A multi-period and multi-product optimizer for cooperative supply chains
Members in a traditional supply chain compete to reduce their individual costs. But total cost is minimized in a cooperative, or a corporate managed, supply chain. A lower average cost and a lower cost variation are achieved by cooperative individual members in the long-run. The problem is formulate...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2012-03-01
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| Series: | South African Journal of Business Management |
| Online Access: | https://sajbm.org/index.php/sajbm/article/view/178 |
| _version_ | 1811231268161978368 |
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| author | M. Sepehri K. Fayazbakhsh |
| author_facet | M. Sepehri K. Fayazbakhsh |
| author_sort | M. Sepehri |
| collection | DOAJ |
| description | Members in a traditional supply chain compete to reduce their individual costs. But total cost is minimized in a cooperative, or a corporate managed, supply chain. A lower average cost and a lower cost variation are achieved by cooperative individual members in the long-run. The problem is formulated and solved as an integrated flow network. Previous research is expanded to include multi-period and multi-product cooperative supply chain with possibility of holding inventory in a multi-stage, multi-member setup. A Cooperative Supply Optimizer System (CSOS), a software-based coordination mechanism, is developed for large chains. It gathers operational information from members of the supply chain, and then guides them on ordering decisions for a minimum cost of the entire supply chain. Simulation results indicate an approximately 26% reduction in total supply chain costs, utilizing this formulation over a competitive setup. As the holding costs increase, the problem decomposes into single period (Just-in-time) again. The disturbing bullwhip effect disappears in cooperative supply chains. |
| first_indexed | 2024-04-12T10:42:33Z |
| format | Article |
| id | doaj.art-5f897ea0ad6b4e08a35024281ecbc2dc |
| institution | Directory Open Access Journal |
| issn | 2078-5585 2078-5976 |
| language | English |
| last_indexed | 2024-04-12T10:42:33Z |
| publishDate | 2012-03-01 |
| publisher | AOSIS |
| record_format | Article |
| series | South African Journal of Business Management |
| spelling | doaj.art-5f897ea0ad6b4e08a35024281ecbc2dc2022-12-22T03:36:34ZengAOSISSouth African Journal of Business Management2078-55852078-59762012-03-01431779210.4102/sajbm.v43i1.178167A multi-period and multi-product optimizer for cooperative supply chainsM. Sepehri0K. Fayazbakhsh1Graduate School of Management and Economics Sharif University of TechnologyDepartment of Computer Engineering and IT Amirkabir University of TechnologyMembers in a traditional supply chain compete to reduce their individual costs. But total cost is minimized in a cooperative, or a corporate managed, supply chain. A lower average cost and a lower cost variation are achieved by cooperative individual members in the long-run. The problem is formulated and solved as an integrated flow network. Previous research is expanded to include multi-period and multi-product cooperative supply chain with possibility of holding inventory in a multi-stage, multi-member setup. A Cooperative Supply Optimizer System (CSOS), a software-based coordination mechanism, is developed for large chains. It gathers operational information from members of the supply chain, and then guides them on ordering decisions for a minimum cost of the entire supply chain. Simulation results indicate an approximately 26% reduction in total supply chain costs, utilizing this formulation over a competitive setup. As the holding costs increase, the problem decomposes into single period (Just-in-time) again. The disturbing bullwhip effect disappears in cooperative supply chains.https://sajbm.org/index.php/sajbm/article/view/178 |
| spellingShingle | M. Sepehri K. Fayazbakhsh A multi-period and multi-product optimizer for cooperative supply chains South African Journal of Business Management |
| title | A multi-period and multi-product optimizer for cooperative supply chains |
| title_full | A multi-period and multi-product optimizer for cooperative supply chains |
| title_fullStr | A multi-period and multi-product optimizer for cooperative supply chains |
| title_full_unstemmed | A multi-period and multi-product optimizer for cooperative supply chains |
| title_short | A multi-period and multi-product optimizer for cooperative supply chains |
| title_sort | multi period and multi product optimizer for cooperative supply chains |
| url | https://sajbm.org/index.php/sajbm/article/view/178 |
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