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A multi-period and multi-product optimizer for cooperative supply chains

Sepehri, M ; Sharif University of Technology | 2012

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  1. Type of Document: Article
  2. Publisher: 2012
  3. Abstract:
  4. Members in a traditional supply chain compete to reduce their individual costs. But total cost is minimized in a cooperative, or a corporate managed, supply chain. A lower average cost and a lower cost variation are achieved by cooperative individual members in the long-run. The problem is formulated and solved as an integrated flow network. Previous research is expanded to include multi-period and multi-product cooperative supply chain with possibility of holding inventory in a multi-stage, multi-member setup. A Cooperative Supply Optimizer System (CSOS), a software-based coordination mechanism, is developed for large chains. It gathers operational information from members of the supply chain, and then guides them on ordering decisions for a minimum cost of the entire supply chain. Simulation results indicate an approximately 26% reduction in total supply chain costs, utilizing this formulation over a competitive setup. As the holding costs increase, the problem decomposes into single period (Just-in-time) again. The disturbing bullwhip effect disappears in cooperative supply chains
  5. Keywords:
  7. Source: South African Journal of Business Management ; Volume 43, Issue 1 , 2012 , Pages 77-92 ; 03789098 (ISSN)
  8. URL: http://reference.sabinet.co.za/sa_epublication_article/busman_v43_n1_a7