We present an optimal methodology for synchronized scheduling of production assembly with air transportation to achieve accurate delivery with minimized cost in consumer electronics supply chain (CESC). This problem was motivated by a major PC manufacturer in consumer electronics industry, where it is required to schedule the delivery requirements to meet the customer needs in different parts of South East Asia. The overall problem is decomposed into two sub-problems which consist of an air transportation allocation problem and an assembly scheduling problem. The air transportation allocation problem is formulated as a Linear Programming Problem with earliness tardiness penalties for job orders. For the assembly scheduling problem, it is basically required to sequence the job orders on the assembly stations to minimize their waiting times before they are shipped by flights to their destinations. Hence the second sub-problem is modelled as a scheduling problem with earliness penalties. The earliness penalties are assumed to be independent of the job orders. / Singapore-MIT Alliance (SMA)

We consider the optimization problem of safety stock placement in a supply chain, as formulated in [1]. We prove that this problem is NP-Hard for supply chains modeled as general acyclic networks. Thus, we do not expect to find a polynomial-time algorithm for safety stock placement for a general-network supply chain. / Singapore-MIT Alliance (SMA)

The future has always caught the attention of the human being. The thirst of exploring the future and to know the unknown has driven the human being toward innovativeness. Companies are expanding their operations worldwide since the past few decades. Profit growth coupled with an effective strategy has become the primary need of global companies. Research in this area has given rise to optimization of the supply chain for higher profitability. Considering the overall strategy the company needs to plan production well in advance. The operational planning comes in picture at this moment. In order to reduce excessive inventory at each stage of the production; one should know the demand of the next stage and preferably the end customer demand. The process of sales forecasting is undertaken to predict demand at different stages. It is a complex managerial function and hence needed to be undertaken by a scientific way. The sales forecasting the function includes process of forecasting, administration, hardware, software, users and developers of forecast. Historically sales forecasting has been considered as a side activity by most of the companies. Sales forecasting has not been considered as an important function of marketing and finance. Very few companies have seen sales forecasting by a scientific management point of view. Less research has been reported in sales forecasting in comparison to other managerial functions. Planning based on sales forecasting; may be part of a selected strategy for growth and profitability. These facts have attracted us to study sales forecasting as a managerial function. The purpose of this study is to describe and analyze the sales forecasting process, sales forecasting system, sales forecasting methods and techniques. Further proposing possibilities of improvements in existing forecasting process is also purpose of this study. We have selected three manufacturing companies for this study based on purposive sampling. Considering research interest in phenomenon study; we have selected a qualitative research strategy for this study. We have selected a case study method for our research as it is the most appropriate tool to study the relation between theory and phenomenon. For this research, we have collected the data by semistructured interviews based on a pre formed questionnaire. The questionnaire has been prepared with respect to our research purpose and open ended questions were used to gather extensive data. The data gathered during interviews, have been analyzed by the use of ‘Flow model’ suggested by Miles and Huberman (1994). Results from this study shows that there is a need to see ‘sales forecasting’ as a management function rather than a computer activity. To achieve the best information integration throughout the supply chain, increased information visibility is needed. To achieve accuracy in both forecasting and planning; collaborative forecasting may be used. Forecasting software needs to have a suite of methods towards product specific forecasting. The need of customized softwares has also been indicated by this study. The need to measure performance of forecasting by means of accuracy, cost and customer relationship has been concluded.

This thesis aims to evaluate measurement techniques for delivery precision at Holmen Paper (HP). Delivery precision is an important KPI for a business, because it gives an indication of how well the company’s  supply chain is performing. At HP, the Operation and Logistics division, wants to use the result  to  assess  that  if  they  are  doing  a  good  job  planning  HP’s  production  and  transportation.   The purpose of the thesis: “The  purpose  of  the  thesis  is  to  determine  how  the  KPI  delivery  precision ought to be measured for  various  order  types  in  Holmen  Paper’s  supply  chain.” A great deal of literature was initially reviewed on the subject of delivery precision, and different sources suggested alternative ways in which it may be determined. To understand the logistics and information flow, two flow-charts where constructed. This was done in order to obtain a holistic overview  of  HP’s  order-delivery process, and furthermore, to see where the required data could be retrieved from the system. After evaluating the supply chain, it was concluded   that   the   SCOR   models’   pre-defined Key Performance Indicator Perfect Order Fulfillment (POF) and Perfect Order Index (POI), were the best way to measure the delivery precision. Both theories are well known in the logistics sector and both are built upon lower level metrics. The metrics measure if an order is delivered satisfactorily to a customer, according the parameters of time, quantity, quality and documentation. The thesis, however, rejected the parameter of documentation in dialogue with HP (and because the parameter has little to do with the operators work at Operation and Logistics). Data  was  collected  from  HP’s  database  in  an  attempt  to  measure  the  delivery  precision  according  to   both the theories. However, it was concluded that the calculated value was unreliable. This was mainly due to fact that the data required did not exist, and the data that did exist was not reliable. The data was seen as unreliable because there was no information of when the data was collected along the supply chain. Therefore, the thesis presents a model that will help HP implement the KPI delivery precision in the future. At the completion of the study, it was concluded that HP, initially, needs to implement a system to save data regarding the reason and source of order modifications. Additionally, it is suggested that HP should try to measure the delivery precision as close to the customer as possible. Currently, the data required to do this does not exist. To obtain this data, HP needs to implement some sort of receipt when the customer receives the goods.

Bakgrund Johan Andersson som är inköpschef på PEAB menar att det finns förbättringsmöjligheter för beställningsprocessen av betong. Informationsflödet i hela försörjningskedjan, som består av PEAB, Swerock och BASF, är bristfällig som enligt parterna leder till kapacitet- och ledtidsproblem i försörjningskedjan. Syfte Syftet med den här uppsatsen är att undersöka hur beställningsprocessen av betong ser ut i försörjningskedjan, samt att lokalisera vilka delar i processen som har förbättringspotential med avseende på information-, kapacitet- och ledtidsproblem. Även att undersöka vilken materialplaneringsmetod som är mest lämplig i försörjningskedjan under de nuvarande förutsättningarna och om någon förutsättning måste ändras för att en implementering ska vara genomförbar. Likaså är syftet att undersöka vilken inverkan den eventuellt nya materialplaneringsmetoden får på försörjningskedjan. Slutsats Det återfinns förbättringspotential i försörjningskedjan med hänseende på informationsflödet. För att den valda täcktidsplaneringen ska kunna implementeras i försörjningskedjan måste några av de nuvarande miljöplaneringsfaktorerna ändras.

Saab Microwave Systems (SMW) is a business unit within Saab AB that manufactures and develops different types of radar- and sensor systems for naval, airborne and ground based forces as well as within the market for civil security. In addition to the manufacturing of radar and sensor systems they also provide different types of service concepts. The business unit has 50 years of experience within the area of developing radar systems and is considered to be one of the market leaders. When applying an assemble-to-order production strategy with products at this level of cost price the product lead-time is vital and becomes an important part of the strategy within marketing and sales.   Within SMW there is a new department called Supply Management (SM) that provides the supply of incoming and outgoing material. Within SM there are four sub-departments working with activities such as planning, purchasing, receiving inspection, storage and distribution. Today, the supply process is relatively inefficient and there are delays in the flow due to suddenly arising problems. These delays generate big problems since SMW applies a just-in-time purchasing strategy. Based upon this problem the major purpose of this thesis work is to perform an analysis of the material flow in order to identify problems and contribute to a more efficient supply process.   When the problems were identified the authors in consultation with the management choose to give priority to one problem in order to have a more finite focus regarding the analysis. The most serious problem that are given priority to is the receiving inspection since there is a lack of proper measurements, the planning is inadequate, the level of inspection is to high as well as uncontrolled, the inspections are based upon subjective appraisals and there is a lack of storage space. Within this problem there will be an extra focus upon the level of inspection even though the other problems will be given thought as well. When this problem was chosen as the main area of focus the authors took the level of importance and usefulness for the company into consideration, what came up during the analysis of the material flow as well as what the authors considered to be the best area of focus given existing conditions.   The suggested improvements presented by the authors mainly consist of two areas regarding the level of inspection. The first suggestion consists of a filtering model that through a set of parameters are able to decide whether a specific article should be going through a reduced level of inspection or not. The second suggestion consists of a model that the company could use when they are phasing in new suppliers or improving existing ones. The purpose of this model is to create a close collaboration between important suppliers and SMW in order to reach a higher level of quality on the incoming material. The reason to why this model is created is due to the fact that the company has a very high level of inspection regarding incoming material today since the quality in many cases is faulty. By using this model the authors' ambition is to reduce the risk of defectives reaching SMW by supplier collaboration and this way oppose defectives earlier in the material flow. In addition to these suggested improvements the authors also suggest some thoughts and ideas regarding what is needed to be taken into consideration in order to reach a better planning and how the work efficiency within the receiving inspection department can be improved. / Saab Microwave Systems (SMW) är en affärsenhet inom Saab AB och de tillverkar och utvecklar idag olika typer av radarsystem för luftfart, markbaserade enheter samt inom det marina. Företaget tillverkar och utvecklar även radarsystem inom marknaden för civil säkerhet. Vid sidan av tillverkningen av radar- och sensorsystem erbjuder företaget även intilliggande servicekoncept och eftermarknadsservice. Enheten har 50 års gedigen erfarenhet inom området radarutveckling och är ett ledande företag på marknaden. Med en kundorderstyrd produktion av produkter i denna höga prisklass blir ledtid en viktig del av marknadsföring och försäljningsargumentation vilket innebär att materialförsörjningen är vital för framgång.   Inom SMW finns idag en nybildad enhet, Supply Management (SM), som ombesörjer materialförsörjningen av gods till och från SMW. Inom denna enhet finns fyra undergrupperingar; planering, operativt inköp, ankomstkontroll och förråd samt godsmottagning och spedition. I dagsläget fungerar inte materialförsörjningen som önskat utan det uppstår ofta brister och förseningar i flödet, något som skapar stora problem då SMW i så hög utsträckning som möjligt försöker tillämpa inköpsstrategin just-in-time. Med hänsyn till detta är examensarbetets främsta uppgift att göra en flödesanalys i syfte att identifiera brister och effektivisera materialförsörjningen.   Efter att ha presenterat en bristidentifiering, baserad på en flödeskartläggning, har författarna i samråd med ledningsgruppen för enheten Supply Management valt att prioritera en brist för att ha ett konkret fokusområde för arbetet med analys och förbättringsförslag. Den allvarligaste bristen som prioriteras för vidare arbete är en ineffektiv ankomstkontroll där det saknas vettiga nyckeltal och verksamhetsmätning, där planering och resurssättning sker utifrån osäkra data, kontrollomfattningen är hög och okontrollerad, kontrollerna baseras på subjektiva bedömningar samtidigt som det råder utrymmesbrist i lager och förråd.  Inom denna brist läggs extra fokus på kontrollomfattningen även om övriga problemområden också tas i beaktning i ett vidare arbete. När fokusområde valdes togs hänsyn till vad som framkom i bristidentifieringen, vad som var viktigast och mest kritiskt för SMW samt vad författarna ansåg sig kunna prestera utifrån gällande förutsättningar.   Författarnas förbättringsförslag består främst av två huvudområden kopplade till kontrollomfattningen. För det första presenteras en filtreringsmodell som genom ett antal parametrar sorterar artiklar efter huruvida de bedöms kunna genomgå en lättare (billigare och mindre resurskrävande) kontroll eller inte. Det andra förslaget är en modell för hur företaget kan arbeta när de fasar in nya och/eller utvecklar utvalda leverantörer med hög inverkan i syfte att skapa ett nära samarbete där högre kvalitet kan uppnås. Syftet med framtagning av modellen samt dess utformning grundar sig i att kontrollomfattningen som utförs på SMW är kopplad till inkommande kvalitet. Utifrån detta perspektiv vill författarna genom denna modell reducera riskerna för dålig inkommande kvalitet tidigare i materialflödet genom ett organiserat samarbete. I tillägg till dessa förslag presenteras även idéer och tankar på vad som bör tas i beaktning för att kunna uppnå en bättre och mer sanningsenlig planering samt hur arbetseffektiviteten kan höjas genom att tillsätta en administrativ- och teknisk roll på ankomstkontrollen.

Supply chain management addresses the management of materials and information across the entire chain from suppliers to producers, distributors, retailers, and customers. In the past few decades, scholars gave ample attention about the impact of inventory on Supply Chain Management (SCM). Roughly speaking, research on supply chain management has been mainly focused on three major issues. One is the behavior of information flow; the second issue deals with inventory management; the third issue is orientated to planning and operations management. In this paper the second issue, namely inventory management will be discussed. The author will follow the phases of classifying inventory; identify cost factors; assess cost components; calculate EOQ; giving suggestion and effect of inventory on supply chain will be discussed. The result is going to become clear under the analysis of two alternatives by using MCDM (Multiple Criteria Decision Making) method. The conclusion is when optimizing the inventory management, both up stream and down stream activities will run effectively.

No description available.

No description available.

Postponement as a tool of creating flexibility is not a new concept. It traces back in literature to the 1950’s but was mainly argued as a method useful for manufacturing. However, postponement could potentially be used in all different parts of an organization to delay certain activities, and thereby create flexibility, which is crucial in today’s volatile marketplace. Customers are requiring customized products, yet they are not willing to pay premium for processes involved. Also, competition is increasing, as retailers around the globe compete with each other due to internet and improved information systems. This study focuses on a retailer’s perspective in the supply chain, as previous studies mainly discuss manufacturers, and their different abilities of achieving flexibility. Supply chain management as a concept are discussed, which is described as an integrative approach to dealing with the planning and control of the materials flow from suppliers to end users. This will further be “extended” to demand chain management, where focus lies at customers’ demand and puts emphasis on the needs of the marketplace and identifies the roles and tasks to be designed in the supply chain to satisfy these needs, instead of starting with the supplier/manufacturer and working forward. This is closely connected to flexibility, and postponement as a tool to achieve this. Flexibility as such, is described as the ability to change, or adapt to customer demand. This study aims to explore the Swedish retailing business, and their use of postponement strategies. A quantitative study has been made to be able to create a general picture of their use of this tool, as well as their prerequisite for adopting this tool. This study shows that retailing in general do have adopted strategies for customizations except non-specialized stores where answers to a wide extent differed regarding their use of flexibility. However, these strategies mainly regard packaging, and/or basic customizations. Depending on the market certain retailers are active within; postponement is used in various extents. Expensive products, or customers requiring big quantities of products, are able to get these customized. Money is almost always the main concern in these adaptations. Some factors that have been studied, that were enablers of flexibility and postponement strategies, were not able to be analyzed as very low results were calculated. However, the main-factors: flexibility and postponement were able to be analyzed in detail, as well as discussions regarding the inconclusive data gathered.