E-Business in Supply Chain Management
Submitted by: Atif Rasheed
Instructor Name: Qazi subhan
Department of management Science
Title: E-Business in Supply Chain Management
Short Statement of Problem:
The web is having a significant impact on how firms interact with each other and their
customers. Past stumbling blocks for supply chain integration such as high transaction
costs between partners, poor information availability, and the challenges of managing
complex interfaces between functional organizations are all dissolving on the web.
how the web is changing supply chain management
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the supply chains of information goods have seen the most change (for example, see
Dewan, Freimer, Seidmann (2000)). Manufacturers of physical products have also turned
to the Internet as a direct channel of distribution.
Pyke, Johnson, and Desmond (2001) describe the difficulties of effectively
executing e-fulfillment and develop a framework for evaluating the challenges of efulfillment
for any specific product.
Johnson and Meller (2002) develop
stochastic models of logistics systems used in e-fulfillment centers. They use their model
to show why some systems were effective in reducing costs while others failed.
The second question is addressed by Cattani and Souza (2002). They consider two types
(high vs. low priority) of customer demands arriving at Poisson rates. Demands are met
from a common inventory that the server replenishes at a finite speed but stops when the
inventory reaches a certain level.
Modern manufacturing requires flexibility due to stiff competition, fast changing
customer preferences, shortening product life cycle and product variety proliferation.
Along with dynamic capacity allocation, efficient material procurement forms a pillar to
support flexible manufacturing. The Internet again offers a natural platform to facilitate
efficient procurement as numerous buyers and sellers find each other and transact
according to some pre-specified protocols (governed by the marketplace or traders’
internal rules). While e-Procurement is the mirror image of e-Commerce,
Of course, many e-Procurement ideas such as dynamic markets and auction theory have
been long studied areas within economics (e.g. auctions, see Milgrom and Weber (1982)