The causes and determination of safety stocks in upstream supply chains for mass production of customized products

Carole Camisullis, Vincent Giard () and Gisele Mendy-Bilek ()
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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 - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, LAMSADE - Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Gisele Mendy-Bilek: UPPA - Université de Pau et des Pays de l'Adour

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Abstract: In an upstream supply chain dedicated to the mass production of customized products, many sources create production instability: the level and structure of production in the final assembly line, variability of lead times, quality issues, packaging and loading constraints on transportation, demand anticipation, and the synchronization of the flows of components sent, received, and produced. For periodic replenishment systems, each member of the supply chain must have two different safety stocks to prevent some sources of fluctuations: a safety stock of produced components to meet the demand of downstream links and a safety stock of supplied components to ensure its own production. Procedures must take the organizational framework of information and products exchanges into account. The relevance of supply and production rules depends on the relevance of structural information broadcast along the supply chain.

Keywords: Global supply chain management; bullwhip effect; information value; safety stock; supply chain.; supply chain (search for similar items in EconPapers)
Date: 2010-02-17
Note: View the original document on HAL open archive server: https://hal.science/hal-00876995v1
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