Extending analytical target cascading for optimal configuration of supply chains with alternative autonomous suppliers

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37 Citations (Scopus)

Abstract

Analytical target cascading (ATC) is capable of solving the supply chain configuration (SCC) problem in a decentralized manner by decomposing the entire supply chain into stages and formulating sub-problems associated with stages in separate ATC elements. This paper considers a supply chain where alternative suppliers of a stage are entitled to autonomous decision rights for configuring their respective upstream supply chain. These alternative suppliers form "OR" ATC elements where only one will be selected and configured in the supply chain. The standard ATC method is unable to deal with this type of SCC problems. This paper discusses how such a standard ATC method can be extended to accommodate "OR" elements, in terms of working logic and mathematical formulation. By the extension, the alternative selection of "OR" elements will be integrated into the target cascading process, and the selection criteria accord with the overall optimization objectives. Two case studies are used to demonstrate how and how well the extended ATC method works respectively. Factors that affect the selection results of "OR" elements are also identified through sensitivity analyses.

Original languageEnglish
Pages (from-to)39-54
Number of pages16
JournalInternational Journal of Production Economics
Volume115
Issue number1
DOIs
Publication statusPublished - Sept 2008
Externally publishedYes

Keywords

  • Analytical target cascading
  • Autonomy
  • Coordination
  • Decision right
  • Decomposition-based optimization
  • Supply chain configuration

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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