Decision Sciences Journal
Volume 29, Number 3
Summer 1998
Reconfiguring the Supply Network Using Current Performance
Data
Anthony Ross
Department of Business Analysis and Research, College of Business,
Texas A&M University, College Station, TX 77843-4217, email:
aross@acs.tamu.edu
M. A. Venkataramanan
Department of Operations and Decision Technologies, School of
Business, Indiana University, Bloomington, IN 47405, email: venkatar@ucs.indiana.edu
Kathryn W. Ernstberger
Division of Business and Economics, Indiana University Southeast,
New Albany, IN 47150, email: kernst@iusmail.ius.indiana.edu
Abstract: Reconfiguration of the supply chain network
from time to time is essential for businesses to retain their
competitive edge. This paper presents a methodology for reconfiguration
of an existing supply chain network. The methodology is characterized
by two decision levels. In the first level, the current network
performance is evaluated and efficient practices are identified.
In the next level, a model that incorporates efficient practices
is developed to reconfigure the network. This integrated methodology
allows for decision maker (DM) input throughout the process.
The methodology has been implemented and tested in the reconfiguration
of an outbound petroleum supply chain network for CountryMark
Cooperative, Inc. In this case study, Data Envelopment Analysis
(DEA) is used to analyze current operations and an integer programming
(IP) model that incorporates efficiency metrics is developed
for selection of distribution facilities and allocation of resources
to the facilities. Use of this methodology can lead to improved
operations and reduced operating expenses.
Subject Areas: Data Envelopment Analysis, Distribution,
and Supply Networks. |