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Design of Six Sigma Supply Chains

Garg, Dinesh and Narahari, Y and Viswanadham, N (2003) Design of Six Sigma Supply Chains. In: 2003 IEEE International Conference on Robotics and Automation, ICRA '03, 14-19 September, Tsipei,Taiwan, Vol.2, 1737 -1742.


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Variability reduction and business pmcess synchronization are achowledged as key to achieving sharp and timely deliveries in supply chain networks. In this paper, we introduce a new notion, which we call six sigma supply chains to describe and quantify supply chains with sharp and timely deliveries, and develop an innovative approach for designing such networks. We show that design of six sigma supply chains can he formulated as a mathematical programming prohlem, opening up a rich, new framework far studying supply chain design optimization problems. To show the efficacy of the notion and the design methodology, we focus on a design optimization problem, which we call as the Inventory Optimization (IOW) problem. We formulate and solve the IOW problem far a four stage, make-to-order liquid petroleum gas supply chain. The solution of the problem offers rich insights into inventory - service level tradeoffs in supply chain networks and proves the potential of the new approach presented in this paper.

Item Type: Conference Paper
Publisher: IEEE
Additional Information: Copyright 1990 IEEE. Personal use of this material is permitted. However, permission to reprint/republish this material for advertising or promotional purposes or for creating new collective works for resale or redistribution to servers or lists, or to reuse any copyrighted component of this work in other works must be obtained from the IEEE.
Department/Centre: Division of Electrical Sciences > Computer Science & Automation
Date Deposited: 10 Jan 2006
Last Modified: 19 Sep 2010 04:22
URI: http://eprints.iisc.ac.in/id/eprint/5000

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