TY - JOUR
T1 - Performance Metric Optimization Advocates CPFR in Supply Chains: A System Dynamics Model Based Study
AU - Janamanchi, Balaji
AU - Burns, James
PY - 2016/2/2
Y1 - 2016/2/2
N2 - Abstract
Background: Supply Chain partners often find themselves in rather helpless positions, unable to improve their firm’s performance and profitability because their partners although willing to share production information do not fully collaborate in tackling customer order variations as they don’t seem to appreciate the benefits of such collaboration. Methods: We use a two-player (supplier-manufacturer) System Dynamics model to study the dynamics to assess the impact and usefulness of supply chain partner collaboration on the supply chain performance measures. Results: Simulation results of supply chain metrics under varied customer order patterns viz., basecase, random normal, random uniform, random upwardtrend, and random downwardtrend under (a) basecase, (b) independent optimization by manufacturer, and (c) collaborative optimization by manufacturer and supplier, are obtained to contrast them to develop useful insights. Conclusions: Focus on obtaining improved inventory turns
AB - Abstract
Background: Supply Chain partners often find themselves in rather helpless positions, unable to improve their firm’s performance and profitability because their partners although willing to share production information do not fully collaborate in tackling customer order variations as they don’t seem to appreciate the benefits of such collaboration. Methods: We use a two-player (supplier-manufacturer) System Dynamics model to study the dynamics to assess the impact and usefulness of supply chain partner collaboration on the supply chain performance measures. Results: Simulation results of supply chain metrics under varied customer order patterns viz., basecase, random normal, random uniform, random upwardtrend, and random downwardtrend under (a) basecase, (b) independent optimization by manufacturer, and (c) collaborative optimization by manufacturer and supplier, are obtained to contrast them to develop useful insights. Conclusions: Focus on obtaining improved inventory turns
U2 - 10.1080/23311975.2016.1139440
DO - 10.1080/23311975.2016.1139440
M3 - Article
SP - 20
JO - Cogent Business and Management
JF - Cogent Business and Management
ER -