Built-to-order supply chain: response analysis with control model Online publication date: Fri, 01-Jan-2010
by Yohanes Kristianto, Petri Helo
International Journal of Procurement Management (IJPM), Vol. 3, No. 2, 2010
Abstract: This paper focuses on control systems modelling built-to-order buyers facing customised demand. The general purpose is to present a novel approach to managing collaboration, by considering information exchange between the buyer and the supplier. The methodology applies feedback control mechanism to analyse supplier responsiveness and product platform commonality degree to represent the need for product platform standardisation. A two stage game is applied ahead of control system application to optimise the production rate decision and supply contract, with the ultimate goal being profit maximisation and stabilisation. The results show that a higher product commonality degree gives more opportunity for quick response built-to-order supply chains at minimum shop floor operations changes, which are managed by feedback control. Furthermore, a contribution to collaborative supply chains is shown by applying a synchronised supply model to represent supplier and the buyer communication.
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