Adaptation of coordination mechanisms to network structures

Resumen

The coordination ef?ciency of Supply Chain Management is determined by two opposite poles: bene?t from improved planning results and associated coordination cost. The centralization grade, applied coordination mechanisms and IT support have in?uence on both categories. Therefore three reference types are developed and subsequently detailed in business process models for different network structures. In a simulation study the performance of these organization forms are compared in a process plant network. Coordination bene?t is observed if the planning mode is altered by means of a demand planning IT tool. Coordination cost is divided into structural and activitydependent cost. The activity level rises when reactive planning iterations become necessary as a consequence of inconsistencies among planning levels. Some characteristic in?uence factors are considered to be a reason for unfeasible planning. In this study the effect of capacity availability and stochastic machine downtimes is investigated in an uncertain demand situation. Results that if the network runs with high overcapacity, central planning is less likely to increase bene?t enough to outweigh associated cost. Otherwise, if capacity constraints are crucial, a central planning mode is recommendable. When also unforeseen machine downtimes are low, the use of sophisticated IT tools is most pro?table. Keywords: Coordination mechanisms, distributed decision making, network con?guration