Literature Review

1) Ravindran, A. Ravi,Ufuk Bilsel, R.,Wadhwa, Vijay, Yang, Tao

The objective of this paper is to develop multicriteria supplier selection models incorporating supplier risk and apply them to a real company Most manufacturers are continuously seeking their supplier base around the world and look for an opportunity to significantly reduce supply chain costs. Singular emphasis on supply chain cost, however, can make the supply chain brittle and more susceptible to the risk of disruptions. . We develop two different types of risk models, value-at-risk (VaR) and miss-thetarget (MtT). We model the risk-adjusted supplier selection problem as a multicriteria optimisation problem and solve it in two phases. Phase 1 is the pre-qualification step, where a large set of initial suppliers is reduced to a smaller set of manageable suppliers using various multi-objective ranking methods. In Phase 2, order quantities are allocated among the short listed suppliers using a multi-objective optimisation model. In the multi-objective formulation, price, lead-time, VaR type risk of disruption due to natural event and MtT type risk of quality are explicitly considered as four conflicting objectives that have to be minimised simultaneously. We solve the multi-objective optimisation problem using four different variants of goal programming. The models are illustrated with an actual application to a global IT company 2) Lee, Amy H. I. This article evaluates the model for buyer-supplier relationships with the consideration of benefits, opportunities, costs and risks.With increasingly fierce global competition, firms in various industries need to build a cooperative buyer-supplier relationship to survive and to acquire reasonable profit. Even though the literature on various types of collaboration between firms is abundant and the works on supplier selection models are numerous, the research that provides a mathematical model for the selection of the most appropriate form of buyer-supplier relationship is very limited. Existing buyer-supplier evaluation models usually only consider the benefits from the relationship, but not the opportunities, costs and risks that may need to be confronted. The main objective of this study is to propose an analytical approach to evaluate the forms of buyer-supplier relationship between a manufacturer and its supplier. A fuzzy analytic hierarchy process (AHP) model, which applies fuzzy set theory and the benefits, opportunities, costs and risks (BOCR) concept, is constructed to deal with uncertainty and to consider variousaspects of alternatives. Multiple factors that affect the success of the relationship

H. P. a dynamic system model of supply chains is described which can be applied to managing disruptive events in full-load states of manufacturing chains.The proposed model is a general form that can be tailored and applied by firms that are making decisions on buyer-supplier relationship. M. Samaranayake.are analysed by incorporating experts' opinions on their priority of importance. and links with required functions from sales to service and field return. Halgamuge. . -Y. Depending on the nature and severity of uncertainty. Smith. A systematic investigation was carried out to find the major causes of OTD problems of that manufacturer. The procedure to construct full-load production functions of complex manufacturing nodes with internal queuing delay is described. A case study of selecting the most appropriate buyer-supplier form between a TFT-LCD manufacturer and its colour filter supplier is presented. After implementing the model average OTD was increased from 10% to 65% in about 12 months of operation 4) Huang. The purpose of this research was to develop an on-time delivery (OTD) improvement model for make-to-order (MTO) manufacturingorganisations. In this paper.Chang. S Risk management is a major concern in supply chains that have high levels of uncertainty in product demand. with a view to implementing and validating the proposed model. The proposedmodel was then implemented in a selected manufacturing organisation. using basic data and generate various transaction data including sales orders with an accurate promised date. and disaster. The uncertainties frequently manifest as dynamic events that pose a threat to interrupting supply chain operation. as part of the overall model. this model can be used to determine if . -C. 3) Karim. S. for broader planning within manufacturing organisations.. J. An example of disruptive events is given which arises from demand shocks in distribution channel. transaction data and functional applications. and the proposed model is applied to facilitate the decision process. based not only on the available stock but also on procurement and distribution times of any raw materials from external sources. A..Chou. disruption. K. and a performance ranking of the buyer-supplier forms is obtained. Many studies in literature addressed modelling of deviation events. These functions integrate through the database. The database associated with the modeldefines all the data including both basic and transaction data. manufacturing process or part supply. Given an unordinary event of demand shock. Analytic optimal solution is derived for the dynamic model. based on: (i) a business process model combining product development and customer order management processes. Y. and (ii) an integrated database with basic data. the impact of dynamic events can be distinguished into three categories: deviation. A. R. The business process model. was designed using event-driven process chain (EPC) methodology and incorporated both capacity and material requirements planning functionalities for estimating ontime delivery dates and times.

Government Accountability Office (GAO) on the policy programs and proposals of the Department of Defense (DOD). GAO assesses how manufacturingreadiness levels (MRLs) could solve manufacturing problems and the challenges and barriers in the implementation of MRLs in the DOD. system. 5)GAO Reports. Corrective measures are taken to avoid failures and a suitable preventive maintenance (PM) programme is followed to keep the machines in working condition.demand shock can be absorbed by a manufacturing chain and the level of contingent resources that must be synchronously activated in multiple nodes of the chain. and financial risk) are managed effectively so that the company mission and vision are not affected and all company Key Performance Indicators (KPIs) (Quality. D. Cost. brainstorming. people. Savadamuthu Maintenance and failure costs of production machines increase the overall operating cost of a manufacturing organisation and will reduce the profit margin. The purpose is to ensure that all the risks (process. checklist. Hence. The loss before and after implementing the RMM is compared using Taguchi's loss function. this study will discuss managing the risks in aerospace company. and Continuous Improvement) are achieved. implementation and results of implementation of the model are presented 7) Adi Saptari . 4/22/2010 The article discusses the review of the U. Sundararaj. ABC Company has decided to implement risk management process to manage its operational risks. The reactive maintenance model (RMM) is developed in which risk management technique (RMT) is used to analyse the causes of the failures.Mohd Rizal Salleh This study is about the implementation of risk management at aerospace manufacturing company. 6) P. thus enhancing risk management. Karuppuswamy.Risk management has been practiced widely in banking and financial area. survey .R. In this paper. external events. Methods of training. S. management is interested in minimising the resources allotted to these non-productive activities. G. This work includes a case study. Elangovan. It mostly refers on how to implement risk management process and where to implement it. Delivery.S. This model can be used to reduce what could have been a disruptive event into a deviation event. development of maintenance model. Accountability. the analysis. L. wherein the failures of a plastic injection moulding machine are examined. Devadasan. GAO recommends the Secretary of Defense to use MRL across the programs of the DOD and strengthen the criteria of MRLs.

We also relate various supply chain risk management (SCRM) strategies examined in the research literature with actual practices. A risk-management program. These methods are initially obtained from literature review that has been conducted in the early stage in the study.and questionnaires. First. when companies don t generate enough cash. by highlighting the gap between theory and practice. 8)Kenneth A. The intent of this paper is three-fold.The key to making good investments is generating enough cash internally to fund those investments. this study also measures the effectiveness of the implementation of risk management at ABC Company. potentially compromising a company s ability to invest. and natural and man-made disasters. a company s riskmanagement strategy needs to be integrated with its overall corporate strategy. we hope this review can serve as a practical guide for some researchers to navigate through the sea of research articles in this important area. Cash flow so crucial to the investment process can often be disrupted by ovements in external factors such as exchange rates. Contrary to what senior managers may assume. Lastly.To gain cost advantage and market share. to make sensible use of the riskmanagement fire-power available to them through financial derivatives. we review various quantitative models for managing supply chain risks. but they could make a supply chain more vulnerable to various types of disruptions caused by uncertain economic cycles. Our riskmanagement paradigm rests on three basic premises: The key to creating corporate value is making good investments. Second. 9) C. Tang. In this paper. we hope to motivate researchers to develop new models for mitigating supply chain disruptions . This article provides insight on various quantitative methods of mitigating risk in the supply chain . many firms implemented various initiatives such as outsourced manufacturing and product variety. Froot The goal in this article is to present a framework to guide top-level managers in developing a coherent risk-management strategy in particular.S. we develop a unified framework for classifying SCRM articles. a company s risk-management strategy cannot be delegated to the corporate treasurer let alone to a hotshot financial engineer. Ultimately. and interest rates. they tend to cut investment more drastically than their competitors do. should have a single overarching goal: to ensure that a company has the cash available to make value enhancing investments. consumer demands. These initiatives are effective in a stable environment. commodity prices. and risk score matrix are used to determine the results. therefore. Third.

TRACTORS AFTER SALES SERVICE -offer warranty/ after sales service to customers [ adds value to the product and increases sales ] ============================================ .TRACTOR DESIGN -make the design simple .Value Chain 1. --------------------------------------------------------2. TRACTORS TOTAL QUALITY ASSURANCE.TRACTORS RAW MATERIAL / PARTS PROCUREMENT -establish the demand planning system [ reduce the fluctuations in production] -establish the inventories of raw materials [ reduce the cost of stock holding] -establish the economic order quantity [""""""""""""""""""""""""""""""] -----------------------------------------------------------------------------3. [ adds value to customers / reduces distribution cost] ---------------------------------------------------------------------------8.TRACTORS CUSTOMER SERVICE -provide effective customer order processing/order service/ timely despatch to customers.easy to use -reduce COMPLICATED / expensive parts.TRACTORS PRODUCTION -establish a lean production [ cost effective] ---------------------------------------------------------------------5.TRACTORS FINISHED GOOD INVENTORY -match the finished stock inventory to market demand / sales requirements] [ cost saving in stock holding ] 7. TRACTORS PRODUCTION PLANNING -establish an effective / efficient production planning system [ cost savings] -----------------------------------------------------------------------------4. -set up quality assurance system to reduce quality problems/ rejections] [ cost savings ] ------------------------------------------------------------6.

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