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YSP 2009 Research Assignment
| Understanding the Supply
Chain and How Delays Affect Supply Chain Management |
Principal
Investigator |
Rifat Sipahi
Assistant Professor
Mechanical and Industrial Engineering |
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Research
Abstract |
Any product in the market can effectively reach
to consumers only if the supply chain designed to
deliver this product works efficiently. For instance,
a computer manufacturer sells products to U.S. market,
it receives chips and electronic parts from overseas.
Such a supply chain construction is inevitable due
to economical reasons (overseas may provide cheaper
parts), however, shipment delays become significant
and transportation disruptions can put the American
company into difficulty in responding to its customers
effectively. In the contrary, due to delays, unnecessarily
large number of products may accumulate as well, especially
by the time products arrive to the stores the consumer
demand might be low. This causes stocking problems
and the company will loose money to get rid of these
extra products by offering sales.
It is therefore very imporatnt to investigate how
shipment and transportation delays may affect the
number of products in the inventories. If we can understand
how these effects play role in the inventory levels,
then we can also find ways to propose better supply
chain management strategies, which can ultimately
save companies millions of dollars. |
| Research
Activities/
Experience |
The research activity to be performed is summarized
as follows. First of all, the students will be asked
to pick their favorite commerically available product.
Next, the students will investigate what components
when they get together form this product and the geographic
location of each component will be identified (U.S.,
Europe, Asia, etc.). Students will then draw a supply
chain map and lay out the shipment times. This will
be a map showing how products flow and affect multiple
inventories of the company. Next, we will study different
scenarios via computer simulation softwares. Some
scenarios are: (1) what if a storm happens and no
products arrive from overseas;(2) what if the consumer
demand goes up suddenly, the manager orders new products
to respond to consumers, but by the time the new products
arrive to the stores it is too late because the consumer
demand went down; (3) what if two companies collaborate
and whichever has too many products, it sells these
extra products to the second company at a reduced
cost. |
| Helpful
skills or interests |
Good background in mathematics and pyhsics. If students
know how to use Microsoft Excel, this would be a plus. |
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