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Title: A New Approach to Achieving Sharp and Timely Deliveries in Supply Chain Networks
Authors: Garg, D.
Narahari, Y.
Viswanadham, N. 
Keywords: Process capability indices
Statistical tolerancing
Supply chain management
Variability reduction
Variance pool allocation (VPA)
Issue Date: 2003
Citation: Garg, D.,Narahari, Y.,Viswanadham, N. (2003). A New Approach to Achieving Sharp and Timely Deliveries in Supply Chain Networks. IEEE International Conference on Intelligent Robots and Systems 3 : 2315-2320. ScholarBank@NUS Repository.
Abstract: In this paper, we come up with an innovative approach through which variability reduction and synchronization can be realized in supply chains. The approach developed is founded on a connection between mechanical design tolerancing and supply chain lead time compression. We use two metrics for delivery performance, delivery sharp-ness and delivery probability, which measure the accuracy as well as the precision with which products are delivered to the customers. Then we solve the following specific problem: given the delivery sharpness and delivery probability to be achieved, how can variability be allocated across individual stages of the supply chain in a cost-effective way. We call this the variance pool allocation (VPA) problem and we suggest a systematic approach for solving the VPA problem. We show that a variety of important supply chain design problems, such as supply chain partner selection, can be posed as instances of the VPA problem. We formulate and solve the VPA problem for a plastics industry supply chain and demonstrate how the solution can be used to choose the best mix of supply chain partners.
Source Title: IEEE International Conference on Intelligent Robots and Systems
Appears in Collections:Staff Publications

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