Manfredi Bruccoleri

Impact of reverse logistics on supply chain performance

Purpose – The purpose of this paper is to analyse the impact of reverse logistics on order and inventory variance amplification in a single-echelon supply chain (SC) and to propose a new order policy for dampening such amplification. Design/methodology/approach – A general review of the literature on sustainable operations and on the impact of reverse logistics on SC performance provides the foundation for the study. The authors use difference equation math approach for modelling and analysing a closed SC. A proper design of experiment and data collected from the European Union statistics validate the obtained numerical results. Findings – The variability of reverse flow in a closed loop SC increases the serviceable inventory variance. However, a proper design of the reverse flow considerably improves the global performance. To this purpose, the authors propose a new order policy, namely R-APIOBPCS, which explicitly considers the reverse flow of products. Research limitations/implications – The paper pres...

On the Bullwhip Avoidance Phase: The Synchronised Supply Chain

The aim of this paper is to analyse the operational response of a Synchronised Supply Chain (SSC). To do so, first a new mathematical model of a SSC is presented. An exhaustive Latin Square design of experiments is adopted in order to perform a boundary variation analysis of the main three parameters of the periodic review smoothing (S,R) order-up-to policy: i.e., lead time, demand smoothing forecasting factor, and proportional controller of the replenishment rule. The model is then evaluated under a variety of performance measures based on internal process benefits and customer benefits. The main results of the analysis are: (I) SSC responds to violent changes in demand by resolving bullwhip effect and by creating stability in inventories under different parameter settings and (II) in a SSC, long production–distribution lead times could significantly affect customer service level. Both results have important consequences for the design and operation of supply chains.

Business process-oriented design of Enterprise Resource Planning (ERP) systems for small and medium enterprises

In the last few years, many organizations have used business process modelling as an effective tool for managing organizational changes. However, process modelling has rarely been exploited for supporting the entire business process management life cycle. This includes the design of business processes as well as their implementation and control. The adoption and implementation of Enterprise Resource Planning (ERP) systems is a crucial issue if referred to small and medium-sized enterprises. The main problem is that the cost of implementation of ERP, intended as the process of customization of the ERP system towards the actual enterprise business processes, overtakes the cost of ERP acquisition. Thus, there is a need to use the same workflow systems for both modelling the enterprise business processes and designing the ERP. The paper presents the results of a collaborative project between academia and industry aimed at developing a business process management integrated approach to the design, implementation and control of an ERP information system.

Production planning in reconfigurable enterprises and reconfigurable production systems

Reconfigurable enterprises and reconfigurable production systems represent nowadays one of the key responses towards the organisational and manufacturing needs arising in the new era known as mass customization. The paper proposes an Agent Based approach for the production planning activities in reconfigurable enterprises, characterized by complex, articulated and geographically distributed production capacities contended by many product families and composed by reconfigurable production systems that allow quick adjustment of production capacity and functionality consenting to manufacture different products of the same part family.

An Object-Oriented Approach for Flexible Manufacturing Control Systems Analysis and Design Using the Unified Modeling Language

In reacting to global competition and rapidly changing customer demands, industrial business organizations have developed a strong interest in flexible automation. The aim of flexible automation focuses on achieving agility in handling uncertainties from internal or external environments. Modeling complex structures, promoting reuse, and shortening the development time cycle are particularly significant aspects in the analysis and design of CIM systems, where heterogeneous elements have to be integrated in a complex control architecture. The design methodology for FMS control software involves the abstraction of an FMS and the estimation of the system performances. The aim of this activity is to suggest the optimal configuration of an FMS for given specifications, through simulation tools. In the software engineering field, object-oriented (OO) approaches have proven to be a powerful technique with respect to such aspects. The unified modeling language (UML), by using OO design methodologies, can offer reusability, extendibility, and modifiability in software design. Also, it bridges the gap that exists between the OO analysis and design area and the area of OO programming by creating an integrative metamodel of OO concepts. The specific goal of this paper is to formulate a new methodology for developing reusable, extendible, and modifiable control software for an FMS in an object-oriented environment. It is demonstrated that, with few diagrams, UML can be used to model such systems without being associated with other modeling tools.

The effect of Inventory Record Inaccuracy in Information Exchange Supply Chains

The goal of this paper is to quantify the impact of Inventory Record Inaccuracy on the dynamics of collaborative supply chains, both in terms of operational performance (i.e. order and inventory stability), and customer service level. To do so, we model an Information Exchange Supply Chain under shrinkage errors in the inventory item recording activity of their nodes, present the mathematical formulation of such supply chain model, and conduct a numerical simulation assuming different levels of errors. Results clearly show that Inventory Record Inaccuracy strongly compromises supply chain stability, particularly when moving upwards in the supply chain. Important managerial insights can be extracted from this analysis, such as the role of ‘benefit-sharing’ strategies in order to guarantee the advantage of investments in connectivity technologies.

Reconfiguration: a key to handle exceptions and performance deteriorations in manufacturing operations

During a manufacturing operation, exceptions may occur dynamically and unpredictably. Their occurrence may lead to the degradation of system performance or, in the worst case scenario may interrupt the production process by causing errors in the schedule plan. This paper classifies three families of exceptions: (1) out-of-order events such as machine breakdowns, (2) operational out-of-ordinary events such as rush orders and (3) deteriorations of manufacturing resource performance such as reductions of machines’ utilization. In all cases, in order to maintain an adequate level of system performance, it is necessary to detect exceptions, to diagnose them quickly and to recover them by taking corrective actions to avoid fault propagations. Decisions concerning how to deal with exceptions, i.e. which strategy to implement, depend on the manufacturing environment (dedicated line, flexible system, reconfigurable system or a mix of them) and the advantages arising from using a certain exception handling policy vary from one production system to another. The activity of reconfiguring manufacturing resources has been demonstrated to be a powerful operation strategy to handle machine breakdowns. This paper extends the concept of ‘reconfiguration for exception handling’ to other families of exceptions and proposes reconfiguration for their recovery. The reconfiguration process is handled by an agent-based control system that implements four negotiation processes among manufacturing resource agents.

Inventory record inaccuracy in supply chains: the role of workers’ behavior

Purpose – The purpose of this paper is to explore the effect of inventory record inaccuracy due to behavioral aspects of workers on the order and inventory variance amplification. Design/methodology/approach – The authors adopt a continuous-time analytical approach to describe the effect of inbound throughput on the inventory and order variance amplification due to the workload pressure and arousal of workers. The model is numerically solved through simulation and results are analyzed with statistical general linear model. Findings – Inventory management policies that usually dampen variance amplification are not effective when inaccuracy is generated due to workers’ behavioral aspects. Specifically, the psychological sensitivity and stability of workers to deal with a given range of operational conditions have a combined and multiplying effect over the amplification of order and inventory variance generated by her/his errors. Research limitations/implications – The main limitation of the research is that...

High Level Planning of Reconfigurable Enterprises: a Game Theoretic Approach

Reconfigurable Enterprises (REs) represent production networks made of different and geographically dispersed plants that, in case of unpredictable market changes, can be reconfigured in order to gather a specific production objective. However, REs effectiveness and efficiency depend on the extent to which global performance is obtained. Basically two approaches are available to reach coordination: centralised or decentralised planning tools. In this paper, the authors propose a novel cooperative game theoretical approach for distributed production planning at high level of a RE; the proposed approach has been benchmarked in front of both a distributed one, based on negotiation, and a centralized one.

Current economic downturn and supply chain: the significance of demand and inventory smoothing

The aim of this article is to analyse and quantify the effects of demand and inventory smoothing into supply-chain performance, facing the extreme volatility and impetuous alteration of the market produced by the current economic recession. To do so, we model a traditional serial three-stage supply chain and we test five settings of order smoothing under two shocks in the market demand, and we measure effects in terms of internal process benefits and customer service level of all supply chain partners. Results show that the implementation of this inventory strategy should be based on reward schemes; in fact a higher level of smoothing can generally improve the performance of the upstream stages. On the contrary, this approach cannot be always beneficial for the retailer as the decrease in service level can outweigh the decrease in bullwhip.