Application of Specific Theory of Constraints Technique for the Identification of Main Causes of Negative Consequences within Procurement Logistics

Open access

Abstract

The paper presents a concrete example of the selected Theory of Constraints (TOC) technique implementation in order to identify the main causes of undesirable consequences in the context of supply logistics issues. Determining the undesirable consequences of supply logistics is primarily related to the adverse impact on costs, profitability and quality of outsourcing enterprise which provide services in supply chain field. Particularly, this implementation includes individual steps of the process related to the creation of the specific TOC technique. The outcome is to identify the main causes which have the most significant impact on the negative consequences.

[1] Chaudhari, C.V. & Mukhopadhyay, S.K. (2003). Application of theory of constraints in an integrated poultry industry. International Journal of Production Research, 41 (4), 799-817. DOI: 10.1080/0020754031000065548.

[2] Wee, H.M., Budiman, S.D., Su, L.C., Chang, M. & Chen, R. (2016). Responsible supply chain management - an analysis of Taiwanese gutter oil scandal using the theory of constraint. International journal of logistics-research and applications, 19 (5), 380-394. DOI: 10.1080/13675567.2015.1090964.

[3] Simatupang, T.M., Wright, A.C. & Sridharan, R. (2004). Applying the theory of constraints to supply chain collaboration. Supply chain management-an international journal, 9 (1), 57-70. DOI: 10.1108/13598540410517584.

[4] Puche, J., Ponte, B., Costas, J., Pino, R. & de la Fuente, D. (2016). Systemic approach to supply chain management through the viable system model and the theory of constraints. Production planning & control, 27 (5), 421-430 DOI: 10.1080/09537287.2015.1132349.

[5] Simatupang, TM., Wright, AC. & Sridharan, R. (2004). Applying the theory of constraints to supply chain collaboration. Supply Chain Management: An International Journal, 9 (1), 57-70. DOI: 10.1108/13598540410517584.

[6] Chen, L. Yucel, S. & Zhu, K.J. (2017). Inventory management in a closed-loop supply chain with advance demand information. Operations research letters, 45 (2), 175-180. DOI: 10.1016/j.orl.2017.02.002.

[7] Bertazzi, L., Bosco, A. & Lagana, D. (2016). Min-Max exact and heuristic policies for a two-echelon supply chain with inventory and transportation procurement decisions. Transportation research part e-logistics and transportation review, 93, 57-70. DOI: 10.1016/j.tre.2016.05.008.

[8] Li, J.C., Zhou, Y.W. & Huang, W.Y. (2017). Production and procurement strategies for seasonal product supply chain under yield uncertainty with commitment-option contracts. International journal of production economics, 183, 208-222. Part: A. DOI: 10.1016/j.ijpe.2016.10.019

[9] Sarkar, S. & Kumar, S. (2015). A behavioral experiment on inventory management with supply chain disruption. International journal of production economics, 169, 169-178. DOI: 10.1016/j.ijpe.2015.07.032.

[10] Chen, K.B., Shen, J.L. & Feng, M.L. (2014). Disruptions management of a supply chain under strategic subsidy policy for the demand-stimulating inventory. Computers & industrial engineering, 76, 169-182. DOI: 10.1016/j.cie.2014.07.030

[11] Selviaridis, K. (2014). Building Lean Supply Chains with the Theory of Constraints. Journal of purchasing and supply management, 20 (4), 286-287. DOI: 10.1016/j.pursup.2014.09.001.

[12] Tsou, C.M. (2013). On the strategy of supply chain collaboration based on dynamic inventory target level management: A theory of constraint perspective. Applied mathematical modeling, 37 (7), 5204-5214. DOI: 10.1016/j.apm.2012.10.031.

[13] Kirche, E.T., Kadipasaoglu, S.N. & Khumawala, B.M. (2005). Maximizing supply chain profits with effective order management: integration of Activity-Based Costing and Theory of Constraints with mixed-integer modeling. International journal of production research, 43 (7), 1297-1311. DOI: 10.1080/00207540412331299648.

[14] Oglethorpe, D. & Heron, G. (2013). Testing the theory of constraints in UK local food supply chains. International journal of operations & production management, 33 (10), 1346-1367. DOI: 10.1108/IJOPM-05-2011-0192.

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 161 161 15
PDF Downloads 58 58 14