Designing and Managing the Supply Chain

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill.

Type

Book

Intellectual base

Textbook

Year

2008

Link

https://www.mheducation.com/highered/product/Designing-and-Managing-the-Supply-Chain-Simchi-Levi.html

Cited from

economics_finance, systems_cybernetics

Cited by

2 citations across 2 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Correlated Capacity Demand
  • Under the independence-assumption sizing, a planner reasons by diversification: the sum of n independent demands has variance that grows like n while the mean grows like n, so the coefficient of variation shrinks like 1/√n, and the diversification-discounted peak the planner sizes for is far below the naive sum of individual peaks.

    This sourceDevelops risk pooling and the square-root law: the coefficient of variation of pooled independent demand falls like 1/√n, the variance-reduction-from-pooling that holds only under independence and yields little benefit when demands are positively correlated. (Resolves needs-source-832; supports the diversification-discount-under-independence result and its failure under correlation.)

• Risk Pooling
  • The vocabulary and reasoning of pooling help practitioners in one domain recognize solutions from another, a transferability Simchi-Levi, Kaminsky, and Simchi-Levi (2008) document across logistics, manufacturing, and service operations.

    This sourceStandard supply-chain text demonstrating risk-pooling concepts transfer across logistics, manufacturing, and service operations through inventory consolidation, capacity sharing, and demand aggregation.

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