A network-based approach to integrated supply chain design

Abstract

The inherent complexity of supply chains, combined with their economic importance, has prompted research in supply chain management. While there has been a significant amount of work reported in modelling supply chains, the effectiveness of these models in addressing the complex area of supply chain management is questionable. What is giving added urgency to the need for research in this area are the recent developments in communications that offer the promise of connecting suppliers, assemblers and customers in a seamless network of information that can form integrated supply chain management. This paper aims to address the deficiency in modelling by proposing a methodology that models the integrated supply chain as an abstracted network, called a Trans-Net. The Trans-Net approach offers three main potential advantages. First, the multiple participants in a supply chain can be modelled without undue complexity. Second, it is an approach that allows users to examine the interactions between different considerations so that important attributes such as cost and lead-time can be readily calculated and bottleneck areas identified. Third, it applies a mathematical formalism to the problem, with the potential of being relatively straightforward to computerize.