Information Exchange in Global Production Networks: Increasing Transparency by Simulation, Statistical Experiments and Selection of Digitalization Activities

Today, companies of all industries are part of global production networks. They have a variety of performance relationships with suppliers and customers. Digitalization offers the potential to exchange more information between the partners of global production networks. This may improve operational performance. Especially within the three business processes order management, quality problem solving and engineering change management, a targeted increase in transparency promises a better handling of disruptions and an increase in robustness. This paper presents a simulation-based methodology for modeling production and business processes as well as information exchange in global production networks. Following the principles of Design of Experiment (DoE), screening test plans first carve out the impact of disruptions and information exchange on the performance of the production network. This is followed by the determination of the disruption-robust information exchange using Taguchi-experiments. Starting from the actual state of information exchange, digitalization activities to increase transparency are finally determined. The activities consist of the implementation of digitalization technologies and the stronger linkage of information systems. The paper ends with an application of the methodology to a global production network for plastic-metal components in the automotive supplier industry

An Integrated View on the Future of Logistics and Information Technology

In this position paper, we present our vision on the future of the logistics business domain and the use of information technology (IT) in this domain. The vision is based on extensive experience with Dutch and European logistics in various contexts and from various perspectives. We expect that the vision also holds for logistics outside Europe. We build our vision in a number of steps. First, we make an inventory of the most important trends in the logistics domain - we call these mega-trends. Next, we do the same for the information technology domain, restricted to technologies that have relevance for logistics. Then, we introduce logistics meta-concepts that we use to describe our vision and relate them to business engineering. We use these three ingredients to analyze leading concepts that we currently observe in the logistics domain. Next, we consolidate all elements into a model that represents our vision of the integrated future of logistics and IT. We elaborate on the role of data platforms and open standards in this integrated vision.Comment: 22 pages, 7 figures, 3 table

Framework for Product Lifecycle Management integration in Small and Medium Enterprises networks

In order to improve the performance of extended enterprises, Small and Medium Enterprises (SMEs) must be integrated into the extended networks. This integration must be carried out on several levels which are mastered by the Product Lifecycle Management (PLM). But, PLM is underdeveloped in SMEs mainly because of the difficulties in implementing information systems. This paper aims to propose a modeling framework to facilitate the implementation of PLM systems in SMEs. Our approach proposes a generic model for the creation of processes and data models. These models are explained, based on the scope and framework of the modeling, in order to highlight the improvements provided

A Study On Influencing Factors And Performance Of Logistics Outsourcing Practices Among Electrical And Electronics Firms In Malaysia

Penyumberluaran aktiviti logistik telah menjadi strategi popular bagi kebanyakan organisasi dalam memburu kecemerlangan operasi di era persaingan sengit pasaran global. Logistics outsourcing has been growing as a popular strategy for many organizations in pursuit of operational excellence despite the fierce competitive market globally

Understanding Collaborative Dynamics: A Critical Review and Inductive Investigation

Collaboration has been a topic of discussion for over 20 years. Managers are consistently calling for better collaboration and researchers have argued that managing tightly coupled relationships creates a co-mingling of complementary competencies that establishes distinctive advantages for firms. Even though there have been a few exemplar companies that have been capable of truly developing these complementary competencies, few companies truly understand the dynamics of a collaborative capability. This dissertation reviews the theoretical conceptualization and operationalization of tightly coupled relationships and through an interpretive analysis, begins to provide clarity to the following questions: * Under what conditions are tightly coupled relationship strategies justified? * What are the elements that constitute effective relationship strategies? * How can these elements be dynamically configured to deliver superior value and firm performance? Essay 1 sets up the theoretical foundation for the dissertation through an in-depth review of the current collaboration/integration literature and delineates and summarizes contrasting dimensions in supply chain relational strategies. An orienting conceptual framework is developed to provide clear insights for the analysis that is conducted in essay 3. Essay 2 focuses on the ontological and epistemological aspects of hermeneutics and promotes the use of this methodology for future research in the supply chain field. Because this methodology is new to the supply chain field a full methodological guideline is described and explained. Through a hermeneutical analysis, Essay 3 evaluates the operationalization of tightly coupled relationships using interview data from a combination of 11 manufacturers and retailers who practice collaborative behavior. The literature review and the orienting conceptual framework from Essay 1 are used to set the stage for the hermeneutical analysis. From the analysis, a framework is developed for use in future research

Real-time optimization of an integrated production-inventory-distribution problem.

In today\u27s competitive business environment, companies face enormous pressure and must continuously search for ways to design new products, manufacture and distribute them in an efficient and effective fashion. After years of focusing on reduction in production and operation costs, companies are beginning to look into distribution activities as the last frontier for cost reduction. In addition, an increasing number of companies, large and small, are focusing their efforts on their core competencies which are critical to survive. This results in a widespread practice in industry that companies outsource one or more than one logistics functions to third party logistics providers. By using such logistics expertise, they can obtain a competitive advantage both in cost and time efficiency, because the third party logistics companies already have the equipment, system and experience and are ready to help to their best efforts. In this dissertation, we developed an integrated optimization model of production, inventory and distribution with the goal to coordinate important and interrelated decisions related to production schedules, inventory policy and truckload allocation. Because outsourcing logistics functions to third party logistics providers is becoming critical for a company to remain competitive in the market place; we also included an important decision of selecting carriers with finite truckload and drivers for both inbound and outbound shipments in the model. The integrated model is solved by modified Benders decomposition which solves the master problem by a genetic algorithm. Computational results on test problems of various sizes are provided to show the effectiveness of the proposed solution methodology. We also apply this proposed algorithm on a real distribution problem faced by a large national manufacturer and distributor. It shows that such a complex distribution network with 22 plants, 7 distribution centers, 8 customer zones, 9 products, 16 inbound and 16 outbound shipment carriers in a 12-month planning period can be redesigned within 33 hours. In recent years, multi-agent simulation has been a preferred approach to solve logistics and distribution problems, since these problems are autonomous, distributive, complex, heterogeneous and decentralized in nature and they require extensive intelligent decision making. Another important part in this dissertation involved a development of an agent-based simulation model to cooperate with the optimal solution given by the optimization model. More specifically, the solution given by the optimization model can be inputted as the initial condition of the agent-based simulation model. The agent-based simulation model can incorporate many other factors to be considered in the real world, but optimization cannot handle these as needed. The agent-based simulation model can also incorporate some dynamics we may encounter in the real operations, and it can react to these dynamics in real time. Various types of entities in the entire distribution system can be modeled as intelligent agents, such as suppliers, carriers and customers. In order to build the simulation model more realistic, a sealed bid multiunit auction with an introduction of three parameters a, ß and y is well designed. With the help of these three parameters, each agent makes a better decision in a simple and fast manner, which is the key to realizing real-time decision making. After building such a multi-agent system with agent-based simulation approach, it supports more flexible and comprehensive modeling capabilities which are difficult to realize in a general optimization model. The simulation model is tested and validated on an industrial-sized problem. Numerical results of the agent-based simulation model suggest that with appropriate setting of three parameters the model can precisely represent the preference and interest of different decision makers