Evaluating the SCM Performance of the Inbound Logistics Models for Auto Parts Procurement
To survive in automotive industry, it is important to produce and provide good quality cars to the customers, and also the company needs to maintain its production costs at the competitive levels by removing wastes in production process.Among many factors of wasteful cost, approximately 42% are accounted for by the logistics cost.For example, the obsolete inventories due to the facelift, the suppliers unplanned urgent deliveries, and inefficient delivery method such as individual transportation are the reasons behind the high logistics cost.In this regard, it is essential that the production must be supported by the efficient inbound logistics of the parts supply in the upstream of the production process.This study will explore the effectiveness of various logistics models for automotive parts procurement by applying simulation experiment.Four logistics models of parts supply were developed based on the past literature about the inbound logistics.The simulation experiment was designed based on the operational situations of a real life Korean auto manufacturing company in the USA.The results of the study show that the efficiency of the inbound logistics model differs substantially depending on the operational environments.Overall, the cross-docking model and the hybrid model of cross-docking and milk-run model were dominant in long distance situation.The direct transportation model and the milk-run model were dominant in short distance situation.As a conclusion, it is suggested that a manufacturing firm needs to select an inbound logistics model by considering its operational environment.
SCM Auto parts procurement Simulation SCM Performance
Seung-Chul Kim Jin-Young Kim Je-Man Boo Dae-Chul Kim
Operations and Service Management School of Business,Hanyang University,Korea Service Innovation Team Hyundai Glovis,Korea
国际会议
2013 International Conference on Business Analytics and Management Science (2013商务分析与管理科学国际会议)
北京
英文
153-165
2013-11-23（万方平台首次上网日期，不代表论文的发表时间）