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Beamon's Model

The document describes Beamon's three dimensional model for measuring supply chain flexibility. The model includes measures for: 1) Resources (R) such as costs, return on investment, inventory levels. 2) Outputs (O) like revenue, profits, fill rates, delivery performance. 3) Flexibilities (F), including volume flexibility (Fv) measured as the demand range met profitably, delivery flexibility (FD) as slack time in delivery dates, mix flexibility (Fm) as number of product mixes or changeover times, and new product flexibility (Fn) as the time or cost to add new products.

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Anupam_Jaiswal_4750
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39 views

Beamon's Model

The document describes Beamon's three dimensional model for measuring supply chain flexibility. The model includes measures for: 1) Resources (R) such as costs, return on investment, inventory levels. 2) Outputs (O) like revenue, profits, fill rates, delivery performance. 3) Flexibilities (F), including volume flexibility (Fv) measured as the demand range met profitably, delivery flexibility (FD) as slack time in delivery dates, mix flexibility (Fm) as number of product mixes or changeover times, and new product flexibility (Fn) as the time or cost to add new products.

Uploaded by

Anupam_Jaiswal_4750
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Beamon’s three dimensional model

• Resource measures (R), Output measures (O), Flexibility


measures (F)
• Range and response flexibility
Resource Measures
• Total Cost
• Distribution Cost
• Manufacturing Cost
• Inventory Costs – input material inventory, work-in-
process inventory, finished goods inventory, inventory
turnover
• Return on Investment
Beamon’s three dimensional model
Output measures
• Sales revenue
• Profit
• Fill rate – proportion of orders filled immediately
• On-time Deliveries – average lateness, percent on-time
deliveries etc.
• Backorder / stockout – stockout probability, number of
stockouts/backorders annually etc.
• Customer response time – amount of time between an order
and its corresponding delivery.
• Manufacturing lead time – time required to produce a
particular item or batch.
• Shipping errors
• Customer Complaints
Volume Flexibility (Fv)
 Measured as proportion of the demand, which can be met maintaining
profitability.
0  F v 1
Let Omin and Omax be the minimum and maximum production as
per the manufacturing process. Demand (D) is a random
variable approximately following normal distribution.
 _ _

 Omin  D Omax  D 
Fv  P D 
 SD SD 
 
 _
  _

 Omax  D   Omin  D 
Fv       
 S D   SD 
   

The larger the gap between Omax and Omin,


the more flexible is the manufacturing
system with reference to the volume of
production.
Delivery Flexibility (FD)
 Capability of moving planned date forward.
 Delivery Flexibility may be measured as the percentage of slack time by
which the delivery time can be reduced.
Let, job j affects or contributes to the delivery process or system,
j = 1,2,…,J.
Lj : Due date period or latest date for job j ;

t* : Current time period;


Ej : Earliest possible time period for completion of job j ;
Then,

L   E 
J J

j t *
j  t*
j 1 j 1
FD 
L 
J

j  t*
j 1

L 
J

j  Ej
j 1
FD 
L 
J

j  t*
j 1
Mix Flexibility (Fm)
There are two possible ways of measurement:
• Number of different products that can be produced within
a given time period, Fm = N(t).
• Time required to produce a new product mix, Fm = Tij ,
where Tij is the changeover time required from product
mix i to product mix j .

New Product Flexibility (Fn)

• Fn = T or C ; where, T and C are the time and cost


required to add new product

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