The role of ERP tools in supply chain information sharing,cooperation, and cost optimization |
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| Institution: | 1. ISDS Department, Louisiana State University, Baton Rouge, LA 70803, USA;2. Management Department, Grand Valley State University, Grand Rapids, MI 49504, USA;1. Department of Supply Chain and Information Systems, University of Grenoble Alpes, CNRS, CERAG, 38040, Grenoble, France;2. Department of Decision and Information Sciences, University of Massachusetts, Dartmouth, 285 Old Westport Road, North Dartmouth, MA 02748-1778, USA;1. Discipline of Business Analytics, The University of Sydney, Room 490, Merewether Building (H04), Sydney, NSW 2006, Australia;2. Department of Industrial & Systems Engineering, Rensselaer Polytechnic Institute, ISE, RPI, 110 8th St., CII, Suite 5015, Troy, NY 12180, United States;3. Department of Management, University of Notre Dame, Room 359, Mendoza CoB, Notre Dame, IN 46556, United States;1. Faculty of Information Technology, Monash University, Clayton, VIC 3800, Australia;2. Dept. of Computer Engineering of the Technological Education Institute (TEI) of Central Greece, Lamia, Greece, 3rd Km Old National Road Lamia-Athens, Lamia 35100, Greece;1. Data and Software Sciences, Idaho National Laboratory, ID, USA;2. Bioenergy Technologies Department, Idaho National Laboratory, ID, USA;1. Department of Mechanics, Mathematics, and Management, Polytechnic University of Bari, viale Japigia, 182, Bari 70126, Italy;2. S.E.GEST.A. Department of Management, Catholic University of the Sacred Heart, Milan and Rome, Largo Francesco Vito, 1, Rome 00168, Italy |
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| Abstract: | The transaction based integrated Enterprise Resource Planning (ERP) software provides different tools that can support supply chain integration but at the same time it has several features that obstructs the integration with business partners. We concentrate on the inventory management aspects of supply chain coordination reviewing the recent quantitative modeling and organizational results available in literature. We summarize the results of a detailed numerical and sensitivity analysis based on our previously published models for supply chain cooperation and joint optimal ordering and shipment policies for the buyer and supplier. These results can be used in enterprise software to measure the potential monetary value of policy coordination, to promote cooperation, and minimize the total supply chain system cost. Our further goal is to combine quantitative tools with organizational and management factors, and to integrate them in a multi-level framework of policy coordination. |
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