Material Flow in Electronic Product Based Supply Chains

Abstract

A review of electronics product based supply chains is presented. This naturally leads to the development of a “reference framework” for electronic products supply chains. It is used as a foundation for the analysis of a typical supply chain for a personal computer. Attention is focused on the published dynamic behavior associated with the electronic components echelon. The shortage/surplus behavior characteristic of the echelon and exemplified by the “bookings‐to‐billings” ratio is explained using a causal loop model. A pragmatic approach to the reduction in on‐costs achieved by redesign is presented and illustrated by comparing the relative merits of a number of suggested improvement strategies. Many of the features highlighted are applicable to the majority of electronic product supply chains; particularly the prominent role of multinational companies and the global nature of material supply. The establishment of much improved buyer‐supplier relationships is seen as an essential component in achieving improved supply chain design and operations.