Decentralized supply chains subject to information delays

Article Abstract:

Information, production and transportation leadtimes influence the determination of optimal replenishment strategies in a supply chain where the members are the divisions of a large firm. This is the case when division managers act as a team united by the common goal of achieving optimal efficiency of the supply chain. However, without this requirement, the solution is to manage the division as profit or cost centers wherein a measurement scheme for inducing the managers to perform as a team as an incentive is implemented. This technique, which is based on accounting inventory levels, can be implemented without sacrificing the efficiency of the entire system. Another way to boost the efficiency of the supply chain is by providing upstream members of the system with accurate customer demand information.

Inventory Control, Methods, Usage, Supply-side economics, Decentralization (Management), Profit centers

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Optimality of the symmetric workload allocation in a single-server flow line system

Article Abstract:

A proof of the symmetrical allocation property in a single-server manufacturing flow line system is given. The system was characterized by single-Erland servers connected in series. The servers supported a common interstation buffer capacity. The reciprocal of the throughput was shown to increase and jointly convexed in workloads. The line reversibility characteristic was then utilized to determine an alternative optimal allocation symmetric for any optimal workload that is asymmetric. In addition, a condition for the symmetrical allocation property to hold was given to relax the hypothesizing assumptions on the service-time distribution and interstation buffer capacities.

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