A MRP SYSTEM FOR INTEGRATED SUPPLY CHAINS

CONFENIS 2012, Ghent, September 20th 2012

GOALS

• Implementation of supply chain synchronization strategies that abstract from enterprise boundaries• mitigate the bullwhip effect

• Support decentralized and volatile organizational/supply chain models• stable IT environment in dynamic supply chain• replace failing or delayed supply chain partners at runtime

• Shared data environment• Data reuse by all IS in the enterprise/supply chain

INFORMATION SYSTEM INTEGRATION

• Many IS were not built to exchange information with other IS

• Many IS have their own “ontology”

• Mapping issues between application ontologies

• Interface obsolescence: Termination business partnership

• Interface inadequacy: New business partner

REQUIREMENTS

• Single ontology (avoid mapping issues)

• Harmonized data model (shared data environment)• Support customer and supplier role of each supply chain partner• Support process and exchange data

• Data maintained by individual supply chain partners (decentralized)• Support an “outside” view on enterprise data

• IS does not rely on predefined process/supply chain schema (volatile organizational/supply chain model)

APPROACH

• REA Ontology (single ontology)• “Inside view” that covers

• customer an supplier perspective on “exchanges” and • processes.

• “Outside view” (ISO OeBTO standard)

• Reuse of data-model for product traceability (data reuse)• Does not require a predefined process/supply chain schema• Allows abstraction from enterprise boundaries

EVALUATION SCENARIO

EVALUATION

• Incorporation of lead times (∑event duration)• Incorporation of BOM and lot sizes (Q increment/decrement)• Incorporation of stock levels (QOH resource group) and forecasts• Order/forecast creates a wave of orders/forecasts throughout the

supply chain (see Bullwhip effect)• The wave of orders can be weakened/stopped by (sufficient)

stock levels or forecasts• Choice of “best” supplier among available suppliers (dynamic/

volatile supply chain)

DATA MODEL

CONCLUSION

• It is possible to build a shared data environment that

• integrates supply and demand information of several trading partners • “inside” and “outside” view on process/supply chain data (abstract

from enterprise boundaries)

• in a decentralized and• coordinated solely by messages between supply chain partners

• dynamic/volatile supply chain• choice of supplier can vary without human interaction

FUTURE WORK

• Implement visibility rules that protect an individual supply chain partner’s competitive advantage

• Add modules to obtain an ERP system (e.g. capacity planning, forecasting)

• Integrate MRP/ERP application with other REA-based applications (e.g. traceability, accounting) to build an enterprise/supply chain wide shared data environment

• Expand the capabilities of the enterprise/supply chain wide information system (e.g. workflow management in the supply chain)