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How should you stabilise your supply chains?

  • Hill, Alex
  • Doran, Des
  • Stratton, Roy
Registered author(s):

    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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    File URL: http://www.sciencedirect.com/science/article/pii/S0925527311004579
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    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
    Contact details of provider: Web page: http://www.elsevier.com/locate/ijpe

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    1. Ganeshan, Ram & Boone, Tonya & Stenger, Alan J., 2001. "The impact of inventory and flow planning parameters on supply chain performance: An exploratory study," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 111-118, May.
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    4. Bivin, David G., 2008. "Production stability in a supply-chain environment," International Journal of Production Economics, Elsevier, vol. 114(1), pages 265-275, July.
    5. 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.
    6. Chu, Chi-Leung & Leon, V. Jorge, 2008. "Power-of-two single-warehouse multi-buyer inventory coordination with private information," International Journal of Production Economics, Elsevier, vol. 111(2), pages 562-574, February.
    7. Saeed, Khalid, 2008. "Trend forecasting for stability in supply chains," Journal of Business Research, Elsevier, vol. 61(11), pages 1113-1124, November.
    8. 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.
    9. 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.
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    11. 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.
    12. Meixell, Mary J., 2005. "The impact of setup costs, commonality, and capacity on schedule stability: An exploratory study," International Journal of Production Economics, Elsevier, vol. 95(1), pages 95-107, January.
    13. Hsu, Hsi-Mei & Wang, Wen-Pai, 2004. "Dynamic programming for delayed product differentiation," European Journal of Operational Research, Elsevier, vol. 156(1), pages 183-193, July.
    14. Swafford, Patricia M. & Ghosh, Soumen & Murthy, Nagesh, 2008. "Achieving supply chain agility through IT integration and flexibility," International Journal of Production Economics, Elsevier, vol. 116(2), pages 288-297, December.
    15. Lai, Kee-hung & Cheng, T.C.E. & Yeung, A.C.L., 2005. "Relationship stability and supplier commitment to quality," International Journal of Production Economics, Elsevier, vol. 96(3), pages 397-410, June.
    16. Chan, Chi Kin & Lee, H.W.J. & Wong, K.H., 2008. "Optimal feedback production for a two-level supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 619-625, June.
    17. Hamister, James W. & Suresh, Nallan C., 2008. "The impact of pricing policy on sales variability in a supermarket retail context," International Journal of Production Economics, Elsevier, vol. 111(2), pages 441-455, February.
    18. 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.
    19. Tava Lennon Olsen & Rodney P. Parker, 2008. "Inventory Management Under Market Size Dynamics," Management Science, INFORMS, vol. 54(10), pages 1805-1821, October.
    20. Son, Joong Y. & Sheu, Chwen, 2008. "The impact of replenishment policy deviations in a decentralized supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 785-804, June.
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