Optimizing Supply Chain Performance: Information Sharing and Coordinated Management

228 Pages·2015·1.994 MB·English

by  Michael Roe, Wei Xu, Dongping Song (auth.)

Optimizing Supply Chain Performance
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Optimizing Supply Chain
Performance
Information Sharing and Coordinated
Management
Michael Roe
Plymouth University, United Kingdom
Wei Xu
Plymouth University, United Kingdom
Dongping Song
University of Liverpool, United Kingdom

Palgrave
macmillan
© Michael Roe, Wei Xu and Dongping Song 2015
Softcover reprint of the hardcover 1st edition 2015 978-1-137-50113-4
All rights reserved. No reproduction, copy or transmission of this
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No portion of this publication may be reproduced, copied or transmitted
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permitting limited copying issued by the Copyright Licensing Agency,
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Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this work
in accordance with the Copyright, Designs and Patents Act 1988.
First published 2015 by
PALGRAVE MACMILLAN
Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills, Basingstoke,
Hampshire RG21 6XS.
Palgrave Macmillan in the US is a division of St Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-349-56817-8 ISBN 978-1-137-50115-8 (eBook)
DOI 10.1057/9781137501158
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging, pulping and manufacturing
processes are expected to conform to the environmental regulations of the
country of origin.
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Roe, Michael, 1954–
Optimizing supply chain performance : information sharing and coordinated
management / Michael Roe, Wei Xu and Dongping Song.
pages cm
Includes bibliographical references.
1. Business logistics – Mathematical models. 2. Production control. I. Title.
HD38.5.R635 2015
658.7—dc23 2015013094
Contents
List of Figures v i
List of Tables v iii
Preface x i
List of Abbreviations x iii
1 Introduction 1
2 Literature Review 8
3 A Methodology for the Exploration of Supply Chain
Management 5 5
4 The Case Company Supply Chains 7 4
5 A Generalised Domestic and International Supply
Chain Model 8 6
6 Mathematical Modelling for the Supply Chain System 1 05
7 Single Objective and Multiple Objective Genetic
Algorithms 1 32
8 The Impact of Information Sharing 1 47
9 Evaluating the Single Objective Genetic Algorithm 1 64
10 Evaluating the Multiple Objective Genetic Algorithm 1 77
11 Conclusions 1 85
References 1 90
Index 2 13
v
List of Figures

2.1 The integrated SC 20
2.2 Development of SCM initiative from the technique
perspective 21
2.3 The overall flowchart of the Kingdee K/3 ERP system 32
4.1 Supply chain map in case company A SC 79
4.2 Domestic supply chain map in case company B SCs 80
4.3 International supply chain map in case company B 82
5.1 A generalised domestic and international supply chain
model with information, material and financial flows 88
5.2 The relationship among lead time, quantity and delay
uncertainties 99
7.1 The relationship of SC simulation program and global
optimisation program 133
7.2 The flowchart of SC system simulation 134
7.3 A flowchart of the working principle of SOGA 135
7.4 The first pair in the paired solution set 138
7.5 The randomly selected crossover position in the
first pair 139
7.6 The selected crossover points in the first pair 1 39
7.7 The mutation operation on the new gene 140
7.8 A flowchart of the working principle of MOGA 143
9.1 SOGA results under the PS-JIT strategy at high
uncertainty level with 50% international sales level 166
9.2 SOGA results under the PS-JIT strategy at high
uncertainty level with 30% international sales level 167
9.3 SOGA results under the PS-JIT strategy at low
uncertainty level with 50% international sales level 169
9.4 SOGA results under the PS-JIT strategy at low
uncertainty level with 30% international sales level 169
9.5 SOGA results under the PS-VMI strategy at high
uncertainty level with 50% international sales level 171
9.6 SOGA results under the PS-VMI strategy at high
uncertainty level with 30% international sales level 171
vi
List of Figures vii
9.7 SOGA results under the PS-VMI strategy at low
uncertainty level with 50% international sales level 173
9.8 SOGA results under the PS-VMI strategy at low
uncertainty level with 30% international sales level 173
10.1 The last generation of MOGA under PM-JIT at high
and low uncertainty levels with high international
sales plan (at 50%) 1 79
10.2 The last generation of MOGA under PM-VMI at high
and low uncertainty levels with high international
sales strategy (at 50%) 1 80
10.3 Comparison of the last generation of MOGA under
PM-JIT and PM-VMI at high and low uncertainty
levels with high international sales plan (at 50%) 180
10.4 The last generation of MOGA under PM-JIT at high
and low uncertainty levels with low international
sales plan (at 30%) 1 81
10.5 The last generation of MOGA under PM-VMI at high
and low uncertainty levels with low international sale
strategy (at 30%) 1 82
10.6 Comparison of the last generation of MOGA under
PM-JIT and PM-VMI at high and low uncertain levels
with low international sales plan (at 30%) 182
List of Tables
2.1 Main SCP metrics 13
2.2 The complexity class 45
2.3 The status of China’s SCM 5 0
2.4 Research methods and subjects 5 2
4.1 Cost information 77
5.1 Classification of uncertainties in four sub-models 9 3
5.2 Classification of constraints in the model 1 00
5.3 Classification of cost elements in the model 1 03
8.1 The simulation result of the company’s strategy and
the JIT strategy under four uncertain scenarios 1 49
8.2 Performance difference between the JIT and the
company’s strategies 151
8.3 The performance difference in percentage between
four scenarios under the JIT and the company’s
strategies 150
8.4 The simulation result of the company’s strategy and
JIT + safety stock at 20% strategy under four uncertain
scenarios 152
8.5 The simulation result of the company’s strategy and
JIT + safety stock at 30% strategy under four uncertain
scenarios 153
8.6 The performance difference in percentage between
JIT + safety stock strategies and the company’s
strategy 153
8.7 The performance difference in percentage between
four scenarios under the company’s strategy and
the JIT + safety stock strategies 1 53
8.8 The simulation result of the company’s and the
Kanban strategies under four uncertain scenarios 1 54
8.9 The performance difference in percentage between
the Kanban and the company’s strategies 1 55
8.10 T he performance difference in percentage between
four scenarios under the company’s and the Kanban
strategies 155
viii
List of Tables ix
8.11 The simulation result of the company’s strategy and
Kanban + safety stock at 20% strategy under four
uncertain scenarios 156
8.12 T he simulation result of the company’s strategy and
Kanban + safety stock at 30% strategy under four
uncertain scenarios 157
8.13 T he performance difference between Kanban + safety
stock strategies and the company’s strategy (%) 157
8.14 T he performance difference in percentage between
four scenarios under the company’s strategy and the
Kanban + safety stock strategies 158
8.15 T he simulation result of the company’s and the VMI
strategies under four scenarios 159
8.16 T he performance difference between VMI and
company’s strategy 159
8.17 T he performance difference in percentage of the
company’s and the VMI strategies in scenarios 159
8.18 T he simulation results of the company’s strategy and
VMI + safety stock at 20% strategy in four uncertain
scenarios 160
8.19 T he simulation results of the company’s strategy and
VMI + safety stock at 30% strategy in four uncertain
scenarios 161
8.20 T he performance difference between the VMI + safety
stock strategies and company’s strategy 161
8.21 T he performance difference in percentage between
four scenarios under the company’s strategy and
VMI + safety stock strategies 162
8.22 T he performance difference between the VMI + safety
stock strategies and JIT + safety stock strategies 162
9.1 The best solution of PS-JIT at high uncertainty level
and 50% international sales level 167
9.2 The best solution of PS–JIT at high uncertain level
and 30% international sales level 167
9.3 The best solution of PS-JIT at low uncertainty level
and 50% international sales level 169
9.4 The best solution of PS-JIT at low uncertainty level
and 30% international sales level 170