A Unified Modeling Language for Describing Supply Chain Management in Retail Sector ZHU Haibo Harbin University of Commerce, Harbin, P.R. China, 150028 haibo26@yahoo.cn 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 (SCM) system can not only realize the high-efficiency of SCM but also can establish a new information 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, 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 (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 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 system. System model must be established before the establishment of 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 371
Generally speaking, the major functions of retail SCM system include: project, procumbent, warehouse, sales, supplier, of goods and prices. Retail SCM software module is the principal business of procurement, warehouse, sales, which support enterprise internal business process. Each business module plays two roles in the supply chain: the supply side and demand-side. Vendor module is the retail business and external supply chain network interface [5]. Integration system model of retail supply chain is shown in Figure 1. For the sake of brevity of the paper and complication of the system, we choose the procurement as example to show the process of modeling of SCM system using UML. IOIS IOIS Supplier network Procurement Warehouse (inbound storage/ physical inventory/ outbound storage/scrap and verify/allocation) Sales End-user network Figure 1 Integration system model of retail supply chain 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, use case can be identified. The use case diagram is shown in figure2. 372
Figure 2 Use case diagram of procurement 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, purchasing&receiving goods, financial department, purchasing project, purchasing list, supplier. The class diagram is shown in figure 3. 3.3 Dynamic Modeling Figure 3 Class diagram for procurement system 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 activity diagram is shown in Figure 4. Figure 4 Procurement 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. 4 Conclusions Figure.5 Procurement sequence diagram 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. References [1] Abuhilal, L; Rabadi, G and Sousa-Poza, A. Supply Chain Inventory Control: A Comparison among JIT, MRP, and MRP with Information Sharing Using Simulation, Engineering Management Journal, 2006, 18(2):51~57 [2] Agrawal, N; Smith, S and Tsay, A. Multi-Vendor Sourcing in a Retail Supply Chain, Production & Operations Management, 2002, 11(2):157~182 [3] J. Rumbaugh, I. Jacobson and G. Booch. The Unified Modeling Language Reference Manual (2nd edition), Addison-Wesley, Reading, MA,2005:89~100 [4] Henderson Sellers, Brian. About UML profiles. Springer Verlag. MoDELS'2006 Conference, Genova, 2006 [5] Hendricks, K and Singhal, V. Association between Supply Chain Glitches and Operating Performance, Management Science, 2005, 51(5):695~711 [6] Aigbedo, H and Tanniru, M. Electronic Markets in Support of Procurement Processes Along the Automotive Supply Chain, Production Planning &Control, 2004, 15(7): 688~695 [7] Kopczak, L and Johnson, M. The Supply-Chain Management Effect, MIT Sloan Management Review, 2003, 44(3):27~34 [8] Angulo, A; Nachtmann, H and Waller, M (2004). Supply Chain Information Sharing in a Vendor Managed Inventory Partnership, Journal of Business Logistics, 25(1):101~120 [9] Beamon, B and Fernandes, C. Supply-Chain Network Configuration for Product Recovery, Production Planning & Control, 2004, 15(3):270~281 [10] Gunasekaran, A and Ngai, E. Virtual Supply-Chain Management, Production Planning & Control, 2004, 15(6):584~595 [11] Kopczak, L and Johnson, M. The Supply-Chain Management Effect MIT Sloan Management Review, 2003, 44(3):27~34 [12] Penker, Magnus; Hans-Erik Eriksson. Business Modeling with UML[M]. John Wiley & Sons, 2004:120~130 [13] Henderson Sellers, Brian. about UML profiles. Springer Verlag [C]. MoDELS'2006 Conference, Genova, 2006 [14] Elliman, T and Orange, G.. Developing Distributed Design Capabilities in the Construction Supply Chain, Construction Innovation, 2003, 3(1):15~26 [15] Penker, Magnus; Hans-Erik Eriksson. Business Modeling with UML [M]. John Wiley & Sons, 2004:69~76 375