Applying hybrid system theory to supply chain design

no. 011-0268 Applying hybrid system theory to supply chain design Volker Stich, Jan Christoph Meyer Research Institute of Operations Management (FIR) at RWTH Aachen University FIR at RWTH Aachen University, Pontdriesch 14/16, D-52062 Aachen Email: [email protected]. Phone: +49 241 47705 427 POMS 20th Annual Conference Orlando, Florida U.S.A. May 1 to May 4, 2009 ABSTRACT Supply Chain Management delivers a considerable amount of ideas and methods to design the value stream. Each of these concepts may lead to significant cost reduction and higher service levels. But the same concept does not work for different customers and their diverse needs. Thus, a “one size fits it all” supply chain cannot lead to success. The key to overcome this obstacle is the hybrid supply chain. This paper outlines the application of hybrid system theory to supply chains. After a comprehensive overview of existing methods for the design of supply chains is given, a methodology for a customer-to-customer oriented supply chain design is presented. This approach adopts the hybrid system theory to supply chains which is in a nutshell that hybrid systems use the advantages of its subsystems to reach a superior result to one system alone. Concluding a case study illustrates the application of the methodology.Supply Chain Management delivers a considerable amount of ideas and methods to design the value stream. Each of these concepts may lead to significant cost reduction and higher service levels. But the same concept does not work for different customers and their diverse needs. Thus, a “one size fits it all” supply chain cannot lead to success. The key to overcome this obstacle is the hybrid supply chain. This paper outlines the application of hybrid system theory to supply chains. After a comprehensive overview of existing methods for the design of supply chains is given, a methodology for a customer-to-customer oriented supply chain design is presented. This approach adopts the hybrid system theory to supply chains which is in a nutshell that hybrid systems use the advantages of its subsystems to reach a superior result to one system alone. Concluding a case study illustrates the application of the methodology.