Supply chain engineering useful methods and techniques (2010) alexandre dolgui, jean marie proth

[...]... demand; • customers’ preferences and purchasing behavior; • spectrum of available products 1 This concern is pivotal in supply chains, the most recent paradigm related to production systems Remember the definition of a supply chain: A supply chain is a global network of organizations that cooperate to improve the flow of material and information between suppliers and customers at the lowest cost and. .. Management in Supply Chains 109 4.1 Introduction 109 4.2 Inventories in Supply Chains 113 4.2.1 Definition of a Supply Chain 113 4.2.2 Inventory Problems in a Supply Chain 114 4.2.3 Bullwhip Effect 115 4.3 Stochastic Inventory Problems 122 4.3.1 Newsvendor (or Newsboy) Problem 122 4.3.2 Finite-horizon Model with Stochastic Demand 125 4.3.3... between suppliers and customers at the lowest cost and the highest speed The objective of a supply chain is customer’s satisfaction (see Govil and Proth, 2002) 1.2 Definitions and Notations 3 These aspects are the most important where pricing is concerned and they are not exclusive As mentioned in (Talluri and Van Ryzin, 2004), pricing strategy is beneficial when: • Customers are heterogeneous, which... efficient information processing and communication system Initially, pricing was used by the airline industry, followed by retailers and, more recently, by companies in the energy sector Note that these sectors are characterized by production (or offer) rigidity, variability of demand and heterogeneity of customers 1.2 Definitions and Notations Production cost is the sum of fixed and variable costs Fixed costs... customer to customer, and they are attracted by different benefits offered by the same type of products • Demand variability and uncertainty are high, which guarantees a flourishing revenue to those who master pricing • Production is rigid, which allows playing with prices when demand varies A successful application of pricing strategy requires a strong commitment from management and a detailed monitoring... management, price skimming, are developed and illustrated Particular attention is paid to the relationships among margin, price and selling level Then, the impact of prices on selling volume is analyzed, and the notion of a selling curve is introduced Related pricing methods are presented such as price testing, cost-plus method, involvement of experts, market analysis and customer surveying Included in the... 410 10.4 Conclusion .414 References 415 Further Reading .416 11 Warehouse Management and Design 419 11.1 Introduction 419 11.2 Warehouse Types and Usefulness 420 11.2.1 Warehouse Taxonomies 420 11.2.2 Warehouse Usefulness 422 11.3 Basic Warehousing Operations 423 11.3.1 Receiving 423 11.3.2 Storage ... Industry 182 5.5.7 Waste Management 182 5.5.8 Processed Food Industry 183 5.6 Advantages when Applying RFID Technology to Supply Chains 183 5.7 Expert Opinion on the Matter 185 5.8 Economic Evaluation of the Use of RFID in Supply Chains 185 5.8.1 Current Situation 185 5.8.2 How to Proceed? 187 5.9 Privacy Concerns 188 5.9.1 Main Privacy... Price elasticity of demand measures the responsiveness of the number of items sold to the price of an item More precisely, elasticity of demand is the percentage of change in quantity of items sold with regard to the percentage of change in price per item: 4 Elasticity of demand = 1 Introduction to Pricing % change in quantity of items sold % change in price of one item The demand curve (also called... providers; • perfect information: all providers and customers know the prices set by all providers; • freedom of entry and exit: a provider can enter or exit the system at any time and freely; • homogeneous output, which means that there is no product differentiation or, in other words, items are perfect substitutes; • all providers have equal access to technologies and resources Nash equilibrium is a market . class="bi x0 y0 w0 h1" alt="" Supply Chain Engineering Alexandre Dolgui · Jean-Marie Proth Supply Chain Engineering Useful Methods and Techniques 123 Prof. Alexandre Dolgui Ecole des Mines. Inventory Management in Supply Chains 109 4.1 Introduction 109 4.2 Inventories in Supply Chains 113 4.2.1 Definition of a Supply Chain 113 4.2.2 Inventory Problems in a Supply Chain 114 4.2.3 Bullwhip. methodical evaluation and optimization of production systems, logistics networks, and their management policies to increase the effectiveness of multifaceted demand and supply chains. Worldwide