Supply chain modeling is an attempt to bring order to the general chaos of a supply chain to achieve specific business objectives. It can include everything from supply chain invoicing to warehousing to the distribution of finished products.
What are some of the supply chain models?
- Regression models
- ARIMAX models
- UCM models
- Unobserved components models (UCMs)
What are the types of supply chain?
What are the types of supply chain?
- The “Efficient” Supply Chain Model. …
- The “Fast” Supply Chain Model. …
- The “Continuous-Flow” Supply Chain Model. …
- The “Agile” Supply Chain Model. …
- The “Custom-Configured” Supply Chain Model. …
- The “Flexible” Supply Chain Model.
What are supply chain management tools?
Types of Tools
- Shipping Status Alerts and Updates. An increasingly popular tool, real-time alerts provide timely information on all shipping activities.
- Order Processing. Order processing is massively important to any supply chain, and as such, solutions provide the tools needed to make this task easier and more efficient.
- Lean Inventory. ...
- Warehouse Management. ...
What is the best software for supply chain management?
Top 15 Supply Chain Management Software
- E2open. E2open is an online supply chain management system designed to provide more responsive and demand-driven supply chain.
- SAP SCM. ...
- Logility. ...
- Perfect Commerce. ...
- Oracle SCM. ...
- Infor SCM. ...
- JDA SCM. ...
- Manhattan SCM. ...
- Epicor SCM. ...
- Dassault Systemes SCM. ...
What are the types of supply chain models?
Here are six types of supply chain models that can drive supply chain management for a business:Continuous Flow. This is one of the most traditional models on the list. ... Fast chain. The fast chain model is one of the new names in supply chain strategies. ... Efficient Chain. ... Agile. ... Custom-configured. ... Flexible.
What is logistic Modelling?
Models are simulations that a company (or the modeling company they hire) can run to determine how a logistics network will perform. This allows companies to make cost-efficient and productive decisions about their logistics network before going to the expense of implementing it.
What is the best approach of supply chain Modelling?
Supply Chain Modelling- ApproachesNetwork Design. The network design determines the location of production, stocking and sourcing facilities and the paths of the materials flowing through them. ... Rough Cut method. Rough cut model has been widely used in industry. ... Simulations.
What is the basic model for supply chain management?
The three responsive supply chain models are the agile model, the flexible model, and the custom configured model. These models are ideal for “on demand” situations. They are ideal when there is a level of uncertainty in the product manufacturing.
What are the 3 types of logistics?
Types of LogisticsLogistics Fields.Procurement Logistics: Procuring Raw Materials and Parts.Production Logistics: Materials Management, Distribution in Factories, Product Management, Shipping.Sales Logistics: Delivery from Warehouse to Wholesalers, Retailers, and Consumers.More items...
What are the 3 types of logistic regression?
There are three main types of logistic regression: binary, multinomial and ordinal.
What are the 4 inventory models?
While there are many types of inventory, the four major ones are raw materials and components, work in progress, finished goods and maintenance, repair and operating supplies.
What are the 4 types of supply chains?
Six Types of Supply Chain ModelsThe Continuous Model.The Fast Model.The Efficient Model.The Agile Model.The Custom-Configured Model.The Flexible Model.About IDB.FB.More items...
What are the 3 types of supply chain?
The 3 Levels of Supply Chain Management: Strategic, tactical and operational. The three levels of supply chain management are strategic, tactical and operational.
How many supply chain models are there?
sixThere are considered to be six generic supply chain models, of which one group is oriented towards efficiency and the other towards responsiveness. Any manufacturing business should have a supply chain corresponding to one of the six models.
What is cost modeling in supply chain?
A supply chain cost model presents all cost data. In a way that clearly visualizes the cost impact of design. Or visualizes the optimization decisions in the plan-source-make-deliver-return processes. Without a cost model, the chance is high that cost down actions are suboptimal or will have the opposite effect.
What are the 5 pillars of SCM?
The five pillars of supply chain resiliencePillar 1 – Vulnerability. ... Pillar 2 – Management Culture. ... Pillar 3 – Procurement. ... Pillar 4 – Operations. ... Pillar 5 – Demand & Visibility.
What is logistic model in machine learning?
What is logistic regression? Logistic regression is an example of supervised learning. It is used to calculate or predict the probability of a binary (yes/no) event occurring. An example of logistic regression could be applying machine learning to determine if a person is likely to be infected with COVID-19 or not.
Why do we use logistic model?
Logistic regression is used to describe data and to explain the relationship between one dependent binary variable and one or more nominal, ordinal, interval or ratio-level independent variables.
What is logistic model of growth?
In logistic growth, a population's per capita growth rate gets smaller and smaller as population size approaches a maximum imposed by limited resources in the environment, known as the carrying capacity ( K).
What are the 4 major logistic functions?
How Logistics Functions ? 6 Major Functions of Logistics.Order processing.Inventory Management & Control.Warehousing.Transportation.Logistical Packaging.Monitoring.
Supply Chain Modelling- Approaches
To incorporate the 4 major decisions areas of location, production, inventories and transportation, Ganeshan and Harrison (1996) suggested that supply chain modelling process can be approach in 3 ways. These approaches were network design, ‘rough cut’ methods and simulation based methods.
Supply Chain Modelling Characteristics (Variables)
Hokey and Gengui (2002) have explained “ supply chain modelling characteristics generally expressed as a function of one or more of these decision variables. Thought not exhaustive, the following illustrates these variables:
Conclusion
In general Supply chain modelling is used to test alternative supply chain decisions, evaluate performance and analysis weakness of the supply chain by supply chain analyst or managers. Significant efforts have been put into the creation of an ideal supply chain model so that accurate design on improvements in performance can be made.
Reference
Ganeshan R., Harrison T. P., 1996. An Introduction to Supply Chain Management. Department of Management Science and Information systems, Penn State University., USA.
How many supply chain models are there?
While there are 6 models of supply chains all of them fit into either one of two categories. Either the model is focused on efficiency or it is focused on responsiveness. The reality is all supply chains have elements of both efficiency and responsiveness, but each supply chain model can have a primary focus of either.
What are the three models of supply chain efficiency?
Efficiency supply chain models include, the efficient chain model, the fast chain model and the continuous flow model . All three of these models put efficiency first and are geared toward certain industries like paper industries, cement industries, commodity producing industries and even budget fashion industries.
What is a Supply Chain?
There are several definitions that define what a supply chain is but none simpler than it is a sequence of events that helps a commodity move from manufacturing to market. The supply chain contains, people, equipment, transportation modes and technology.
What are the three responsive supply chain models?
The three responsive supply chain models are the agile model, the flexible model, and the custom configured model. These models are ideal for “on demand” situations. They are ideal when there is a level of uncertainty in the product manufacturing. These three models offer the flexibility for industries that provide custom order products, trendy products and for manufacturers that often make changes in the products they produce.
Why is supply chain management important?
It is a good place to start because it gives you the basic information that you need to build on. Supply chain management is critical to every business. Understanding the models and their purposes are critical to the success of any business. Supply chain management models are broken down into 6 separate categories (though some argue there is 4) ...
What is agile model?
The agile model is primari ly a method of supply chain management that is ideal for businesses that deal in specialty order items . It is a model that focuses on the ability of the supply chain to amp up in some cases but also be solid when there is not much movement happening.
What is fast chain?
The fast chain model is ideal for manufacturers that manufacture products that are trendy with short life cycles. It works well with a business that must change their products frequently and that needs to get them out fast before the trend ends. It is a flexible model.
Why is local supply chain important?
Relying on a shorter, local supply chain generally means manufacturers can carry less safety stock because it's easier and quicker to replenish. However, such benefits come at a cost: a higher raw charge for the material being purchased, says James Goffee, vice president, manufacturing at Zebra Technologies Corp., Vernon Hills, Ill., USA.
What are the elements of a manufacturing process?
The eight elements that span each of these plan sections include establishing and managing business rules, assessing performance, managing data, inventory, transportation and supply chain configuration, and regulatory compliance.
What is SCOR in supply chain?
SCOR provides standard definitions for each element as well as text/tables with inputs and outputs. Moreover, it promotes a graduated approach to designing, implementing, monitoring and benchmarking the operation of a supply chain. This model describes processes, not functions.
What is a Scor model?
The Supply-Chain Council Inc., a Pittsburgh, Pa., USA-based independent organization dedicated to improving supply chain performance, offers the Supply-Chain Operation Reference (SCOR) model, a detailed template available to help manufacturers design a supply chain, measure it against company- and industry-specific goals and enhance it over time. It spans all customer interactions (from order entry to paid invoice). By describing supply chains using the SCOR building blocks, the model can be employed to describe supply chains that are very simple or very complex, using a common set of definitions.
How long does a supply chain evaluation last?
The original supply chain evaluation exercises, done on a powerful desktop computer, normally last three to four months, according to Martha. Data is collected throughout the first month. Manufacturers spend much of the second month building supply chain models and validating them. During the final two months, users run various scenarios—basically a lot of “what if” thinking when testing options and constraints.
Why do we need to purchase raw materials locally?
Purchasing raw materials locally, the other option, allows manufacturers to avoid having to contend with the host of issues tied to worldwide transit such as long lead times for ocean transport or more expedited and expensive air freight, customs clearance, compliance with import/export rules and payment of any required fee. Moreover, such sourcing “allows for quicker corrective action, should there be a problem,” says Stuart Zerneri, materials director for Brooks Automation of Chelmsford, Mass., USA, a producer of semiconductor production equipment.
How to build correct, adequate pathways back to suppliers?
To build correct, adequate pathways back to suppliers, manufacturers first must draft a bill of materials outlining the components needed to make each major product, according to Goffee. Those requirements then are translated into determining minimum safety stock for each component and the lead time needed to replenish it.
How does the supply chain work?
Imagine a business as a well-oiled machine: the supply chain would be the oil that keeps it running. The supply chain involves all of the logistics of producing and selling commercial goods. It entails the entire process beginning with resource acquisition, then continuing through to product development and delivery to the vendor. It’s the process by which manufacturers secure the resources to produce products and how those products are delivered to the point of purchase. Sustained, quality management of supply chains is necessary for every company to remain competitive and for the global economy to stay healthy. To properly manage and protect supply chains, one must be aware of the six different models that can be employed.
Why is supply chain management important?
High-quality management of supply chains is necessary for a company to remain competitive and for the global economy to stay healthy. To properly manage and protect supply chains, one must be aware of these six supply chain models to choose the type best suited to your organization’s operations. #supplychain #management #IDB
What is continuous supply chain?
A continuous model is a supply chain built for continued, scheduled delivery of goods. This model ensures a continued, steady cadence of products and resources. It only exists in an environment with supply and demand stability, typically with mature supply chains for established brands, and requires minimal variation in the customer demand profile. PepsiCo is a well-known example of a continuous supply chain model. The company’s family of drinks and foods maintains a large customer base with little to no variety in demand no matter the season or market conditions. PepsiCo has set up the logistics of its delivery system to continuously receive ingredients to produce its food and beverages, and likewise continuously restock vendors.
What is flexible supply chain?
The flexible model provides businesses the ability to meet peaks of high demand as well as long periods where demand is low. There are three components a supply chain must have to be considered a flexible model: part segmentation, accurate stocking algorithms and flexible planning. This is ensured through diversifying suppliers and incorporating automation on factory floors. Staples’ paper and writing utensil products are produced and delivered via a flexible supply chain. Staples anticipates high demand during back-to-school season and stocks its stores with excess notebooks, paper, pens, pencils, rulers and other school supplies. The company also must ensure that it has some stock, albeit less, of those products year-round. This is achieved through flexibility: having multiple suppliers, many of whom are on seasonal contracts, and perfecting the stocking algorithm so that the company produces only what will be sold in the offseason.
What is a custom configuration model?
Essentially, a combination of the agile and continuous flow models, a custom-configured model is ideal in scenarios where multiple product configurations are required. Whenever there are consumer customization options, it’s likely that a custom-configured model is in use. This can be seen in a company like L.L. Bean, which invites customers to customize their backpacks before placing an order. The market for backpacks stays pretty consistent, aside from the demand spike in the late summer, but L.L. Bean has to be prepared for when one feature of customization becomes particularly more or less popular.
What is fast model?
A fast model is most often used by businesses that manufacture finished products with a short market lifecycle, making it the most common for the delivery of products considered to be trendy. This model applies when a business changes its products frequently, delivering them to market before a trend loses its relevance. One example is Nike. A leader in active-wear fashion, Nike frequently sets up delivery systems of new supplies and information to create and then sell new shoes and other apparel before that particular trend’s time has passed. A short time later, the company will set up a new fast supply chain for the next wave of trendy products.
What is a simulation in supply chain?
SIMULATION allows you to model any existing supply chain or a proposed new supply chain and see how it works. It shows how different designs will operate, and what their costs and performance levels will be.
What is the purpose of optimization in supply chain?
OPTIMIZATION allows you to take a single supply chain design and optimize specific variables in order to obtain the best possible performance from that design. Optimizations refine existing designs, but optimizations do not create new designs.
What is SCM Globe simulation?
SCM Globe simulations exhibit what is known as “deterministic chaos.” This is because simulation results are highly sensitive to initial starting conditions as defined in each individual supply chain model. Small changes to a model can produce results that may appear counter-intuitive, unpredictable, or even chaotic… just like the real world (see “ Butterfly Effect “). There are endless changes and combinations of changes you can make to the different entities in your supply chain model. And each time you make a change, your simulation takes a unique trajectory determined by the cumulative effect of all the changes you have made up to that point.
How does SCM Globe work?
SCM Globe tracks the flow of products through a network of facilities (a supply chain), and calculates related operating costs and key performance indicators over any number of hours, days, weeks or months. Supply chains and operations can be modeled and simulated at any level from global to regional and local. Simulations display the results of interactions between model agents in the FOUR ENTITY CLASSES:
How many products can be in a SCM Globe model?
NOTE: The academic version of SCM Globe supports supply chain models containing up to 15 – 20 products and a similar number of facilities, vehicles and routes. Models exceeding these limits will run slowly and experience other problems. See “ Tips for Building Supply Chain Models ” for further explanation and ways to work with these limits.
What is a map based user interface?
The application employs a map-based user interface to present essential supply chain activities and information in an easily understandable visual format. Maps and satellite views as shown below provide an organizing context for displaying supply chain structure and detailed performance data generated by the simulations. This reduces the amount of training needed to set up and run the simulations making them understandable and usable by a wide business, professional and academic audience (not just a small group of experts).
What is another example of a model that summarizes reality?
A map is another example of a model that summarizes reality. To contain all the detail of the real world a map would have to be as big as the world itself. So maps leave out a lot of detail, yet many are still quite useful.
How complex are supply chain systems?
Supply chain systems are inherently complex. Thus, the models and methods used to accurately study these systems are, expectedly, also complex. However, if supply chain systems could be classified on the bases of specific characteristics, such as uncertainty or volume of demand, number of echelons, or number of items produced, there may be rule-of-thumb techniques that suggest operational characteristics that may achieve a certain objective (or set of objectives). Thus, research that develops a meaningful classification scheme for supply chain systems that leads to rules-of-thumb associations between decision variables and performance objectives is needed.
What is global supply chain?
Global Supply Chains (GSC) are supply chains that operate (i.e., contain facilities) in multiple nations. When modeling GSCs, there are additional considerations affecting SC performance that are not present in supply chains operating in a single nation. Export regulations, duty rates, and exchange rates are a few of the additional necessary considerations when modeling GSCs. Kouvelis and Gutierrez (1997), Arntzen, et. al. (1995) and Cohen and Lee (1989) address modeling issues associated with GSCs.
What is the purpose of Chen and Whang's performance measurement system?
Lee and Whang (1993) develop a performance measurement system that attempts to match the performance metric of individual supply chain managers with those of the entire supply chain, in an attempt to minimize the total loss associated with conflicting goals. Similarly, Chen (1997) also investigates the relationship between individual supply chain managers and the supply chain as a whole, but does so on the basis of inventory costs. In this work, Chen (1997) seeks to develop optimal inventory decision rules for managers (who have only local information) that result in the minimum long-run average holding and backorder costs for the entire system.
What is demand distortion?
Demand distortion is the phenomenon in which “ orders to the supplier have a larger variance than sales to the buyer” and variance amplification occurs when the distortion of the demand “propagates upstream in the amplified form ” . These phenomena (also known collectively as the “bullwhip effect” or “whiplash effect”) are common in supply chain systems and were observed as early as Forrester (1961). The consequences of the bullwhip effect on the supply chain may be severe, the most serious of which is excess inventory costs.
What is cost minimization?
Cost Minimization: The most widely used objective. Cost is typically minimized for an entire supply chain (total cost), or is minimized for particular business units or stages.
What is the purpose of performance measures in supply chain?
A performance measure, or a set of performance measures, is used to determine the efficiency and/or effectiveness of an existing system, or to compare competing alternative systems.
How many stages are there in the supply chain?
The supply chain in Figure 1 consists of five stages. Generally, multi-stage models for supply chain design and analysis can be divided into four categories, by modeling approach. In the cases included here, the modeling approach is driven by the nature of the inputs and the objective of the study.
