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Synchronization in supply chains: implications for design and management

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  • M Khouja

    (University of North Carolina at Charlotte)

Abstract

Supply chain management literature calls for coordination between the different members of the chain. Materials should be moved from one supplier to the next according to a just-in-time schedule. In this paper, we show that for many supply chain configurations, complete synchronization will result in some members of the chain being ‘losers’ in terms of cost. We develop an algorithm for optimal synchronization of supply chains and provide some guidelines for incentive alignment along the supply chain. In developing the model, we use the economic delivery and scheduling problem model and analyze supply chains dealing with single and multiple components. For single-component supply chains, we derive a closed-form expression for the optimal synchronized cycle time. For multi-component supply chains, we develop an algorithm for finding the optimal synchronized cycle time. We test the performance of the algorithm and show that it provides optimal solutions for a wide range of problems. We illustrate the models with numerical examples.

Suggested Citation

  • M Khouja, 2003. "Synchronization in supply chains: implications for design and management," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(9), pages 984-994, September.
    • Handle: RePEc:pal:jorsoc:v:54:y:2003:i:9:d:10.1057_palgrave.jors.2601606
    DOI: 10.1057/palgrave.jors.2601606
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    References listed on IDEAS

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    Cited by:

    1. Jaber, M.Y. & Goyal, S.K., 2008. "Coordinating a three-level supply chain with multiple suppliers, a vendor and multiple buyers," International Journal of Production Economics, Elsevier, vol. 116(1), pages 95-103, November.
    2. Jung, Jung Woo & Lee, Young Hae, 2010. "Heuristic algorithms for production and transportation planning through synchronization of a serial supply chain," International Journal of Production Economics, Elsevier, vol. 124(2), pages 433-447, April.
    3. S Sivadasan & J Smart & L Huaccho Huatuco & A Calinescu, 2010. "Operational complexity and supplier–customer integration: case study insights and complexity rebound," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(12), pages 1709-1718, December.
    4. Osman, Hany & Demirli, Kudret, 2012. "Integrated safety stock optimization for multiple sourced stockpoints facing variable demand and lead time," International Journal of Production Economics, Elsevier, vol. 135(1), pages 299-307.
    5. Huang, Yung-Fu, 2007. "Economic order quantity under conditionally permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 176(2), pages 911-924, January.
    6. Osman, Hany & Demirli, Kudret, 2012. "Economic lot and delivery scheduling problem for multi-stage supply chains," International Journal of Production Economics, Elsevier, vol. 136(2), pages 275-286.
    7. Sarmah, S.P. & Acharya, D. & Goyal, S.K., 2006. "Buyer vendor coordination models in supply chain management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 1-15, November.
    8. Hoque, M.A. & Kingsman, B.G., 2006. "Synchronization in common cycle lot size scheduling for a multi-product serial supply chain," International Journal of Production Economics, Elsevier, vol. 103(1), pages 316-331, September.

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