Quantifying supply chain trade-offs using Six Sigma, simulation, and designed experiments to develop a flexible distribution network

摘要

Purpose: 0 present a case study that quantifies the trade-off between customer service and inventory in a multinode supply chain while assessing system performance using an integrated and generalized modeling framework. Summary: Though Six Sigma is much acclaimed as a tool for improvement in the operation of manufacturing and service sectors not much evidence is re[ported of its successful implementation in the supply chain sector. Knowles et al. (Ref. 1) proposed a two-stage supply chain Six Sigma model for improved supply chain operations. First is the strategic stage of developing aimed at projects to generate better performance. Second is the operational stage, applying Six Sigma and lean tools in define, measure, analyze, improve, control (DMAIC) cycle for supply chain improvements. This study presents the implementation of the above supply chain Six Sigma model to optimize finished goods inventory in the multiple nodes of the distribution network. Applying DMAIC methodologies and using simulation along with designed experiments this study provides decision support to a supply chain improvement team. (28 refs.)