Over the past years, supply chain and social network analysis have been handled as two independent fields within different organizations. Supply chain refers to the collaborated decision making among vertical and horizontal stakeholders in subsequent value addition of products. Study on supply and value chains proposes the need for efficient information exchange and resource allocation among different tiers of the network.
On the other hand, social network analysis gives the feasible connections, physical as well as virtual, between various organizations involved in the chain. It is based on identification of network structure constraints pertaining to the firms of a specific industry. Network analysis in supply chain focuses on the need for various levels of social relationship among suppliers, manufacturers, warehouses, distributors and retail outlets. Croom et al., 2000, highlights the importance of relationships in a supply chain network to achieve efficient flow of information and resources.
A supply chain lacks coordination if each stage optimizes only its local objective, without considering the impact on the complete chain. Total supply chain profits in uncoordinated chain are thus less than what could be achieved through coordination. Development of strong social connectivity and trust among the members benefits the supply chain in terms of reduced uncertainty (Baker and Faulkner, 2004).
Social networking helps in coordination of various tiers in supply chain and sharing of resources. This leads to reduction in inventory cost, manufacturing cost, number of back orders, lead time, labor cost for shipping and receiving and increases level of product availability. Dyer, 2000 demonstrated that higher level of social...
... middle of paper ...
...with experimentation of results and sensitivity analysis on the total cost function. We conclude the paper with section 6 where we summarize our results and suggest future scope of research in this area.
2) MODELLING OF MULTI PERIOD SUPPLY CHAIN NETWORK
In this section we develop a multiperiod N-tiered well connected supply chain network. we consider a planning horizon of T periods (1,….t,….T).The model consists of number of retailers ,... … ,n(N-1) suppliers of retailers , n(N-2) suppliers of suppliers and so on till n1 number of primary suppliers (first tier suppliers) .A typical primary supplier is denoted by i, a typical second tier supplier is denoted by j and so on till a typical Nth tier retailer is denoted by l. The arrows represent the flow of materials from one tier to another. The link from one time period to another represents the level of social