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Information to share in supply chains dedicated to the mass production of customized products for decentralized management

Author

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  • Carole Camisullis

    (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)

  • Vincent Giard

    () (CRG - Centre de recherche en gestion - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique, LAMSADE - Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)

  • Gisele Mendy-Bilek

    () (UPPA - Université de Pau et des Pays de l'Adour)

Abstract

In an upstream supply chain dedicated to the mass production of customized products, decentralized management can be an efficient and effective method in a steady state in which stochastic characteristics of customers' demands remain stable. However, this is possible only if all echelons that precede the final assembly line use periodic replenishment policies that restrain the stockout risk to a low predetermined probability. The safety stocks' levels are more difficult to define for alternative or optional parts, as well as the components they use, whose demands are weighted sums of random variables, affected by several random factors and organizational constraints. The factors and constraints to consider are not the same for supplied and produced components. The random demand of a component depends on the demand of alternative or optional parts mounted in the final product, through a double transformation involving the bill of materials explosion, which is at the origin of the weighted sum of random variables, and time lags. In the steady state, the knowledge of the probability distribution of that random variable allows for the determination of safety stocks that decouple the management of upstream supply chains. Progressive changes in the steady state require periodic and progressive adaptations of the safety stocks that do not directly depend on the final demand knowledge.

Suggested Citation

  • Carole Camisullis & Vincent Giard & Gisele Mendy-Bilek, 2011. "Information to share in supply chains dedicated to the mass production of customized products for decentralized management," Working Papers hal-00876865, HAL.
  • Handle: RePEc:hal:wpaper:hal-00876865
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00876865
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    References listed on IDEAS

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    1. repec:dau:papers:123456789/487 is not listed on IDEAS
    2. Gunasekaran, Angappa & Ngai, Eric W.T., 2009. "Modeling and analysis of build-to-order supply chains," European Journal of Operational Research, Elsevier, vol. 195(2), pages 319-334, June.
    3. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 2004. "Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect"," Management Science, INFORMS, vol. 50(12_supple), pages 1887-1893, December.
    4. Ryu, Seung-Jin & Tsukishima, Takahiro & Onari, Hisashi, 2009. "A study on evaluation of demand information-sharing methods in supply chain," International Journal of Production Economics, Elsevier, vol. 120(1), pages 162-175, July.
    5. Springer, Mark & Kim, Ilhyung, 2010. "Managing the order pipeline to reduce supply chain volatility," European Journal of Operational Research, Elsevier, vol. 203(2), pages 380-392, June.
    6. Ouyang, Yanfeng & Li, Xiaopeng, 2010. "The bullwhip effect in supply chain networks," European Journal of Operational Research, Elsevier, vol. 201(3), pages 799-810, March.
    7. Gérard P. Cachon & Marshall Fisher, 2000. "Supply Chain Inventory Management and the Value of Shared Information," Management Science, INFORMS, vol. 46(8), pages 1032-1048, August.
    8. Sucky, Eric, 2009. "The bullwhip effect in supply chains--An overestimated problem?," International Journal of Production Economics, Elsevier, vol. 118(1), pages 311-322, March.
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    Cited by:

    1. Vincent Giard & Mustapha Sali, 2012. "Pilotage d'une chaîne logistique par une approche de type MRP dans un environnement partiellement aléatoire," Working Papers hal-00875497, HAL.
    2. repec:dau:papers:123456789/9021 is not listed on IDEAS

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