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2021 | OriginalPaper | Chapter

The Behavior of Lean and the Theory of Constraints in the Wider Supply Chain: A Simulation-Based Comparative Study Delving Deeper into the Impact of Noise

Authors : J. C. Puche-Regaliza, B. Ponte, J. Costas, R. Pino, D. de la Fuente

Published in: Organizational Engineering in Industry 4.0

Publisher: Springer International Publishing

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Abstract

The design and implementation of systems thinking strategies for supply chains, based on collaboration among partners, is gaining ground as a key source of competitive advantages. Therefore, a growing number of companies is moving the scope of their lean management (LM) and theory of constraints (TOC) solutions from the production system to the wider supply chain. Building on prior research studies, we explore their robustness against noise in a supply chain setting. To this end, we consider the Kanban and drum-buffer-rope (DBR) control systems, respectively, from the LM and TOC paradigms; we model a four-echelon supply chain by means of an agent-based approach; and we measure the net profit of the supply chain under six scenarios with increasing level of noise. As can be expected, we observe that the net profit decreases significantly as the severity of the noise grows. This happens both for the LM- and TOC-based supply chains. However, it is relevant to note that the gradient of the curve is stronger for the Kanban system. This means that DBR makes the supply chain more robust against noise. As a result, we conclude that the benefits derived from implementing DBR, in comparison with Kanban, increase significantly as the noise becomes more demanding.

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previous chapter Quantitative and Qualitative Models for Managing Risk Interdependencies in Supply Chain
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Footnotes
1
This perspective highlights the need to understand systems as a whole rather than a collection of parts, plunging actors into a global optimisation environment, where they care about interrelationships among processes, interdependencies among decisions, patterns instead of snapshots, and root causes of the inefficiencies rather than their symptoms [36].
 
2
Although less common, LM also employs CONWIP (the acronym of ‘CONstant Work-In-Progress) as an alternative to Kanban. Interested readers are referred to Takahashi and Nakamura [40] for a comparison between them.
 
3
A role-playing exercise, developed by the MIT more than half a century ago, that continuous to be a powerful tool to explore dynamics of supply chains, as discussed by Macdonald et al. [26].
 
4
NetLogo is a programmable modeling environment for agent-based modelling and simulation developed at Northwestern's Center for Connected Learning and Computer-Based Modeling. Please visit https://​ccl.​northwestern.​edu/​netlogo/​ for more information.
 
5
We checked the stability of the response of the agent-based supply chain and the repetitiveness of the results for our (30 +)200-day approach according to common practices.
 
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Metadata
Title
The Behavior of Lean and the Theory of Constraints in the Wider Supply Chain: A Simulation-Based Comparative Study Delving Deeper into the Impact of Noise
Authors
J. C. Puche-Regaliza
B. Ponte
J. Costas
R. Pino
D. de la Fuente
Copyright Year
2021
Book
Organizational Engineering in Industry 4.0

Print ISBN: 978-3-030-67707-7

Electronic ISBN: 978-3-030-67708-4

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-3-030-67708-4_16

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