Abstract   Problem discussion: The significance of the oil industry’s impact on the global economy is obvious. Oil supply chain management has to solve a lot of challenges caused by the nature of the supply chain in the oil industry such as complexity, inflexible characteristics, long lead time, limited transportation forms at the different stages in the supply chain, rigid take or pay procurement and limited primary distribution capacity. Other challenges are caused by unforeseen events such as political or economic changes which have an impact on the price of the oil. This thesis seeks to add value by signifying and indicating optimization as a way to address uncertainties and points out a way to utilize resources efficiently in order to gain further development and cost savings in the long term. Finding options for optimization of the oil supply chain is vital because any cost saving means vast amounts of money for the oil companies therefore optimization is at the centre of attention in the oil supply chain management. Purpose: The purpose of this thesis is to investigate supply chain management in the oil industry and find options for optimizing the supply chain in the oil industry by reviewing and analyzing previously written literature on the chosen topic for the research.  Method: A single case study was applied in this thesis. The company chosen for the case study is called MOL Hungarian oil and gas PLC and is located in Hungary. To carry out the research, a qualitative research approach was implemented. Primary data was collected through semi structured interviews via telephone and the internet with the company’s staff. In addition to this, secondary data from different sources such as articles and books were used to construct or build the theoretical frame of reference for the thesis.  Delimitation: The scope of the thesis is limited to the supply chain management in the oil industry and its optimization. Further narrowing the scope, this thesis gives more attention to the downstream section of the supply chain in the oil industry. Conclusion: Optimization is recognised as main tool for the oil companies to achieve competitive advantage. Analysing MOL Group gives a factual example how optimization works in an oil company and contributes to manage its supply chain efficiently and handle the many uncertainties surrounding the oil industry. It is demonstrated what factors play key role in optimization and how they interact with each other. MOL Group’s solution for optimization builds around a serious planning process, IT solution, marketing and refinery operation triggering and working in synergy with many other factors which cannot be excluded from the optimization process. Due to the excellence of supply chain optimization, MOL Group has a very strong presence and leading position in the East Central European region generating increasing profit margin year by year in last two decades.

Med större krav på effektivisering och pressade kostnader har VMI på senare tid blivit en allt mer tillämpad metod för att samordna aktiviteterna i försörjningskedjan. Mycket forskning har gjorts kring ämnet VMI och dess fördelar. Däremot har inte mycket skrivits om initiativtagande och hur dessa samarbeten uppstår. Syftet med uppsatsen är att undersöka företag som tillämpar VMI. Detta för att ta reda på vem, kunden eller leverantören, som tar initiativet till samarbetet och varför. Utifrån detta vill vi även identifiera konsekvenser kopplade till vem som tog initiativet. Genom vår undersökning har vi kommit fram till att kunden så väl som leverantören kan vara initiativtagare. Detta för att det finns vinster att göras för båda parter. Vi har kunnat identifiera att den främsta anledningen till initiativtagande är de fördelar som ses för det egna företaget. En annan bidragande faktor är även att företagen vill skapa långsiktiga relationer. Vi har genom vår studie inte kunnat identifiera några konsekvenser i samarbetet som är direkt kopplade till vem som tar initiativet. Däremot har vi sett indikationer på att den part som tar initiativet är den som ofta bäst lyckas påverka villkoren för samarbetet.

Algorithmic Framework for Improving Heuristics in Stochastic, Stage-Wise Optimization Problems Jaein Choi 172 Pages Directed by Dr. Jay H. Lee and Dr. Matthew J. Realff The goal of this thesis is the development of a computationally tractable solution method for stochastic, stage-wise optimization problems. In order to achieve the goal, we have developed a novel algorithmic framework based on Dynamic Programming (DP) for improving heuristics. The propose method represents a systematic way to take a family of solutions and patch them together as an improved solution. However, patching is accomplished in state space, rather than in solution space. Since the proposed approach utilizes simulation with heuristics to circumvent the curse of dimensionality of the DP, it is named as Dynamic Programming in Heuristically Restricted State Space. The proposed algorithmic framework is applied to stochastic Resource Constrained Project Scheduling problems, a real-world optimization problem with a high dimensional state space and significant uncertainty equivalent to billions of scenarios. The real-time decision making policy obtained by the proposed approach outperforms the best heuristic applied in simulation stage to form the policy. The proposed approach is extended with the idea of Q-Learning technique, which enables us to build empirical state transition rules through simulation, for stochastic optimization problems with complicated state transition rules. Furthermore, the proposed framework is applied to a stochastic supply chain management problem, which has high dimensional action space as well as high dimensional state space, with a novel concept of implicit sub-action space that efficiently restricts action space for each state in the restricted state space. The resulting real-time policy responds to the time varying demand for products by stitching together decisions made by the heuristics and improves overall performance of the supply chain. The proposed approach can be applied to any problem formulated as a stochastic DP, provided that there are reasonable heuristics available for simulation.

This dissertation analyzes the economic incentives involved in three distinct supply chain and revenue management decision environments. The first study examines the adoption of the percent deviation contract in a supply chain to induce the buyer to share some of the demand risk in an environment in which the buyer would typically place her order when she has full knowledge of the customer demand levels. The subgame-perfect Nash Equilibrium decisions are characterized, and the percent deviation is shown to achieve full supply chain channel coordination in cases where a simpler contract cannot. Pareto-improving examples based on industry demand data are presented and discussed. The second section considers a revenue management problem for sports and entertainment organizations. Given that the organization starts the selling season by offering ticket packages exclusively, the optimal time during the selling season for the organization to begin selling individual-event tickets is derived. Extensions of the base model are developed to include multiple ticket packages and heterogeneous ticket packages. The model is illustrated using empirical data sets obtained from the Georgia Tech Athletic Department and the Atlanta Symphony Orchestra. The third section develops a model of vendor-controlled category management in which vendors are in charge of the stocking and assortment decisions for a given amount of shelf space at a vendor when the retailer retains control over the retail price. The subgame-perfect Nash Equilibrium strategies for two vendors and a single retailer are analyzed, and a revenue-sharing contract is shown to coordinate the channel when the vendors can produce multiple brands in a given product category and shelf space is sufficiently large or small.

To date, closed form optimal solutions for stocking levels in arborescent multiechelon inventory systems have not been obtained. These problems exhibit the joint difficulties of requiring an allocation policy as well as a stocking policy, and the multidimensional nature of their state space makes dynamic programming formulations impractical. In this dissertation, we introduce procedures that approximate multiechelon networks with sets of single installation problems. We first use this technique to solve for base-stock levels in a distribution network with asymmetric retailers. Second, we use this technique to analyze delayed differentiation production processes and provide guidance as to when the strategy is most warranted. Third, we modify the technique to account for inventory that exhibits perishability and solve for stocking policies for distribution systems when the inventory has a fixed shelf life.

Cost control and rapid response to market changes have become keys to survival of modern enterprises, especially during today¡¦s ever-increasing business competitions. Communication obstacles such as information inconsistency and delays still exist among members of supply chains, leading to problems like inventory turnover decline and lead time stretch, and eventually are resulting inefficient reactions to the demand of final customers. In recent years, a number of firms have begun to adopt various electronic supply chain management systems to enhance the quality and efficiency of business communication among their suppliers. These systems have helped businesses parties simplify their communication time and enhance business partnerships and alliances, thus enhanced their overall competitive advantages. In additional, the wide implementation of such information technology is promoting healthy integration among industries towards much more efficient supply chains. In a typical supply chain management scenario, businesses with ineffective operation management capability are often disturbed by rapid changes in market demands, short product life cycles, and lacks of integration from levels of suppliers, because the curial marketing information has not been efficiently delivered to proper functional departments, disabling the entire organization to reflect the changing demands and market conditions. This study is aimed to business and industrial models on examining firms¡¦ competitive advantages and their relationship with suppliers. Based on the result of the analysis, it would be the reference to build up the system of e-procurement. Moreover, in market-based systems, it always exits supply-demand relationship between suppliers and buyer powers, when facing high supplier power; companies should provide sufficient information to negotiate with the suppliers. The research is on the basis of Taiwan optoelectronic industry to investigate the companies of the TFT-LCD panel, and the supply chains of the industry. In analyzing the main TFT-LCD panel providers, the paper will probe into TFT-LCD firms to import e- procurement system by building the CPFR mechanism to improve the reaction capacity of businesses and to respond to the market rapid change. The study exerts simulation software, Arena, to conduct simulation and improvement of such models,then according to the simulation results to utilize them as a reference to purchasing cooperative enterprise into the future operation.

Quality Management (QM) and Supply Chain Management (SCM) have been considered as two of the most important business strategies. They have become the prerequisite for success and competitive advantage in the global market. Supplier Integration is a subset of supply chain, and supplier relationship is no longer a competition, but competition and cooperation. Integration capabilities between suppliers can be regarded as a competitive advantage. The better supplier integration capabilities, the better supply chain performance. That would further enhance the competitiveness of enterprises. This paper explores the relationship between QM practices and Supplier Integration of supply chains. The entire population of suppliers to aerospace industry in Taiwan was surveyed to measure use of QM practices. QM is modeled as a second-order construct reflected by six QM practices (small group problem solving, top management leadership for quality, information and feedback, process management, customer focus, and supplier involvement). The results showed supplier involvement is the only factor which has statistically significant effect on supplier integration. Our study reflects the underlying fact of the aerospace industry in Taiwan; i.e., it is a manufacturing industry with no design capability. For a manufacturing industry without design capability, supplier involvement is the most important construct for effective supply chain management.

Because of the advance of Internet and the outsourcing, multi-company cooperation is imperative under this circumstance. In order to monitor states between partners during execution, this thesis develops exception handling mechanisms based on Web service stack. After detecting exceptions, the first step is to make use of the fault handler and compensation handler provided by the BPEL4WS specification to roll back planned or even executed business processes belonging to the same scope to the original state. The second step is to utilize the resources searching mechanism, including BE4WS and BCME, to find suitable substitutes to make a replacement or find fitting partners to cooperate with the original one. The third step is to take advantage of the extensibility, flexibility and scalability of BPEL4WS business process to adjust and re-form a new one to handle this unexpected situation. This study uses the LCD supply chain as an example to evaluate the proposed exception handling mechanisms. The result shows that the proposed methods obtain encouraging performance. The major contribution of this research is the initiation efforts on developing exception handling mechanisms based on Web service technologies to improve the exception handling performance.

To satisfy the transportation service request of clients and to control the associated costs are the main targets of marine container transportation industry. To achieve the transportation service for clients, plenty of participants and procedures are involved in the Marine Supply Chain (MSC), leading to the need of exchanging a huge amount of information. This study is focused on how and what kind of information sharing should be exchanged in these participants and procedures of Maritime Supply Chain. We use UMM (UN/CEFACT Modeling Methodology of ebXML business process) to investigate the business processes between participants in Marine Supply Chain. We also conducted a case study in an important location of maritime supply chain, i.e., Port Container Terminal to discuss about the information sharing content and sharing pattern in MSC processes. The result shows that in the marine cargo delivery process, Port Container Terminal is responsible for Berth Schedule Planning, Berth Planning, Yard Planning and Gate Planning to achieve the container transport service for the clients. Therefore, plenty of participants and procedures have to be involved in the Marine Supply Chain, and plenty of information have to be interchanged. However, beside Customs Clearance procedure, there are no common information technology platform and standard for information interchange in marine container transportation industry. To improve the service quality of domestic marine cargo delivery, we have to establish an information sharing system. Moreover, I personally hope this study can be used as a reference of information system analysis and design. Improving the information sharing standardization and building information sharing pattern can simplify and improve the procedures of marine cargo delivery system.

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