scholarly journals The Impact of Lead Time Uncertainty on Supply Chain Performance Considering Carbon Cost

2019 ◽  
Vol 11 (22) ◽  
pp. 6457
Author(s):  
Li ◽  
Fei ◽  
Zhou ◽  
Gajpal ◽  
Chen

In supply chain operation practices, lead time uncertainty is a common management issue. Uncertain lead time can lead to increased inventory costs and unstable service levels, which will directly affect the overall operation performance of the supply chain. While considering environmental performance in supply chain, it is important to understand how an uncertain lead time will affect sustainable performance. In this paper, we constructed a supply chain model with stochastic lead time and explored the relationship between uncertain lead time and supply chain performance. We considered carbon cost, inventory cost, and service level as a supply chain performance. System dynamics methodology was employed to observe and explore the dynamic change trend of the overall performance in the complicated supply chain model. This was done under both different levels of lead time standard deviation and different order policies. The results demonstrate how stochastic lead times can significantly increase inventory costs and carbon costs. Therefore, we propose appropriate ordering policies which mitigate the negative impacts of stochastic lead times.

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Junhai Ma ◽  
Liqing Zhu ◽  
Ye Yuan ◽  
Shunqi Hou

With the purpose of researching the bullwhip effect when there is a callback center in the supply chain system, this paper establishes a new supply chain model with callback structure, which has a material supplier, a manufacture, and two retailers. The manufacture and retailers all employ AR(1) demand processes and use order-up-to inventory policy when they make order decisions. Moving average forecasting method is used to measure the bullwhip effect of each retailer and manufacture. We investigate the impact of lead-times of retailers and manufacture, forecasting precision, callback index, and marketing share on the bullwhip effect of both retailers and manufacture. Then we use the method of numerical simulation to indicate the different parameters in this supply chain. Furthermore, this paper puts forward some suggestions to help the enterprises to control the bullwhip effect in the supply chain with callback structure.


2016 ◽  
Vol 47 (2) ◽  
pp. 53-66 ◽  
Author(s):  
T.P. Mbhele

The amplification of demand order variability germinates from distorted demand information upstream while sometimes reacting to demand-driven inventory positioning influenced by the custodians of downstream information. This studyuses factor analysis to tentatively develop a supply chain model to enhance the competence of supply chain performance in terms of responsiveness, connectivity and agility. The results of the analysis indicate that the magnitude of control on the bullwhip effect and access to economic information on demand orders in the supply chain network are associated with the modelling of the push-pull theory of oscillation on three mirror dimensions of supply chain interrelationships (inventory positioning, information sharing and electronically-enabled supply chain systems). The findings provide the perspective on managing amplification in consumer demand order variability upstream in the supply chain network while enhancing the overall efficiency of supply chain performance. This article provides insight into the use of innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks.


2016 ◽  
Vol 11 (1) ◽  
pp. 43-74 ◽  
Author(s):  
Premaratne Samaranayake ◽  
Tritos Laosirihongthong

Purpose – The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under dynamic and uncertain conditions. Design/methodology/approach – The research methodology consists of two stages: configuration of a conceptual framework of integrated supply chain model linked with performance measures and illustration of the integrated supply chain model and delivery performance using a case of dairy industry. The integrated supply chain model is based on a unitary structuring technique and forms the basis for measuring and evaluating supply chain performance. Delivery performance with variation of demand (forecast and actual) is monitored using a fuzzy-based decision support system, based on three inputs: capacity utilization (influenced by production disruption), raw materials shortage and quality of dairy products. Findings – Integration of supply chain components (materials, resources, operations, activities, suppliers, etc.) of key processes using unitary structuring approach enables information integration in real time for performance evaluation and monitoring in complex supply chain situations. In addition, real-time performance monitoring is recognized as being of great importance for supply chain management in responding to uncertainties inherent in the operational environment. Research limitations/implications – Implementation of an integrated model requires maintenance of supply chain components with all necessary data and information in a system environment such as enterprise resource planning. Practical implications – The integrated model provides decision-makers with an overall view of supply chain components and direct links that need to be maintained for supply chain performance evaluation and monitoring. Wider adaptation and diffusion of the proposed model require further validation of the model and feasibility of implementation, using real-time data and information on selected performance measures. Originality/value – Integration of supply chain components across supply chain processes directly linked with performance measures is a novel approach for effective supply chain performance evaluation and monitoring in complex supply chains under dynamic and uncertain conditions.


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