Development of a Rapid-Response Supply Chain at Caterpillar
- 1 April 2000
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Operations Research
- Vol. 48 (2), 189-204
- https://doi.org/10.1287/opre.48.2.189.12380
Abstract
As part of its growth strategy, Caterpillar Inc. is launching a new P2000 product line of “compact” construction equipment and worktools. In anticipation of this, they asked the authors to construct and analyze potential P2000 supply chain configurations. Using decomposition and results from network flow theory, inventory theory, and simulation theory, we were able to provide solutions to this problem for different supply chain scenarios provided by Caterpillar. Novel features of our model include expedited deliveries, partial backlogging of orders, and realized sales that are responsive to service. Caterpillar made their decision regarding the P2000 supply chain based on our recommendations.Keywords
This publication has 8 references indexed in Scilit:
- A Capacitated Production-Inventory Model with Periodic DemandOperations Research, 1998
- Bounds and Asymptotics for Planning Critical Safety StocksOperations Research, 1997
- Air Network Design for Express Shipment ServiceOperations Research, 1996
- Sensitivity Analysis for Base-Stock Levels in Multiechelon Production-Inventory SystemsManagement Science, 1995
- Material Management in Decentralized Supply ChainsOperations Research, 1993
- Computing the optimal policy for capacitated inventory modelsCommunications in Statistics. Stochastic Models, 1993
- Global OptimizationPublished by Springer Science and Business Media LLC ,1993
- Optimal Policies for the Inventory Problem with Negotiable LeadtimeManagement Science, 1964