Supply Chain Analysis: A Handbook on the Interaction of Information, System and Optimization Edited by Christopher S. Tang, Chung-Piaw Teo, Kwok-Kee Wei

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Supply Chain Analysis: A Handbook on the Interaction of Information, System and Optimization
Edited by Christopher S. Tang, Chung-Piaw Teo, Kwok-Kee Wei

Supply Chain Analysis: A Handbook on the Interaction of Information, System and Optimization

Contents
Preface vii
Supply Chain Configurations of Foreign Cosmetics Companies
Operating in China 1
Cindy Fang, Frances Gao, David Liu, Christopher S. Tang, Weiwei Wang,
and Tony Wu
Structural Supply Chain Collaboration Among Grocery Manufacturers 29
Timothy M. Laseter and Elliott N. Weiss
Supply Chain Management in the Chemical Industry: Trends, Issues, and Research Interests
Hong Choon Oh, I.A. Karimi, and R. Srinivasan
Berth Allocation Planning Optimization in Container Terminals
Merchandise Planning Models for Fashion Retailing
Kumar Rajaram
Supply Chain Management in the Presence of Secondary Market
Hau L. Lee, Barchi Peleg, Seungjin Whang, and Yan Zou
Global Diffusion of ISO 9000 Certification Through Supply Chains
Charles J. Corbett
Risk Management in Global Supply Chain Networks
N. Viswanadham and Roshan S. Gaonkar
Trust and Power Influences in Supply Chain Collaboration
Preface vii
Foreign Direct Investment or Outsourcing: A Tax Integrated Supply Chain
Decision Model
Integrating Demand and Supply Chains
Puay Guan Goh
Mumbai Tiffin (Dabba) Express
Natarajan Balakrishnan and Chung-Piaw Teo
vi Contents
N. Viswanadham and Kannan Balaji
Index 279

Preface
Supply chain academic research has traditionally focused on the interaction of information and processes, with goals of streamlining the various activities within the supply chain to obtain the optimal or desired outcomes.

Most of the insights, however, were obtained under the ideal situation where the settings are the most general. Practitioners, on the other hand, have focused on developing cost effective solution strategies on the ground, to adapt to local and industry specific conditions. The chapters in this handbook are compiled with the intent to bridge this gap.

In the first chapter (Supply Chain Configurations of Foreign Cosmetics Companies Operating in China), Fang et al. examined the issues of supply chain design, from the perspective of foreign cosmetic companies operating in China. They examined the market potential of this industry, and propose three major supply chain configurations in this industry (Direct or Indirect Export of Finished Goods, Outsourced Manufacturing, or Offshore Manufacturing). They further examine the various supply chain issues associated with each configuration. The chapter blends extensive industry surveys with a comprehensive framework and extensive list of issues to spur future research in this area.

In the second chapter (Structural Supply Chain Collaboration Among Grocery Manufacturers), Laseter and Weiss continued this theme, and examined the issue of supply chain coordination among the grocery manufacturers. Most notably, they quantify the opportunity for strategic, multilateral collaboration through a shared distribution network. This moved one step beyond the current focus on CPFR and VMI, which are essentially collaborative efforts focusing on inventory turns and service performance. Oh, Karimi and Srinivasan (Supply Chain Management in Chemical Industry) looked at the supply chain issues in the chemical industry. The chapter identified several unique characteristics, emerging trends, and operational issues of the industry and proposed new research agenda.

Dai et al. (Berth Allocation Planning Optimization in Container Terminal) examined the issue of supply chain efficiency in the container terminal environment. In this chapter, they focused on the issue of berth planning, a key step in the port operating environment. They propose a class of policies to optimize the use of berthing space, to minimize lateness and delays to vessels, and to achieve the optimal usage of space in the terminal. The model is tested and validated using data from a real container terminal. In the fifth chapter (Merchandise Planning Models for Fashion Retailing), K. Rajaram developed strategies to improve the accuracies of merchandise testing in fashion retailing. For instance, he found that some of the variations of the sales of a product mix can be explained by store descriptors, and used this observation to develop a new merchandising process. He tested the ideas on a large women’s apparel retailer, and a catalog retailer, and reported significant savings using the proposed models.

In the sixth chapter (Supply Chain Management in the Presence of Secondary Market), Lee et al. examined the impacts of online secondary market on the operational issues of a supply chain. This problem has become more prevalent, with the proliferation of E-marketplaces. They characterized the optimal responses under various scenarios (e.g. when manufacturers intervened in the secondary market), and identified the key roles played by the secondary markets in the supply chain.

C. Corbett (Global Diffusion of ISO 9000 Certification Through Supply Chains) looked at the contribution of globalized supply chain to the diffusion of ISO 9000 certification, using data from a global survey. He concluded that the diffusion of ISO 9000 started primarily in Europe, and spread to other countries as the European firms pressured their suppliers to seek ISO 9000 certification. This chapter highlighted the role of supply chain on the diffusion of management practices in the industry.

Viswanadham and Gaonkar (Risk Management in Global Supply Chain Networks) looked at a timely issue – the impact of risk and disruption in supply chain. They developed a framework and classification to handle supply chain risk management issues. They developed mathematical models, built on mapping of exceptions and consequences using fault trees and event trees, to design robust inbound supply chains that are resilient to deviations and disruptions.

They distinguished between two types of trust – competence and benevolence, and five types of non-coercive power, and studied their impact on firm’s predisposition to sharing information and know-hows. They identified competence-based trust as more important for know-how sharing.

Viswanadham and Balaji (Foreign Direct Investment or Outsourcing: A Tax Integrated Supply Chain Decision Model) examined the impact of taxes on supply chain planning. More specifically, they analyzed the model by incorporating tax-holidays enjoyed by locating the various stages of the supply chain in FTZs. This has become an important concern for supply chain planning, as FTZ is a strategy being used by many developing countries to attract FDI.

(Integrating Demand and Supply Chains). He expounded on the needs to synchronize supply with demand chain, and explained the difficulties in doing so with case studies from firms based in Asia.

In the last chapter, Balakrishnan and Teo (Mumbai Tiffin (Dabba) Express) looked at a marvelous distribution system based in India – a system perfected by a group of illiterate workers, without the aid of modern technology and expert advice. The system relies solely on a primitive coding system, and the reliable railway system in Mumbai.


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