Information sharing practices such as vendor-managed inventory (VMI) give manufacturers access to more accurate demand information, e.g. customer sales data, than before. The value of this type of information sharing has been established in many studies. However, most of the research has focused on the ideal situation of the manufacturer having access to information from all downstream parties. In practice, this is rarely the case. In this paper, discrete-event simulation is used to examine how a manufacturer can combine traditional order data available from non-VMI customers with sales data available from VMI customers in its production and inventory control and what impact this has on the manufacturer's operational ef®ciency. The simulation model is based on a real-life VMI implementation and uses actual demand and product data. The key ®nding is that even for products with stable demand a partial improvement of demand visibility can improve production and inventory control ef®ciency, but that the value of visibility greatly depends on the target products' replenishment frequencies and the production planning cycle employed by the manufacturer.

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractThis paper presents a framework for supply chain decisionmaking. The framework is used to gain insights into applications of modelling. Current modelling practice is reviewed through a literature survey. The principal finding is a lack of published research in the area of modelling supply chain effects in the product development phase. However, it is in the product development phase where the majority of product life-cycle costs are determined. As a guideline for further case research, we propose an approach for integration in product life cycle modelling systems. For practitioners, we point out some major requirements for implementation. Finally, we demonstrate an early application of some of the ideas. Electronic access

PurposePostponement is known as a way to reduce risk and inventories while still providing high product variety and acceptable response times. The paper is a case study that uses simulation for quantifying these benefits for a consumer electronics company.Design/methodology/approachImprovement potential is first evaluated qualitatively through interviews with dealers of the case company. Next, the benefit of postponement is evaluated quantitatively using discrete‐event simulation with data from operational ERP systems. The conclusions identify conditions under which postponement is beneficial in retail.FindingsIn the case company, shop inventory is necessary for high‐volume and low‐variety products. Postponing variety creation to shops has the potential to decrease inventories for these products by 40‐80 per cent. The benefits of postponement depend on delivery speed requirement, product value, product variety and shop size.Research limitations/implicationsMany contributions on postponement have been conceptual. This study contains a quantitative test. The study considers both the spatial dimension (where) and the temporal dimension (when) of postponement.Practical implicationsThe research was sufficiently successful that the company implemented the delivery concept arising from the results. Corresponding benefits seem possible for other manufacturers and retailers of consumer goods.Originality/valueThe contribution is real‐life quantitative evidence of how modular product architecture can be utilised to improve operational supply chain performance.

Purpose -Scheduling problems in steel plants tend to be difficult and require complex algorithms due to many constraints. An approach is presented where only the main constraints are included in the scheduling algorithm. The schedule is validated using a discrete-event simulation model that includes additional detail. Design/methodology/approach -The combined approach is utilised for production scheduling in a steel mill in Finland. Operational performance of the steel mill is measured before and after software installation. The paper presents the scheduling environment, the software application and the resulting increase of production. Findings -Case experiences indicate that combining optimisation techniques with simulation is beneficial. The optimisation can be kept simpler as validation with a simulation model increases the credibility and accuracy of the resulting schedule. During software development and testing, the simulation model offered a testing environment for the optimisation algorithm. Practical implications -The case implementation was a success that increased production without making trade-offs with other production goals. Company management estimate the productivity increase directly caused by the project to be worth e2,500,000 annually. Originality/value -The paper presents a successful application of simulation for schedule validation in a complex and demanding environment.

Purpose – The purpose of this paper is to study how variations in weather affect demand and supply chain performance in sport goods. The study includes several brands differing in supply chain structure, product variety and seasonality. Design/methodology/approach – Longitudinal data on supply chain transactions and customer weather conditions are analysed. The underlying hypothesis is that changes in weather affect demand, which in turn impacts supply chain performance. Findings – In general, an increase in temperature in winter and spring decreases order volumes in resorts, while for larger customers in urban locations order volumes increase. Further, an increase in volumes of non-seasonal products reduces delays in deliveries, but for seasonal products the effect is opposite. In all, weather affects demand, lower volumes do not generally improve supply chain performance, but larger volumes can make it worse. The analysis shows that the dependence structure between demand and delay is time varying and is affected by weather conditions. Research limitations/implications – The study concerns one country and leisure goods, which can limit its generalizability. Practical/implications – Well-managed supply chains should prepare for demand fluctuations caused by weather changes. Weekly weather forecasts could be used when planning operations for product families to improve supply chain performance. Originality/value – The study focuses on supply chain vulnerability in normal weather conditions while most of the existing research studies major events or catastrophes. The results open new opportunities for supply chain managers to reduce weather dependence and improve profitability.