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Redesigning the supply chain to increase responsiveness with increasing demand uncertainty.

Dijkgraaf, F.L. (2020) Redesigning the supply chain to increase responsiveness with increasing demand uncertainty.

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Abstract:The changing customer requirements and desire to minimize costs forced Imagebuilders to redesign the supply chain and supply chain processes. Because the long lead time of suppliers requires Imagebuilders to use a Make-to-Stock strategy for standard items while working in a multi-project environment, all forecast-driven activities were analysed to find possible process improvements. The goal of the research is to advise Imagebuilders on how to design the supply chain network and how to adjust the supply chain processes to be able to meet demand timely while achieving a high service level and low inventory and purchasing costs. To do so, we analysed four unique supply chain designs with design-specific characteristics such as the number of stock points and the forecast horizon. To find out which design meets the requirements in the most cost-efficient way, we simulated the decisions made within each design to compute the costs of all options on item-level. This required us to forecast demand on different levels and different forecasting horizons. We found that a hybrid of two supply chain designs along with the implemented demand anticipation and inventory control methods allows Imagebuilders to achieve a high level of responsiveness at reduced supply chain costs.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:31 mathematics, 50 technical science in general
Programme:Industrial Engineering and Management MSc (60029)
Link to this item:https://purl.utwente.nl/essays/84803
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