We consider three problems on inventory, transportation and location in a supply chain. In Chapter 2, we study Multilevel Rationing (MR) and Strict Priority (SP) stock allocation policies for a centralized single product multi-class M/G/1 make-to-stock queueing systems. To obtain the total cost of the system under these policies, we introduce a new method called “customer composition”. Using this method, we focus on the proportion of customers of each class out of the total number of customers in the queue since the number of customers in M/G/1 queues is invariant for any non-idling and non-anticipating policy. We consider a series of two-priority M/G/1 queues with an exceptional service time in each busy period to characterize the customer composition. We derive closed form expressions for the costs of SP and MR policies using these results. In Chapter 3, we consider a two-echelon inventory system with a congested centralized production facility and several Distribution Centers (DCs). We assume that the production and transportation times are stochastic that are generally distributed, and customers arrive to each DC according to an independent Poisson process. Inventory at DCs is managed using the one-for-one replenishment policy. We use the customer composition approach to characterize the total inventory carrying and backlog costs of the system under the FCFS, SP and MR allocation policies at the warehouse. For the special case of exponentially distributed production and transportation times, we use the unit-flow method and derive closed form expressions for the optimal cost and base-stock level of the DCs. We numerically demonstrate that prioritization using either the SP or the MR policy could be very beneficial in comparison with the FCFS policy. In Chapter 4, we study a two-echelon supply chain with a set of suppliers, a set of retailers and a set of capacitated cross-docks which are to be established. The demand of the retailers could be satisfied from the suppliers through the cross-docks. The objective is to determine the number and location of cross-docks, the assignment of retailers to suppliers so that the total cost of pipeline and retailers’ inventory, transportation, and facility location is minimized. We formulate the problem as a non-linear mixed integer programming and derive several structural results for special cases of the problem. To solve the general problem, we show that it can be written as a cutting stock problem and develop a column generation algorithm to solve it. We investigate the efficiency of the proposed algorithm numerically.

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We consider three problems on inventory, transportation and location in a supply chain. In Chapter 2, we study Multilevel Rationing (MR) and Strict Priority (SP) stock allocation policies for a centralized single product multi-class M/G/1 make-to-stock queueing systems. To obtain the total cost of the system under these policies, we introduce a new method called “customer composition”. Using this method, we focus on the proportion of customers of each class out of the total number of customers in the queue since the number of customers in M/G/1 queues is invariant for any non-idling and non-anticipating policy. We consider a series of two-priority M/G/1 queues with an exceptional service time in each busy period to characterize the customer composition. We derive closed form expressions for the costs of SP and MR policies using these results. In Chapter 3, we consider a two-echelon inventory system with a congested centralized production facility and several Distribution Centers (DCs). We assume that the production and transportation times are stochastic that are generally distributed, and customers arrive to each DC according to an independent Poisson process. Inventory at DCs is managed using the one-for-one replenishment policy. We use the customer composition approach to characterize the total inventory carrying and backlog costs of the system under the FCFS, SP and MR allocation policies at the warehouse. For the special case of exponentially distributed production and transportation times, we use the unit-flow method and derive closed form expressions for the optimal cost and base-stock level of the DCs. We numerically demonstrate that prioritization using either the SP or the MR policy could be very beneficial in comparison with the FCFS policy. In Chapter 4, we study a two-echelon supply chain with a set of suppliers, a set of retailers and a set of capacitated cross-docks which are to be established. The demand of the retailers could be satisfied from the suppliers through the cross-docks. The objective is to determine the number and location of cross-docks, the assignment of retailers to suppliers so that the total cost of pipeline and retailers’ inventory, transportation, and facility location is minimized. We formulate the problem as a non-linear mixed integer programming and derive several structural results for special cases of the problem. To solve the general problem, we show that it can be written as a cutting stock problem and develop a column generation algorithm to solve it. We investigate the efficiency of the proposed algorithm numerically.

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.

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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.

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Due to the fast change of globalization marketing, the shortened product life-cycle, and the uncertainty of marketing demand, enterprises have to become more agile, flexible in order to adapt to the fast change of the marketing. The SCM (Supply Chain Management) is the method to integrate the enterprise partnership of networks efficiently, the products will be produced and delivered with the right quantity to the right place at the right timing, it will help to reduce the cost of total supply chain and fulfill customer requirement with satisfaction. In past decades, the enterprises have introduced the balanced scorecard as the foundation of management system, and the method for alignment to business strategies. In this paper, through the combination of SCM practice and balanced scorecard by the Modified Delphi Method to develop the practical and effective performance indicators. The case study of this paper would take the performance indicators as the review on IDM (Integrated Device Manufacturers) company, in order to verify whether the SCM performance measurement of the company was balanced from each perspectives of the SCM balanced scorecard.