Study On The Coordinative Operation Cost Of The Supply Logistics Based On Supply-Hub

Nowadays coordinative operation of supply chain is increasingly accepted andadopted in the business field. Currently, most attention has been paid to thedownstream chain based on the demand-driven angle rather than the upstream partsbased on the supply-driven aspect either in academic research or in real operation.Demand-driven and supply-driven, treated as two opposite poles, are considerablyconsistent in terms of their goal and primary driving force according to the analysis ofcomparison in this thesis, furthermore, both of which should and could beassociatively applied to strengthen the systematic flexibility and competitive edge insupply chain practice in order to win the advantages based on time while confrontedwith the complex and competitive environment. Obviously, this is also the startingpoint of my thesis.Based on the supply chain and logistics theory, this thesis focused on the study ofefficiency and cost in supply-hub operation considered as the typical operating modeof supply-driven philosophy. Firstly, it probed the architecture of the supply logisticsbased on supply-hub, and analyzed the issue of hub operator positioning. Secondly, itproved via mathematical model that supply-hub could be used to run the supply chainmore efficiently with quicker responsiveness and lower cost compared to theindependent VMI (Vendor-managed Inventory mode) which has also been one type ofsupply-driven and become popular recently. Besides, further proof on the conclusionwas supported by MATLAB7.0. However, in real supply-hub operations off-the-linesettlement is widely used, which goes with some deficiencies and can be harmful tothe advantages of efficiency and cost. Therefore, a new settlement method wasoffered in this thesis, that is, hub operator pays the purchase order for themanufacturer ahead. Unfortunately, the supply chain system was still not optimumwhile the new settlement method needed to be modified. Finally, a punishmentparameter for suppliers was introduced and added into the cost model to guide allsuppliers’ delivery time to make sure they were more foreseeable and flexible, so asto reach the optimum.According to the domestic developing circumstance in logistics industry and theshortly-launched promoting plan for logistics industry, I believe this thesis could givesome meaningful reference in the real supply-hub operations.