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Achieving Sharp Deliveries in Supply Chains Through Variance Pool Allocation

Garg, Dinesh and Narahari, Y and Viswanadham, N (2002) Achieving Sharp Deliveries in Supply Chains Through Variance Pool Allocation. In: IEEE International Conference on Robotics and Automation, 2002. ICRA '02, 11-15 May, Washington, Vol.3, 2345-2350.


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In this paper, our objective is to come up with a sound methodology to design supply chains with outstanding delivery performance. As the first step towards this objective, we consider supply chains with a linear workflow, which we call pipelined supply chains. We define a new index of delivery performance called delivery sharpness which measures the precision as well as the accuracy with which products are delivered to the customers. The specific problem we solve is: given the delivery sharpness to be achieved, how can we allocate variability across individual stages of the supply chain in a cost-effective way. We call this the variance pool allocation (VPA) problem. In formulating and solving the VPA problem, we explore interesting relationships among process capability indices $C_p$,$C_{Pk}$,and $C_{Pm}$, and generalize the notion of Motorola six sigma performance. The VPA problem leads to a four step design methodology and the resulting optimization problem is solved using the method of Lagrange multipliers. We present an interesting example of a supply chain in the plastics industry and illustrate the different steps of our methodology

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.
Keywords: Supply chain lead time;Cycle time compression;Delivery Probability (DP);Delivery Sharpness (DS);Process Capability Indices, Variance Pool Allocation (VPA);Generalized Motorola Six Sigma (GMoSS) Concept
Department/Centre: Division of Electrical Sciences > Computer Science & Automation
Date Deposited: 02 Feb 2006
Last Modified: 19 Sep 2010 04:23
URI: http://eprints.iisc.ac.in/id/eprint/5263

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