Production Management and Supply Chain Integration

Abstract

Digitalization not only improves individual performance but also helps orchestrate supply chain partners to serve a bigger goal. To fully benefit from supply chain digitalization, a high level of integration across supply chain activities is required. This chapter introduces major interactions between production management decisions and the supply chain strategy, structure, and performance to explore supply chain integration (SCI). For this purpose, the design and development issues of production management are first investigated. On this basis, decisions with a strategic nature, including product design (what), material and technology selection (which), process design (how), and facility layout (where) optimization are analyzed. Next, the planning and control issues, including production scheduling (when), quality management, resource management and supervision (who), and planning for disruptions are explored, which have a rather tactical nature with short- to mid-range goals in response to the aggregate plan (why) of the supply chain. Every section is concluded by suggesting rooms for pursuing SCI.