Impact of lead time variability in supply chain risk management

In this article, we study the impact of lead time variability on the performance of supply chain risk management in the beer industry. The stakeholders considered are the empty aluminum can supplier, the brewery and the distributor. The stochastic lead time model developed is an extension of the pre...

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Main Author: Bandaly, Dia (author)
Other Authors: Satir, Ahmet (author), Shanker, Latha (author)
Format: article
Published: 2016
Online Access:http://hdl.handle.net/10725/6466
https://doi.org/10.1016/j.ijpe.2016.07.014
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.sciencedirect.com/science/article/pii/S0925527316301608
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author Bandaly, Dia
author2 Satir, Ahmet
Shanker, Latha
author2_role author
author
author_facet Bandaly, Dia
Satir, Ahmet
Shanker, Latha
author_role author
dc.creator.none.fl_str_mv Bandaly, Dia
Satir, Ahmet
Shanker, Latha
dc.date.none.fl_str_mv 2016
2017-11-01T12:10:16Z
2017-11-01T12:10:16Z
2017-11-01
dc.identifier.none.fl_str_mv 0925-5273
http://hdl.handle.net/10725/6466
https://doi.org/10.1016/j.ijpe.2016.07.014
Bandaly, D., Satir, A., & Shanker, L. (2016). Impact of lead time variability in supply chain risk management. International Journal of Production Economics, 180, 88-100.
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.sciencedirect.com/science/article/pii/S0925527316301608
dc.language.none.fl_str_mv en
dc.relation.none.fl_str_mv International Journal of Production Economics
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.title.none.fl_str_mv Impact of lead time variability in supply chain risk management
dc.type.none.fl_str_mv Article
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description In this article, we study the impact of lead time variability on the performance of supply chain risk management in the beer industry. The stakeholders considered are the empty aluminum can supplier, the brewery and the distributor. The stochastic lead time model developed is an extension of the previously developed base model (with deterministic lead time) under which commodity price risk and demand uncertainty are managed via an integrated risk management approach using operational methods and financial derivatives. Simulation-based optimization is used to model and analyze such a complex system. We find that lead time variability does not always deteriorate the supply chain performance. Only high levels of lead time variability are found to justify more the need for a coordinated supply chain. The findings also reveal the need for using different hedging strategies to manage products flows across the supply chain under stochastic lead time versus the deterministic case. Managerial insights for the supply chain studied are argued based on experimental design findings.
eu_rights_str_mv openAccess
format article
id LAURepo_9f934be38812428577faad577d5016ff
identifier_str_mv 0925-5273
Bandaly, D., Satir, A., & Shanker, L. (2016). Impact of lead time variability in supply chain risk management. International Journal of Production Economics, 180, 88-100.
language_invalid_str_mv en
network_acronym_str LAURepo
network_name_str Lebanese American University repository
oai_identifier_str oai:laur.lau.edu.lb:10725/6466
publishDate 2016
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spelling Impact of lead time variability in supply chain risk managementBandaly, DiaSatir, AhmetShanker, LathaIn this article, we study the impact of lead time variability on the performance of supply chain risk management in the beer industry. The stakeholders considered are the empty aluminum can supplier, the brewery and the distributor. The stochastic lead time model developed is an extension of the previously developed base model (with deterministic lead time) under which commodity price risk and demand uncertainty are managed via an integrated risk management approach using operational methods and financial derivatives. Simulation-based optimization is used to model and analyze such a complex system. We find that lead time variability does not always deteriorate the supply chain performance. Only high levels of lead time variability are found to justify more the need for a coordinated supply chain. The findings also reveal the need for using different hedging strategies to manage products flows across the supply chain under stochastic lead time versus the deterministic case. Managerial insights for the supply chain studied are argued based on experimental design findings.PublishedN/A2017-11-01T12:10:16Z2017-11-01T12:10:16Z20162017-11-01Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article0925-5273http://hdl.handle.net/10725/6466https://doi.org/10.1016/j.ijpe.2016.07.014Bandaly, D., Satir, A., & Shanker, L. (2016). Impact of lead time variability in supply chain risk management. International Journal of Production Economics, 180, 88-100.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttp://www.sciencedirect.com/science/article/pii/S0925527316301608enInternational Journal of Production Economicsinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/64662021-03-19T09:10:12Z
spellingShingle Impact of lead time variability in supply chain risk management
Bandaly, Dia
status_str publishedVersion
title Impact of lead time variability in supply chain risk management
title_full Impact of lead time variability in supply chain risk management
title_fullStr Impact of lead time variability in supply chain risk management
title_full_unstemmed Impact of lead time variability in supply chain risk management
title_short Impact of lead time variability in supply chain risk management
title_sort Impact of lead time variability in supply chain risk management
url http://hdl.handle.net/10725/6466
https://doi.org/10.1016/j.ijpe.2016.07.014
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.sciencedirect.com/science/article/pii/S0925527316301608