Simulation of Lean Principles Impact in a Multi-Product Supply Chain
The market competition is moving from the single
firm to the whole supply chain because of increasing competition and
growing need for operational efficiencies and customer orientation.
Supply chain management allows companies to look beyond their
organizational boundaries to develop and leverage resources and
capabilities of their supply chain partners. This creates competitive
advantages in the marketplace and because of this SCM has acquired
strategic importance. Lean Approach is a management strategy that focuses on reducing
every type of waste present in an organization. This approach is
becoming more and more popular among supply chain managers. The supply chain application of lean approach is not frequent. In
particular, it is not well studied which are the impacts of lean
approach principles in a supply chain context. In literature there are
only few studies aimed at understanding the qualitative impact of the
lean approach in supply chains. Therefore, the goal of this research
work is to study the impacts of lean principles implementation along
a supply chain. To achieve this, a simulation model of a threeechelon
multi-product supply chain has been built. Kanban system (and several priority policies) and setup time
reduction degrees are implemented in the lean-configured supply
chain to apply pull and lot-sizing decrease principles respectively. To
evaluate the benefits of lean approach, lean supply chain is compared
with an EOQ-configured supply chain. The simulation results show
that Kanban system and setup-time reduction improve inventory
stock level. They also show that logistics efforts are affected to lean
implementation degree. The paper concludes describing
performances of lean supply chain in different contexts.
[1] Womack J., Roos D., Jones D. The Machine That Changed The World.
Rawson Associates, New York, N.Y.; 1990.
[2] Ōhno T. Toyota Production System. Cambridge, Mass: Productivity
Press; 1988.
[3] Bicheno, The New Lean Toolbox. Towards Fast, Flexible Flow. 2004.
[4] Schmenner R. Service Businesses and Productivity. Decision Sciences,
2004.
[5] Liker J. The Toyota Way. New York: McGraw-Hill; 2004.
[6] Jasti N., Kodali R. Lean production: literature review and trends.
International Journal of Production Research, 2014.
[7] Reichhart A., Holweg M. Lean distribution: concepts, contributions,
conflicts. International Journal of Production Research. 2007.
[8] Womack, J. P. and Jones, D. T., “From Lean Production to the lean
Enterprise”. Harvard Business Review, 1994.
[9] Liker, J. K., Wu Y. C., “Japanese automakers, U.S. suppliers and
supply-chain superiority”. MIT Sloan management review, 2000.
[10] Lamming R. “Squaring lean supply with supply chain management”.
International Journal of Operations & Produciont Management. 1996.
[11] Gary Jarrett P. An analysis of international health care logistics.
Leadership in Health Services. 2006.
[12] Gavirneni S., Kapuscinski R., Tayur S. Value of Information in
Capacitated Supply Chains. Management Science. 1999.
[13] Gavirneni S. Information Flows in Capacitated Supply Chains with
Fixed Ordering Costs. Management Science. 2002.
[14] Kwak J., Gavirneni S. Retailer policy, uncertainty reduction, and supply
chain performance. International Journal of Production Economics.
2011.
[15] Chen F., Drezner Z., Ryan J., Simchi-Levi D. Quantifying the Bullwhip
Effect in a Simple Supply Chain: The Impact of Forecasting, Lead
Times, and Information. Management Science. 2000.
[16] Lee H., So K., Tang C. The Value of Information Sharing in a Two-
Level Supply Chain. Management Science. 2000.
[17] Portioli Staudacher, A. P., Bush, A. Analyzing the Impact of Lean
Approach in Pharmaceutical Supply Chain. Proceedings of the
International Conference on Health Care Systems Engineering (3-319-
01847-7; 3-319-01848-5). 2014.
[1] Womack J., Roos D., Jones D. The Machine That Changed The World.
Rawson Associates, New York, N.Y.; 1990.
[2] Ōhno T. Toyota Production System. Cambridge, Mass: Productivity
Press; 1988.
[3] Bicheno, The New Lean Toolbox. Towards Fast, Flexible Flow. 2004.
[4] Schmenner R. Service Businesses and Productivity. Decision Sciences,
2004.
[5] Liker J. The Toyota Way. New York: McGraw-Hill; 2004.
[6] Jasti N., Kodali R. Lean production: literature review and trends.
International Journal of Production Research, 2014.
[7] Reichhart A., Holweg M. Lean distribution: concepts, contributions,
conflicts. International Journal of Production Research. 2007.
[8] Womack, J. P. and Jones, D. T., “From Lean Production to the lean
Enterprise”. Harvard Business Review, 1994.
[9] Liker, J. K., Wu Y. C., “Japanese automakers, U.S. suppliers and
supply-chain superiority”. MIT Sloan management review, 2000.
[10] Lamming R. “Squaring lean supply with supply chain management”.
International Journal of Operations & Produciont Management. 1996.
[11] Gary Jarrett P. An analysis of international health care logistics.
Leadership in Health Services. 2006.
[12] Gavirneni S., Kapuscinski R., Tayur S. Value of Information in
Capacitated Supply Chains. Management Science. 1999.
[13] Gavirneni S. Information Flows in Capacitated Supply Chains with
Fixed Ordering Costs. Management Science. 2002.
[14] Kwak J., Gavirneni S. Retailer policy, uncertainty reduction, and supply
chain performance. International Journal of Production Economics.
2011.
[15] Chen F., Drezner Z., Ryan J., Simchi-Levi D. Quantifying the Bullwhip
Effect in a Simple Supply Chain: The Impact of Forecasting, Lead
Times, and Information. Management Science. 2000.
[16] Lee H., So K., Tang C. The Value of Information Sharing in a Two-
Level Supply Chain. Management Science. 2000.
[17] Portioli Staudacher, A. P., Bush, A. Analyzing the Impact of Lean
Approach in Pharmaceutical Supply Chain. Proceedings of the
International Conference on Health Care Systems Engineering (3-319-
01847-7; 3-319-01848-5). 2014.
@article{"International Journal of Business, Human and Social Sciences:71166", author = "M. Rossini and A. Portioli Studacher", title = "Simulation of Lean Principles Impact in a Multi-Product Supply Chain", abstract = "The market competition is moving from the single
firm to the whole supply chain because of increasing competition and
growing need for operational efficiencies and customer orientation.
Supply chain management allows companies to look beyond their
organizational boundaries to develop and leverage resources and
capabilities of their supply chain partners. This creates competitive
advantages in the marketplace and because of this SCM has acquired
strategic importance. Lean Approach is a management strategy that focuses on reducing
every type of waste present in an organization. This approach is
becoming more and more popular among supply chain managers. The supply chain application of lean approach is not frequent. In
particular, it is not well studied which are the impacts of lean
approach principles in a supply chain context. In literature there are
only few studies aimed at understanding the qualitative impact of the
lean approach in supply chains. Therefore, the goal of this research
work is to study the impacts of lean principles implementation along
a supply chain. To achieve this, a simulation model of a threeechelon
multi-product supply chain has been built. Kanban system (and several priority policies) and setup time
reduction degrees are implemented in the lean-configured supply
chain to apply pull and lot-sizing decrease principles respectively. To
evaluate the benefits of lean approach, lean supply chain is compared
with an EOQ-configured supply chain. The simulation results show
that Kanban system and setup-time reduction improve inventory
stock level. They also show that logistics efforts are affected to lean
implementation degree. The paper concludes describing
performances of lean supply chain in different contexts.", keywords = "Inventory policy, Kanban, lean supply chain,
simulation study, supply chain management, planning.", volume = "9", number = "11", pages = "3739-5", }