Supply Chain Collaboration Through Shared Capacity Models

Shamin A. Shirodkar · Karl G. Kempf

40 citations0/0 files storedINFORMS Journal on Applied Analytics

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Supply Chain and Inventory Management Quality and Supply Management Sustainable Supply Chain Management

Abstract

Collaboration between companies in a supply chain has been the subject of a great deal of discussion supported by a surprisingly small number of documented successful implementations. To help Intel to procure production materials, we applied multiple mathematical optimization models, each facilitated by shared capacity models developed in collaboration with material suppliers. One decision tool supports the weekly process of ordering materials. A second tool forecasts capacity rearrangements that suppliers need to consider over the next few quarters. Supplier capacity expansion spanning the next few years is the focus of a third tool. All parties have realized productivity and profitability gains using this set of integrated tools.

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References

1999Quantitative Models for Supply Chain Management 1995Channel Coordination and Quantity Discounts 1998Note. The Role of Returns Policies in Pricing and Inventory Decisions for Catalogue Goods 2004Designing Supply Contracts: Contract Type and Information Asymmetry 2001Exploring the experiences of collaborative planning initiatives 1999Supply Chain Contracting and Coordination with Stochastic Demand 2005An Examination of Collaborative Planning Effectiveness and Supply Chain Performance 1999Supply Contracts with Quantity Commitments and Stochastic Demand

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2007Collaborative Planning 2014Interorganizational Shared Services: Creating Value across Organizational Boundaries 2008Design of cooperative processes in a customer–supplier relationship: An approach based on simulation and decision theory 2015Coordinating decentralized linear programs by exchange of primal information

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