chain Performance

  • Theeranuphattana, Adisak;Tang, John C.S.;Khang, Do Ba
    • Industrial Engineering and Management Systems
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    • v.11 no.1
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    • pp.54-69
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    • 2012
  • Chan and Qi (SCM 8/3 (2003) 209) developed an innovative measurement method that aggregates performance measures in a supply chain into an overall performance index. The method is useful and makes a significant contribution to supply chain management. Nevertheless, it can be cumbersome in computation due to its highly complex algorithmic fuzzy model. In aggregating the performance information, weights used by Chan and Qi-which aim to address the imprecision of human judgments-are incompatible with weights in additive models. Furthermore, the default assumption of linearity of its scoring procedure could lead to an inaccurate assessment of the overall performance. This paper addresses these limitations by developing an alternative measurement that takes care of the above. This research integrates three different approaches to multiple criteria decision analysis (MCDA)-the multiattribute value theory (MAVT), the swing weighting method and the eigenvector procedure-to develop a comprehensive assessment of supply chain performance. One case study is presented to demonstrate the measurement of the proposed method. The performance model used in the case study relies on the Supply Chain Operations Reference (SCOR) model level 1. With this measurement method, supply chain managers can easily benchmark the performance of the whole system, and then analyze the effectiveness and efficiency of the supply chain.

Which Node of Supply Chain Suffers Mostly to Disruption in the Pandemic?

  • NGUYEN, Tram Thi Bich
    • Journal of Distribution Science
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    • v.19 no.11
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    • pp.59-68
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    • 2021
  • Purpose: The Covid-19 pandemic has had excessively severe impacts on all the nodes and edges of any supply chain due to changes in consumer behaviours and lockdown restrictions from governments among countries. This article aims to provide a simulating experiment on how a supply chain deals with supply disruption risks by flexibility in the inventory level of each sector as a buffer considering the overall cost to fulfil demand in the market. Research design, data and methodology: Agent-based simulation techniques are used to determine the cost-efficiency and customer waiting time related to varying inventory levels of each member in the supply chain when using inventory buffers. Findings: This study has shown that any sudden changes in the inventory level of each sector are likely to impact the rest of the supply chain. Among all sectors, the wholesaler will be impacted more severely than others. Also, the manufacturing sector is the most suitable node to adjust inventory depending on its manufacturing ability. Conclusion: The findings of the study provide insightful implications for decision-makers to adjust inventory levels and policymakers to maintain manufacturing activities in the context of the pandemic restrictions to deal with the excessive demand and potential supply disruption risks.

Research on Developing a Model for Defense Supply Chain Quality Management (국방 공급망 품질경영 수준 측정을 위한 모형 개발 연구)

  • Kim, Hyeunggeun;Sung, Si-Il;You, HanJoo;Jung, Uk;Park, JongWoo;Jo, DongHyuk
    • Journal of Korean Society for Quality Management
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    • v.44 no.2
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    • pp.297-308
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    • 2016
  • Purpose: This paper treats a defense-supply chain quality management model for analyzing the Korea defense industry. Methods: Various literature, the quality collaboration index for supply chain management model proposed by Korean Standards Association and shared growth index presented by Korea Commission for Corporate Partnership are reviewed to develop the defense supply chain quality management index and model based on the method presented by Hafeez et al.(2006). In addition, based on the proposed model, we survey the supply chain quality management efficiency including focused group interviews in the defense industry. Results: We propose a defense-supply chain quality management index and model for analyzing the quality level between the parent companies and its partners. In addition, the results of applying the model are proposed to improve the quality of military items. Conclusion: A model is developed for improving the quality of military items. This proposed model will be adopted to enhance the quality of military items.

Study on the Execution of Green Logistics and Supply Chain Integration for by 3PL for Manufacturing Companies (3PL을 활용한 제조기업 공급사슬통합 및 녹색물류 실행을 위한 실증적 연구)

  • Lim, Janghyuk;Han, Young-Geun
    • Journal of the Korea Safety Management & Science
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    • v.15 no.4
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    • pp.233-243
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    • 2013
  • As companies were concerned with developing green logistics and environment, most logistics concerned functions like packaging, loading, storage, transportation and IT studies are active in study. Even if active in research studies, companies still recognized that logistics cost increases as green concepts are applied. For the efficient execution of green logistics management, it is absolutely necessary but difficult to build an optimal logistics system where each function is smoothly interacted through the proper integration and the link of various logistics functions and partners. This study aims to development of green logistics through integration of supply chain functions and partners. With this aim of study, case studies with analysis of embodiment, planning and operations for supply chain of companies are carried out.

Development of a Smart Supply-Chain Management Solution Based on Logistics Standards Utilizing Artificial Intelligence and the Internet of Things

  • Oh, Am-Suk
    • Journal of information and communication convergence engineering
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    • v.17 no.3
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    • pp.198-204
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    • 2019
  • In this study, the author introduces a supply-chain management (SCM) solution that connects suppliers, manufacturers, customers, and other companies within a transactional relationship to enable efficient inventory management and timely product supply, which ultimately maximizes corporate profits. This proposed solution exploits Fourth Industrial Revolution technologies, such as artificial intelligence (AI) and the Internet of Things (IoT), which provide solutions to complex management issues generated by the broader market. The goal of the current study was to develop an advanced and intelligent smart SCM solution that complies with logistics standards, to enhance the visibility, safety, and efficiency of a supply chain made up of manufacturers and suppliers. This smart SCM solution aims at maximizing corporate profits through efficient inventory management and timely supply of products, and solves the complex management problems caused by operating within a wide range of markets.

The Impact of Severe Weather and Climate Change on Lean Supply Chains

  • Lee, DonHee
    • Journal of Korea Society of Industrial Information Systems
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    • v.23 no.3
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    • pp.117-129
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    • 2018
  • This study examines the impact of severe weather on lean supply chains. First, this paper reviewed the literature on the disruptions and damages that severe weather events cause on supply chain. Then, several recent examples of lean supply chain disruptions due to severe weather were discussed. The results of the study indicated that the frequency of weather related disasters is increasing and extreme weather events will increase potential risks to supply chains. First, building organizational resilience will help firms look beyond efficiency and profits in managing lean supply chains. Second, the concept of sole sourcing may need rethinking to maintain a supply chain that is lean and resilient. Third, organizations must plan ahead for supply chains in unpredictable weather. Fifth, communication is a key for anticipating and avoiding the impact of severe weather. This study proposes of a set of strategies, both theoretical and practical, that business firms should develop to effectively prevent and respond to severe weather related disruptions in lean supply chains.

The Effect of Supplier Dependence on Relationship Performance: Focusing on Supply Chain Relationships and Communication Practices (공급사 의존도가 관계성과에 미치는 영향: 공급사슬 관계와 의사소통 관행을 중심으로)

  • Lee, DonHee
    • Journal of Korea Society of Industrial Information Systems
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    • v.24 no.4
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    • pp.37-52
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    • 2019
  • This study examines the effects of supplier dependence on supply chain relationships, communication practices, and relationship performance in manufacturing-part companies. The structural equation modeling technique with AMOS 23.0 was used to test hypotheses using data collected in the research model. The results show that supplier dependence positively affects supply chain relationships and communication practices. In addition, the results confirm the effect of supply chain relationships and communication practices on relationship performance. It is also demonstrated that supply chain relationships and communication practices through supplier dependence play a key role in improving relationship performance for supply chain management. Furthermore, it contributes to the practice of supply chain management as well as to efficiency through collaborative activities of supplier-buyer in the supply chain processes.

A Study on SCM Improvement Plan using the Internet of Things (사물인터넷을 활용한 SCM 고도화 방안에 대한 연구)

  • Kim, MinJune;KIM, YoungKil
    • Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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    • 2018.05a
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    • pp.553-554
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    • 2018
  • Supply Chain Management (SCM) is the overall process (component procurement, production planning, delivery, inventory control, etc.). It is the process from the supplier to the consumer until the raw material becomes the finished product. Basically, traditional supply chain management is primarily aimed at cost reduction and efficiency. However, considering only cost reduction and efficiency, it is not easy apply the center of 4th industry to Smart Factory. In this study, I propose a form of supply chain management network. It can be satisfy the security by using block chain and automatic control of each element by adding the internet of things.

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Supply Chain Coordination for Perishable Products under Yield and Demand Uncertainty: A Simulation Approach (수요와 수율의 불확실성을 고려한 공급망 조정)

  • Kim, Jin Min;Choi, Suk Bong
    • Journal of Korean Society for Quality Management
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    • v.46 no.4
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    • pp.959-972
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    • 2018
  • Purpose: This study developed a simulation model that incorporates the uncertainty of demand and yield to obtain optimized results for supply chain coordination within environmental constraints. The objective of this study is to examine whether yield management for perishable products can achieve the goal of supply chain coordination between a single buyer and a single supplier under a variety of environmental conditions. Methods: We investigated the efficiency of a revenue-sharing contract and a wholesale price contract by considering demand and yield uncertainty, profit maximizing ratio, and success ratio. The implications for environmental variation were derived through a comparative analysis between the wholesale price contract and the revenue-sharing contract. We performed Monte Carlo simulations to give us the results of an optimized supply chain within the environments defined by the experimental factors and parameters. Results: We found that a revised revenue-sharing contracting model was more efficient than the wholesale price contract model and allowed all members of the supply chain to achieve higher profits. First, as the demand variation (${\sigma}$) increased, the profit of the total supply chain increased. Second, as the revenue-sharing ratio (${\Phi}$) increased, the profits of the manufacturer gradually decreased, while the profits of the retailer gradually increased, and this change was linear. Third, as the quality of yield increased, the profits of suppliers appear to increased. At last, success rate was expressed as the profit increased in the revenue-sharing contract compared to the profit increase in the wholesale price contract. Conclusion: The managerial implications of the simulation findings are: (1) a strategic approach to demand and yield uncertainty helps in efficient resource utilization and improved supply chain performance, (2) a revenue-sharing contract amplifies the effect of yield uncertainty, and (3) revised revenue-sharing contracts fetch more profits for both buyers and suppliers in the supply chain.

Optimizing Bi-Objective Multi-Echelon Multi-Product Supply Chain Network Design Using New Pareto-Based Approaches

  • Jafari, Hamid Reza;Seifbarghy, Mehdi
    • Industrial Engineering and Management Systems
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    • v.15 no.4
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    • pp.374-384
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    • 2016
  • The efficiency of a supply chain can be extremely affected by its design which includes determining the flow pattern of material from suppliers to costumers, selecting the suppliers, and defining the opened facilities in network. In this paper, a multi-objective multi-echelon multi-product supply chain design model is proposed in which several suppliers, several manufacturers, several distribution centers as different stages of supply chain cooperate with each other to satisfy various costumers' demands. The multi-objectives of this model which considered simultaneously are 1-minimize the total cost of supply chain including production cost, transportation cost, shortage cost, and costs of opening a facility, 2-minimize the transportation time from suppliers to costumers, and 3-maximize the service level of the system by minimizing the maximum level of shortages. To configure this model a graph theoretic approach is used by considering channels among each two facilities as links and each facility as the nodes in this configuration. Based on complexity of the proposed model a multi-objective Pareto-based vibration damping optimization (VDO) algorithm is applied to solve the model and finally non-dominated sorting genetic algorithm (NSGA-II) is also applied to evaluate the performance of MOVDO. The results indicated the effectiveness of the proposed MOVDO to solve the model.