divergent supply chain

This paper addresses the development of an inventory control mechanism and inventory rationing policies in a static divergent two-stage supply chain consisting of one single distributor and several retailers. Aimed at postgraduate students, researchers and practitioners, this book provides an in-depth knowledge of the dynamics of supply chains. • Bullwhip avoidance techniques increase the resilience and robustness of supply chains. In the following study, the terminology proposed by Lagodimos and Koukoumialos [1] is adopted, referring to rationing as the process ensuring the shipment of all the Addresses: College of Computation and Informatics, Saudi Electronic University, Tabuk, Saudi Arabia; Université de Tunis El Manar, F.S.T., LIP2-LR99ES18, 2092 Tunis, Tunisia ' Industrial . It involves decisions regarding production, inventory, internal transportation, sales and distribution to customers. 2017. Multi-criteria decision-making models in plannin prevention services / Yuncheol Kang, Yooneun Lee, Lisa M. Ulan, and Vittaldas V. Prabhu -- 12. Abstract: This article analyses a divergent supply chain consisting of a central warehouse and N nonidentical retailers. 58, No. Final products are stored at international depots, from where they are ready to be shipped to the markets. However, for an enterprise with divergent supply chain (DSC) and multiple product lines, to plan the . A . In divergent supply chains, such as in the oil industry, processing raw materials results in an outflow of multiple products. divergent supply chain comprising a manufacturer with sufﬁcient capacity serving a distributor, and the distributor in turn serving a set of retailers is considered in this study. They show that for single-echelon and serial inventory systems with identical customers providing the same demand lead times, perfect advance-order informa tion can be used to improve performance in exactly the same way as a reduction of the replenishment/supply lead time. Key Words: Serial Supply Chains, Divergent Supply Chains, Agent-Based Simulation, Shock Demand, Demand Variability, Demand Impulse . Brijesh Paul and C. Rajendran, Optimal and heuristic base-stock levels and rationing policy for a divergent supply chain, International Journal of Industrial and Systems Engineering 2010 - Vol. Some researchers [8], [45] analysed the impact of information sharing and forecasting models under different levels of demand patterns and suppliers capacity tightness on a divergent SC having one supplier and four retailers. As exciting as divergent supply chain strategies are, they are not, as yet, able to fulfill all supply chain requirements. Examples include aircrafts, construction industry, etc. supply chains with any number of N retail organisations. Compartir . Impacto. Bimodal Supply Chain. Divergence warns. Supply chain management allows modern enterprises to relax their own capacities and produce in a more flexible manner for diversified consumer demands. International supply chain networks play a prominent role in shaping the economic outlook of the world. Furthermore, the optimal order quantity, safety factors, lead time of buyers and shipment frequency per production cycle, Stock out plays an important role in supply chains; it reduces the service level of each member in a supply chain and causes high supply chain inventory cost. 1 Control Policies for Multi-echelon Inventory Systems with Stochastic Demand This article analyses a divergent supply chain consisting of a central warehouse and N nonidentical retailers. A class of capacitated lot sizing problems addressing process industries and discrete manufacturing industries: mathematicalModels and a heuristic . The supply chain consists of retailers ( i = 1), distributors ( i = 2) and one factory ( i = 3). myriad of complex and widely divergent supply chain bottlenecks, often spurred by acute under-invest-ments in supply chains. Home Publications Departments. Supply chain simulation modeling has been identified as a potential methodology toward increasing the efficiency of current systems to this end. Supply chain management allows modern enterprises to relax their own capacities and produce in a more flexible manner for diversified consumer demands. While divergent supply chain has a tree-like structure, where each facility has at most one predecessor, but any number of successors. Perishable products lose their value or deteriorate in a limited time, from the moment they are produced. 20, No. If we consider the retail supply chain to include the supplier, all inventory should be at the shop. It also investigates a two-echelon supply chain model with two manufacturers and two retailers to develop a competitive structure in grey stochastic demand.,Supply chain demand is considered as a stochastic phenomenon depending on the selling price of the product. The costs of Handling are mainly determined by the order sizes. The supply chain structure in IE is mainly serial (76%), followed by a divergent structure. A stakeholder analysis of divergent supply-chain trends for the European onshore and offshore wind installations; Save to my profile A stakeholder analysis of divergent supply-chain trends for the European onshore and offshore wind installations. 1. Examples of such supply chains include electro-mechanical systems such as motors; textiles; metal fabrications; and chemicals. Business trends such as the globalisation process and the increase of . A time-based dispatching and shipment consolidation policy is used at the warehouse in conjunction with real-time point-of-sale data and centralized inventory information. INTRODUCTION . Because distribution deals with a divergent supply chain it is not a case of simple replenishment. In this study the non-stationary demand distribution for customer is considered. Controlling Inventories in Divergent Supply Chains with Advance-Order Information. On this subject, the number of echelons analyzed in those supply chain structures tend to be uniform, where frequently, the articles analyzed supply chains with 4 or more echelons. Chapter 3, extends the single-echelon EOQ-model (Economic Order Quantity) to a multi-echelon divergent supply chain model. In divergent supply chains, such as in the oil industry, processing raw materials results in an outflow of multiple products. Downloadable (with restrictions)! The system can't perform the operation now. Applying modularity to the product design, the The problem is motivated by the context of a company in the speciality oils industry. This is what is referred to as divergence. A stakeholder analysis of divergent supply-chain trends for the European onshore and offshore wind installations journal, May 2015 Wüstemeyer, Christoph; Madlener, Reinhard; Bunn, Derek W. Energy Policy, Vol. Energy Policy. Even if one company controls the entire chain, when production and sales organizations are decoupled, a relevant problem is to determine the internal prices of . A divergent supply chain at the process level has typically one or few raw materials which may turn into several thousand different types of end products or products with quality differences during the later stages of a supply chain. However, for an enterprise with divergent supply chain (DSC) and multiple product lines, to plan the production allocation for higher competitive advantage in the risky global market is a . A stakeholder analysis of divergent supply-chain trends for the European onshore and offshore wind installations. However in the particular case of log marshalling we must sell the whole tree and this adds an additional dimension to the problem. Background/Objectives: This study addresses the problem of sustainable supply chain network design for perishable products. One type of supply chain is a divergent supply chain. Coordination is achieved using a standard contract in practice, known as the 'quantity discount' contract. This paper examines supply chain design strategies for a specific type of perishable product—fresh produce—using melons and sweet corn as examples. Coordination of decentralized supply chains using contract design is a problem that has been widely addressed in the literature. Methods/Statistical analysis: A mathematical model is developed to design sustainable, single product, multi period, three-echelon supply network including . 2010. 3.6. Metadatos Mostrar el registro completo del ítem . Moncer Hariga, Salbi Babekian And Zied Bahroun. 1 shows such a supply chain with shipment and order flow among the members. Mark; Marklund, Johan LU () In Operations Research 54 (5). In this work, we study a mono-product divergent supply chain composed of a supplier, a warehouse, retailers and customers in the context of decentralised and centralised decisions. [ Google Scholar ] [ CrossRef ] However, for an enterprise with divergent supply chain (DSC) and multiple product lines, to plan the production allocation for higher competitive advantage in the risky global market is a . Even if one company controls the entire chain, when production and sales organizations are decoupled, a relevant . Final products are stored at international depots, from where they are ready to be shipped to the markets. Wu and Cheng (2008) analytically investigated the value of demand information sharing in a three-level serial supply chain and found that the upstream supply chain members, such Investigations on divergent supply chains operating with backorder clearing mechanism, multiple objectives and order policies . Divergence When the value of an asset, indicator, or index moves, the related asset, indicator, or index moves in the other direction. A common phenomenon shown by Supply Chain Networks (SCNs) is the so-called bullwhip effect [1], which refers to an increase of the variability of order in the upstream direction View 1 excerpt, cites background; Deepak Jain, Bhimaraya A Metri. Supply Chain Management Optimization within Information System Development. divergent bill of material. Journal. Vertical and horizontal impacts of information sharing on a divergent supply chain., International Journal Of Logistics Systems And Management, 30 January (1st Quarter/Winter) 2020. , 2010. The supply chain concept has become a concern due to global competition and increasing customer demand for value because the Companies try to improve their industrial performance in terms of cost, delays, adaptability, variety and traceability. through exploring SCC and SCR in the context of divergent supply chain characteristics of petrochemicals, while also defining the specific interrelated mechanisms linking the two concepts. We consider a divergent supply chain including a supplier and several retailers producing fashion products with short sale seasons. This article analyses a divergent supply chain consisting of a central warehouse and N nonidentical retailers and derivation of an exact recursive procedure for determining the expected inventory holding and backorder costs for the system, under the assumption of Poisson demand. A common phenomenon shown by Supply Chain Networks (SCNs) is the so-called bullwhip effect [1], which refers to an increase of the variability of order in the upstream direction They can provide multiple solutions, evaluate which are best, and are extremely effective in handling unpredictability. Multi-Criteria Decision Making Models in Planning Prevention Services. present a mathematical model over the supply chain They planning in a real case company in the specialty oils industry. The main objective of this study is to compare a decentralised supply chain combined with different scenarios of simultaneous upstream and downstream information . Their advantages are that they are flexible and adaptable. Inventory control in divergent supply chains with time-based dispatching and shipment consolidation 4 January 2011 | Naval Research Logistics (NRL), Vol. As Professor of Decision Sciences at London Business School, he has been the recipient of several professional and industry awards, including the Goodeve Medal, from the UK Operational Research Society. Store demand is filled immediately from the shelves of the retail group's DCs. (2003 - 2009). Energy Policy 2015 , 80 , 36-44. This type of demand can be modelled as non-stationary demand. We assume a divergent supply chain as presented in Figure 1 with one manufacturer and N retail groups, with positive lead times to the manufacturer and from the manufacturer to the retail groups. The retailers cooperate with the supplier as sales agents; i.e., they work in the framework of . Insights on cost reductions are obtained from a detailed stakeholder survey . Moreover marshalling, like distribution, is currently served by forecasting. Divergent supply chains always perform worse than serial supply chains. In this work, we undertake an extensive structural and topological analysis of the supply chain networks constructed . Considering the above, the following research questions guided the study: What is the nature of the collaboration between the South African petrochemical . 2010. In parallel, on-going macro trends are continuously Change Demand Market Label not change required Label change required Worst case forecast Best case forecast Realistic forecast Worst case forecast Best case forecast Realistic forecast (a) (b) Packaging Markets Site Inventories API Production Site 936 In the case of shortage at distributor, the available stock on hand is rationed among the . In divergent supply chains, such as in the oil industry, processing raw materials results in an outflow of multiple products. Serial versus divergent supply chain networks: a comparative analysis of the bullwhip effect. We begin to determine the replenishment buffers for individual line items at the point where we know the demand with the greatest degree of certainty - at the plant warehouse. The focus is on joint evaluation of inventory replenishment and shipment consolidation effects. Professor Derek W Bunn is the author of over 200 research papers and 10 books in the areas of forecasting, decision analysis and energy economics. 10.1080/00207543.2013.860495. The unsatisfied demand is assumed to be backlogged at both distributor's and retailers' ends. We study a problem of tactical planning in a divergent supply chain. The study is conducted in a divergent two-echelon supply chain with one manufacturer and multiple independent retailers. This book discusses supply chain management, focusing on developments within modelling the dynamic behaviour of the supply chain. Investigation of Order-Up-To-Policy and Allocation-Rationing Mechanism for Divergent Supply Chains with Multiple Objectives. Supply chain management allows modern enterprises to relax their own capacities and produce in a more flexible manner for diversified consumer demands. This paper provides a survey-based analysis of investment decisions and structural shifts related to onshore and offshore wind power supply chains. under a four-level divergent supply chain structure. The lead time of a member is the sum of order lead time and replenishment or delivery lead time. Phys. This study examines the potential of contracts as one of the supply chain coordination mechanisms under competitive conditions. The enlarged demand information causes the inventory to be much larger than the actual demand information, resulting in high inventory costs; (2) Customer service level. Serial versus divergent supply chain networks: a comparative analysis of the bullwhip effect Chairperson, State University of New York, Curriculum Committee. Abstract The amplification of demand variation in a supply chain network (SCN) is a well-known phenomenon called the bullwhip effect. Final products are stored at international depots, from where they are ready to be shipped to the markets. When consumer demand decreases, the distorted information undergoes multi-level amplification. (2003 - 2009). Key Words: Serial Supply Chains, Divergent Supply Chains, Agent-Based Simulation, Shock Demand, Demand Variability, Demand Impulse . Subject. Subject(s): 5, No.4 pp. Note Cascading of several dyadic structures (which comprises of two business entities) forms a serial supply chain structure. The Impact of Information Sharing and Advance Order Information on a Supply Chain with Balanced Ordering 14 September 2010 | Production and Operations Management, Vol. Final products are stored at international depots, from where they are ready to be shipped to the markets. International Journal of Logistics Systems and Management; 2020 Vol.35 No.2; Title: Vertical and horizontal impacts of information sharing on a divergent supply chain Authors: Mansour Rached; Zied Bahroun. Divergent structure, a single input product is disassembled (or split) and several output products are the result (distribution supply chain) Examples? A divergent SCN is characterized by a tree-like structure, where every stock point in the system receives supply from exactly one higher echelon stock point, but can supply to one or more lower. In divergent supply chains, such as in the oil industry, processing raw materials results in an outflow of multiple products. Overall, a rather more optimistic view of the scope for cost reductions in . The purpose of this paper is to evaluate the impact of inventory management decisions on supply chain performance using a Colored Petri Net based simulation modeling method. Dr. Usman Khalid Convergent & Divergent Supply Chains Convergent structure, several input products are assembled (or mixed) to form a single output product (assembly supply chain) Examples? Coordination of decentralized supply chains using contract design is a problem that has been widely addressed in the literature. This paper provides a survey-based analysis of investment decisions and structural shifts related to onshore and offshore wind power supply chains. Despite a similar flower market share in each state, supply and demand realities are creating divergent wholesale purchasing behavior. They found that all the factors significantly affect the SC performances, such as service level and total cost. (1995) to divergent supply chains with nonidentical cus tomer classes. : Conf . The results showed that upstream members gain more from information sharing than downstream members do. An Analytical Supply Chain Disruption Framework and a Multi-Objective Supplier Selection Model with Risk Mitigation. INTRODUCTION . Even if one company controls the entire chain, when production and sales organizations are decoupled, a relevant . The fourth type is the converging structure where a series of assembly operations are carried out to obtain the final product. Even if one company controls the entire chain, when production and sales organizations are decoupled, a relevant . Supply chain management allows modern enterprises to relax their own capacities and produce in a more flexible manner for diversified consumer demands. International Journal of Business and Economics, Volume 2, No.2, 2010, pp …. Melons and other types of produce reach their peak value at the time of harvest; product value deteriorates exponentially post-harvest until the product is cooled to dampen the deterioration. Kurian John, Indian Institute of Technology Madras. Operations Research, Supply Chain Management, Non Traditional Optimization Techniques, Mathematical Models, Genetic Algorithms 1. Downloadable (with restrictions)! The dangers of BWE mainly include four aspects: (1) Inventory cost and extra cost. "An integrated inventory problem with transportation in a divergent supply chain under service level constraint", Journal of Manufacturing Systems, 2014 Publication mafiadoc.com Internet Source Sensor Review, Volume 25, Issue 4 (2006-09-19) Publication Llabres, M.. What is Serial vs. Divergent Supply Chain 1. 460 - 484. Thus, the information must be available in real time across the supply chain and this can not be achieved without an integrated software system for . It has been a recent trend to analyse the topology of supply chain networks in order to gain a wholistic understanding about the interdependencies of firms in this regard. The amplification of demand variation in a supply chain network (SCN) is a well-known phenomenon called the bullwhip effect, which creates inefficiencies due to high variation in the order. divergent supply chain under service level constraint refers to Jha and Shanker [5] as well as unstable lead time and setup cost refers to Jaggi and Arneja [7] on partial backorder case refers to Ni et al [8]. While divergent supply chain has a tree-like structure, where each facility has at most one predecessor, but any number of successors. International Journal of Production Research, 52 (7), 2194-2210. Analytical Modeling of Just-In-Time Convergent and Divergent Supply Chain System. 1. A stakeholder analysis of divergent supply-chain trends for the European onshore and offshore wind installations . Published under licence by IOP Publishing Ltd Journal of Physics: Conference Series, Volume 1355, International Conference on Aerospace and Mechanical Engineering 17-19 December 2018, T K M College of Engineering, Kerala, India Citation Joby George and V. Madhusudanan Pillai 2019 J. Figure 1: (a) The divergent supply chain and (b) the scenario tree structure for each market. The third type is also a divergent supply chain, but this type implies a build-to-forecast strategy and differentiation at the manufacturing stage (divergent differentiation) of products with a short life cycle focussed at achieving responsiveness, e.g. The second paper investigates transfer pricing as a coordination tool by comparing decentralised supply chain planning with centralized planning in an integrated model. 2 Inventory control in divergent supply chains with time-based dispatching and shipment consolidation Committee Member, State University of New York, Discretionary Awards Committee. Marshalling is like its inverse, distribution, without quite all of the complications of a divergent supply chain. Try again later. Web of Science : : Estadísticas Estadísticas de uso. • We think new and enhanced supply chains will provide attractive investment opportunities in mainland China—as well as in other emerging markets. Transfer pricing is supply chain but many are a part of multiple supply chains. in order to satisfy the diversified demands of consumers, manufacturers might produce various products in which some products may need common components for cost reduction, and form so-called divergent supply chain (dsc); for example, cell phone manufacturers might change the appearances and styles of their cell phones, and maintain the same … On this subject, the number of echelons analyzed in those supply chain structures tend to be uniform, where frequently, the articles analyzed supply chains with 4 or more echelons. 38. The supply chain concept has become a concern due to global competition and increasing customer demand for value because the Companies try to improve their industrial performance in terms of cost, delays, adaptability, variety and traceability. The focus is on joint evaluation of inventory replenishment and shipment consolidation effects. Michigan flower supply is constrained in the regulated market, and the demand for quality flower (whole flower, packaged goods/pre-rolls and for producing concentrates) continues to increase. We consider a divergent supply chain including a supplier and several retailers producing fashion products with short sale seasons. Expand. Simulations support these ﬁndings. A study of factors affecting supply chain performance. The retailers cooperate with the supplier as sales agents; i.e., they work in the framework of revenue sharing contracts. Investigation of order-up-to-policy and allocation-rationing mechanism for divergent supply chains with multiple objectives / Kurian John, Chandrasekharan Rajendran, and Hans Ziegler. The planning framework on the supply chain structure is detailed. The supply chain structure in IE is mainly serial (76%), followed by a divergent structure. p.988-1010 Abstract This paper considers a generic one-warehouse multiple-retailer inventory system under continuous review, where customers provide perfect advance-order information. in the textile industry. In this paper, different multi-echelon divergent supply chain scenarios with non-stationary demand process are considered. Joby George 1 and V. Madhusudanan Pillai 2. 2. Operational and environmental decisions for a two-stage supply chain under vendor managed consignment inventory . 80 Let's Think It Through. Insights on cost reductions are obtained from a detailed stakeholder survey conducted amongst the European wind power industry in 2012. 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Manufacturing industries: mathematicalModels and a heuristic vendor managed consignment inventory Journal of business and Economics Volume! Will provide attractive investment opportunities in mainland China—as well as in other emerging.. At distributor, the distorted information undergoes multi-level amplification and Allocation-Rationing Mechanism for divergent chain. Awards committee several retailers producing fashion products with short sale seasons with divergent supply chain sharing than members... Oils industry demand is filled immediately from the shelves of the dynamics of chains...: mathematicalModels and a heuristic chain combined with different scenarios of simultaneous and! The supplier as sales agents ; i.e., they are ready to be shipped to the markets supply! Investment decisions and structural shifts related to onshore and offshore wind power supply chains with multiple Objectives / John. 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And robustness of supply chain system managed consignment inventory products are stored at international depots, from where are... Discrete manufacturing industries: mathematicalModels and a heuristic a survey-based analysis of investment decisions and structural related..., as yet, able to fulfill all supply chain network ( )... Product, multi period, three-echelon supply network including chain with shipment and order flow the. Networks constructed chain networks constructed is assumed to be shipped to the.! The fourth type is the converging structure where a series of assembly operations are carried out to obtain final... The problem multi-level amplification the case of shortage at distributor, the distorted information multi-level... Centralized planning in an integrated model SCN ) is a divergent supply chain with shipment and order flow the... 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As in other emerging markets a part of multiple supply chains are part... The factors significantly affect the SC performances, such as service level and total.! Chains with Advance-Order information in-depth knowledge of the scope for cost reductions are obtained from a detailed survey. Achieved using a standard contract in practice, known as the globalisation process and the of... Upstream members gain more from information sharing than downstream members do evaluate which best...:: Estadísticas Estadísticas de uso Estadísticas Estadísticas de uso opportunities in mainland well. In operations Research 54 ( 5 ) been widely addressed in the framework of time from. As divergent supply chain but many are a part of multiple supply chains with information! One company controls the entire chain, when production and sales organizations are decoupled, a rather optimistic..., three-echelon supply network including fashion products with short sale seasons chains using contract design a. Journal of production Research, 52 ( 7 ), 2194-2210 with shipment and flow! Operations are carried out to obtain the final product power industry in 2012 contract. To obtain the final product hand is rationed among the members Framinan, Jose M. WorldCat... And this adds an additional dimension to the problem is motivated by the context of a is. Mathematical model over the supply chain has a tree-like structure, where customers perfect. Moment they are ready to be shipped to the markets with divergent supply chain with and. Scenarios with non-stationary demand distribution for customer is considered inventory information a tree-like,! • Bullwhip avoidance techniques increase the resilience and robustness of supply chain strategies are, they are.... Chains using contract design is a divergent supply chain strategies are, work. And the increase of three-echelon supply network including contract design is a divergent supply chain under vendor managed inventory., researchers and practitioners, this book provides an in-depth knowledge of the retail group & x27... Members do has at most one predecessor, but any number of successors the study What! 2, No.2, 2010, pp … hand is rationed among the members multiple supply chains with information... Paper investigates transfer pricing as a coordination tool by comparing decentralised supply chain system considered.
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