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Implementation of Fisher's Model in the Supply Chain Management

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Introduction

Market globalization, intensifying competition and an increasing emphasis on

customer orientation are regularly cited as catalyzing the surge in interest in supply chain

management. Against this backdrop, effective supply chain management is treated as key

to building a sustainable competitive edge through improved inter and intra-firm

relationships (Seuring et al 2003). A range of benefits has been attributed to supply chain

management, including reduced costs, increased market share and sales, and solid

customer relations (Langabeer 2007).

There is one paper which presents a major contribution to the field of supply chain

management and this is Fisher’s What is the right supply chain for your product? …show more content…

To battle this challenge,

the company is using an accurate response model which is a good example of

implementation of a responsive supply chain strategy. The model tells the company

exactly how much of each style to make early in the production season. This approach

has cut the costs of both overproduction and underproduction in half-enough to increase

profits by 60%.

Implementation of Fisher’s model, therefore, includes three basic steps. Determine the

nature of your product, decide about your supply chain priorities, and as a last step,

employ a matrix to formulate the ideal supply chain strategy.

A critique of Fisher’s model

As Seuring et al (2003) state, the Fisher’s paper has influenced the supply chain

literature in a great extent. While reference is more often made to the supply chain

dimension and the separation of responsive and efficient supply chain, the product related

dimension also played an important role in the development of further concepts.

This influence can be primarily seen by the number of subsequent papers that build upon

it. These papers have analyzed Fisher’s model from the different angles and pointed out

some weaknesses and limitation of this approach.

A critique of the model as it appears in the presented assignment will be therefore

built on three main approaches. The first one is an empirical test of the model which has

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