There is no consensus on the supply chain management definition of resilience. To aid in evaluating the dynamic behaviour of such systems we need to establish clearly elucidated performance criteria that encapsulate the attributes of resilience. A literature review establishes the latter as readiness, responsiveness and recovery. We also identify robustness as a necessary condition that would complement resilience. We find that the Integral of the Time Absolute Error (ITAE) is an appropriate control engineering measure of resilience when it is applied to inventory levels and shipment rates. We use the ITAE to evaluate an often used benchmark model of make-to-stock supply chains consisting of three decision parameters. We use both linear and non-linear forms of the model in our evaluation. Our findings suggest that optimum solutions for resilience do not yield a system that is robust to uncertainties in lead-time. Hence supply chains will experience drastic changes in their resilience performance when lead-time changes.
The paper explores the meaning of flexibility in the context of lean, agile and leagile supply networks and articulates a supply network flexibility framework. Two key 'sources' of flexibility are investigated: Vendor Flexibility and Sourcing Flexibility. The paper introduces an extension of the 'leagility' concept beyond the simple material flow decoupling point concept. Two new types of Leagility are put forward: (1) Leagile with Vendor Flexibility Systems, which combine the use of agile vendors with lean sourcing practices and (2) Leagile with Sourcing Flexibility Systems, which combine the use of lean vendors with agile sourcing practices. Case studies of two UK based specialist fashion retailers' supply networks are presented in order to gain insights into the sourcing strategies used and the sources of flexibility employed by retailers at supply network level. A new taxonomy that dynamically links Vendor and Sourcing Flexibility with lean, agile and leagile supply network strategies is proposed. We suggest that the proposed taxonomy can be used as a guideline for firms designing and managing parallel supply pipelines that match different operating environments. The findings add to the understanding of the ways in which the two sources of supply network flexibility (Vendor and Sourcing) interact in practice and provide evidence of the ways in which companies can strike balances between these sources, as well as the effects that can be achieved and some of the trade-offs involved.
Reviews the dynamic operation of supply chains and reaches some
simple conclusions for reducing demand amplification, which consequently
attenuates swings in both production rates and stock levels. The results
are based on one particular supply chain, for which the use of systems
simplification techniques has generated valuable insight into supply
chain design. Although different strategies are compared for reducing
demand amplification as witnessed by one particular supply chain model,
the conclusions are nevertheless thought to have wide application and,
indeed, implication. Comments in depth on the significance of the
simulation results for the demand chain as a whole, and for the role of
an individual business within the chain. In the first instance, supply
chain integration, and in particular free exchange of information, is a
prerequisite for progress. In the second case, shows that reduction in
lead times throughout the supply chain via JIT is similarly beneficial.
Clearly pinpoints the limitation to supply chain improvement which can
be obtained as a result of using JIT alone. This can be an expensive and
ongoing process of improvement with many spin‐off benefits.
Nevertheless, shows that the improvement possible by JIT operation of an
individual business can be negated by the failure to design and manage
the supply chain dynamics as a total system. The message for an
individual business is thus quite specific. Not only must lead times be
reduced via JIT, but also the business must seek to be part of the right
supply chain, if it is to remain competitive and stable.
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