Adaptive Supply Chain Management Book

Abbreviations xxxi

1 Evolution of Supply Chain Management (SCM) 1

1.1 Role of SCM in Enterprise Management 1

1.2 Predecessors and Establishment of SCM 4

1.2.1 Market and Enterprise Management Developments 1960-2010 4

1.2.2 Objective Economic Grounds of SCM Development 4

1.2.3 Development and Merit of SCM 5

1.2.4 Organizational Aspects of SCM 6

1.3 SCM and Related Disciplines 10

1.3.1 Logistics and SCM 10

1.3.2 The Multi-disciplinary Nature of SCM 12

1.3.3 The Main Directions of Research on SCM 13

References 15

2 Conceptual Frameworks for SCM 19

2.1 Agile, Flexible and Responsive Supply Chains 19

2.1.1 Postponement, Modularization and Agility 20

2.1.2 Virtualization and Agility 21

2.1.3 Coordination and Agility 22

2.1.4 Flexibility, Coordination and Agility 22

2.2 Vision of the Adaptive SCM (A-SCM): Conceptual Framework 23

2.2.1 Adaptive Supply Chains: State of the Art 23

2.2.2 Basic Terms and Definitions 26

2.2.3 A-SCM Framework 27

2.2.4 A-SCM Drivers and Organization 28

2.2.5 Application Issues 31

References 31

3 Decision-making Support for SCM 35

3.1 Model-based Decision-making Support 35

3.1.1 Models: Basic Terms and Classifications 35

3.1.2 Mathematical Models 39

3.1.3 Information Models 40

3.2 Information Systems-based Decision-making Support 42

3.2.1 Coordination and Information Technologies 42

3.2.2 Classification of Information Technologies in SCM 44

3.2.3 Impact of Information Technology on Management 46

3.3 Integrated Frameworks of Decision-making Support 47

3.3.1 Information View of Integrated Modelling Frameworks 47

3.3.2 Mathematical View of Integrated Modelling Frameworks 48

3.3.3 MainRequirements for Integrated Decision-support Systems 49

References 52

4 Challenges in Research on Modern and Future Supply Chains 57

4.1 Potential Supply Chain Performance and Stability 57

4.2 Uncertainty and Dynamics 58

4.3 Interrelations and Optimality of Decisions 59

4.4 Multi-structural Nature of Supply Chains 60

4.5 Multi-Disciplinary Modelling 61

4.6 Establishing Links to Product Life Cycle, Related Enterprise Management Functions and the Environment 62

4.7 Information Technologies and Organizational Aspects 63

4.8 Twelve Main Misunderstandings of SCM 63

References 65

5 Uncertainty, Risk and Complexity 69

5.1 Origins and Variety of Uncertainty 69

5.1.1 Uncertainty and Perturbation Impacts 69

5.1.2 Sources of Uncertainty 70

5.1.3 Uncertainty within the Complexity Management 73

5.2 Risk Management in Supply Chains 74

5.3 Supply Chains as Complex Systems 76

5.4 Practical Issues of Uncertainty in Supply Chains 78

References 79

6 Handling Uncertainty in Supply Chains 81

6.1 Supply Chain Security 81

6.1.1 Purposeful Perturbation Influences on Supply Chains 81

6.1.2 The Concept and Tools of Supply Chain Security 82

6.2 Supply Chain Vulnerability 84

6.2.1 Prevention of Non-purposeful Perturbation Impacts on Supply Chains 84

6.2.2 Supply Chain Adjustment in the Case of Non-purposeful Perturbation Impacts 85

6.3 Managerial Impacts to Handle Uncertainty in Supply Chains 86

6.3.1 Supply Chain Reliability 87

6.3.2 Supply Chain Flexibility and Adaptation 87

References 89

7 Stream: Stability-based Realization of Economic Performance and Management 93

7.1 Necessity for Stream 93

7.2 Economic Performance and Stability of Supply Chains: A Strategic Analysis 94

7.2.1 "Waterline" Concept for Stability Analysis 94

7.2.2 Factors of Stability Decrease and Maintenance 95

7.3 Terminological Basics of Global Stability Analysis at the Tactical-Operational Level 96

7.4 Interrelations of Properties 100

7.4.1 Robustness, Adaptability and Adaptation 101

7.4.2 Resilience and BIBO Stability 103

7.4.3 Supply Chain Global Stability and Manageability 105

7.5 Example of Decision Making in the Case of Perturbation Influences 108

7.6 General Algorithms of Supply Chain (Re)planning Under Uncertainty 110

7.6.1 General Algorithm of Supply Chain Planning 110

7.6.2 General Algorithm of Supply Chain Replanning 113

References 116

8 Quantitative Modelling of Supply Chains 119

8.1 Operations Research 119

8.1.1 Optimization 119

8.1.2 Simulation 121

8.1.3 Heuristics 123

8.2 Control Theory 124

8.2.1 Control Theory Basics 124

8.2.2 Advantages of Control Theory Application in the SCM Domain 127

8.2.3 Shortcomings and Requirements for Extension 129

8.3 Complex Adaptive Systems and Multi-agent Systems 130

8.4 Critical Analysis 131

References 132

9 DIMA - Decentralized Integrated Modelling Approach 137

9.1 General Basics of DIMA 137

9.2 Active Modelling Objects 139

9.3 Integration Views 140

9.4 Multi-model Complexes and Qualimetry of Models 143

9.5 Decentralization 147

9.6 Integrated Modelling for Supply Chain Adaptive Planning and Execution 148

References 150

10 Structure Dynamics Control and Multi-model Analysis 153

10.1 On the Control Approach: Conceptual and Mathematical Issues 153

10.2 Basics of Structure Dynamics Control 155

10.3 Multi-model Description of Supply Chain Control Processes 159

10.4 General Formal Statement of the Supply Chain Structure Dynamics Control Problem 162

10.5 Generalized Dynamic Model of Supply Chain Control Processes (M Model) 164

10.6 Main Phases and Steps of Optimal Structure Dynamics Control Modelling 166

10.6.1 Supply Chain Synthesis Algorithm 166

10.6.2 Method of Attainable Sets for the Evaluation of Supply Chain Goal Abilities 166

10.6.3 Supply Chain Resynthesis Algorithm 170

References 171

11 Adaptive Planning of Supply Chains 173

11.1 Planning 173

11.2 Adaptive Planning 176

11.3 Adaptation Framework 177

11.4 Controller Concept 179

11.5 Supply Chain Planning Levels and Their Reflections 180

References 182

12 Modelling Operations Dynamics, Planning and Scheduling 185

12.1 Research Approach 185

12.2 Dynamic Models of Operations Dynamics Control 186

12.2.1 Dynamic Model of Collaborative Operations Control 187

12.2.2 Dynamic Model of Resource Control 191

12.2.3 Dynamic Model of Flow Control 192

12.2.4 Integrated Dynamic Model of Supply Chain Operations Control 194

12.2.5 Formal Problem Statement of Complex Operations Dynamics Control 195

12.3 Algorithms of Operations Dynamics Planning and Scheduling 195

12.3.1 Transformation of the Optimal Control Problem to the Boundary Problem 195

12.3.2 Existing Methods for Optimal Control Based on the Maximum Principle 199

12.3.3 Propocsed Algorithm of Supply Chain Scheduling 201

12.4 Concluding Remarks 202

References 203

13 Supply Chain Reconfiguration and Models' Adaptation 205

13.1 Variety of Supply Chain Reconfiguration Issues 205

13.2 Mathematical Model of the Supply Chain Reconfiguration 206

13.3 Algorithms of Supply Chain Parametrical and Structural Model Adaptation 213

13.3.1 Parametric Adaptation 214

13.3.2 Structural Adaptation 216

References 218

14 Models of Supply Chain Global Stability and Manageability 219

14.1 General Remarks on the Evaluation of Supply Chain Goal Abilities 219

14.2 Construction of the Attainable Sets 220

14.3 Dynamic Multi-criteria Model of Supply Chain Global Stability Analysis 223

14.4 Stability Analysis Models for Different Input Data 224

14.4.1 Deterministic Data 224

14.4.2 Stochastic Data 227

14.4.3 Interval Data 228

14.5 Stability Index Calculation 230

References 232

Chapter 15 Experimental Environment 233

15.1 Concept of the United Experimental Environment 233

15.2 Integrated Supply Chain Planning and Scheduling 234

15.3 Supply Chain Stability Analysis 238

References 241

Conclusion 243

Discussion of Findings 243

Future Research Outlook 249

Glossary 251

Notations 257

Index 267