Adaptation of coordination mechanisms to network structures
Abstract: The coordination
efficiency of Supply Chain Management is determined by two opposite poles:
benefit from improved planning results and associated coordination cost. The
centralization grade, applied coordination mechanisms and IT support have
influence on both categories. Therefore three reference types are developed and
subsequently detailed in business process models for different network
structures. In a simulation study the performance of these organization forms
are compared in a process plant network. Coordination benefit is observed if
the planning mode is altered by means of a demand planning IT tool.
Coordination cost is divided into structural and activity-dependent cost. The
activity level rises when reactive planning iterations become necessary as a
consequence of inconsistencies among planning levels. Some characteristic
influence factors are considered to be a reason for uninfeasible planning. In
this study the effect of capacity availability and stochastic machine downtimes
is investigated in an uncertain demand situation. Results that if the network
runs with high overcapacity, central planning is less likely to increase
benefit enough to outweigh associated cost. Otherwise, if capacity constraints
are crucial, a central planning mode is recommendable. When also unforeseen
machine downtimes are low, the use of sophisticated IT tools is most
profitable.
Author: Herwig Mittermayer,
Carlos RodrÃguez Monroy
Journal Code: jptindustrigg080018
