In the context of globalization currently, companies realize the importance of communication through their supply chain. One way to do so is by becoming a part of an integrated business and logistic hub (IBLH) structure. This specific structure provides a centralized data system and centralized warehouse for a company and its suppliers. To sustain this structure, specific management methods must be applied. In order to evaluate the cost and benefits of entering an IBLH structure, this research paper develops a general cost model and a lead-time model for a two-tier supply chain. The models presented in this paper reveal the state of supply chain before implementation of the IBLH structure then after implementation of it. This structure is managed with postponement strategies. This work also introduces different types of procurement strategies to manage the IBLH structure. It is possible to see the adaptability of the general cost and lead-time models through the example of a company and one of its suppliers which choose to be part of an IBLH structure. Finally, this paper ends with suggestions for future works namely bullwhip effect reduction due to use of postponement strategy for instance.
In the context of globalization currently, companies realize the importance of communication through their supply chain. One way to do so is by becoming a part of an integrated business and logistic hub (IBLH) structure. This specific structure provides a centralized data system and centralized warehouse for a company and its suppliers. To sustain this structure, specific management methods must be applied. In order to evaluate the cost and benefits of entering an IBLH structure, this research paper develops a general cost model and a lead-time model for a two-tier supply chain. The models presented in this paper reveal the state of supply chain before implementation of the IBLH structure then after implementation of it. This structure is managed with postponement strategies. This work also introduces different types of procurement strategies to manage the IBLH structure. It is possible to see the adaptability of the general cost and lead-time models through the example of a company and one of its suppliers which choose to be part of an IBLH structure. Finally, this paper ends with suggestions for future works namely bullwhip effect reduction due to use of postponement strategy for instance.