Title: New concepts for demand-supply chain synchronisation

Authors: Erno Salmela; Ari Happonen; Janne Huiskonen

Addresses: Faculty of Technology Management, Lappeenranta University of Technology, P.O. Box 20, Lappeenranta FI-53851, Finland ' Faculty of Technology Management, Lappeenranta University of Technology, P.O. Box 20, Lappeenranta FI-53851, Finland ' Faculty of Technology Management, Lappeenranta University of Technology, P.O. Box 20, Lappeenranta FI-53851, Finland

Abstract: This paper examines demand-supply chain synchronisation within demand and supply uncertainty and increased speed requirements. The best-known synchronisation concept, the Value Offering Point-Order Penetration Point, seems to have some limitations in this kind of environment. First, the concept focuses on certain demand information and ignores the utilisation of uncertain demand information and the possibilities and risks related to it. Secondly, the concept does not take into account supply information and its utilisation. Due to these limitations, two new synchronisation concepts were created: the Demand Visibility Point-Demand Penetration Point and the Supply Visibility Point-Supply Information Penetration Point. [Received 23 December 2010; Revised 30 March 2011; Accepted 14 April 2011]

Keywords: demand-supply chains; supply chain synchronisation; uncertainty; coordination; value offering point; order penetration point; demand visibility point; demand penetration point; supply information; supply visibility; supply chain management; SCM; DCM; demand chain management.

DOI: 10.1504/IJMR.2012.046800

International Journal of Manufacturing Research, 2012 Vol.7 No.2, pp.148 - 164

Published online: 22 Nov 2014 *

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