On the configuration and planning of dynamic manufacturing networks
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ORIGINAL PAPER
On the configuration and planning of dynamic manufacturing networks Nikolaos Papakostas • Konstantinos Efthymiou • Konstantinos Georgoulias • George Chryssolouris
Received: 3 August 2012 / Accepted: 23 August 2012 / Published online: 14 September 2012 Springer-Verlag 2012
Abstract Manufacturing organizations have been attempting to improve the operation of supply networks through efficient supply chain management. Dynamic manufacturing networks (DMNs) constitute chains of diverse partners, whose operation and interaction may change in a rapid and often not predictable way. While the existing supply chain models are quite static and examine transportation modes, product changeover and production facility options with fixed suppliers and over a long period of time, the DMNs address operations and risks on a daily basis. In this paper, a novel decision-making approach is proposed for supporting the process of configuring a DMN from a holistic perspective, taking into account production, transportation and time constraints as well as multiple criteria such as time and cost. Keywords Supply chain management Scheduling Production planning Logistics Network design
1 Introduction In a volatile market environment, today’s manufacturing organizations strive to improve their performance, while providing customers with more customization options [1]. The main classes of attributes to be considered when making manufacturing decisions, that is, cost, time, quality and flexibility, are closely interrelated and have been
N. Papakostas K. Efthymiou K. Georgoulias G. Chryssolouris (&) Laboratory for Manufacturing Systems and Automation, Department of Mechanical Engineering and Aeronautics, University of Patras, Patras, Greece e-mail: [email protected]
investigated toward optimization, in an attempt to improve product quality, to confront market competition, to shorten lead times, as well as to reduce costs. These aspects constitute the main reason for the increasing complexity met in modern manufacturing systems. Controlling this complexity with conventional methods, such as the approaches based on manufacturing resource planning (MRP II) principles and concepts, requires more and more data and is becoming extremely difficult to manage. One of the top business pressures, dealt by enterprises, is the need to react to demand changes in a timelier manner. Further to having to address the increase in year-over-year fulfillment and transportation costs per unit, companies have been attempting to improve the cross-channel supply chain flexibility in order to achieve a faster reaction to demand changes and to improve supply chain responsiveness [2]. Manufacturing companies should be able to quickly restructure or transform the supply chain execution (source-deliver processes) in response to an evolving global, multi-channel supply chain scenario. However, a lot of companies still do not have the ability to respond to dynamic demand cycles, while, at the same time, the increased globalization push
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