Abstract
Nowadays companies look more and more for improving their efficiency to excel in the market. At the same time, the competition has moved from firm level to whole supply chain level. Supply chain are very complex systems and lacks of coordination among their members leads to inefficiency. Supply chain planning task is to improve coordination among supply chain members. Which is the best planning solution to improve efficiency is an open issue. On the other hand, Lean approach is becoming more and more popular among managers. Lean approach is recognize as efficiency engine for production systems, but effects of Lean implementation out of single firm boundaries is not clear. This paper aims at providing a theoretical and practical starting point for Lean implementation in supply chain planning issue. To reach it, a DES simulation model of a three-echelon and multi-product supply chain has been set. Lean management is a very broad topic and this paper focuses on two principles of “pull” and “create the flow”. Kanban system and setup-time and batch-size reductions are implemented in the lean-configured supply chain to apply “pull” and “create the flow” respectively. Lean principles implementations have been analyzed and compared with other supply chain planning policies: EOQ and information sharing (Visibility). Supported by the simulation study, this paper points Lean supply chain planning is a competitive planning policies to increase efficiency.
Highlights
In In recent years, the competition is moved from firm vs firm to supply chain vs supply chain [1]
This paper investigates the impact of Lean implementation along a supply chain
The model used in the simulation study has been develop through a Discrete Event Simulation software (Rockwell Arena) and it is kept as basic as possible to avoid any noise that might cloud the sight on causes and effects
Summary
In In recent years, the competition is moved from firm vs firm to supply chain vs supply chain [1]. Competition continuously increases and pressures on the performances of the supply chain’s members: a great emphasis is given to efficiency and managers are looking for cost reduction everywhere in companies [2]. Main inefficiencies lead to excess of inventory, backlog orders, supply and transportation extra-costing along the chain [3]. Chain planning is one of the major tasks for optimizing production, inventory and transportation processes [4]. It is largely demonstrated that lean approach implementation leads to cost reductions, higher quality level and shorter delivery time in a company [5]. The purpose of this research work is to study which impacts has lean approach when implemented at a supply chain level. A simulation model of a multi-product and three-echelon supply chain has been implemented. The outcomes of simulation study are discussed in the Section 4
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