Decision Support for Optimal Adaptation of Product and Supply Chain Systems based on Real Options Theory

In order to remain profitable in the highly competitive global market, a manufacturing enterprise is expected to proactively adapt itself in anticipation of unplanned, but foreseeable high impact events. This paper presents a decision model for optimal adaptation of product and supply chain systems subject to sudden, severe changes in the operating environment. Extending our previous work, decision-tree based framework is developed for optimally choosing design-supplier alternatives in multi-product, multi-echelon product and supply chain systems based on the real options theory. A case study on a two-component, two-echelon supply chain is presented which highlights unique characteristics of product quality as compared to cost and time.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/87256/4/Saitou57.pd

Inconsistency and non-additive Choquet integration in the Analytic Hierarchy Process

We propose to extend the aggregation scheme of Saaty’s AHP, from the stan- dard weighted averaging to the more general Choquet integration. In our model, a measure of inconsistency between criteria is derived from the main pairwise comparison matrix and it is used to construct a non-additive capacity, whose associated Choquet integral reduces to the standard weighted mean in the con- sistency case. In the general inconsistency case, however, the new aggregation scheme based on Choquet integration tends to attenuate (resp. emphasize) the priority values of the criteria with higher (resp. lower) average inconsistency with the remaining criteria.Aggregation Functions, Multiple Criteria Analysis, AHP, Inconsintency, non-additive measures, Choquet integral, and Shapley values.

Using MACBETH with the choquet integral fundamentals to model interdependencies between elementary concerns in the context of risk management

Effective risk management typically requires the evaluation of multiple consequences of different sources of risk, and multicriteria value models have been used for that purpose. The value of mitigating a risk impact is often considered by risk managers as dependent on the levels of other impacts, therefore there is a need for procedures to identify and model these interactions within a value measurement framework. The Choquet Integral (CI) has been used for this purpose, and several studies in the performance measurement literature have combined the 2-additive CI operator with the MACBETH approach to model interdependencies in real contexts. In this paper, we propose an alternative procedure to model interdependencies and determine the CI parameters from one single MACBETH global matrix. The procedure is illustrated with the construction of a descriptor of impacts to evaluate the risk impacts at ALSTOM Power. The paper further explains the questioning protocol to apply the proposed procedure, as well as how decision-makers can interpret the CI parameters

A Representation of Preferences by the Choquet Integral with Respect to a 2-Additive Capacity

In the context of Multiple criteria decision analysis, we present the necessary and sufficient conditions allowing to represent an ordinal preferential information provided by the decision maker by a Choquet integral w.r.t a 2-additive capacity. We provide also a characterization of this type of preferential information by a belief function which can be viewed as a capacity. These characterizations are based on three axioms, namely strict cycle-free preferences and some monotonicity conditions called MOPI and 2-MOPI.multicriteria decision making; Choquet integral; 2-additive capacity; MACBETH

Towards a Quantitative Performance Measurement Model in a Buyer-Supplier Relationship Context

International audienc

Towards A System-Based Model For Overall Performance Evaluation In A Supply Chain Context

International audienceThe paper deals with the wide issue of overall performance expression of a system made of interacting entities. Formal aspects of overall performance expression are considered as a first step of this reflection in the context of supply chains (SC's). Indeed, a SC being a network of interconnected business entities, it is proposed to consider it as a system of systems. Because system behavior depends on process dynamics, the performance of any company of the SC highly depends on the performance of its processes. However, while process performance is clearly defined in the literature, performance of complex systems or systems of systems is more difficult to assess due to process interactions. The overall performance concept is usually unsatisfactory either for each company or for the whole SC. To express such performance in SC's, recent proposals have focused on the performance of the prime manufacturer. This performance being linked to the ones of the suppliers, the impact of supplier performances on the prime manufacturer performance has to be integrated. It is therefore proposed to respectively use the SCOR model for describing the involved sub-system processes and, from a computational point of view, to use the MAUT (Multi Attribute Utility Theory) MACBETH methodology to consistently compute the expected performances. More specifically, the Choquet integral is used as the aggregation operator to handle interactions between systems and processes. The case of a bearings manufacturer is used to illustrate the proposal for a supplier selection problem

Application of SCOR Model in an Oil- producing Company

Supply Chain Operations Reference (SCOR) model is developed and maintained by the Supply Chain Council (SCC). The model is a reference model which can be utilized to map benchmark and improve the supply chain operations. SCOR model provides companies with a basic process modeling tool, an extensive benchmark database by defining a set of supply chain metrics. This paper explains the process and results obtained by applying SCOR model to analyze the supply chain of Iranol Oil Company (IOC). Making numerous interviews with the managers and considering the documents regarding the supply chain processes and comparing the current situation of the supply chain with SCOR best practices, some improvement projects were proposed to improve the supply chain performance. The projects were prioritized using TOPSIS, a well-known multi attribute decision making technique

A new innovative model using RFID : a system design and its implementation

In this study an innovative RFID model is presented. This is a very innovative concept, pursuing a new way of looking at current systems as well as their potential. This model includes the necessary equipment, includes also the current systems and the different business areas in which the company operates. The aim of this study is to bring together the existing processes and technologies, providing a different solution, organizing a different way of operating and offering a more efficient approach. The aim is also, by offering certain products and services, to become part of a project embraced by a company, with an interest in developing it given that it has the capacity for its implementation. In this particular case an essay of the network model was presented to Brisa Inovação e Tecnologia, MARL - Mercado Abastecedor da Região de Lisboa and Frigoservice. This model can be applied to individuals or to the services they may need, such as the anticipation of compact traffic on a lane, thanks to the real-time information of passage speeds in certain frames. Is also shown in this study the equipment that permits the model that is presented to become possible (the OBUi equipment).peer-reviewe

Supply chain strategies as drivers of financial performance in liquefied natural gas networks

No embargo required