An Approach to Assess Value of Component Commonality by Integrating Product Design and Supply Chain Decisions

2016 ◽  
Author(s):  
Shun Takai ◽  
Sankar Sengupta
Keyword(s):  
Supply Chain ◽  
Product Design ◽  
Lead Time ◽  
Supplier Selection ◽  
Design Decisions ◽  
Inventory Policy ◽  
Component Commonality ◽  
Delayed Differentiation ◽  
Product Models ◽  
Electric Bicycles

Delayed differentiation enables firms to cost effectively offer a large variation of the same product by using common components until the products need to be differentiated for regional requirements. Using the same components in different product models (component commonality) is the key to enabling delayed differentiation. The objective of this paper is to propose an approach to evaluate the value of component commonality by integrating product design decisions and supply chain decisions. We propose an approach to assess the value of component commonality by simultaneously optimizing product design (i.e., component commonality) and supply chain decisions including supplier selection (replenishment lead time) and inventory policy. The proposed approach is illustrated in motor commonality decisions for electric bicycles. The optimum component commonality and supply chain decisions are investigated under various conditions including different demand variabilities, component costs, inventory tracking costs, and inventory ordering costs.

scholarly journals Three-Echelon Inventory Model with Permissible Delay in Payments under Controllable Lead Time and Backorder Consideration

2014 ◽  
Vol 2014 ◽  
pp. 1-16 ◽  
Author(s):  
M. F. Yang ◽  
Wei-Chung Tseng
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Critical Issue ◽  
Solution Procedure ◽  
Inventory Model ◽  
Permissible Delay In Payments ◽  
Inventory Policy ◽  
Controllable Lead Time ◽  
Key Factor ◽  
Delay In Payments

This paper proposes a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration to find out the suitable inventory policy to enhance profit of the supply chain. In today’s highly competitive market, the supply chain management has become a critical issue in both practice and academic and supply chain members have to cooperate with each other to bring more benefits. In addition, the inventory policy is a key factor to influence the performance of the supply chain. Therefore, in this paper, we develop a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration. Furthermore, the purpose of this paper is to maximize the joint expect total profit on inventory model and attempt to discuss the inventory policy under different conditions. Finally, with a numerical example provided here to illustrate the solution procedure, we may discover that decision-makers can control lead time and payment time to enhance the performance of the supply chain.

An Integrative Methodology for Product and Supply Chain Design Decisions at the Product Design Stage

2011 ◽  
Vol 133 (2) ◽  
Author(s):  
Ming-Chuan Chiu ◽  
Gül Okudan
Keyword(s):  
Supply Chain ◽  
Product Design ◽  
Supplier Selection ◽  
Supply Chain Design ◽  
Simultaneous Optimization ◽  
Design Stage ◽  
Supply Chain Performance ◽  
Bicycle Industry ◽  
Key Factor ◽  
Optimization Methodology

Supplier selection is one of the key decisions in supply chain management. Companies need not only to make the “make” or “buy” decisions but also differentiate across potential suppliers in order to improve operational performance. Product design is an engineering based activity that realizes the customer requirements into functions of a new product. Many studies have pointed out that the integration of product and supply chain is a key factor for profitability and efficiency. However, most studies address supply chain performance after freezing the design of the product; only a few studies discuss when and how to incorporate supply chain decisions during product design. This paper presents a graph theory based optimization methodology to tackle this problem. The supplier selection issue is considered by evaluating its impact on both internal (e.g., ease of assembly) and external (e.g., transportation time) enterprise performances, which are aggregated as supply chain performance at the conceptual design stage. A case study in the bicycle industry demonstrates the advantages of this methodology. The presented mathematical programming formulation enables simultaneous optimization of both product design and supply chain design during the early design stages.

Aligning Product Design with the Supply Chain

2010 ◽  
pp. 184-210
Author(s):  
Omera Khan ◽  
Alessandro Creazza
Keyword(s):  
Supply Chain ◽  
Product Design ◽  
Value Chain ◽  
Design Strategy ◽  
Risk Profile ◽  
Decision Makers ◽  
Supply Chain Risk ◽  
Design Decisions ◽  
Chain Management ◽  
Drawing Board

The continued rise in global sourcing and manufacturing has significantly extended supply chains for many companies and has added to their complexity, often implying business fragmentation and virtualization, and thus increase supply chain risk. At the same time, there is now a growing realization that the supply chain ‘begins on the drawing board’; meaning that design decisions can dramatically impact the risk profile of the business. Historically, most organizations have been functional in their structure with responsibility for each stage in the value chain, including design being separate from the other. In today’s challenging markets these ‘silo’ type structures have been found wanting as typically they are not capable of rapid response to fast-changing requirements. This paper is focused on the need to bring design into the heart of supply chain management to achieve a more responsive - and hence competitive - organization. Thus, the primary purpose of this paper is to propose that one of the ways to achieve a more responsive and resilient enterprise is by better aligning product design with the supply chain and hence developing a concurrent design strategy. The recommendations suggest ways in which managers and key decision makers can adopt a more ‘design centric’ approach to their supply chain, which has been shown to enhance the resilience and responsiveness of a firm.

scholarly journals Robust parameter design of supply chain inventory policy considering the uncertainty of demand and lead time

2018 ◽  
Vol 0 (0) ◽  
pp. 0-0
Author(s):  
Lina Tang ◽  
Yizhong Ma ◽  
Jianjun Wang ◽  
Linhan Ouyang ◽  
Jai-Hyun Byun
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Parameter Design ◽  
Robust Parameter Design ◽  
Inventory Policy ◽  
Robust Parameter

A Small to Medium-Size Enterprise Oriented Methodology for Optimizing Product and Supply Chain Design Decisions

2010 ◽  
Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Product Design ◽  
Supplier Selection ◽  
Supply Chain Design ◽  
Operational Performance ◽  
Design Stage ◽  
Medium Size ◽  
Supply Chain Performance ◽  
Chain Management

Today supply chain management has become one of the crucial factors for gaining and sustaining a competitive advantage. Enterprises that can more effectively manage their supply chain network have a higher likelihood of success in the marketplace. To this end, companies need not only make the “make” or “buy” decisions but also differentiate across potential suppliers in order to improve operational performance, and hence, supplier selection is one of the key decisions aiding effective supply chain management. Many studies have also pointed out that the integration of product and supply chain is a key factor for profitability and efficiency. However, prior studies mostly address supply chain performance after the creation of a new product; and only a few studies discuss when and how to incorporate supply chain decisions during product design. In the studies that cover product design, product family and product platform concepts are presented as enabling vehicles for mass customization, which require a considerable investment, and hence might be out of reach for small to medium size enterprises (SME). Accordingly, there is a need to develop a methodology that can consider manufacturability and supply chain issues at the product design stage. This paper presents a graph theory based optimization methodology to tackle this problem. The supplier selection issue is considered by evaluating its impact on both engineering (e.g., process planning) and operational performance (e.g., cost and time), which are then aggregated as the supply chain performance at the conceptual design stage. A case study in the bicycle industry demonstrates the advantages of this methodology. The synchronized structure of the supply chain and the product design results in simultaneous optimization of both design and supply chain decisions during the early design stages.

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