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The value of lead time reduction and stabilization: A comparison between traditional and collaborative supply chains

Ponte, Borja; Costas, José; Puche, Julio; Pino, Raúl and de la Fuente, David (2018). The value of lead time reduction and stabilization: A comparison between traditional and collaborative supply chains. Transportation Research Part E: Logistics and Transportation Review, 111 pp. 165–185.

DOI (Digital Object Identifier) Link: https://doi.org/10.1016/j.tre.2018.01.014
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Abstract

This work quantifies the financial impact of the mean and the variability of production and shipping lead times on multi-echelon supply chains. We combine agent-based modelling and Taguchi methods, through which we develop a framework for supporting entrepreneurial investment decisions. A throughput-based analysis reveals that decreasing mean lead times improves the internal operation of production and distribution systems, while reducing lead time variability enhances the satisfaction of consumers. In this regard, we contrast traditional and collaborative supply chains. We find that the latter are not only more profitable than the former, but also more robust to variations in lead times.

Item Type: Journal Item
Copyright Holders: 2018 Elsevier Ltd.
ISSN: 1366-5545
Keywords: Agent-based modelling and simulation; Lead time; Supply chain collaboration; Supply chain management; Taguchi design of experiments; Throughput accounting
Academic Unit/School: Faculty of Business and Law (FBL) > Business > Department for People and Organisations
Faculty of Business and Law (FBL) > Business
Faculty of Business and Law (FBL)
Item ID: 59860
Depositing User: Ekaterina Kandelaki
Date Deposited: 26 Mar 2019 10:41
Last Modified: 05 Jun 2019 16:06
URI: http://oro.open.ac.uk/id/eprint/59860
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