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A Convolution Algorithm For Evaluating Supply Chai
A Convolution Algorithm For Evaluating Supply Chai
A Convolution Algorithm For Evaluating Supply Chai
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individual components of delivery lead time into are assumed to operate on a make-to-order basis.
the delivery performance measure. Clearly other supply chains configurations exist
In satisfying the first research objective, a (e.g., make-to-stock, combination make-to-stock
cost-based performance metric for evaluating and make-to-order) however at this stage of the
delivery performance will be developed. research we restrict our modeling to a make-to-
Delivery lead time is defined to be the elapsed stock orientation.
time from the receipt of an order at the first stage Let the activity duration of stage i, Wi , be
of a supply chain to the receipt of an order by the defined by a continuous probability density
final customer in the terminating stage of the function fW w; T with parameter set T .
supply chain. Delivery lead time is composed of
a series of internal manufacturing and processing Delivery time to the final customer is defined
n
lead times and external distribution and by X ¦ Wi . Under the assumption of
i 1
transportation lead times found at the various
stages of the supply chain. Delivery to the final impendence between stages, the form of the
customer is analyzed with regards to the probability density function f X x is defined by
customer’s specification of delivery timeliness as the following convolutions
defined by an on-time delivery window.
f
Untimely deliveries, e.g., early and late, are fW1W2 x ³ fW1 x w2 fW2 w2 dw2
subject to penalty costs. f
systems based modeling approach is used to f W1 W2 W3 x ³ fW1 W2 x w3 f W3 w3 dw3 (1)
f
quantify uncertainty found within the supply
chain. Under the assumption of independence
f
among stages in a supply chain, we model each fW1W2 Wn x ³ fW1W2 Wn1 x wn fWn wn dwn .
component of delivery lead time as a random f
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Proceedings of the 40th Hawaii International Conference on System Sciences - 2007
fX x
demonstrate the computation aspects of
evaluating f X x in the following subsections.
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Proceedings of the 40th Hawaii International Conference on System Sciences - 2007
where:
¯ Y QH ¦
i 1
xi c1 p X ( xi ) K ¦ c x
i 1
2 i p X xi (6)
2
k x2 x m ; g min p, m n ; h max p, m n . where: m1 the number of early deliveries
x c1 and m2 the number of late deliveries
x ! c 2 . Note that (6) is no longer dependant on
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Proceedings of the 40th Hawaii International Conference on System Sciences - 2007
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Proceedings of the 40th Hawaii International Conference on System Sciences - 2007
variance, while the triangular distribution absolute percentage error (APE) was evaluated
requires a minimum, modal and maximum value. using
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Proceedings of the 40th Hawaii International Conference on System Sciences - 2007
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Proceedings of the 40th Hawaii International Conference on System Sciences - 2007
or transaction processing type application. This [5] E. H. Sabri, and B. M. Beamon, “A Multi-
concept is not uncommon in many supply chain objective Approach to Simultaneous Strategic and
applications due to the magnitude and/or Operational Planning in Supply Chain Design”,
complexity of the required calculations. Omega, 28(5), 2000, 581-598.
Further research will focus on relaxing the [6] M. E. Johnson, and T. Davis, “Improving Supply
assumption of independence among the activities Chain Performance by Using Order Fulfillment
times comprising the various stages of the supply Metrics”, National Productivity Review, 17(3), 1998,
chain. A limited set of experiments were 3-16.
reported in this research. The scope of the
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would investigate the effect of symmetry and on Safety Stock”, Journal of Business Logistics, 20(1),
kurtosis aspects of the summand densities on the 1999, 141-163.
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the sum. A set of experiments could also be Distribution Policy in a Two-Stage Stochastic Push-
designed to investigate under what conditions Pull Supply Chain”, IIE Transactions, 37(7), 2005,
(e.g., number of stages, symmetry and kurtosis 609-621.
aspects of the summand densities) a normal
density would accurately represent the sum of a [9] A. C. Gunasekaran, C. Patel, and R. E.
set of densities that are not reproductive under McGaughey, “A framework for supply chain
addition. performance measurement”, International Journal of
Lastly, the modeling approach developed in Production Economics, 87(3), 2004, 333-347.
this paper can serve as a test bed for future [10] A. Lockamy III, and K. McCormack, “Linking
research on improving supply chain operations. SCOR planning practices to supply chain
For example, the model presented herein performance”, International Journal of Operations
captures variability at each stage of the supply and Production Management, 24(12), 2004, 1192-
chain and translates this variability into an 1218.
overall variability measure for delivery
timeliness. This structure can be used as a model [11] S. Vachon, and R. D. Klassen, “An Exploratory
to study the bullwhip effect as it relates to Investigation of the Effects of Supply Chain
delivery performance. An interesting extension Complexity on Delivery Performance”, IEEE
Transactions on Engineering Management, 49(3),
to the current model would be the incorporation 2002, 218-230.
of an optimization model for allocating resources
to reduce the magnitude and the translation of [12] R. Pibernik, and E. Sucky, “Centralised and
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Journal of Integrated Supply Management, 2(1/2),
6. References 2006, 6-27.
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Proceedings of the 40th Hawaii International Conference on System Sciences - 2007
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