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Explicit filters and supply chain design
Authors:D. R. Towill   M. R. Lambrecht   S. M. Disney  J. Dejonckheere  
Affiliation:a Logistics Systems Dynamics Group, Cardiff Business School, Cardiff University, Aberconway Building, Colum Drive, Cardiff, CF10 3EU, UK;b Department of Applied Economics, Katholieke Universiteit Leuven, Naamsestraat 69, Leuven B—3000, Belgium;c G.E. Power Controls Belgium, Nieuwevaart 51, Ghent 9000, Belgium
Abstract:Due to the complexity of present day supply chains it is important to select the simplest supply chain scheduling decision support system (DSS) which will determine and place orders satisfactorily. We propose to use a generic design framework, termed the explicit filter methodology, to achieve this objective. In doing so we compare the explicit filter approach to the implicit filter approach utilised in previous OR research the latter focusing on minimising a cost function. Although the eventual results may well be similar with both approaches it is much clearer to the designer, both why and how, an ordering system will reduce the Bullwhip effect via the explicit filter approach. The “explicit filter” approach produces a range of DSS designs corresponding to best practice. These may be “mixed and matched” to generate a number of competitive delivery pipelines to suit the specific business scenario.
Keywords:HMMS algorithm   Explicit filter   Implicit filter   DSS
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