Supply chain modelling structures – Is physical logical?

Abstract:

 A supply chain is a complex system of interacting actors where each actor takes the role of customer and/or supplier to other actors of the network. When the level of cooperation is low each actor is making decisions individually and in isolation, usually with very limited information about the states of the other actors. A control model of the system structure would usually reflect the physical structure of the supply chain, modelling each actor as an individual subsystem. A more integrated approach, such as in the application of distributed model predictive control (MPC), would however involve a supply chain model of a more cooperative nature but in many cases still reflect the physical layout of the network. Approaching supply chain modelling from a management perspective would instead put more emphasis on strategic properties such as key characteristics for implementing strategies such as customization, postponement, outsourcing and transparency. Each of these strategies requires a comprehensive and aligned management approach involving one or more actors of the supply chain. Much work remains on how to reflect this strategic choice in the supply chain control model. One guideline, in this context, is to focus on the business logic of the involved actors and this presentation introduces a set of strategic decision points that could be considered when establishing a supply chain model structure to be used for decentralized, centralized, or distributed MPC.

Biography:Joakim Wikner is Professor of Logistics and Operations Management at the School of Engineering, Jönköping University in Sweden. He received his MSc degree in Systems Engineering from University of Cardiff and a PhD in Production Economics from Linköping University. His research interests focus on manufacturing enterprises and include supply chain design and management, planning and control systems, system dynamics and enterprise architectures. He has previously also worked as a consultant and senior advisor for two large ERP companies.