Supply chain design and operations

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Summary of Proposal for Public Release The nature of Supply Chains has undergone a major transformation in the recent past and the modelling advice needed from OR/IE must adapt to deal with the new issues that have arisen. A recent market survey by Deloitte Consulting concluded "No longer will companies compete against other companies, but total supply chains will compete against other supply chains" and that it is crucial to build efficient and effective supply chains; "develop a strategic plan for your supply chain that works in today's competitive environment" and "effectively establish close ties with suppliers, distributors, and retailers". This research will study long-term relationships in Supply Chains, in particular both supplier selection and supplier development. A long term relationship is likely to contrast with spot purchasing by involving joint investment in specific products and processes. This research will combine the three themes of multiple period contracting, competition and finally the 'power' structure that exists within most supply chains. My aim is to translate some of work typically developed for single period models with competition or multiple periods without competition, in order that we might study both, and the impact that both have on the form of contracts agreed to by the parties. The form of these relationships will in turn determine to a large extent the effectiveness and efficiency of the many operational decisions made within the supply chain partnership.