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2015 | Buch

Introduction Kapitel lesen Erstes Kapitel lesen

Advances in Integrated and Sustainable Supply Chain Planning

Concepts, Methods, Tools and Solution Approaches toward a Platform for Industrial Practice

verfasst von: José Miguel Laínez-Aguirre, Luis Puigjaner

Verlag: Springer International Publishing

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

Decision making at the enterprise level often encompass not only production operations and product R&D, but other strategic functions such as financial planning and marketing. With the aim of maximizing growth and a firm’s value, companies often focus on co-ordinating these functional components as well as traditional hierarchical decision levels. Understanding this interplay can enhance enterprise capabilities of adaptation and response to uncertainties arising from internal processes as well as the external environment.

This book presents concepts, methods, tools and solutions based on mathematical programming, which provides the quantitative support needed for integrated decision-making and ultimately for improving the allocation of overall corporate resources (e.g., materials, cash and personnel).

Through a systems perspective, the integrated planning of the supply chain also promotes activities of reuse, reduction and recycling for achieving more sustainable environmental impacts of production/distribution networks. Thus, this book presents, for the first time, a unique integrated vision of the Enterprise Supply Chain Planning and provides a comprehensive account of the state of the art models, methods and tools available to address the above mentioned features of the modern supply chain.

It offers a comprehensive review of the associated literature of supply chain management and then systematically builds on this knowledge base to develop the mathematical models representing each of the core functional units and decision levels of the corporation and shows how they can be integrated into a holistic decision problem formulation.

Abundant illustrations and tables help maximize reader insights into the problems discussed with several case studies and industry application also examined.

This book is intended as a textbook for academics (PhD, MSc), researchers and industry decision-makers, who are involved in the design, retrofit and evaluation of alternative scenarios for the improvement of the supply chain.

Inhaltsverzeichnis

Frontmatter

Overview

Frontmatter
Chapter 1. Introduction
Abstract
Enterprises are supported not only by production operations, but also by the R&D of the product, as well as by strategic functions such as financial planning and marketing. With the aim of maximizing growth and creation of firm’s value, companies need these functional components as well as their hierarchical decision levels to be well coordinated. This fact can enhance the enterprise capabilities of adapting and responding to uncertainties arising from internal processes as well as from the external environment. Therefore, to maintain and create a competitive advantage, decisions within organizations ought to be carried out by quantitatively understanding the trade-offs among the risks and benefits that imply the different available alternatives. This book presents concepts, methods, and solution approaches based on mathematical modeling that can provide such a quantitative support for integrated decision-making in order to assist in the management of supply chains and ultimately improve the allocation of the overall enterprise resources (e.g., materials, cash, and personnel).
José Miguel Laínez-Aguirre, Luis Puigjaner

Business Functional Integration in Strategic Decision-Making

Frontmatter
Chapter 2. Financial Issues in the Design of Supply Chains
Abstract
Traditionally, approaches available to address the design and operation of supply chains concentrate on the process operations side and neglect the financial part of the problem. In this chapter, a framework whose main focus is the inclusion of financial considerations at the strategic decision-making level is presented. The approach adopts the corporate value of the firm as the performace metric to be maximized, and also evaluates the feasibility of the strategic decisions from the financial point of view by ensuring liquidity control. The main advantages of the new approach presented, which takes into account the incorporation of financial issues, are highlighted by means of a motivating retrofit case study, whose solution is compared with the conventional treatment of the problem. It is shown that the integrated solution ensures the feasibility of the strategic financial decisions and offers superior economic performance, due to its greater ability to create value for the company.
José Miguel Laínez-Aguirre, Luis Puigjaner
Chapter 3. Synchronizing Supply Chain and Product Development Decisions
Abstract
In the highly competitive market of today, the SC activities and product development must be coordinated and synchronized so that the requirements of market demand, product release, and capacity requirements are achieved in a financially sustainable manner. This chapter provides an integrated model that incorporates the simultaneous treatment of SC design-planning and the product development pipeline decisions in the pharmaceutical industry. Moreover, the aforementioned cross-functional model embeds a capital budgeting formulation enabling the quantitative assessment of the firms’ value. The model also considers the endogenous uncertainty associated with product test outcomes during the development process. To tackle this problem, a scenario-based multi-stage stochastic MILP formulation is proposed. This model includes risk constraints, which allow finding optimal solutions within accepted risk levels. A decomposition technique is also applied in order to reduce the computational effort required for the solution of the monolithic model, thus facilitating the solution of realistic industrial problems of moderate scale.
José Miguel Laínez-Aguirre, Luis Puigjaner
Chapter 4. Linking Marketing and Supply Chain Planning Models
Abstract
A management model of the supply chain, which incorporates strategic business components, is becoming of paramount importance to gain a competitive advantage in the market place. To be successful, the business model has to consider not only the supply chain, but also the demand chain that requires an understanding of the market and customer behavior. Marketing is a boundary-spanning activity, linking the selling entities with buyers and intermediate channels. To operate more effectively, marketing activities should be coordinated with other functional areas of the company. Specially, the interface of marketing—SC management is a topic that deserves further study. Business managers should evaluate the balance between marketing and supply chain planning decisions in order to enhance the performance of the overall business metric: the shareholders value. Recently, there is a significant trend that drives business managers to implement marketing science models to reach more rational and comprehensive decisions. In this chapter, a mathematical model is presented for the enterprise that accounts for the three main business functionalities (i.e., operations, finances and marketing). The underlying problem is tackled by developing a MINLP model, which optimizes in tandem the supply chain and the marketing strategic decisions. Finally, the main advantages of coordinated decisions are discussed through an illustrative example.
José Miguel Laínez-Aguirre, Luis Puigjaner

Operations Strategic and Tactical Issues

Frontmatter
Chapter 5. Flexible Design—Planning of Supply Chain Networks
Abstract
The strategic decision of determining the supply chain network optimal structure plays a vital role in the later optimization of supply chain operations. This chapter focuses on the design and retrofit of the supply chain. Traditional approaches addressing this problem usually utilize as departing point a predefined network structure, which may restrict the opportunities of adding business value. Instead, in this chapter a flexible formulation approach that translates a recipe representation into the SC environment is presented for solving the design-planning challenging problem of SC networks. The potential of this approach is highlighted through illustrative examples of increasing complexity, where results of traditional rigid approaches and those offered by the flexible framework are compared.
José Miguel Laínez-Aguirre, Luis Puigjaner
Chapter 6. Integrated Operations and Environmental Planning
Abstract
Entrepreneurial approaches to improve environmental performance can not take place in isolation, so a concerted effort by the SC entities poses another important challenge for managers. In this chapter the optimization of planning and design of the SC is examined considering economic and environmental issues. The strategic decisions considered in the model are facility location, processing technology selection and production-distribution planning. A Life Cycle Assessment (LCA) approach provides for the incorporation of environmental aspects of the model. The methodology IMPACT 2002\(+\) has been selected to carry out the impact assessment within the SC, which provides a feasible implementation of a combined midpoint-endpoint assessment. The proposed approach reduces the value-subjectivity inherent to the assignment of weights in the calculation of an overall environmental impact by considering end-point damage categories as objective function. Moreover, consideration of \(\text{ CO }_2\) trading scheme and timing of environmental interventions are also included with the intention of providing a tool that can be used to evaluate current regulatory policies or pursue more effective ones. The mathematical formulation of this problem becomes a multi-objective MILP (moMILP). The criteria selected for the objective function are damage categories impacts, overall impact factor and net present value (NPV). The main advantages of this model are highlighted through a case study of a network of production and distribution of maleic anhydride.
José Miguel Laínez-Aguirre, Luis Puigjaner

Treatment of Uncertainty

Frontmatter
Chapter 7. Capturing Dynamics in Integrated Supply Chain Planning
Abstract
A major challenge for an enterprise to stay competitive in today’s highly competitive market environment is to be able of capturing and handling the dynamics of its entire SC. This chapter incorporates the uncertainty and process dynamics into enterprise wide models. The supply chain model developed includes a design-planning and a financial formulations. A Model Predictive Control (MPC) methodology is proposed which comprises a stochastic programming approach. To address this problem, a scenario based multi-stage stochastic programming model is employed. The novel control framework introduced constitutes a step-forward toward closing the loop for the SC’s dynamic management, and a supporting platform for the supervisory module handling the incidences that may arise in the SC operations. The potential of this approach is highlighted through a case study, where the results of a deterministic MPC and the proposed control framework are compared. It is emphasized the significance of merging uncertainty treatment and control strategies to improve the SC performance.
José Miguel Laínez-Aguirre, Luis Puigjaner
Chapter 8. Using S-Graph to Address Exogenous Uncertainty in Processes Scheduling
Abstract
Processes and markets are subject to uncertainty which makes production activities of batch plants constitute a complex environment to manage. Uncertainty may cause deviations and infeasibilities in projected schedules; this can lead to poor planning and inefficient use of materials. Consequently, the relevance of explicitly incorporating variability in the scheduling formulation in order to provide more efficient plans and robust decisions to changes has been recognized. Moreover, a significant performance improvement of the SC can be obtained by comprising low level decisions in managing the supply chain. Also, such an integration results in a better treatment of supply chain dynamics. However, the inclusion of scheduling models lead to large scale problems. Therefore, a challenge in this field is the reduction of the computational burden required to solve this kind of problems. This chapter addresses the batch plants scheduling under exogenous uncertainty. The most widely utilized approach to tackle this problem is stochastic programming; however, its solution is at the expense of a significant increase of computational cost. From another standpoint the S-graph representation, a graph-theoretic approach, has proved to be very efficient to deal with deterministic scheduling. In this chapter, the S-graph framework is enhanced so that stochastic scheduling problems can be handled. For this purpose, a Linear Program (LP), which serves as performance evaluator, has been coupled with the S-graph framework. One of the main advantages of the proposed approach is that the search space does not exponentially increase according to the number of scenarios considered in the problem. The potential of the proposed framework is highlighted through two illustrative examples.
José Miguel Laínez-Aguirre, Luis Puigjaner

Integration of Hierarchical Decision Levels

Frontmatter
Chapter 9. Considerations of Planning and Scheduling into the Design of Supply Chains
Abstract
One of the key components of enterprise-wide optimization is decision-making coordination and integration of all decision levels. In this chapter, the SC design-planning model presented in Chap. 5, which translates a recipe representation into the supply chain environment, is coupled with a scheduling formulation in order to achieve the integration of all decision levels. This approach permits to assess the impact of considering aspects of production scheduling in the design of a SC network. A comparison of the proposed scheme and the traditional hierarchical approach shows the significance of this integration. Moreover, the incorporation of scheduling details also enable the dynamics of the SC to be tracked more appropriately. It is shown the degree to which a comprehensive decision-making model within a model predictive control framework is able to react to incidents occurring along the SC components, including disturbances originating from local monitoring, control and diagnosis of abnormal events in real time. Finally, a decomposition technique is applied to reduce the computational burden associated with the monolithic model solution. Validation of the proposed approach and the resulting potential benefits are highlighted through a case study.
José Miguel Laínez-Aguirre, Luis Puigjaner
Chapter 10. Conclusions and Future Perspectives
Abstract
Enterprises decisions are concerned not only about production operations but also by product R&D as well as by strategic functions such as financial planning and marketing.
José Miguel Laínez-Aguirre, Luis Puigjaner
Backmatter
Metadaten
Titel
Advances in Integrated and Sustainable Supply Chain Planning
verfasst von
José Miguel Laínez-Aguirre
Luis Puigjaner
Copyright-Jahr
2015
Electronic ISBN
978-3-319-10220-7
Print ISBN
978-3-319-10219-1
DOI
https://doi.org/10.1007/978-3-319-10220-7

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