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Prioritizing edge over node: process control in supply chain networks and push-pull strategies

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  • M Pearson

    (Napier University)

Abstract

We outline recent work identifying an equilibrium solution in a supply chain network. The solution overcomes some difficulties associated with the bullwhip effect through limited cooperation and coordination along edges (links) in the supply chain network. The links constitute the stochastic modelling entities rather than the nodes of the network. We outline a range of feedback mechanisms that monitor and restore equilibrium in a supply chain. One of these is prediction capability charts which monitor the process. These charts are used by the decision makers to profile the allocation of inventory in the supply chain and identify out of control conditions. They maintain quality within the network, as well as intelligently track the way the network evolves in conditions of changing variability. We illustrate with an example simulating a push strategy in the clothing industry.

Suggested Citation

  • M Pearson, 2008. "Prioritizing edge over node: process control in supply chain networks and push-pull strategies," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(4), pages 494-502, April.
    • Handle: RePEc:pal:jorsoc:v:59:y:2008:i:4:d:10.1057_palgrave.jors.2602314
    DOI: 10.1057/palgrave.jors.2602314
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    References listed on IDEAS

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    1. M A Pearson, 2000. "The incorporation of target performance measures and constrained optimisation in the newsboy problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(6), pages 744-754, June.
    2. Gérard P. Cachon, 2004. "The Allocation of Inventory Risk in a Supply Chain: Push, Pull, and Advance-Purchase Discount Contracts," Management Science, INFORMS, vol. 50(2), pages 222-238, February.
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