Rohit Baswan, Rashmi Jain , Bernard L. Menezes, Prashant Rajoria
Application Service Provider (ASP)-based supply chain management holds much promise in reducing overall costs and response times in a supply chain. Inventory holding cost and stockout cost reduction through collaborative forecasting at the ASP need up-to-date point-of-sale data and lead times obtained from the nodes in a supply chain. Traditionally, a node bases its order on its local inventory level or on the volume of orders it has received from its clients leading to the bullwhip effect. Our ASP-based design facilitates more efficient ordering policies based on inventory levels and order quantities at all descendants of a given node. Core functionality is captured by essential use cases such as place/process purchase order, dispatch/receive shipment and update sales. We present the structural (class diagram) and behavioral (sequence diagram) description of a simplified version of ASP-based supply chain management using the min-max inventory policy. For illustration, we use J2EE technologies. We also briefly discuss the security requirements of our application.