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Tactical coordination in a multi-location and multi-stage operations structure: A model and a pharmaceutical company case

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  • Meijboom, Bert
  • Obel, Børge

Abstract

In this paper, we look at the internal supply chain of an internationally operating firm characterized by a multi-location and multi-stage operations structure. We address problems at three levels, namely the strategic, tactical, and operational levels. Our approach goes beyond the operational literature, and focuses primarily on the tactical level. We specify a model and a case that capture strategic and tactical issues and relate the tactical issues to organizational issues. We simulate coordination in different organizational forms pertaining to the 'tactical control' of the firm. Our analysis suggests that a functionally organized multi-location and multi-stage operations structure using traditional planning will not work. The choice is between a strongly IT-based, centralized organization or a more decentralized organization using transfer prices as the coordination device.

Suggested Citation

  • Meijboom, Bert & Obel, Børge, 2007. "Tactical coordination in a multi-location and multi-stage operations structure: A model and a pharmaceutical company case," Omega, Elsevier, vol. 35(3), pages 258-273, June.
    • Handle: RePEc:eee:jomega:v:35:y:2007:i:3:p:258-273
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    3. Masoud Esmaeilikia & Behnam Fahimnia & Joeseph Sarkis & Kannan Govindan & Arun Kumar & John Mo, 2016. "Tactical supply chain planning models with inherent flexibility: definition and review," Annals of Operations Research, Springer, vol. 244(2), pages 407-427, September.
    4. Assid, M. & Gharbi, A. & Dhouib, K., 2015. "Joint production and subcontracting planning of unreliable multi-facility multi-product production systems," Omega, Elsevier, vol. 50(C), pages 54-69.
    5. Tang, Shao-Long & Yan, Hong, 2010. "Pre-distribution vs. post-distribution for cross-docking with transshipments," Omega, Elsevier, vol. 38(3-4), pages 192-202, June.
    6. Li, Jin & Shi, Victor, 2019. "The benefit of horizontal decentralization in durable good procurement," Omega, Elsevier, vol. 82(C), pages 13-23.
    7. Gunasekaran, Angappa & Lai, Kee-hung & Edwin Cheng, T.C., 2008. "Responsive supply chain: A competitive strategy in a networked economy," Omega, Elsevier, vol. 36(4), pages 549-564, August.
    8. Aurelija Burinskienė, 2021. "Designing a Multi-Stage Transport System Serving e-Commerce Activity," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    9. Masoud Esmaeilikia & Behnam Fahimnia & Joeseph Sarkis & Kannan Govindan & Arun Kumar & John Mo, 2016. "A tactical supply chain planning model with multiple flexibility options: an empirical evaluation," Annals of Operations Research, Springer, vol. 244(2), pages 429-454, September.
    10. Saedi, Samira & Kundakcioglu, O. Erhun & Henry, Andrea C., 2016. "Mitigating the impact of drug shortages for a healthcare facility: An inventory management approach," European Journal of Operational Research, Elsevier, vol. 251(1), pages 107-123.
    11. Märkle-Huß, Joscha & Feuerriegel, Stefan & Neumann, Dirk, 2020. "Cost minimization of large-scale infrastructure for electricity generation and transmission," Omega, Elsevier, vol. 96(C).
    12. Iacocca, Kathleen & Mahar, Stephen & Daniel Wright, P., 2022. "Strategic horizontal integration for drug cost reduction in the pharmaceutical supply chain," Omega, Elsevier, vol. 108(C).

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