Uncertainty Propagation in a Supply Chain / Network With Uncertain Facility Performance

Author(s):  
Shabnam Rezapour ◽  
Janet K. Allen ◽  
Farrokh Mistree

Decentralized production systems in supply chains / networks makes them more profitable and agile than traditional enterprises with centralized production systems. However, this decentralization makes supply chains / networks more vulnerable respect to uncertainties which are unavoidable. Today’s supply chains / networks producing and supplying their products to markets are characterized by uncertain demands (called demand-side uncertainty) and uncertainties associated with the performances of their constituent production facilities (called supply-side uncertainty). Supply-side uncertainty is due to the fact that there is not any perfect production system. Sparse literature of supply-side uncertainty management in supply chains / networks is only restricted to supply chains / networks with single-echelon supply processes. However most of the real case supply chains / networks have longer production processes involving suppliers of suppliers, suppliers, component manufacturers, assemblers, etc. In this paper we fill this gap of the literature by considering a supply chain/network with multi-echelon supply process including unreliable production facilities working in markets with uncertain demands. We show that in such a complex production process in addition to investigating the local effects of the uncertainties in the performances of their corresponding facilities, it is necessary to consider their global and cumulative effect on the performance of the entire supply chain/networks by following the propagation of these uncertainties in the flow of the material and product. Not only we introduce and describe the salient features of uncertainty propagation phenomenon in supply chains/networks, but also we demonstrate its quantification approach. Finally we propose mathematical models and solution approaches that can provide robust production plans for the supply chain/network that are protected against all demand and supply side uncertainties and their propagated effects. Performances of the proposed models and solution approaches are tested with test problems and a real case problem from automotive industry.

2015 ◽  
Vol 795 ◽  
pp. 47-52
Author(s):  
Mircea Constantin Duică ◽  
Anişoara Duică ◽  
Iwona Grabara

The intensified competition, the frequent change of the clients’ preferences and the globalization of the capital, product, service and information flows have turned the efficient product management into an essential factor for increasing competitiveness in production systems integrated in supply chains. In this context, industrial excellence can be obtained only by an efficient process piloting, using some performance measurement systems that permit a good substantiation of the decisions based on correct and reliable information, taking into account the risks specific to supply chains. The paper includes a review of the literature in the field of performance measurement for supply chains to understand the current practice and contributes to the development of the supply chain performance measurement framework using risk management, the case study method, a statistic quantitative data analysis and modern performance measurement techniques such as: balanced scorecard and supply chain operation reference.


2019 ◽  
Vol 6 (1) ◽  
pp. 19-26 ◽  
Author(s):  
Prabhat Mittal

The present study is an attempt to quantify the Bullwhip Effect (BWE) -the phenomenon in which information on demand is distorted in moving up a supply chain. Assuming that the retailer employs an order-up-to level policy with auto-regressive process (AR), the paper investigates the influence of forecasting methods on bullwhip effect. Determining the order-up-to levels and the orders for the retailers’ demands in an isolated manner neglects the correlation of the demands and the relevant risk pooling effects associated with the network structure of the supply chains are disregarded. It is illustrated that the bullwhip effects are significantly reduced with consideration of potential correlation between the retailers’ demand.


2014 ◽  
Vol 6 (1) ◽  
pp. 77-93 ◽  
Author(s):  
Brett Neilson

Notions of Kulturkritik stemming from twentieth century accounts of mass con-sumption present culture as an effect of the mode or relations of production. Culture becomes the means by which capitalism imposes itself as an ideological system. This paper asks how Kulturkritik might be revived or revisited in the current moment of capitalist globalisation. Focusing on changes to production systems introduced by the growth of logistics and supply chain management, it argues that cultural processes of translation, signification, communication and argument have become deeply and materially embedded in the development of capitalism. Particular attention is paid to how infrastructure and technology shape relations of capital and labour. The paper asks how the subjective force of labour can exploit the vulnerabilities inherent in supply chains and confront the networked forms of organisation that enable contemporary capitalism. Overall the aim is to establish a role for culture in struggles against capitalism and to rethink the place of critique and ideology in the wake of such an approach.


Author(s):  
Aida Rezaei ◽  
Tina Shahedi ◽  
Amir Aghsami ◽  
Fariborz Jolai ◽  
Hamidreza Feili

Integrating strategic and tactical decisions to location-allocation and green inventory planning by considering e-commerce features will pave the way for supply chain managers. Therefore, this study provides an effective framework for making decisions related to different levels of the dual-channel supply chain. We provide a bi-objective location-allocation-inventory optimization model to design a dual-channel, multi-level supply chain network. The main objectives of this study are to minimize total cost and environmental impacts while tactical and strategic decisions are integrated. Demand uncertainty is also addressed using stochastic modeling, and inventory procedure is the periodic review . We consider many features in inventory modeling that play a very important role, such as lead time, shortage, inflation, and quality of raw materials, to adapt the model to the real conditions. Since a dual-channel supply chain is becoming more important for sustainable economic development and resource recovery, we combine online and traditional sales channels to design a network. We generate five test problems and solve them by using the augmented ε-constraint method. Also, the Grasshopper optimization algorithm was applied to solve the model in a reasonable time for a large size problem. In order to provide managerial insights and investigate the sensitivity of variables and problem objectives with respect to parameters, sensitivity analysis was performed.


Logistics ◽  
2021 ◽  
Vol 6 (1) ◽  
pp. 2
Author(s):  
Takaki Nagao ◽  
Hiromasa Ijuin ◽  
Tetsuo Yamada ◽  
Keisuke Nagasawa ◽  
Lei Zhou

Background: COVID-19 has disrupted and adversely affected supply chains worldwide. A global supply chain network that considers disruptions is needed. This study strategically analyzes the economic and structural effects of disruption on a global supply chain network with customs duty and the trans-pacific partnership (TPP) agreement. Methods: We present a cost minimization model which helps in understanding the difficulty of supplying materials or products to factories or customers if the supplier’s cities are facing disruption. This enables us to model and evaluate simultaneous considerations of supplier disruption, customs duty, and TPP in redesigning a global supply chain network. This network is modeled and formulated using integer programming, disruption scenarios, and a sensitivity analysis for customs duty. Results: Regarding the impact of disruptions on suppliers, two patterns emerge in the reconfigured network: direct changes due to supplier disruptions and indirect changes due to factory relocation. The sensitivity analysis for customs duty shows that the TPP has a positive impact on cost maintained, even in the presence of disruptions. Conclusions: Suppliers should be switched depending on the scale of disruption; when many distant suppliers need to be switched, the factory should be relocated to the country where these suppliers are located.


Electronics ◽  
2020 ◽  
Vol 9 (11) ◽  
pp. 1864
Author(s):  
Theresa Sobb ◽  
Benjamin Turnbull ◽  
Nour Moustafa

Supply chain 4.0 denotes the fourth revolution of supply chain management systems, integrating manufacturing operations with telecommunication and Information Technology processes. Although the overarching aim of supply chain 4.0 is the enhancement of production systems within supply chains, making use of global reach, increasing agility and emerging technology, with the ultimate goal of increasing efficiency, timeliness and profitability, Supply chain 4.0 suffers from unique and emerging operational and cyber risks. Supply chain 4.0 has a lack of semantic standards, poor interoperability, and a dearth of security in the operation of its manufacturing and Information Technology processes. The technologies that underpin supply chain 4.0 include blockchain, smart contracts, applications of Artificial Intelligence, cyber-physical systems, Internet of Things and Industrial Internet of Things. Each of these technologies, individually and combined, create cyber security issues that should be addressed. This paper explains the nature of the military supply chains 4.0 and how it uniquely differs from the commercial supply chain, revealing their strengths, weaknesses, dependencies and the fundamental technologies upon which they are built. This encompasses an assessment of the cyber risks and opportunities for research in the field, including consideration of connectivity, sensing and convergence of systems. Current and emerging semantic models related to the standardization, development and safety assurance considerations for implementing new technologies into military supply chains 4.0 are also discussed. This is examined from a holistic standpoint and through technology-specific lenses to determine current states and implications for future research directions.


Author(s):  
Anisha Banu Dawood Gani ◽  
Yudi Fernando

The objective of this chapter is to discuss the concept and practices of cyber supply chains (CSC) in the manufacturing context. Technological advancements are drastically transforming the manufacturing industry, which in turn drives the need for a digitally integrated supply chain. While CSC has its share of benefits, it is also vulnerable to cyber threats. In order to mitigate the risks, comprehensive security measures must be undertaken in the areas of technology, organization, governance, and culture, and they must be integrated into the company's established risk management processes. To ensure a resilient CSC, all members of the supply chain network must play a role to protect their respective systems from potential breach.


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