A Taxonomy for Supply Chain Management Literature
Ismail Capar* Fusun Ulengin** Arnold Reisman^ . **Istanbul Technical University, Istanbul, Turkey ^ Reisman and Associates, Shaker Heights, OH. USA * Mississippi State University, MS, USA ^ Corresponding author, firstname.lastname@example.org 6 April 2004
This paper presents a scheme for classifying the Supply Chain Management (SCM) literature. SCM is broadly defined to include all classical business functions and theoretic management disciplines which impacted this emerging field. Consequently, its literature is very disjoint and disparate. It transcends several academic disciplines and professions. This paper presents a way to define the field in its entirety and delineate all of its facets in a manner that is parsimonious yet discriminating. Sample articles are classified to illustrate the descriptive power and parsimony of this taxonomy and a number of previously published SCM taxonomies are shown to be special cases thereof.
Key words: Supply Chain Management, SCM, Taxonomy, Classification
-1Electronic copy available at: http://ssrn.com/abstract=531902
A Taxonomy for Supply Chain Management Literature
1. Introduction Supply chain management (SCM), in general, is a synthesis of what was previously considered to be management of a number of separable business functions on the one hand, and several relatively independent theoretic domains on the other. Among others these domains include; purchasing, inbound/outbound logistics, inventory control, contracting, manufacturing/outsourcing, performance/efficiency theory, relationship management, information systems, systems theory, mathematical and computer modelling, optimization etc. SCM content articles appear in rather disparate journals ranging from Management Science to Industrial Marketing Management. Consequently, its literature is very disjoint. Hence this paper is an attempt at a synthesis to show how the threads or strains and weaving patterns of the various contributions fit together as part of the total tapestry. 2.SCM Literature 2.1 Epistemology of SCM The literature of SCM has exploded during the last decade. It has become a major subtopic of production and operations management. Although today, SCM encompasses all activities involved in producing and delivering a final product or service, from the various sub-tiers to end-customers, its theoretic framework emanated from multi-echelon inventory models (Clark and Scarf 1960). Several trends in logistics management have emerged subsequently. Each of these broadened while improving the focus of the previous. The notion of cost-cost tradeoffs was introduced showing that the lowest total cost might not be achieved by pursuing the lowest cost of each logistics process constituent. Hence, the concept of logistics integration was introduced by Bowersox (1969). In their practices, many companies recognized the fact that in optimizing logistics costs it was compulsory to include all relevant sub-tiers inside and outside of the firm, in terms of physical and information flows. These include all suppliers, and the entire distribution network. The challenge for logistics managers became to integrate logistical performance across all operating facets of a business. Meanwhile,
-2Electronic copy available at: http://ssrn.com/abstract=531902
decline. Revelle and Laporte 1996). Bessler and Veinott 1966. the following OR/MS and Operations Management subfields impact SCM: (i) multi echelon inventory models (Clark and Scarf 1960. and growing variation in a supply chain which is known as “bullwhip effect” (Lee et al. 1997). Beamon 1998. and information technology. 1999).
There are also some exemplary contributions to the SCM literature from outside the traditional OR/MS industrial engineering fields. Lee and Moinzadeh 1987a and 1987b). marketing. Cooper and Ellram (1993). (iii) performance measurement (Harper 1984. 1997. (ii) location models (Cohen and Lee 1988. operations management. Burns et al. 1985. Basu 2001. Rolstadås 1995. 1990. Zinn and
. (iv) inventory and distribution (Federgruen and Zipkin 1984. and Thomas and Griffin (1996) started to introduce and implement the SCM concept. Chen 1998. Blumenfeld et al. 1962. Among these are: (i) Forrester (1961) contributed to the SCM literature from the economics and system dynamics point of view. Lee and Billington (1993). Contributing to the SCM literature today. Graves 1985. Miller 2001. Bowersox and Closs 1996. Chen and Zheng 1994. Chan and Simchi-Levi 1998). are knowledge domains such as operations research (OR). economics. 1988). (ii) Cachon and Zipkin (1999) applied the Nash equilibrium for competitive inventory policies in a two-stage supply chain. system dynamics. Erkip et al. He analysed the growth. (iii) Postponement (Alderson 1950). management science (MS). Among others. 1985. Today postponement is widely used in inventory control and production system (Jones and Riley 1984.researchers such as Houlihan (1985. Geoffrion and Graves 1974.
Levy 1988. (iv) (v) (vi) Price incentives (Blattberg et al 1981).
2. During the last five complete years of record the literature accumulated 4.2 SCM literature growth The accumulation of SCM articles listed on the PROQUEST and ELSEVIER databases as of end June 2003 is shown in Figure 1. In the first half of 2003.5 times the number of articles published up to and including 1997.
3000 2471 2809
2000 1558 1500 1162 1000 773 446
0 ?. Zinn and Bowersox 1988.1997 1998 1999 2000 2001 2002 2003
Figure 1: Number of SCM articles published in refereed journals
. Social responsibility (Carter and Jennings 2002). the number of published articles exceeded 70% of those published in throughout 2002. Relationship management (Pyke and Johnson 2002). Aviv and Federgruen 2001). Lee and Billington 1995.
2. Need for a SCM Taxonomy: A Discussion As important as it is to publish the results or findings of good research in a given field of knowledge it is also important to systematically review the totality of such publications on some periodic basis (Goffman 1980. The above two modes are not mutually exclusive. recall. to teach. In fact they are complimentary. Several well known and rather disparate papers were used to calibrate both the taxonomy and the respective classifiers’ – authors of this paper .judgments. The objectives of this MR are to unify the domain of SCM knowledge and or to expand or generalize it while at the same time consolidating this field of knowledge and practice. as was the case with the Periodic Table of Chemical Elements (Mendeleev 1889). to learn. Abbott 1988. an underlying theory is imbedded within a taxonomy and such is the case with SCM. sorting.
. Section 5 illustrates this classification. to communicate. and Gupta 1997). To efficiently and effectively classify any and all contributions/ for purposes of storage. Systematic reviews of the literature represent research on research or what is sometimes called meta research (MR).3 Paper organization Section 3 of this paper discusses the need for a taxonomy at this stage of SCM literature development and taxonomies in general. A taxonomy for a given field of knowledge displays the field’s domain in terms that are easy to understand. There are at least two efficient and effective ways of consolidating knowledge in a given field.
3. Section 7 offers some concluding remarks. and succinctly shows each to be a special case (a subset of the literature) of the taxonomy provided in this paper. One of these is to create a taxonomy and the other is to create a generalized framework (a general model or theory) that subsumes all existing models facts or theories within the field. Section 6 provides abstracts of most if not all previously published SCM taxonomies. At times. and or statistical analyses and because such classification results are meaningfully machine readable they in turn clearly enable further meta research publications (Reisman 1992). and to work with. Section 4 provides a taxonomy that can be used to classify any and all contributions to the literature of SCM. The taxonomy can be used: 1.
and it is also an end itself. commonplace. to be considered effective. potential
This number represents only that part of the SCM literature that appears on the PROQUEST and ELSEVIER databases
. efficient and effective teaching/learning and recall for usage of knowledge but it is also a neat way of pointing to knowledge expansion and building. reasonably distinct. to the design of the yet unavailable. Hence there is a need for an SCM taxonomy which:
Graphically. Thus. to be effective. The categories should be reasonably if not mutually exclusive. It is a means toward a more efficient and more effective processes of research leading to the yet unknown. It identifies voids. 1994. Obviously. comprehensiveness is a necessary condition for effectiveness. It is.
The evolution of SCM from the early articles of Clark and Scarf (1960) up to and including June 2003 shows at least 2909 articles1. not sufficient. i. the taxonomy should be robust and generally useful. It will provide a framework by which all of the existing knowledge can be systematically filed and therefore recalled efficiently and effectively.e.a picture of the territory. It should not include unnecessary categories. Finally.2... (Vogel and Weterbe 1984)
A taxonomy is not only a tool for systematic storage. It is a means toward the end of more efficient and more effective teaching and learning of new or existing knowledge. a taxonomy must represent the full spectrum of the research chosen for categorization. a taxonomy should be parsimonious. By providing what amounts to an aerial view. Knowledge consolidation is a means to various ends. will vividly display the similarities and the differences among the various contributions. and descriptive to allow utilization by a wide variety of interested persons.it will identify the voids in the literature. meaningful. thus demonstrating the relationship of all contributions and the practical applications of each to other. it does so in a most efficient and effective manner. however..
The key to taxonomy effectiveness rests on criteria of comprehensiveness. and 1992). symbolically or both. Significantly. Classification of papers based on a taxonomy makes similarities and differences among the respective studies very clear. parsimony and usefulness. To further be effective. It is a means toward the end of more efficient storage and more effective recall and/or retention of knowledge. Consequently. and it is a means toward more efficient problem solving… (Reisman 1979)
Morever. non-overlapping. To identify voids in the literature and hence directions/specifications for research in need of being performed publications (Reisman 1988. the time is now ripe for a general mapping of this literature in a manner that will vividly provide a panoramic view of what exists and will clearly identify any existing gaps in the state of the art as suggested by Reisman (1989. 1989) 3.
With the PTE as a role model.
. typically requires much effort. As in the case of the greatest and best-known taxonomies.theoretical increments or developments and potential applications for the existing theory. This is amply demonstrated in Reisman (1992). To be sure some of those void “cells” have a greater research interest than others. Though this makes its application cumbersome. the cells remaining empty will vividly show the voids in the literature. it is easy to aggregate sub-classifications and/or pruning outer branches. it does increase its descriptive powers. SCM has already generated a large enough literature allowing it to be considered as a separate and distinct field of knowledge. they (the empty cells) will all create a full set of specifications for the researcher to pursue. The current attempt to define a taxonomy for SCM may have its own disadvantages but it does not suffer from ambiguity. The PTE has always indicated cells which described with great efficiency elements yet to be discovered.. as illustrated in Figure 2. The taxonomy proceeds in an arborescent way (Reisman 1992). on the other hand. (Mendeleev 1889). only a sample of the extant papers are classified then the probability that a void identified is truly so increases with the sample’s richness and representativeness. Thus if and when the SCM taxonomy is used to classify the entire set of extant articles. If. e. The increasing interest in SCM as an alternative tool for performance measurement makes a systematic elaboration of this field more crucial in helping researchers on-board as well as in attracting potential newcomers to the field. however. In fact.g. The authors are open to suggestions. the Periodic Table of Elements (PTE). Alternately stated. Moreover. The inverse. one can discuss the usage of a taxonomy to knowledge building. having to deaggregate classifications once made. the classification developed in this study is open to expansion as the scope of SCM enlarges. it may be too detailed in terms of branching levels. the schema presented herein must evolve to reflect any modifications to the boundaries of SCM’s universe.
Because this key addresses the very essence of supply chains e. production. product properties. transportation. Surveys or literature reviews are provided for as well.g. Key 3: Supply Chain Activities. In the proposed taxonomy. the SC activities addressed. the structure of the SC involved. Under each of these factors. Key 2: Supply Chain Environment. The first sub-key specifies its structure and the second key its stability or variability. each contribution can be given an identification code based on several uniquely defined domains within each of the above six classes or keys for classification: Key 1: Type of Study. complexity and solution methodology. the type of study reported on. the most discriminating attributes are listed. an advance to theory is presented along with its real world application. sourcing and procurement.Figure 2: Attribute Vector Description Based Taxonomy
4. Because the SCM literature involves a diversity modeling methodologies the last domain describes the nature of the model. decision making and degree of information sharing. it is by far the most extensive and detailed. These domains classify the paper considered according to its general characteristics. The full taxonomy is illustrated in Figure 2.
. This is subdivided into five domains. These include extensions to theory. performance measurement. and return and after-sales.. A Taxonomy for SCM The SCM related literature is first classified based on six basic factors. or as is some times the case.. an application of theory. and the efficiency measure used. pricing.g. inventory management. This is subdivided into two domains characterizing the SC involved. This is subdivided into nine domains identifying the different SC activities e. its variety of operations. and solving procedures used.
Theoretic Applied 2. 22.214.171.124. 5.1. production strategy.1. Efficiency Measures Provided by the Solution. This is subdivided into two domains identifying SC decision making processes and degrees of information sharing.1. Heuristic method. 5.1. life cycle.126.96.36.199. 5. number(s) and relationships. 5. Convex non-linear model.2. Meta-heuristic method. product classification. Using synthetic numbers Mixed theoretic and applied Surveys. 5.3. 4.1. Dynamic programming model 5.2. 5. 5. Convex linear model 188.8.131.52.1.2.3. Fuzzy linear programming model. 5. Mathematical model 5.3. Ratio Form.3.1. Multi-valued measures.1. 5.3. Bench marking 2.2.3. 5. Approximated method. and packaging and handling.3. priority of delivery. 5. Type of Model 5. Exact multi-valued measures
3.2. Case studies 184.108.40.206.6.2.3. 5. Single stage solving method.1. Heuristic method. demand patterns.1.2.2. 5. Convexity of Model 5. 220.127.116.11.3. status. Discrete or mixed linear programming model.3. Multi-stage.2.4. Graphical presentation 18.104.22.168.2.2.3. 22.214.171.124. These are. 5.2.1. Approximated method. Mixed model 5.2.1. and Literature Reviews Modeling 126.96.36.199.4. Real world data based 2.2.2. Type of Study
1.2. Single-valued measures. 5.1. Graphical presentation 5. 188.8.131.52. Graphical 5.5.1. 184.108.40.206.3.2.4. Meta-heuristic method.4. Key 5: Product Properties This key is subdivided into eight product(s) related domains.3. Exact method explicitly presented. 5. Non-polynomial hard problem 5. Exact method explicitly presented.220.127.116.11. Polynomial hard problem.1. Linear programming model.2. 5.2.2. 5. Non-convex linear model. Solving Procedure 5. 5. Chance constrained or stochastic linear programming model.2.2. Simulation model 5.Key 4: Decision Making and Degree of Information Sharing.
.3. No solving method proposed or standard method is used.1. 5. Non-convex non-linear model.
2. Product mix at stocking points 3. Variable but predictable 2. Product Design for Manufacture and Distribution 2. Stochastic single-valued measures 5. Inventory control policies 3. Production and Capacity Planning 2. Crossdocking 3. Forecasting 3. Sequencing and Scheduling Inventory Management 3. Transportation Modality 4.4.4. Type.2.2.6.
.1. Type. Sea 18.104.22.168. Stock-keeping unit (SKU) storage 3. size. Make or Buy Decision 22.214.171.124.2. Purchase Timing and Quantities 1.3.
126.96.36.199.2.1. one member at each stage) 1.4.2. Two stage SC 1. Number.3.1.
Supply Chain Activities
1.3. number.1. Air 4. One Vendor. One Buyer 1. Truck 4.4. Geographic Characteristics 4. and Layout of Production Points 2.10 -
.6. Job-lot storage 3.3.6. Periodic Review Models 3.
4.2.1. Supply Source Selection 1.2.2. Intercity transportation 4.1. Fuzzy multi-valued measures 5.3. Causal Forecasting Methods 188.8.131.52.184.108.40.206. Time Series forecasting methods 3.2.5. Size.1. Network SC (multiple stages (more than two). Fixed 2.1. Structure of SC 1.2. Multiple Vendors.1.2. Simulation forecasting methods Transportation and Delivery 220.127.116.11. Continuous Review Models 3. Uncertain
2. Supplier Evaluation Production 2. One Vendor. Multiple Vendors. One buyer 1.1.4. at least one of the stage has more than one member) Stability of Supply Chain 2. Process Design 18.104.22.168.5.3.4. Serial SC (n stages (more than two).1. Multiple Buyers 1.5.1. Product Mix Selection 2. Location. How much inventory to produce/order 3. Multiple Buyers 1.1. Storage Policies 22.214.171.124.2. Sourcing / Procurement 1.2. Qualitative forecasting methods 3.3. Stochastic multi-valued measures
Supply Chain Environment
1. Intercountry transportation 126.96.36.199. Stochastic measures 5.1. and location of stocking points 3.
2. Location 4.2.1. Number of Points of Origin 4.1. Reusable parts 5.5. Vehicle-Carrier routing 4.1. Serviceable/repairable products 5.4. FedEx. Recall Campaign 5. Capacitated vehicles 4.5. Obsolete products 5. Precedence constraints 4.3.11. Scheduling and managing the individual return
.5.5. Capacity Consideration 4.3. Reverse Logistics 188.8.131.52.5. Similar vehicles 4. Picking and Packing 184.108.40.206.2.Distance/Cost Properties 4.4.3. Linear cost 4.1. Neglected 220.127.116.11. Spare parts inventory management 18.104.22.168.22.214.171.124.126.96.36.199. Neglected 188.8.131.52. One way 4. and Carrier Service Selection 184.108.40.206.5.1.5. Intermodal transport 4. Nonlinear cost 4.2.5. Time Window 220.127.116.11.5. Transportation Cost 4. Uncapacitated vehicles 18.104.22.168. Claim processing 22.214.171.124.2. Single origin 4. Freight Consolidation and Load Building 4.2. Multiple origin 4.6.1. Lane 126.96.36.199.2.5. Transportation time 4.1. Carrier Type.6.11.4. Fixed cost plus nonlinear transportation cost 188.8.131.52.5.5.5. Excess inventory 5.1.2. Return shipment 184.108.40.206. Single vehicle 4. Return / After Sales 220.127.116.11.5. Carrier.18.104.22.168.5. Coupling constraints 4. Fixed cost plus linear transportation cost 4.6.g.2. Trip Type 4.5. Asymmetric 22.214.171.124.126.96.36.199.1. Unsplitting of load 188.8.131.52.Other Properties 4.5. Pipeline 184.108.40.206.5.5. Multi vehicle 4.4.5. Symmetric 220.127.116.11.3. Backhauls 4. Number of Vehicles 18.104.22.168. Defective product shipment 22.214.171.124. Load Splitting Constraint 126.96.36.199 -
. Package carriers (e. Changes with respect to distance 4.2. Vehicle Homogeneity (Capacity) 4.5. Splitting of load 4.4. Precedence/Coupling Constraint 4. Different vehicles 4.11. Round trip 4. Mode 4. UPS) 188.8.131.52.1.2.
Types of Technologies 184.108.40.206.1. Information sharing 9. Relationship with Environment Technology and Information Management 9.3.1. Product Classification 1. Manufacturing management 220.127.116.11.1.
7. EDI 18.104.22.168.Buyer Relationship 8.1.
Decision Making and Degree of Information Sharing
1. Demand Data Collection 9.2. Uncoordinated 1. Balanced Scorecard Based Approaches 7.1. Rebates and price discounts 6. Durable Goods 1.1. Incentives Performance Measurement 22.214.171.124.1.1.2. Risk & Benefit Sharing 8.1.2. Integration Management 8.1.1. Coordinated 1.3. Supplier.6.
1. Decision Making 126.96.36.199. Strategic alliances / partnership / collaboration 188.8.131.52.1.3. Customer satisfaction related measures Relationship Management 8. Durability and Tangibility 1. Negotiation 8.1.6. Buyer 184.108.40.206.1.2. Orders processing 9. Centralized 220.127.116.11. Other Performance Measures 18.104.22.168.12 -
.5. Decentralized 6. Quantity discounts 22.214.171.124.
Pricing and Incentives 6.3.1. Vendor 1. Full information sharing
2. Financial measures 7. Conflict resolution 8.1. Supplier Development 8. Collaborative decision making Information sharing 2.1. Information not shared 126.96.36.199.1.4. Pricing 6. Distribution and retailing management 9. Perishable/Dated Goods
. Areas of IT Usage 9.3. Contract management 8.2.3. Partial information sharing 2.
9.2. Customer Relationship Management 8. SCOR Based Approaches 7.1. Buyer – Supplier Coordination 8. Other ITs used for increasing SC competitiveness
188.8.131.52.1.3. Operational performance measures 7. Decision Maker 1. Decision Type 1. Internet 9.
Bulk 8. require little selling. Illustrative classifications:
Convenience Product – Consumer products are products a consumer needs but isn’t willing to spend much time or effort shopping for.1.4.1.
7. Manufactured Materials 1. Non-Stationary 2.
. Shopping goods 1.3. Multi Product Independent Demand 3. WIP and Subassemblies 184.108.40.206.3. Regular Priority Goods 7.13 -
.2. Unsought goods 1.6. Specialty goods 1.2.
3.2. High Priority Goods 7.4. Engineer to Order Product Status 6.1. Container 8.5.3. Not Prioritized Packaging and Handling 8. Consumer Goods2 220.127.116.11.
8. and even be bought by habit. Shopping Product – Shopping product are products that customer feels are worth the time and effort to compare with competing products.18.104.22.168.Refrigerated Goods
Figure 3: A Taxonomy of Supply Chain Management Literature 5.4.2. Specialty Product – Speciality products are consumer products that the customer really wants and is willing to make a special effort to find.22.214.171.124. Pipeline Inventory Delivery Priority 7. Maturity Stage 4. Stochastic 2.2. Make to Stock 5.4.3. Finished Goods 6.1. Stationary 2.4. Introductory Stage 4.2.1. MRO Products 6. Accessories Demand 2.2.
4. Convenience goods 1.3. Decline Stage Production Strategy 5.2. Make to Order 5. Spare Parts 126.96.36.199.
6. don’t cost much.
5. Supplies 1.1. These products are bought often.1. Special Handling Required 8.2. Growth Stage 4.4. Innovative Products 1.4. Deterministic Product Numbers and Relationships 3.3.Hazardous Material 8.2. Functional Products 1.4. Boxed 8. Multi Product Dependent Demand Product Life Cycle 4.3. Raw Materials 1. Product 1. Single Product 3.3.1. Raw Materials 6.3. Industrial Goods 1.
separable functions of the control parameters.1) (3. it is not clear how one can quantify the benefits of these initiatives and how one can identify the drivers of the magnitudes of these benefits.
Exhibit 2. This is achieved in two steps.g.14 -
. A numerical study suggests that the heuristic solutions are easy to
Unsought Product – Unsought products are products that potential customers don’t yet want or know they can buy (McCarthy and Perreault.1. Management Science Vol 46 No: 5.2.2. Christopher S.2/9. to obtain heuristic solutions. Using analytical models.1.2.2. by using a group of articles known to represent rather different approaches to and addressing different issues of SCM.5/5. the authors tested the taxonomy of Figure 3 for robustness. Second. First.5/9. (). Kut C.
NEAR-OPTIMAL ECHELON-STOCK (R. this paper aims at addressing these questions for a simple two-level supply chain with nonstationary end demands. The model used for the problem is a stochastic model with an approximate solution and the results are compared based on inventory and cost reductions. Demand faced by the retailer is correlated over a time horizon and each member uses the periodic inventory review policy.1/1.2) (2.. This means that the paper does not address or involve that key’s attributes. we minimize the bounds.At the outset. Tang
Many companies have embarked on initiatives that enable more demand information sharing between retailers and their upstream suppliers.2/2.1.nQ) policies in a multistage. serial inventory system with compound Poisson demand.and under-charging a penalty cost to each upstream stage for holding inadequate stock. Hence. Our analysis suggests that the value of demand information sharing can be quite high. We provide a simple method for determining near-optimal control parameters. So. Exhibit 1. While the literature on such initiatives in the business press is proliferating.4. we establish lower and upper bounds on the cost function by over. 2000
Using mathematical modelling this article investigates the value of (demand) information sharing in a bi-level SC using EDI technology. and ability to discriminate in a parsimonious manner. Lee. which are simple.2) (1.1/2.1) (1. We also provide an algorithm that guarantees an optimal solution at the expense of additional computational effort. 1990)
In applying the above taxonomy to classify a specific document some keys may remain empty e. The articles used for that purpose are identified below as Exhibits 1-6 along with a paragraph providing a rationale for the classification indicated3.2/5.1.1/5.3. Yu-Sheng Zheng
We study echelon-stock (R.2. nQ) POLICIES IN MULTISTAGE SERIAL SYSTEMS
Fangruo Chen.2. especially when demands are significantly correlated over time. The authors compare the effect of information sharing on buyer-vendor decisions. the paper is classified as:
The Value of Information Sharing in a Two-Level Supply Chain
identically distributed demands. It is a dynamic programming model solved with existing methods.3) (2.2/6.4. 1998
A serial supply chain is mathematically modeled to determine (Q. Thus its classification based on Figure 3 as:
(5. and pipeline inventories are managed with a periodic inventory review policy.2. WIP. However.3/5.
Optimizing Strategic Safety Stock Placement in Supply Chains
Stephen C. Sean P. The authors offer a coordinated decision making strategy for overall supply chain in a full demand information-sharing environment. and that there is a guaranteed service time between every stage and its customers. and determine component inventories. We discuss how these flow teams have used the model to reduce finished goods inventory.1) (1. The efficiency measure is a single-valued exact solution. that demand is bounded. 1.1. Our assumptions allow us to capture the stochastic nature of the problem and formulate it as a deterministic optimization.1/5.1)
Exhibit 3. Operations Research Vol.compute (even for systems with many stages) and are close to optimal.3. Manufacturing & Service Operations Management Vol.1.1. We develop an optimization algorithm for the placement of strategic safety stock for supply chains that can be modeled as spanning trees. In addition.2) (3. which uses approximation and heuristics.2) (1.1. Hence.3. in complex supply chains. R) values for a continuous inventory review system with Poisson end-item demand.3/5. They present a stochastic model solved by a multi stage algorithm. it is not always obvious where to hold safety stock to minimize inventory costs and provide a high level of service to the final customer.1.1/3.2. 46. Key assumptions are that we can model the supply chain as a network. that each stage in the supply chain operates with a periodic-review base-stock policy. As a partial validation of the model.1/5. No. It also suggests that a traditional approach for determining the order quantities can be seriously suboptimal.5/5.3. they present an exact solution methodology. All the results can be easily extended to the discrete-time case with independent. Graves.3) (3.1/5.2.
.1/2.3) (1. No.2.1. In this paper we develop a framework for modeling strategic safety stock in a supply chain that is subject to demand or forecast uncertainty.5. target cycle time reduction efforts.2.2. subassemblies. We conclude with a list of needs to enhance the utility of the model.1) (1. Willems
Manufacturing managers face increasing pressure to reduce inventories across the supply chain. we describe its successful application by product flow teams at Eastman Kodak.1/3. 2000
This article presents a mathematical formula for determining how much inventory should be kept in each stage and member of a complex supply chain with an application at Eastman Kodak.4. All information is presumed known by the central decision maker who makes a coordinated decision.2) (1.2/6.
Management Science Vol 46. known as the bullwhip effect. Jennifer K. automated warehousing.3/3. They determine how much inventory should be kept based on a time series forecasting method. and product properties which can be applied to all SC structures. Moreover. Lead Times. And new concepts such as quick response. and pricing.3. Electronic data interchanges lets all stages of the chain hear that voice and react to it by using flexible manufacturing.1/6. and agile manufacturing offer models for applying the new technology to improve performance. Ryan. Harvard Business Review March – April 1997
This paper classifies SC strategies and relationships among operational performance. one buyer and a serial supply chain. Its classification is:
(1/3/4) ( ) (2. No. are compared resulting in a ratio-form model. accurate response.3. Our model includes two of the factors commonly assumed to cause the bullwhip effect: demand forecasting and order lead times.
What is the Right Supply Chain for Your Product
Never has so much technology and brainpower been applied to improving supply chain performance.
. Zvi Drezner. lean manufacturing. but not completely eliminated.2)
Exhibit 5.2. and Information
Frank Chen. and rapid logistics.1/1. base stock continuous inventory control application. customer satisfaction related performance measures. the author shares the experience of different cases and classifies the products as either functional or innovative. In this paper we quantify this effect for simple.3) ( ) (1. 2000
This paper presents both a mathematical and a simulation model for one vendor.16 -
Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting.1/7. The model is solved by approximation and a lower bound is derived for the exact solution with a single-valued measure. two-stage supply chains consisting of a single retailer and a single manufacturer. Other topics discussed in the article are product design for manufacture and distribution.1/7.2. David Simchi-Levi
An important observation in supply chain management. We extend these results to multiple-stage supply chains with and without centralized customer demand information and demonstrate that the bullwhip effect can be reduced.2. Two cases (information not shared and information fully shared).Exhibit 4. mass customization.3. suggests that demand variability increases as one moves up a supply chain. by centralizing demand information. qualitative forecasting. efficient consumer response. Point-of-sale scanners allow companies to capture the customer’s voice.
2. Hence the first entry is (4.1/5.3. The fourth paper does not but concentrates on discussing performance and customer satisfaction measures. ( ).2) (1. and because there is no mathematical model involved there is no discussion of solving procedures.2) (3.3.2/2. Z) type of VMI agreement performs significantly better than RMI in many settings. A simple application of the newsvendor relation is used to define the retailer’s optimal policy.1) (1.one buyer one vendor.(5. Z) VMI contract with the performance of those operating under traditional retailer-managed inventory (RMI) with information sharing.3/3. Our results verify some observations made in industry about VMI and show that the (z.1) (1.4.
Coordinating Production and Delivery Under a (z.1.1/1.2.2/3.3) ( )
Exhibit 6.1/5. but can perform worse in others.
.1 Summary and discussion of the illustrative classifications: The above classifications for the illustrative examples are reproduced in Table 1.4.5/5.g. 3.2. Because this paper also differs from the rest
. Tava Lennon Olsen
This paper models a type of vendor-managed inventory (VMI) agreement that occurs in practice called a (z.1….3/5. which are shown to be easily computed by decoupling the periods when the supplier outsources from those when the supplier does not outsource. Fry. Z)-Type VendorManaged Inventory Contract
Michael J.3.2/5.. This is recognized by noting the last field to be empty e.2. Hence. No. The article evaluates the optimal replenishment and production policies when buyer and vendor fully share information but decisions are made in an uncoordinated fashion. Manufacturing & Service Operations Management Vol.2/1.2.1/2.1. Z) contract.) as the first entry in key 1.1/1.6.1)
6.2/8. Numerical analysis is conducted to compare the performance of a single supplier and a single retailer operating under a (z. Viewed this way it can be seen that all but one (Exhibit 4) involve a mathematical model.1.). The authors assumed demand distribution to be known and seek to find purchase timing and quantities and how much inventory should be kept under a periodic inventory review policy.1. The optimal behavior of both the supplier and the retailer are characterized.1. They propose a stochastic model for this problem and solve it with previously known solution methods. Results are compared according to single valued measures. all others have (1. 2001
A mathematical model is used to evaluate the effect of contract on coordination of production and delivery in a two stage .1.1/3.1/5. Roman Kapuscinski.2/5.2) (2. The optimal replenishment and production policies for a supplier are found to be up-to policies.188.8.131.52.3) (2. 2.1) (1.1….supply chain. We investigate the savings due to better coordination of production and delivery facilitated by such an agreement.1.1/3. Namely.
5/5. Classification of previously published supply chain management taxonomies In this section most if not all known and previously published taxonomy papers are classified to show that they all are special cases of the Figure 3 taxonomy4. Seasoned SCM researchers.1/2. 2. authors and instructors may find it a useful tool for systematically filing and efficiently recalling papers seen.2/6.3.3/3.3) (184.108.40.206) (1. and information sharing.4. These typically concern themselves with SCM subfields such as inventory theory.
Summary of the illustrative classifications
(5.1.1/220.127.116.11.g.3.2) (1.1.3/5.1/2.in not addressing decision making.3.1.1) (1.1) (1. Similarly.2.6. 3. ( ).1.2/18.104.22.168/3. Exhibit 1 and Exhibit 6 provide single-valued measures as part of their solutions while Exhibit 2..1/2.1/5.18 -
.2/2.1. 4.4.1/3.1) (1. 5.3.2) (2.2) (2. meaningful combinations of Figure 3 attributes not present in that extended Table 2.2/5.3/22.214.171.124/7.3.1) (5. 6.1) (1. Thus Table 2 vividly shows the similarities and the differences among the papers included in this sample.126.96.36.199/3.2.2) (1.2.1/1.2) (3.1/5.1/1.2.5/9.1. the next to the last field is also empty e. logistics or
.2/8.1.2/2.1) (1.1/5.2.5/5. it does so in both an effective and efficient manner.4.1) (188.8.131.52/3.2/6.2. In the meantime Figure 3 can be used to define SCM as a field of knowledge and practice in introducing the subject to neophytes.1)
Table 1 clearly attests to the fact that the taxonomy of Figure 3 is robust enough to succinctly classify the large diversity of SCM papers.2) (5.4.1) (184.108.40.206. If and when all of the extant SCM articles are so classified the result will easily identify the voids in the literature e.
Table 1. Much like the periodic table of chemical elements.3) ( ) (5.1/220.127.116.11) (2.2/5.1.1/18.104.22.168) (2.2.2) (3.
There are a number of published taxonomies on subjects relevant to SCM that are not included in this set.2.g. offers a stochastic multi-valued measure.1) (1.3/5.2/1. Firms dependent on cost-effectiveness of their SC may use it for purposes of SC configuration redesign/reengineering and logistics firms may use it for proposal generation.2/9..1.1.1/7.1/6.3) (1/3/4) () (2.3.1/5. A development such as that will be of great help to PhD candidates in search of a topic and to their dissertation committee members in considering proposals.2.5/22.214.171.124/126.96.36.199) ( ) (1.3) (3.3.
T. and Johnsen. 37.
(1/4) (1) (1/2/3/9. 21 No. 2001
Reviewing current supply network literature and analysing responses to a survey the authors developed a taxonomy which considers supply source selection. by definition they would constitute a
. This paper is classified as:
( ) ( ) (1. Network characteristics and patterns of networking activities of each type are discussed. C. J.
manufacturing. 4. R.C. This paper describes current research which examines the classification of manufacturing supply chains and positions Internetbased applications in order to identify the operations management challenges for the next generation of manufacturing planning and control systems.1) (1) ( )
Exhibit 8. inventory management. Journal of Supply Chain Management. and decision making.
A TAXONOMY OF SUPPLY NETWORKS
Internet based supply chain management: A classification of approaches to manufacturing planning and control
Dennis Kehoe and Nick Boughton
Today the Internet provides a real opportunity for demand data and supply capacity data to be visible to all companies within a manufacturing supply chain. Iss. Zheng. Lamming. the degree of supply network dynamics and the degree of focal company supply network influence are identified to be the main differentiators for classifying a matrix of four types of supply network. 4. 2001
Using previous classifications of inventory management and supply chain management the paper presents a classification which considers different types of supply chain structures to identify features of manufacturing planning and control systems based on internet as an enabling technology. No matter how comprehensive they might be. International Journal of Operations & Production Management. Vol. partnership.1) ( ) (1)
Exhibit 9.M. Based on a review of network literature and extensive empirical data across a variety of industry sectors.. risk and benefit sharing.2.
There has been limited research into how different types of supply networks can be created and operated.Exhibit 7. Vol.E. This paper develops a taxonomy of supply networks with a particular focus on managing network creation and operation.2/3/8. Consequently there is a need for manufacturing organisations to explore alternative mechanisms for the management of their operations network.. demand management.. in particular the role of manufacturing planning and control systems. The paper concludes with the contribution of a proposed taxonomy for better understanding the networking contingencies surrounding creation and operation of supply networks.19 -
1/8. With recent advances in communications and information technology. To remain competitive.
Coordinated Supply Chain Management
Thomas Douglas J.
Historically. and distribution. buyer-vendor. make-tostock). demand management. European Journal of Operational Research. we suggest directions for future research. Finally.1. This classification considers only the modelling aspect of the supply chain literature and a specific category of models. Increasing competitive pressures and market globalization are forcing firms to develop supply chains that can quickly respond to customer needs. what type/level of integration do these supply chain processes require? This article is based on an extended conceptual framework developed by previous researchers and provides an application in a health care setting.4/9. The main purpose of this work is to test the usefulness and to increase the understanding of the framework in a case environment. and. and collaborative decision making. In this paper.. This taxonomy is classified as:
(3/4) ( ) (1/2/7/8. The objective is to assess the applicability of this supply chain framework for managerial purposes.g. performance measurement. Bask
It has been suggested that successful Supply Chain Management (SCM) requires the understanding and management of three important issues: who are the members in the supply chain.
.3/2) ( )
Exhibit 10. The International Journal of Logistics Management Vol. 2002
The authors first classify supply chains based on structure showing the number of tiers and position of the members within the supply chain. these firms must reduce operating costs while continuously improving customer service. firms have an opportunity to reduce operating costs by coordinating the planning of these stages. They also create subcategories for strategic models.Developing a Framework for Supply Chain Management
subset of the Figure 3 taxonomy. placing particular emphasis on models that would lend themselves to a total supply chain model. The authors mainly consider customer relationship management. which supply chain processes link them. Iss.13. and Griffin Paul M. risk and reward sharing. integration management. procurement. and inventory-distribution coordination. 94. 1. we review the literature addressing coordinated planning between two or more stages of the supply chain.1) (1. the three fundamental changes of the supply chain procurement. Iss. production. Vol. have been managed independently. Spens and Anu H. Then using previously published research they suggest a framework which is tested in the health care sector. product development. 1996
The authors focus on clarifying three different SC coordination mechanisms e. Hence. production strategy (make-to-order. partnership. production-distribution.2. information sharing for order processing.20 -
. buffered by large inventories. as well as rapidly growing array of logistics options.
The authors. pricing.1. and delivery. 11.
E-Business and Supply Chain Management: An Overview and Framework
M. ii) research on firm focused tactics. and distributions and transportation related papers.2. 2002
The authors provide a classification which includes case studies. first. Eric Johnson and Seungjin Whang The web is having a significant impact on how firms interact with each other and their customers. and case studies. and performance measurement as sub categories. In this paper. Chapter in book5. marketing and pricing. Kluwer Academic Publishers. under this category papers are classified as systems. analytical models.1/9.3) ( ) ( )
Exhibit 11. relationship management.1) ( ) ( )
Exhibit 12. 4. integrated operations. Vol.
A Taxonomic Review of Supply Chain Management Research
Ram Ganeshan.3/3/5. Production & Operation Management. Magazine.4/6. Past stumbling blocks for supply chain integration such as high transaction costs between partners. M. Eric Jack. collaboration.(1/2/5) ( ) (2/3/4/8. and the challenges of managing complex interfaces between functional organizations are all dissolving on the web. and operational tools. production planning and scheduling. inventory. iii) operational efficiencies which mainly focuses on inventory management. Then the authors categorize research methodologies used as: concept and non-quantitative
No abstract provided
. We present a survey of emerging research on the impact of e-business on supply chain management including descriptive frameworks.1/2. coordination. and internet as an enabling technology for procurement. and eCollaboration. and Paul Stephens
Quantitative Models for Supply Chain Management. and order processing. classify SCM research in three groups: i) research on competitive strategy which generally includes long term decisions such as location selection. Iss. product design.1/7/9. empirical analysis.
(2. information sharing. We classify the work into three major categories: e-Commerce. sourcing. poor information availability. outsourcing. reverse logistics. new product introduction. e-Procurement. we examine how the web is changing supply chain management. and monitoring. Later the authors create a sub section for the cases with location.21 -
. models.1/5) ( ) (1/2.J.
These authors use a two dimensional approach for their taxonomy. case-oriented and empirical study.edu/~sdw1/papers1. To convey this vision we suggest a taxonomy that characterizes research problems in manufacturing logistics by the physical entities (systems) involved.g. or putting research into practice.
Manufacturing Logistics Research: Taxonomy and Directions
S. A. A main goal of the paper is to envision a broader and richer research base in manufacturing logistics through the explicit consideration of business contexts and technological trends.
(1/2/3) ( ) (2/3/4) ( ) ( )
Exhibit 14. Lehigh University
http://www. taxonomies..g. research. and the type of decision (decision scope) intended. Robin O. The second dimension specifies the research area e.
System Dynamics Modelling in Supply Chain Management: Research Review
Bernhard J. A. extract and revitalize the vision formed in the workshop. inventory management.htm
. eds. This textbook based taxonomy is shown to be:
(1/2. and subsequent efforts by the authors to synthesize. Joines. Roundy. Current research on System Dynamics Modelling in supply chain management focuses on inventory decision and policy development. and the broader business context (business environment) of which the research can be justified. We argue that these renewed directions for manufacturing logistics research offer opportunities for the OR/MS professionals to exert influence on corporate decision making. practice. Working paper6 Department of Industrial and Systems Engineering. demand amplification. David Wu. time compression.22 -
.2/4/5) ( ) (2/3/4/7/8) ( ) ( )
Exhibit 13. Kang. Fishwick. and presents a taxonomy of research and development in System Dynamics Modelling in supply chain management. demand amplification. and quantitative models. and to make direct impact on software innovation.1/2. the focus.models. Robert H. Martin-Vega
This paper examines research directions and opportunities in manufacturing logistics based on recommendations from an NSF sponsored workshop. The paper first gives an overview of recent research work in these areas. R. R.lehigh. Angerhofer and Marios C. Angelides
The use of System Dynamics Modeling in Supply Chain Management has only recently re-emerged after a lengthy slack period.. and supply chain network design. Barton. followed by a discussion of research issues that have evolved. The first dimension defines the article’s characteristic e.1. and literature reviews. supply chain design and integration. Proceedings of the 2000 Winter Simulation Conference J. K. framework. and international supply chain management. and P. and Louis A. the level-of-abstraction. Storer.
. Clearly. It ranges from the production unit to the supply chain. facility planning. it is interesting to note the keys that remain empty. globalization.
SCM Taxonomy papers: A summary of classifications
( ) ( ) (1.1. Moreover. 11. present their taxonomy in three dimensional space..4/9. 14.3) ( ) ( ) (2. 11. Thus.Wu et al. and 13.1/7/9.1/2. Oddly. human factors. Decision scope includes short to long term decisions such as scheduling. and 13. Applied. Interestingly.1/8.g. 13. Lastly.1) ( ) ( ) (1/2.1. 11.1/2. each is shown to be a special case of the Figure 3 taxonomy. Because the authors do not mention activities such as relationship management. Alternately stated. This void can also be found in Exhibits 10. Figure 3 is a more general – a more encompassing – SCM taxonomy then any other currently in the public domain. 12. 12.2. Thus Table 2 attests to the fact that the taxonomy of Figure 3 subsumes all SCM literature taxonomies known to the authors and is robust enough to show that each represents but a subset of that literature e.23 -
. performance metrics. Applied. The system dimension defines the physical entities in manufacturing environment.1) (1) ( ) (1/4) (1) (1/2/3/9. information sharing. Thus. Exhibit 7 in the first key e.g. etc.g.2/3/8.2. Exhibit 7 fails to address issues of the Supply Chain Environment as well as those of Product Properties. 8. inventory control..2. These represent those parts of the SCM domain that are not addressed by the respective taxonomies. 9.3/2) ( ) (1/2/5) ( ) (2/3/4/8. information technology and ecommerce.2/4/5) ( ) (2/3/4/7/8) ( ) ( ) (1/2/3) ( ) (2/3/4) ( ) ( ) ( ) (1/2) (1/2/3/7/9) (1/2) ( )
In viewing Table 2. environmental factors.1) (1. and Mixed theoretic and applied studies. Exhibit 8 does not address issues of Decision Making and Degree of Information Sharing. uncertainty. and industry convention are the subcategories of business environment that given as examples.1) ( ) (1) (3/4) ( ) (1/2/7/8. 10. while Exhibit 10 distinguishes between Theoretic. Type of Study. and decision making.3/3/5.4/6.1/9.1/5) ( ) (1/2. 12. The last dimension specifies the broader context of business environment. Exhibit 13 distinguishes between Theoretic. the numeric designations included in an nonempty key specify the subset of that key’s attribute describing the taxonomy classified. and Modelling. capacity management. e. integration. Supply Chain Environment is not an attribute of concern in Exhibits 9.1/9. 10. addresses only Surveys and Literature Reviews. return and after sales these are not included in the classification that follows:
( ) (1/2) (1/2/3/7/9) (1/2) ( )
Exhibit 7.. Exhibit 14 does not classify according to Type of Study.
differing application sectors and differing research strategies. Reisman (1979).7. the SCM literature is growing exponentially. It should evolve as the field it addresses evolves over time. differing paths to theory extension. and 1992)
. It may be that the Figure 3 taxonomy is too detailed than is necessary for common usage. Even the respective authors emanate from different countries. and remains in the state of evolution. no taxonomy should be considered fixed for all time. However. Even the Periodic Table of chemical elements has been. The above represent different periods. Concluding Remarks There is always a subjective side to selecting illustrative papers. 1999. This literature is recording advancements in theory and in solution methodology while at the same time expanding its domain of applications. thus violating parsimony. different journals. we erred on the side that might appear to have an excess of detail. Figure 3 was shown to subsume all
known SCM taxonomies thus indicating that each represents but a subset of that literature or is a special case of the Figure 3 taxonomy. Additionally. The taxonomy of Figure 3 was shown to be robust enough to succinctly classify the large diversity of SCM papers by using a number of rather disparate but wellknown contributions to that literature.
As demonstrated for other OR/MS disciplines in Reisman (1998.24 -
Because a major objective for this taxonomy is to systematically identify the voids in the literature7 of SCM. Lastly. experience shows that it is easier to aggregate data in hand than not to have collected it in sufficient detail in the first place. indeed different continents. As in any new sub-discipline of Management Science.
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