- Author
- Kaczmarczyk Waldemar (AGH University of Science and Technology Kraków, Poland)
- Title
- Partial Coordination May Increase Overall Costs in Supply Chains
- Source
- Decision Making in Manufacturing and Services, 2008, vol. 2, nr 1/2, s. 47-62, rys., bibliogr. 8 poz.
- Keyword
- Łańcuch dostaw, Dystrybucja, Metody planowania sieciowego, Wyniki badań, Zarządzanie zapasami przez dostawcę
Supply chain, Distribution, Network planning methods, Research results, Vendor Managed Inventory (VMI) - Note
- summ.
- Abstract
- This paper presents a computational study to evaluate the impact of coordinating production and distribution planning in a two-level industrial supply chain. Three planning methods are compared. The first emulates the traditional way of planning. The two other coordinate plans of the supplier and of all the buyers according to the Vendor Managed Inventory (VMI) approach. The monolithic method solves a single model describing the entire optimization problem. The sequential method copies the imperfect VMI practice. All three methods are implemented by means of Mixed Integer Programming models. The results presented prove that the right choice of planning method is very important for overall cost of the supply chain. In contrast to the previous research, it turned out that information sharing without full coordination may even lead to increase in the overall cost. For some companies applying the VMI approach, developing exact models and solving them almost optimally may therefore be very important.(original abstract)
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- Bibliography
-
- Chandra P. and Fisher M. L., 1994: Coordination of Production and Distribution Planning, European Journal of Operational Research 72(3): 503-517.
- Drexl A. and Kimms, A., 1997: Lot Sizing and Scheduling - Survey and Extensions, European Journal of Operational Research 99(2): 221-235.
- Erengüç Ş. Selçuk., Simpson N. C. and Vakharia A. J., 1999: Integrated Production/Distribution Planning in Supply Chains, European Journal of Operational Research 115: 219-236.
- Lee C. C. and Chu W. H. J., 2005: Who Should Control Inventory in a Supply Chain?, European Journal of Operational Research 164: 158-172.
- Miodońska B., 2006: Koordynacja w łańcuchach dostaw (Coordination in Supply Chains), Master's thesis, AGH University of Science and Technology, Krakow, Poland, (in Polish).
- Sahin F. and Robinson Jr. E. P., 2005: Information Sharing and Coordination in Make-to-order Supply Chains, Journal of Operations Management 23: 579-598.
- Sarmiento A. M. and Nagi R., 1999: A Review of Integrated Analysis of Production Distribution Systems, IIE Transactions 31: 1061-1074.
- Thomas D. J. and Griffn P. M., 1996: Coordinated Supply Chain Management, European Journal of Operational Research 94: 1-15.
- Cited by
- ISSN
- 2300-7087
- Language
- eng
- URI / DOI
- http://dx.doi.org/10.7494/dmms.2008.2.2.47
