SUPPLY NETWORK CONFIGURATION USING THE VALUE ENGINEERING BASED METHOD
DOI:
https://doi.org/10.23055/ijietap.2010.17.1.162Keywords:
Supply network configuration, Value Engineering (VE), Taguchi method, Supply Chain Operations References (SCOR)Abstract
Supply network configuration considers the whole business logistics to maximize the economic performance of an enterprise. It is a complex strategic decision problem that concerns the long-term organization of suppliers, production factories, distribution centers, and manufacturing resources, thus an efficient decision support is necessary. This paper proposes a decision support method for the supply network optimization. In this method, the business process of a supply chain is described by the Supply Chain Operations References (SCOR) models firstly. Then the value of business processes in the supply chain is evaluated using the Value Engineering (VE) methodology, wherein the processes are defined by function analysis with quantitative comparison to select key functions. And the concept of quality and robustness of Taguchi method is applied to evaluate the performance of different alternatives which are generated by key functions. A case application of global enterprise is elaborated. The results show that the proposed model can effectively optimize the supply network configuration.Downloads
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