Effect of Structural Coordination on Supply Chains Controlled by Manufacturing Planning and Control Systems

Abstract

At present, manufacturing planning and control systems (MPCSs) are indispensable elements in supply chain processes. However, only a few studies have addressed the interaction between planning and control information systems and supply chain process behavior in the operations management literature. This study aims to clarify the fundamental properties of supply chain structures, including information systems. The study analyzes the behavior of a discrete event model of a supply chain process controlled by MPCSs, and shows the necessity of holistic structural coordination. In other words, it is shown that introducing information systems for manufacturing planning and control without any coordination brings no benefit; instead, doing so creates confusion throughout the supply chain. An appropriate supply chain structure can reveal the potential of MPCSs.