An integrated supply chain model with dynamic flow and replenishment requirements

Abstract

Integration and coordination of the informational and logistical functions of the supply chain have the potential to increase a company's competitiveness. In this paper, an integrated supply chain framework is developed that considers three main dimensions of information: customer demand, transportation, and inventory data. These dynamic supply chain data are integrated in an algorithm capable of producing high-quality, minimal cost solutions for the integrated supply chain system. The integrated supply chain model's primary goal is to react effectively and quickly to supply chain disruptions and changes, thereby adding unique flexibility to current supply chain decision support systems. The performance of the proposed algorithm is tested in a dynamic environment by embedding it in the decision-making framework of a supply chain simulation model. Model results demonstrate the algorithm's ability both to improve system performance and to reduce total supply chain costs.