Defining the Internet-based supply chain system for mass customized markets

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Abstract

The infusion of information technology into business operations is drastically changing the way businesses operate. In addition, the universal availability of the Internet is accelerating mass customization of products—from PCs to automobiles. Managing supply chain relationships in this new environment, therefore, necessitates the adoption of a new production paradigm characterized by:

  • A centralized strategy but decentralized operation

  • A synchronized supply chain management system

  • A collaborative partnership among selected suppliers

  • A new interoperable, open information system infrastructure

  • A ‘broker’ and an intelligent, mobile, agent-based trading system.

This paper describes a software system that satisfies these properties and one that can support business operations of a massively customized production system and its supporting supply chain partners.

Section snippets

Background

Today's global businesses must be agile and responsive to be competitive. Additionally, the infusion of information technology (IT) into every aspect of operations is transforming business environments from a production-centric model to one that is information and customer centric (Arjmand & Roach, 1999). Although the Internet has strengthened business with its convenience and 24×7 global accessibility, it also has dramatically shifted the traditional business model to create a new, competitive

Synchronized supply chain management: a new paradigm

Traditional SCM policies are process-driven and have used production to forecast policy. By ‘process-driven’, it is meant that specific and defined business processes serve as the standard from which the execution of business activities must not deviate. It usually takes the form of ‘business rules’ and ‘automated workflow’ that execute mechanically as part of the defined process, not giving consideration to the unique circumstances inherent in each specific scenario. This policy cannot

The enabling technology

The phenomenal growth of the Internet in the 1990s and its wide acceptance by all businesses has created a technological base that can support the integration of computing resources at the business, manufacturing, and industrial levels. Java technology is taking full advantage of the Internet and is rapidly becoming the platform of choice for new initiatives. The promise of write once, run anywhere has taken Java software portability and interoperability to another level. We believe the

Conclusions

This paper presented a technology-based SCM system that utilizes Internet, object-oriented, Java, and mobile intelligent technologies. The system uses e-commerce technologies such as e-marketplaces, brokers, and online auctioning for advanced production planning to support synchronized supply chain systems.

This SCM system can support a mass customized business model and allows the manufacturer and its suppliers and subcontractors to quickly and efficiently produce and deliver products. This

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