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OPTIMIZING THE GLOBAL PERFORMANCE OF BUILD-TO-ORDER SUPPLY CHAINS

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Date Issued:
2006
Abstract/Description:
Build-to-order supply chains (BOSCs) have recently received increasing attention due to the shifting focus of manufacturing companies from mass production to mass customization. This shift has generated a growing need for efficient methods to design BOSCs. This research proposes an approach for BOSC design that simultaneously considers multiple performance measures at three stages of a BOSC – Tier I suppliers, the focal manufacturing company and Tier I customers (product delivery couriers). We present a heuristic solution approach that constructs the best BOSC configuration through the selection of suppliers, manufacturing resources at the focal company and delivery couriers. The resulting configuration is the one that yields the best global performance relative to five deterministic performance measures simultaneously, some of which are nonlinear. We compare the heuristic results to those from an exact method, and the results show that the proposed approach yields BOSC configurations with near-optimal performance. The absolute deviation in mean performance across all experiments is consistently less than 4%, with a variance less than 0.5%. We propose a second heuristic approach for the stochastic BOSC environment. Compared to the deterministic BOSC performance, experimental results show that optimizing BOSC performance according to stochastic local performance measures can yield a significantly different supply chain configuration. Local optimization means optimizing according to one performance measure independently of the other four. Using Monte Carlo simulation, we test the impact of local performance variability on the global performance of the BOSC. Experimental results show that, as variability of the local performance increases, the mean global performance decreases, while variation in the global performance increases at steeper levels.
Title: OPTIMIZING THE GLOBAL PERFORMANCE OF BUILD-TO-ORDER SUPPLY CHAINS.
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Name(s): Shaalan, Tarek, Author
Geiger, Christopher, Committee Chair
University of Central Florida, Degree Grantor
Type of Resource: text
Date Issued: 2006
Publisher: University of Central Florida
Language(s): English
Abstract/Description: Build-to-order supply chains (BOSCs) have recently received increasing attention due to the shifting focus of manufacturing companies from mass production to mass customization. This shift has generated a growing need for efficient methods to design BOSCs. This research proposes an approach for BOSC design that simultaneously considers multiple performance measures at three stages of a BOSC – Tier I suppliers, the focal manufacturing company and Tier I customers (product delivery couriers). We present a heuristic solution approach that constructs the best BOSC configuration through the selection of suppliers, manufacturing resources at the focal company and delivery couriers. The resulting configuration is the one that yields the best global performance relative to five deterministic performance measures simultaneously, some of which are nonlinear. We compare the heuristic results to those from an exact method, and the results show that the proposed approach yields BOSC configurations with near-optimal performance. The absolute deviation in mean performance across all experiments is consistently less than 4%, with a variance less than 0.5%. We propose a second heuristic approach for the stochastic BOSC environment. Compared to the deterministic BOSC performance, experimental results show that optimizing BOSC performance according to stochastic local performance measures can yield a significantly different supply chain configuration. Local optimization means optimizing according to one performance measure independently of the other four. Using Monte Carlo simulation, we test the impact of local performance variability on the global performance of the BOSC. Experimental results show that, as variability of the local performance increases, the mean global performance decreases, while variation in the global performance increases at steeper levels.
Identifier: CFE0001411 (IID), ucf:47063 (fedora)
Note(s): 2006-12-01
Ph.D.
Engineering and Computer Science, Department of Industrial Engineering and Management Systems
Doctorate
This record was generated from author submitted information.
Subject(s): Build-to-Order Supply Chain
Supply Chain Management
Supply Chain Design
Persistent Link to This Record: http://purl.flvc.org/ucf/fd/CFE0001411
Restrictions on Access: public
Host Institution: UCF

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