Design, Analysis and Optimization of Supply Chains

Chapter 3

The Dynamics of Multitier, Multichannel Supply Chains

Introduction

Manufacturing has changed. Companies that were once known as automakers or aircraft manufacturers are now more properly viewed as integrators or assemblers. Parts and major subassemblies are now outsourced and are planned to arrive at the assembly plant just in time for integration into cars, airplanes, and other major products. Consider, for example, the Boeing 787 Dreamliner. The wing comes from Japan; the movable trailing edge of the wing is produced in Australia; the fixed and movable leading edge of the wing is produced in Oklahoma; the wing tips are produced in Korea; the center fuselage is made in Italy; the landing gear is made in the UK; and the landing gear ...