A comparison between lean and visibility approach in supply chain planning

Nowadays, competition increases more and more in the market and it is moved from firm vs firm to supply chain vs supply chain. Therefore, supply chains (SC) are always looking to improve their efficiency to excel in the market. In order to do that, SC managers pay much attention to the coordination among SC members. SC planning allows the coordination among the SC players. In the literature, many SC planning approaches have been developed and analyzed, but up to now, the debate on which is the best approach is an open issue. On the other hand, lean approach is becoming more and more popular among SC managers. Both practitioners and academics have recognized the importance of Lean approach for single firm efficiency. This paper aim at evaluating the impact of Lean approach implementation in supply chain planning tasks. It provides an in-depth analysis of Lean SC planning policy impact on SC performances and compare it with traditional EOQ and Visibility policies. The influence of SC planning policies and of external parameters is assessed in a DES simulation study. The simulation model tests a multi-product three-echelon supply chain. Lean "pull" principle is developed through Kanban system implementation and Lean "create the flow" principle is developed through setup time and batch size reductions. The simulation study analyses inventory level, transportation performance and service level performances. According to simulation outputs a total SC logistic costs have been evaluated for each scenario. The results provide new insights suggesting that Lean supply chain planning policy gives competitive advantages. The results have important consequences for implementation of Lean concepts in practice in SC planning tasks

Value of supplier's capacity information in a two-echelon supply chain

Cataloged from PDF version of article.In traditional supply chain models it is generally assumed that full information is available to all parties involved. Although this seems reasonable, there are cases where chain members are independent agents and possess different levels of information. In this study, we analyze a two-echelon, single supplier-multiple retailers supply chain in a single-period setting where the capacity of the supplier is limited. Embedding the lack of information about the capacity of the supplier in the model, we aim to analyze the reaction of the retailers, compare it with the full-information case, and assess the value of information and the effects of information asymmetry using game theoretic analysis. In our numerical studies, we conclude that the value of information is highly dependent on the capacity conditions and estimates of the retailers, and having information is not necessarily beneficial to the retailers

Collaboration and information sharing in dyadic supply chains: A literature review over the period 2000–2012

Information sharing and coordination between the agents of a supply chain are considered to be an effective strategy for improving its global performance. This paper presents an updated review of current literature examining the impacts of information sharing and collaboration strategies on supply chain dynamic performance, with particular focus on dyadic structure. To achieve this, a systematic review approach is followed over the period 2000–2012, intending to ensure that the process is reproducible and auditable. A comprehensive taxonomy is also presented, highlighting strategic and operational impacts of collaborative structures. The analysis revealed that collaborative and information sharing issues underlined 10 years ago still require further attention from researchers

Value of supplier's capacity information in a two-echelon supply chain

In traditional supply chain models it is generally assumed that full information is available to all parties involved. Although this seems reasonable, there are cases where chain members are independent agents and possess different levels of information. In this study, we analyze a two-echelon, single supplier-multiple retailers supply chain in a single-period setting where the capacity of the supplier is limited. Embedding the lack of information about the capacity of the supplier in the model, we aim to analyze the reaction of the retailers, compare it with the full-information case, and assess the value of information and the effects of information asymmetry using game theoretic analysis. In our numerical studies, we conclude that the value of information is highly dependent on the capacity conditions and estimates of the retailers, and having information is not necessarily beneficial to the retailers

Multi-dimensional nature of service innovation: Operationalisation of the elevated service offerings construct in collaborative service organisations

Purpose: Innovation in services is thought to be multi-dimensional in nature, and in this context the purpose of this paper is to present and operationalise the concept of "elevated service offerings" (ESO) in collaborating service organisations. ESO stands for new or enhanced service offerings which can only be eventuated as a result of partnering, and which could not be delivered on individual organisational merit. ESO helps us expand our understanding of service innovation to include a service network or service system's dimension. Design/methodology/approach: A structural equation model is specified and estimated based on constructs and relationships grounded in the literature, as well as self-developed constructs, using empirical data from 449 respondents in an Australian telecommunications service provider (SP) and its partnering organisations. Findings: Results show that ESO is a multi-dimensional construct which was operationalised and validated through an extensive literature review, exploratory factor analysis, confirmatory factor analysis, and structural equation modelling using a holdout sample. Research limitations/implications: Qualitative and empirical data analysis was undertaken with data collected from a single large telecommunications SP organisation, and its partnering organisations. Future research may seek to collect data from the entire telecommunications industry sector and their partnering organisations, across other service sectors, or even any other organisation where collaboration is pivotal to their success. Practical implications: Service organisations today need to understand that innovation in services is not just about process or product innovation, or even performance and productivity improvements, but in fact includes organisational forms of innovation. Indeed, the interactions and complementarities between the three different aspects of ESO - strategic, productivity, and performance - highlight the increasing complex and multi-dimensional character of innovation and the ongoing iterative process. Originality/value: This research provides empirical evidence for the existence of a multi-dimensional innovation in services construct - known as elevated service offerings in a collaborative service network, along with an adapted definition of service and a service innovation model. © Emerald Group Publishing Limited

Antecedents of Supply Chain Visibility in Retail Supply Chains: A Resource-based Theory Perspective

Although visibility has become a popular buzzword in the supply chain literature it remains an ill-defined and poorly understood concept. It is assumed that if companies across supply chains have visibility of demand, inventory levels, processes, etc., that organizational performance improves. This research explores the antecedents of high levels of supply chain visibility from a resource-based theory perspective across five different external supply chain linkages. We find that the level of visibility across these linkages differs considerably based on various contributing factors which are both technology and non-technology based. Using resource-based theory, we identify those factors that can give a sustainable competitive advantage to a supply chain linkage through a “distinctive” or high level of visibility

Modeling the environmental impact of demand variability upon supply chains in the beverage industry

High demand variability can produce several inefficiencies in the supply chain, increasing cost and decreasing service level. This research focuses on the environmental impact of demand variability on supply chains especially in the beverage industry by investigating the relationship between demand variability and the emissions of carbon dioxide. The analysis was based on a beverage industry case, considering a two-stage supply chain. A simulation model was developed to represent the supply chain. The experimental factors demand variability, demand level, forecast method, system size, and truck fleet configuration were manipulated in order to represent different scenarios. A statistical Design of Experiment (DOE) model was used to understand the impact of these factors in relation to the emissions of carbon dioxide, cost and service level. The findings suggest that increments in demand variability result in an increment in carbon dioxide emissions due to the distribution of product. It was also observed that an increment in demand variability results in an increment in cost and a decrease in service level. The study also suggests that the factors that influence demand level and truck fleet configuration have a significant impact on the amount of carbon dioxide emissions. A significant interaction between demand variability and demand level was also identified in relation to carbon dioxide emissions, cost, and service level. Trade-offs were identified between carbon dioxide emissions and service level as well as between cost and service level