The Impact of Information Technology on the Temporal Optimization of Supply Chain Performance

The objective of this paper is to suggest a systematic means by which the timing and focus of information technology policies can be used to optimize supply chain performance and reduce production times. This is done by extending an earlier statistical physics model for quasi-static situations to examine temporal phenomena in manufacturing supply chains. A simple model is considered in which the product manufacturing process in a supply chain resembles the flow of a fluid in a pipe. At each position in the pipe, value is added to the fluid to produce the finished product at the exit orifice. Following the statistical physics model, information technology policy impacts the rate of change of the flow velocity by the action of a statistical physics-derived effective force. It is found that wave phenomena naturally occur in the inventories in supply chains. A simple quasilinear analysis of the phenomena shows that information technology policy can be used to adjust timing and position issues to allow the chain to resonate with the propagating waves, in a manner that most effectively in reduces overall production times. This is the first step in an analytical mathematical approach that allows the evaluation of information technology architectures and topologies that optimize production outputs and minimize production disruptions