Integrating information, financial, and material flows in a chemical supply chain

Abstract

We address the flows involved in a real supply chain and discuss how they can be integrated for supply chain management. A scheduling model is proposed based on a State-Task Network representation to schedule order transactions and manufacturing operations in a make-to-order chemical plant. The proposed model is compared to scheduling models that focus on either the order transactions or the manufacturing operations. The advantage of the integrated approach is found in the accuracy of the solutions attained, whereas the siloed models produce suboptimal or infeasible solutions. Each model is compared in a stochastic discrete event simulation environment. An integrated scheduling model is also presented, which includes information, financial, and material flows along a three-echelon supply chain. This integrated model serves as a starting point for developing decision-support systems that take a more comprehensive view of the complex relationships amongst the different flows involved in real supply chains.