Supply chain logistics and information flow management Date: 2004-12-15 news source: "China Management Science" Author: Wangcheng En News Views: 131
-------------------------------------------------- ------------------------------ Contents] Supply Chain Management Enables companies to work with other enterprises in changing market conditions , Acquire the collective competitive advantage. This article first discusses the relationship between the definition and definition of the rear duty and supply chain management. This article believes that the core of supply chain management is the control of logistics and information flow. Logistics control decisions mainly include inventory supplement and transportation path planning, and facilities place planning in strategic levels. Information flow management leapshends to integrate related applications and businesses. The Dynamic Alliance coordinates the production and operation activities within the enterprises, strategically determines the configuration of logistics and information flow. English Abstract Supply chain management, closely correlated with logistics, allows firms to effectively cooperate with their partners, gaining collective competitive advantages in the changing markets.This paper begins with discussing the concepts of logistics and supply chain management, and their intrinsic relationships. It is argued that sophisticated coordination of material and information flows is with facility locations.Information flow management the kernel of supply chain management.The operational coordination decisions on material flows mainly concern with inventory replenishments and transportation routing.The strategic decisions controlling material flows mainly concern integrates business applications across both department borders and company boundaries.Dynamic alliances synchronize activities in many companies, strategically configuring material and information flows in the supply chain.This paper identifies the obstacles in managing the flows and further indicates the promising approa Chees to Break Through THESE OBSTACLES. 供 供 管理 管理 管理 地 地 联 变 变 变 变 变 变 制 制 制 制 制 制 制 制 制 制 制 制 制 制 制 制 制All aspects, change makes market demand extremely uncereten, and it is impossible to perform accurate forecasts. Many new manufacturing patterns have been made to meet the challenges of market changes (Bussmann, 1998). Therefore, in many academic conferences, seminars and round tables, people continue to introduce various manufacturing methods technology. In the boom of the latest manufacturing strategy, the supply chain management (SCM) has obtained special attention. Supply chain management originated from logistics management.
Historically, logistics is considered a secondary role, rarely gets the status of the corporate management, the quality is low; the logistics function is sometimes dispersed in different organizational units (Ross, 1998a). However, facing today's global market changes, the company must re-audit the supply channels of entering and outflow, and the corresponding operational value and management strategy. There is a variety of reasons to promote company investment improvement of supply chain management. Efficiently manage supply networks is the premise of rapid response to customer needs of the global market. Market Globalization has caused manufacturing activities including materials, processing, assembly and distribution, implemented throughout the world. With the globalization of sustainable development, the link between enterprises and the environment (ie supplier, subsidiary partners and customers) is more close. The previous management model focuses on adjusting the various capabilities in the internal business process, increasing market value. Instead, supply chain management enables companies to integrate external environments (customers, suppliers and partners) resources, improve competitive advantages (Ross, 1998B). SCM indicates that the operation focus is transferred from the company to a comprehensive optimization of a strategic alliance. Today's companies are more interdependent, which is convenient for collective competitiveness. There is no successful cooperation with other companies and lasting partnerships. No company can get all the competitiveness survive in a changing market. The development of supply chain management has two basic motivation. A wide range of logistics research and application practices are the inherent motivation of SCM development. In the past, people have achieved a large number of academic achievements and practical progress in the field of logistics, such as inventory supplements, facility layout, vehicle routes and scheduling. Many excellent algorithms have been developed in the recent research work to efficiently solve NP complete combined optimization issues with practical application value scale. The research progress of these operating hies has prompted people to study the logistics issues that were previously dispersed in an integrated manner, but also advanced to the enterprise alliance. Information technology is an important external motivation for rapid development of supply chain management. In the last twenty year, the computer system is widely used in all manufacturing areas including the logistics department. Computer network infrastructure provides platform to support logistics in the company, and is gradually crossing the boundaries of the company. Information technology supports a company to effectively manage their partners and customers in the current virtual environment. 2 The definition of post-duty and SCM has made a hard effort in SCM, and the interest in SCM research and application gradually is growing. No doubt, logistics is the most important technical term with SCM. Like most management terms, there are always many ways to understand these concepts. Logistics is a word in the origin of French, from the verb "Loger", and it is first used in military aspects (JourNet, 1999). In the 16th century, the French army set up a logistics department, transported a large number of soldiers, horses and other equipment on the battlefield. In the Second World War, the supply management has become the main challenge of the US military far from the local base. Therefore, logistics has gained highly valued to obtain extensive research and apply in military material procurement and transportation. Now, logistics is still a very important feature that supports military exercises and operations. According to BlanCharel (1992), the US Air Force's technical report will define logistics as a plan and implement the science of military exercise and maintenance. In the most comprehensive sense, logistics involves (a) design, development, purchase, exercise, distribution of materials. , Maintenance, evacuation and treatment, etc .; (b) personnel transportation, evacuation and ambulance; (c) procurement or construction, maintenance, operation, and disposal of facilities; (d) obtaining or providing services.
After the Second World War, in order to efficiently manage material procurement, storage, transportation and facility location planning, the US will first introduce the industrial sector. Since then, logistics is gradually recognized in the global industry. According to reports, many of the economic areas have achieved good results in many sub-duty research projects and application projects. Logistics has developed into a basic theory that supports transport decisions, storage, inventory supplementing and facility location planning. In order to avoid confusion with military postpartum, people sometimes use terms such as commercial backstartments, enterprises and back diligence and industrial work. Perhaps the most popular is the logistics definition consisting of 7R: the correct product, the correct number and the correct situation, the correct place, in the right time, for the right customer and the correct price (Ross, 1998a). The board of logistics management (CLM) defines logistics as a process of effective planning, implementing and controlling goods, services, and information flow. It includes all the processes from the origin points to the consumption point to meet the requirements of the customer. Recently CLM resends the logistics as part of the supply chain management (CLM, 1999). The supply chain is a network consisting of autonomous or semi-autonomous business entities, jointly responsible for raw materials procurement, production and distribution activities of several product families (Jayashankar, 1996). The supply chain is a network of suppliers, factories, warehouses, distribution centers and retailers, and conduct raw materials procurement, transformation, and delivery to customers in this network. Supply Chain Management is a decision to optimize supply chain performance (Teigen, 1997). The main difference between SCM and logistics is that they use different angles to similar problems. For example, logistics mainly considers supply, storage, and distribution from a company's perspective. Logistics works other companies as an interface relationship, without deep understanding of other companies. SCM will be a business partner as a business partner, requiring close collaborative control of all node activities of the supply chain. Second, logistics emphasizes a company's local performance optimization, and uses the methods of operation and research. The SCM regards each company as a node in the supply network, and pursues the global performance optimization of multiple enterprises through close function coordination. Logistics is often the operational level, while SCM is more concerned about strategic issues. Most logistics research projects are to process NP complete combined optimization issues. Typically, these issues are isolated from their environment, regardless of the relationship with other enterprise functions. Under information enable technical support, SCM uses a comprehensive approach to research. Most SCM research efforts focuses on global models, information integration, organizational structure, and strategic alliances. In general, the supply chain is a network consisting of operating entities, including suppliers, manufacturers, dealers and customers. This network is responsible for transforming the raw materials into products and sent these products to customers. Supply Chain Management is a decision-making method that effectively controls various streams in this network, where the control of logistics and information flow is key. 3 Logistics Management Logistics is a physical movement from the supplier through manufacturers and distributors through many intermediate warehouses to customers. Facilities location, inventory and transportation are three main factors that effectively control logistics. The location of the facility is the location where the material is parked and transit, and is a critical node that determines the shape of the logistics. The facility location mainly includes the warehouse of factory and storage materials for processing materials, which are largely affected by logistics. Effective factory and warehouse locations are an important source of enterprises to obtain rapid response to customer demand in the global market. In practical environments, material supply cannot be delivered instantly, therefore requires time intervals to process orders, prepare and handling materials. People usually use inventory as a buffer to meet continuous needs and adjust the effects of emergency needs. Inventory maintains continuous production and improves customer service level. Transportation is a means of connecting these dispersed plants and warehouses, which is considered to be based on materials distribution and our daily lives. Traffic is performed between suppliers, manufacturers, dealers' warehouses and consumers.
3.1 Inventory Supplement and Vehicle Path Planning Inventory Occupied Enterprises A large amount of funds, excessive inventories worsen the company's economic situation. Therefore, in the case of satisfying production requirements, people are controlled at the low levels of power. Inventory control can be divided into single-stage inventory control and multi-stage inventory control. The first procurement strategy of single-stage inventory is based on an inventory supplementary model of economic order quantity (EOQ). The EOQ method first determines the order point and further determines the order quantity. The costs considered in most EOQ models include order fees, inventory maintenance costs and order lagging fees. In most EOQ models is constant, and unit prices are independent of the number of orders. The second single-stage inventory procurement strategy is called a continuous cycle inventory model. This method determines the best inventory time interval instead of an order point. With the advancement of computer technology, the inventory supplementary technology called distribution demand planning (DPR) has been recognized in the industrial community since 1970. Different from the use of statistical calculations to determine the order release time and the number of inventory supplementary methods, DRP determines the demand for each time period. The same logic as MRP, the DRP calculates the rough demand and net demand. There are two common methods in multi-stage inventory control: install reserve strategies and multi-level reserve policies. AxSater and Rosling Research (1993) showing multi-level reserves in continuous assembly systems better than installing reserves. Multi-level reserve strategies are suitable for long-inventory advance periods, that is, the warehouse supplementation in a relatively far future to meet the retailer orders. Instead, the installation reserve strategy seems to be better than multi-level reserves in the premium period period during short warehouse (AxSater, 1996). Recently, people have expanded a lot of basic inventory models to include more constraints (Guder, 1999). For example, the order in advance is often changed rather than constant (LAN, 1999), and the demand can be random (Flynn, 1997). The model can consider reducing the actual "learning effect" in the product procurement cost (LOERCH, 1999). In most inventory procurement and control models, the value of the inventory project is considered to change over time. However, in fact, due to factors such as physical deformation and chemical reactions, certain quality deterioration and depreciation are inevitable. This is especially true in the seasonal production industry, such as food, cloth and furniture, etc. Quality reduction effects are usually expressed as linear or index forms (Giri, 1996). Calculating the quality degradation effect of the inventory project is important to the actual value of the company's strict control inventory rather than nominal value. One of the main difficulties in calculating the quality degradation of inventory projects is to accurately express the degradation effect as a math function. The quality degradation effect is related to the nature, time interval, environmental conditions such as temperature, humidity and ventilation). For example, seasonal sales market changes also affect the value of the reserve project. It is very difficult to find that the mathematical model of the quality degradation process of the inventory project is very difficult. Accurately calculate the quality degradation effect will require additional subjects (such as chemical) and updated market information. The main purpose of transportation is to reduce transportation in the case of ensuring that all warehouses have necessary inventory. Optimization in complex geographic networks determines that the vehicle line is the core problem of transportation services. Reducing the transportation reliance optimally determines the vehicle path in the network composed of the inventory node, optimally arrange the departure time of the vehicle, and the effective use of vehicles (Bertazzi, 1999). A classic routing problem is the optimal traffic line from the source node to a destination node on a network to minimize the flow costs that are proportional to the distance. The key to this problem is to calculate the shortest path between the source node to the destination node on the traffic network. In the literature, many of the shortest paths have proposed a number of options to engineers and technicians (Zhan, 1998). Extension of this minimum cost flow problem constitutes the "Travel Salesmen" (TSP) "we often encounter, in which the vehicle has access multiple destinations from the source point and finally returns to the source point. In fact, more variables need to consider more variables in transportation in addition to demand and transportation time. Therefore, researchers gradually expand the previous model to include more constraints, and obtain more in-depth understanding of transportation. In the TSP model, the time window constraint can limit the time interval of the node accessed.
Recent research work uses dynamic programming techniques (Mingozzi, 1997) and constraints (Pesant, 1998), developed an accurate algorithm for travel salesperson issues with time window. 3.2 Strategic Facilities Location Planning Facilities Location Problems Summary from many specific application examples, for example, plant locations and warehouse locations, etc. Although people do not often perform decision planning of facility locations, the facility location planning has strategic significance when constructing supply chain. Facility location constitutes a physical configuration of logistics and information flow. There are many factors for domain decision making, such as favorable labor resources, near market, close to resource suppliers, etc. (Krajewski, 1999). In practice, strategic facility location decisions are often planned by the board of directors, using some simple methods (such as location factor assessment), analyzes the aggregation factors (Russel, 1998). The advantages of such technologies are Direct and consider numerous strategic factors. The insufficient lack of experience in experience is the lack of detailed operation analysis and cannot find the best solution for the goal. Therefore, it is of particular importance based on the location decision method for analyzing mathematical models. In 1909 Alfred Weber considers establishing a single warehouse to minimize all the distances between it and several customers, the research of facility location planning is officially started (Owen, 1998). In the general case, the positioned facility is used as a point without considering its geometry. But there are also situations where the positioning facilities cannot be ignored (MESA, 1996). Basically considers two costs during the facility location: fixed installation costs and transportation costs with distance (time) and material quantity. The location of the location is often varied depending on the constraint and performance goals to reflect the approximation of various realities. Based on the number of positioned facilities, this problem can be divided into a single facility and a variety of facilities. In a single facility location model, a factory or a central repository is positioned while minimizing transportation costs from which several customers are supplied (Hamacher, 1996). Studies on a single facility location have high academic and practical significance. Because the method of single facility location issues can usually scale to solve the problem of multi-facility location. Multi-facility location models solve the problem that exceeds a facility needs to be established (Padberg, 1996). The facility location model can be non-capacity constraints (TCHA, 1995) or capacity constraints (HINDI, 1999) in accordance with whether the facility is restricted. In most cases, the latest facility will provide products and services to the existing facilities. However, there is also a new facility to compete with existing facilities to provide products or services (INFANTE-Macies, 1995). The facility location model can be static (Chiang, 1998) or dynamic (Owen, 1998). The static facility location model will be demand (material flow) as a constant. Most conventional facility location models are static, and their input data (such as demand and distance) is a fixed constant. In many cases, these models are unrealistic because they can't reflect the basic changes in the market. Dynamic facility location model will demand (material flow) as a variable (Tombak, 1995). The customer demand in a specific location usually changes over time, and the facility location configuration cannot be optimally guaranteed for a long time. In addition, the optimal plan to interference generated by the static facility location model is sensitive to the change in input parameters. The research and time-related reconfigurable facility location model is of great significance in academic and industry.
4 Information flow management At present, almost all manufacturing processes cannot be independent of computer applications, and the information integration technology plays an important role in the supply chain. In-corporate SCM needs to be integrated with non-logistics functions including engineering, quality and production programs. Product Engineering determines the function and configuration of the product, it has been completely independent of logistics / SCM function. In order to quickly provide specific customer-conscious products to the market, the recent parallel engineering technology requires companies to consider the previously served issues. When the function of upstream and downstream is merged in a working stage, people find that the product engineering is integrated with logistics / SCM. Establish interfaces and cooperation between designers and logistics people, which can make logistics in the early stage of product design and development in parallel engineering environments (Dowlatshahi, 1999). The product solution is not only determined by engineering and production factors, but also must consider factors in post-duty / SCM (Hatch, 1999). The integration of logistics and product engineering allows logistic personnel and engineers to share their knowledge and consider product development process from a unified perspective. It will help engineers take into account material acquisition, product packaging, storage and transportation from product design. On the other hand, product data management and SCM integration support SCM staff work efficiently with suppliers and other partners. Integration of SCM and quality control is another important aspect. Product quality is a key factor in competitiveness, and quality control is a more important factor in the supply chain. Quality issues in the upstream nodes of the supply chain will greatly affect the quality of the product of the downstream node. Therefore, quality improvement requires precision collaboration and comprehensive quality control standards. This means that all companies in the supply chain must use compatible quality systems, patterns and tools. The ISO9000 is the most promising system that consolidates the quality of products and services in the supply chain. Today, following ISO9000 is the basic standard when evaluating and choosing a third-party company service. Implementing ISO9000 is a basic guarantee for a company to provide acceptable product or service in the supply chain. Another significant development direction is the integration of supply chain management and corporate resource planning system (ERP). The ERP system is widely used in manufacturing companies' operation and production management, and its installation is stable. The supply chain management system implementation will inevitably conflict with the existing ERP system. If the SCM supporter and ERP support take the "self-centered" attitude, an obstacle is generated between the two. The current ERP system expansion covers many logistical functions, so some companies believe that SCM is small to their business. On the other hand, the suppliers of the SCM application system also degrades the ERP role and strives to compete with ERP. In order to overcome this obstacle, people must maintain a more comprehensive and comprehensive view of the company's production operation process. Although SCM and ERP have made some intersections on application functions while working hard to expand business, they are two different complementary management philosophy. They need the other party data output, so this two application system sharing consistent information view is important. In the future, people will develop a integrated application architecture including SCM and ERP. However, current research efforts should be directed to the integration between ERP and SCM. Information integration between enterprises in the supply chain is responsible for information sharing between partners, suppliers, manufacturers, and customers. Information integration guarantees controlled access to distributed information sources and supports coordination of dispersed functional activities. Obviously, there is a close relationship between the local decisions of each enterprise organization in the well-running supply chain. For example, production plans within a company need to consider the impact of its partners. A manufacturer's production plan needs to coordinate with its main suppliers, foreign partners, and distributors. Manufacturers should negotiate with its partners and decide the supply and distribution program to ensure their feasibility of their production programs. Naturally, all companies, including suppliers, manufacturers, and distributors, try to optimize their own performance, which will sometimes contradict each other. Therefore, activities within the entire supply chain must be coordinated. The agent-based model and the CORBA standard are the main method for information integration and coordination in the supply chain.
5 SCM Alliance Strategy Dynamic Alliance is a strategic decision, which fundamentally determines the configuration of logistics and information flow. In the past decade, a large number of cooperative relations have been established between manufacturing industries and enterprises. The main reason for establishing these partnerships is that there is no single company to complete all activities to provide products and services to the market. Dynamic Alliances are often associated with specific industrial projects. In order to obtain collective competitiveness, companies will establish a league with another company. These alliances are often temporary and non-static, with environmental conditions. A company decision in the close-up alliance will affect additional company decisions. In a company introduced new technologies and appropriate features, special requirements are often proposed to its partners (Zairi, 1998). A popular dynamic alliance strategy is to other company packages and parts. The package can utilize local cheap labor, easy to acquire material resources, and can reduce the transport chain burden on the transportation fee. In order to increase employment opportunities and taxes, local governments always develop a variety of preferential policies from additional zones to attract subscons. Confliers are usually possible to obtain many benefits from these preferential policies, such as tariff reductions, reduce business taxes and lower land lease fees. Many of the consulting companies on the transfer production study show that Western companies carry out the guarantees of the company, first in order to reduce indirect fees and short-term fees. In contrast, Japanese companies are first to improve their own process efficiency and quality, focus on less core capabilities, forming interdependent relationships, and closely maintaining key high quality and high value activities. The transfer production is not only to reduce labor and resource costs, but also an important strategy to open up the market. Foliage production makes products more customized and localized, and customers feel intimately for local manufacturing products. For example, Boeing Company is guaranteed to produce Boeing737 aircraft in a number of Chinese companies, and advertising in the Chinese market is a plane flying back home. The bucket production allows a company to focus on its core competence, and the uninterested activities will be packed to other companies. 6 Conclusions SCM is one of the important management strategies that enterprises can use external resources in a market environment that can use external resources. Effective management of complex logistics and information flow is a supply chain root task. There are many factors that affect the form and intensity of various streams in the supply chain. Inventory supplement and transportation is the operating layer decision making of logistics, facility location planning is a strategic decision for controlling logistics. The information flow plays a key role in the functional coordination of the supply chain. The management requirements of information flow realize the integration of the enterprise and crossing the business boundaries. In an environment of severe changes, the dynamic alliance is an effective way to get collective competitiveness, which affects the configuration of logistics and information flow in the strategic level.
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