Global supply chain design: A literature review and critique

Abstract

Abstract:In this paper, we review decision support models for the design of global supply chains, and assess the fit between the research literature in this area and the practical issues of global supply chain design. The classification scheme for this review is based on ongoing and emerging issues in global supply chain management and includes review dimensions for (1) decisions addressed in the model, (2) performance metrics, (3) the degree to which the model supports integrated decision processes, and (4) globalization considerations. We conclude that although most models resolve a difficult feature associated with globalization, few models address the practical global supply chain design problem in its entirety. We close the paper with recommendations for future research in global supply chain modeling that is both forward-looking and practically oriented.

The impact of business analytics on supply chain performance

“…Executives must thoroughly analyze which key business processes to integrate and manage [45]; integrating business processes is namely a best practice in SCM and involves coordinating decisions across multiple facilities and tiers [57]. This is in line with information processing theory since business processes should be designed to minimize the computation, acquisition and communication costs [62], thus improving information processing capabilities.…”

Logistics and Transportation in Global Supply Chains: Review, Critique, and Prospects

“…Diversification of a supplier network can result in many advantages, such as competitive prices and higher quality, but a firm may incur increased costs when transporting goods from farther away when fluctuations in exchange rates affect purchase prices of goods, or when paying duties and tariffs on imported components. There are few papers that address the supplier selection problem in an international context, as seen in Table 4 and concurrent with the findings of Meixell and Gargeya [50] (2005).…”

“…Prasad et al [60] 2001 Detailed classification of research papers Meixell and Gargeya [50] 2005 Assesses how well research papers address global logistics decisions Some of their suggestions for future research include the consideration of more stochastic features such as customer service levels and lead times, improved modeling of BOM constraints, simulation of qualitative factors, and the inclusion of vendor and transportation channel reliability. Similarly, the review by Cohen and Mallik [18] (1997) proposes that additional focus should be placed on risk management, the benefits of economies of scale versus operational flexibility, managing the complexity arising from increased product variety, and the design of incentive systems to facilitate production switching.…”

“…Meixell and Gargeya [50] (2005) classify a collection of global supply chain design papers based on four dimensions: decision variables (e.g., for facility and/or supply selection), performance measurement (nature of the objective function and constraints), supply chain integration (e.g., number of supply chain tiers, type of coordination, and BOM specifications), and global considerations (such as exchange rates, tariffs, duties, trade barriers, etc.). From their research, the authors recommend that future global supply chain design models should include both the external and internal supplier locations, that more than one tier of the supply chain should be considered, a broadened definition of performance metrics should be applied, and that case studies should explore different industry settings rather than exhausting the automotive, textile, or electrical manufacturing industries.…”

“…The firm's goals need not be based solely on profit maximization or cost minimization, but rather, firms should consider other factors as Vidal and Goetschalckx [73] (1997) and Meixell and Gargeya [50] (2005) suggest. We will see in the following section how qualitative aspects are accounted for in some facility location models.…”