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The value of lead time reduction and stabilization: A comparison between traditional and collaborative supply chains

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  • Ponte, Borja
  • Costas, José
  • Puche, Julio
  • Pino, Raúl
  • de la Fuente, David

Abstract

This work quantifies the financial impact of the mean and the variability of production and shipping lead times on multi-echelon supply chains. We combine agent-based modelling and Taguchi methods, through which we develop a framework for supporting entrepreneurial investment decisions. A throughput-based analysis reveals that decreasing mean lead times improves the internal operation of production and distribution systems, while reducing lead time variability enhances the satisfaction of consumers. In this regard, we contrast traditional and collaborative supply chains. We find that the latter are not only more profitable than the former, but also more robust to variations in lead times.

Suggested Citation

  • Ponte, Borja & Costas, José & Puche, Julio & Pino, Raúl & de la Fuente, David, 2018. "The value of lead time reduction and stabilization: A comparison between traditional and collaborative supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 165-185.
    • Handle: RePEc:eee:transe:v:111:y:2018:i:c:p:165-185
    DOI: 10.1016/j.tre.2018.01.014
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    Cited by:

    1. Ponte, Borja & Framinan, Jose M. & Cannella, Salvatore & Dominguez, Roberto, 2020. "Quantifying the Bullwhip Effect in closed-loop supply chains: The interplay of information transparencies, return rates, and lead times," International Journal of Production Economics, Elsevier, vol. 230(C).
    2. Christian Weckenborg & Karsten Kieckhäfer & Christoph Müller & Martin Grunewald & Thomas S. Spengler, 2020. "Balancing of assembly lines with collaborative robots," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 93-132, April.
    3. Ponte, Borja & Puche, Julio & Rosillo, Rafael & de la Fuente, David, 2020. "The effects of quantity discounts on supply chain performance: Looking through the Bullwhip lens," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    4. Rajesh, R. & Rajeev, A. & Rajendran, Chandrasekharan, 2022. "Corporate social performances of firms in select developed economies: A comparative study," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    5. Wang, Qiang & Wu, Jie & Zhao, Nenggui, 2022. "Optimal operational policies of a dual-channel supply chain considering return service," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 199(C), pages 414-437.
    6. Roberto Dominguez & Salvatore Cannella & Borja Ponte & Jose M. Framinan, 2022. "Information sharing in decentralised supply chains with partial collaboration," Flexible Services and Manufacturing Journal, Springer, vol. 34(2), pages 263-292, June.
    7. Dominguez, Roberto & Cannella, Salvatore & Framinan, Jose M., 2021. "Remanufacturing configuration in complex supply chains," Omega, Elsevier, vol. 101(C).
    8. Tianwen Song & Qiang Zhang & Junmu Ran & Wenxue Ran, 2021. "Research on Supplier Collaboration of Daily Consumer Goods under Uncertainty of Supply and Demand," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    9. M. A. Hoque, 2021. "An optimal solution policy to an integrated manufacturer-retailers problem with normal distribution of lead times of delivering equal and unequal-sized batches," OPSEARCH, Springer;Operational Research Society of India, vol. 58(2), pages 483-512, June.
    10. Kumar, Anupam & Cantor, David E. & Grimm, Curtis M., 2019. "The impact of a supplier’s environmental management concerns on a buyer’s environmental reputation: The moderating role of relationship criticality and firm size," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 448-462.
    11. Dominguez, Roberto & Cannella, Salvatore & Ponte, Borja & Framinan, Jose M., 2020. "On the dynamics of closed-loop supply chains under remanufacturing lead time variability," Omega, Elsevier, vol. 97(C).

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