Model‐supported supply chains for cost‐efficient intelligent enterprises

Abstract

PurposeThe twentieth century brought great competition and complexity to business life. Advanced technologies and new production techniques resulted in shortening product life cycles. Firms that wanted to survive began to implement different strategies directly focused on customer satisfaction. Supply chain management, as a management philosophy, highlighted a new area that has the potential to reduce cost further than production costs. This paper promotes the supply chains for cost‐efficient intelligent enterprises.Design/methodology/approachPromotes the use of supply chains by means of simulation and allocating the results to solver in Excel for decision modelling in order to integrate the supplier and manufacturer relationship for the cost‐efficient enterprise.FindingsFinds that a manufacturing firm really needs to develop effective co‐ordination within and beyond its boundaries in order to maximise the potential for converting competitive advantage into profitability. Good co‐ordination with the key suppliers especially will increase product availability.Originality/valueThe synchronisation of activities in supply will create value to both its members (supplier and manufacturer) and in addition it will create value to the end customer by satisfying delivery dates.