Performance of supply chain collaboration – A simulation study

In the past few decades several supply chain management initiatives such as Vendor Managed Inventory, Continuous Replenishment and Collaborative Planning Forecasting and Replenishment (CPFR) have been proposed in literature to improve the performance of supply chains. But, identifying the benefits o...

Full description

Saved in:
Bibliographic Details
Published in:Expert systems with applications 2014-01, Vol.41 (1), p.210-220
Main Author: Ramanathan, Usha
Format: Article
Language:English
Subjects:
CPFR
Financing
Inventory management
Investment
Partnerships
Performance measurement
Replenishment
Simulation
Supply chain collaboration
Supply chains
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In the past few decades several supply chain management initiatives such as Vendor Managed Inventory, Continuous Replenishment and Collaborative Planning Forecasting and Replenishment (CPFR) have been proposed in literature to improve the performance of supply chains. But, identifying the benefits of collaboration is still a big challenge for many supply chains. Confusion around the optimum number of partners, investment in collaboration and duration of partnership are some of the barriers of healthy collaborative arrangements. To evolve competitive supply chain collaboration (SCC), all SC processes need to be assessed from time to time for evaluating the performance. In a growing field, performance measurement is highly indispensable in order to make continuous improvement; in a new field, it is equally important to check the performance to test conduciveness of SCC. In this research, collaborative performance measurement will act as a testing tool to identify conducive environment to collaborate, by the way of pinpointing areas requiring improvements before initializing collaboration. We use actual industrial data and simulation to help managerial decision-making on the number of collaborating partners, the level of investments and the involvement in supply chain processes. This approach will help the supply chains to obtain maximum benefit of collaborative relationships. The use of simulation for understanding the performance of SCC is relatively a new approach and this can be used by companies that are interested in collaboration without having to invest a huge sum of money in establishing the actual collaboration.
ISSN:0957-4174
1873-6793
DOI:10.1016/j.eswa.2013.07.022