Keely L. Croxton

THE SUPPLY CHAIN MANAGEMENT PROCESSES

Increasingly, supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain. While many have recognized the benefits of a process approach to managing the business and the supply chain, most are vague about what processes are to be considered, what sub‐processes and activities are contained in each process, and how the processes interact with each other and with the traditional functional silos. In this paper, we provide strategic and operational descriptions of each of the eight supply chain processes identified by members of The Global Supply Chain Forum, as well as illustrations of the interfaces among the processes and an example of how a process approach can be implemented within an organization. Our aim is to provide managers with a framework to be used in implementing supply chain management, instructors with material useful in structuring a supply chain management course, and researchers with a set of opportunities for further development of the field.

The Returns Management Process

Returns management is the supply chain management process by which activities associated with returns, reverse logistics, gatekeeping, and avoidance are managed within the firm and across key members of the supply chain. The correct implementation of this process enables management not only to manage the reverse product flow efficiently, but to identify opportunities to reduce unwanted returns and to control reusable assets such as containers. In this paper, we describe how the returns management process can be implemented within a firm and across the supply chain. The process is described in terms of its sub‐processes and associated activities, and the interfaces with corporate functions, other supply chain management processes and other firms. Examples of successful implementation are provided.

A Comparison of Mixed-Integer Programming Models for Nonconvex Piecewise Linear Cost Minimization Problems

We study a generic minimization problem with separable nonconvex piecewise linear costs, showing that the linear programming (LP) relaxation of three textbook mixed-integer programming formulations each approximates the cost function by its lower convex envelope. We also show a relationship between this result and classical Lagrangian duality theory.

Models and Methods for Merge-in-Transit Operations

We develop integer programming formulations and solution methods for addressing operational issues in merge-in-transit distribution systems. The models account for various complex problem features, including the integration of inventory and transportation decisions, the dynamic and multimodal components of the application, and the nonconvex piecewise linear structure of the cost functions. To accurately model the cost functions, we introduce disaggregation techniques that allow us to derive a hierarchy of linear programming relaxations. To solve these relaxations, we propose a cutting-plane procedure that combines constraint and variable generation with rounding and branch-and-bound heuristics. We demonstrate the effectiveness of this approach on a large set of test problems with instances derived from actual data from the computer industry that contain almost 500,000 integer variables.

The Individual Barriers to Internal Integration of Marketing and Logistics

Why has so much focus been placed on the topic of integration both within firms as well as across the supply chain? The answer is that the business world is recognizing the importance of integration as a means of achieving success in today’s highly competitive environment. Short product life cycles, the implementation of supply chain processes and the increasingly global nature of competition require coordinated actions involving several business functions. Practitioners and academics alike are recognizing the benefits of integration both within and outside the firm, benefits that include better customer service, better management of inventory levels, higher forecast accuracy, and greater customer and employee satisfaction. Despite this recognized importance and increased, integration remains an illusive goal in today’s competitive market for many companies. The division of labor into areas of functional expertise, while necessary to understand market and product complexity, has also created several challenges for the firm. Specifically, scholars have identified differences between functions as a potential barrier to the interdepartmental integration needed for efforts such as technology adoption and supply chain process implementation. While the functional differences between marketing and R&D has been studied by several scholars with respect to new product development the individual differences between the functions of marketing and logistics has received only limited attention. This paper seeks to fill this gap in the integration literature by proposing the application of a previously developed model of integration to the study the functional differences between logistics and marketing. Additionally, the proposed study extends the model as a method to understand the impact that functional differences has upon firm performance.