Please note: Changes made as a result of publishing processes such as copy-editing, formatting and page numbers may not be reflected in this version. For the definitive version of this publication, please refer to the published source. You are advised to consult the publisher's version if you wish to cite this paper.This version is being made available in accordance with publisher policies. See http://orca.cf.ac.uk/policies.html for usage policies. Copyright and moral rights for publications made available in ORCA are retained by the copyright holders. Systemic Approach to Supply Chain Management through the Viable System Model and the Theory of Constraints Systemic Approach to Supply Chain Management through the Viable System Model and the Theory of ConstraintsIn today's environment, Supply Chain Management (SCM) takes a key role in business strategy. A major challenge is achieving high customer service level under a reasonable operating expense and investment. The traditional approach to SCM, based on local optimization, is a proven cause of meaningful inefficiencies -e.g. the Bullwhip Effect-that obstruct the throughput. The systemic (holistic) approach, based on global optimization, has been shown to perform significantly better. Nevertheless, it is not widely expanded, since the implementation of an efficient solution requires a suitable scheme. Under these circumstances, this paper proposes an integrative framework for supply chain collaboration aimed at increasing its efficiency. This is based on the combined application of the Beer's Viable System Model (VSM) and the Goldratt's Theory of Constraints (TOC).VSM defines the systemic structure of the supply chain and orchestrates the collaboration, while TOC implements the systemic behaviour -i.e. integrate processes-and define performance measures. To support this proposal, we detail its application to the widely used Beer Game scenario. In addition, we discuss its implementation in real supply chains, highlighting the key points that must be considered.

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