Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies PDF
Preview Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies
Springer Texts in Business and Economics Hartmut Stadtler Christoph Kilger Herbert Meyr Editors Supply Chain Management and Advanced Planning Concepts, Models, Software, and Case Studies Fifth Edition Springer Texts in Business and Economics Forfurthervolumes: http://www.springer.com/series/10099 Hartmut Stadtler • Christoph Kilger (cid:129) Herbert Meyr Editors Supply Chain Management and Advanced Planning Concepts, Models, Software, and Case Studies 5th Edition 123 Editors HartmutStadtler ChristophKilger InstituteforLogisticsandTransport Ernst&YoungGmbH UniversityofHamburg Saarbrücken Hamburg Germany Germany HerbertMeyr DepartmentofSupplyChainManagement UniversityofHohenheim Stuttgart Germany ISSN2192-4333 ISSN2192-4341(electronic) ISBN978-3-642-55308-0 ISBN978-3-642-55309-7(eBook) DOI10.1007/978-3-642-55309-7 SpringerHeidelbergNewYorkDordrechtLondon LibraryofCongressControlNumber:2014955737 ©Springer-VerlagBerlinHeidelberg2015 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof thematerialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation, broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionorinformation storageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology nowknownorhereafterdeveloped.Exemptedfromthislegalreservationarebriefexcerptsinconnection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. 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Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Preface PrefacetotheFifthEdition More than 15 years have passed since we started working on the first edition of this book.A lothas happenedin the meantime. A dot-combubblehas grownand burst. Another wave of lean managementhas rolled over the planning landscape. Some people still seem to think that Advanced Planning and Lean Management are exclusive philosophies although the automotive industry—as the prime father to Lean—is the best example that both can and should complement each other in a fruitful co-existence and synergy. New buzz words like profit velocity, demandsensingandserviceorientedarchitecturehavecomeandgone.Oftenthey disappearedevenfasterthantheyhaverisen. During the 7 years since publishing our fourth edition consolidation on the AdvancedPlanningSystems’(APS)softwaremarketcontinuedatanunabatedpace. Thus,wedecidedtodosomehistoricalresearchandinsertedasortofgenealogical tree of APS in Chap.16—in addition to our traditionally updated and extended overviewofselected softwaresystemsin Chap.18.Theterm“Sales&Operations Planning” is actually known for more than 25 years in the scientific literature. Nevertheless,duringrecentyearsitcameupasarenewedconceptonthesoftware andconsultingmarket.Wewilldiscusshowthisoldideaisinterpretedinamodern softwareworldwithinseveralchapters. Chapters 6 on Strategic Network Design, 8 on Master Planning and 12 on Transport Planning partly show new authors. This gave reason to restructure and revisetheircontentssubstantially.Withanewcasestudyofthespecialtychemicals industry(Chap. 26),wedonotonlywelcomeanothernewauthor,butalsowillhave a closer look at a “new” software suite and software vendor(at least as this book isconcerned).Ofcoursealotoffurtherupdateshavebeenmade—byfartoomany to be mentioned in this preface. Finally, a new editor has been affiliated. He not onlywasanauthorsincethefirstedition,butalsoactedasaneditoroftheGerman translationof“our”bookin2011.Thus,donotbesurprisedtofindathirdsignature belowthispreface. WearegratefultoChristianSeipl,whospenthoursoverhoursofhissparetimein typesettinganddebuggingthisfifthedition.Also,weareindebtedtotheauthorsof thisbook,whocontributedtheirwrittenknowledgeandalsotoallunnamedadvisers, v vi Preface who contributed their unwritten knowledge. Last but not least, we would like to thank the readers—the familiar ones, who are faithful since the first edition, but also all new ones, who are warmly welcomedto dive into the world of Advanced Planning. Hamburg,Germany HartmutStadtler Saarbrücken,Germany ChristophKilger Hohenheim,Germany HerbertMeyr February2014 PrefacetotheFourthEdition Thehypeisover—andthisisfine! AdvancedPlanningSystems(APS)havebecomeamaturetechnologyinthepast years. Investmentsin APS have to undergothe same standardsoftware evaluation andfinancialappraisalprocessasanyotherinvestment.Itnolongersufficestoargue that“wehavetobeatthefrontedgeoftechnology”. And still there is a large number of rewarding applications for APS. Three of these have becomenew case studies in this fourthedition. Unfortunately,a fourth casestudyhasbeenwithdrawninthelastminutebecausetheclientcompanyregards itsAPSsolutionakeyelementofbecomingtheleaderinitssector—expertisewhich theydonotwanttosharewiththeircompetitors. A second developmentto mention is the tendency to avoid the term “System” inAP“S”. Insteadsome preferthetermAdvancedPlanningModuleswhichbetter reflects the capability to combine some of its modules with other software com- ponents(e.g. for Supply Chain Event Management)to form an individualSupply Chain (SC) solution. However, the information flows among modules described in this book now even become more important for the quality of the SC solution generated.Hence,thereisnoreasonforustorefrainfromthetermAPSortochange theconceptofourbook. Readers familiar with the third edition will realize that not only chapters have beenreorganizedandupdatedtothestateoftheartbutalsothattherehasbeenmuch fine-tuningoftechnicalissues like for the indexand thereferences.Thisis dueto Christian Seipl who took over the “burden” of administering the chapters. Many thankstohim!Wearealsoindebtedtoanumberofconsultantsandpractitionersfor providingadviceandproofreadingpartsofthebook,especiallywithrespecttothe descriptionofselectedAPS. Nowitisuptoyou,dearreader,tomakethebestuseofthisfourthedition! Hamburg,Germany HartmutStadtler Mannheim,Germany ChristophKilger June2007 Preface vii PrefacetotheThirdEdition Fouryearshavepassedsincethefirsteditionofourbook—andstillitsreadershipis growingrapidly:YoumayevenbeabletobuyaChinesetranslationsoon! The field of Supply Chain Management (SCM) and Advanced Planning has evolvedtremendouslysincethefirsteditionwaspublishedin2000.SCMconcepts have conquered industry—most industry firms appointed supply chain managers and are “managing their supply chain”. Impressive improvements have resulted from the application of SCM concepts and the implementation of Advanced PlanningSystems(APS).However,in thelastyearsmanySCM projectsandAPS implementationsfailed or atleast did notfullymeet expectations.Many firmsare just“floatingwiththecurrent”andareapplyingSCMconceptswithoutconsidering allaspectsandfullyunderstandingthepreconditionsandconsequences.Thisbook provides comprehensive insights into the fundamentals of SCM and APS and practicalguidancefortheirapplication. What makes this book different from others in the field? First, the material presentedis based on ourexperiencesgained by actually using and implementing APS.Furthermore,wehavetriedtoextracttheessencefromthreeleadingAPSand to generalize the results—instead of merely reporting what is possible in a single APS. Second, this book is not just a collection of papers from researchers who have come together at a single conference and published the resultant conference proceedings.Insteadwe have structuredthe area of SCM and AdvancedPlanning intothosetopicsrelevantforturningAPSsuccessfullyintopractice.Thenwehave asked prominentresearchers,experiencedconsultantsandpractitionersfromlarge industry firms involved in SCM to join our group of authors. As a result, this edition(product)shouldbethemostvaluablesourceofknowledgeforourreaders (customers). Youmayhaveobservedthatcreatingourteamofauthorshasmuchincommon with forming a supply chain in industrial practice. This story can be expanded evenfurther:Severalauthorsarealsopartners(contributors)inothersupplychains (authorgroups).Itisthetaskofthesteeringcommittee(editors)tomakeoursupply chainworkandmakeitprofitableforeverypartner.Thismodelnotonlyworkedfor the lifetime of a product’slife cycle but also twice for its relaunch. We hope that oursupplychainwillstick togetherforsometimein thefutureforthebestofour customers—YOU! Whatisnewinthisthirdedition,apartfromtheusualupdateofchapters? (cid:129) AsectiononstrategicissuesinSCMhasbeenaddedasasubsectionofChap.1. (cid:129) ThecontentsofChaps.2and3arerestructuredwithagreateremphasisonSupply ChainAnalysis. (cid:129) LatestissuesandrecommendationsinStrategicNetworkPlanningnowhavebeen preparedbytwoauthors(Chap.6). (cid:129) A new chapter has been added showing how to generate production and purchasing orders for uncritical items by utilizing the well-known MRP logic (Chap.11). viii Preface (cid:129) The chapters on the Definition of a Supply Chain Project (Chap.15) and the Selection Process of an APS (Chap.16) have been rewritten in light of new experiencesandresearchresults. (cid:129) Demand Fulfilment and ATP (Chap.9) now is based on several APS and thus presentsourfindingsinamoregeneralizedform. (cid:129) Therearetwonewcasestudies,onefromthepharmaceuticalindustry(Chap.25) andonefromthechemicalindustry(Chap.20).Also,allcasestudiesnowfollow acommonstructure. This edition would not have been possible without the advice from industry partnersandsoftware vendors.Manythanksto allofthemfortheir mostvaluable help.Thisisalsothelastedition,whereJensRohdehasadministeredallthepapers and preparedthe files to be sent to the publisher. Thankyou very much, Jens, for thisgreatandperfectserviceandallthebestforthefuture! Darmstadt,Germany HartmutStadtler Mannheim,Germany ChristophKilger April2004 PrefacetotheSecondEdition SuccessStimulates! Thisalsoholdstruewhenthefirsteditionofabookissoldoutquickly.So,wehave createdthissecondeditionofourbookwithgreatenthusiasm. Attentive readersof the firsteditionwill have realizedan obviousgapbetween the scope of Supply Chain Management (SCM), namely integrating legally sep- arated companies along the supply chain and the focus of Advanced Planning Systems(APS)which,duetotheprinciplesofhierarchicalplanning,arebestsuited for coordinating intra-organizationalflows. Now, collaborative planning is a new featureofAPSwhichaimsatbridgingthisgap.Consequently,thisnewtopicisthe mostapparentadditiontothesecondedition(Chap.14). Buttherearealsomanyotheradditionswhicharetheresultofgreaterexperience of the authors—both in industrial practice and research—as well as latest APS softwaredevelopments.Examplesofnewmaterialsincludedare: (cid:129) ThedifferenttypesofinventoriesanditsanalysisarepresentedinChap.2. (cid:129) The description of the SCOR-model and the supply chain typology have been enlargedandnowformaseparatechapter(Chap.3). (cid:129) There is now a comparison of planning tasks and planning concepts for the consumergoodsandcomputerassemblyindustry(Chap.4). (cid:129) New developments in distribution and transport planning have been added (Chap.12). (cid:129) EnterpriseApplicationIntegrationisexplainedinChap.13. (cid:129) Chapter17nowpresentsimplementationissuesofAPSingreaterdetail. (cid:129) Somecasestudieshavebeenupdatedandextended(PartIV). Preface ix (cid:129) Rules of thumb have been introduced to allow users and consultants to better estimate and control computational times for solving their decision models (PartVI). Like in the first edition we have concentrated on the three most popular APS becausewe haverealized thatkeepingup-to-datewith its latest developmentsis a verytime-consumingandchallengingtask. SCM continues to be a top management theme, thus we expect our readers to profitfromthisupdateandwishthemgreatsuccesswhenimplementingtheirSCM solution. Manythankstoallwhocontributedtothefirstandsecondedition! Darmstadt,Germany HartmutStadtler Mannheim,Germany ChristophKilger January2002 PrefacetotheFirstEdition During the late 1980s and throughoutthe 1990s information technology changed modern manufacturing organizations dramatically. Enterprise Resource Planning (ERP) systems became the major backbone technology for nearly every type of transaction. Customer orders, purchase orders, receipts, invoices etc. are main- tained and processed by ERP systems provided by software vendors—like Baan, J.D.Edwards, Oracle, SAP AG and many more. ERP systems integrate many processes, even those that span multiple functional areas in an organization, and provideaconsistentdatabaseforcorporatewidedata.BythatERPsystemshelpto integrateinternalprocessesinanorganization. Mid of the 1990s it became apparent that focussing on the integration of internal processes alone does not lead to a drastic improvement of business performance.WhileERPsystemsaresupportingthestandardbusinessworkflows, thebiggestimpactonbusinessperformanceiscreatedbyexceptionsandvariability, e.g. customers order more than expected, suppliers deliver later than promised, productioncapacityisreducedbyanunforeseenbreakdownofequipment,etc.The correct reaction to exceptionslike these can save a lot of money and increase the service levelandwill help to improvesales andprofits. Furthermore,state-of-the- artplanningprocedures—forplanningsales,internaloperationsandsupplyfromthe vendorswell in advance—reducethe amountof exceptionalsituations, helping to keepbusinessinastandardmodeofoperationandturningouttobemoreprofitable thanconstantlydealingwithexceptionalsituations. Thisfunctionality—powerfulplanningproceduresandmethodologiesaswellas quick reactions to exceptions and variability—is provided by Advanced Planning Systems.AnAdvancedPlanningSystem(APS)exploitstheconsistentdatabaseand integratedstandardworkflowsprovidedbyERPsystemstoleveragehighvelocityin industry.Duetotheserecentdevelopments,softwarevendorsofAPSboostamajor
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