Dynamic Modelling for Supply Chain Management (eBook)

Dr Adolfo Crespo Márquez is an Associate Professor in the Department of Industrial Management at the University of Seville. He holds a Ph.D. in Industrial Engineering from the same University. Within the area of maintenance, he has extensively participated in many engineering and consulting projects for different companies and for the Spanish Ministry of Science and Education.

Foreword 6
Preface 8
Acknowledgements 10
Contents 12
Part I An Introduction to Dynamic Modelling for Supply Chains 18
1 On the Definition of Dynamic Simulation 19
1.1 An Introduction to Dynamic Simulation 19
1.2 Time Handling in Dynamic Simulation Models 21
1.3 Deterministic and Stochastic Simulation 23
1.4 Dynamic Modelling Methodology and Tools 23
1.5 Model Validation vs Usefulness 28
1.6 Dynamic Modelling Approach Followed in this Book 29
1.7 References 31
2 Current Supply Chains Management Issues 32
2.1 Current Issues in SCM 32
2.2 SCM Issues and Related Problems 32
2.3 Network Configuration and Competition 33
2.4 Sharing Information Through ICTs 36
2.5 Developing Collaborative Planning Activities 39
2.6 Suppliers Management. Expanding the Purchasing Role 43
2.7 Approaching Markets Differently 44
2.8 References 44
3 Models for SCM Simulation and Analysis 47
3.1 SCM and Dynamic Simulation 47
3.2 Continuous Time Simulation Models for SCM 49
3.3 Classifying Hi-tech SC Dynamic Models in this Book 50
3.4 References 54
Part II Modelling Front-end Issues in SCM 56
4 Understanding a Customer’s Decision to Buy 57
4.1 Selecting Potential Markets 57
4.2 A Case Study for Market Segmentation 58
4.3 The Monitor Purchase Process. A Case Study 63
4.4 Concluding Remarks 67
4.5 References 67
5 Understanding Financial Implications of Strategy 69
5.1 Overview 69
5.2 The Price as Source of Revenue Stream 69
5.3 The Cost Structure and the Value Chain 74
5.4 The Value-driven Planning Process. A Case Study 78
5.5 References 85
6 Understanding Hi-tech Business Growth 86
6.1 Characterising Hi-tech Business Planning Process 86
6.2 Hi-tech Business Growth. A Case Study 88
6.3 References 95
7 Modelling a Hi-tech Business Growth 96
7.1 Model Overview 96
7.2 Modelling Customer’s Decision To Buy 97
7.3 Modelling a Customer Perception of a Product 99
7.4 Modelling Competition. Value Provided and Perceived 100
7.5 Modelling Marketshare, Revenue, Gross and Net Operating Profit 101
7.6 Modelling Profit Contribution Growth 104
7.7 Transforming a Dynamic Simulation Model into a DSS 108
7.8 Sample DSS and Case Study 109
7.9 Managerial implications 113
7.10 Conclusions and Further Research 115
7.11 References 115
Part III Modelling Back-end Issues In SCM 117
8 Back-end Issues Related to Supplier Management 118
8.1 Contract Structures for Supplier Management 118
8.2 Competitive Prourement Strategies: Global and Multiple Sourcing 118
8.3 Types of Contractual Relationships with Suppliers 119
8.4 Procurement Risk Management at HP. A Case Study 121
8.5 References 128
9 Modelling a Portfolio of Contracts with Suppliers 129
9.1 Overview 129
9.2 Formal Characterisation of the Contracts with Suppliers in a Dynamic Volatile Business Environment 130
9.3 Modelling Accountability of the Procurement System 138
9.4 Modelling Forward Contract with Suppliers 141
9.5 Modelling Commodity Options Contracts with Suppliers 143
9.6 Selecting a Suitable Contract Portfolio with Suppliers 144
9.7 Managerial Implications of the Work 149
9.8 Concluding Remarks of the Chapter 151
9.9 References 151
10 Modelling Back-end Issues in Manufacturing 152
10.1 Introduction to the Modelling of Manufacturing Issues 152
10.2 Case Study in Semiconductor Fabs 153
10.3 Introduction to the Case Study 153
10.4 Pros and Cons of LP Models to Deal with PM Scheduling 155
10.5 Dynamic Simulation to Deal with PM Scheduling in Fabs 158
10.6 Modelling Preventive Maintenance Policies 161
10.7 Specific Wafer Production Flow Scenarios 165
10.8 Simulation Results 168
10.9 Concluding Remarks of the Case Study 173
10.10 References 173
Part IV Modelling Integration Issues in SCM 175
11 Different Supply Chain Integration Models 176
11.1 SC Integration Opportunities 176
11.2 Characterisation of SC Materials and Information Flows 184
11.3 Modelling a Non-integrated Supply Chain 187
11.4 Modelling PI SC with Sharing Sell-through 188
11.5 Modelling PI SC with Shared Inventory Information 188
11.6 Modelling Integrated (Sales and Inventory) Supply Chains 189
11.7 Results About Integration Sequence Implications 189
11.8 Concluding Remarks 191
11.9 References 192
12 Modelling Financial Implications of Integration Strategies 194
12.1 An Introductory Case Study 194
12.2 Modelling Materials, Information and Financial Flows 199
12.3 Integration with Financial Limitations 202
12.4 Results with No Financial Limitations 205
12.5 Integration with Financial Limitations for All Nodes 205
12.6 Financial Limitations at a Single Node 210
12.7 Concluding Remarks 210
12.8 References 211
13 Exploring the Use of Manufacturing Control Techniques in Virtual SC 212
13.1 Virtual Manufacturing in Modern Supply Chains. Comparing SC Integration Levels to Push- Pull Manufacturing Schemes 212
13.2 Hybrid Push-pull Manufacturing Schemes Used for SCM 213
13.3 Sample CONWIP Driven Virtual Supply Chain 213
13.4 References 238
Part V Dynamic Modelling Projects 274
16 Presenting SCM Dynamic Simulation Projects 275
16.1 The Project Alternatives 275
16.2 One Point Solution 276
16.3 Decision Improvement Process 276
16.4 Infrastructure Solution 277
16.5 Organisational Independence 277
16.6 Combination of Alternatives 277
16.7 A Modelling Value Proposition. A Case Study 280
17 Capturing the Learning of a Modelling Project 284
17.1 The Project Technical Closure 284
17.2 The Project Technical Closure Case Study 286
17.3 Reference 290
Index 291