E. van Sliedregt
Coordinated supply chain management.
Report 97.3.LT.4828, Transport Technology, Logistic Engineering.
In the past, organizations have focused their efforts on making effective
decisions within a facility. In this case, the various functions of an
organization, including assembly, storage, and distribution are generally
decoupled into their functional and geographic components through buffers
of large inventories. In this way, the complexity of the decisions is
reduced since each component is treated independently of the others.
Ignoring these component dependencies can have costly consequences. This
becomes increasingly apparent with market globalization.
Nowadays, organizations increasingly make efforts to coordinate and
control all the components of the supply chain in order to provide goods
and services to customers at low cost and high service levels.
Many models are since developed to coordinate the different stages in the
supply chain or even coordinate total supply chains. Also models to
address strategic decision making are popular as they have proven that for
example, big savings can be made by appropriately locating new
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