Search results

This paper describes a conceptual framework for developing new distribution structures. In real life decision‐making, optimal regions to locate a distribution center take into account both quantitative and qualitative factors. An adjusted kuehn‐Hamburger model is suggested to minimize transport and location costs and a Grid model is used as an alternative approach in case of missing data. The outcome is refined on quantitative and qualitative criteria by application of the Electre method. This framework is applied to a major telecom company's European distribution.

Two researchers suggest a new approach to the most fundamental warehousing operation of all.

The purpose of this paper is to develop new model formulation for reducing the workload in pre‐batching at a manufacturer of flavors and fragrances, by optimally assigning ingredients to different storage types, taking into account past usage of ingredients and several restrictions about volumes and number of storage units.

Two models were developed, using mathematical programming, accommodating either fixed or variable shelf settings in vertical carousel storage, along with other varying storage types. The models were validated, yielding a sizeable reduction in workload, and run under varying scenarios of storage additions to reduce workload even further.

For different storage addition scenarios, application of the new model formulation yielded a reduction of 22 percent in workload. In addition, aside from space savings, approximately 40 percent of refill order total waiting time was reduced due to improved allocation.

The authors' analysis was limited by considering direct cost savings only. Yet, reduced workloads in pre‐batching may also yield indirect cost savings, such as reduced quality costs, inventory costs, and investment savings by not having to extend the pre‐batching area. Such considerations may be addressed in future research, provided data on indirect savings are available.

While intuitive storage allocation overloads the pre‐batching department and increases space utilization, suggesting an incorrect perception that more personnel and space are needed, the proposed approach provides a better alternative through optimized allocations.

The present paper adds to the literature on carousel storage location by explicitly addressing the storage sizing issue, as well as workload balancing.

This paper aims to present a unified approach for effective capacity management, with the flexibility to position the organization across differing market‐orientations, anywhere from produce‐to‐stock to purchase‐and‐produce‐to‐order.

The unified planning system combines capacity management with the external market through the customer order decoupling point (CODP). The approach starts by determining the CODP, using commonality and effect‐cause‐effect analysis. The resulting CODP information is then used to determine the optimal master production schedule (medium‐term), as well as the detailed schedule (short‐term) at the bottleneck resource, using mathematical programming; to support decisions across different planning horizons in an integrated fashion.

This unified approach was applied to an electronics manufacturing company in the Netherlands. The unified capacity planning system not only reduces the number of capacity problems to be solved by production planners, but also more importantly enhances the organization's capabilities to respond faster and more focused to market changes.

Further studies may test the robustness of this planning approach with additional empirical evidence.

The structured unified approach provides a comprehensive solution to a complex capacity management problem, in competitive environments where organizations have to be able to respond to dynamically changing market conditions, given the process choices within which they are operating.

Provides a unified approach for effective capacity management.

The purpose of this paper is to empirically examine capability connectivity, relationship alignment and the ability to informally network in the supply chain as determinants for better utilizing capabilities amongst supply chain partners. In particular, the paper focuses on how the above described determinants may impact on operational performance in the supply chain when responding to short‐lived demand requirements or highly dynamic markets.

A mixed research methodology is used, including a qualitative exploratory phase to confirm the relevance of the research question to the practitioner, followed by quantitative structural equation modeling, based on a sample of 231 supply chain professionals.

In total, four determinants of informal networking were derived: capability connectivity, describing the ability of supply chain partners to rapidly and informally integrate capabilities, such as IT, to service an ad hoc market requirement; relationship alignment or the ability to informally integrate resources across supply chain partners in the context of highly dynamic market situations; the informally networked supply chain itself, measuring the ability of supply chain partners to respond to transient opportunities in the context of highly dynamic markets; and finally operational performance which measures the effect informal networking has on company performance. Results show that informal coordination of supply chain activities influences operational performance in different ways, and most significantly impacts positively on operational efficiency through supply‐oriented informal networking. The study identified that industry rules and regulations have a significant impact on the propensity of supply chain partners to collaborate informally. Finally, it is also shown that relationship alignment between companies is an important factor to achieve both market‐ and supply‐oriented informal networking capabilities.

The management of industry rules, regulation, connectivity, and relationship alignment are significant antecedents for informal coordination of supply chain capabilities in business networks. The study shows positive effects of informal networking in supply chains on operational efficiency, and suggests that companies should strive to enable greater flexibility to connect with their trading partners without an abundance of idiosyncrasies. Furthermore, relationship alignment, in combination with process and IT connectivity, is significant in creating the foundation for informal networking in supply chains, in particular for supply‐related activities.

The paper adds a new concept, the informally networked supply chain, and shows that capability connectivity and relationship alignment may enable new alternative ways of coordinating supply chain capabilities to meet a specific market requirement. As such, it offers a new perspective in relation to flexibility and agility in the supply chain.