• Title/Summary/Keyword: Integrated Supply Chain Management

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The Effect of Asset Specificity, Information Sharing, and a Collaborative Environment on Supply Chain Management (SCM): An Integrated SCM Performance Formation Model (자산전용성과 협업환경하에서의 정보공유가 공급사슬에 미치는 영향 : 통합적 SCM 성과형성 모델)

  • Kim, Tae-Ryong;Song, Jang-Gwen
    • Journal of Distribution Science
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    • v.11 no.4
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    • pp.51-60
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    • 2013
  • Purpose - The objective of this paper is to investigate the effect of asset specificity, the level of information sharing, the importance of information sharing, and an integrated collaborative environment on supply chain performance. Research design, data, and methodology - Data collection was implemented as follows: questionnaires were distributed to 250 companies that have business ties with Halla Climate Control Corporation. The empirical study to test our hypothesis was based on statistical analysis (using SPSS 18.0 and AMOS 18.0). The hypothesis of this paper is that the asset specificity variable has positive effects on the following variables: Level of information sharing, the importance of information sharing, and integrated collaborative environment. Moreover the variables, the level of information sharing, and the importance of information sharing are strongly influenced by the variable integrated collaborative environment, and these when combined, have an effect on the dependent variable, supply chain performance. We tested our hypothesized model utilizing path analysis with latent variables. Results - According to the results of our analysis, hypothesis H1, which tests whether there is a relationship between asset specificity and the integrated collaborative environment, is supported at the 0.01 level. Hypotheses H2 and H3 were also confirmed, and asset specificity had positive effects (+) on the level of information sharing variable. The importance of the information sharing variable was statistically significant at the 0.01 level. Hypotheses H4 and H5 posited that the integrated collaborative environment variable would have a positive effect on the level of information sharing; the importance of information sharing variable was strongly supported statistically, with a significant p-value below. Moreover, the level of information sharing (H6), and the importance of information sharing (H7) variables also had a statistically relevant influence on supply chain performance. As a result, existence of a collaborative system between companies would influence supply chain performance by strengthening real-time information access and information sharing. Thus, it is important to construct a collaborative environment where information sharing among companies and cooperation is possible. Conclusions - First, with rapid changes in the business environment, it becomes necessary for enterprises to acquire the right information in order to properly implement SCM. For successful SCM, firms should understand the importance of collaboration with supply chain partners and an internally built collaboration system, which in turn will better promote a partnership commitment with suppliers as well as collaborative integration with buyers. A collaborative system, as we suggest in this paper, facilitates the maintenance of a long-term relationship of trust, and can help reinforce information sharing. Second, it is necessary to increase information sharing over time via a collaborative system so that employees of the suppliers become aware of the system. The more proactive and positive attitudes are towards such a collaborative system by the managerial group, the higher the level of information sharing will be among the users. Successful SCM performance is achieved by information sharing through a collaborative environment rather than by investing only in setting up an information system.

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Review of Vendor Managed Inventory: Investigation on How It Improves Supply Chain Performance

  • Ryu, Chung-Suk
    • Journal of Distribution Science
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    • v.14 no.9
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    • pp.47-64
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    • 2016
  • Purpose - This study reviews the past studies that have researched Vendor Managed Inventory (VMI) as a well-known supply chain collaboration program. The main goals of this study are to figure out how VMI brings significant benefits to the supply chain system and suggest additional areas that future studies would address to discover the true nature of VMI. Research design, data, methodology - This study conducts literature reviews on numerous studies that have researched VMI. The past studies are classified in terms of several main issues that have been commonly addressed by many researchers. This study also identifies three key collaborative features of VMI, which possibly explain why VMI improves the supply chain performance. Results - This study finds out that most past studies focused on a limited research issues about VMI. Many researchers have considered integrated decision making and information sharing to be key features that enables VMI to improve the supply chain performance. Conclusions - Based on the findings from the literature review, this study suggests that future studies on VMI take account of new research issues and pay attention to cost payment that researchers have rarely addressed.

A Multi-agent System based on Genetic Algorithm for Integration Planning in a Supply Chain Management (유전 알고리즘에 기반한 동적 공급사슬 통합계획을 위한 멀티 에이전트 시스템)

  • Park, Byung-Joo;Choi, Hyung-Rim;Kang, Moo-Hong
    • Journal of Intelligence and Information Systems
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    • v.13 no.3
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    • pp.47-61
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    • 2007
  • In SCM (supply chain management), companies are pursuing a new approach through which overall functions within the supply chain, ranging from material purchase to production, distribution, and sales are designed, planned, and managed in an integrated way. The core functions among them are production planning and distribution planning. As these problems are mutually related, they should be dealt with simultaneously in an integrated manner. SCM is large-scale and multi-stage problems. Also, its various kinds of internal or external factors can, at any time, dynamically bring a change to the existing plan or situation. Recently, many enterprises are moving toward an open architecture for integrating their activities with their suppliers, customers and other partners within the supply chain. Agent-based technology provides an effective approach in such environments. Multi-agent systems have been proven suitable to represent domains such as supply chain networks which involve interactions among manufacturing organization, their customers, suppliers, etc. with different individual goals and propriety information. In this paper, we propose a multi-agent system based on the genetic algorithm that make it possible to integrate the production and distribution planning on a real-time basis in SCM. The proposed genetic algorithm produced near optimal solution and we checked that there is a great difference in the results between integrated planning and non-integrated planning.

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An Implementing Direction of Collaborative Information System Infrastructure for Supply Chain Management of Regional Clusters (지역클러스터에서 공급망관리를 위한 협업적 정보시스템기반의 구현방향)

  • Yoon, Han-Seong
    • The Journal of Information Systems
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    • v.17 no.3
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    • pp.135-152
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    • 2008
  • Basically within a special regional area, a regional cluster seems to be based on core competencies of individual intra-cluster companies and collaboration among them. Information infrastructure has been emphasized as on one of competitive factors of a regional cluster, and it can be organized using collaboration system architecture integrated with each company's internal systems for efficient supply chain operation. As one of technical methods to prepare the system infrastructure supporting the collaboration of companies in a regional cluster, the Web Services can be effectively used. In this paper, a collaborative information system infrastructure for a regional cluster is suggested within the scope of supply chain management. And the efficiency of the proposed alternative is appraised with the features of a regional cluster.

A Comparison Study on Retailer-managed and Vendor-managed Inventory Policies in the Retail Supply Chain (소매점 공급사슬에서 소매점주도와 공급자주도 재고정책에 대한 비교 연구)

  • Hong, Sung-Chul;Park, Yang-Byung
    • Journal of Korean Institute of Industrial Engineers
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    • v.32 no.4
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    • pp.382-392
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    • 2006
  • Vendor-managed inventory policy(VMIP) is a supply-chain initiative where the supplier is authorized to manage inventories of items at retail locations. In VMIP, the supplier monitors sales and stock information at retail locations and makes decisions of inventory replenishment and transportation simultaneously. VMIP has been known as an effective supply chain strategy that can realize many of benefits obtainable only in a fully integrated supply chain. However, VMIP does not always lead to lower the supply chain cost. It sometimes generates the total supply chain cost higher than the traditional retailer-managed inventory policy (RMIP). In this paper, we perform a comparison study on RMIP and VMIP in the retail supply chain which consists of a single supplier and a number of retailers. We formulate mixed integer programming models for both RMIP and VMIP with vehicle routing problems and perform computational experiments on various test problems. Furthermore, we derive the conditions which guarantee the dominant position for VMIP with respect to total supply chain cost in the simple retail supply chain.

An Integrated Inventory Model for a Vendor-Buyer Supply Chain in a JIT Purchasing (다원자재를 고려한 구매업자와 공급업자간 공급사슬에서의 통합재고모형에 관한 연구)

  • Kim, Dae-Hong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.32 no.3
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    • pp.159-167
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    • 2009
  • In this paper, we consider a single-vendor single-buyer supply chain problem where a single vendor orders raw materials from its supplier, then using its manufacturing processes converts the raw materials to finished goods in order to deliver finished goods to a single buyer for effective implementation of Just-In-Time Purchasing. An integrated lot-splitting model of facilitating multiple shipments in small lots between buyer and supplier is developed in a JIT Purchasing environment. Also, an iterative heuristic solution procedure is developed to find the order quantity for finished goods and raw materials, and number of shipments between buyer and supplier. We show by numerical example that when the integrated policy is adopted by both vendor and buyer in a cooperative manner, both parties can benefit.

A Reference Model Based Framework for Supply Chain Collaboration (공급사슬 협업을 위한 참조모델 기반의 프레임워크)

  • Choi, Younghwan;Chae, Heekwon;Kim, Kwangsoo
    • Journal of Korean Institute of Industrial Engineers
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    • v.31 no.2
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    • pp.152-163
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    • 2005
  • The focus of enterprise collaboration of supply chain management, has changed from integrating and exchanging business information to integrating and managing business processes between business partners. However, the collaboration is difficult due to the inherent complexity such as diverse business processes and dynamic business environments. To settle these problems, a reference model based enterprise architecture framework for the collaboration of supply chains is proposed in this paper. The supply chain collaboration framework is composed of three reference models capturing the different views of supply chain collaboration: supply process reference model, service component reference model, and technology and standard reference model. As the framework adapts the OMG's metadata architecture, the processes in the supply chain can be extended and integrated with other value chains, such as design chains, when it is necessary. Using the proposed framework, business managers can rapidly integrate and manage their business processes with their suppliers and customers.

A Decision Support System for the Operations of Vending Machine Supply Chains in a Green Logistics Environment (녹색물류 환경에서 자판기 공급사슬 운영을 위한 의사결정지원시스템의 개발)

  • Park, Yang-Byung;Yoon, Sung-Joon
    • IE interfaces
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    • v.25 no.3
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    • pp.338-346
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    • 2012
  • Regarding the green environment, it is important to boost the spread of environmentally friendly vending machines and to operate the vehicles for their inventory replenishments while minimizing emissions of greenhouse gases. In general, the vending machine management company lacks capability to operate the supply chain effectively in an integrated way under the dynamic, complex, and stochastic environment. This paper presents a decision support system, termed DSSVM, for the operations of the general and smart vending machine supply chains with stock-out-based, one stage item substitution in a green logistics environment. The DSSVM supports the estimation of item demand and substitution probabilities, determination of operation parameters, supply chain analysis, what-if analysis, and $CO_2$ analysis for which various analytical models are employed.

Sustainable Development -An Application to Apparel Supply Chain Management- (지속 가능한 발전(Sustainable Development) -의류 공급 사슬에로의 적용-)

  • Kang Ji-Hye;Jin Byoung-Ho
    • Journal of the Korean Society of Clothing and Textiles
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    • v.30 no.6 s.154
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    • pp.829-839
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    • 2006
  • Sustainable development is generally defined as an approach that 'meets the needs of the present without compromising the ability of future generations to meet their own needs' (World Commission on Environment and Development: WCED, 1987, p. 43). The sustainable development is a holistic concept that encompasses three aspects: environmental protection, economic development, and social contribution. From the sustainable development perspective, environmental management must consider contributions to other economic and social aspects. In this sense, it differs from narrowed environmental management which focuses on only environmental impacts, and a well-being concept in Korea that mainly appeals to health. Recently, leading apparel firms, such as Nike, Otto, and Marks & Spencer, are increasingly adopting the environmental management to achieve the future competitive advantage. The environmental management can be achieved through integrated supply chain management. Despite of flowing importance of environmental supply chain management in practice, academic attention to this area has been seriously lacking. This study regards the environmental management by the sustainable development perspective as a solution for Korean apparel firms to solve their current sluggish growth. The purpose of this study was to provide Korean apparel firms with guidelines toward the environmental management based on extensive literature reviews and case studies. The paper started with two important research frameworks, the sustainable development and the environmental supply chain. Within the frameworks, the leading cases of the environmental management of Korean and foreign apparel firms were analyzed. Both macroscopic and microscopic applications of the environmental supply chain management for Korean apparel firms were suggested based on the analyses.

A Sensitivity Analysis of the Optimal Inventory Control for a Vertically Integrated Supply Chain (수직적으로 통합된 공급사슬을 위한 최적 재고 정책의 민감도 분석)

  • Kim, Engab
    • Journal of Korean Institute of Industrial Engineers
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    • v.30 no.3
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    • pp.197-204
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    • 2004
  • This paper deals with a supply chain with a company and its contractor that produces products by the OEM contract with the company. The supply chain of interest has two distinct features. First, the company is the supplier of raw material required in the production at the contractor. Second, the company and its contractor make a delivery shipment arrangement that the replenishment lead time is determined depending on demand process. We show that the optimal inventory policy is monotonically changed as either the replenishment setup cost or inventory holding cost becomes increased or decreased. We also present asymptotic properties of the optimal inventory policy when either the number of outstanding customer orders or the inventory level becomes very large.