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Quantifying Supply Chain Trade-Offs Using Six Sigma, Simulation, and Designed Experiments to Develop a Flexible Distribution Network

Summary: [This abstract is based on the authors' abstract.] This article presents a case study identifying the numerical tradeoff between customer service and inventory in a multinode supply chain and assessing system performance at a large multinational corporation. Designed experiments and define, measure, analyze, improve, control (DMAIC) methodology are used. Rather than normalizing supply and demand, this study uses discrete-event simulation to understand real-world supply-demand variation. The study uses a three-stage analysis that highlights process variability using DMAIC, develops a validated model through discrete-event simulation, and quantifies the performance of two drivers of supply chain performance: inventory levels and fill rates.

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  • Topics: Six Sigma, Customer Satisfaction and Value
  • Keywords: Design of experiments (DOE), Distributions, DMAIC, Six Sigma, Supply chain
  • Author: Kumar, Sameer; McCreary, Marietsa L.; Nottestad, Daniel A.
  • Journal: Quality Engineering