Evaluation of Cooperative Planning in Supply Chains (eBook)

Dr. Luis Martín Díaz promovierte bei Prof. Dr. Peter Buxmann am Lehrstuhl für Wirtschaftsinformatik der Technischen Universität Darmstadt. Er ist als Projektleiter bei Prodyna GmbH in Frankfurt am Main tätig.

Foreword 8
Acknowledgements 10
Table of Contents 12
List of Figures 16
List of Tables 22
Abbreviations 28
1 Introduction 31
1.1 Motivation and Research Questions 34
1.2 Structure of the Dissertation 36
2 Inter-Organizational Cooperation and Supply Chain Management 39
2.1 Inter-Organizational Cooperation 40
2.1.1 Definition of Cooperation 41
2.1.2 Definition of Inter-Organizational Cooperation 44
2.1.3 Forms of Inter-Organizational Cooperation 46
2.2 Supply Chain Management 52
2.2.1 Supply Chain Management as a Field of Research and of Practical Endeavors 52
2.2.2 Defining Supply Chain Management 54
2.2.3 The Objectives of Supply Chain Management 58
2.2.4 Issues Related to Cooperation in the Context of Supply Chain Management 62
2.3 Logistics Planning as Object of Inter-Organizational Cooperation 69
2.3.1 Business Logistics – a Supply Chain Management Process 69
2.3.2 Logistics Planning as a Hierarchical Planning Problem 72
2.3.3 Inter-Organizational Logistics Planning in Supply Chains as a Hierarchical Planning Problem 76
2.3.4 Inter-Organizational Planning – The Approach of Wyner and Malone 77
3 Cooperation in Supply Chains and SCM Software Use in the European Automotive Industry 81
3.1 Cooperative Transportation in Supply Chains 81
3.1.1 An Exemplary Decision Category in Logistics: Transportation 81
3.1.2 Selected Cooperative Scenarios for Transportation 85
3.2 SCM Software as an Instrument for Cooperative Planning in Supply Chains – An Explorative Survey on the European Automotive Industry 101
3.2.1 Information Sharing as Premise for Cooperation in Supply Chains 101
3.2.2 Goals of the Survey 108
3.2.3 Research Design 109
3.2.4 Cooperation in the European Automotive Industry 110
3.2.5 Supply Chain Management Software in the European Automotive Industry 114
3.2.6 Summary of Results 124
4 The Supply Chain of the Audi A8 V8 4.0l Diesel Engine – A Case Study of Audi AG 127
4.1 Exposés of Companies in the Supply Chain of the V8 4.0l Diesel Engine 128
4.1.1 Audi AG 128
4.1.2 Audi Hungaria Motor Kft. 134
4.1.3 TCG Unitech Systemtechnik 135
4.1.4 Gustav Wahler GmbH u. Co. KG 135
4.2 Description and Analysis of the Supply Chain of the Audi A8 V8 4.0l Diesel Engine 135
4.2.1 Description of the Supply Chain of the Audi A8 V8 4.0l Diesel Engine 136
4.2.2 Analysis of Inventory Levels in the Supply Chain of the Audi A8 V8 4.0l Diesel Engine 144
4.2.3 Analysis of Orders Placed by the Companies in the Supply Chain of the Audi A8 V8 4.0l Diesel Engine 151
4.3 Evaluation of the Audi AG Supply Chain 159
4.3.1 The Bullwhip Effect in the Supply Chain of the Audi A8 V8 4.0l Diesel Engine 159
4.3.2 Evaluation of the Cooperation Scenarios for Transportation in the Supply Chain of the Audi A8 V8 4.0l Diesel Engine 165
4.3.3 Evaluation of the Implementation of Supply Chain Monitoring in the Audi AG Supply Chain: Real- time Exchange of Information on Capacity, Inventory, and Demand 173
4.4 Summary of Results 182
5 SCOptimizer – A Prototype for Quantifying Benefits of Cooperative Planning in Supply Chains 189
5.1 Prototypical Implementation 191
5.1.1 The SCOptimizer Architecture 191
5.1.2 Prototypical Implementation of the Evaluation of Cooperative Distribution Planning with the SCOptimizer 199
5.1.3 Prototypical Implementation of the Evaluation of the Bullwhip Effect 220
5.2 Computational Study on Cooperative Distribution – An Exemplary Evaluation of Cooperative Planning Using the SCOptimizer 252
5.2.1 Approach of the Computational Study 253
5.2.2 Selected Results of the Computational Study 258
5.2.3 Summary of Results 278
6 Summary and Conclusions 283
6.1 Summary of the Findings and Implications 284
6.2 Outlook and Further Research 287
References 291

4 The Supply Chain of the Audi A8 V8 4.0l Diesel Engine – A Case Study of Audi AG (p. 96-97)

This chapter presents an analysis of the supply chain of the Audi A8 V8 4.0l diesel engine with two main goals:

• First, gathering information to quantify the bullwhip effect contained in this simple supply chain and

• second, providing the basis for evaluation of the cooperation scenarios identified in Section
3.1.2 to determine if they could be implemented in this engine supply chain and what advantages could be gained.

For this purpose, this dissertation uses an empirical approach in form of a qualitative case study (Benbasat et al., 1987, Lee, 1989, Yin, 2002, Dubé &, Paré, 2003). The reasons for using a qualitative approach in this evaluation include the assumption that the relevant variables of the problems of cooperation are context driven and that the internal dynamics, implementation, and quality need to be understood as well (Creswell, 1994, Patton, 1987). Since this dissertation follows the interpretive approach rather than the positive approach, this case study is not intended to provide repeatability, but to gain a deeper understanding of the phenomenon cooperation in supply chains of the European automotive industry (Darke et al., 1998, p. 277). The author acknowledges the subjectivity of this process since this research attempts to "understand phenomena through accessing the meanings that participants assign to them" (Orlikowski &, Baroudi, 1991, p. 5). Nevertheless, some quantitative methods are also involved in this case study (see Sections 4.2.2, 4.2.3, and 4.3.1) and some positive analysis (Darke et al., 1998, p. 276) is realized by the examination of product orders, deliveries, and inventories throughout this supply chain.

This chapter first presents all involved companies briefly. The supply chain of the Audi A8 V8 4.0l diesel engine is described in detail in Section 4.2. Section 4.3 attempts to determine the bullwhip effect by considering the data gathered in the case study (Section 4.3.1). This section provides also an evaluation of the benefits involved with the implementation of cooperation scenarios that were identified in Chapter 3 in this particular supply chain (Section 4.3.2). Further, Section 4.3.3 discusses the potential benefits of the implementation of a monitoring system for this particular supply chain. The chapter ends with the summary of the findings of the case study (Section 4.4).

4.1 Exposés of Companies in the Supply Chain of the V8

4.0l Diesel Engine

In this section, some general information on Audi is presented, more specifically on the company’s history and its financial situation. Thereafter, a rough sketch of Audi’s up- and downstream supply chain will be provided. Exposés of the companies involved in the case study are also included.

4.1.1 Audi AG

4.1.1.1 General Overview of Audi AG
Audi is an internationally renowned manufacturer of high-quality cars and is incorporated in Germany. The company is the result of two mergers. The first merger occurred in 1932 when the four automobile manufacturers Audi, DKW, Horch, and Wanderer merged to form Auto Union AG. To symbolize this union, the company adopted a logo that is made up of four intertwined rings – this sign is still used today to represent Audi AG (Audi AG, n.d. a). In 1969, the second merger was completed, when Auto Union AG and NSU joint forces to form Audi NSU Auto Union AG which was renamed Audi AG in 1985 (Audi AG, n.d. b). Since 1964, the company is a fully owned subsidiary of Volkswagenwerk AG, today known as Volkswagen AG (Audi AG, n.d. b). About 99 percent of Audi’s share capital is held by Volkswagen AG (Audi AG, 2005).