Source: A Taxonomic Review of Supply Chain Management Research, by Ram Ganeshan, Eric Jack, Michael Magazine, and Paul Stephens, in: Quantitative Models for Supply Chain Management, edited by Sridhar tayur, Ram Ganeshan, and Michael magazine, Kluwer Academic Publishers, 1998
W. Alderson. Marketing Behavior and Executive Action: A Functionalist Approach to Marketing Theory. Irwin: Homewood, IL, 1957.
Problems Addressed: Marketing Efficiency within a complete system of distribution can be promoted through application of the principle of postponement.
Conclusions: Postponement can reduce the cost of carrying inventory and reduce marketing risk. It is a major analytical tool that can be derived from the view that inventory management is an essential marketing function.
R. Anupindi and R. Akella. Diversification under supply chain uncertainty. Management Science, Volume 39, pp. 944-963, 1993.Problems Addressed: Dual (or more) sourcing strategies provide a hedge against supplier quality and delivery uncertainty. The operational issue of quantity allocation between two suppliers needs to be explored due to impacts on inventory policy and costs.
Conclusions: : Optimal inventory policies can be determined using these models but application to real world situations is questioned and limitations are discussed.
R. Anupindi and Y. Bassok. Distribution Channels, Information Systems and Virtual Centralization. Proceedings of MSOM Conference: 87-92, 1996.Problems Addressed: What are some of the challenges that present themselves when retailers decide to explore this horizontal link? The transshipment of goods and distribution needs to be reexamined under this new condition.
Conclusions: : The system of decentralized retailers with info sharing (virtual centralization) gives more revenues to the manufacturer. All retailers will gain from such a system but not all equally.
B. C. Arntzen, G. G. Brown, T. P. Harrison, and L. Trafton. Global SCM at Digital Equipment Corporation. Interfaces 25:69-93, 1995.Problems Addressed: Shows how DEC evaluates global SC alternatives and determines world wide manufacturing and distribution strategy using the global SC model.
Conclusions: : GSCM is a very general approach to modeling SCs applicable to any firm involved in multistage, multiproduct manufacturing (using the global bill of materials).
M. P. Baganha and M. A. Cohen. The Stabilizing Effect of Inventory in Supply Chains. To appear in Operations Research, 1998.Problems Addressed: Develop a model to explain the observations of the bullwhip effect and indicate mechanisms which can promote stabilization at various points in the chain.
Conclusions: : Wholesalers can introduce a degree of stabilization into the supply chain by transmitting an order process to manufacturers with variability lower than the variability inherent in the retailer replenishment order process.
B. M. Beamon. Performance Measures in Supply Chain Management. From Rensellaer Polytechnic University conference on agile manufacturing, Albany, New York, October 2-3, 1996.Problems Addressed: Evaluate existing supply chain performance measures and establish a general framework for their development and application.
Conclusions: : Effective performance measures are often neglected in the design and analysis of supply chains. This paper provides a general framework for their effective development and application.
D. Berry and M. M. Naim. Quantifying the relative improvements of redesign strategies in a PC supply chain. International Journal of Production Economics 46-47, Dec:181-196, 1996.Problems Addressed: Outlines the dev. of simulation models that describes implications of SC redesign.
Conclusions: : Dynamic performance improvements can be achieved at each successive stage of the redesign process.
S. Bhaskaran. Simulation Analysis of a Manufacturing Supply Chain. Presented at Supply Chain Linkages Symposium, Indiana University, 1996.Problems Addressed: Need a tool to manage the transmission of schedule instability and resulting inventory fluctuation. Controlling fluctuation in forecasted demand can have a great impact on inventory levels throughout the SC.
Conclusions: : Operations in series in the pipeline need to be coordinated. Kanban can use forecasts to help reduce demand errors. The model can help to
- simulate differences between MRP and kanban systems
- simulate the effects of mfg. smoothing at the top of the pipe.
R. C. Blattberg, G. D. Eppen and J. Lieberman. A Theoretical and Empirical Evaluation of Price Deals for Consumer Non-Durables. Journal of Marketing 45:116-129, 1981.Problems Addressed:
J. M. Bloemhof-Ruwaard, P. Van Beek, L. Hordijk and L. N. Van Wassenhove. Interactions between operational research and environmental management. European Journal of Operational Research 85:229-243, 1995.Problems Addressed: How to incorporate environmental issues when analyzing supply chains.
Conclusions: : Or may be a suitable science to cope with the cradle-to-grave approaches in SCM and with the global problems in the environmental chain. More complicated models are needed to cope with recovery mgt and regional problems in env. chain approach.
D. J. Bowersox. Physical Distribution Development, Current Status, and Potential.Problems Addressed: A flurry of attention has focussed upon the concept of integrated physical distribution since mid-1950s and a synthesis of contemporary physical distribution thought is needed.
Conclusions: : Physical distribution has evolved into an issue of competitive advantage and includes not only single firm issues of total cost and system integration but also integration beyond the firm into the total cooperative channels of distribution.
D. J. Bowersox. Readings in Physical Distribution Management: The Logistics of Marketing. Eds. D. J. Bowersox, B. J. La Londe and E. W. Smykay. New York: MacMillan, 1969.Problems Addressed:
D. J. Bowersox. Planning Physical Distribution Operations with Dynamic Simulation Journal of Marketing 36:17-25, 1972.Problems Addressed: This article reviews a dynamic simulation model, LREPS, which is capable of simulating the physical distribution system of a manufacturing firm engaged in national distribution of packaged goods.
Conclusions: : The LREPS model has proven to be of assistance in the planning of physical distribution systems. Using this model, a synthesis of results into some general principles to guide integrated physical distribution system design will emerge.
D. J. Bowersox and E. A. Morash. The Integration of Marketing flows in Channels of Distribution. European Journal of Marketing 23:58-67, 1989.Problems Addressed: Integrating channel wide marketing strategies can provide enhanced potential for strategic leveraging of channel efficiency and effectiveness.
Conclusions: : Answers to questions include: amount of slack time (postponement potential), cost ramifications of network modifications, advisability of "crash programs" (flow acceleration) on the critical path.
D. J. Bowersox. The Integrated Supply Chain Management: A Strategic Imperative, presented at the Council of Logistics Management 1997. Annual Conference, 5-8 Oct. Chicago, IL., 1997.Problems Addressed:
G. P. Cachon and M. L. Fisher. Campbell Soup's Continuous Replenishment Program: Evaluation and Enhanced Inventory Decision Rules. Productions and Operations Management 6:266-276, 1997.Problems Addressed: Describe how a continuous replenishment program works in practice. Could more sophisticated inventory rules improve performance.
Conclusions: : Under the revised system it was found that retailer inventories were reduced 66% without reducing service level. Cost of goods sold fell by 12%. These savings could have been achieved without VMI.
J. D. Camm, T. Chorman, F. Dill, J. Evans, D. Sweeney and G. Wegryn. Blending OR/MS Judgement, and GIS: Restructuring P&G's Supply Chain. Interfaces 27:128-142, 1997.Problems Addressed: Choose the best location and scale of operation for making each product. Provide modeling support tool to ensure best possible solution across SC.
Conclusions: : Two models were tied using aggregation and parameterization to avoid significant suboptimization. Synergy of OR/MS and GIS led to high level of acceptance.
M. Cauto and V. Mininno. Internal, Vertical and Horizontal Logistics Integration in Italian Grocery Distribution. International Journal of Physical Distribution & Logistics Management 26:64-89, 1996.Problems Addressed: Focus on branded products industry and large-scale retail trade business to increase operating efficiency and improve interfunctional and interorganizational coordination in logistics channels in Italian grocery distribution.
Conclusions: : Successful strategy depends on clear delineation of responsibility at each echelon and the quickness of processing and exchange of information (EDI); vertical integration (systematic coord of physical and informational flows)
J. R. Carter and R. A. Narasimhan. A comparison of North American and European future purchasing trends. International Journal of Purchasing & Materials Management 26:64-89, 1996.Problems Addressed: Document the changes and emerging trends in sourcing and supply mgt, and their impacts on supply mgt.
Conclusions: : Most significant trends: greater strategic importance reliance on Info Tech; EDI Env sensitive purchasing; sourcing teams.
T.Y. Choi and J. L. Hartley. An exploration of supplier selection practices across the supply chain. Journal of Operations Management 14:333-343, 1996.Problems Addressed: Compare supplier selection practices based on a survey of companies at different levels in the auto industry.
Conclusions: : No difference found (among auto assemblers, direct and indirect suppliers) for the importance placed on consistency (quality and delivery), reliability, relationship, flexibility, price, and service. Price is one of the least important selection items.
A. Clark and H. Scarf. Optimal Policies for a Multi-Echelon Inventory Problem. Management Science 6:475-490, 1960.Problems Addressed: There is a need to consider the problem of determining optimal purchasing quantities in a multi-installation model.
Conclusions: : Optimal solutions for multi echelon inventory models are possible.
A. Clark. An Informal Survey of Multi-Echelon Inventory Theory. Naval Res. Logistics Quarterly 19:621-650, 1972.Problems Addressed: To fully appreciate the directions of multi-echelon research, it is useful to have a basic familiarity with analytical approaches to the problems.
Conclusions: : It is probable that research in multi-activity inventory theory has reached a point where marginal returns from further work are likely to diminish. The principle work to be done lie in refinements and extensions of previous results.
M.A. Cohen and H. L. Lee. Strategic Analysis of Integrated Production-Distribution Systems Models and Methods. Operations Research 36:216-228, 1988.Problems Addressed: Measuring cost/service/flexibility tradeoffs in production/distribution systems.
Conclusions: : Methodology considers relationships between production and distribution control policies that affect inventory control, plant product mix, and production sched. Other manufacturing strategy decisions (e.g. facility location, capacity planning) are assumed fixed.
M. A. Cohen and S. Mallik. Global Supply Chains: Research and Applications. Production and Operations Management 6:193-210, 1997.Problems Addressed: Conclusions: : Majority of models lack practicality & would be difficult to implement. Globalization has increased considerably among big US firms. Evidence of the growth of SC coordination is less clear. Paper concludes with several specific areas for future work.
M. C. Cooper, Logistics in the Decade of the 1990s. From the Logistics Handbook, Eds. Roberson, Capacino & Howe Free Press: New York, 1994.Problems Addressed:
M. C. Cooper, L. M. Ellaram, J. T. Gardner, and A. M. Hanks. Meshing Multiple Alliances. Journal of Business Logistics, 18:67-89, 1997.Problems Addressed:
W. C. Capacino and D. B. Rosenfield. Analytical Tools for Strategic Planning from Logistics. The Strategic Issues, edited by M. Christopher, 1992.Problems Addressed: Focus on analytical tools for strategic logistics planning.
Conclusions: : None Given.
T. Davis. Effective Supply Chain Management. Sloan Management Review 34:35-46, 1993.Problems Addressed: Hewlett-Packard has developed a framework for addressing the uncertainty that plague the performance of suppliers, the reliability of manufacturing and transportation processes, and the changing desires of customers.
Conclusions: : The author describes several cases in which entire product families have been reevaluated in a supply chain context. The methodology employed should help other manage their supply chain.
R. Ernst and B. A. Kamrad. A Conceptual Framework for Analyzing Supply Chain Structures. Proceedings of 1996 MSOM Conference: 1-7, 1996.Problems Addressed: Evaluate different supply chain structures in the context of modularization and postponement.
Conclusions: : Specific example of companies that fall into each category are cited. Verticle integration along the supply chain is not desirable. The framework provides a way to start the decision process by helping to contrast the chain design options.
M. L. Fisher and A. Raman. Reducing the Cost of Demand Uncertainty through Accurate Response to Early Sales. Operations Research 44:87-99, 1996.Problems Addressed: How to avoid stock outs and inventory obsolescence because long lead times couples with a concentrated selling season force all or at least most production to be committed before demand information is available.
Conclusions: : Relative to the cost that would have been incurred if no response were used, optimized response reduces cost by enough to quadruple profits.
M. L. Fisher. What is the right supply chain for your product? Effective Supply Chains Harvard Business Review 75:105-116, 1997.Problems Addressed: Managers lack the framework for deciding which ideas and technologies best fit their particular company's situation.
Conclusions: : To take the right approach, companies should first determine whether their products are functional (predictable demand) or innovative. Then select either an efficient (cost) SC or a responsive (time) SC strategy.
J. W. Forrester. Industrial Dynamics: A Major Breakthrough for Decision Makers. Harvard Business Review 36:37-66.Problems Addressed: Industrial Dynamics studies the behavior of industrial systems to show how policies, decisions, structures, and delays are interrelated to influence growth and stability.
Conclusions: : The five flows are interrelated by an info network; I.D. recognizes the critical importance of this info network in giving the system its own dynamic character. Uses models to show how info and policy create the character of the organization..
J. W. Forrester. Industrial Dynamics. MIT Press, 1961.Problems Addressed: Predict the specific kind of progress which will be achieved and describes the concepts which will make it possible.
Conclusions: : Companies will come to be recognized not as a collection of separate functions but as a system in which flows of information, materials, manpower, capital equip., and money set up forces than determine growth, fluctuation and decline.
J. Fuller, J. O'Connor and R. Rawlinson. Tailored Logistics: The Next Advantage. Harvard Business Review 71:87-93, 1993.Problems Addressed: The goal of logistics strategy is to organize companies to compete across the span of their markets without over charging customers or under serving others.
Conclusions: : Logistics have become central to product strategy because it is increasingly clear, products are not just things-with-features. They are TWF bundled with services.
A. Garg and C. S. Tang. e On Postponement Strategies for Product Families with Multiple Points of Differentiation. IIE Transaction 29:641-650, 1997.Problems Addressed: There is need to develop research which studies products with more than one point of differentiation. Discovering the conditions when one type of postponement is the most beneficial Extension of Eppen & Scharge (1981).
Conclusions: : Centralized model-variability & correlation of demands play an important role in which postponement strategy to use. Decentralized model-magnitudes of lead times have a strong impact on inventory. A simple way to ID the optimal point to be postponed.
S. Gavireni, R. Kapuscinski, and S. Tayur. Value of Information in Capacitated Supply Chains. From Quantitative Models for Supply Chain Management, Eds. Magazine, M. J., S. Tayur and R. Ganeshan., Kluwer: Cambridge, 1998.Problems Addressed: The degree of cooperation varies significantly from one supply chain to another. How much cooperation and coordination is needed for firms to derive the benefits of improved relationship.
Conclusions: : Info, is most beneficial @ moderate variances. The benefit of info. flow is higher at higher capacities. If the variance of the demand seen by the customer is small, we can expect the benefit of info. flow to increase with increase in penalty cost.
J. J. Gentry. The role of carriers in buyer-supplier strategic partnerships: A supply chain management approach. Journal of Business Logistics 17:33-55, 1996.Problems Addressed: Reports on the nature and degree of carrier involvement within buyer-supplier strategic partnerships.
Conclusions: : Study indicates that three way relationships are typical. Therefore, buyer-supplier partnerships can establish a solid foundation for the formation of successful SCs over time. Should integrate carrier operations into overall buyer-supplier planning.
A. M. Geoffrion and G. W. Graves. Multi-Commodity Distribution Design by Benders Decomposition. Management Science 20:822-844, 1974.Problems Addressed: Distribution system design: Optimal location of intermediate distribution facilities between plants and customers.
Conclusions: : Remarkable effectiveness of Benders Decomposition as a computational strategy for static multi commodity intermediate location problems.
A. M. Geoffrion and R. F. Powers. Twenty years of strategic distribution system design: An evolutionary perspective. Interfaces 25:105-127, 1995.Problems Addressed: An overview of the state of design in distribution systems would be helpful in understanding why the tools we use today exist in the form that they do.
Conclusions: : Create logistics analysis and planners have found ingenious & unanticipated ways to use and embellish classic models. This should continue as these tools become more widely used and accessible thru personal computers.
P. Glassman and S. Tayur. Sensitivity Analysis for Base-Stock Levels in Multiechelon Production-inventory Systems. Management Science 41:263-279, 1995.Problems Addressed: Effective management of inventories in large scale production and distribution systems requires methods for bringing model solutions closer to the complexities of real systems.
Conclusions: : For various cost and performance measure in capacitated, multiechelon production inventory systems, derivative with respect to base stock levels can be consistently estimated from simulation, or even real data.
C. Gopal. Manufacturing Logistics Systems for a Competitive Global Strategy. From Logistics: The Strategic Issue, edited by M. Christoper, 1992.Problems Addressed: Explores aspects of an integrated system and the logistics chain, form purchasing to distribution, necessitated by a global policy.
Conclusions: : Benefits of a global system include: better coordination of customer service in multiple markets, fast and accurate info transfer, less difficulty complying with local laws and regs, conformance of both central and local planning to overall objectives.
S. C. Graves, D. B. Kletter, H. B. William. A Dynamic Model for Requirements Planning with Application to Supply Chain Optimization. To be published in Operations Research, 1998.Problems Addressed: Develops a new model for requirements planning multi-stage production inventory systems.
Conclusions: : Provides some evidence of the value of taking a corporate wide view by optimizing the supply chain rather than sub-optimizing each of the pieces.
T. R. Hammel and L. R. Kopezak. Tightening the supply chain. Production & Inventory Management JournalProblems Addressed: Describes how HP successfully used its "Frontier Program" through product redesign and DRP to improve its series 700 terminals operations.
Conclusions: : Product redesign was essential (including CIM); enhanced product availability through demand pull DRP; warranty cost in check with US manufacture.
M Henig, Y. Gerchak, R. Ernst and D. Pike. An Inventory Model Embedded in Designing a Supply Contract. Management Science 43:184-197, 1997Problems Addressed: Explore the joint optimization of contract parameter and inventory control policy in an environment characterized by demand uncertainty in order to specify the frequency of, and volume for, future deliveries.
Conclusions: : Show that the difference in costs can be significant when comparing the cost of suboptimal policies, in conjunction with the best contract volume, to those of the optimal inventory policy and associated contract volume.
J. L. Heskett. Logistics-Essential to Strategy. Harvard Business Review 55:85-96, 1977.Problems Addressed: Many firms develop competitive logistics strategies based in part on concepts like postponement, standardization, consolidation & differentiation. Firms redesgn systems to provide more effective support for corporate strategy.
Conclusions: : Finds that logistics management must participate in strategic decision making. Argues that globalization willl have a huge impact on the importance of good logistics design and development within corporate strategy.
M. Holmlund and S. Kock. Buyer dominated relations in a supply chain: A case study of four small-sized suppliers. International Small Business Journal 15:26-40, 1996.Problems Addressed: There is a need to analyze relations and bonds between dominating buyer and small sized suppliers in a supply chain.
Conclusions: : Although the relationships between the buyer and the small vendors was quite old, few strong bonds were found. Contracts remained relatively short term. Buyer has no incentive to help vendor max. profits and vendor was forced to make unprofitable parts.
J. B. Houlihan. International Supply Chain Management. International Journal of Physical Distribution & Materials Management 15:22-38, 1985.Problems Addressed: Describes the concepts underlying the new approaches to managing change in the international chains, the barriers to be overcome and the lessons learned.
Conclusions: : A holistic approach to Int. SCM requires the incorporate of a logistics focus into the strategies decisions of the firm.
J. B. Houlihan. International Supply Chain Management: A New Approach. Management Decision 26:13-19, 1988.Problems Addressed:
A. V. Iyer and M. E. Bergen Quick Response in Manufacturer-Retailer Channels. Management Science 43:559-570, 1997.Problems Addressed:
T. Jones and D. Riley. Using Inventory for competitive and advantage through Supply Chain Management. International Journal of Physical Distribution & Materials Management, 15:16-26, 1984.Problems Addressed: Focus on the myths of the past.
Conclusions: : Barriers to SCM are traditional, organizational, legal and non-integrated mgt systems--mgt objectives and measures are in fundamental conflict. Key to success; mutually advantageous relationships that make the chain work more smoothly at lower costs.
G. A. Kruger. The Supply Chain Approach to Planning and Procurement Management. Hewlett-Packard Journal, February:28-38, 1997.Problems Addressed: The supply chain approach models stochastic events influencing a manufacturing organization's shipment and inventory performance in the same way that an engineer models tolerance buildup in a new product design.
Conclusions: : The actual performance the factory experiences will depend upon whether the supply chain performs according to the inputs provided by the statistical model.
B. J. La Londe. Evolution of the Integrated Logistics Concept. From the Logistics Handbook, Eds. Roberson, Capcino & Howe, Free Press, New York, 1994.Problems Addressed: Describes the evolution of Integrated Logistics;
Conclusions: : None Given.
- Physical distbn;
- Internal linkages;
- external linkages;
B. J. La Londe and J. M. Masters. Emerging logistics strategies: Blueprints for the next century. International Journal of Physical Distribution & Logistics Management, 24:35-47, 1994.Problems Addressed:
R. Lamming. Squaring Lean Supply with Supply Chain Management. International Journal of Operations & Production Management, 16(2):183-196, 1996.Problems Addressed: To understand lean production better, we must investigate SCM.
Conclusions: : Challenge: redesign the way in which responsibility for value mgt is shared. Precept of vantage point and customer superiority that are central to SCM are directly contrary to those of lean supply; need shared beliefs; customer infallibility problematic.
C. J. Langley. The Evolution of the Logistics Concept. From Logistics: The Strategic Issues, edited by M. Christopher, 1992.Problems Addressed: Casts the evolution of the logistics into three specific contexts; past (1950-1964); present (1965-); future.
Conclusions: : Four stage in development of Logistics function; (1) cost control; (2) profit center orientation recognizes positive impact on sales; (3) view logistics as key to product differentiation; (4) principal strategy adv. revolves around logistics.
P. J. Lederer and L. Li. Pricing, Production, Scheduling and Delivery-Time Competition. Operations Research 45:407-420, 1997.Problems Addressed: Studies competition between firms that produce goods or services for customers sensitive to delay time. Firms complete by setting prices and production rates for each type of customer and by choosing scheduling policies.
Conclusions: : A faster, lower variability and lower cost firm always has a larger market share, higher capacity utilization, and higher profits. Also, customers with higher waiting costs pay higher full prices, and that each firm charges a higher price and delivers faster to more impatient customers.
H. L. Lee and C. Billington. Material management in decentralized supply chains. Operations Research 41:835-847, 1993.Problems Addressed: Need a decentralized model that allows for
Conclusions: : A simple model based DSS can be used by practioners to evaluate alternative supply chain designs and determine the most practical inventory control under uncertain conditions in a system of decentralized control.
- generalized network structure
- uncertainties (demand, process & supply)
- simplicity in computation
- capacitate production systems
H. L. Lee and C. Billington. The evolution of supply chain management models and practice at Hewlett-Packard. Interfaces 25:42-63, 1995.Problems Addressed: Show how HP successfully used an integrated team approach to implement SCM and improve customer satisfaction.
Conclusions: : SCM is a business fundamental.
H. L. Lee, V. Padmanabhan and S. Whang. Information Distortion in a Supply Chain; The Bullwhip Effect. Management Science 43:546-558, 1997.Problems Addressed: An analysis of the sources of the bullwhip effect and strategies that can be employed to lessen the negative impact of the effect are explore.
Conclusions: : Demand distortion may arise as a result of optimizing behaviors of individuals in the supply chain. Cooperation and coordination among members of the chain is necessary to combat this problem. Net benefits of such actions can e shared by members.
M. R. Leenders, J. Nollet and L. M. Ellram. Adapting purchasing to supply chain management. International Journal of Physical Distribution & Logistics Management, 24:40-42, 1994.Problems Addressed: Purchasing function must become fully integrated into the customer-employer SC.
Conclusions: : Suppliers and the way in which we relate to them must provide a strategic advantage. The PM should manage the SC by integrating the org's internal and external ops.
D. Levy. Lean production in an International Supply Chain. Sloan Management Review, 38:94-102, 1997.Problems Addressed: While the business press has championed both globalization and lean production as inevitable and valuable, there has been little investigation into the interaction of the two.
Conclusions: : Lean production requires frequent, rapid flows of info. & goods along the value chain, which is costly when value chain activities are geographically dispersed. Two key elements of lean production; design for mfg. and low defect levels stabilize the SC.
J. M. Masters and T. L Pohlen. Evolution of the Logistics Profession. From the Logistics Handbook, Eds. Roberson, Capacino & Howe Free Press: New York, 1994.Problems Addressed: Describes the evolution of Logistics Profession into 3 phases; functional mgt (1960-70s); Internal integration (1980s); External integration (1990s).
Conclusions: : None Given.
A. McMullan. Supply Chain Management Practices in Asia Pacific Today. International Journal of Physical Distribution & Logistics Management, 26:79-95, 1996.Problems Addressed: Examines how managers in Asia Pacific are responding to prssures of competition and the strategies they are implementing to enhance SCM (mgt issues, roles and responsibilities, competitive strategies, performance mgt)
Conclusions: : To successfully implement SCM, many firms will have to change their organizational structures, SCM relationships, and performance measures. Also requires implementation of new information technology.
H. Min. Distribution Channels in Japan (Challenges for the Japanese Market Entry). International Journal of Physical Distribution & Logistics Management, 26:22-35, 1996.Problems Addressed: Effective way of enhancing ability of US companies to penetrate Japanese market is to study Japanese practices (e.g. an indigeneous channel dist. which disfavors foreign firms due to legal impeds & "locked-up relationships".
Conclusions: : Strategies for successful penetraion include: targeting specialized niche markets; selling under Japanese brand names; emphasize follow-up service; piggyback; sell in non-keiretsu system; direct marketing.
K. Moinzadeh and P. K. Aggarwal. An information Based Multi-Echelon Inventory System with Emergent Orders. Operations Research, 45:694-701, 1997.Problems Addressed: (S-1, S) multiechelon inventory system where all the stocking locations have the option to replenish their inventory through either a normal or a more expensive emergency resupply channel.
Conclusions: : Incorporating information on the remaining leadtimes of the outstanding orders, when selecting resupply mode, can result in considerable cost savings when compared to policies which allow a single resupply mode.
M. Mourits and J. J. Evans. Distribution network design. International Journal of Physical Distribution & Logistics Management, 25:43-57, 1995.Problems Addressed: Many logistics support systems have been developed to assist design but there are too many shortcomings--need coherent approach. Goal of paper is to make optimization easier to use and make solutions meaningful to customers.
Conclusions: : IPSF provides a systematic approach to the challenges, firms face in designing their supply chain.
C. O'Brien and M. Head. Developing a Full Business Environment to Support Just-In-Time Logistics. International Journal of Production Economics, 42:41-50, 1995.Problems Addressed: Establish a business cycle (the transactions needed to complete a purchase of goods or services) appropriate to JIT supply to the motor industry. The business cycle also includes the communication between all partners in the chain.
Conclusions: : EDI was seen to be necessary to support a JIT full business cycle. There are significant savings to be gained from the use of the concept when the FBC is integrated throughout the SC. More work is needed to support the financial aspects of SCM.
K. A. O'Laughlin and W. C. Capacino. Logistics Strategy. From the Logistics Handbook, Eds. Roberson, Capacino & Howe Free Press: New York, 1994.Problems Addressed:
K. R. Oliver and M. D. Webber. Supply Chain Management: Logistics Catches Up With Strategy. From Logistics: The Strategic Issues, edited by M. Christopher, 1992.Problems Addressed: Booz-Allen study of a variety of industries worldwide found that traditional approaches of seeking tradeoffs among the various conflicting objectives of key functions along the SC no longer worked well.
Conclusions: : Unlike traditional approaches (manipulation of inventories and improved material mgt.), SCM requires and underlying strategic focus along with the involvement and commitment of top mgt.
B. Prida and G. Gutierrez. Supply Management: From purchasing to external factory management. Production and Inventory Management Journal, 37:38-43, 1996.Problems Addressed: The role of the purchasing function (buyer) has changed dramatically with the onset of SCM. The authors propose to discuss the challenges that face purchasing employees.
Conclusions: : The evolution in supply chain management has occurred in three stage: (1) traditional purchasing roll; (2) SCM through subcontracting; (3) SCM through innovation.
C. S. Revelle and G. Laporte. The plant location problem: New models and research prospects. Operations Research, 44:864-874, 1996.Problems Addressed: Objectives needed: (1) Capacitated Plant, Fixed charge transport; (2) Max. ROI Location has been ignored in the past; (3) Multi objective problems should be considered; (4) Multiple product/Multiple machine problems; (5) Probs with spatial interaction models.
Conclusions: : Plant location problems can be expanded and restrictions can be relaxed to bring more realism into models while providing new challenges for solving plant location problems.
J. H. Roberts. Formulating and Implementing a Global Logistics Strategy. International Journal of Logistics Management, 1:53-58, 1990.Problems Addressed: Provide the background scenario for which ILC is developing their corporate logistics strategy.
Conclusions: : None Given.
E. P. Robinson, L. Gao and S. D. Muggenborg. Designing an integrated distribution system at DowBrands, inc. Interfaces 23:107-117, 1993.Problems Addressed: Developed an optimization based decision support system for designing two-echelon, multiproduct distribution systems and applied it to DdowBrands, Inc.
Conclusions: : Optimization procedure gave management the analytical support it needed to eliminate uncertainties and develop guidelines for change.
R. Roy and S. Pofter. Managing engineering design in complex supply chains. International Journal of Technology Management, 12:403-420, 1996.Problems Addressed: Literature on "supplier partnerships" has largely overlooked the implications for managing design and development.
Conclusions: : The case studies identify several factors that determine the extent to which it is appropriate to develop design and development to suppliers. These factors include the type of industry, firm and product and level of innovation.
R. Satterfield and E. P. Robinson. Designing Distribution Systems to Support Vendor Strategies in Supply Chain Management. Presented at Supply Chain Linkages Symposium, Indian University, 1996.Problems Addressed: The interactions between cost, distribution services, market share, and revenue are largely ignored by existing optimization based system design models.
Conclusions: : Successful application of framework for designing a distribution system. Model draws upon research from varied discipline and includes revenue considerations in addition to cost minimization. Integrated approaches for vendor dist. design are justified.
C. Scott and R. Westbrook. New Strategic Tools for Supply Chain Management. International Journal of Physical Distribution & Logistics Management, 21:22-33, 1991.Problems Addressed: How to overcome major barriers to SC Integration.
Conclusions: : Celebrated examples of SCM are more admired than emulated. Managers should ask three question; (1) what is the current shape of the SC?; (2) How collaborative are the relationships?; (3) which combination of physical & info. processing to use?
R. D. Shapiro. Get leverage from logistics. Harvard Business Review 62:119-126, 1984.Problems Addressed: Managers should understand precisely what their companies are trying to do and bring their logistical capabilities in line with corporate purpose. What must our logistics system do well?
Conclusions: : A Company can gain leverage by ensuring a good fit between its logistics system and competitive strategy.
A. Slater. The Significance of Industrial Logistics. International Journal of Physical Distribution, 7:70-112, 1976.Problems Addressed: There is need for a framework which fully describes the role and organization of industrial logistics. A definition, the structure and a discussion of it's significance to the bottom line are needed.
Conclusions: : A total systems approach to the logistics channel will reduce total costs and considerably improve the overall quality of the operation. The isolation and individual aims of channel members should be replaced by a cooperation.
P. A. Slats, B. Bhola J. J. Evers and G. Dijkhuizen. Logistic Chain Modeling. European Journal of Operations Research, 87:1-20, 1995.Problems Addressed: Analyze and evaluate the role OR can play in logistic chain integration and BPR.
Conclusions: : OR models and techniques are well suited to analyze the local performance of logistics sub-chains and processes.
K. Srinivasan, B. Kekre, and T. Mukhopadhyay. Impact of electronic data interchange technology on JIT shipments. Management Science, 40:1291-1304, 1994.Problems Addressed: Does the use of EDI enhance the shipment performance of suppliers in a JIT environment?
Conclusions: : EDI technology facilitates accurate and timely information which aids in the coordination of material movement and leads to better shipment performance. Firms pursuing a single source strategy are prone to greater shipment errors.
A. J. Stenger. Reducing Inventories in a Multi-Echelon Manufacturing Firm: A case Study. International Journal of Production Economics, 45:239-249, 1996.Problems Addressed: Presents a method to help a firm identify the relative impact of various determinants of inventories as a means of setting priorities for inventory reduction.
Conclusions: : Rough-cut models seem to offer potential to better gauge the magnitude of the opportunities in a given situation.
A. J. Stenger. Distribution Resource Planning. From the Logistics Handbook, Eds. Roberson, Capacino & Howe Free Press: New York, 1994.Problems Addressed:
A. J. Stenger. Inventory Decision Framework.Problems Addressed: Provides a framework within which to view inventory decisions in logistics.
Conclusions: : Inventory decision must be made within the context of the efficient functioning of the entire SC. Approach include: eliminate need for inventory; maintain minimum inventory required; use scientific approaches to manage inventory.
G. Stevens. Integrating the Supply Chain. International Journal of Physical Distribution & Materials Management, 19:3-8, 1989.Problems Addressed: Develop an integrated supply chain strategy.
Conclusions: : Companies that consider the supply chain during the strategic debate, will be more successful in terms of increased market share and lower asset base.
G. Tagaras and H. L. Lee. Economic models for vendor evaluation with quality cost analysis. Management Science, 42f:1531-1543, 1996.Problems Addressed: Vendor selection criteria needs to go beyond costs and delivery performance and also address the quality of incoming materials.
Conclusions: : Vendors must not be evaluated only on the basis of their own quality and prices. The attractiveness of a vendor also depends on the quality and cost characteristics of the purchaser.
D. J. Thomas and P. M. Griffin. Coordinated supply chain management. European Journal of Operations Research, 94:1-15, 1996.Problems Addressed: Review the literature addressing coordinated planning between two or more stages of the supply chain, placing emphasis on models that address a total supply chain model.
Conclusions: : Strategic models based on case studies are popular; most of these models are based on complicated integer LPs with underlying network structure that can be exploited using decomposition; advancement in comm. and info tech present many SCM opportunities.
D. R. Towill. The seamless supply chain - The predators strategic advantage. International Journal of Technology Management, 13:37-56, 1997.Problems Addressed: The paper reviews the techniques available to "predators" seeking into gain competitive advantage for their supply chains.
Conclusions: : Must go beyond the lean supply chain to the seamless supply chain. Partnerships between members of the supply chain take a attitudnal change as well as a change of ownership in the process.
D. R. Towill, N. M. Naim and J. Wikner. Industrial Dynamics Simulation Models in the Design of Supply Chains. International Journal of Physical Distribution & Logistics Management, 22:3-13, 1992.Problems Addressed: Review the operation of supply chains, and provide simple conclusions about ways of reducing demand amplification.
Conclusions: : By using a simulation model of proposed sypply chains, different strategies can be compared and costed.
M. Verwijmeren, P. van der Viist and D. van Karel. Networked Inventory Management Information Systems: Materializing Supply Chain Management. International Journal of Physical Distribution & Logistics Management, 26:16-31, 1996.Problems Addressed: Need to elevate the SCM research from global concepts to some tangible information systems for inventory management in practice.
Conclusions: : A group of networked systems can act as a singel integrated decision system thus removing amplification in the supply chain.
S. Viswanathan and K. Mathur. Integrating Routing and Inventory Decisions in One-Warehouse Multi-Retailer, Multi-Product Distribution Systems. Management Science, 43:294-312, 1997.Problems Addressed: Consider distributions systems with a central warehouse and many retailers that stock a number of different products. Objective is to determine replenishment policies that specify delivery quantities and vehicle routes to minimize long-run inv. and trans. costs.
Conclusions: : Proposed heuristic is an excellent planning tool to control inventory and transportation costs in a multiechelon inventory/distribution system.
L. W. Walton. Partnership Satisfaction: Using the underlying dimensions of supply chain partnership to measure current and expected levels of satisfaction. Journal of Business Logistics, 17:57-75, 1996.Problems Addressed: The question of partnership satisfaction has generally gone unanswered. Need to assess current satisfaction and future expectation of partnership as perceived by business executives.
Conclusions: : Planning dimension found to be stat. sig., limited sharing of benefits between partners, managers are generally pleased with value of partnerships. Managers are not satisfied with their current level of communication and info. exchange with partners.
W. Zinn and D. J. Bowersox. Planning Physical Distribution with the Principle of Postponement. Journal of Business Logistics, 9:117-136, 1988.Problems Addressed: To provide effective support, managers need to serve an increased number of delivery destinations, while simultaneously supporting a growing number of SKU's. The principle of postponement can help in keeping costs down in this chaotic environment.
Conclusions: : Under specific conditions, the principle of postponement offers an opportunity for management to improve the productivity of physical distribution systems by reducing cost associated with anticipatory distribution.
W. Zinn and M. Levy. Speculative Inventory Management: A Total Channel Perspective. International Journal of Physical Distribution & Materials Management, 18:34-39, 1988.Problems Addressed: Determine the best place in the supply chain for speculative inventory.
Conclusions: : CFS is found to be useful in explaining actual company behavior in cases in which mgmt.'s objective is to minimize costs. Postponement/Speculation is more suitable for deciding under what circumstances a speculative inventory should appear in the chain.
Books and References
Useful Web Resources