State of the Art in Supply Chain - Overview -
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1 State of the Art in Supply Chain - Overview - Sunwon Park Dept. of Chemical and Biomolecular Engineering KAIST Daejeon, Korea
2 What is Supply Chain Management? Supplier Manufacturing Distribution Retail Outlet Consumer Material Flow Information Flow Cash Flow Profit Supply chain management refers to integrated planning : - Functional integration of purchasing, manufacturing, transportation, warehousing, and sales activities - Spatial integration of activities across geographically dispersed vendors, facilities, and markets - Intertemporal integration of activities over strategic, tactical, and operational planning horizons
3 Supply Chain System Hierarchy Demand Forecasting and Order Management System Production Planning Optimization Modeling Systems Production Scheduling Optimization Modeling Systems Materials Requirement Planning Systems Strategic Optimization Modeling System Tactical Optimization Modeling System Enterprise Resource Planning System Logistics Optimization Modeling System Analytical IT Distributions Scheduling Optimization Modeling Systems Transactional IT Distributions Requirements Planning System Scope Strategic Analysis Long-Term Tactical Analysis Short-Term Tactical Analysis Operational Analysis External Data Management Systems Source: Tayur,, et al. [1999]
4 IT Trend for Business Applications Automation Computerized Accounting Data Integration Information Management OA FA IT Trend for Business EIS MIS MRP QMS MMS CIM FMS EIS DSS ERP PDM MES QMS MMS IMS Integration with external EIS DSS SFA SCM ERP PDM MES QMS MMS IMS Virtual Integration Employees Partners Web-based based Portal Virtual Enterprise Internet Intranet Extranet Public Customers Past Present Future Source: Kim. PSE Asia [2002]
5 Session Program What is Missing to Enable Optimization of Inventory Deployment and Supply Planning? Sridhar Tayur Present SmartOps and Carnegie Mellon University Supporting Supply Chain Planning and Scheduling in Oil and Chemical Industry Nort Thijssen Shell Global Solutions International Future Challenges of Strategic Supply Chain Planning and Modeling Jeremy Shapiro Slim Technologies and MIT
6 What is missing to enable optimization of inventory deployment and supply planning? Sridhar Tayur Persistent drivers of inventory inefficiency Inherent and increasing supply and demand uncertainty Increasing complexity in multistage supply chain Uncoordinated decision-making within companies and across supply chains Optimization of inventory deployment and supply planning are enabled by following approaches Stochastic approach directly accommodates supply and demand uncertainty, variability, and complexity. All inventory forms and components are simultaneously, holistically optimized. Supply chain interdependencies are accounted for and managed over time. Coordinating decisions across functions, echelons, and enterprises is used.
7 Challenges of strategic supply chain planning and modeling Jeremy Shapiro Enlarging Enlarging the the scope scope of of strategic strategic planning planning studies studies and and models models Reflecting Reflecting theories theories of of strategy strategy in in data-driven data-driven optimization optimization models models Formalizing Formalizing scenario scenario planning, planning, applying applying stochastic stochastic programming programming and and modeling modeling risk risk Expanding Expanding business business processes processes to to exploit exploit fact-based fact-based analysis analysis of of strategic strategic plans plans
8 Supporting supply chain planning and scheduling decisions in the oil & chemical industry Nort Thijssen Core requirements for an integrated tool set Integration Convergence Modularity Scalability Viewing Speed Complete horizontal integration Seamless system from feedstock trade through to product trading Convergence of strategy, planning and scheduling Vertical systems integration Phased implementation and scheduling Application to the most simple and/or complex supply chains Interactive, customized viewing Internet and workflow enabled viewing Real-time optimization speed GMOS/NetSim Accessing Accessing best best practice practice know-how know-how from from supply supply chain chain all all over over the the globe globe Getting Getting quick quick practical practical answer answer with with solving solving real real problem problem Enhancing Enhancing business business vision vision and and direction direction Link Direct links to online refinery/plant optimization
9 Speaker: Dr. Sridhar R. Tayur Current position Prof. Prof. of of Operations Operations Management Management and and Manufacturing, Manufacturing, CMU CMU President President of of SmartOps SmartOps Educational Backgrounds B.Tech, B.Tech, IIT, IIT, Madras Madras Ph.D., Ph.D., Cornell Cornell Univ. Univ. Research interests Internet-enabled Internet-enabled supply supply chains, chains, supply supply chain chain management, management, managing managing product product variety, variety, plant plant management, management, JIT JIT and and logistics logistics
10 Speaker: Dr. Jeremy Shapiro Current position Prof. Prof. of of Operations Operations Research Research and and Management Management Science Science Emeritus, Emeritus, MIT MIT President President of of SLIM SLIM Technologies Technologies Educational Backgrounds B.M.E. B.M.E. and and M.I.E., M.I.E., Cornell Cornell Ph.D., Ph.D., Stanford Stanford Research interests Integer Integer programming, programming, large-scale large-scale programming programming on on parallel parallel computers, computers, integration integration of of mathematical mathematical programming programming and and heuristic heuristic methods, methods, supply supply chain chain management management and and portfolio portfolio optimization optimization
11 Speaker: Nort Thijssen Current position Senior Senior Consultant Consultant Shell Shell Global Global Solution Solution International International Educational Educational Backgrounds Backgrounds M.S., M.S., Univ. Univ. of of Technology, Technology, Eindhoven Eindhoven Netherlands Netherlands Professional experiences Shell Shell research research center center in in Amsterdam, Amsterdam, 1981~1988, 1981~1988, Decision Decision support supportsystem system Shell Shell refinery, refinery, 1988~1992, 1988~1992, Refinery Refinery planning planning & scheduling scheduling Shell Shell Global Global Solution Solution International, International, 1993~present, 1993~present, Supply Supply chain chain optimization optimization services services for for the the oil oil chemicals chemicals & gas gas industry industry
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