• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Norges Handelshøyskole
  • Department of Business and Management Science
  • Discussion papers (FOR)
  • View Item
  •   Home
  • Norges Handelshøyskole
  • Department of Business and Management Science
  • Discussion papers (FOR)
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Speciality oils supply chain optimization: from a decoupled to an integrated planning approach

Guajardo, Mario; Kylinger, Martin; Rönnqvist, Mikael
Working paper
Thumbnail
View/Open
0312.pdf (401.5Kb)
URI
http://hdl.handle.net/11250/227261
Date
2012-03
Metadata
Show full item record
Collections
  • Discussion papers (FOR) [556]
Abstract
We study a problem of tactical planning in a divergent supply chain. It

involves decisions regarding production, inventory, internal transportation,

sales and distribution to customers. The problem is motivated by the context

of a company in the speciality oils industry. The overall objective at

tactical level is to maximize contribution and, in order to achieve this, the

planning has been divided into two separate problems. The first problem concerns

sales where the final sales and distribution planning is decentralized to

individual sellers. The second problem concerns production, transportation

and inventory planning through refineries, hubs and depots and is managed

centrally with the aim of minimizing costs. Due to this decoupling, the solution

of the two problems needs to be coordinated in order to achieve the

overall objective. In the company, this is pursued through an internal price

system aiming at giving the sellers the incentives needed to align their decisions

with the overall objective. We propose and discuss linear programming

models for the decoupled and integrated planning problems. We present

numerical examples to illustrate potential effects of integration and coordination

and discuss the advantages and disadvantages of the integrated over

the decoupled approach. While the total contribution is higher in the integrated

approach, it has also been found that the sellers' contribution can be

considerably lower. Therefore, we also suggest contribution sharing rules to achieve that both the company and sellers get a better outcome under the

integrated planning.
Publisher
FOR
Series
Discussion paper;03/12

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit