Synchronization of logistical responsiveness in supply chains

Industrial value creation is driven increasingly by the market dynamics. The control of the dynamics in the field of production and logistics is crucial for business success. The value creation within production networks is also gaining a stronger relevance. A higher process orientation leads to stronger dynamic interactions between the pro-duction stages of the network.

Manufactures need to know, how they can control the dynamics within production processes and the impacts to the supplying and receiving processes. A new model of explaining dynamic processes is developed in this work. Deterministic and stochastic dynamic effects are described based on that model. Furthermore their impact to the logistical objectives is calculated with known logistical models and actions for control-ling dynamics are recommended.

Based on these results a decision model for converging processes is introduced. The model enables to adjust the single reactions of the supplying processes to higher demand by synchronizing their logistical responsiveness.

dynamics, production planning and control, production networks

The growing dynamics in the economic environment necessitate new approaches for analyzing and influencing the dynamic behavior of production networks. Analysis of nonlinear dynamics can help to differentiate the causes of the formation of dynamics. One key cause is the production network partners’ differing responsiveness, i.e. the logistics capability to react.

supply chain design, logistics reactivity, peripheral production network, dynamic systems

In order to obtain high logistical performance in a production network at low logistical costs, there has to be a high level of synchronization in the material provision of the final assembly. The level of synchronization can be restrained by dynamic effects in a network. This paper presents an approach for identifying critical material procurement processes that are accountable for an insufficient achievement of logistical goals in the material provision. In addition, the results of a simulation study are explained that analyzes the effects of measurements conducted to increase the synchronization of the material provision by also taking dynamic effects into account.

dynamics, material provision, production networks, production planning and control (ppc)

Against the background of growing dynamics in the economic environment, new approaches to analyze and influence the dynamic behavior in production networks need to be found. The analysis of nonlinear dynamics can help to differentiate causes of the formation dynamics. A significant cause is the different logistic reactivity of the supply chain partners.

dynamic, production network, supply chain, supply chain management

To survive in the rivalry of competing supply chains in strong market dynamics, logistic measures of single companies are no longer sufficient. The reaction to disturbances needs to be aligned within the supply chain. Otherwise losses of efficiency result as increased inventory costs and reduced logistic performance. These losses are caused in early tiers of the supply chain. Due to the Bullwhip effect, they result in highly amplified inefficiencies throughout the complete supply chain. This article presents the development of a methodical support for synchronising the logistic reaction in supply chains. Therefore, reactions on disruptions and demand changes are determined and – according to their effect on logistic objectives – quantified. Cause-effect relationships of all processes within the supply chain (Source, Make and Deliver) are identified.

supply chain management, logistic reactivity