Journal Name:
- Journal of Industrial Engineering and Management
| Author Name | University of Author |
|---|---|
Abstract (2. Language):
Abstract: The coordination efficiency of Supply Chain Management is determined by two
opposite poles: benefit from improved planning results and associated coordination cost.
The centralization grade, applied coordination mechanisms and IT support have influence
on both categories. Therefore three reference types are developed and subsequently
detailed in business process models for different network structures. In a simulation study
the performance of these organization forms are compared in a process plant network.
Coordination benefit is observed if the planning mode is altered by means of a demand
planning IT tool. Coordination cost is divided into structural and activity-dependent cost.
The activity level rises when reactive planning iterations become necessary as a
consequence of inconsistencies among planning levels. Some characteristic influence
factors are considered to be a reason for uninfeasible planning. In this study the effect of
capacity availability and stochastic machine downtimes is investigated in an uncertain
demand situation. Results that if the network runs with high overcapacity, central planning
is less likely to increase benefit enough to outweigh associated cost. Otherwise, if capacity
constraints are crucial, a central planning mode is recommendable. When also unforeseen
machine downtimes are low, the use of sophisticated IT tools is most profitable.
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FULL TEXT (PDF):
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169-185