Supply-Chain Redesign to Reduce Safety Stock Levels: Sequencing and Merging Operations Academic Article

abstract

• We investigate the impact of the process of manufacturing and distribution on the safety stock levels in a supply chain. A pipeline hedging method is used to derive a model for estimating the safety stock levels. We propose methods and guidelines to redesign the manufacturing and distribution process to minimize the total safety stock investment for a specified service level. The product family consisting of one product and two products is studied in detail. Conditions and insights for better supply-chain management are developed. These enable us not only to decide when a process redesigning activity is appropriate, but also to suggest the scale and the format of the process redesign. Based on the results obtained, two procedures-resequencing and merging-are developed. Finally, we demonstrate how these procedures can be extended to product families consisting of multiple products in a hierarchical manner.

authors

• Sriskandarajah, Chelliah

published proceedings

• IEEE Transactions on Engineering Management

author list (cited authors)

• Yan, H., Sriskandarajah, C., Sethi, S. P., & Yue, X.

citation count

• 4

complete list of authors

• Yan, Houmin||Sriskandarajah, Chelliah||Sethi, Suresh P||Yue, Xiaohang

publication date

• August 2002

publisher

• Institute of Electrical and Electronics Engineers (IEEE)  Publisher

published in

• IEEE Transactions on Engineering Management  Journal

keywords

• 9 Industry, Innovation And Infrastructure

Digital Object Identifier (DOI)

• 10.1109/tem.2002.803390

start page

• 243

end page

• 257

volume

• 49

issue

• 3

URL

• http://dx.doi.org/10.1109/tem.2002.803390

user-defined tag

• 12 Responsible Consumption and Production
• 9 Industry, Innovation and Infrastructure