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How should you stabilise your supply chains?

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  • Hill, Alex
  • Doran, Des
  • Stratton, Roy
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    Abstract

    This case based research paper examines the stabilisation strategies used within seven supply chains and presents a framework to help practitioners stabilise their chains. The findings show that organisations should first select a cushioning strategy and then reduce demand uncertainty to lower the level of cushion held. However, they need to recognise that other organisations within the supply chain are making similar decisions and the whole supply chain needs to be stabilised. Despite this, businesses seem to only share information about their demand uncertainty-reducing mechanisms and not their cushioning strategies. This means that companies often make decisions in isolation of each other, which can then destabilise the chain.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 135 (2012)
    Issue (Month): 2 ()
    Pages: 870-881

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    Handle: RePEc:eee:proeco:v:135:y:2012:i:2:p:870-881

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Stabilising strategy; Cushioning strategy; Supply chains; Operations strategy;

    References

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    16. Frank Chen & Zvi Drezner & Jennifer K. Ryan & David Simchi-Levi, 2000. "Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information," Management Science, INFORMS, vol. 46(3), pages 436-443, March.
    17. van Donselaar, K. & van den Nieuwenhof, J. & Visschers, J., 2000. "The impact of material coordination concepts on planning stability in supply chains," International Journal of Production Economics, Elsevier, vol. 68(2), pages 169-176, November.
    18. Sipahi, Rifat & Delice, Ismail Ilker, 2010. "Stability of inventory dynamics in supply chains with three delays," International Journal of Production Economics, Elsevier, vol. 123(1), pages 107-117, January.
    19. Bogataj, Marija & Bogataj, Ludvik & Vodopivec, Robert, 2005. "Stability of perishable goods in cold logistic chains," International Journal of Production Economics, Elsevier, vol. 93(1), pages 345-356, January.
    20. Geary, S. & Disney, S.M. & Towill, D.R., 2006. "On bullwhip in supply chains--historical review, present practice and expected future impact," International Journal of Production Economics, Elsevier, vol. 101(1), pages 2-18, May.
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