TY - JOUR
KW - Schedule instability
KW - Automotive supply networks
KW - Joint economic lot sizing
KW - Supply unreliability
KW - Safety stocks
AU - Tim Gruchmann
AU - Marcus Brandenburg
AB - Within assembly network supply chains, supply disruptions can occur on every supplier-buyer link. Managing this network unreliability can help to reduce schedule instability and increases the overall efficiency of the supply chain accordingly. In this line, a stylised assembly network supply chain model is proposed with two suppliers and a single buyer using the joint economic lot sizing approach. This supply network can be disrupted by a shortage occurring at one of the two suppliers due to random machine breakdowns, which consequently creates dependent requirements variations affecting both the buyer and the entire network. First, the basic joint economic lot sizing model is extended by the said schedule instability. Second, a solution approach is presented concerning the determination of optimal lot sizes, the investment into the reliability of the supply network as well as the determination of safety stocks. Furthermore, the sensitivity of relevant model parameters is investigated by means of a numerical example. Managerial implications are accordingly derived focusing on the reliability of the supply network members and internal incentive structures.
BT - International Journal of Operational Research
DO - 10.1504/IJOR.2020.108838
IS - 1
N2 - Within assembly network supply chains, supply disruptions can occur on every supplier-buyer link. Managing this network unreliability can help to reduce schedule instability and increases the overall efficiency of the supply chain accordingly. In this line, a stylised assembly network supply chain model is proposed with two suppliers and a single buyer using the joint economic lot sizing approach. This supply network can be disrupted by a shortage occurring at one of the two suppliers due to random machine breakdowns, which consequently creates dependent requirements variations affecting both the buyer and the entire network. First, the basic joint economic lot sizing model is extended by the said schedule instability. Second, a solution approach is presented concerning the determination of optimal lot sizes, the investment into the reliability of the supply network as well as the determination of safety stocks. Furthermore, the sensitivity of relevant model parameters is investigated by means of a numerical example. Managerial implications are accordingly derived focusing on the reliability of the supply network members and internal incentive structures.
PY - 2020
SE - 50-68
T2 - International Journal of Operational Research
TI - Managing unreliability in automotive supply networks – an extension of the joint economic lot size model
UR - https://www.inderscience.com/info/inarticle.php?artid=108838
VL - 39
ER -