International Journal of Logistics Systems and Management (93 papers in press)
DETERMINATION OF VEGETABLE POSTHARVEST LOSS IN THE LAST-MILE SUPPLY CHAIN IN TANZANIA: A LEAN PERSPECTIVE
by Martin Dome, Sadananda Prusty
Abstract: ABSTRACT: rnPurpose Global population growth exerts tremendous effect to the extent of constraining the food supply chains. Consequently, this calls for serious efforts in minimising food wastes upheld in agro-supply chains. Fresh vegetables are perishable in nature hence more vulnerable to postharvest losses (PHLs). This paper aims at determining PHLs experienced and establish the most prone channel for high PHLs.rnDesign/methodology/approach This study employed a case study strategy. Both primary and secondary data were collected using self-administered questionnaire. The questionnaires were distributed to a multistage sample in five popular vegetable markets of Kilombero, Arusha Central Market, Samunge, Jakaranda and Unga Ltd in Arusha city. Analytical methods were used to determine PHL both in terms of quantity and value as well as the profitability achieved by last-mile traders using tomatoes, carrots and cabbage as selected vegetables.rnFindings The study found out that more PHLs occur at the retail stage and is more than twice compared to the amount at the wholesale stage. Cabbage exhibited the lowest turnover rate followed by carrots and tomatoes. Similarly, cabbage registered the highest PHL rate followed by tomato and carrots. On average, wholesalers cum retailers registered a PHL rate of about three times those of wholesalers per se. Retailers constituted 70% of respondents who acknowledged to have faced PHL. It was also found that, the longer is the chain the more PHL was sustained. rnOriginality/value The vegetable PHLs in Tanzania has remained understudied, and this study tried to cover this gap in academia.rn
Keywords: Postharvest loss; Vegetable supply chain; Perishable produce; Lean approach; Last mile supply chain; Tomato; Carrots; Cabbages.
A fuzzy mathematical model for supplier selection and order allocation considering green vehicle routing problem
by Roohollah Ramezanzadeh Baraki, Farhad Kianfar
Abstract: In recent years, with the expansion of environmental issues and the consciousness raising of the customers, companies are experiencing huge pressure from shareholders and the government for greater compatibility with their environment. Companies and industry owners must implement green operations in their daily activities to be able to remain in the competitive atmosphere of the environment. One of the most important operations is cooperating with green suppliers. In this study, a multi-objective mathematical model is proposed to select suppliers and allocate optimal orders to them in a two-echelon supply chain, including supply and distribution echelons. The proposed model focuses on the routing of each supplier in addition to the selection of suppliers. Moreover, the possibility of storage, multi-product and multi-period state, and stair discount constitute the other assumptions of this model. Finally, the proposed model was implemented in a food distribution chain in Iran to validate it. The obtained results suggest the efficiency and effectiveness of the proposed model
Keywords: Supplier selection and order allocation, Mathematical modelling, Fuzzy theory, Vehicle routing problem
A Systems Approach to Mapping Logistics Systems Performance of Small and Medium Manufacturing Enterprises
by Hemamala Krishnan, Sanjay Banerji, Mridula Sahay
Abstract: Logistics systems are complex networks of facilities that are designed to deliver products / services to customers with the objective of providing superior customer service in a most efficient manner. Measuring the performance of these systems is challenging owing to their structural complexity. Logistics facilities in the system are non-linearly interconnected with material, information and money flows causing response delays in the system. Measuring the performance of logistics systems therefore, requires a comprehensive understanding of the structure and behaviour of these systems. This paper proposes a systems approach to understand the structure of logistics system of small and medium manufacturing firms. A causal loop (Influence) diagram is proposed for mapping the system that identifies various key components of a logistics system - resources, performance drivers and outcomes and explains their interrelationships using feedback loops. The diagram explains the structure of the system that causes the observed system behaviour by describing how the deployment of logistics resources influences the outcomes through performance drivers.
Keywords: Logistics, Logistics system structure, Key drivers of performance, Feedback loops, Systems approach, Causal Loop / Influence Diagrams
Change Management in Indian Pharmaceutical Industry: a case study
by Umesh Jamwal, Dilbagh Panchal, Anish Kumar
Abstract: The aim of this study is to perform qualitative analysis for finding out the best sequence of target practices for a pharmaceutical industry located in northern part of India. The finding of best sequence of target practices helps in replacing the existing practices and hence improving the business outcome of the particular industry. The analysis has been done using a qualitative approach called Matrix of Change (MOC). The qualitative information collected from different areas such as organisational System, Structure, Culture, Technology and People have been used for carrying the effective change management in the considered industry. The analysis results were supplied to top management of the considered industry which would be highly useful for the considered industry in the expansion of its business globally.
Keywords: Pharmaceutical industry, qualitative analysis, Target practices, change management, Matrix of Change
The impact of the transport policies on marketing charges in the rail transport comparisons between the European Union member states
by Danica Murko, Zlatka Stok
Abstract: In recent years, the European Union devoted much attention to the transformation of a common rail market. This paper, therefore, focuses on intermodal rail transport in Slovenia. Subsidising intermodal rail transport in Slovenia between Austria and German is a current practice.
The European Commission has studied internalising external costs for several years. In our research, we have conducted a review of the situation in the field of marketing for the use of public rail infrastructure in Slovenia.
We suggest that the price of rail infrastructure charges gradually increase so that the funds obtained from marketing charges in 2020 accounts for half of the funds needed for the purpose of maintaining existing public rail infrastructure. However, investments in the modernisation of rail infrastructure are also crucial. Modernisation is the only way to ensure the competitiveness of rail transport services in the future.
Keywords: public rail infrastructure; usage charges; marketing; investments into public rail infrastructure; charging model; research.rn.
Land Transportation Assets Potential Future Trends and the Third Party Logistics Providers in Emerging Markets, with a Case Study Applied in Brazil
by Douglas Tacla, Rui Botter
Abstract: This paper looks at Third Party Logistics (3PL) asset strategy options for land transportation in emerging markets through a case study of truck operations in Brazil. The fundamental question to be answered is: What is the preferred business model for a third party logistics (3PL) provider in emerging markets regarding asset ownership? That is, is it preferable for the 3PL to own and operate trucks? An opinion survey was deployed and analysed using statistical methods in association with market trend and financial aspects, interpreting the data in line with concepts identified through a literature review concerning the theme. This study is motivated by the challenges and decisions that the 3PL faces nowadays: whether to act as an integrator, managing and/or owing assets; or develop a business as a Leader Logistic Provider (LLP) managing third parties and/or outsourcing services. Moreover, global companies must integrate their business model in emerging markets with their global strategy. The results indicate that asset ownership may be a good strategy to access specific niches or enter a particular market, but this is not the current tendency of the logistics industry in emerging markets.
Keywords: Land Transportation, Transportation Assets, Contract Logistics Industry, 3PL’s Business, Logistics in Emerging Markets, Cargo Transportation Strategy
Barriers Analysis for Green Supply Chain Management Implementation in Power Industry using ISM
by Sheetal Soda
Abstract: As industrial development spills over to developing nations spiralling global energy demand, there is increased concern for environment as power generation is closely associated with environmental degradation and pollution. In contrast to developed nations, the developing nations are relatively lagging when it comes to greening supply chain of power industry. India is fast emerging as a prime energy producer, as well as consumer of energy. The Indian Power industry is witnessing a phase of transition, wherein switchover from traditional operations to modern practices is precipitating; but still there is a long way to go. With sustainable development becoming a buzz word in socio-economic settings the world over, the call for cleaner energy is gaining louder, day by day. At the forefront of the targeted industries blamed for pollution and environmental degradation, lies the Global Power Industry. The answer lies in the adoption of Green Supply Chain Management (GSCM) techniques to various sections of the industry. This research study aims to evaluate prominent barriers and their interrelations in retarding the spread of GSCM culture. The power industry of Punjab (India) has been considered for the study, with the intent to assess the environmental consciousness imbibed and exhibited by its constituent companies in their infrastructural setup and operational undertakings. This research paper makes an attempt to assess the barriers that were identified from extensive literature review and opinions invited from power industry-experts that impede implementation of GSCM by making use of Interpretive Structural Modeling (ISM).A hierarchy-based model was presented with the application of ISM Techniques to identify contextual relationships among the sixteen identified barriers that offer prospects for constructing greener models of Power Industrys Supply Chain. Out of sixteen barriers, Insufficient Government Support and Limited Investment in Green Measures barriers are found to be significant, which invoke unfavorable response from the government. These barriers act as major hindrances in a spread of GSCM across the organization. To enhance the validity of the results so reached, opinions of different industry experts were invited to corroborate the earlier deductions; thereby yielding a more accurate model. This has added to the credibility of the findings.
Keywords: Green Supply Chain Management (GSCM);Barriers, Power Industry;InterpretivernStructural Modeling (ISM)
A hybrid approach based on BOCR and fuzzy MULTIMOORA for logistics service provider selection
by Anjali Awasthi
Abstract: Partner selection is critical to developing successful collaboration for gaining competitive advantage in logistics industry. In this paper, we present a hybrid approach based on BOCR and MULTIMOORA for logistics service provider selection. The proposed approach comprises of three steps. In the first step, we identify the partner selection criteria using four categories namely Benefits, Costs, Opportunities and Risks (BOCR). The second step involves generating linguistic ratings for potential partners on the identified criteria by a committee of decision making experts. In the third and the last step, final partner selection is done using fuzzy MULTIMOORA. Linguistic information (fuzzy numbers) are used to address the lack of quantitative data. A numerical application is provided. Monte Carlo simulation-based sensitivity analysis is conducted to determine the robustness of MULTIMOORA to variation in criterion and decision maker weights.
Keywords: Logistics; Partner Selection; Multicriteria decision making; BOCR; Fuzzy Logic; MULTIMOORA; Sensitivity analysis
Management models of current assets in trading company
by Aleksandr Mishchenko
Abstract: This paper studies management models of current assets in a trading company when initial values are determined and when the parameters of problem are uncertain. Here are the methods to obtain an optimal solution,as well as an approach to estimate the risk of wholesale purchase and algorithm of stability analysis for an optimal solution.
Keywords: optimization problem, branch-and-bound method, solution stability, wholesale purchase, portfolio for wholesale purchase, portfolio risk.
Human Errors in Warehouse Operations: An Improvement Model
by Parama Kartika Dewa, Nyoman Pujawan, Iwan Vanany
Abstract: Warehouse operations are very much dependent on manual works and hence, humans play critical roles. In order to have an excellent warehouse performance, it is imperative to address the human needs so that the errors can be minimized. Papers addressing human factors in warehouse operations are limited. The purpose of this paper is to develop an improvement model that can connect between warehouse performance, human errors in the process, and actions needed to improve the performance. We propose a two-stage deployment procedure, modified from the well-known Quality Function Deployment (QFD). The first stage is to screen human errors that substantially affect warehouse performance. The second stage is to prioritize proposed improvement actions that could address most effectively the human errors. The model is applied to a warehouse operated by a logistics company that handles the storage and distribution of fast moving consumer goods.
Keywords: human factors; improvement model; modified QFD; warehouse operations
Total cost optimisation model for logistics systems of trading companies
by Dmitriy S. Rybakov
Abstract: The purpose of this research is to develop a model for optimising total logistics costs of a trading company. To achieve the aim, a logistics system has been analysed and, as a result, major subsystems, logistics processes and most substantial logistics costs have been identified. The results of the analysis have been used to elaborate conceptual and structural optimisation models. They have been further used to develop a mathematical model considering both direct and indirect costs. The mathematical model has been tested numerically, so a table model has been worked out. The research has resulted in a Boolean linear programming model for determining the values of the indicators of the order cycle time and stock level, ensuring optimal total logistics costs of a trading company. Strategic objectives have been decomposed into the goals of individual departments, expressed with the target values of the indicators of lead time and cargo turnover.
Keywords: optimisation models; total costs; logistics systems; trading companies; total cost optimisation; logistics processes; logistics costs; mathematical models; direct costs; indirect costs; Boolean programming models; order cycle time; stock level; lead time; cargo turnover
Modeling Supply Chain of Rice, Uncertainty Factors and Strategic Supply Management
by P K Das, Dr. N C Nayak
Abstract: Rice is the major staple food of Odisha. Almost 70% of the population of the state depending upon agriculture and out of which the major produced crop is rice. Odisha stood 5th in rice production in India. The impact of techno-environmental uncertainty factors like logistical problems, product specification, opportunistic behavior, on time delivery, average lateness, degree of inconsistency, reduction in cost, on time governance mechanism, increase in knowledge flow between firms and climate change on agricultural ecosystems have been a matter of concern for food security in the present situation. The uncertainty factors that are likely to enhance considerably the climate risk to the major agricultural ecosystems are: increase in temperature, higher carbon dioxide concentrations and abnormal pattern of precipitations coupled with higher frequency, drought and floods. The intent of this study is to fill the gap by providing a framework addressing how to leverage uncertainty factors to improve supply chain performance in the Indian market. In this research, strategic supply management due to the uncertainty factors to rice based supply chain which supports the livelihood security for a very large number of poor and marginalize people in India have been reported. A statistical tool (Full factorial design methodology) has been introduced here to analyze and access qualitative as well as quantitative measures. Models for capturing various uncertainty factors have been developed and the impact of uncertainties on strategic supply management tested. The present work has efficiently demonstrated the different techno-environmental uncertainties and its significance in strategic decision making.
Keywords: Strategic supply management, uncertainty factors, climatic effect, Rice supply chain, modeling.
Configuration selection in Reconfigurable Manufacturing System based on Reconfigurability
by Kamal Mittal, Pramod Jain, Dinesh Kumar
Abstract: Reconfigurable manufacturing systems (RMS) is considered as a major resource of providing variable production capacities and capabilities by different manufacturing companies. For different products needed in small quantities and with short delivery lead time, this is achieved through reconfiguring the system elements over the time. There is a need to develop a suitable performance index for mapping the manufacturing system characteristics. To find the reconfigurability of RMS considering the different characteristics such as modularity, convertibility and diagnosability an index has been developed in this paper. Using weighted sum theory, these characteristics have been mapped together. A case study is given to understand the applicability of the proposed methodology on a given system.
Keywords: reconfigurable manufacturing system (RMS); modularity; convertibility; diagnosability; reconfigurability;
FMEA Based Interpretive Structural Modelling Approach to Model Automotive Supply Chain Risk
by Ajay Kumar Pandey, Rajiv kumar Sharma
Abstract: The purpose of this study is to analyse and model various risks which may disrupt the automotive supply chain. For illustration, an automotive supply chain of tractor manufacturing company has been undertaken, seventeen potential modes of failures or risk sources are identified through close scrutiny of literature and weighted risk priority numbers (WRPN) have been calculated. Out of these seventeen failure modes, eleven are selected as key learnings (by performing SAP-LAP analysis) based upon higher WRPN numbers. Further to model, the structural relationship among these key risks Interpretive Structural Modelling (ISM) approach is used. In order to find out the driving power and dependency of risks MICMAC analysis has been performed. The results of the study demonstrate that the variables i.e. poor planning and scheduling and hazards are the key risk variables (highest driving power) and can be considered as the root cause of the problem. Quality risk, inventory risk and outsourcing risk have strong dependence power and hence can be considered as the most important risks and management shall focus on these for the managing the disruptions in an automotive supply chain.
Keywords: FMEA, automotive supply chain, interpretive structural modelling, case study.
Inventory model with expiration date of items and deterioration under two-level trade credit and preservation technology investment for time and price sensitive demand: DCF approach
by Nita Shah, Urmila Chaudhari, Mrudul Jani
Abstract: In this cut-throat competitive business world, cash-on-delivery is no longer a practice. Consequently, the retailer offers numerous short-term or long term credit limit to the customer. The middle-layered player passes the offer of delay payment to the end users. In addition, most of the items have a fixed lifetime and deteriorate continuously which cannot be sold after its expired dates. However, preservation technology investment can reduce deterioration rate of items in retailers inventory system. In this paper, an inventory model is formulated when retailer offers partial credit which he received from the supplier when demand is decreasing with time and price. The profit function is constructed using inflation rate and risk involved due to offer of credit period in generating revenue. The decision policies are analyzed for the decision maker. Numerical examples are used to demonstrate the theoretical derivations. Sensitivity analysis is carried out for the advantageous scenario depending upon the lengths of the credit periods.
Keywords: Inventory model, Expiration date, Preservation technology investment, Two-level trade credit, DCF approach
Inventory management of supply chain with robust control theory: Literature review
by Azeddine Zemzam
Abstract: Supply chain management (SCM) has become a vital tool for organizations which desire to improve performance and resilience. More and more attention in SCM has been dedicated to inventory. The great potential of control theory to handle inventory problems was evidenced since the early 1950s. In particular, the robust control which is devoted to dealing with uncertainties and minimizing the worst case value of disturbances represents a useful tool to help research in inventory management. This paper aims to provide a review of 37 articles covering the application of robust control in modeling and control of inventory problems according to the considered uncertainties mainly in demand and delay time.
Keywords: Supply chain; Inventory management;Robust control theory;Uncertainties
An analysis of strategic groups in the Third-Party Logistics industry
by Roberta Scarsi, Riccardo Spinelli
Abstract: Third-party logistics is a very heterogeneous industry, moving towards a progressive concentration and services differentiation at the top, but still made up by companies that differ in terms of size, supplied services, and background. This structural variety offers the starting point for a grouping analysis, which aims to identify strategic groups among major players in the industry. 199 third-party logistics service providers (3PLs) worldwide are analysed applying a two-step clustering technique to a wide set of variables which refer to the main strategic drivers for 3PLs. Three strategic groups emerge from the analysis. The first one includes major global players; the second one encompasses less advanced local providers; the third one embraces a large number of firms which are experiencing a transition from simple to more complex and internationally oriented business models.
Keywords: 3PL; third-party logistics; logistics industry; logistics service providers; strategic groups; two-step cluster analysis; grouping analysis; global players; local providers; transitional providers.
Multi-echelon Closed-Loop Supply Chain Network Design and Configuration under Supply Risks and Logistics Risks
by Surya Prakash, Gunjan Soni, Ajay Pal Singh Rathore
Abstract: Present day supply chains are dynamically expanding with the increase in globalization but susceptible towards a number of risks too. The risks cause disturbances in supply chain and hinder the movement of products across their stage which ultimately leads to overall increases in supply chain costs. In this paper, a multi-echelon closed-loop supply chain model is considered, where suppliers quality risks (production issues), logistics risks (transportation issues) are mathematically modeled using mixed integer linear programming (MILP) formulation. The paper highlights benefits of adopting the supply chain network design under risk. The comparison of risk and no risk situation is illustrated for a generic closed-loop supply chain network. The findings suggest that risk consideration in supply chain network design is very useful, and its cost is not much higher to the organization too. The supply chain resilience can be achieved with a moderate risk premium. The firms which can pay 10-13% more will be able to sustain in risk events and their network configuration will be robust under supply and logistics risks happenings.
Keywords: Closed-Loop Supply Chain, Network Configuration, Supply risk, Disruptions, Supply Chain Planning, Network Design, Mixed Integer Linear Programming
Models for Solid Transportation Problems in Logistics Using Particle Swarm Optimization Algorithm and Genetic Algorithm
by Abhijit Baidya
Abstract: Transportation policy seeks to improve agency freight and cargo management and enhance sustainable, efficient and effective transportation operations. In this paper, four new fuzzy fixed charge solid transportation problems (FFCSTP) are formulated to maximization the total profit and minimization the total cost of the retailer at the destinations with imprecise values of unit transportation cost (UTC), purchasing cost (PC), selling price (SP), resources, demands, conveyances capacities. Three new constraints (interval-valued weight, volume and budget constraint) are also investigated to formulate the interval-valued solid transportation models. The fuzzy quantities are converted to interval numbers using nearest interval approximation. The interval objective function is approximated by an interval-valued function i.e., transformed to a single objective using weighted sum method and weighted multiplication method. The fuzzy constraints are converted to its equivalent deterministic form using different interval order relations. GA and PSO algorithm are used to obtain the optimal transportation schedule for the proposed solid transportation problem. To validate the results, five equivalent forms of the four proposed models are obtained by using different interval approaches and order relations. During the evaluation of the models, in one case, limitation on the transported amounts is imposed and in other case, no such limitation is used. The models are illustrated with numerical examples and the optimum results of the models are compared.
Keywords: Fuzzy fixed charge solid transportation problem, weight and volume constraint, budget constraint, interval order relations, genetic algorithm, particle swarm optimization algorithm.
Configuration and implementation of a daily artificial neural network based forecasting system using real supermarket data
by Ilham Slimani, Ilhame El Farissi, Said Achchab
Abstract: The purpose of any effective supply chain is to find a balance between supply and demand by coordinating all internal and external processes in order to ensure delivery of the right product, to the right customer, at the best time and with the optimal cost. Therefore, the estimation of future demand is one of the crucial tasks for any organization of the supply chain system who has to make the correct decision in the appropriate time to enhance its commercial competitiveness. In an earlier study, where various artificial neural networks structures are compared including Perceptron, Adaline, No-Propagation, Multi Layer Perceptron and Radial Basis Function for demand forecasting, the results indicate that the Multi Layer Perceptron (MLP) structure of neural network present the best forecasts with the optimal Absolute Error, Mean Squared Error and the lowest Mean Absolute Percent Error. Consequently, the major aim of this paper consists on modeling and implementing a daily demand predicting system using the MLP architecture to forecast future demand of a Moroccan supermarket based not only on historical data, but also with the addition of other inputs and parameters such as previous demand quantities, days classification and average demand quantities. The results are satisfactory and promising, because adding these new inputs to the adopted neural network has a positive impact on the accuracy of short-term demand forecasting manifested in an optimum error. Besides, the accuracy of demand forecasts in a supply chain is a key element of competitiveness and since the results are validated using real dataset, the proposed forecasting model can be implemented as a solution to demand uncertainty in any real supply chain.
Keywords: artificial intelligence; supply chain management; logistics; neural networks; demand forecasting; short term forecasting
AN EOQ INVENTORY MODEL WITH STOCK DEPENDENT DEMAND UNDER PERMISSIBLE DELAY IN PAYMENT
by Trailokyanath Singh, Hadibandhu Pattanayak, Ameeya Kumar Nayak, Niranjan Nirakar Sethy
Abstract: The present paper focuses on an EOQ (Economic Order Quantity) inventory model for deteriorating items having stock dependent demand when delay in payment is permissible. The deteriorating items follow constant deterioration rate. Shortages are allowed and are completely backlogged. The mathematical models are also derived under two circumstances: Case I: The permissible delay period is less than or equal to the shortage time point for settling the account and Case II: The permissible delay period is greater than the shortage time point for settling the account. Numerical examples are provided to illustrate the effectiveness of the proposed methods and solution procedure. Furthermore, sensitivity analysis of the various parameters is carried out and some interesting managerial insights are presented.
Keywords: Constant deterioration, Permissible delay in payments, Shortage, Stock dependent demand
Qualitative studies in supply chain management research: potential contributions of Centering Resonance Analysis
by Marcelo Barbosa, Jonathan Freitas, Marcelo Ladeira
Abstract: The historical strong emphasis on quantitative studies in Supply Chain Management (SCM) is giving place to more qualitative studies. The execution of SCM activities as well as interactions among participants in the chains generates lots of information which can be analysed using qualitative methods. A common methodological problem in such analyses is how to move beyond specific linguistic material to generalizations. One method suited for this is Centering Resonance Analysis (CRA), which allows the synthesis of texts into smaller categories. This article discusses the contributions and potential future use of CRA in SCM field by performing a systematic literature review in studies that adopted this technique. Results showed that CRA has been adopted in SCM since 2010 in order to analyse documents that vary from training materials and corporate social reports to interviews and software documentation. A characterization of methods applied in conjunction with CRA is also provided.
Keywords: Centering Resonance Analysis; Qualitative Methods; Supply Chain Management; Content Analysis; Centering Theory; Systematic Literature Review
A Fuzzy Revised-DEMATEL method to evaluate vehicles fleet maintenance management in uncertainty
by Abdelaziz EL KFITA, Omar DRISSI-KAITOUNI
Abstract: Vehicle fleet maintenance management is an important activity faced by decision makers within public administrations and companies devoted to passengers and freight transportation services, given the importance of fleet availability and reliability to keep a good operation via its service in uncertainty. Revised-DEMATEL and fuzzy set theory based on linguistic variables, have been used in order to evaluate vehicle fleet maintenance process in Moroccan administration to find the most important factors causing unavailability problems of the vehicles fleet. Using this method, the involved factors are separated into the cause and effect groups for conducting decision-makers focus on those criteria (factors) that provide important influence. Following this empirical study the result shows that, within the cause group, the Age, Size and drivers factor is the most important factor affecting Maintenance Service. By contrast, the Effectiveness is the most influenced of the effect group.
Keywords: Revised-DEMATEL; fuzzy set theory; vehicles fleet; maintenance management.
An integrated approach with SEM, Fuzzy-QFD, and MLP for supply chain management strategy development
by Navee Chiadamrong, Tran Thi Tham
Abstract: This study proposes an integrated approach to determine the most suitable strategies, based on Structural Equation Modeling (SEM), Fuzzy-QFD, and Multi-Objective Linear Programming model (MLP). The relationships between supply chain capabilities, competitive advantages, and business performance are identified using SEM. An integrated SEM and Fuzzy-QFD approach is proposed to transform the significant factors into SCM strategies. Then, MLP model is applied to identify suitable strategic actions according to multiple conflicting objectives under a budget constraint. A case study from the Vietnamese food industry is given to illustrate the proposed methodology. The outcome of the study reveals that companies should pay more attention to supply chain capabilities for SCM strategy development, which can help to gain improvement of their competitiveness and business performance. The proposed methodology also provides a comprehensive picture for companies by transforming such relationships into specific SCM strategic actions to obtain the optimal solution according to their preference.
Keywords: Supply chain management strategy; Structural Equation Modeling (SEM); Fuzzy-QFD approach; Multi-Objective Linear Programming model (MLP)
Adaptation of simulated annealing to an integrated municipal solid waste location-routing problem
by Hossein Asefi, Samsung Lim, Mojtaba Maghrebi
Abstract: Waste management and its associated processes and activities are one of the challenging issues for municipalities and other responsible sectors in most mega cities. Due to the population growth and technological progresses nowadays, the amount of waste generation in different types (e.g. recyclables and hazardous wastes) has increased significantly. Municipal solid waste management involves the collection, transportation, recycling, treatment and disposal of different types of wastes. Among the associated costs in municipal solid waste management, the transportation cost as one of the most significant constraints can be effectively economized by efficient planning approaches. This paper aims to present an integrated municipal solid waste management network covering multiple types of wastes concurrently and utilize the location-routing problem framework to minimize the establishment cost of the interrelated facilities (i.e. transfer stations; treatment, recycling and disposal centers) in the network and the transportation cost of wastes in the entire network. The defined problem consists of the concurrent site selection of the locations of the systems all facilities among the candidate locations and the determination of routes and amounts of shipments among the selected facilities to minimize the total cost of transportation and facility establishment. As the addressed problem exhibits the non-deterministic polynomial-time hardness (NP-hardness), an adaptation of the simulated annealing algorithm is proposed in this paper to solve the problem. The obtained results compared against the exact solutions by mixed-integer programming in terms of solution fitness and computing time imply that the employed algorithm works effectively and efficiently.
Keywords: Municipal solid waste, Location-routing problem, Heuristic solution approach, Simulated annealing
Supply Chain Analytics for Enhancing the Maritime Security
by Hokey Min, Yong-Kon Lim, Jong-Won Park
Abstract: Seaports across the world can be a frequent target for illegal activities such as contraband, weapon smuggling, drug trafficking, human trafficking, piracy, and terrorist attacks. Despite the increasing risk of those illegal activities, many ports are not equipped to deal with unforeseen security breaches. Although the use of X-ray scanning technology for cargo inspection has been on the rise due to its effectiveness in detecting potential security breaches, it alone cannot protect the port and its surrounding areas from illegal activities. To maximize the full benefit of X-ray based cargo inspection through enhanced maritime logistics visibility, we propose supply chain analytics which can not only add business intelligence to the cargo inspection process, but also guide the port authority to make informed decisions regarding security protocols. This decision-aid tool is designed to improve port security and productivity by systematically gathering, storing, analyzing, and updating big data related to cargo movement, port infrastructure, and ocean-going vessel traffic. This paper is one of the first to embed supply chain analytics within the maritime security system and gauge its usefulness for enhancing maritime security in global supply chain operations.
Keywords: Business analytics; big data; maritime security; global supply chains
Optimal ordering policies in a multi-sourcing supply chain with supply and demand disruptions-a CVaR approach
by Syed Mithun Ali
Abstract: In this study, we present an analytical framework for supply chain disruptions planning of a multi-agent, multi -product supply chain with an emphasis on Conditional Value at Risk (CVaR) as a risk measure. In a risk-neutral operating condition, the decision maker seeks to minimize the expected cost. On the contrary, a risk-averse decision maker wants to minimize the expected worst-case cost of a system of interest. Considering the significance of the risk of higher cost in supply chain planning and management, this paper makes an attempt for the minimization of expected worst case cost as a CVaR measure. At the same time, the CVaR model targets to compute the response policies of a supply chain system that undergoes supply and demand disruptions. The proposed formulation is illustrated through some numerical examples. In addition, some computational results are also reported to demonstrate the benefits and applicability of the model in supply chain disruptions planning and decision-making process. The results present that the CVaR model shows a considerable difference in response policies in comparing with the expected cost model. Ordering quantities in response to supply and demand disruption are lower in the CVaR model than the expected cost model. In many instances, it is also seen that ordering quantities in response to disruptions tend to become lower when a decision maker becomes more risk-averse. It is expected that the proposed CVaR model would outperform to optimize the supply chain of an organization, in particular, for the purpose of reducing the risk of high cost.
Keywords: Conditional Value at Risk (CVaR); supply chain disruptions management; supply disruptions; demand disruptions; supply chain risks.
Analysis of Critical Factors Influencing the Management of Green Supply Chain Practice in Small and Medium Enterprises
by Aparna Choudhary, Sandeep Mondal, Kampan Mukherjee
Abstract: Increasing concern towards environment has forced the manufacturing firms to adopt green supply chain practice (GSCP) in their business processes. Managing these practices efficiently is a major challenge facing by manufacturing firms. Purpose of this paper is to explore the critical factors for managing green supply chain practice in small and medium enterprises (SMEs), and establish contextual relationship among them. A tentative list of 29 constructs influencing the management of GSCP was identified through extensive literature review and discussion with a panel of experts. A questionnaire was developed and survey was conducted on 162 SMEs. Applying factor analysis, constructs were summarized into eight critical factors. Interpretive structural modeling (ISM) methodology was deployed to develop a structural model of these factors. Considering the outcome of ISM as an input, MICMAC (Matrices Impacts Cruises-Multiplication Appliqu
Keywords: critical factors; green supply chain management; green supply chain practice; factor analysis; interpretive structural modeling; MICMAC analysis; small and medium enterprises
Multi-objective evolutionary algorithm for a ship routing problem in maritime logistics collaboration
by Eric Wibisono, Phongchai Jittamai
Abstract: This paper proposes a multi-objective evolutionary algorithm in maritime logistics collaboration of two liner shipping companies in joint-routing network design. The model is called the ship routing problem and two objectives being minimised are total cost and deviation in fair cost proportion. The method combines NSGA-II and the principles of effective genetic algorithms from the literature, and an example of application with data background from the Indonesian archipelago is demonstrated. Both the method and its application in real-life problems have never been encountered in academic publication, therefore this research has significant contribution and practical values on those fronts. Three dispersal mechanisms are tested with two different mutation probabilities and the results suggest that different rate supports different mechanism. Running times are longer in higher mutation rate, but in general the DV(1) mechanism is faster than both DL mechanisms. Non-dominated solutions are found and translated to joint routings of both carriers.
Keywords: multi-objective evolutionary algorithm; ship routing problem; maritime logistics collaboration; routing network design; Indonesian archipelago
Control Aspects in Humanitarian Logistics
by Thomas E. Fernandez, Nanthi Suthikarnnarunai
Abstract: In this paper, the authors look at the control aspects of three types of organisations involved in Humanitarian Logistics: Humanitarian Relief Organisations (HROs), commercial companies, and military organisations. Looking at both internal and external control mechanisms, this paper explores the suitability of each type of organisation in the three phases of disaster, namely preparedness, emergency response and recovery. They find that, looking at the control aspects alone, both commercial companies and HROs are well suited for logistics in the preparedness phase, while the HROs are best suited in the emergency response phase. In the recovery phase, commercial companies are best suited.
Keywords: Humanitarian Logistics; control aspects; phases of disasters; humanitarian supply chains.
A robust replenishment model for deteriorating items considering ramp-type demand and inflation under fuzzy environment
by Archana Sharma, Usha Sharma, Chaman Singh
Abstract: Supply chain performance directly depends on demand pattern, inventory management and control strategies of organizations apart from other supply chain activities. Effective replenishment policy can increase the performance of logistics and supply chain activities and customer satisfaction. Optimal inventory model can also reduce overall replenishment cost and improve financial performance of the organization. This study focuses on developing a replenishment model for deteriorating products with ramp-type demand rate under the consideration of inflation and partial backlogging. The nature of the demand function is a piecewise exponential function. The proposed model is developed under fuzzy environment, which can easily handle uncertainty and impreciseness associated with parameters. The illustrative numerical example has given in crisp as well as in fuzzy sense to demonstrate the solution procedure for the proposed approach. Sensitivity analysis is also performed to check robustness of the proposed model.
Keywords: Supply chain, Inventory model, Ramp-type demand rate, Inflation, Partial backlogging, Fuzzy
Bi-objective Location-Allocation-Inventory-network design in a two-echelon supply chain using de- novo programming, NSGA-II & NRGA
by Fatemeh Ranjbar Tezenji, Mohammad Mohammadi, Seyed Hamid Reza Pasandideh
Abstract: this paper proposes a bi-objective integrated model for supplier location-allocation, capacity allocation and supplier selection and order allocation problems in a two echelon supply chain. The goals of the proposed model is to (i) select the best supplier(s), (ii) locate the selected supplier(s) in the best location(s), (iii) determine the optimal capacity of selected supplier(s), (iv) allocate the customer(s) to supplier(s), and (v) allocate customers order (order interval). In the first step we proposed a single-objective model to minimize the total costs consist of inventory related costs (purchasing, inventory replenishment, holding and shortage (backordering) costs), transportation costs (fixed and variable costs) and fixed establishment costs. In the second stage we used de novo programming to determine the optimal capacity of selected supplier(s). Therefore, we consider a second objective function to minimize the total costs related to capacity of selected supplier(s) (variable establishment cost). We used NRGA and NSGA-II algorithms to solve the proposed bi-objective mix-integer non-linear model. At the end, we propose various test problems to show the performance of the proposed methodology. To show which meta-heuristic algorithm is better we used t-test and the simple additive weighting (SAW) method.
Keywords: Supplier selection-order allocation; location-allocation; capacity allocation; de novo programming; NSGA-II & NRGA; SAW
A STUDY ON THE EFFECTIVENESS OF INVENTORY MANAGEMENT AND CONTROL SYSTEM IN MILK PRODUCER ORGANIZATION
by Abhishek Rao, Naresh Nayak
Abstract: Inventory management is mainly concerned about identifying the amount and the position of the goods that a firm has in their inventory. Inventory management is imperative as it helps to defend the intended course of production against the chance of running out of important materials or goods. Inventory management also includes making essential connections between the replenishment lead time of goods,carrying costs of inventory, future inventory price, physical inventory, and available space for inventory. The major objective of the study is to examine to the techniques used by the company to control the inventory. It also includes studying the effectiveness of the technique adopted. In this report we can come to know the background information and the objective of the industry as a whole and also develop the project procedures and various method performed in order to get a detailed report on the industry.rnrnrn
Keywords: Key words: EOQ, ABC, Inventory, carrying costs, milk producer
An approach to improve Supply Chain Profit through Buy-back contract with reference to a Book Publishing Firm
by Debadyuti Das
Abstract: The purpose of this paper is to investigate the existing practices of buy-back contract adopted by a book publishing firm and the amount of profit gained by the publisher and a distributor as also the total supply chain profit generated under the current contract. The study was carried out in a leading book publishing firm based in India. It has considered the publisher and a distributor based in northern zone of India as two partners in the supply chain acting as a single supplier and a single customer respectively. The forecast demand of a book is estimated based on qualitative and quantitative factors and thereafter the print-run quantity and volume of returns are determined under both existing scenario and the proposed scenario based on estimated demand, variability of demand and the service level. Finally the optimum buy-back price is found out under the proposed scenario which maximizes the profit of both publisher and distributor and also the overall supply chain profit.
Keywords: Buy-back contract, publisher’s profit, distributor’s profit, Supply Chain profit, Book Publishing Organization
Effective Governance Defines Strategic Supply Chain Outsourcing Success in India
by Vijayakumar Sangam, Himanshu Shee
Abstract: This paper aims to study whether effective governance can have a positive influence on the success of supply chain outsourcing. While earlier studies mostly focused on key success factors of logistics outsourcing, the importance and effect of governance on logistics outsourcing success merits further investigation. Governance in joint participation, mutual conflict resolution and collaborative relationships are conceptualized as antecedents of outsourcing success. The results of SEM analysis of survey data from 297 professionals representing shipper organizations in India revealed a positive and significant relationship between dimensions of governance and outsourcing success. The findings draw shippers attention to collaborative relationship governance at early conceptual stage; joint work on risk and reward sharing at implementation stage; and mutual conflict resolution at post-implementation stage in order to achieving outsourcing success in India.
Keywords: 3PL project governance, logistics outsourcing success, SEM research, India
An inventory model for deteriorating item with frequency of advertisement and selling price dependent demand under mixed type trade credit policy
by Ali Akbar Shaikh
Abstract: In this paper, we have developed an inventory models for deteriorating items with selling price and frequency of advertisement dependent demand of an items under the mixed type financial trade credit policy. Shortages are allowed and partially backlogged with a variable rate dependent on the duration of waiting time up to the arrival of next lot. In this model, the deterioration rate follows three-parameter weibull distribution. Transportation cost is dependent on the lot-size as well as the distance from the source to the destination. The corresponding model have been formulated and solved by generalized reduced gradient based method. Numerical examples have been considered to discuss the results and the significant features of this model. Finally, based on these examples, the effects of different parameters have been studied by sensitivity analyses taking one parameter at a time keeping the other parameters as same.
Keywords: Inventory, deterioration, weibul distribution, Advertise and price dependent demand, partially backlogged shortage, mixed type credit policy
PLANNING THE BERTH ALLOCATION PROBLEM IN DEVELOPING COUNTRIES WITH MULTIPLE CARGOS AND CARGO PRIORITY BY A MATHEMATICAL MODEL AND A CLUSTERING SEARCH METAHEURISTIC
by Rodrigo Rosa, Glaydston Mattos, Geraldo Mauri, Winnie Fracaroli
Abstract: Some Brazilian ports operate several different cargos. These ports were privatized, and to avoid the private companies to restrict their operations to some few profitable cargos, the Brazilian government established rules, called cargo priorities, to ensure that all cargos are handled at the ports. These rules have a direct impact on port operations, especially when it comes to define the allocation of berth space for vessels. Thus, this paper presents a mathematical model and a Clustering Search (CS) metaheuristic for the berth allocation problem with multiple cargos and cargo priorities, considering time and space constraints. The paper is motivated by a port terminal located in Brazil, which handles containers, granites and cars. CS solved both instances based on real data and instances created to test large problems. An extensive analysis of all the results is also presented.
Keywords: Berth Allocation Problem; Cargo Priority; Clustering Search; Port Planning.
Vehicle Routing Problem and its solution methodologies: A survey
by Rajeev Goel, Raman Maini
Abstract: This paper presents a non-exhaustive survey of recently employed solution methodologies in the field of VRP. We also discuss briefly the VRP and its variants. Selected papers are thoroughly studied and critically analyzed chronologically. We conclude by presenting the future possibilities in modeling real life VRP and its solution techniques.
Keywords: Vehicle routing problem, Exact methods, Meta-heuristics
An evolutionary approach for supply chain management
by Xiaoming Li
Abstract: This paper aims to provide a simple pragmatic approach for supply chain management, departing from the current mainstream chase on supply chain integration. We first summarize two dominant but opposite approaches, the decentralized traditional approach and the centralized supply chain management approach, each of which has its distinct strengths and obvious weaknesses. To take advantage of their strengths and overcome their weaknesses, an evolutionary approach is laid out by applying key insights of the Theory of Evolution self-interest, adaptation, and natural cooperation, and of supply chain management demand and supply evolution. We propose an evolutionary approach that integrates four rudimentary advantages: the organization fulfills its own interest, the organization is better adapted to its local environment, natural cooperation is built on direct reciprocity, and demand and supply evolution provides a differential preservation of interrelations between suppliers and buyers. A two-stage newsvendor game illustrates its practical implication, which confirms the evolutionary approach is a legitimate alternative to the current systems integration approach for supply chain management.
Keywords: supply chain management; evolution; inventory management; newsvendor
Using VMI to Improve Supply Chain Performance of a Public Enterprise in Thailand
by Thananya Wasusri, Buntita Pongcheep
Abstract: Supply chain management is well recognized and implemented in private sectors, but the beneficial of supply chain management in public sector is limited shown in the literature. This paper presents a comprehensive supply chain simulation study for a real case of Thai public sector focusing on its material supply network. The supply network consists of four stages in inventory system: head office, regional warehouse, main warehouse and service warehouse. This study aims to propose three different strategies according to the combination of purchasing structure and Vendor Managed Inventory (VMI) with targeting to reduce lead time and cost. The Discrete event simulation (DES) is a powerful tool used to reveal the supply chain performances. The three strategies result in shorter lead time and cost reduction. The decentralized purchasing with VMI on each echelon to support continuous replenishment offers the best solution. The managerial implication is provided to enable the enterprise to improve the supply chain performance measures.
Keywords: Vendor Managed Inventory; Distribution; Purchasing; Public Procurement; Public sector; Supply Chain; Simulation
Assessing the logistics activities aspect of economic and social development
by Huseyin Avni ES, Coskun Hamzacebi, Seniye Umit Oktay Firat
Abstract: Logistics is concerned with the coordination and planning of products, services and information flow between the points of production and consumption. The logistics sector, contributes directly to production and consumption activities, has a critical importance for social and economic development. In this study, Turkeys logistics map was created in order to distribute the logistics burden in the cities which have intensive logistics activities and improve logistics ability in the cities which have poor logistics activities. Firstly, social and economic variables that affect the logistics operations of cities of Turkey were investigated. The identified variables were reduced to a single factor which is called logistics via factor analysis and the clustering analysis was performed by using the logistics factor. In clustering analysis, k-means method was used and the cities of Turkey clustered from strong to weak according to logistics activities. The obtained results were analyzed and interpreted.
Keywords: logistics; clustering; factor analysis; Turkey.
PLANNING THE DISTRIBUTION OF GOODS IN THE CONTEXT OF CITY LOGISTICS CONSIDERING SPLIT DELIVERIES WITH ACCESS AND TIME RESTRICTIONS
by Rodrigo Rosa, Renata Arantes, Henrique Astoures, Dahlen Silva
Abstract: Cities are getting bigger with more homes and companies which demands more goods to supply them. Furthermore, more vehicles are traveling in the cities which leads to an increase of greenhouse gas emissions, traffic jam and many other problems that damage the citizens quality of life. To make it better, local governments are imposing restrictions on the type of vehicles and the time that they can deliver goods in the city. Thus, to plan the distribution of goods in this restricted context, this paper proposes a mathematical model that incorporates the characteristics of split deliveries, heterogeneous fleet, access restrictions and time windows for planning the distribution of goods. Based on real data from an agricultural supply company that delivers goods to supermarkets, seven instances were elaborated and the results showed that the model can bring cost savings for the company and environmental benefits for the citizens.
Keywords: Split Delivery Vehicle Routing Problem, City Logistics, Greenhouse gas emissions, Access and Time Restriction.
The Inventory Optimisation Taking Into Account Time Value of Money And Order Payment Deferrals
by Gennadiy Brodetskiy
Abstract: In this paper is developed and presented an approach to inventory management EOQ-model optimisation taking into account the time value of money and deferrals available for the order cost payments. The research is performed for models with cost-effective supply chains when due to the specified deferral an order payment, storage and other business costs can be paid from revenue. These requirements / limitations require to establish the necessary and sufficient condition for single product and multiproduct models, where the condition provides an opportunity to pay required costs from revenue of the previous reorder interval. The corresponding estimation of the profitability of working capital of such models is given in this article. It can be used when optimising supply chains with the deferred payment of the order, and taking into account the TVM. Presented EOQ-formula modification for determining optimal parameters of inventory management strategy taking into account the mentioned features. It is also shown that taking the TVM into account for such models refers to the phenomenon of reducing the profitability of working capital.
Keywords: Inventory management; time value of money; order payment deferrals; economic order quantity; EOQ-models; single product models; multiproduct models; supply chain management; total costs; order payments from revenue.
Robust bi-objective cost-effective, multi-period, location-allocation organ transplant supply chain
by Seyed Mahdi Aghazadeh, Mohammad Mohammadi, Bahman Naderi
Abstract: This paper proposes a new multi-objective model for organ transplant supply chain under uncertainty conditions. Previous models have focused on time, location and allocations separately, and have not considered some important aspects in locating healthcare units. Because of the vital role of these parameters in decision making about locating organ transplant supply chain, this new model compensates for and covers this shortcoming. These significant parameters include: 1. Expected number of organs donors. 2. Coverage rate of other zones for the selected locations based on cold ischemia time for each organ. (Cold ischemia time is the maximum time each organ can bear outside the body. 3. Safety index based on earthquakes and other natural or unnatural events. The model consists of three objective functions: the first objective function reduces the costs of the active working centers. transportations and allocations of units and organs, and the second objective function considers the mentioned parameters too. These objective functions are likely to face conflicts based on the input data. Finally, some statistics-based experiments have been conducted on the problem under study, and it has been solved using GAMS optimization software (ver. 23.5).
Keywords: HealthCare management; Organ transplant supply chain; Location efficiency; Bi-objective MIP optimization
Towards a Cloud Computing in the service of Green Logistics
by Zineb Benotmane, Ghalem Belalem, Abdelkader Neki
Abstract: The development of cloud computing solutions for logistics offers new benefits to companies, such as access to resources on demand, elasticity and usage billing. In this paper, we propose a multi-agent system based on a Cloud Computing platform called SACL (System Agent Cloud Logistics) which aims to measure the economic, environmental and social performances of a logistic process and to help a company to make the right decision.
For achieving this goal, our proposed system integrates: Cloud Computing technology, web services techniques, multi-agent approach, and simulation model.As a scenario,weve chose the case of a virtual pharmaceuticalwholesaler, and weve formulated the problem for command preparation process.
The results show that our proposed systemhelps the decisionmaker to estimate the economic, environmental and social costs of a logistic process and to know the impact of a new strategic solution and its cost before retain it.
Keywords: Cloud Computing; Green Logistics; Multi Agent Approach; Simulation model; Economic Aspect; Ecological aspect; Social aspect; Logistics process.
Nobody Wants to Buy Sour Milk: Supply Chain Performance Measure Matters
by Wei Wei, Jwen Fai Low, Andrea Schiffauerova
Abstract: In the increasingly competitive manufacturing landscape, the key to thriving is in managing the supply chain. Supply chain performance measurement systems, which gauge the performance of a supply chain on different metrics, are indispensable tools for supply chain management. By introducing a weighted and industry-independent performance measure and incorporating it in a questionnaire distributed to manufacturing companies, we were able to compare supply chain performance between different categories of manufacturers. We identified management as the biggest impediment towards implementation of supply chain performance measures. The results also show that supply chains in light industry are flexible but members of each supply chain interact poorly. Heavy industry supply chains suffer from inflexibility but have good interactions between members within each supply chain. Despite international supply chains having many advantages over domestic supply chains, our survey respondents indicated that global supply chains perform better than local supply chains. And, supply chains which have members who are actively cooperating, whether in the form of a pact, partnership, or alliance, perform better than supply chains where such cooperation does not exist. Finally, our study found that the performance of supply chains with performance measurement systems in place trumps the performance of supply chains without them.
Keywords: Supply chain; supply chain management; supply chain performance measurement system; comparative analysis
The mediation role of Social Capital in Relationship Between Buyer-supplier relationship with Green Supply Chain Collaboration
by Seyed Saeed Mirhosseini, Adel Azar, Mohsen Zarakani, Marjan Hadidi Masouleh
Abstract: The main aim of this study is to understand how buyer-supplier relationship and social capital influence green supply chain collaboration in manufacturing companies. Also, the mediating role of social capital between buyer-supplier relationship and green supply chain collaboration was examined. Because of that a sample of 70 from logistic and middle levels managers were chosen for distributing questionnaires. Collected data were analyzed by Partial Least Square method of structural equation modeling. The results indicated that there are positive relationships among buyer-supplier relationship (asset specificity, transaction frequency and competitive environment) social capital and green supply chain collaboration. Also the mediating role of social capital confirmed. But two hypotheses which are related to relation volume uncertainty with social capital and green supply chain collaboration are rejected. These findings provide considerable insights to managers and marketers of green supply chains that seek to respond to a growing interest of environmental performance of supply chain.
Keywords: Green Supply Chain Collaboration, Social Capital, Buyer-Supplier Relationship, Transaction cost theory.
Perception of Logistics Service Provider Regarding Trade Facilitation For Cross Border Transportation: A Case Study of East-West Economic Corridor
by Nitipon Tansakul, Suthathip Suanmali, Veeris Ammarapala
Abstract: The aim of this research is to evaluate the trade facilitation on cross border trade along the East-West Economic Corridor route. This study employs two methods for evaluating the trade performance. First, the different influence factors and their effect on the trade are considered. The Analytic Hierarchy Process (AHP) is employed to measure the influencing weight of each factor. Expert opinions are obtained through interviews of leading logistic experts: entrepreneurs, academic researchers, and policy makers. Second, trade facilitation surveys are conducted. The interview technique and six-point Likert scale questionnaires were used to gather data from logistics providers and related firms who operate within the R-9 route. The results obtained from this investigation help in identifying appropriate factors and weights for the characteristics of the R-9 route, which can further be utilized to evaluate the trade facilitation in each of the four countries.
Keywords: Hierarchy Process (AHP), Cross Border Transportation, East-West Economic Corridor, Trade Facilitation
A Development of a Framework for Evaluation of Reverse Logistics Maturity Level
by Farida Pulansari, Suparno Suparno, Sri Gunani Partiwi
Abstract: Reverse Logistic (RL) and management of unused product, waste as well as limitation of natural resources are growing problems throughout the decade. The RL has been successfully implemented in some companies, however, no clear key performance indicator or parameter of a successful RL is provided. The paper proposes a framework for assessing the maturity level of the RL implementation. The framework was designed in order to provide the information as well as a clear key performance indicator that are easy to learn and be applied. The procedure of assessing the framework was to come to many companies to measure the level of RL implementation. Better integration among supply chain actors (manufacturer, recycled center, collection center, supplier, disposal center, and distribution center), government and customer can minimize the environmental problems. The finding shows that the maturity level in the implementation of RL for the Indonesian consumer electronics industries is at level 2 (Managed Level), especially in the local companies.
Keywords: Assessment; Framework; Maturity Level; Reverse Logistics; Consumers' Electronics Industries
A note on A new approach for solving intuitionistic fuzzy transportation problem of type-2
by Senthil Kumar
Abstract: In real-life decisions, usually we happen to suffer through different states of uncertainties. In order to counter these uncertainties, in this paper, the author formulated a transportation problem in which costs are triangular intuitionistic fuzzy numbers, supplies and demands are crisp numbers. In this paper, a simple method for solving type-2 intuitionistic fuzzy transportation problem (Type-2 IFTP) is proposed and optimal solution is obtained without using intuitionistic fuzzy modified distribution method and intuitionistic fuzzy zero point method. So, the proposed method gives the optimal solution directly. The solution procedure is illustrated with the help of three real life numerical examples. Defect of existing results proposed by Singh and Yadav (A new approach for solving intuitionistic fuzzy transportation problem of type-2, Annals of Operations Research (2014): 1-15.) is discussed. Validity of Pandians method (Realistic Method for Solving Fully Intuitionistic Fuzzy Transportation Problems, Applied Mathematical Sciences, 8 (113), 5633-5639.) is reviewed. Finally, the comparative study, results and discussion are given.
Keywords: Intuitionistic Fuzzy Set; Triangular Intuitionistic Fuzzy Number; Type-2 Intuitionistic Fuzzy Transportation Problem; Optimal Solution.
A Stochastic Programming Approach to solve a Coordinated Capacitated Stochastic Dynamic Demand Lot-Sizing Problem with Emergency Supplies
by Uladzimir Rubasheuski, Johan Oppen, David L. Woodruff
Abstract: We consider the coordinated capacitated lot-sizing problem (CCLSP) with stochastic non-stationary demand. Although the CCLSP with deterministic demand and the uncoordinated CLSP (UCLSP) with stochastic demand have been addressed in the literature, there is no published research on the CCLSP with stochastic demand. Motivated by the case of Stokke, we develope the formulation and solution method for a special case of the CCLSP. Our model is tested in the settings of stochastic and deterministic demand. The stochastic model out-performed the deterministic model with significantly lower total cost, leading to a reduction in inventory costs and to a slight increase in use of emergency supplies.
Keywords: Inventory management; Coordinated capacitated lot-sizing problem; Inventory Costs; Transportation Costs; Emergency Supplies; Stochastic programming; Stochastic dynamic problem; Scenario generation.
A combined approach integrating Gap Analysis, QFD and AHP for improving logistics service quality
by Anjali Awasthi
Abstract: Managing logistics service quality is vital to achieving higher levels of customer satisfaction and gaining productivity. In this paper, we address the problem of logistics service quality management considering multiple stakeholders point of view namely shippers, customers, municipal administrators, city residents, traffic managers etc. A hybrid approach based on Gap Analysis, QFD and AHP is proposed. The purpose of gap analysis is to identify service quality gaps based on customer expectations and perceptions. QFD is used to model technical requirements to fulfill identified service quality gaps. AHP is used to evaluate service quality improvement initiatives and recommend the best one(s) for implementation. A numerical application is provided. Sensitivity analysis is conducted to determine the influence of input parameters on stability of modeling results.rnThe strength of the proposed approach is that it takes into account multiple stakeholders point of view in determining service quality attributes. Besides, certain criteria that have become more relevant in modern times particularly those related to sustainability such as eco-friendliness, human resources, and technological soundness are also part of our study.rn
Keywords: Logistics service quality; Gap Analysis; Quality Function Deployment; AHP
Information Systems Road Map to Enhance Economic and Operational Reverse Logistics Performance
by Ankit Mahindroo, Harsh Vardhan Samalia, Piyush Verma
Abstract: Industry experts have realised the importance of implementing reverse logistics (RL) for gaining competitive advantage. Although, not prominent in all kinds of industrial domains, reverse logistics is slowly becoming the factor which can lead towards organizational competitive advantage. With organizations constantly looking for greater profit margins and better operational performances, one way through which it can be achieved is through investments in Information Systems (IS). This study, through a series of regression analysis, makes an effort to create a road map by analysing relationships between selected IS constructs and the corresponding economic and operational performance measures, individually as well as in combination. The findings of the study reveal that IS used for value creating activities and logistical operations play a much greater role in improving overall RL performance, while the impact of each of the constructs individually on the economic and operational performance has been elaborated in the discussion section.
Keywords: reverse logistics; information systems; supply chain; supply chain management; economic performance; operational performance; financial performance; transaction cost; partnership; value creation; system capability; regression analysis; multiple linear regression.
A collaborative inventory model for vendor-buyer system with stochastic demand, defective items and carbon emission cost
by Wakhid Ahmad Jauhari
Abstract: This paper develops a joint economic lot-sizing problem (JELP) involving of a vendor and a buyer under defective products. The vendors production process is assumed to be imperfect, hence the lot delivered to the buyer may contain a certain number of imperfect products with known probability density function. The carbon emissions are considered in the model and are calculated from both transportation and production activities. The model also considers a situation in which the vendor has an opportunity to adjust the value of production rate. The objective of the model is to simultaneously optimise the shipment size, number of deliveries, production rate and safety factor. A simple procedure is suggested for solving the model. Numerical examples are used to illustrate the application of the model.
Keywords: joint economic lot-sizing; defective products; carbon emission; production rate; stochastic demand.
Optimising the location of a hub port in Thailand for arrival of Dawei and Pakbara ports
by Sakaradhorn Boontaveeyuwat
Abstract: This paper considers a hub port selection problem for Thailand by evaluating the Dawei and Pakbara ports based on expected hub competition among other existing major ports in Southeast Asia that focus on servicing the local demands for container transport in Thailand. The infrastructure capability of ports in handling containers at berths is also analysed. The cargo supply and demand come from several ports in the world considered as the origin and destination points for 76 provinces in Thailand. A mixed integer programming model is developed to minimise the total system costs, taking into account vessel operating cost, port cost and inland logistics cost considered as three modes of transport: road, waterway-road and rail-road modes. In total, the model consists of 26,755 decision variables, 5 integer variables and 82,690 constraints. The results show that the two foreign ports (Port Klang and Singapore ports) are a better choice than the two new arrivals (Pakbara and Dawei ports) for serving the Thailand local demands and are close runners up to Laem Chabang port.
Keywords: hub port; cost minimisation; Dawei port; Pakbara port ; mixed integer programming ; p-hub median problem.
A production inventory model in vendor managed inventory system with deteriorating items and pricing in fuzzy environment
by Masoud Mohammadzadeh, Abolfazl Mirzazadeh
Abstract: In this paper, we develop a vendor managed inventory system for a supply chain with two levels. First level is one manufacturer and second level is several non-competing retailers. The manufacturer produces a deteriorating product from a deteriorating raw material. All deteriorating rates assumed as fuzzy numbers. The demands in retailers are price sensitive based on predefined function with fuzzy parameters. The manufacturer can produces product at a variable production rate that is one of the decision variables of our model. Other decision variables are retail price, the replenishment frequency of raw material, the replenishment cycle of the product that obtained by maximizing the total profit of the entire chain. Because of concavity of the profit functions, with a solution algorithm, the exact optimal solution was found. At the end, a numerical example is presented to illustrate the model performance with a sensitivity analysis. Finally, some conclusions and future research directions are proposed.
Keywords: Vendor managed inventory; Pricing; Production rate; Fuzzy deteriorating rate; Non-linear optimization.
Multi objective optimization of continuous review inventory system under mixture of lost sales and backorders within different constraints
by Marzieh Keshavarz, Seyed Hamid Reza Pasandideh
Abstract: This paper presents a continuous review stochastic inventory control system. The demand of each product assumed stochastic. In inventory models, it is common to assume that unsatisfied demand is backordered. We considered mixture of lost sales and backorders for shortages. We optimized inventory system with finding fraction of demand backordered. Also, we considered service level in model to improve customer satisfaction and compete better in retail environment. We considered two conflicting objectives: 1- minimising the total cost. 2- maximising the service level. The goal is to generate more diverse and better non-dominated solutions of reorder point, order size and fraction of demand backordered such that the total inventory cost is minimised and the service level is maximised. We considered constraints such as warehouse space, order quantity and restriction on available budget. Constraints are stochastic and follow Normal distribution. Two multi objective optimizer, multi objective particle swarm optimization (MOPSO) and non-dominated sorting genetic algorithm (NSGAII) are proposed to solve the problem. We compared the performance of two proposed algorithms with TOPSIS and statistical method. In this comparison, the optimum values of the NSGAII parameters were obtained using regression analysis.
Keywords: multi objective optimization; inventory; backorder; lost sale; continuous review policy.
A Delphi-Based Scenario Analysis of Turkish Logistics Industry for 2023
by İsmail Çağrı Özcan, Volkan Recai Çetin, Muhammed Bilge Kağan Albayrak
Abstract: This study attempts to forecast future scenarios of Turkish logistics industry for 2023 which is the year of 100th anniversary of the establishment of Republic of Turkey. The major findings of the two-round Delphi survey reveal that the panel experts expect; (1) new foreign logistics firms will enter Turkish logistics market where the competitive advantages of the global logistics firms over their Turkish competitors will increase and vertical integration and consolidation tendency will likely to rise, (2) Turkey will become an international logistics center thanks to its geographical advantage but political instabilities in Turkeys neighbor countries will continue to be a problem for goods transportation, (3) share of the state-owned enterprises will decrease in logistics industry but ambiguity in authorization process of relevant public agencies in logistics industry will maintain the situation of too many talking heads and (4) Turkey will improve its position in the Logistics Performance Index.
Keywords: Logistics industry; Delphi method; Turkey; scenario analysisrn.
Optimal Pricing and Inventory Decisions in a Centralised and De-centralised Two-Echelon Inventory System under Non-linear Price Dependent Demand
by Dega Nagaraju, Kalla Kirankumar, S. Narayanan
Abstract: In this paper, a two-echelon inventory system with a single-manufacturer and single-retailer is considered. Mathematical model for both centralized and decentralized supply chain (SC) is developed by incorporating setup/ordering cost, carrying cost and transportation cost of the respective entities of the chain. Replenishment quantity of the retailer and the number of shipments from manufacturer to retailer are considered as the decision variables in the model. The objective of the proposed model is to demonstrate the optimality of the annual net revenue of the SC and the decision variables under non-linear price-dependent demand. A numerical example is devised and the model is solved using the computer program written in MATLAB. Also, the sensitivity analysis is carried out to demonstrate the variation in the objective function with model parameters. From the findings of the research, it is concluded that with centralized decisions, percentage increase in the optimality of the annual net revenue of the SC decreases with manufacturers unit cost whereas increases with retailers unit cost.
Keywords: Two-echelon inventory system; Mathematical model; Transportation cost; Number of shipments; Non-linear price dependent demand;.
A proposed grey fuzzy multi-objective programming model in supplier selection: a case study in the automotive parts industry
by Saduollah Ebrahimnejad, Vahid Rahimi, Seyed Amirhossein Moosavi
Abstract: One of the research areas which has drawn authors attention is suppliers evaluation and quota allocation. In previous studies, suppliers have been assessed mostly by multi-objective decision making models when there are conflicting objectives. In this paper, the problem of supplier selection and quota allocation have been investigated based on conflicting criteria, where the accessible data are imprecise. One of the greatest achievements of the current study is selecting the superior suppliers from a large number in terms of conflicting objectives. Given that the data are defined as grey numbers, the grey multi-objective programming (MOP) model has been solved by goal programming (GP) method where aspiration levels are fuzzy. The proposed approach has been evaluated by studying a real case study in the automotive parts manufacturer. And finally, a sensitivity analysis has been carried out to figure out the effect of variation of criterias values on the supplier quotas.
Keywords: Supply Chain Management; Supplier Selection; Grey Fuzzy Goal Programming; Quota Allocation to Suppliers; Grey Programming; Automotive Part Industry.
Selecting and Scheduling Interrelated Projects: Application in Urban Road Network Investment
by Elham Shayanfar, Paul Schonfeld
Abstract: Decisions about the selection of projects, alternatives, investments, operating policies and their implementation schedules are major subjects in various fields including operations research, financial analysis, business management, engineering economy and transportation planning. In these various disciplines sufficiently good methods have been developed for planning and prioritizing projects when interrelations among those projects are negligible. However, methods for analyzing interrelated alternatives are still inadequate. We propose a combinatorial method for evaluating and scheduling interrelated road network projects. In particular, this paper demonstrates how a traffic assignment model can be combined effectively with a Genetic Algorithm (GA) in a multi-period analysis to select and schedule road network projects while capturing interactions among those projects. The goal is to determine which projects should be selected and when they should be funded in order to minimize the present value of total system cost over a planning horizon, subject to budget flow constraints.
Keywords: Project selection and scheduling; Genetic Algorithm; GA; Project interrelations; User equilibrium; Project evaluation; System optimization; Planning and prioritizing projects; Minimizing system cost algorithm testing; enumeration; interdependent benefits and costs.
-GRASP with bi-directional path relinking for the bi-objective orienteering problem
by Brahmin Aghezzaf, Hasnaa Rezki
Abstract: This paper presents a new approach to solve the bi-objective orienteering problem (BOOP). The BOOP is a multi-objective combinatorial optimization problem, considered as the bi-objective extension of the well-known orienteering problem (OP). The motivation of the multi-objective orienteering problem in general, stems from the problem of planning personalized tourist routes in a city, in which each point of interest provides different profits associated with different categories. The aim of this problem is to find routes, limited by a given travel cost restriction, that visit some points of interest and maximize the total collected of different profits. In order to generate a good approximation of the Pareto-optimal solutions, we develop a new metaheuristic method based on hybridization of λ-GRASP and a new variant of Path Relinking procedure that we have called bi-directional Path Relinking (BDPR).rnThe proposed approach is tested on benchmark instances and compared with some algorithms in the literature. Computational results show that the proposed method is well effective to provide a good approximation of the Pareto front for the bi-objective orienteering problem. rn
Keywords: Bi-objective orienteering problem; GRASP; Bi-directional Path Relinking; Hybridization; Pareto-optimal solutions.
Optimizing Replenishment Policy in an Integrated Supply Chain with Controllable Lead Time and Backorders-Lost Sales Mixture
by Marcello Braglia, Davide Castellano, Dongping Song
Abstract: This paper aims to optimize the inventory replenishment policy in an integrated supply chain consisting of a single supplier and a single buyer. The system under consideration has the features such as backorders-lost sales mixture, controllable lead time, stochastic demand, and stockout costs. The underlying problem has not been studied in the literature. We present a novel approach to formulate the optimization problem, which is able to satisfy the constraint on the number of admissible stockouts per time unit. To solve the optimization problem, we propose two algorithms: an exact algorithm and a heuristic algorithm. These two algorithms are developed based on some analytical properties that we established by analysing the cost function in relation to the decision variables. The heuristic algorithm employs an approximation technique based on an ad-hoc Taylor series expansion. Extensive numerical experiments are provided to demonstrate the effectiveness of the proposed algorithms.
Keywords: Integrated supply chain; replenishment policy; stochastic demand; controllable lead time; backorders; lost sales; joint economic lot size.
Green supply chain management in Indian automotive sector
by Balakrishnan AS, Jayshree Suresh
Abstract: The burden on automotive companies to embrace green processes has increased significantly in the recent years. A review of the existing literature has highlighted a need to understand how green supply chain management (GSCM) practices can contribute to improving company performance from environmental, economic and operational. This research aims to test the relationship between GSCM practices and performance for those companies adopted or planning to adopt GSCM in an emerging economy such as India. Outcome of the testing shows GSCM practices varies against companies performance. It implies that companies appear to have unsuccessful to understand the link between GSCM practices and performance.
Keywords: Green supply chain management (GSCM); Environment; Automotive; Practices; Performance; India.
Inventory and Production Planning for Component Remanufacturing in an Original Equipment Manufacturer-Closed Loop Supply Chain
by Sundararaman Malolan, Mathirajan M
Abstract: Original Equipment Manufacturers (OEMs) are moving to closed loop supply chain from the traditional supply chain by incorporating returns. In this study one such OEM who manufactures a single final product by assembling multiple-components is considered. The components required to assemble the final product are obtained either by manufacturing from raw materials and or remanufacturing from returns and or procured from external suppliers. The returns are the final products that are returned after use by the customer. The returns are obtained after paying a return acquisition price. This return acquisition price is a fixed price paid based on the utilization time and the condition of the return. The returns are dismantled into (a) components which can be remanufactured, and (b) components which cannot be remanufactured (meant for disposal). The manufacturing, remanufacturing and assembly operations are integrated as a closed loop supply chain system and can be performed by any OEM. It appears from the literature review that the OEM-Closed Loop Supply Chain (OEM-CLSC) system, where components are remanufactured by OEM themselves, has not been considered in any of the previous research literature. This study addresses this research gap by considering a single-product multi-component remanufacturing of an OEM-CLSC problem. For addressing the research problem considered, a mathematical model is proposed to identify the optimal inventories (raw materials, components, products and returns) and the production plan (products and components). Finally, an empirical analysis is carried out to determine the breakeven capacity for remanufacturing operation by suitably introducing a breakeven analysis model.
Keywords: Closed loop supply chain; Remanufacturing; Return acquisition price; Production planning and Inventory management; Breakeven analysis.
Re-Examining Supply Chain Integration: A Resource Dependency Theory Perspective
by Abirami Radhakrishnan, Dessa David, Sri Sridharan, John Stephen Davis
Abstract: Many researchers and practitioners recognize Supply Chain Integration as a critical success factor in supply chain management. This study develops an improved measurement model for this factor grounded in resource dependency theory and employing principles from multiple fields such as supply chain management, information systems management, and inter-organizational relationship management. This re-conceptualized model is validated by a large scale empirical study involving 154 business units. Confirmatory Factor Analysis helps assess the construct validity of the new measurement model.
Keywords: Supply Chain Integration; Supply Chain Management; Logistics Management; Confirmatory Factor Analysis; Empirical Research; Construct Validity.
Postponement: bibliometric analysis and systematic review of the literature
by Karine Araujo Ferreira, Larissa Almeida Flavio, Lasara Fabrícia Rodrigues
Abstract: Postponement, which refers to the delay of the final configuration and/or forward movement of goods until the consumer requests are received, is an important strategy to increase agility and flexibility of production and logistics systems. This study aims to carry out a bibliometric analysis and a systematic review of relevant literature on postponement strategy. Bibliometrics was applied as a quantitative technique using the Web of Science database and the CiteSpace software. As for the qualitative analysis, a systematic review of selected publications was carried out. In the first search in the Web of Science, 1670 publications were identified, and after successive refinements, a dataset of 53 articles was selected. The bibliometric analysis allowed the selection of journals, authors, and prominent publications in the area, which enabled the construction of citation and co-citation maps. The systematic review allowed the identification of topics, main contributions, and methods used in the selected articles.
Keywords: postponement; mass customization; supply chain management; bibliometric analysis; systematic review.
Role of Third-Party Companies in a Sustainable Supply Chain Design
by Mohammad Najjartabar Bisheh, Mojgan Delavari, Behnam Malmir
Abstract: Uncertainties and constraints, such as capacity, add to complexity of supply chain network design, while the role of third-party companies in global supply chain networks is increasing. The present work considered the role of third-party companies in supply chain design in order to increase understanding of the uncertainty of demand, capacity constraints, and backorder shortages. A nonlinear mixed-integer model was introduced to optimize a closed-loop supply chain in an international network. Although exact methods are useful for small size instances, the mixed-integer model was solved by two meta-heuristic algorithms in real-size problems. The ANOVA test was applied for small-sized and large-sized problems in order to check the efficiency of meta-heuristics. Results showed that the Imperialist Competitive Algorithm and Particle Swarm Optimization gained reliable and efficient solutions. A sensitivity analysis of important inventory parameters such as holding cost and demand was also conducted.
Keywords: Third-Party Companies; closed-Loop Supply Chain; Metaheuristic; ANOVA.
ARTIFICIAL IMMUNE SYSTEM AND PARTICLE SWARM OPTIMIZATION ALGORITHMS FOR AN INTEGRATED PRODUCTION AND DISTRIBUTION SCHEDULING PROBLEM
by S. Porselvi, A.N. Balaji, N. Jawahar
Abstract: This paper investigates an integrated production and distribution scheduling problem in a make to order supply chain. In the production part, manufacturing lots of different kinds of same product are produced on machines in a flow shop environment. All the products have a deterministic processing time and a sequence dependent set up time on each machine. In the distribution part, delivering of manufacturing lots to different customers are made by distribution centers having several modes of shipping. A mathematical model is developed and two algorithms i.e. Artificial Immune System AIS and Particle Swarm Optimization PSO are proposed and illustrated. The proposed methodologies are evaluated for its solution quality by comparing with solutions obtained by CPLEX and CP solver. The comparison reveals that AIS algorithm generates better solution than PSO algorithm and CP and is capable of providing solution either equal or closer to Lower bound value provided by CPLEX.
Keywords: Integrated production and distribution scheduling; Supply Chain; Artificial Immune System Algorithm; Particle Swarm Optimization Algorithm; CPLEX; CP.
Delivery of Chinese Mitten Crab during Peak Season: Logistics Dilemma for Micro-E-businesses
by Junmin Yi, Huizhen You
Abstract: The enjoyment of Chinese mitten crab from Yangcheng Lake during mid-autumn has been cherished by wealthy people in the Yangtze Delta for a long time. With this delicacy tradition widespread throughout China, delivering these live crabs at the right time to different destinations has become a challenge in the current information-driven market. Such delivery poses remarkable logistics requirements for emerging micro-E-businesses. In this study, the packaging and shipping processes completed by farmers were examined. The logistics service providers operations were analysed in terms of parcel entry and sorting, routing and transportation, and last-mile delivery. Finally, logistics capacity versus performance dilemma was identified. Based on the problems identified in the investigation, appropriate strategies are suggested for the logistics and supply-chain system.
Keywords: perishable food; delivery; logistics service provider; E-business; operations; case study.
Buyer-Supplier Relationship and Trust theory in Innovative Green Procurement Practices
by Surajit Bag
Abstract: In the eighties buyers used to maintain an arms-length relationship with suppliers. However, in the early nineties a dramatic change has occurred and buyers started treating close suppliers as business partners. There are various published articles covering important dimensions of buyer-supplier relationships. However, the current paper uncovers a new procurement method that leads to sustainability and add value to the internal and external customers. Thus, this paper aims to examine how buyer-supplier relationship management can contribute to innovative green procurement performance through the improvement of trust in the South African context.
The hypotheses of this study were tested with the data from 50 South African manufacturing companies. Data collection involved convenience sampling and survey methodology in a research setting using procurement managers as subjects. The construct measures were based on existing measures and previous research studies. The reliability and validity of items were tested using exploratory factor analysis and an overall measurement model was assessed with mediating regression analysis using SPSS 22.0 version.
The paper finds that trust plays a critical and mediating role in the relationship between buyer-supplier relationship and innovative green procurement performance.
The present study is unique in terms of scope and its contribution to both buyer-supplier relationship theory and practice.
Keywords: Buyer-supplier relationship; Trust; Innovation; Green Procurement performance.
Types of Logistics Outsourcing and Related Impact on the 3PL Buying Process: Empirical Evidence
by Gino Marchet, Marco Melacini, Sara Perotti, Chiara Sassi
Abstract: Although logistics outsourcing is recognised as a competitive parameter, so far there has been no adequate research on the types of logistics outsourcing and their implications in terms of the Third Party Logistics (3PL) buying process. This paper fills the gap by focussing on two key issues, i.e. required competitive advantages and 3PL selection criteria. The aim is to provide a comprehensive investigation of such factors and study if and how they vary depending on the outsourcing type. After a literature review and a focus group, a survey of 482 logistics managers was conducted, and a statistical analysis of results was performed. The findings are of interest to both shippers and 3PL providers because they help the former understand which outsourcing type is the most suitable to achieve the desired competitive advantages, and the latter to evaluate the key factors to focus on depending on the required type of outsourcing.
Keywords: Logistics Outsourcing; Third-Party Logistics (3PL) Providers; 3PL Buying Process; Competitive Advantages; 3PL Selection Criteria.
Quantitative Assessment of Mutual Relationship of Issues Experienced in Greening Supply Chain using ISM-Fuzzy MICMAC Approach
by Deepak Kumar, Siddharth Jain, Mohit Tyagi, Pradeep Kumar
Abstract: The concept of green supply chain management (GSCM) has emerged as one of the interesting topics among the researchers and practitioners as the issues of environmental degradation due to the negligence of the manufacturing firms are increasing in news and media. This not only affects the reputation of the firm but also makes the affected area unfit for livelihood. Thus the task of integrating green practices has emerged to be the biggest challenge for managers of these organizations in recent years. The present research work deals with the identification of the issues, which act as major barriers in greening supply chain. On the basis of literature review and discussion with the field experts, the eleven green supply chain issues were identified and analyzed by using interpretive structural modeling (ISM). To visualize the driving and dependency nature of the identified issues, ISM model has been developed. The developed ISM model would help to understand the direct relationship among the considered issues. Further, to establish the direct and indirect relationship of one issue with respect to each other issue, fuzzy MICMAC has been used. The outcomes of this analysis may help the managers to build a path in order to improve the GSCM system of an organization in respect of maximum economic output with minimum environmental impact.
Keywords: Green supply chain management (GSCM); Interpretive Structural Modeling (ISM); Structural self-interaction matrix (SSIM); Fuzzy MICMAC; Green Issues.
Solving inventory lot-sizing with supplier selection under alternative quantity discounts and vehicle capacity
by Thanakorn Naenna, Chirawat Woarawichai
Abstract: In this paper, we presents a multi-product and multi-period inventory lot-sizing problem with supplier selection under alternative quantity discounts and vehicle capacity. Each supplier offers quantity discounts (all-units and incremental discounts) to motivate the buyer for purchasing large quantity. In addition, we consider that the capacity each vehicle of the supplier transport the products to the decision maker (buyer). The objectives are to minimize total costs, where the costs include purchase cost of the products, ordering cost for the suppliers, transportation cost for the suppliers and holding cost of the remaining inventory in each period. The problem is formulated as a mixed integer linear programming (MILP) model. Finally, a numerical example is provided to illustrate the solution procedure. The MILP model can provide a satisfactory solution with a very short elapsed runtime. The results, the buyer needs to determine what products to order in what quantities with which suppliers in which periods, in order to satisfy overall demand.
Keywords: inventory lot-sizing; supplier selection; quantity discounts; vehicle capacity; multi-product.
Improving Supply Chain Risk Management Can additional data help?
by Luca Urciuoli, Juha Hintsa
Abstract: The recent large number of catastrophic events, such as terrorist attacks, natural disasters and pandemics, has drawn attention to the vulnerability of supply chains and the capability of IT system to monitor, predict and counteract adverse events. Experts agree that visibility and information sharing are fundamental tools to enhance the management of supply chain risks. Hence, by means of field studies conducted with seven companies, this study aims to shed more light upon how information sharing can improve supply chain risk management. As a result, the analysed companies showed great differences in their wishes for how to develop information sharing in the supply chain. Some respondents had clear visions for sophisticated, automated systems, whereas others expressed no wishes at all.
Keywords: Supply chain risk management; Information systems; information and communication technology; information exchange.
An Integrated Production-Distribution Planning of Dairy Industry- A Case Study
by Dibyajyoti Ghosh, Sandeep Mondal
Abstract: In dairy, where the product shelf life is too short, integrated production and distribution (P-D) planning is one of the important decision making area. This paper basically discusses one such P-D planning of an Indian milk industry. A three-echelon supply chain model is developed including suppliers, plant and retailers. Fluid milk products and milk made products are the two product families that are produced by the plant, where several important issues are considered with P-D planning like, deterioration rate of raw milk and final products, cost related issues of raw milk, transportation, collection, production, inventory, set up, and time related issues in late or early delivery of the final products to retailers. This model, in fact includes both production scheduling and distribution scheduling. A Mixed Integer Linear Programming (MILP) model is used to formulate the above situation to maximize the overall profit contribution of the business. The MILP is solved by using OPL language in Cplex, and a comparison is made with the current business situation and the improved condition through sensitivity analysis of the collection; production and distribution parameters.
Keywords: production-distribution planning; dairy industry; mixed integer linear programming; scheduling.
AN INTEGRATED MODEL OF PRODUCTION AND INVENTORY CYCLES OF NEW AND REUSABLE BOTTLING PACKAGES IN A CLOSED SUPPLY CHAIN
by Jonrinaldi Jonrinaldi, Taufiq Rahman, David Z. Zhang
Abstract: This paper proposes a model and solution for integrated production and inventory of new and reusable bottling packages. The inventory which didnt match the production needs is caused by the difference of production policy and the reverse logistics policy from distribution center. In addition, this problem is also influenced by cleanliness level of the bottles and the reject bottles during transportation. The solution procedures of this model use algorithm method and simultaneous approach (using software LINGO 14.0). From the calculation, this model obtains a valid result. The company can reduce the inventory cost about 8.88% using enumeration approach and 8.84% using simultaneous approach. Also, this model isnt sensitive in terms of changes of parameter to optimum solution.
Keywords: reverse logistics; integrated inventory model; bottling packages; inventory cost; closed supply chain.
Modelling for performance measurement of Bus Rapid Transit systems in Brazil
by Alvaro Neuenfeldt Junior, Julio Cezar Siluk, Marlon Soliman, Sabine De Paris
Abstract: Urban transit has a significant role in the recent social, economic and cultural society evolution, and it is one of the activities of greatest importance and concern in relation to urban administration and planning, since the issue involves more than half the worlds population. Considering the troubling situation of urban transportation, various activities have been planned to improve the conditions of urban mobility for Bus Rapid Transit (BRT) systems. The responsible for these systems need tools capable of proactively indicate the operational conditions. The aim of this study is to propose a model for measuring the performance of BRT transportation in Brazil that assists administrators in the efficient management of the system, by using concepts that can indicate the competitiveness level in the sector. The instrument was applied to analyse the situation of twelve Brazilian cities with more than one million inhabitants that have BRT systems. It was found that the city of Curitiba has the system with the best installed conditions in the country, and whose evaluation was considered Satisfactory, followed by Rio de Janeiro, Recife and S
Keywords: Logistics; Bus Rapid Transit (BRT); Performance measurement; Analytic Hierarchy Process (AHP).
Assessment of Criteria for the Selection of Third Party Logistics Provider: A Case from India
by Kaliyan Mathiyazhagan, Abhishek Bhalotia
Abstract: In todays business world, it is very difficult for an industry any to be competitive without working in close collaboration with external partners. Third party logistics provider (TLP) is an important partner to provide the proper logistic service. Selection of proper logistics suppliers endeavours and enhances the intensity of the hiring organisation. To select the appropriate TLP is a tough task for manager based on the criteria. Evaluating the criteria for the selection of TLP is an essential task for industries. This paper sensibly assesses the selection criteria and determines the weight of each indicator using Analytic Hierarchy Process (AHP). This study was focused on 43 different industries across India as the survey object, and every endeavour was given two questionnaires. A variable cost criterion is acting as an important criterion for the selection of TLP.
Keywords: Analytic hierarchy process; third-party logistics providers (TLP); evaluation criteria for 3PL; sustainable criteria in selection for TLP.
Buyback contract in a risk-averse supply chain with a return policy and price dependent demand
by Truong Ton Hien Duc, Nguyen Thang Loi, Jirachai Buddhakulsomsiri
Abstract: This paper examines a 2-stage supply chain where a retailer offers a return policy with partial refund to end customers, and a manufacturer offers a buyback contract for all unsold and returned items to the retailer to share the risk. Customer demand is stochastic and price dependent. Key performance measure is the utility of profit, a function of the mean and variance of profit. Supply chain members are risk averse. Optimal buyback price, wholesale price, and retailers order quantity are determined for the supply chain under coordination. A computational study is conducted to investigate the impacts of the members risk attitudes, refund amount, and retail price on the optimal decisions. Further analysis shows break-even points among utility values at different retail prices as the risk attitude parameters and refund amount change. These break-even points provide a guideline for the retailers to adjust the price to maximize the utility of profit.
Keywords: Customer returns; Supply chain coordination; Buyback contract; Price dependent demand; Risk-averse; Utility function.
A systematic literature review on barriers in green supply chain management
by Anjali Awasthi
Abstract: Green supply chain management has emerged as a trending topic of discussion for organizations thriving for enhanced competitive advantages, increased customer satisfaction, improved brand image, and of course minimum adverse impacts on the environment. The primary objective of this research is to perform a systematic literature review on the green supply chain barriers. Six different categories of classification are proposed to analyze the barriers namely Multiple Ms (8 Ms), Supply Chain Processes (Design, Purchasing, Production, Testing & Inspection, Packaging, Transportation, Warehousing, After Sales Service, and Recycling), Stakeholders (Employees, Customers, Suppliers, Government/Regulatory, and Non-Government Organizations), Sustainability Areas (Societal, Economic, Environmental, Technical), Organizational Hierarchy (Top Management/Executive Level, Middle Management/Departmental Level, Worker/Supervisory Level) and Others (Psychological, Technological, Knowledge, and Strategical). Classification of barriers using the proposed categories will assist decision makers in prioritizing actions and channeling resources in the right direction for achieving sustainability objectives for green supply chain management.
Keywords: Green supply chain management; Barriers; Classification framework; Systematic Literature review.
Palpable Linkage of Supply Chain Performance to Hard and Soft Infrastructure Marriage: The Case of SADC Road Entry Point Management Systems
by Felistas Zimano, Fayth Ruffin
Abstract: The supply of goods follows a chain with constituent parts, and the systems performance hinges on each constituent parts performance. In international supply chain and trade facilitation, one critical component is shipping of goods across borders. Border delays are inimical to supply chain efficiency. Modernising information communication technology is a widely hailed solution to easing this problem. In this paper, the importance of marrying hard and soft infrastructure for optimum efficiency is buttressed. This is based on empirical evidence from surveys involving 345 participants on four road entry points to Zimbabwes territorial borders. Participants are truck drivers and small and medium entrepreneurs. Findings trace the perpetuation of delays to failure to tie together hard and soft infrastructure components of entry point management systems. This consequently disturbs the supply chain of goods in the Southern African Development Community. Recommendations are made on how road entry point management systems can be improved, in order to enhance regional integration.
Keywords: Regional Integration; International Trade; Supply Chain; Transactional Costs; Trade Facilitation; SMEs.
A bi-objective green location-routing model and solving problem using a hybrid metaheuristic algorithm
by Fatemeh Faraji, Behrouz Afshar-Nadjafi
Abstract: In the field of operations research, Vehicle Routing Problems (VRP) has a great deal of importance because of its applications in transportation of goods and services. Until now many studies have been done about VRP, but there are few studies which have considered environmental perspective towards the problem. Besides, most of the bygone studies usually have considered only one objective which is minimization of total travelling cost. In this paper, we try to tackle some flaws of the previous works in the proposed models for green routing problems by considering multiple depots, constraints of hard and soft time windows, heterogeneous vehicles, multiple periods and products. Since the aforementioned problem is considered to be NP-hard, metaheuristic algorithms are needed for solving it. Therefore, to tackle NP-hardness of the proposed model a combined algorithm of Genetics algorithms (GA) and Simulated Annealing (SA) algorithms is proposed. Finally, for demonstrating the efficiency of the proposed algorithm, the solutions provided by the algorithm is compared to the solutions obtained from exact solving method in Gams Software. The results demonstrate the efficiency of the proposed method.
Keywords: Green vehicle routing problem; time windows; heterogeneous fleet; metaheuristic algorithms.
A Rich Heterogeneous Fleet Vehicle Routing Problem with Flexible Time Windows: A Case Study of Dairy Supply Chain
by Mehdi Firouzi, Javid Jouzdani, Hadi Shirouyehzad, Mohammad Mahdi Paydar
Abstract: Routing is a particularly important concept of cargo transport and has always enticed the interest of researchers and decision makers from different industries. The rich vehicle routing problem considers more realistic features of the real-world problems than the conventional problem. This article aims at solving a vehicle routing problem with heterogeneous fleet and flexible hard and soft time windows where flexible time windows allow for early and tardy deliveries in a given tolerance interval considering earliness and tardiness penalties through defining the earliness and tardiness as decision variables. In this paper, the proposed mathematical programming model is verified through several numerical examples using GAMS software. In order to demonstrate the applicability of the model, a real-world case study is provided. The results show the high potential of the proposed model for real-life application. Specifically, by applying the results of the case study, it is a possible to obtain a 156,000 USD annual cost reduction which is a significant save of resources.
Keywords: Heterogeneous Fleet; Flexible Time Window; Mathematical Programming; Rich Vehicle Routing.
Automated Transportation Systems subject to Interruptions in Production and Intralogistics A Survey and Evaluation
by Ireneus Wior, Stefan Jerenz, Alexander Fay
Abstract: To increase efficiency and productivity of production and intralogistic facilities, automated transportation systems are widely used nowadays. This paper examines effects of interruptions in different transportation systems on the performance of production and intralogistic facilities by evaluating current literature with a focus on simulation-based studies. Our first contribution is a new categorization of conveyor-based and vehicle-based transportation systems. This categorization does not follow a technological differentiation but focuses on the abilities of the transportation system categories to deal with transportation system interruptions. Thereafter, current literature in the domains of Manufacturing Systems, Semiconductor Facilities, General Intralogistics (e.g. warehouses), and Container Terminals is surveyed with respect to this categorization. This survey is our second contribution. Finally, having surveyed different domains, the strengths and weaknesses of different transportation system categories are extracted from the literature and summarized. That summary is our final contribution and intended as guideline and support for engineers planning transportation systems and as a contribution to the research community which aims at making transportation systems more robust to disturbances.
Keywords: automated transportation systems; automated guided vehicle; performance analysis; warehousing systems; container terminals; manufacturing systems; semiconductor manufacture.
Impact of Trade Credit on Inventory models for Weibull distribution Deteriorating Items with Partial Backlogging in Two Warehouse Environment
by Chandra K. Jaggi, Sunil Tiwari, Mamta Gupta
Abstract: In today's business environment, items exhibit different decay patterns in terms of deterioration rate depending upon their type and the storage space. Weibull distribution is a versatile distribution which can be used to model all three stages of the bathtub curve. It can take characteristics of other type of distribution and can be modeled for either increasing or decreasing rate of deterioration, according to the choice of the parameters. In developing countries, both the supplier and the retailer are benefitting from the trade credit policies. For supplier it attracts new buyers as the delay period is taken as price reduction by the retailers. Whereas retailers earn interest on the accumulated revenues as the retailer can delay the payment until the end of the credit period. In addition, to survive in today's volatile market retailer is bound to order large quantity and therefore needs an additional warehouse to store the items. Partial backlogging is another more realistic approach in a fair competitive market since customers experiencing shortages respond variably depending upon market environment. This study incorporates the above mentioned concepts to study the influence of trade credit on two warehouse inventory model with Weibull distribution deteriorating items and partially backlogged shortages. Several numerical examples are provided to illustrate the behaviour of the model and highlight some managerial insights.
Keywords: Inventory; Weibull Distribution; Partial Backlogging; Trade Credit; Two-Warehouse.
Corporate Social Responsibility in Supply Chain Management a new model approach.
by Marek Michalski, Jose Luis Montes Botella
Abstract: Corporate Social Responsibility (CSR) remains a widely acknowledged business philosophy. However, there are situations when socially responsible activities are incorporated without due attention to their consequences on business operations. We suggest that it is very important to pursue other ways, such as how to manage the outsourcing in the process, and what really is the impact of CSR. According to this, a framework CSR in the supply chain must not be considered only as an expense on the strategic level; rather it should be integrated into the companys operations core business activities. On the one hand, participation of Non-Governmental Organizations (NGOs) in supply chains should be clearly posed as a dilemma. On the other hand, due to their experience and knowledge of market games, NGOs operating within supply chains could establish a new focus around how to use the opportunities a business develops in the wake of CSR demands. In particular, we suggest that there exists the need for encouraging the debate on the particular implications of CSR realized by NGOs in SCM process.
Keywords: SCM; CSR; NGO.
Analysis of Maiden Modal Shift in Coal Transportation Supply Chain using SAP-LAP Technique
by Pradeep Kumar, Abid Haleem, Furqan Kamar, Urfi Khan
Abstract: This paper presents a case study in a SAP-LAP format in respect of a maiden modal shift logistic project in India. The purpose of this paper is to show as to modal shift from railways to inland water transportation led to improvement in supply chain qualitatively and quantitatively (cost wise). SAP-LAP framework has been applied and major actors instrumental in the modal shift are briefly taken up. It is a real life project initiated and piloted by Government of India through Inland Waterways Authority of India (IWAI). This paper helps to understand the project for implementing IWT by modelling its enablers using Interpretive Structural modelling (ISM) technique and analysing various issues using SAP-LAP framework in order to improve the economics of supply chain. Structured modelling has helped understanding of the critical enablers. Based upon the inputs from experts, major actors suggested a different set of incentives. A concessional user charge for the use of fairway and cargo assurances as opposed to cash subsidy approach was the game changer. It provides a good model for the improvement of economics of supply chain.
Keywords: Case study; Inland Waterways Authority of India (IWAI); Inland Water Transport (IWT); SAP-LAP; Modal shift logistic project of India; Multimodal transport; Interpretive Structural Modelling.
Cost-Benefit Sharing in Healthcare Supply Chain Collaboration
by Sardar M. N. Islam
Abstract: This paper proposes a framework for cost-benefit sharing in healthcare supply chain collaborations. Collaboration in a supply chain can lead to cost reductions, risk management, and performance improvements. The keys to a successful collaboration are that the costs are taken from the entire system, and mutual benefits provided for all parties. The three following processes are investigated by our literature review and interviews with experts. Firstly, the cost and benefit parameters are defined as coordinate costs and benefits by a cost-benefit analysis. Secondly, the cost-benefit sharing characteristics are classified as two-echelon, three-echelon, and multi-echelon. Thirdly, the collaboration levels are categorized into four levels: Data sharing, information sharing, knowledge sharing, and cost-benefit sharing. Consequently, the cost-benefit sharing scenarios are presented.
Keywords: Cost-benefit sharing; healthcare supply chain; collaboration.
Optimal selection of modular products in reconfigurable manufacturing systems using Analytic Hierarchy Process
by Kamal Kumar Mittal, Pramod Jain, Dinesh Kumar
Abstract: Reconfigurable manufacturing systems (RMS) are considered as a major resource of providing variable production capacities and capabilities by different manufacturing companies. To fulfill the market requirement variety of a modular products, manufactured in a Reconfigurable Manufacturing System. A methodology for optimal selection of modular products in reconfigurable manufacturing systems using Analytic Hierarchy Process (AHP) is proposed. The Analytic Hierarchy Process is a theory of measurement through pair-wise comparisons and relies on the decisions of experts to obtain priority scales. The comparisons are made using a scale of absolute judgments that shows, how much more, one component better than another with respect to a given attribute. AHP is also helpful in taking decision when both qualitative and quantitative attributes are in a system. A case study is given to understand the applicability of the proposed methodology on a given system.
Keywords: Reconfigurable manufacturing system (RMS); Analytic Hierarchy Process (AHP); Reliability; modular products; modularity; reconfigurable machine tool (RMT).
A fuzzy Inventory model for deteriorating items with stock dependent demand rate
by Susanta Kumar Indrajitsingha, Padmanava Samanta, Umakanta Misra
Abstract: The present paper proposes a fuzzy EOQ model for deteriorating items with stock dependent demand rate. As the demand, holding cost, deterioration cost and deterioration rate are uncertain in nature, theses are carried by triangular fuzzy numbers. Graded Mean Representation, Signed Distance Method and Centroid Method are used to defuzzify the total cost function. The results obtained by these methods are compared with the help of a numerical example. Sensitivity analysis is also carried out to explore the effect of changes in the values of the system parameters.
Keywords: InventoryModel; Triangular Fuzzy Number; Graded Mean Representation Method; Signed Distance Method; Centroid Method; Defuzzification.
TURKEYS LOGISTICS IMPACT COMPARED TO THE NETHERLANDS, GERMANY AND BELGIUM
by Caglar Tabak
Abstract: Developed countries around the world give great importance to the logistics sector. Most of the countries have completed the transformation from the transportation to the logistic sector. Therefore, in order to achieve an idea about countries' logistics infrastructures, the World Bank has started publishing the Logistics Performance Index every two years since 2007. The most current publication was distributed in 2016. In addition to providing information regarding the logistics sector of the countries, this index also provides investment information and opportunities of the countries. When determining the countrys ranking, the index considers six key criteria (customs, follow-up and monitoring, logistic competition, timing, infrastructure and logistic competition).
In the study, first of all, Spearman's Rank Correlation method was used to determine which of the six main criteria published by World Bank is the most influential. Later on in this paper, the ports considered as Turkey's logistics areas were compared to the logistics system of the Netherlands, Belgium, and Germany where they conducted on-site surveys. Countries selected for comparison have the best logistics areas in Europe and are among the first countries in the Logistics Performance Index published in 2014. The existing Turkish ports have been compared with these countries and efforts have been made to identify the gaps of Turkey in the logistics sector and suggestions and recommendations have been made.
Keywords: Logistics; Spearman Rank Correlation Test; Logistics Performance Index; Communication; Cost of Logistics; Combined Transport; Logistics Legislation.
IMPACT STUDY OF SUPPLY CHAIN PRACTICES ON ORGANIZATIONAL PERFORMANCE FOR INDIAN CHEMICAL INDUSTRIES
by Shrikant Gorane
Abstract: Supply Chain Practices (SCPs) are no longer merely an option but rather an essential requirement for almost every organization if they have to compete successfully. The research aims to gain an insight into the SCPs being practiced and to find the practices which are essential to withstand the pressure of the competitive environment for a Chemical Industry. This research focused on finding different SCPs being practiced in context to Indian Industries. The different SCPs are being found by the extensive literature review. The framework was developed and relationship amongst these SCPs and Organizational Performance measures, namely, Operational Performance, Customer Satisfaction and Financial Performance are established for the Indian Chemical Industries. The developed framework was then tested empirically using data collected from respondents to a survey questionnaire. Structural Equation Modelling (SEM) was used to test the hypothesized relationships. The finding suggests that a successful SCPs implementation not only improves the operational performance, but also enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction.
Keywords: Supply chain management (SCM), Supply Chain Practices, Framework, Structural Equation Modeling, India