Decentralized Supply Chain Planning Coordination Mechanism

Coordination and optimization of supply chain planning among multiple companies have widely been received much attention from viewpoints of global supply chain management. Growing competitive pressures, and market globalization together with an increased focus on their core competence has led companies to develop supply chains that can quickly response to the more multivariable and mutable customer needs. Supply chain is an enterprise network which is made of many independently economic entities. It is the core of supply chain management to coordinate the material flow, information flow, and financial flow between enterprises for improving the competitive power of whole supply chain. Accordingly, the planning and coordinating mechanism and its relative strategies play a critical role in the management practices. Developing the favorable planning &coordination mechanisms within the SC will improve the overall performance of the supply chain.On the basis of the above backgrounds, this paper presents a theoretical framework and its strategies for the planning &coordination within the supply chain .Specifically, it unfolds as follows: The chapter one is relative literature review. Firstly this research's theoretical and practical implications are introduced in this part. The chapter two focuses on the conceptual framework and modeling. After a brief description of the supply chain concept and operations , the conceptual frameworks of supply chain planning and supply chain coordination are discussed as well as in part. The three general strategies of supply chain planning &coordination mechanism are specifically discussed in chapter three. In chapter four, In view of the current centralized planning problems, propose a decentralized supply chain project coordination mechanisms, from the vertical and horizontal aspects to achieve supply chain planning coordination, Further more, clarify how to integrate VMI, JMI, CPFR concept into supply chain planning system to achieve supply chain information sharing and reduce supply chain complexity.