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How to coordinate the uncoordinated Supply Chain? Case study approach   Abhijeet Ghadge M.Tech., IIT Kharapur INDIA
Co-ordination In Supply Chain  ,[object Object],[object Object]
Why Supply Chain Suffers? ,[object Object],[object Object]
Why Coordination is Important in SCM? ,[object Object],[object Object]
Kind of coordination involve in SC ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Solving SCM problems through coordination  ,[object Object],[object Object],[object Object],[object Object],[object Object]
1. Location Decision of Franchisees of One Organization
Location Decision of Franchisees of One Organization ,[object Object],[object Object],[object Object],[object Object],[object Object]
Example:  Location Decision of Franchisees ,[object Object],[object Object]
Example:  Location Decision of Franchisees ,[object Object],[object Object],[object Object]
Example:  Location Decision of Franchisees ,[object Object],[object Object],[object Object]
Example:  Location Decision of Franchisees MM 00 n customer MM 01 n customer MM 02 n  customer MM 04 n  customer MM 03 n  customer 4 Mile Beach with n customers on each clusters 1 Mile 2 Mile 3 Mile 4 Mile Franchisee 1 Franchisee 1 Case 1 : Franchisor choosing location for both Franchisees Case 2: Two Franchisees that control their own locations Franchisee 1 Franchisee 2
Two Franchisees whose locations are coordinated by Franchisor ,[object Object],[object Object]
Two Franchisees whose locations are coordinated by Franchisor ,[object Object],[object Object]
Two Franchisees whose locations are coordinated by Franchisor ,[object Object],[object Object]
Two Franchisees that control their own locations ,[object Object],[object Object],[object Object]
2. Warehouse Decision for Organization
Warehouse Decision for Organization ,[object Object],[object Object]
Example: Warehouse Decision for Organization ,[object Object],[object Object],[object Object]
Example: Warehouse Decision for Organization ,[object Object],[object Object],[object Object],[object Object],[object Object]
Economic Order Quantity Costs ,[object Object],[object Object]
Economic Order Quantity Costs ,[object Object],[object Object],In this condition supplier combine the whole demand instead of single client demand.
Economic Order Quantity Costs ,[object Object],EOQ of Distributed SC EOQ of Coordinated SC
Numerical Example: Economic Order Quantity Costs ,[object Object],Solving as  Saving   %=(1- √N/N)*100 =(1-  √7/7)*100 =(1-0.3779)*100 =62.20% Number of Clients Cost Saving % 2 29.29 3 42.26 4 50.00 5 55.28 6 59.18 7 62.20 8 64.64 9 66.67 10 68.38 Number of Clients Cost Saving % 11 69.85 12 71.13 20 77.64 25 80.00 40 84.42 50 85.86 100 90.00 1000 96.84 2500 98.00
Risk pooling benefits in Centralized Warehousing: Newsvendor Environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Risk pooling benefits in Centralized Warehousing: Newsvendor Environment ,[object Object],[object Object],[object Object],[object Object]
Risk pooling benefits in Centralized Warehousing: Safety Stock & Service Level ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Risk pooling benefits in Centralized Warehousing: Safety Stock & Service Level ,[object Object],[object Object],Standard deviation in distributed SC Standard deviation in coordinated SC
Numerical Example: Cycle Service Level Z new Service levels from Z table Number of Clients 70.00% Z old  = 0.5244 80.00% Z old  =0.8416 90.00% Z old  =1.2816 2 77.08% 88.30% 96.50% 3 81.81% 92.75% 98.68% 4 85.29% 95.38% 99.48% 5 87.95% 97.01% 99.79% 6 90.05% 98.04% 99.92% 7 91.73% 98.70% 99.97% 8 93.10% 99.14% 99.99% 9 94.22% 99.42% 99.99% 10 95.14% 99.61% 100.00% 15 97.51% 99.94% 100.00% 25 99.56% 100.00% 100.00% 50 99.99% 100.00% 100.00% 100 100.00% 100.00% 100.00%
3. Demand Forecasting in Supply Chain
Coordinated Demand Forecasting ,[object Object],[object Object],[object Object]
Example: Coordinated Demand Forecasting Wholesaler and Retailer work individually without sharing any information   Table 1 Next period Forecast=Current consumer’s Demand
Example: Coordinated Demand Forecasting Wholesaler and Retailer sharing consumer’s demand information   Table 2
Example: Coordinated Demand Forecasting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Example: Coordinated Demand Forecasting
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Example: Coordinated Demand Forecasting
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Example: Coordinated Demand Forecasting
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Example: Coordinated Demand Forecasting
Example: Coordinated Demand Forecasting ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Example: Coordinated Demand Forecasting
4. Product Pricing and Marginal cost Problem between Suppliers and Retailers
Coordinated Pricing ,[object Object],[object Object],[object Object]
Coordinated Pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case 1: A System with One Retailer and One Supplier ,[object Object],[object Object],[object Object]
Case 1: A System with One Retailer and One Supplier ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case 1: A System with One Retailer and One Supplier ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Case 1: A System with One Retailer and One Supplier
Case 1: A System with One Retailer and One Supplier ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object],[object Object],[object Object]
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object]
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object],[object Object]
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object],[object Object],[object Object],[object Object]
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object]
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object]
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object],[object Object],Price Set by m th  Firm
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],System contain One Retailer and N-1 Suppliers therefore P N+1 =0
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object],P m+1 =  P m P m+1
Case 2: A System with One Retailer and N-1 Supplier ,[object Object]
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object],Multiplying by 4 in numerator & denominator
[object Object],[object Object],Case 2: A System with One Retailer and N-1 Supplier
Case 2: A System with One Retailer and N-1 Supplier ,[object Object],[object Object]
5.  Identifying right sourcing contract for products (brief overview of different contracts)
Contracts ..a powerful tool ,[object Object],[object Object],[object Object],[object Object],[object Object]
Factors in selecting and negotiating the contract type ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sourcing Contracts in Supply Chain ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Buyback Contract ,[object Object],[object Object],[object Object],[object Object]
Major results of Buyback Contracts ,[object Object],[object Object],[object Object],[object Object]
Quantity Flexibility (QF) Contract ,[object Object],[object Object],[object Object],[object Object],[object Object]
Major results of QF Contract ,[object Object],[object Object],[object Object],[object Object]
Revenue-Sharing Contract ,[object Object],[object Object],[object Object],[object Object],[object Object]
Major results of RS Contract ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cost sharing contract ,[object Object],[object Object],[object Object],[object Object]
Portfolio contract ,[object Object],[object Object],[object Object]
Summary ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]

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How to Coordinate The Uncoordinated Supply Chain Case Study Approach

  • 1. How to coordinate the uncoordinated Supply Chain? Case study approach Abhijeet Ghadge M.Tech., IIT Kharapur INDIA
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  • 7. 1. Location Decision of Franchisees of One Organization
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  • 12. Example: Location Decision of Franchisees MM 00 n customer MM 01 n customer MM 02 n customer MM 04 n customer MM 03 n customer 4 Mile Beach with n customers on each clusters 1 Mile 2 Mile 3 Mile 4 Mile Franchisee 1 Franchisee 1 Case 1 : Franchisor choosing location for both Franchisees Case 2: Two Franchisees that control their own locations Franchisee 1 Franchisee 2
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  • 17. 2. Warehouse Decision for Organization
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  • 29. Numerical Example: Cycle Service Level Z new Service levels from Z table Number of Clients 70.00% Z old = 0.5244 80.00% Z old =0.8416 90.00% Z old =1.2816 2 77.08% 88.30% 96.50% 3 81.81% 92.75% 98.68% 4 85.29% 95.38% 99.48% 5 87.95% 97.01% 99.79% 6 90.05% 98.04% 99.92% 7 91.73% 98.70% 99.97% 8 93.10% 99.14% 99.99% 9 94.22% 99.42% 99.99% 10 95.14% 99.61% 100.00% 15 97.51% 99.94% 100.00% 25 99.56% 100.00% 100.00% 50 99.99% 100.00% 100.00% 100 100.00% 100.00% 100.00%
  • 30. 3. Demand Forecasting in Supply Chain
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  • 32. Example: Coordinated Demand Forecasting Wholesaler and Retailer work individually without sharing any information Table 1 Next period Forecast=Current consumer’s Demand
  • 33. Example: Coordinated Demand Forecasting Wholesaler and Retailer sharing consumer’s demand information Table 2
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  • 41. 4. Product Pricing and Marginal cost Problem between Suppliers and Retailers
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  • 62. 5. Identifying right sourcing contract for products (brief overview of different contracts)
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Notas del editor

  1. Where all values taken from previous equations