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Improvement of Material Flow in the Production and Supply Chain of ...

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separately <strong>and</strong> <strong>the</strong> supply cha<strong>in</strong> emphasizes rigor <strong>and</strong> tough barga<strong>in</strong><strong>in</strong>g. But <strong>in</strong> present,<br />

<strong>the</strong> supply cha<strong>in</strong> l<strong>in</strong>ks up all <strong>the</strong> players <strong>in</strong> a horizontal supply cha<strong>in</strong> <strong>and</strong> emphasizes<br />

seamless delivery, optimization <strong>and</strong> <strong>in</strong>tegration (Li, 1990). An <strong>in</strong>tegrative supply cha<strong>in</strong><br />

strategy recognized would create value for both <strong>the</strong> firms <strong>and</strong> customers. Recent years,<br />

lots <strong>of</strong> persons study <strong>the</strong> topic <strong>of</strong> <strong>in</strong>tegrative supply cha<strong>in</strong> <strong>and</strong> some <strong>of</strong> <strong>the</strong>m get a<br />

conclusion that higher <strong>the</strong> degree <strong>of</strong> <strong>in</strong>tegration across <strong>the</strong> supply cha<strong>in</strong>, <strong>the</strong> better a<br />

firm performs (Vickery, Jayaram & etc, 2003).<br />

<strong>Supply</strong> cha<strong>in</strong> is based on “Competition – Cooperation - Harmony” <strong>and</strong> harmony is <strong>the</strong><br />

foundation <strong>of</strong> a steady supply cha<strong>in</strong>. There are two sides <strong>of</strong> supply cha<strong>in</strong> harmony; one<br />

is harmony <strong>in</strong>side <strong>of</strong> a firm <strong>and</strong> <strong>the</strong> o<strong>the</strong>r is <strong>the</strong> harmony among different cooperative<br />

associates. The first one scope <strong>in</strong>cludes material flow, funds flow, <strong>and</strong> <strong>in</strong>formation flow<br />

among different departments <strong>in</strong> one enterprise. While <strong>the</strong> second one means harmony<br />

among suppliers, manufacturers, <strong>and</strong> venders. An effective <strong>and</strong> efficient harmony<br />

among different cooperative associates could reduce cost, enhance manage supply<br />

cha<strong>in</strong> <strong>and</strong> improve <strong>the</strong> efficiency (Jiang, 2006).<br />

Figure 5.2 <strong>Supply</strong> Cha<strong>in</strong> <strong>in</strong> <strong>the</strong> Past <strong>and</strong> Present<br />

In this research <strong>the</strong> goal is optimize <strong>the</strong> material flow <strong>and</strong> <strong>in</strong>ventory, <strong>the</strong> follow section<br />

will focus on <strong>the</strong>m based on an <strong>in</strong>tegrative supply cha<strong>in</strong> strategy. In this chapter, <strong>the</strong><br />

ma<strong>in</strong> research focuses on material flow between suppliers <strong>and</strong> factory.<br />

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