The value of production schedule integration in supply chains

The value of production schedule integration in supply chains

0.00 Avg rating0 Votes
Article ID: iaor20032314
Country: United States
Volume: 32
Issue: 4
Start Page Number: 601
End Page Number: 634
Publication Date: Oct 2001
Journal: Decision Sciences
Authors: ,
Keywords: production, inventory
Abstract:

This study explores the value of integrated production schedules for reducing the negative effects of schedule revisions in supply chains involving buyer and supplier firms. A stochastic cost model is developed to evaluate the total supply chain cost with integrated purchasing and scheduling policies. The model minimizes the costs associated with assembly rate adjustment, safety stock, and schedule changes for all supply chain members. Through experimentation, the paper examines the impact of several environmental factors on the value of schedule integration. This study finds that schedule integration can lead to overall cost savings in a supply chain, but some firms may have to absorb costs in excess of those they would incur with independent scheduling. Environments with high inventory holding costs and long supplier lead times may not find it beneficial to adopt an integrated schedule. Forecast effectiveness plays a critical role in realizing the benefits of schedule integration. The paper concludes with suggestions for future research.

Reviews

Required fields are marked *. Your email address will not be published.