Impact of the integration of tactical supply chain planning determinants on performance

Abstract

In fulfilling customers’ orders, one of the goals of tactical supply chain planning is to satisfy the customers in terms of delivery efficiency, delivery quantity accuracy and on-time delivery. These performance objectives can be impacted by the way firms plan each of the three phases of the supply chain: procurement, production and distribution. Though the link between each of these phases and supply chain performance has been studied in extant literature, very few authors have considered all three phases at the same time. By adopting an integrated approach, this paper therefore aims to study the manner in which, taken together in one model, the planning determinants of the different phases impact on supply chain performance. It is important for managers to understand, from a holistic and integrated perspective, how a given combination of the planning determinants of the supply chain functions impacts positively or negatively on the performance of the supply chain. To carry out this study, this paper starts by proposing an integrated framework that is based on the SCOR model and the customer order decoupling point (CODP), followed by a five-step methodology for tactical supply chain planning. Then, using an analytical model and simulations, and based on a numerical example, it shows how the proposed methodology can be applied in a given decision-making situation. Our results enabled to identify the worst and the best combinations of planning determinants.