Information Network Design for Lean Logistics

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Date

2008-11-06

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Virginia Tech

Abstract

Manufacturing supply chains are invariably dynamic and complicated in nature. Hence, steady state models are not sufficient for analyzing and designing supply chains. Models of supply chains must accurately capture their dynamic behavior, which is determined by the structure of the organization, and the policies adopted by management. System dynamics modeling provides a powerful framework for this purpose.

The use of system dynamics models in supply chain management has thus far been limited to explaining phenomenon like the bullwhip effect, and for policy development. We provide a structured approach for policy design, which doesn't rely on any simulation experiments. Further, we study the impact that information network design has on the response of supply chains. We use a combinatorial approach to develop guidelines for information network design. Further, we examine the possibility of utilizing a PID information feedback structure to enhance the responsiveness of the supply chain. Lastly, we propose a combined feedback feed-forward information structure to enable a supply chain to rapidly respond to disturbances whose effects are known. The goal of this dissertation is to provide a structured approach for the design of information network structure, and operating policy.

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Keywords

Lean, Supply Chain Management, System Dynamics, Control Theory

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