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The authors recommend using a real options framework rather than a discounted cash flow model to assess and value supply chain processes. This enables companies to assess costs for a variety of situations, not just ideal or normal circumstances, which can make the difference between domestic and foreign manufacturing decisions.

When Am (Materiel Availability), which marks a significant departure from Ao (Operational Availability), was established as a fleet-level Key Performance Parameter (KPP) by Joint Requirements Oversight Council Memorandum 161-06, issued [...]

A good relationship particularly good communication between supplier and buyer is vital. Dual accountability through the use of scorecard and other tools to promote a healthy supply chains relationship is discussed.

The application of the queue theory for optimization of the Markov processes, to develop an integrated model for inventory management, is described. The applicability of this model for supply chain management in manufacturing industries is discussed.

The application of heuristics to derive genetic algorithms for scheduling of tasks in a manufacturing industry, as a part of supply chain management, is described.

The application of metaheuristic programming techniques, to perform multiobjective combinatorial optimization of the location routing problems faced by manufacturing firms in Andalusia, is described.

The application of the methods of enumeration and optimization for the performance of goal programming, to solve the vehicle routing problem during the management of logistics, is described.

Application of game theory for supply chain coordination and inventory control is described.

Application of game theory for capacity reservation and logistics management in contracting industry is described.

Application of control theory for mangement of business logistics as per echelon-stock policy is described.

In today's competitive environment, supply chain management is a major concern for a company. Two of the key issues in supply chain management are transportation and inventory management. To achieve [...]

In this paper we investigate the problem of locating a given number of facilities on a network. Demand generated at a node is distance dependent, i.e., it decreases with an increase in the distance. The facilities can serve no more than a given number of customers, thus they are capacitated and congested when they reach that limit. The objective function is to maximize the demand satisfied by the system given these constraints. An elegant solution is given for the location of one facility. The multiple facility problem is formulated and heuristic algorithms proposed for its solution. Computational experiments are reported., 1. Introduction The problem of locating service facilities taking into account demands that are distance dependent is not new. In spatial interaction models, originating with the work of Huff (1964), [...]

We consider a supply chain, which consists of several retailers and one supplier. The retailers, who possibly differ in their cost and demand parameters, may be coordinated through replenishment strategies and transshipments, that is, movement of a product among the locations at the same echelon level. We prove that in order to minimize the expected long-run average cost for this system, an optimal replenishment policy is for each retailer to follow an order-up-to S policy. Furthermore, we demonstrate how the values of the order-up-to quantities can be calculated using a sample-path-based optimization procedure. Given an order-up-to S policy, we show how to determine an optimal transshipment policy, using a linear programming/network flow framework. Such a combined numerical approach allows us to study complex and large systems., 1. Introduction Physical pooling of inventories (Eppen, 1979) has been widely used in practice to reduce costs and improve customer service. For example, Xerox has consolidated all of its country-based [...]

A linear-programming model for capacity constrained Supply Chain Operations Planning is developed using planned lead times.

The Department of Defense is implementing Performance-Based Logistics (PBL) in both new acquisition programs and legacy programs. Each of the Services is executing PBL policy at the system, subsystem, and [...]

Many organisations are evaluating their supply chains because they are perceived to be an area for both cost cutting and increasing competitiveness. The objective is apparently very simple; optimise the supply chain via effective and efficient operating practices. This paper will demonstrate via the statistical analysis of 32 industrial case studies that the route to this desired fully integrated, effective supply chain is long established. The solution has been renamed, repackaged and adapted many times over the years, but what remains constant are the underlying principles of simplified material flow. The output of this paper includes the vision, design principles, and rules for action needed to enable effective supply chain integration. Keywords: Material flow; Supply chain integration; Value stream statistical analysis; 12 simplicity rules, 1. Introduction In modern day marketplaces companies rarely compete on the sole basis of their own competencies. Rather, supply chains consisting of a number of organisations co-operate to compete in [...]

Numerous workers, equipment, material, temporary facilities, as well as permanent structures share the limited space during construction. Since space constraints may affect productivity and the critical path, it is essential to organize the available space efficiently and minimize space conflicts. This study considers space availability due to time and scheduling, productivity loss due to space constraints and path interference, as well as the possibility of alternative space to resolve these conflicts and optimize space usage. Herein, computer-aided design is integrated with scheduling software for the dynamic identification of space conflicts on the jobsite. Follow-up supplemental decision criteria are then provided for conflict analysis and resolution. A prototype decision support system that combines the criteria was developed to solve this significant and complex problem more efficiently and precisely. A case study demonstrates the use and development of this system, which is very helpful to engineers and project managers. CE Database keywords: Workspace; Construction management; Buildings.

The article examines the role of geographic, cultural, and network proximities in the Australian newsprint industry. It is posited that while geographic proximity is still an important factor in logistic decision making, network proximity, or the relational spaces that selectively link entities globally in a variety of ways, is equally important.

Consider a supply chain consisting of two independent agents, a supplier (e.g., a manufacturer) and its customer (e.g., a retailer), the latter in turn serving an uncertain market demand. To reconcile manufacturing/procurement time lags with a need for timely response to the market, such supply chains often must commit resources to production quantifies based on forecasted rather than realized demand. The customer typically provides a planning forecast of its intended purchase, which does not entail commitment. Benefiting from overproduction while not bearing the immediate costs, the customer has incentive to initially overforecast before eventually purchasing a lesser quantity. The supplier must in turn anticipate such behavior in its production quantity decision. This individually rational behavior results in an inefficient supply chain. This paper models the incentives of the two parties, identifying causes of inefficiency and suggesting remedies. Particular attention is given to the Quantity Flexibility (QF) contract, which couples the customer's commitment to purchase no less than a certain percentage below the forecast with the supplier's guarantee to deliver up to a certain percentage above. Under certain conditions, this method can allocate the costs of market demand uncertainty so as to lead the individually motivated supplier and customer to the systemwide optimal outcome. We characterize the implications of QF contracts for the behavior and performance of both parties, and the supply chain as a whole. Keywords: Supply Chain Management; Supply Contracts; Quantity Flexibility; Coordination; Forecasting; Forecast Revision; Materials Planning