A Unified Modeling Language for Describing Supply Chain

A Unified Modeling Language for Describing Supply Chain
Management in Retail Sector
ZHU Haibo
Harbin University of Commerce, Harbin, P.R. China, 150028
[email protected]
Abstract: With the market competition aggravating, the retail enterprise competition becomes more and
more severely, Competitions will be not only between the enterprises but also between the supply chains
in the 21st century. Any supply chain enterprise has the possibility to win in the competition only when
it forms the strategic alliance with the upstream and downstream enterprise, and forms the stable supply
chain and increases overall supply chain value. The construction of a practical retail supply chain
management (SCM) system can not only realize the high-efficiency of SCM but also can establish a new
information management solution for retail industry. This paper articulates a way of using unified
modeling language (UML) to develop SCM system for retail industry. The results show that the UML
was useful in the development of SCM system. In summary, this paper can shed light on future research
in development of SCM system for retail industry.
Keywords: Supply chain management, Unified modeling language, Model, Retail sector
1 Introduction
The competitive advantages between retail enterprises lie in the advantage of their supply chains,
the level of supply chain operations will directly determine the overall competitiveness of retail
enterprises [1]. At present, there are more than twenty of the world’s top retailers entering China, retail
industry of China is not only facing fierce international competition, but also facing domestic market
saturation. Faced with the pressure of market competition, retail enterprises of China must enhance their
competitive advantages through strengthening the building of information technology.
Supply chain management (SCM) is the process of planning, implementing and controlling the
operations of the supply chain as efficiently as possible. SCM spans all movement and storage of raw
materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption
[2]. SCM is the active management of supply chain activities to maximize customer value and achieve a
sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop
and run supply chains in the most effective and efficient ways possible. Supply chain activities cover
everything from product development, sourcing, production, and logistics, as well as the information
systems needed to coordinate these activities. To achieve a SCM system, retailer needs to manage the
supply chain effectively and apply IT to system such as communications technology, computer
technology. In order to promote the SCM, retailer must establish a management system. System model
must be established before the establishment of management system.
In addition, the unified modeling language (UML) has been identified as a way of providing a
solution to the modeling bottleneck [3]. Being the standard modeling language in software engineering,
UML has received wide attention not only in academia, but also in professional software development.
The wide acceptance of UML makes it an ideal language to be used by a critical mass of people to build
high quality models of information system [4].
At present, many experts and researchers have put forward SCM software model, but most of them
are based on the traditional structured method, this paper uses UML and object-oriented analysis method
to analyze business modeling of SCM system for retail industry, the model can enhance the exchange
among the experts, software designers and users, making system develop smoothly.
2 Analysis of processes of retail SCM system
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Generally speaking, the major functions of retail SCM system include: “project management”,
“procumbent management”, “warehouse management”, “sales management”, “supplier management”,
“management of goods and prices”.
Retail SCM software module is the principal business of procurement management, warehouse
management, sales management, which support enterprise internal business process. Each business
module plays two roles in the supply chain: the supply side and demand-side. Vendor management
module is the retail business and external supply chain network interface [5]. Integration system model
of retail supply chain management is shown in Figure 1. For the sake of brevity of the paper and
complication of the system, we choose the procurement management as example to show the process of
modeling of SCM system using UML.
IOIS
Supplier
network
IOIS
Procurement
management
Warehouse
management
(inbound storage/
physical inventory/
outbound
storage/scrap and
verify/allocation)
Sales
management
End-user
network
Figure 1 Integration system model of retail supply chain management
3 Modeling of retail SCM system using UML
3.1 Use case analysis
Use case diagrams address the business processes that the system will implement. Use cases
describe the functional capabilities of the system and the external actors that interact with it [6]. Use
case modeling is very popular within the software engineering community and service requirements can
be effectively analyzed through use case modeling. Use case modeling makes the user understand how
the system works through the relationships between actors and use cases. Use case modeling is user
based and a function oriented analysis method. It is quite effective as the requirements analysis method.
Effective procurement of goods contributes to the competitive advantage of a retailer. The
procurement process links members in the supply chain. The process of the procurement is normally run
by the retailer’s purchasing department. The structure of a typical process includes the following stages:
(1) Purchasing department set up purchasing plan according to the user’s need plan and formulate
expenditure plan which is delivered to financial department [7];
(2) Purchasing department transmit purchase documents to suppliers. Electronic data interchange
(EDI), which involves the electronic transfer of purchase documents between the buyer and seller, can
help shorten order cycle time. EDI transactions, particularly through the Internet, will increase over the
next several years [8].
(3) Warehouse department receipt/inspection/in storage goods and delivery warehouse warrant to
financial department.
(4) Financial department formulate account receivable according invoice.
Based on the process of procurement management, use case can be identified. The use case
diagram is shown in figure2.
372
Figure 2 Use case diagram of procurement management
3.2 Static modeling
Class diagram technology is the core technology of the object-oriented method; it is well known
and widely used among software developers. Class diagram shows the classes in a system and variety of
relationships among classes [9]. Through designing of class to realization of each use case into the
specific class so as to complete the design of the process of refinement [10].
The analysis of system class is built on the basis of use case. As analyzed above, the classes of
retail SCM system includes purchasing department, warehouse, examine department, purchasing project
management, purchasing&receiving goods, financial department, purchasing project management,
purchasing list management, supplier management. The class diagram is shown in figure 3.
Figure 3 Class diagram for procurement management system
3.3 Dynamic Modeling
373
Use case and class model belong to the static model, system dynamic behavior can be described
using UML dynamic modeling. Dynamic model is used to describe the function of the system. In the
actual application, many diagrams can be used such as sequence diagram, collaboration diagram,
activity diagram and state chart diagram; these dynamic modeling diagrams can describe object
behavior and interaction between objects from different perspectives [11]. Specifications are generated.
3.3.1 Activity diagram
Activity diagram emphasizes the flow of control among objects and models the functions of a
system [12]. Procurement management activity diagram is shown in Figure 4.
Figure 4 Procurement management activity diagram
3.3.2 Sequence diagram
Sequence diagram displays object interactions and messages in time-sequence order [13].
Procurement Management sequence diagram is shown in Figure 5.
Figure.5 Procurement management sequence diagram
4 Conclusions
374
Supply Chain Management (SCM) is a kind of integrated managing system which regulates the
supplying operations in the process of production. The SCM is adopted to provide better services for the
customers and to improve product’s competition ability at the minimum costs through regulating and
smoothing various factors such as materials transportation, capital flow and information exchange and
so on [14].
As modeling is crucial for system development, it is necessary to develop a well-organized
modeling before software development. UML is a kind of powerful, object-oriented system-analyzing,
visual modeling language [15]. It uses a set of advanced modeling technology and is widely applied to
various fields. This paper research on retail SCM system based on the UML and it mainly illustrates the
software structures and how to establish a well functional system model, including use case model,
static model and dynamic model. Predictably, some more in-depth study needs to be carried out for the
integration of information system between different enterprises on the supply chain.
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