Performance metric optimization advocates CPFR in supply chains: A system dynamics model based study

Balaji Janamanchi and James R. Burns

Cogent Business & Management, 2016, vol. 3, issue 1, 1139440

Abstract: Background: Supply Chain partners often find themselves in rather helpless positions, unable to improve their firm’s performance and profitability because their partners although willing to share production information do not fully collaborate in tackling customer order variations as they don’t seem to appreciate the benefits of such collaboration. Methods: We use a two-player (supplier-manufacturer) System Dynamics model to study the dynamics to assess the impact and usefulness of supply chain partner collaboration on the supply chain performance measures. Results: Simulation results of supply chain metrics under varied customer order patterns viz., basecase, random normal, random uniform, random upwardtrend, and random downwardtrend under (a) basecase, (b) independent optimization by manufacturer, and (c) collaborative optimization by manufacturer and supplier, are obtained to contrast them to develop useful insights. Conclusions: Focus on obtaining improved inventory turns with optimization techniques provides some viable options to managers and makes a strong case for increased collaborative planning forecasting and replenishment (CPFR) in supply chains. Despite the differences in the inventory management practices that it was contrasted with, CPFR has proven to be beneficial in a supply chain environment for all SC partners.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2016.1139440 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:3:y:2016:i:1:p:1139440

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2016.1139440

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().