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Modelling Of Supply Chain For Financial And Pricing Decisions

Abstract:
Integrating the various parameters and functionality of all the members which participate to produce/deliver product service in accordance to customers demand is the prime responsibility of the supply chain manager. The delivery performance of such a network can be maximized by synchronizing the work through the system in such a way that the finished products reach the customer, who has a specific demand probability. The following work realizes the implications of this delivery performance in the nodes of the supply chain through various financial parameters. It also proposes a mathematical model to analyze the consequences of a shift in the delivery performance at a particular node in the entire supply chain.

Problem considered:
The problem definition can be given as modeling of a supply chain for financial parameters and their distribution using SPC (Statistical Process Control) techniques.

Objective of the Work
The specific topical aspects of the work include study of the design of the supply chains and application of the concept of statistical process control along with the detailed study of various process indices and relating various costs and pricing decisions to the existing process capability indices to formulate mathematical correlations.

Approach to the solution of the problem
The design of the problem was done in a step-by-step incremental manner.
The methodology followed was,
a) Study of Supply chains
b) Study of research work done in the field of applying six-sigma approach to supply chains.
c) Study of research work done on process capability indices, cost, and pricing functions in the supply chains.
d) Analysis and identification of various key parameters involved in cost and financing decisions in various supply chains.
e) Relating process capability indices to the key parameters.
f) Designing a supply chain that incorporates these key parameters and gives optimal solutions to take the cost and pricing decisions.
g)...