Supply Chain Planning and Coordination

Martin Albrecht ()
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Martin Albrecht: Paul Hartmann AG

Chapter Chapter 2 in Supply Chain Coordination Mechanisms, 2010, pp 5-34 from Springer

Abstract: Abstract The aim of this chapter is to familiarize the reader with the topic of this work, how to coordinate mid-term planning in decentralized supply chains, i.e., supply chains that comprise several independent, legally separated parties with their own decision authorities. We start with a description of planning in centralized supply chains (Sect. 2.1), where the decision authority and the knowledge of all relevant planning data is hold by a single party. In Sect. 2.2 we provide centralized mathematical model formulations for mid-term supply chain planning (Master Planning). Section 2.3 deals with supply chain planning in decentralized environments. We describe the differences in the planning processes compared to centralized planning, provide reasons for the potential suboptimality of decentralized planning and introduce coordination and, more specifically, collaborative planning as approaches to mitigate this suboptimality.

Keywords: Supply Chain; Master Planning; Economic Order Quantity; Collaborative Planning; Inventory Holding (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-642-02833-5_2

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DOI: 10.1007/978-3-642-02833-5_2

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