SUPPLY CHAIN MANAGEMENT Edited by Pengzhong Li Supply Chain Management Edited by Pengzhong Li Published by InTech Janeza Trdine 9, 51000 Rijeka, Croatia Copyright © 2011 InTech All chapters are Open Access articles distributed under the Creative Commons Non Commercial Share Alike Attribution 3.0 license, which permits to copy, distribute, transmit, and adapt the work in any medium, so long as the original work is properly cited. After this work has been published by InTech, authors have the right to republish it, in whole or part, in any publication of which they are the author, and to make other personal use of the work. Any republication, referencing or personal use of the work must explicitly identify the original source. Statements and opinions expressed in the chapters are these of the individual contributors and not necessarily those of the editors or publisher. No responsibility is accepted for the accuracy of information contained in the published articles. The publisher assumes no responsibility for any damage or injury to persons or property arising out of the use of any materials, instructions, methods or ideas contained in the book. Publishing Process Manager Iva Lipovic Technical Editor Teodora Smiljanic Cover Designer Martina Sirotic Image Copyright Pindyurin Vasily, 2010. Used under license from Shutterstock.com First published March, 2011 Printed in India A free online edition of this book is available at www.intechopen.com Additional hard copies can be obtained from orders@intechweb.org Supply Chain Management, Edited by Pengzhong Li p. cm. ISBN 978-953-307-184-8 free online editions of InTech Books and Journals can be found at www.intechopen.com Part 1 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Preface IX Management Method and Its Application 1 Supply Chain Optimization: Centralized vs Decentralized Planning and Scheduling 3 Georgios K.D. Saharidis Integrating Lean, Agile, Resilience and Green Paradigms in Supply Chain Management (LARG_SCM) 27 Helena Carvalho and V. Cruz-Machado A Hybrid Fuzzy Approach to Bullwhip Effect in Supply Chain Networks 49 Hakan Tozan and Ozalp Vayvay Managing and Controlling Public Sector Supply Chains 73 Intaher Marcus Ambe and Johanna A Badenhorst-Weiss Supply Chain Management Based on Modeling & Simulation: State of the Art and Application Examples in Inventory and Warehouse Management 93 Francesco Longo Supply Chain Process Benchmarking Using a Self-Assessment Maturity Grid 145 Sander de Leeuw Supply Chain Resilience Using the Mapping Approach 161 A.P. Barroso, V.H. Machado and V. Cruz Machado Capacity Collaboration in Semiconductor Supply Chain with Failure Risk and Long-term Profit 185 Guanghua Han, Shuyu Sun and Ming Dong Contents Contents VI A Cost-based Model for Risk Management in RFID-Enabled Supply Chain Applications 201 Manmeet Mahinderjit-Singh, Xue Li and Zhanhuai Li Inventories, Financial Metrics, Profits, and Stock Returns in Supply Chain Management 237 Carlos Omar Trejo-Pech, Abraham Mendoza and Richard N. Weldon Differential Game for Environmental-Regulation in Green Supply Chain 261 Yenming J Chen and Jiuh-Biing Sheu Logistics Strategies to Facilitate Long-Distance Just-in-Time Supply Chain System 275 Liang-Chieh (Victor) Cheng Governance Mode in Reverse Logistics: A Research Framework 291 Qing Lu, Mark Goh and Robert De Souza Supply Chain Management and Automatic Identification Management Convergence: Experiences in the Pharmaceutical Scenario 303 U. Barchetti, A. Bucciero, A. L. Guido, L. Mainetti and L. Patrono Coordination 329 Strategic Fit in Supply Chain Management: A Coordination Perspective 331 S. Kamal Chaharsooghi and Jafar Heydari Towards Improving Supply Chain Coordination through Business Process Reengineering 351 Marinko Maslaric and Ales Groznik Integrated Revenue Sharing Contracts to Coordinate a Multi-Period Three-Echelon Supply Chain 367 Mei-Shiang Chang The Impact of Demand Information Sharing on the Supply Chain Stability 389 Jing Wang and Ling Tang Modeling and Analysis 415 Complexity in Supply Chains: A New Approachto Quantitative Measurement of the Supply-Chain-Complexity 417 Filiz Isik Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Part 2 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Part 3 Chapter 19 Contents VII A Multi-Agent Model for Supply Chain Ordering Management: An Application to the Beer Game 433 Mohammad Hossein Fazel Zarandi, Mohammad Hassan Anssari, Milad Avazbeigi and Ali Mohaghar A Collaborative Vendor – Buyer Deteriorating Inventory Model for Optimal Pricing, Shipment and Payment Policy with Two – Part Trade Credit 443 Nita H. Shah and Kunal T. Shukla Quantifying the Demand Fulfillment Capability of a Manufacturing Organization 469 César Martínez-Olvera Continuum-Discrete Models for Supply Chains and Networks 487 Ciro D’Apice, Rosanna Manzo and Benedetto Piccoli Services and Support Supply Chain Design for Complex Engineering Systems 515 John P.T. Mo Lifecycle Based Distributed Cooperative Service Supply Chain for Complex Product 533 Pengzhong Li, Rongxin Gu and Weimin Zhang A Generalized Algebraic Model for Optimizing Inventory Decisions in a Centralized or Decentralized Three-Stage Multi-Firm Supply Chain with Complete Backorders for Some Retailers 547 Kit Nam Francis Leung Life Cycle Costing, a View of Potential Applications: from Cost Management Tool to Eco-Efficiency Measurement 569 Francesco Testa, Fabio Iraldo, Marco Frey and Ryan O’Connor Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Pref ac e With gradually recognized signifi cance of supply chain management, it a racts ex- tensive a ention from businesses and academic scholars. Many important research fi ndings and results had been achieved. This book presents a collection of recent con- tributions from the worldwide researchers in the fi eld of supply chain management. It is aimed at providing new ideas, original results and practical experiences regarding this highly up-to-date area. Research work of supply chain management involves all activities and processes in- cluding planning, coordination, operation, control and optimization of the whole sup- ply chain system. To make it convenient for readers to fi nd interesting topics, content of this book was structured into three technical research parts with total of 27 chapters wri en by well recognized researchers worldwide. In part one, Management Method and Its Application, the editor hopes to give readers new methods and innovative ideas about supply chain management. Chapters about supply chain coordination were put into part two, Coordination. The third part, Modeling and Analysis, is thematically more diverse, it covers accepted works about description and analysis of all supply chain management areas. I am very honored to be editing such a valuable book, which contains contributions of a selected group of researchers presenting the best of their work. The editor truly hopes the book will be helpful for researchers, scientists, engineers and students who are involved in supply chain management. Although it represents only a small sample of the research activity on supply chain management, the book will certainly serve as a valuable tool for researchers interested in ge ing involved in this multidisciplinary fi eld. Further discussions on the contents of this book are warmly welcome. Finally, the editor would like to thank all the people who contributed to this book, in particular Ms. Iva Lipovic, for indispensable technical assistance in book publishing. Pengzhong LI Sino-German College of Postgraduate Studies (CDHK) Tongji University Shanghai 200092, China [...]... the production planning of the supply chain Secondly, they have to optimize the short term production analyzing and organizing the production scheduling of the supply chain and finally taking under consideration the stochasticity of the real world, managers have to analyze and organize the performance of the supply chain adopting the best control policy In supply chain management production planning... frequently in supply chain management where the main objective is to assign sequence of tasks to processing units within certain time frame such that demand of each product is satisfied before its due date For supply chain systems the aim of control is to optimize some performance measure, which typically comprises revenue from sales less the costs of inventory and those 4 Supply Chain Management associated... beneficial for the whole supply chain and for each participating company In practice, however, each company tends to optimize its own production unit subject to certain constraints (e.g., contractual obligations) with little attention to the remaining stages of the supply chain For example, if a factory of a supply chain purchases raw items regularly from another supply chain participant, then, during... al., 2000) present a fine planning for supply chains in semiconductor manufacturing It is generally accepted that production planning and control, in the maketo-order environment of application-specific integrated circuit production, is a difficult task, 6 Supply Chain Management as it has to be optimal both for the local manufacturing units and for the whole supply chain network Centralised MRP II systems...Part 1 Management Method and Its Application 1 Supply Chain Optimization: Centralized vs Decentralized Planning and Scheduling 1University Georgios K.D Saharidis of Thessaly, Department of Mechanical Engineering 2Kathikas Institute of Research and Technology 1Greece 2USA 1 Introduction In supply chain management manufacturing flow lines consist of two or... B1, −C Fig 5 Markov chain of the supply chain under BSPB The Chapman-Kolmogorov equations for the equilibrium probabilities P(I1, I2) are I2 = B2: μ1P(0, B2) = μ2P(1, B2 − 1) (λ + μ1)P(I1, B2) = μ1P(I1 − 1, B2) + μ2P(I1 + 1, B2 − 1) , 1 ≤ I1 ≤ B1 − 1, λP(B1, B2) = μ1P(B1 − 1, B2) B2 > I2 > −C: (λ + μ1 + μ2)P(1, I2) = μ2[P(1, I2 − 1) + P(2, I2 − 1)] + λP(1, I2 + 1) 22 Supply Chain Management (λ + μ1... holding, backordering, and subcontracting costs is minimized We use Markov chains to evaluate the performance of the supply chain under various control policies FIRST COMPANY SECOND COMPANY products basic components raw items buffer2 buffer1 factory F1 factory F2 subcontractor SC1 demand subcontractor SC2 Fig 4 The tow-stage supply chain of ANALKO Let I1 denote the number of items in buffer 1 plus the... the supply chain type, in which the various work and storage areas belong to different companies The problem becomes more difficult when it is possible for companies owning certain stages of the supply chain to purchase a number of items from subcontractors rather than producing these items in their plants In general, a good planning, scheduling and control policy must be beneficial for the whole supply. .. material in tank jst at event point n 26 Supply Chain Management 8 References Bassett, M.H., Pekny, J., & Reklaitis, G (1996) Decomposition Techniques for the Solution of Large-Scale Scheduling Problems American Institute of Chemical Engineers Journal 42(12),3373-3387 Chen, J.M., & Chen, T.H (2005) The Multi-item Replenishment Problem in a Two-Echelon Supply Chain: The Effect of Centralization versus... proportional to the quantity of products produced or subcontracted respectively Finally the production capacity of F1 is equal to the capacity of F2 Supply Chain Optimization: Centralized vs Decentralized Planning and Scheduling 7 Fig 1 The two-stage supply chain of ANALKO On the one hand in the decentralized approach, we have two integrated local optimization problems from the end to the beginning Namely, . SUPPLY CHAIN MANAGEMENT Edited by Pengzhong Li Supply Chain Management Edited by Pengzhong Li Published by InTech Janeza Trdine. fi eld of supply chain management. It is aimed at providing new ideas, original results and practical experiences regarding this highly up-to-date area. Research work of supply chain management. worldwide. In part one, Management Method and Its Application, the editor hopes to give readers new methods and innovative ideas about supply chain management. Chapters about supply chain coordination