Strategies to Minimize the Bullwhip Effect in the Electronic Component Supply Chain

Supply chain leaders in the information technology industry face challenges regarding their ability to mitigate amplified demand and supply variability in a supply chain network--the bullwhip effect--and reduce adverse implications on their component supply chain networks. The purpose of this multiple case study was to explore the strategies supply chain leaders in the United States used to reduce the bullwhip effect. Bullwhip effect theory served as the conceptual framework. Participants in the study were 5 purposefully selected supply chain leaders in the state of Texas who successfully implemented strategies to reduce the bullwhip effect on their networks. Data were collected from semistructured interviews and analysis of documents from the participants\u27 websites. The data were analyzed using the 5 data analysis steps consistent with Yin\u27s approach: collection, stratification, reassembly, interpretation, and conclusion. Four themes emerged from data analysis: (a) collaboration strategy, (b) communication strategy, (c) component shortage reduction strategy, and (d) resource management strategy. Supply chain leaders might use the findings of this study to reduce the bullwhip effect within their networks and improve their profitability. The implications for positive social change include the potential for leaders to improve environmental sustainability by using effective supply chain strategies to reduce the accumulation of excess inventories, reduce transportation fuel usage, and lessen the consumption of natural resources

Staggered deliveries in production and inventory control

This thesis investigates production-inventory systems where replenishments are received every period (for example every day or shift), but where production plans are determined less frequently (weekly, fortnightly, or monthly). Such systems are said to use staggered deliveries. This practice is common in industry, but the theoretical knowledge is limited to a small set of inventory models, none of which include capacity costs. This thesis uses time series analysis to expand our understanding of staggered deliveries from the perspectives of inventory and production-inventory control. The contribution to inventory theory consists in the development of an optimal policy for autocorrelated demand and linear inventory costs, including exact expressions for costs, availability, and fill rate. In addition the thesis identifies a procedure for finding the optimal order cycle length, when a onceper- cycle audit cost is present. Notably, constant safety stocks are suboptimal, and cause both availability and fill rate to fluctuate over the cycle. Instead, the safety stocks should vary over time, causing the availability, but not the fill rate, to be constant. The contribution to production-inventory theory comes from two perspectives: First, an optimal policy is derived for quadratic inventory and capacity costs; second, four pragmatic policies are tested, each affording a different approach to production smoothing and the allocation of overtime work (once per cycle, or an equal amount of overtime every period). Assuming independent and identically distributed demand, these models reveal that all overtime or idling should be allocated to the first period of each cycle. Furthermore, it is shown that the order cycle length provides a crude production smoothing mechanism. Should a company with long reorder cycles decide to plan more often, the capacity costs may increase. Therefore, supply chains should implement a replenishment policy capable of production smoothing before the order cycle length is reduced. i

Physical distribution in South Africa : a review and a system design for hanging textile merchandise

Bibliography: pages 149-150.The subject of physical distribution was first examined in the early 1900s. It was developed and refined especially during World II under the name of 'Logistics', and began to be adopted in the field of business from the 1950s. From the 1960s onwards, national bodies have been established, both in the U.S. and the U.K., and works and theories have been published leading to the establishment of journals and the establishment of formal education programmes all dealing with physical distribution. A review of published works on the subject was undertaken. Some books were studied, as well as a number of journal articles dating from the early 1970s. No suitable references were obtained dealing with the subject in a South African context. A project was also carried out to design a system for distributing garments in a hanging mode. The thesis thus concerns a general review of physical distribution management and the distribution of goods and services throughout business and industry, with an emphasis being placed on south African conditions. The principal objectives of this study were to examine and review the state-of-the-art of the general theory and the use of physical distribution, to suggest means of applying it in South Africa and to briefly examine future trends and developments. These objectives were achieved by examining from books and articles the concept and theory of distribution, its interrelationships with aspects such as marketing, production and business organisations, and its management in business organisations: by discussing some characteristics of South African business and industry; by examining certain areas that provide the greatest potential for improvements: by discussing a project carried out to design a distribution system for hanging garments merchandise; and by examining future trends both overseas and in South Africa. Physical distribution is shown to be an important subject for business and society and for the economy as a whole. It is always changing in a dynamic environment and requires constant monitoring. This thesis shows how this field, which has been researched and developed overseas, is affected by local conditions and should be applied to specific areas in South Africa

Operational Research: Methods and Applications

Throughout its history, Operational Research has evolved to include a variety of methods, models and algorithms that have been applied to a diverse and wide range of contexts. This encyclopedic article consists of two main sections: methods and applications. The first aims to summarise the up-to-date knowledge and provide an overview of the state-of-the-art methods and key developments in the various subdomains of the field. The second offers a wide-ranging list of areas where Operational Research has been applied. The article is meant to be read in a nonlinear fashion. It should be used as a point of reference or first-port-of-call for a diverse pool of readers: academics, researchers, students, and practitioners. The entries within the methods and applications sections are presented in alphabetical order. The authors dedicate this paper to the 2023 Turkey/Syria earthquake victims. We sincerely hope that advances in OR will play a role towards minimising the pain and suffering caused by this and future catastrophes

Operational Research: Methods and Applications

Throughout its history, Operational Research has evolved to include a variety of methods, models and algorithms that have been applied to a diverse and wide range of contexts. This encyclopedic article consists of two main sections: methods and applications. The first aims to summarise the up-to-date knowledge and provide an overview of the state-of-the-art methods and key developments in the various subdomains of the field. The second offers a wide-ranging list of areas where Operational Research has been applied. The article is meant to be read in a nonlinear fashion. It should be used as a point of reference or first-port-of-call for a diverse pool of readers: academics, researchers, students, and practitioners. The entries within the methods and applications sections are presented in alphabetical order

Strategic inventory placement in multi-echelon supply chains : three essays

Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, 2008.Includes bibliographical references (p. 134-137).A central question in supply chain management is how to coordinate activities and inventories over a large number of stages and locations, while providing a high level of service to end customers. One theoretically and practically important methodology for addressing this problem is the guaranteed service (GS) framework, in which the stages of the supply chain operate according to base stock policies, and prove guaranteed service to one another. Demand is assumed to be bounded. Previous work on GS models has established very effective algorithms for finding optimal safety stock placement. In the first essay of the thesis, we show how these methods can be generalized to handle problems with capacity constraints. Furthermore, we investigate orders that are censored (reduced so as to prevent deliveries greater than what can be processed). We find safety stock reductions, sometimes even below what was needed in the no-constraint situation. In the second essay, we investigate a situation in which different parts of the supply chain are controlled by different parties, each of which selfishly applies its own GS optimization. We find that provided that the parties can agree on the right service time between them, it will be in their own interests to maintain the globally optimal solution (i.e., the system is incentive compatible). This suggests that the GS framework is better suited for coordination, than are other frameworks analyzed in the coordination literature. Finally, in the third essay, we apply the GS framework to a setting where orders are driven by forecasts and schedules, rather than by past demand as in previous GS work. We show precisely how the demand bound can be replaced by a bound on forecast errors, and that existing optimization methods can be used.(cont.) In a case study, we obtained data from the supply chain of an electronic test system, as well as characterized the forecasting process. We found that incorporating the forecast process led to 25% reduction of safety stocks.by Tor Schoenmeyr.Ph.D

Graduate School: Course Decriptions, 1972-73

Official publication of Cornell University V.64 1972/7

Proceedings of the Conference on Production Systems and Logistics: CPSL 2022

[no abstract available