Abstract
The business world changes rapidly and customers’ demands are more varied than before, traditional push system which takes actions based on anticipated requirements and uses forecast to determine the manufacturing quantity is no longer effective enough for modeling market volatility. Therefore, the pull strategy, which is demand oriented, flexible and generates cost savings, is becoming more popular and prominent. The pull type supply chain management is also applied broadly in the high-tech industry where the market volatility is a very unique characteristic. In SCM, nonstructured oral communications make information sharing difficult and inefficient in a distributed environment. To solve this problem, Agent Technology (AT) is applied. AT in Business Intelligence (BI) has been proven that it is good tool in solving communication problems in distributed environments. This research focuses on the application of the make-to-plan (MTP) supply chain strategy and AT based technique. A case study of simulation of the MTP-based pull type supply chain is presented. Impacts of operator parameters, e.g., manufacturing throughput, forecast accuracy, and inventory on performance of the pull type control strategies are discussed in this study.
Highlights
The essentials of Supply Chain Management (SCM) is a set of practices aimed at managing and coordinating the Supply Chain (SC) from raw material suppliers to the ultimate customer [1]
This study looks into a three-echelon supply chain with one product item which comprises final manufacturers, distribution centers, and retailers
All simulation scenarios are compared with the current status, which is defined as a “Baseline” (Case B-0), without launching the agent technology
Summary
The essentials of Supply Chain Management (SCM) is a set of practices aimed at managing and coordinating the Supply Chain (SC) from raw material suppliers to the ultimate customer [1]. The pull type supply chain management is applied broadly in the high-tech industry where the market volatility is a very unique characteristic. Companies such as Dell, HP, IBM, and Philips are attempting to adapt this type of the SC model to respond to the agile business world [4]. Few literatures are focused on MTP study, the impacts of operation parameters in SCM, e.g., throughput, forecast accuracy, demand variability management, and safety level stock to on the performance of a SC to take advantages of the pull type control strategy.
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