An Investigation on Centralized and Decentralized Supply Chain Scenarios at the Product Design Stage to Increase Performance

Chiu, Ming‐Chuan; Okudan, Gu ̈l E.

doi:10.1115/detc2011-47241

Cited by 7 publications

(7 citation statements)

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“…Multiple studies suggest that ESI can improve new product development in critical areas such as reduced cycle times, enhanced quality, reduced internal complexity and reduced manufacturing costs (McIvor et al, 2006;Tam et al, 2003;Brown and Eisenhardt, 1995;Bensaou, 1992;Ragatz et al, 2002). Although these ESI benefits have been documented across key industries such as automotive, electronics, and semiconductors, the adoption of ESI remains inconsistent across many other industry sectors (Chiu and Kremer, 2014;Zirpoli and Caputo, 2002;McIvor and Humphreys, 2004;Jiao et al, 2008). The defense industry is one of these instances.…”

Section: Us Defense Industrymentioning

confidence: 99%

Early supplier integration in the US defense industry

Cohee

Barrows

Handfield

2019

JDAL

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Purpose Each year, the US defense industry outsources nearly $400 bn of domestic goods and services through competitive bids. These procurement activities are quite often complex and specialized in nature because of a highly regulated federal acquisition contracting environment. Ongoing calls to improve supplier management and drive innovation in the defense industry offers an opportunity to adopt Early Supplier Integration (ESI) initiatives that have proven successful in the private sector. This paper identifies critical ESI activities and acquisition practices that the defense industry should adopt to ensure enhanced effectiveness in new product development. Design/methodology/approach Leveraging a conceptual ESI model derived from the research, an in-depth case study of 12 product development projects from a major defense contractor was performed. In the context of project performance, critical ESI activities and moderating effects were assessed. Findings Three key ESI activities have the greatest impact on aggregate project performance: system design involvement, design adjustment opportunities and design for manufacturability/assembly/testability involvement. Use of formal supplier agreements also significantly impacts project performance during the development phase. In addition, project complexity and product team maturity were identified as environment moderators; higher complexity projects tended to negatively moderate the impact of ESI upon performance, and higher team maturity levels tended to positively moderate the impact of ESI upon performance. Originality/value The results provide a sound framework for empirical validation through future quantitative studies and defense industry analyses. In addition, insights and recommendations for interpretation and adaptation of federal acquisition regulations to allow increased utilization of ESI within the defense industry are substantiated.

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Section: Us Defense Industrymentioning

confidence: 99%

Early supplier integration in the US defense industry

Cohee

Barrows

Handfield

2019

JDAL

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“…Wang et al (2004) proposed a multicriteria decision methodology integrating an analytic hierarchy process and pre-emptive goal pre-programming to derive suitable supply chain strategies and optimal order quantities that are matched with product characteristics in both qualitative and quantitative factors. Chiu and Okudan Kremer (2014) proposed a bi-level programming model that defines suppliers in different tiers as leaders and followers to model different supply chain scenarios (i.e., centralized and decentralized) at an early product design stage. Baud-Lavigne et al (2016) proposed a robust product design methodology based on a scenariobased solution method considering different levels of logistics cost, labour cost, and demand.…”

Section: Integration Of Product and Supply Chain Designmentioning

confidence: 99%

Integration of product architecture and supply chain under currency exchange rate fluctuation

2021

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Various studies have discussed the coordination of product and supply chain design decisions for global supply chain management. However, the impact of currency exchange rate uncertainty on the selection of product architectures and their suppliers has not been sufficiently addressed. As a response, this study proposes a two-stage stochastic optimization model in which the first stage determines the product architecture, and the second stage identifies suppliers for the modules and components in an optimal fashion based on the product architecture and uncertain currency exchange rates. The overall objective of twostage stochastic programming is to determine the optimal product architecture that minimizes the expected total supply chain cost over uncertain currency exchange rate scenarios. The proposed model is applied to a bicycle supply chain case study for three global marketplaces associated with multiple currency exchange rates. The results demonstrate that optimal product architecture and its suppliers should be varied based on currency exchange rates and their uncertain fluctuation levels. Also, a product architecture for the supply chain of each marketplace maintains its optimality in the total supply chain cost, up to a specific exchange rate. The findings show the importance of joint integration between product and supply chain design when considering currency exchange rates. Additionally, the benefit of stochastic modelling is demonstrated by comparing the solution quality of the model with its deterministic counterpart.

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“…However, this is rarely the case since each player tries to maximize own profits (Chopra et al, 2016). Lack of coordination in the supply chain leads to the bullwhip effect, increased inefficiencies and higher supply chain costs (Chiu & Kremer, 2013; Hassanzadeh et al, 2014; Lee et al, 1997).…”

Section: Blending Problem In a Decentralized Supply Chainmentioning

confidence: 99%

A stochastic biomass blending problem in decentralized supply chains

Ekşioğlu

Gulcan

Roni

et al. 2021

Naval Research Logistics

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Blending biomass materials of different physical or chemical properties provides an opportunity to adjust the quality of the feedstock to meet the specifications of the conversion platform. We propose a model which identifies the right mix of biomass to optimize the performance of the thermochemical conversion process at the minimum cost. This is a chance-constraint programming (CCP) model which takes into account the stochastic nature of biomass quality. The proposed CCP model ensures that process requirements, which are impacted by physical and chemical properties of biomass, are met most of the time. We consider two problem settings, a centralized and a decentralized supply chain. We propose a mixed-integer linear program to model the blending problem in the centralized setting and a bilevel program to model the blending problem in the decentralized setting. We use the sample average approximation method to approximate the chance constraints, and propose solution algorithms to solve this approximation. We develop a case study for South Carolina using data provided by the Billion Ton Study. Based on our results, the blends identified consist mainly of pine and softwood residues. The blends identified and the suppliers selected by both models are different. The cost of the centralized supply chain is 2%-6% lower. The implications of these results are twofold. First, these results could lead to improved collaborations in the supply chain. Second, these results provide an estimate of the approximation error from assuming centralized decision making in the supply chain.

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An Investigation on Centralized and Decentralized Supply Chain Scenarios at the Product Design Stage to Increase Performance

Cited by 7 publications

References 0 publications

Early supplier integration in the US defense industry

Early supplier integration in the US defense industry

Integration of product architecture and supply chain under currency exchange rate fluctuation

A stochastic biomass blending problem in decentralized supply chains

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