A Stackelberg game theoretic model for optimizing product family architecting with supply chain consideration

Planning of an optimal product family architecture (PFA) plays a critical role in defining an organization's product platforms for product variant configuration while leveraging commonality and variety. The focus of PFA planning has been traditionally limited to the product design stage, yet with limited consideration of the downstream supply chain-related issues. Decisions of supply chain configuration have a profound impact on not only the end cost of product family fulfillment, but also how to design the architecture of module configuration within a product family. It is imperative for product family architecting to be optimized in conjunction with supply chain configuration decisions. This paper formulates joint optimization of PFA planning and supply chain configuration as a Stackelberg game. A nonlinear, mixed integer bilevel programming model is developed to deal with the leader–follower game decisions between product family architecting and supply chain configuration. The PFA decision making is represented as an upper-level optimization problem for optimal selection of the base modules and compound modules. A lower-level optimization problem copes with supply chain decisions in accordance with the upper-level decisions of product variant configuration. Consistent with the bilevel optimization model, a nested genetic algorithm is developed to derive near optimal solutions for PFA and the corresponding supply chain network. A case study of joint PFA and supply chain decisions for power transformers is reported to demonstrate the feasibility and potential of the proposed Stackelberg game theoretic joint optimization of PFA and supply chain decisions

Structuring postponement strategies in the supply chain by analytical modeling

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Coordinating pricing and inventory decisions in a multi-level supply chain: A game-theoretic approach

This paper concerns coordination of enterprise decisions such as suppliers and components selection, pricing and inventory in a multi-level supply chain composed of multiple suppliers, a single manufacturer and multiple retailers. The problem is modeled as a three-level dynamic non-cooperative game. Analytical and computational methods are developed to determine the Nash equilibrium of the game. Finally, a numerical study in computer industry is conducted to understand the influence of the market scale parameter and the components selection strategy on the optimal decisions and profits of the supply chain as well as its constituent members. Several research findings have been obtained. © 2010 Elsevier Ltd.link_to_subscribed_fulltex

Concurrent Product and Supply Chain Architecture Design Considering Modularity and Sustainability

Since sustainability is a growing concern, businesses aim to integrate sustainability principles and practices into product and supply chain (SC) architecture (SCA) design. Modular product architecture (MPA) is essential for meeting sustainability demands, as it defines detachable modules by selecting appropriate components from various potential combinations. However, the prevailing practice of MPA emphasizes architectural aspects over interface complexity and design production processes for the structural dimension, potentially impending manufacturing, assembly/disassembly, and recovery efficiency. Most MPA has been developed assuming equal and/or fixed relations among modules rather than configuring for SC effectiveness. Therefore, such methods cannot offer guidance on modular granularity and its impact on product and SCA sustainability. Additionally, there is no comparative assessment of MPA to determine whether the components within the configured modules could share multiple facilities to achieve economic benefits and be effective for modular manufacture and upgrade. Therefore, existing modular configuration fails to link modularization drivers and metrics with SCA, hampering economic design, modular recycling, and efficient assembly/disassembly for enhancing sustainability. This study focuses on the study of design fundamentals and implementation of sustainable modular drivers in coordination with SCA by developing a mathematical model. Here, the architectural and interface relations between components are quantified and captured in a decision structure matrix which acts as the foundation of modular clustering for MPA. Again, unlike previous design approaches focused only on cost, the proposed work considers facility sharing through a competitive analysis of commonality and cost. It also evaluates MPA's ease of disassembly and upgradeability by a comparative assessment of different MPA to enhance SCA sustainability. The primary focus is concurrently managing the interdependency between MPA and SCA by developing mathematical models. Consistent with the mathematical model, this thesis also proposes better solution approaches. In summary, the proposed methods provide a foundation for modeling the link between product design and SC to 1) demonstrate how sustainable modular drivers affect the sustainability performance, 2) evaluate the contribution of modularity to the reduction of assembly/disassembly complexity and cost, 3) develop MPA in coordination with SC modularity by trading off modular granularity, commonality, and cost, and 4) identify a sustainable product family for combined modularity considering the similarity of operations, ease of disassembly and upgradability in SCA. Using metaheuristic algorithms, case studies on refrigerators showed that MPA and its methodology profoundly impact SCA sustainability. It reveals that interactions between components with levels based on sustainable modular drivers should be linked with modular granularity for SCA sustainability. Another key takeaway is that instead of solely focusing on cost, facility sharing and ensuring ease of disassembly and upgradeability can help to reap sustainability benefits

PLATFORM-DRIVEN CROWDSOURCED MANUFACTURING FOR MANUFACTURING AS A SERVICE

Platform-driven crowdsourced manufacturing is an emerging manufacturing paradigm to instantiate the adoption of the open business model in the context of achieving Manufacturing-as-a-Service (MaaS). It has attracted attention from both industries and academia as a powerful way of searching for manufacturing solutions extensively in a smart manufacturing era. In this regard, this work examines the origination and evolution of the open business model and highlights the trends towards platform-driven crowdsourced manufacturing as a solution for MaaS. Platform-driven crowdsourced manufacturing has a full function of value capturing, creation, and delivery approach, which is fulfilled by the cooperation among manufacturers, open innovators, and platforms. The platform-driven crowdsourced manufacturing workflow is proposed to organize these three decision agents by specifying the domains and interactions, following a functional, behavioral, and structural mapping model. A MaaS reference model is proposed to outline the critical functions and inter-relationships. A series of quantitative, qualitative, and computational solutions are developed for fulfilling the outlined functions. The case studies demonstrate the proposed methodologies and can pace the way towards a service-oriented product fulfillment process. This dissertation initially proposes a manufacturing theory and decision models by integrating manufacturer crowds through a cyber platform. This dissertation reveals the elementary conceptual framework based on stakeholder analysis, including dichotomy analysis of industrial applicability, decision agent identification, workflow, and holistic framework of platform-driven crowdsourced manufacturing. Three stakeholders require three essential service fields, and their cooperation requires an information service system as a kernel. These essential functions include contracting evaluation services for open innovators, manufacturers' task execution services, and platforms' management services. This research tackles these research challenges to provide a technology implementation roadmap and transition guidebook for industries towards crowdsourcing.Ph.D

Supply Chain

Traditionally supply chain management has meant factories, assembly lines, warehouses, transportation vehicles, and time sheets. Modern supply chain management is a highly complex, multidimensional problem set with virtually endless number of variables for optimization. An Internet enabled supply chain may have just-in-time delivery, precise inventory visibility, and up-to-the-minute distribution-tracking capabilities. Technology advances have enabled supply chains to become strategic weapons that can help avoid disasters, lower costs, and make money. From internal enterprise processes to external business transactions with suppliers, transporters, channels and end-users marks the wide range of challenges researchers have to handle. The aim of this book is at revealing and illustrating this diversity in terms of scientific and theoretical fundamentals, prevailing concepts as well as current practical applications

Interpretive Structural Model of Key Performance Indicators for Sustainable Manufacturing Evaluation in Cement Industry

This paper aims to analyze the relationships among the Key Performance Indicators (KPIs) for sustainable manufacturing evaluation in the cement industry. The initial KPIs have been identified and derived from literature, and then validated by industry survey. As a result, three factors dividing into a total of thirteen indicators have been proposed as the KPIs for sustainable manufacturing evaluation in cement industry. Interpretive structural modeling (ISM) methodology is applied to develop a network structure model of the KPIs. The results show the indicators of economic factor are regarded as the basic indicator, while the indicators of environmental factor are indicated to be the leading indicator. Of those indicators, raw material substitution is regarded as the most influencing indicator. The ISM model can aid the cement companies by providing a better insight in evaluating sustainable manufacturing performance

Interpretive Structural Model of Key Performance Indicators for Sustainable Manufacturing Evaluation in Cement Industry

This paper aims to analyze the relationships among the Key Performance Indicators (KPIs) for sustainable manufacturing evaluation in the cement industry. The initial KPIs have been identified and derived from literature, and then validated by industry survey. As a result, three factors dividing into a total of thirteen indicators have been proposed as the KPIs for sustainable manufacturing evaluation in cement industry. Interpretive structural modeling (ISM) methodology is applied to develop a network structure model of the KPIs. The results show the indicators of economic factor are regarded as the basic indicator, while the indicators of environmental factor are indicated to be the leading indicator. Of those indicators, raw material substitution is regarded as the most influencing indicator. The ISM model can aid the cement companies by providing a better insight in evaluating sustainable manufacturing performance

THE ROLE OF UNDERLYING MECHANISMS IN ACHIEVING CONSISTENT HYBRID COMBINATIONS OF COMPETITIVE ADVANTAGES

This thesis takes a step beyond the current discussion on hybrid competitive strategies (HS) by identifying the underlying mechanisms and common elements of successful hybrid strategies. Reviewing empirical and theoretical literature revealed a significant gap in this respect. Therefore, the activity-based view of strategy is introduced to the discussion on HS. In a first step, four consistent and sustainable HS concepts are developed providing the basis for deriving specific HS models. A second step identifies commonalities among these HS types and theoretically derives a synthesized, common HS model. Thirdly, the critical realist stance was selected for answering this thesis’ research questions addressing consistent HS concepts, implementations, common activities achieving external and internal fit, as well as common capabilities and resources supporting these activities. In a case study approach, semi-structured, open ended interviews combining appreciative and laddering methods are conducted with twelve interviewees from five firms. The separate analysis of ladder elements and ladders allowed distinguishing constitutional from relational elements. Based on this, fourth, an empirically revised research construct is substantiated. This research finds HS firms applying intended and consistent, but mixed strategy concepts based on generating high customer benefits through combining competitive weapons of differentiation and price or total customer cost. Moreover, HS concepts centre on three strategic building blocks: customer centricity, fulfilment of customer needs and employee orientation. Additionally, the research indicates that firms apply activities primarily for achieving fit. While all firms combine both views, no activities are directed to both fit types simultaneously. Activities deploy capabilities and resources in general on two adaptive and two absorptive mechanisms. Several practical implications derive from this thesis. First, firms can apply the synthesized model as a kind of ‘blueprint’ providing orientation for how to combine competitive advantages. Second, policy makers can apply the outcomes as principles steering firms or industries to ‘higher’ levels of performance. Last, firm managers can adapt their own as well as their firm’s behaviour accordingly