what is supply chain and can we design and analysis it? a brief explanation

1. Supply Chain Design and
Analysis: Models and Methods
Dec-2019
Mohammad hossein sharifi

2. • Recently, however, there has been increasing attention placed on the
performance, design, and analysis of the supply chain as a whole.
• This attention is largely a result of the rising costs of manufacturing,
the shrinking resources of manufacturing bases, shortened product
life cycles, the leveling of the playing field within manufacturing, and
the globalization of market economies. The objectives of this paper
are to:
• (1) provide a focused review of literature in multi-stage supply chain
modeling and
• (2) define a research agenda for future research in this area

3. The Supply Chain Defined
• A supply chain may be defined as an integrated process wherein a
number of various business entities (i.e., suppliers, manufacturers,
distributors, and retailers) work together in an effort to:
• (1) acquire raw materials,
• (2) convert these raw materials into specified final products
• (3) deliver these final products to retailers

4. highest level supply chain
• In highest level ,a supply chain is comprised of two basic, integrated
processes:
• the Production Planning and Inventory Control Process
• the Distribution and Logistics Process

5. The Supply Chain Process

6. The Production Planning and Inventory
Control
• The Production Planning and Inventory Control Process encompasses
the manufacturing and storage sub-processes, and their interface(s)

7. production planning
• production planning describes the design and management of the
entire manufacturing process (including raw material scheduling and
acquisition, manufacturing process design and scheduling, and
material handling design and control)

8. Inventory control
• Inventory control describes the design and management of the
storage policies and procedures for raw materials, work-in-process
inventories, and usually, final products

9. Distribution and Logistics Process
• The Distribution and Logistics Process determines how products are
retrieved and transported from the warehouse to retailers.
• These products may be transported to retailers directly, or may first
be moved to distribution facilities, which, in turn, transport products
to retailers. This process includes the management of inventory
retrieval, transportation, and final product delivery

10. multi-stage models
• deterministic analytical models, in which the variables are known and
specified
• stochastic analytical models, where at least one of the variables is
unknown, and is assumed to follow a particular probability
distribution
• economic models
• simulation models.

11. Deterministic Analytical Models
• Williams (1981) presents seven heuristic algorithms for scheduling
production and distribution operations in an assembly supply chain
network (i.e., each station has at most one immediate successor, but
any number of immediate predecessors). The objective of each
heuristic is to determine a minimum-cost production and/or product
distribution schedule that satisfies final product demand. The total
cost is a sum of average inventory holding and fixed (ordering,
delivery, or set-up) costs. Finally, the performance of each heuristic is
compared using a wide range of empirical experiments, and
recommendations are made on the bases of solution quality and
network structure.

12. Stochastic Analytical Models
• Cohen and Lee (1988) develop a model for establishing a material
requirements policy for all materials for every stage in the supply
chain production system. In this work, the authors use four different
cost-based sub-models (there is one stochastic sub-model for each
production stage considered)

13. (1) Material Control
• Establishes material ordering quantities, reorder intervals, and
estimated response times for all supply chain facilities, given lead
times, fill rates, bills of material, cost data, and production
requirements.

14. (2) Production Control
• Determines production lot sizes and lead times for each product,
given material response times.

15. (3) Finished Goods Stockpile (Warehouse)
• Determines the economic order size and quantity for each product,
using cost data, fill rate objectives, production lead times, and
demand data.

16. (4) Distribution
• Establishes inventory ordering policies for each distribution facility,
based on transportation time requirements, demand data, cost data,
network data, and fill rate objectives.

17. Simulation Models
• Towill (1991) and Towill, et. al. (1992) use simulation techniques to
evaluate the effects of various supply chain strategies on demand
amplification. The strategies are as follows :
• (1) Eliminating the distribution echelon of the supply chain, by including the
distribution function in the manufacturing echelon.
• (2) Integrating the flow of information throughout the chain.
• (3) Implementing a Just-In-Time (JIT) inventory policy to reduce time delays.
(4) Improving the movement of intermediate products and materials by
modifying the order quantity procedures.
• (5) Modifying the parameters of the existing order quantity procedures.

18. Supply Chain Performance Measures
1. Qualitative Performance Measures
2. Quantitative Performance Measures

19. Qualitative Performance Measures
• Customer Satisfaction
• Pre-Transaction Satisfaction
• Transaction Satisfaction
• Post-Transaction Satisfaction
• Flexibility
• Information and Material Flow Integration
• Effective Risk Management
• Supplier Performance

20. Quantitative Performance Measures
• Measures Based on Cost:
• Sales Maximization
• Profit Maximization
• Inventory Investment Minimization
• Return on Investment Maximization
• Measures Based on Customer Responsiveness:
• Fill Rate Maximization
• Product Lateness Minimization
• Customer Response Time Minimization
• Lead Time Minimization
• Function Duplication Minimization

21. Quantitative Performance Measures(cont)
• Performance Measures Used in Supply Chain Modeling:

22. Decision Variables in Supply Chain Modeling
• Production/Distribution Scheduling
• Inventory Levels
• Number of Stages (Echelons)
• Distribution Center (DC)
• Plant - Product Assignment
• Buyer - Supplier Relationships
• Product Differentiation Step Specification
• Number of Product Types Held in Inventory

23. reference
• Supply Chain Design and Analysis: Models and Methods(Benita M.
Beamon )