Production planning models for a central factory with multiple satellite factories

Chen, Chou Fang; Egbelu, Pius J.; Wu, C. T.

doi:10.1080/00207549408957009

Cited by 17 publications

(5 citation statements)

References 4 publications

(2 reference statements)

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“…In this case, many sources of uncertainty have to be handled (Giannoccaro et al , 2003). Flexibility allows switching production among different plants and suppliers, so that management can cope with internal external variability (Chen et al , 1994). Emphasis on various dimensions of supply chain flexibility may be directly linked to overall firm performance.…”

Section: Supply Chain Flexibility: Research Framework and Questionsmentioning

confidence: 99%

Supply chain flexibility and firm performance

Sánchez¹,

Pérez²

2005

International Journal of Operations &Amp; Production Management

403

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PurposeTo explore the relationship between the dimensions of supply chain flexibility and firm performance in a sample of automotive suppliers.Design/methodology/approachEmpirical survey of a representative sample of 126 Spanish automotive suppliers during the months of September and October 2003. Data gathered through a mail survey to purchasing managers by using a structured questionnaire. Spearman correlation coefficients were used to analyse the relationship between the different supply chain flexibility dimensions, between supply chain flexibility dimensions and firm performance dimensions, and between supply chain flexibility dimensions and environmental uncertainty dimensions. A multivariate analysis studied the determinants of supply chain flexibility.FindingsThe research has found a positive relation between a superior performance in flexibility capabilities and firm performance, although flexibility dimensions are not equally important for firm performance. On the other hand, the results show that companies enhance more the basic flexibility capabilities (at the shop floor level) than aggregate flexibility capabilities (at the customer‐supplier level). However, aggregate flexibility capabilities are more positively related to firm performance than basic flexibility capabilities. Thus, companies might miss opportunities to improve competitiveness by underestimating customer‐supplier flexibility capabilities. Finally, the results indicate that flexibility capabilities are enhanced in supply chains with higher environmental uncertainty, technological complexity, and mutual understanding, but with lower interdependence among the agents involved in the supply chain.Research limitations/implicationsThere are other factors not included in the model that could impact the relationship between flexibility, supply chain characteristics and firm performance. On the other hand, the research has used cross‐sectional data, which are limited in order to explain causal relationships. Another limitation of the research is that we did not use any secondary data (like manual financial reports) to crosscheck firm performance.Practical implicationsThe results of the research contribute to a better understanding of the forces and constraints that companies face with flexibility capabilities.Originality/valueThe paper analyses the relationship between supply chain flexibility dimensions and firm performance. The model provides a framework of supply chain flexibility dimensions that may be used as a test base for further research.

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Section: Supply Chain Flexibility: Research Framework and Questionsmentioning

confidence: 99%

Supply chain flexibility and firm performance

Sánchez¹,

Pérez²

2005

International Journal of Operations &Amp; Production Management

403

View full text Add to dashboard Cite

show abstract

“…In this case, many sources of uncertainty have to be handled, such as market demand, supplier lead-time, product quality, and information delay (Giannoccaro et al 2003). Flexibility allows switching of production among different plants and suppliers, so that management can cope with internal and external variability (Chen et al 1994). While the process flexibility is a well known type of manufacturing system flexibility (Garavelli 2001), the flexibility of supplier for logistics can be referred to as the routing flexibility at the shop floor level, i.e.…”

Section: Background and Motivationmentioning

confidence: 99%

Study on suppliers’ flexibility in supply chains: is real-time control necessary?

Chan

Bhagwat

Wadhwa

2008

International Journal of Production Research

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In a supply chain, the suppliers' flexibility is considered as a tool to cope with the environmental uncertainties. Flexible suppliers are capable of supplying/processing other jobs in addition to the one for which they are the original supplier. In a cluster of flexible suppliers, it is expected that flexibility of suppliers be utilized more expressively through better control of the supply chain. The online real-time information system is considered as one of the tools for effective control of the supply chain. However, in a cluster of flexible suppliers, the physical and operating characteristics of alternative suppliers (available by virtue of suppliers' flexibility) may vary from each other for doing the same operation, which may result in a different lead-time to process the same job. This paper presents a simulation study on suppliers' flexibility level (SFL) in relation to information system automation level of the supply chain and physical characteristics of the flexible suppliers. This paper contributes an approach for decision-makers to identify the information system automation level and variations in physical characteristics of the alternative suppliers with respect to suppliers' flexibility level that can help in improving the overall delivery lead-time. A decision-maker can reach a trade-off between benefits obtained from supplier's flexibility and the investment required to have a suitable information system automation level and physical characteristics of suppliers. Results of simulation study show that if automation level of information system is not matching to the suppliers' flexibility level then supplier's flexibility may become counterproductive. Further, a relative change in physical characteristics of the alternative flexible suppliers as compared to the original supplier is more than a certain limit then suppliers' flexibility may again be counterproductive. However, a cost intensive real-time information system may not be needed when suppliers' flexibility levels are lower. Study identifies the productive and counterproductive performance regions for suppliers' delivery lead-time.

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“…Under such conception, a number of sources of uncertainty have to be handled (Giannoccaro et al, 2003). Flexibility also enables firms to switch production among different plants and suppliers, to make it easier for management to cope with internal and external variability (Chen et al, 1994). This clearly points to the fact that different facets of supply chain flexibility could have a direct influence on overall firm performance.…”

Section: Hmentioning

confidence: 99%

Supply Chain Integration and Flexibility and Its Impact on Business Performance

Muntaka¹,

Haruna²,

Mensah³

2017

IJBM

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This study explores the significance of integration and flexibility as critical determinants of business performance by examining the connection amongst supply chain integration and flexibility on the one hand and business performance on the other. Using mainly a cross-sectional approach, structured questionnaire was used to collect responses from two hundred and fifty-five employees drawn registered companies in the Kumasi Metropolis and analyzed with the help of Pearson"s correlation and structural equation modeling (SEM). Three elements of supply chain integration (company integration with suppliers, cross functional integration within a company and company integration with customers) and three elements of supply chain flexibility (adaptability, alignment and agility) were subjected to analysis. The results indicate that supply chain integration and supply chain flexibility exhibit significant correlation with firm performance. Supply chain integration and supply chain flexibility have high correlation with "financial performance" followed by "logistic performance" and then "operational performance". Also, the results demonstrate that four supply chain integration surrogates; "production data integration", "going after customers for feedback", "periodic connection with customers" and "real time search of inventory" and two supply chain flexibility proxies specifically "technology" and "supply network strategies" are crucial as they exhibit the most noteworthy influence on firm performance. Results of this study offer remarkable demonstrations of the effects of integration and flexibility in enhancing performance of businesses and greater attention must be paid to those proxies of supply chain integration and flexibility that exhibited the most significant impact on firm"s performance.

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Production planning models for a central factory with multiple satellite factories

Cited by 17 publications

References 4 publications

Supply chain flexibility and firm performance

Supply chain flexibility and firm performance

Study on suppliers’ flexibility in supply chains: is real-time control necessary?

Supply Chain Integration and Flexibility and Its Impact on Business Performance

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