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ارائه درس مدیریت زنجیره تامین استاد راهنما :آقای دکتر هاشمی. ارائه دهنده : محمد امین نوری. Paper Title. Effects of Information Sharing on Supply Chain Performance in Electronic Commerce Fu-ren Lin, Sheng-hsiu Hiang, Sheng-cheng Lin. 3. Problem Description. 4. Extranet.
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ارائه درس مدیریت زنجیره تامیناستاد راهنما :آقای دکتر هاشمی • ارائه دهنده : • محمد امین نوری
Paper Title • Effects of Information Sharing on Supply Chain Performance in Electronic Commerce • Fu-ren Lin, Sheng-hsiu Hiang, Sheng-cheng Lin 3
Extranet • Extends from intranet concept. • It is the medium for B2B electronic commerce. • Companies use it for: • exchange large volume of data. • share product catalog exclusively with wholesalers. • collaborate with other companies. • jointly develop training program with other companies. • provide or access services. • share news of common interest with partner companies. 5
Cont. • Information sharing levels: • order • inventory • demand • Effects: • Foster electronic marketplace by numerous business transaction between buyers and sellers. • by increasing the costs of switching to new trading partners, networks strengthen existing commercial relationships and lock in partners. 6
Sharing information in a supply chain • Internet • public network • general users • inconsistent format and diversified content and fragmented information • Intranet • private network • member of organization • information is proprietary • Extranet • semiprivate • accessible to specified firms 8
Information sharing level • order information exchanging • operation information sharing • strategic information sharing • strategic and competition information sharing 9
Transaction Costs to Explain the Supply Chain Structure • Transaction cost economy (TCE) views the degree of outsourcing and governance structure selection within a dichotomy between markets and hierarchies. • transaction costs, such as locating a reliable supplier, establishing, monitoring and enforcing a contract, and coordinating with the supplier for the duration 10
Buyer - Seller Relation • a firm benefits from increasing the number of its business partners, thereby broadening its choices. • number limitation: • cost of setting up a relation • search cost • transaction cost • tightly coupled operations supported by IT require increased investments by suppliers in noncontractible resources, such as quality, innovation, and information sharing. 11
Hypotheses 12
Supply Chain Structure • The deployment of Extranet due to the shifting paradigm toward outsourcing. • autonomous or semiautonomous business partner. • can be simulated in the multiagent system. 13
Modeling Supply Chain with Swarm • simulation technology is an emerging tool that helps firms model and evaluate supply chain management • Traditional simulation tools may be useful in simulating hierarchical production systems with centralized decision making. • multiagent systems are appropriate to model supply chains as they involve divisible processes with loosely coupled command and control 15
Decision Model of Governance Structure • information technology lowers coordination costs, which results in increased outsourcing activities • According to TCE, a firm’s outsourcing decision depends upon the total cost • Total cost Production cost Transaction cost • When considering transaction costs, coordination costs are considered. 16
Coordination Cost • Performance characteristics of IT obviously influence coordination costs. • Coordination costs include the cost of exchanging information on products and demand and change updates regarding delivery schedules of the product • Actions to reduce uncertainties or to mitigate their effects increase a firm’s coordination cost. • inventory and monitoring costs can be used as reasonable proxies for coordination costs. • inventory handling costs and stock-out costs can represent inventory cost • Stock-out costs may represent lost sales, the opportunity cost for idle capital equipment, goodwill losses due to customer dissatisfaction, or the cost of restarting a production process once it has ceased. 17
Cont. • Monitoring costs can be modeled as the ability of the controlling process to respond to changes from the downstream process • Inventory turnover, overdue deliveries, and the extent of unacceptable items can be employed as indicators to measure the performance outcome of purchasing arrangements • The cost of maintaining inventory decreases as turnover increases: higher turnover implies superior inventory performance • overdue deliveries and unacceptable items can be employed to indicate purchasing costs 18
Cost Model 19
Methodology 20
Structure of Simulation System • The implementation of the Swarm simulation system incorporates multiple agents with the decision model to, in turn, determine the relationship with their trading partners. • A trading partner contains several agents, including order management, inventory management, policy management, production, production planning, and purchasing. 21
Simulation Parameters • The manufacturing process is a typical divergent assembly process suitable for mass-customization. • The assembly-to-order (ATO) demand management policy is generally applied to its OFP. • several parameters, which may determine agents’ behaviors, must be specified prior to the simulation. These parameters include the initiated parameters of a supply chain, the information sharing levels between buyers and suppliers, the demand management policy of each entity in the supply chain, and the patterns of demand order variation. • Three levels of information sharing were implemented in our simulation to identify their respective effects. • Entities in the supply chain network have their own demand management policies, such as make-to-order (MTO), make-to- stock (MTS), and ATO. 22
Result 26
Experimental Design • Five sets of experiments were executed • In each experiment, four parameters—the average order arrival interval, interval variation, average quantity, and quantity variation of each order for a specific end product—were used to represent the average order quantity and order variation 27
Demand Pattern Determined by Different Order Generation Configuration 28
Factors to Determine Supply Chain Performance • in-time order fulfillment rate (iofr), calculated as m/n where m denotes the number of orders fulfilled by the promised date during one period and n denotes the total incoming orders during that same period. • Average order cycle time rate (aoctr), calculated as where m is the total number of orders, tai is the actual order cycle time of order i, and tei is the expected order cycle time of order i. • Transaction frequency, defined as the times and intervals that the buyer purchases components from its suppliers. • Total cost, calculated as coordination costs added to production cost, where the former include inventory cost, monitoring cost, and stock-out cost 29
Experimental Result • Experiment1(low average order quantity): • Information Sharing level 2: buyer can fulfill orders and reduce stock-out, monitoring, and production costs more effectively,a buyer tends to cooperate with a limited number of suppliers for a longer period of time. • Information Sharing level 3: a buyer can achieve the greatest total cost saving • Experiment2 (high average order quantity): • Information Sharing level 3: achieves the best total cost saving. A buyer also receives the highest order fulfillment rate and the shortest cycle time. • Notably, a buyer switches suppliers more frequently by sharing Level 1 or Level 3 information than that by Level 2 information. 30
Cont. • Experiment3 (High Order Quantity Variation): • Information Sharing Level1: The buyer remains with one supplier over a long period of time • Information Sharing level2: can obtain relatively lower production and coordination costs. • Information Sharing level3: can obtain relatively lower production and coordination costs, highest in-time fulfillment rate and cycle time rate. • Experiment4 (High Order Interval Variation): • Information Sharing level1: A buyer switches suppliers frequently • Information Sharing level2: reduces stock-out cost and thus results in higher in-time order fulfillment rate and cycle time rate • Information Sharing level3: A buyer switches suppliers frequently, The supply chain obtains the lowest total cost by sharing, reduces stock-out cost and thus results in higher in-time order fulfillment rate and cycle time rate 31
Cont. • Experiment5 (High Order Interval and Quantity Variations): • Information Sharing level2: may require the highest inventory cost, The supplier switching frequency • Information Sharing level3: yields the lowest total costs. It also has the best fulfillment and cycle time rate performance. 32