Several studies have reported that capacitated supply chains may benefit from an improved dynamic performance as compared to unconstrained ones. This occurs as a consequence of the capacity limit acting as a production smoothing filter. In this research, the relationship between capacity restrictions and the operational performance of supply chains is investigated from a novel perspective, i.e. we assume that the influence of capacity constraints on lead times depends on the supply chain's responsiveness. Under these circumstances, the experiments show that there is a negative effect of capacity constraints on supply chain performance, both in terms of process efficiency (internal) and customer satisfaction (external). Nonetheless, the magnitude of this impact greatly depends on the responsiveness of the firm, market conditions and adopted policies for inventory management. More specifically, the combination of tight capacity restrictions and low responsiveness significantly contributes to decrease supply chain performance, which may be very damaging for the dynamic behavior of the system. In this sense, efficient capacity planning proves to be essential to prevent the supply chain from entering into a vicious circle.

Capacity restrictions and supply chain performance: Modelling and analysing load-dependent lead times

Cannella, Salvatore;
2018-01-01

Abstract

Several studies have reported that capacitated supply chains may benefit from an improved dynamic performance as compared to unconstrained ones. This occurs as a consequence of the capacity limit acting as a production smoothing filter. In this research, the relationship between capacity restrictions and the operational performance of supply chains is investigated from a novel perspective, i.e. we assume that the influence of capacity constraints on lead times depends on the supply chain's responsiveness. Under these circumstances, the experiments show that there is a negative effect of capacity constraints on supply chain performance, both in terms of process efficiency (internal) and customer satisfaction (external). Nonetheless, the magnitude of this impact greatly depends on the responsiveness of the firm, market conditions and adopted policies for inventory management. More specifically, the combination of tight capacity restrictions and low responsiveness significantly contributes to decrease supply chain performance, which may be very damaging for the dynamic behavior of the system. In this sense, efficient capacity planning proves to be essential to prevent the supply chain from entering into a vicious circle.
2018
Bullwhip effect; Capacity constraints; CT-TP curve; Lead time; Responsiveness; Supply chain dynamics; Business, Management and Accounting (all); Economics and Econometrics; Management Science and Operations Research; Industrial and Manufacturing Engineering
File in questo prodotto:
File Dimensione Formato  
Cannella Capacity restrictions....pdf

accesso aperto

Tipologia: Versione Editoriale (PDF)
Licenza: Creative commons
Dimensione 1.09 MB
Formato Adobe PDF
1.09 MB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11769/336777
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 38
  • ???jsp.display-item.citation.isi??? 31
social impact