How can fluid dynamics help supply chain management?
This paper investigates a pivotal problem in supply chain management: how to configure supply networks and business processes to achieve time performance. The study focuses on the time-sensitive casual wear industry. Initially, Zara's and Benetton's supply networks are cross-compared to understand the rationale behind their differences in time performance. Starting from this analysis, the paper then borrows an analogy with fluid dynamics to explain the relations between the supply network structure, business process configuration and time performance, and interprets Benetton's and Zara's configuration decisions and their impact on time performance. The paper proposes a model that unites under one framework the different perspectives existing in the literature on the phenomenon under investigation. This study also has interesting practical implications, as it offers guidance for managers facing programmes for supply network design or re-configuration.
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- Mason-Jones, Rachel & Towill, Denis R., 1999. "Total cycle time compression and the agile supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 61-73, May.
- Martínez-Olvera, César, 2008. "Methodology for realignment of supply-chain structural elements," International Journal of Production Economics, Elsevier, vol. 114(2), pages 714-722, August.
- Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
- Arshinder & Kanda, Arun & Deshmukh, S.G., 2008. "Supply chain coordination: Perspectives, empirical studies and research directions," International Journal of Production Economics, Elsevier, vol. 115(2), pages 316-335, October.
- Persson, Fredrik & Olhager, Jan, 2002. "Performance simulation of supply chain designs," International Journal of Production Economics, Elsevier, vol. 77(3), pages 231-245, June.
- Vonderembse, Mark A. & Uppal, Mohit & Huang, Samuel H. & Dismukes, John P., 2006. "Designing supply chains: Towards theory development," International Journal of Production Economics, Elsevier, vol. 100(2), pages 223-238, April.
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