International Journal of Logistics Systems and Management (128 papers in press)
TURKEYS LOGISTICS IMPACT COMPARED TO THE NETHERLANDS, GERMANY AND BELGIUM
by Caglar Tabak, Kürşat Yildiz
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.
Third-Party logistics Continuous Improvement through Integrated Fleet Management: The Case of a Transport Company
by Andreia Rodrigues, Carina Pimentel, João Matias
Abstract: In the transport sector, there is a gap that arises in managing fleets with vehicles of different brands, making it ineffective to choose the use of telematics system that each brand offers. This article presents a solution based on a system that uses a single service aggregating all fleet vehicles, irrespective of brand, and allowing their control at any time. Thus, it results in improved efficiency on the routes based on greater consistency of data as similar driving data are obtained for all vehicles. This article uses a case study that shows it is possible to reduce travelling costs, allowing the generation of greater quality services and hence improving customer satisfaction.
Keywords: Fleet Management; Continuous Improvement; Telematics; Route Planning; Road Freight Transportation; Integrated Fleet Management System; Freight Intelligent Transportation Systems.
The impact of pricing, lead time and capacity policies in a two echelon supply chain
by Arash Apornak
Abstract: Lead-time, price and capacity are common strategies used in supply chains facing uncertain or variable demand. Each provides a mechanism to absorb the uncertainty. In some supply chains, products must be produced before demand is realized. This typically cause in situations where production takes a long time and the selling period is short, fashion goods for instance, In this paper we assume a two echelon supply chain consisting of a supplier and a retailer facing price and lead time sensitive demand. The decision process is modeled by Nash equilibrium and Stackelberg game, the equilibrium strategy of these two players is obtained by investigation the impact of variable decisions on the players profit then compare the performance of the corresponding chain and capacity decision according to historical data as a benchmark, the results illustrated that the profit of supplier and retailer is more in Nash equilibrium in compared with Stackelberg game.
Keywords: Pricing; Lead time; Capacity; Stackelberg game; Nash equilibrium; two echelon Supply chain.
A bibliometric analysis of scientific production in Lean Supply
by Kellen Dayelle Endler, Cassius Tadeu Scarpin, Maria Teresinha Arns Steiner
Abstract: A Lean Supply Chain arrangement should provide a flow of goods, services and technology from the supplier of raw materials to the customer without waste. Lean Supply is an increasingly visible area not only at the theoretical level, but also in terms of practical application in companies offering products or services. Thus, scientific progress in this field of study is fundamentally derived from the knowledge available about it, which is the result of investigations and interactions by researchers over time. The main objective of this study, therefore, is to conduct a quantitative analysis of scientific production on Lean Supply between 1992 and 2016. The work was carried out with a methodical review of the literature, relying on bibliometric techniques, by consulting the ISI Web bases of Knowledge and Scopus, and their treatment by Bibexcel and Pajek softwares. For the research, the term "Lean Supply" was used as a key expression, generating a sample of 211 published articles. Descriptive statistical results were presented, identifying the authors, articles and journals most frequently referenced by scholars worldwide. At the end of the study, recent papers of the sample were classified and analysed based on research methods and industry sectors.
Keywords: Lean Supply; Lean; Supply Chain Management; Bibliometric Analysis.
Supply chain performance measurement: a systematic literature review
by Mariana Guersola, Maria Teresinha Steiner, Edson Pinheiro
Abstract: Through a structured overview of the literature, this paper provides an update and maps the current state of research involving the supply chain performance measurement and management. The results can be used as guidance to future studies. The main research limitations are related to the selected scientific databases, document types and search terms, which can exclude papers that could be pertinent. The findings show that the field of research is still very immature. The reviewed publications are from journals from various areas and researchers from several countries, which shows the breadth of interest in the topic and its importance. Many papers conducted studies in order to identify the issues involved in supply chain performance measurement and management, and to propose frameworks to solve them, but few studies have been made about effective applications of these proposals. Content analysis covers the most addressed approaches used for the performance measurement and management.
Keywords: Performance measurement; Performance management; Supply chain; Supply chain management; Systematic literature review; Fuzzy Logic; Supply Chain Operations Reference (SCOR); Balanced Scorecard (BSC); Analytic Hierarchy Process (AHP); Data Envelopment Analysis (DEA).
Optimal Number of Suppliers to Mitigate Supply Disruption: A case of Indian Locomotive Manufacturer
by Rajnish Kumar, Sidhartha S. Padhi, Ashutosh Sarkar
Abstract: Dependencies over supplier for efficient functioning of firms are
evident in academic literature as well as in practice. However, disruption in
supplies can hinder the entire manufacturing process. This article applies a
mathematical model through modifying the work of Berger et al. (2004) to
determine the optimal number of suppliers required under supply disruptions
and also used quantity discounts offered by suppliers on volume purchases. The
model is demonstrated by means of an Indian locomotive manufacturer as a
case study. We consider supply disruptions due to the probability of occurrence
of super, semi-super, and unique events in the supply chain. Furthermore, the
analysis has been extended to study the semi-super events, in which only a
particular region of supplier is affected. Results have shown that the optimal
number of suppliers is three for low cost items and two for the costlier ones.
This article will be helpful for efficient managerial decision making for
materials management and purchasing practitioners, besides academicians for
better understanding of such concerns.
Keywords: original equipment manufacturer; OEM; mathematical modelling;
optimal number of suppliers; sensitivity analysis; Indian locomotive.
The Brazilian Recent Infrastructure Policies
by Renata V. Klafke, Claudia T. Picinin, Caroline Lievore, Luiz A. Pilatti
Abstract: This paper aims to briefly disclose some figures on recent logistics investments in Brazil for the main modes of transport. This work primarily consulted Brazilian federal agencies, as well as articles of logistics scholars found in the SCOPUS database, to provide context for broader understanding. It is able to notice through this text that, although the Brazilian transportation logistics are lacking, the positive participation of the National Development Bank (BNDES) in the construction of logistics infrastructure and investments of the Brazilian government through its programmes have contributed to the growth of the national transport logistics.
Keywords: Brazilian Logistic; Infrastructure; Investments.
Modelling and solving a novel Gardener problem under an emergency order and stochastic storage space
by Marzieh Karimi, Seyed Hamid Reza Pasandideh
Abstract: The objective of this research is to determine the optimum order quantity such that the expected total profit will be maximized while some constraints such as the service level and stochastic storage space will be satisfied in the Gardener Problem. The main contribution is to utilize the emergency order in case of shortage, in order to achieve more profits where the demand is more than the on hand inventory. In this case, the vendor should pay the cost of customer waiting time to receive the required products either purchasing the products or losing the sale condition. As the proposed problem is NP-hard, using meta-heuristic method is our methodology for solving. Two meta-heuristic algorithms namely differential evolution and invasive weed optimization are utilized to solve the problem in which their parameters are tuned. Finally, some numerical experiments and statistical comparisons are performed to evaluate the applicability of both proposed model and the algorithms. The computational results show that the proposed differential evolution has a desirable performance in favor of the expected total profits.
Keywords: Gardener Problem; Emergency order; Invasive weed optimization; Differential evolution.
Two ware-house inventory models of breakable items with stock dependent demand under trade credit policy with respect to both supplier and retailer
by Bijoy Krishna Debnath, Pinki Majumder, Uttam Kumar Bera
Abstract: For the first time, this study deals with an inventory control system with delay in payment for damageable/breakable items with stock dependent demand. Moreover, this paper relates to two warehouse inventory policy with continuous release pattern along with two-level of credit period with respect to both supplier and retailer. Since per unit selling price is greater than that of purchasing price, a new approach is introduced for payment to the wholesaler for the amount remained after the credit period. Here the retailer earns the required amount before the end of the business period and clears his due as soon as it is available. The sales and interest for the remaining period are deposited for maximizing profit and consequently minimizing the total inventory cost. The model has been developed as a cost minimization problem with respect to the retailer and wholesaler and optimized using the non-linear optimization technique Generalized Reduced Gradient method (LINGO). The optimal solution has been exemplified numerically and graphically in this study of approach.
Keywords: EPQ model; two-warehouse; trade credit; continuous release pattern; alternative approach of payment; non-linear breakability.
Designing a Green Supply Chain Network Using LCA method: A Robust Optimization approach
by Ali Mohtashami, Alireza Alinezhad
Abstract: In this paper designing of a supply chain regarding environmental consideration is addressed. For this purpose, a mixed integer linear programming model is proposed which integrates decisions about environmental investment and selection of active facilities in the network of the supply chain. In the proposed model, the emission of the environmental pollutants is considered through all stages of the supply chain for calculating the environmental effects of products according to the life cycle assessment (LCA) method. For each product some limitations are considered that affect supply chain decisions. Such limitations may be imposed by environmental protection agencies or regional scheme. Also, due to uncertainty in some parameters of the proposed model, a robust optimization approach is applied which makes the obtained solution robust and feasible with predetermined level of confidence against variability in uncertain parameters. The computational results illustrate the high performance of the proposed model.
Keywords: green supply chain; environmental investment; life cycle assessment; robust optimization.
Analysis of supply chain issues under sales promotional schemes using FAHP
by Sricharan Chirra, Dinesh Kumar
Abstract: Sales promotional schemes are a set of marketing activities that has an enormous impact on sales but exposes the supply chain to the risk of demand uncertainty. This work prioritises and develops a hierarchical model of important supply chain issues to enhance the companies competitive position under sales promotional schemes. Automobile industries being in an emerging competitive situation in India are chosen for this study. Using few statistical tools viz. CV-Index, Cronbachs alpha and Kappa statistics along with experts opinion, the key issues/factors has been identified and grouped into a structured model considering supply chain - collaboration, efficiency, flexibility, and promotion. Supply chain issues are prioritised using Fuzzy Analytical Hierarchy Process (FAHP) and the Liberatore score method is used for performance evaluation of considered company. From the analysis, it is observed that flexibility and 'collaboration' parameters are more prominent than others to deal with demand uncertainty.
Keywords: supply chain management; sales promotional schemes; performance analysis; analytical hierarchy process; fuzzy data analysis.
Design of Smart Logistics Transportation System using MapReduce Intelligent Water Drops Algorithm in Hadoop Environment
by Sathish Kumar, Rani Chellasamy, Ganesh Kumar
Abstract: Designing a smart system for delivering goods to various fair price shops effectively is one of the major goals in the mission of smart city development. In this paper, the smart city environment is treated as a distributed environment for carrying goods across different parts of the city. Hence the widely used intelligent water drops algorithm is implemented as MapReduce model using Hadoop environment to compute the shortest path for speedy delivery of goods. A front end is designed to carry out interstate and intrastate transportation of items. Distance matrix comprising of 50,100,150.500 cities is considered for the simulation. From the experiment, it is observed that the intelligent water drops algorithm implemented in map reduce model meets the objective of delivering materials to the right destination in minimum time. The performance of the proposed MapReduce intelligent water drops algorithm is compared with other popular algorithms like Bellman ford algorithm, Throup algorithm Gobow algorithm, and Dijkstras algorithm. It is observed that the proposed MapReduce intelligent water drops algorithm gives out a reliable shortest path between any source and destination city with less CPU time than the other algorithms.
Keywords: Smart City,Transportation System; Intelligent Water Drops algorithm; MapReduce; Hadoop Environment.
Environmental impacts of cold chain distribution operations: a novel portable refrigerated unit
by Ivan Ferretti, Laura Mazzoldi, Simone Zanoni
Abstract: This paper presents a model for the evaluation of the environmental impacts associated with the management of cold supply chain, considering transport and storage activities. A novel portable refrigerated unit for the management of goods along the cold chain is presented, and its performances, in terms of emissions at different distribution stages, are compared to those of traditional cold chain equipment. A mathematical model based on costs and environmental impacts has been developed. Moreover, a case study is presented so as to show the usefulness of the model proposed. Numerical analyses are provided in order to demonstrate the efficiency of the new equipment, compared to the traditional refrigeration technology involved in distribution chains. Environmental benefits and efficiency of the new equipment are considered, as well as energy consumption reduction. The proposed system may help companies to pursue more sustainable practices in their cold chain activities.
Keywords: Cold Chain; Refrigerated Equipment; Environmental Impact.
An Empirical Study on Effect of Information Sharing on Supply Chain Performance The Case of Indian Automotive Industry
by Sendhil Kumar Ramakrishanan, Pugazhendhi Singaram, Muralidharan Chandrasekaran, Murali Sivanesan
Abstract: Sharing information is regarded as one of the most effective ways of improving supply chain (SC) performance The present study aims to understand and determine factors related to information sharing that would be able to enhance the SC performance with specific focus on Indian automotive industries. Data collected from the middle, senior and top level management executives of automotive industries in India is used to test the relationships between the constructs in the model through the application of multiple regression analysis. The results supported the proposed multiple linear regression model development. The results of the analysis indicate that all the factors that are considered have a direct and significant influence on SC performance. The study is further extended to examine whether there is any significant difference, among the four levels of organizations such as OEM,TIER1,TIER2 and TIER3 with respect to the dimensions of information sharing that influences the performance of SC. The findings can help the firms to identify the areas that need attention to achieve better SC performance.
Keywords: Information sharing; supply chain performance; multiple regression.
A new model for multi-period bi-objective inventory routing problem with stochastic demand, inventory holding, shortage and customer satisfaction
by Pouya Ehsani Tabari, Babak Shirazi, Iraj Mahdavi
Abstract: This paper presents a new multi-period, bi-objective inventory routing problem model with stochastic demand in two echelon network supply chain including some suppliers with several vehicle to satisfied customers demands. Reducing the number of vehicles is also considered which each vehicle belongs to one routs. The difference between this paper and the others is that the shortages and inventory holdings are kept at the customers parts not in distribution centers. Customers review records costs, customers satisfaction and its relationship with shortage and inventory holding are objective function. The customers satisfaction increased by decreasing inventory holdings and shortage amount. The goal is to determine the delivery quantities to customers due to shortage and inventory holding amount per period. The objective of this paper is to minimize transportation routing costs, customers review records costs, inventory holding costs and shortage costs. And maximize customers satisfaction. The presented model analyzed by ε- Constraint method and run in GAMS software.
Keywords: Inventory routing; stochastic demand; customer satisfaction; customer review records costs.
Analysis and Prioritization of Eco Drivers in Supply Chain
by S. Amalaldhasan, Parthiban Palanisamy, R. Dhanalakshmi
Abstract: Green supply chain management (GSCM) is a powerful tool to differentiate one company from the others and it can greatly influence the success of any plant. This paper aims to identify the management, technological, organizational, external and Stakeholders cooperation. These factors influence the adoption of Eco-Design and integrate into the green supply chain management. The drivers and sub-factors are ranked using fuzzy quality function deployment (FQFD), rough quality function deployment (RQFD) and fuzzy technique for order of preference by similarity to ideal solution (Fuzzy TOPSIS). In the proposed model, fifteen fundamental requirements of the customers are identified and fifteen main factors of eco-design are derived to satisfy the overall requirements. Fuzzy TOPSIS selects the alternative that is closest to the positive ideal solution and farthest from negative ideal solution.
Keywords: Green Supply Chain Management (GSCM); Eco Design; Fuzzy QFD; Rough QFD; Fuzzy TOPSIS.
Green Logistics Decision Support System for Blood Distribution in Time Window
by Manoj Kumar, Dinesh Kumar
Abstract: The role of Green logistics in the distribution management has seen a tremendous increase due to increased focus on environmental protection, greater consumer environmental concern, green legislation, and sustainability. This has led to an increase in recycling, reuse and emission control to reduce economic and environmental costs. In this research, we propose a Genetic Algorithm based decision support system for route generation and comparison of the routes based on various economic and environmental cost factors. Four variants of vehicle routing problem for simultaneous delivery and pickup in hard and soft time windows (VRPSDPTW) with full and partial pick up strategies have been formulated and optimized using Genetic Algorithm. The real-life data of blood distribution is used for comparing VRPSDPTW models on the basis of their economic and environmental value. The results of this research indicate that total cost is lower in the case of full pickup with soft time windows. The proposed system can be used for decision making by logistics organisations to select an appropriate transportation scheme with lower economic and environmental costs.
Keywords: Green Logistics; Blood supply chain; Genetic Algorithm; Vehicle routing; Environmental cost.
Analysis of vaccine supply chain issues using ISM approach
by Dheeraj Chandra, Dinesh Kumar
Abstract: Immunisation is one of the most cost-effective & protective methods of controlling infectious diseases among children. However, due to the high population density, and varied demographic patterns, millions of children remains unimmunized each year in India. In the present study, an effort has been made to identify issues in the supply of basic vaccines required to immunise each child based upon the field survey of Uttarakhand state, India. The Delphi method that uses experts opinion in decision-making has been employed for selection of twenty-five key issues as factors of vaccine supply chain. Using interpretive structural modelling (ISM) approach a hierarchical structure has been developed to show interrelationships among various factors. Then, MICMAC analysis has been performed to classify the factors based on their driving and dependence power. From the ISM model and the MICMAC analysis, and from further discussions with the experts, it has been found that the factors demand forecast, communication between the supply chain members, and proper planning and scheduling are three most critical factors of vaccine supply chain. The study will provide a direction to the policymakers for implementing the state immunisation plan for the coverage of the larger areas and reduction in child deaths due to low immunisation.
Keywords: vaccine supply chain; issues; factors; immunisation; Delphi; ISM; MICMAC.
Container Inventory Management: introducing the 3 F model
by Lalith Edirisinghe
Abstract: Container inventory imbalances (CII) can primarily be attributed to global trade imbalances that cause a substantial indirect cost in shipping. Therefore, it is imperative that carriers adopt highly efficient and effective container inventory management (CIM)systems to overcome the CII issues. This research intends to develop realistic guidelines for CIM that minimize CII costs. The components of the 3 F model are chosen based on the rating scores given by the experts for 22 common CIM strategies followed by a standard filtration process. It ultimately comprises six strategies, namely, Reduce import freight; Reduce export freight; Service agreements; Synchronized budget; Agile inventory; and Export priority. These variables are rooted in three dimensions namely, Freight; Forecasting; and Flexibility. To identify the relative contribution by each component, it proposes a double weight allocation procedure for each strategy. The 3 F model helps managers think beyond traditional container re position and increased profits.
Keywords: Container inventory management (CIM); Imbalance; Freight; Forecasting; Flexibility; Strategy; CIM mix.
Supply chain sustainability strategy selection using integrated multi-criteria decision-making method
by V. Sreekumar, M. Rajmohan
Abstract: In recent years, industries have begun taking up proactive leadership and working together with their supply chain partners to implement initiatives for improving the sustainability of the supply chain. Sustainability performance improvements in industries are essential for survival rather than meeting the regulatory and reporting requirements. This paper aims at determining the major sustainability criteria and prioritising the given sustainability strategy sets to achieve the highest sustainability performance. This Multi-Criteria Decision-Making (MCDM) problem is solved by the application of the Analytic Hierarchy Process (AHP) and Preference Ranking Organisation METHod for the Enrichment of Evaluations (PROMETHEE) techniques in an integrated way. In this study, criteria for comparing the alternatives are identified from literature. The criteria weights are obtained using AHP methodology and are used in the PROMETHEE (I and II) for ranking the strategy sets. The proposed methodology is applied to solve a real-time supply chain decision-making issue of an Indian manufacturing industry. The most sustainable strategy proposal is identified. Sensitivity analysis is carried out on the variations in ranks with respect to the deviation in criteria weights. The minimum deviations in criteria weights that cause rank reversal are also identified from this. It facilitates getting insights into the stability of the ranks to the decision-maker.
Keywords: supply chain; sustainability; strategies; ranking; multi-criteria decision-making; AHP; PROMETHEE; integrated approach; sensitivity analysis.
COMPETENCIES OF HIGH-PERFORMANCE LOGISTICS PROFESSIONALS IN EMERGING ECONOMIES
by Bruno Vilela, Ricardo Martins, Janaína Siegler
Abstract: This study sought to indicate the attributes that reflect the best performance and value of logistics professionals in emerging countries. We used the concept of individual competencies and the businesslogisticsmanagement model of skills and knowledge from Murphy and Poist (1991a) as a basis for building the framework. Data collection was conducted via a survey of logistics professionals in Brazil, and data analysis was done using Structural Equation Modeling. Results indicated a positive relationship between education, skills, knowledge in management, logistics, performance, and value of the professional in the organization. In contrast, the relationships between experience, skills, knowledge in business, performance, and value were not found to be significant per the statistical model. The merit of this research is primarily based on the use of a well-established theoretical concept of competency applied to define in practice which sort of logistics professionals have good performance and value in today's demanding market.
Keywords: Individual Competencies; Logistics Professionals; Business-Logistics-Management Model.
Supply chain risk assessment: A content-analysis based literature review
by Thi Huong Tran, Mario Dobrovnik, Sebastian Kummer
Abstract: In recent years, along with globalisation trend, risk management has been an integral part in supply chain management. In this vein, supply chain risk assessment has become an active and important research subject. There is considerable research and debate on the approach and method of assessing risk in order to obtain a sound base for decision making in supply chain and supply chain risk management. This paper aims to synthesise overall aspects of supply chain risk assessment in the literature. To this end, we have investigated 140 peer-reviewed articles in high quality journals by using a content analysis method and a systematic approach. The heterogeneous definitions, focuses, procedures, methods, and indicators of supply chain risk assessment referred to in previous research are comprehensively analysed and presented in classification frameworks in order to gain insights into this field, explore research gaps, and provide an outlook for future research.
Keywords: Supply chain management; supply chain risk; supply chain disruption; risk assessment; risk analysis; risk indicator; risk scale; systematic review; content analysis.
Genetic algorithm combined with Taguchi method for optimization of supply chain configuration considering new product design
by Oulfa Labbi, Latifa Ouzizi, Mohammed Douimi, Abdeslam Ahmadi
Abstract: In this paper, we propose a methodology to optimally configure a supply chain when considering a new product design. The supply chain configuration is conducted during the product design phase. In fact, several product design alternatives are possible and the aim is to select the best product design optimizing the supply chain and satisfying market place as well. In this design problem, specificities of the new product architecture and logistical constraints of supply chain partners are considered at the same time. This product-supply chain design process simultaneity is modeled using an UML sequence diagram. Supply chain design is achieved by levels corresponding to the products bill of material. A mathematical model is proposed for optimizing costs for each level. Genetic algorithms are used to solve the complexity of the model. Since parameters values of genetic algorithms have a significant impact on their efficiency, we have proposed to combine Taguchi experimental design and genetic algorithm to determine the optimal combination of parameters that optimizes the objective function. This method can effectively reduce time spent on parameter design using genetic algorithm and increase also its efficiency. The accuracy of the proposed GA-Taguchi method is validated using CPLEX software to evaluate its performance.
Keywords: Supply chain design; new product design; Unified Modeling Language (UML); mixed integer linear programming; Genetic Algorithm; Taguchi experimental design.
Economic order quantity model for deteriorating item with preservation technology in time dependent demand with partial backlogging and trade credit
by Ali Akbar Shaikh, Gobinda Chandra Panda, Satyajit Sahu, Ajit Kumar Das
Abstract: In this paper, we have described an inventory model for deteriorating item with preservation technology in time dependent demand with trade credit facility and partial backlogging. We have introduced an interesting factor preservation technology to reduce the deterioration rate. Shortages are allowed with a constant backlogging rate. Also, in this paper we have introduced trade credit policy in the perspective of retailers. Our main objective is to find the cycle length, preservation technology strategies and total profit. We have solved two numerical examples to validate our proposed inventory model and presented concavity graphically by using Mat lab software for each example. Finally, we have presented a sensitivity analysis by changing one parameter at a time and keep rest of the parameters are same.
Keywords: EOQ model; deterioration; preservation technology; time dependent demand; partial backlogging; trade credit.
A conceptual framework for impact of automotive engineering changes in new product development
by Balakrishnan AS, Jayshree Suresh
Abstract: The Automobile market is characterized by global competition, highly demanding consumers, complex business environment, and diverse advancements of technologies. To compete, auto firms are forced to develop new products and introduce into the market on time by looking into all the possible areas of new product development (NPD) process. One of the areas that both academicians and practitioners have overlooked in the past is automotive engineering changes (ECs) and its impact on NPD. Organizations need to realize the significance of ECs, its involvement in NPD and its impact on overall NPD project performance and material planning and logistics (MP&L) performance. In this paper an attempt is made to develop, a conceptual framework of the critical dimensions of ECs. The dimensions were identified using the mixed method of literature review and expert opinion interviews. The experts represented the original equipment manufacturers (OEM), Tier1 suppliers and logistics service providers (LSP) from Asia Pacific automotive sector. This paper presents the research outcomes, implications and limitations of the study.
Keywords: EC; automotive; engineering change; NPD; new product development; MP&L; material planning and logistics.
The Influence Of The Order Prepayment On Inventory Optimisation
by Gennadiy Brodetskiy
Abstract: Modification of the inventory management EOQ-model factoring in the temporary value of money (TVM) and an advance payment of the order on the basis of the credit is given in this article. Its purpose is to present for the managers an appropriate modifications of the EOQ-formulas for such models (both for deliveries of one nomenclature of goods, and for multinomenclature deliveries). Usage of these modifications will allow to increase the efficiency of deliveries by taking into account the specificity of appropriate cash flows, if optimization takes into account TVM (by the scheme of simple interest). Accepted that all payments are being realized from the revenue of the previous delivery. The necessary and sufficient condition for a possibility of such payments is established. The interest rate for factoring in the TVM reflects profitability of working capital of the modelled supply chain. It is defined in a format of the model. It is noted that the optimization of the models of this type relate with the synergetic effect of increasing the profitability of working capital.
Keywords: order prepayment; credit for order payment; inventory management; economic order quantity; EOQ; temporary value of money; TVM; payments from revenue; working capital profitability; EOQ modification.
A socially responsible supplier selection model under uncertainty: case study of pharmaceutical department of an Iranian hospital
by Mohamadreza Fazli-Khalaf, Neda Ghasemi Nemati
Abstract: Stakeholders of supply chains have close cooperation with each other and special attention goes to activities of suppliers. Effective performance of Suppliers could result in enhancement of responsiveness of network and heightens customer loyalty and satisfaction that could be regarded as a long-term competitive advantage for companies. In this regard, supplier selection has become an important challenge for company managers in supply chain planning scope. In recent years, importance of corporate social responsibility (CSR) has been emphasized by researchers and field experts that is disregarded in supplier selection scope. Besides, inherent uncertainty of parameters is other issue that should be carefully considered in supply chain planning owing to their undesirable effects on operational and tactical decisions of network design. Based on enumerated matters, a bi-objective dynamic multi-period supplier selection model is developed in this paper that minimizes total of costs of network besides maximizing social responsibility of network echelons. To effectively cope with uncertainty of parameters, a chance constrained possibilistic programming model is proposed. Extended possibilitic programming model enables decision makers (DMs) to control risk-aversion of output decisions. Finally, case study of pharmaceutical department of an Iranian hospital is employed to show efficiency and practicability of developed fuzzy social responsible supplier selection model in real world problems.
Keywords: Supplier selection; Corporate social responsibility; Supply chain; Possibilistic programming.
Developing System Supplier Capability by Integrating Knowledge with Customers
by Inga-Lill Carlsson, Lars Bengtsson
Abstract: As large corporations outsource parts of their manufacturing and services, many small and medium-sized enterprise (SME) suppliers are expected to deepen their capabilities and take on the role of system suppliers. The purpose of this paper is to analyse how a SME can develop system supplier capabilities by integrating knowledge with its customers. The study is based on a deep longitudinal case study of a SME manufacturer and focuses on continuous development capability as one of the core system supplier capabilities. The results show that knowledge integration (KI) with customers is an effective means for building system capability but also illustrates that this is a stepwise process. The study identifies three levels of KI with customers: unidirectional knowledge transfer, mutual knowledge exchange and full-range knowledge. The analysis further indicates that each level of KI requires specific supplier capabilities.
Keywords: SME; small and medium-sized enterprise; Sweden; system supplier; supplier capabilities; supplier development; customer integration; KI; knowledge integration; knowledge exchange; knowledge transfer.
Simultaneous Development of Border Points as Trade Facilitation: Advocacy to Aid Supply Chain of Goods through the Case of SADC Road Entry Points.
by Felistas Zimano, Fayth Ruffin
Abstract: This article situates the Southern African Development Community (SADC) road entry point management systems (REPMS) within international supply chain logistics. It exposes the influence of REPMS on the link between movement of goods and optimum supply chain performance. A novel transdisciplinary theoretical framework drawn from supply chain and international relations theories is applied to survey data from respondents at border points that link Zimbabwe to Botswana, Mozambique, South Africa and Zambia. The 345 respondents are international truck drivers and small and medium entrepreneurs. The authors argue that simultaneity of transformation of two-stop border posts to one-stop border posts is required in a logistical corridor. Findings show that failure to do so disrupt supply chain logistics, impedes international trade and hinders regional integration. Conclusions reveal that, inter alia, SADC REPMS are out of sync with non-state actors and international trade facilitation. Recommendations include cultivation of public-private partnerships for REPMS transformation.
Keywords: Supply chain; sustainable supply chain management; regional integration; reflectivist new regionalism; Southern African Development Community; international trade; transactional costs; trade facilitation; border infrastructure.
THE VTMIS IMPLEMENTATION AND THEIR IMPACT ON PILOTAGE AND MOORING OPERATIONS: A COMPARATIVE STUDY BETWEEN THE PORTS OF BARCELONA (SPAIN) AND SANTOS (BRAZIL)
by Guilherme Vieira, Rafael Silva, Luiz Afonso Senna, Francisco José Kliemann Neto, Priscila Costa
Abstract: This study focuses on the VTMIS implementation and utilization at the ports of Santos and Barcelona. It aims at analyzing: i) the systems implementation context; ii) the adopted model, as well as its objectives and functionalities; and iii) the benefits brought by the system, as well as its impacts on mooring operations and maritime pilotage service. In order to do so, a qualitative and exploratory approach was followed, based on in-depth interviews and on-site visits. As results, a much more mature and integrated VTMIS was identified in Barcelona. Due to the lack of integration and coordination perceived in the VTMIS project at the port of Santos, a set of recommendations for the proper VTMIS implementation in Brazil was developed. These recommendations may also be useful to ports of another regions involved with VTMIS implementation processes.
Keywords: VTMIS; Port of Barcelona; Port of Santos; Comparative Analysis.
Consumer Awareness of Supply Chain Flows in Relation to Consumer Perceptions of Value-added by Supply Chain Management
by Dinesh Dave, Michael Dotson, James Stoddard
Abstract: The objective of this study was to examine the perceptions of consumers regarding their awareness of supply chain management flows and the benefits that these flows convey to them. A further objective was to test the conjecture that consumers could be grouped into supply chain benefit segments. An electronic survey (Qualtrics) was administered to consumers in the United States to test the propositions. Hierarchical cluster analysis revealed three important benefits sought by consumers (variety and assortment, quality/price and reasonable price segments). An analysis of variance suggested that the three consumer supply chain benefit clusters explained differences in consumer awareness of supply chain flows. Consumers in the variety and assortment segment had a higher awareness of financial flows, material flows and information flows as a result of their shopping behavior. The conjecture that the variety and assortment segment had higher awareness of supply chain flows due to their higher online shopping frequency was supported.
Keywords: Consumer Awareness of Supply Chain Flow; Material Flow in Supply Chain; Information Flow in Supply Chain; Financial Flow in Supply Chain; and Consumer Perception of Value-Added Supply Chain.
Modified Johnson Rule for Two-Stage Flowshop Scheduling with Random Breakdowns
by Fawaz Abdulmalek
Abstract: The two-stage flowshop assembly scheduling problem where there are m machines at the first stage and an assembly machine at the second stage is considered in this paper. In several real world service and production systems, there is more than one parallel machines at stage one and an assembly machine to assemble job components at stage two. The machines at stage one will be subjected to unsystematic breakdowns. The jobs order sequence into the flowshop will be based on three jobs ranking rules, Johnson rule, and two modified Johnson rule, namely Johnson Largest rule and Johnson smallest rule. A simulation model of the two-machine flowshop then will be constructed in which both machines at stage one are subject to random failures. Three simulation experiments will be conducted to examine the effect of the job ranking rules on the makespan. The result showed that Johnson Largest ranking rule gave the minimum makespan over the others.
Keywords: Flowshop Scheduling; Random Breakdowns; Johnson Rule; Simulation.
Rice Chain Flow Modeling for Optimized Supply and Distribution Network: The case of Specialized Rice Mill Zones in Bangladesh
by MOAZZEM HOSSAIN, Rawnak Jahan
Abstract: The purpose of this paper is to explore the reorientation of the informal rice industry of Bangladesh into integrated and specialized rice industry zone(s), which should create platform and economy of scale for formal logistics development in an otherwise informal industry chain. This research aims at planning specialized rice industry zone(s) and associated transport logistics through finding optimized location of such zone(s) with minimized total transportation cost. Network flow model is developed using Mixed Integer Linear Programming formulation for evaluating zone locations with consolidated input and output supply base for improving informal supply and distribution logistics. Experiments with the model provide optimized locations of specified number of rice zone(s) with minimized transportation cost. The findings of this research will be useful for policy makers, transport and agribusiness researchers in rice-producing countries, especially, which have informal setup of rapidly growing rice mills. The concept can be multiplied for other crops and scaled to other rice producing countries.
Keywords: Rice Chain Flow Modeling; Food logistics; Rice Supply and distribution Network; Integrated Location planning.
A system for supply chains diversification and (re)design: supporting managers perspective in the face of uncertainty
by Francesco Longo, Letizia Nicoletti, Antonio Padovano
Abstract: Because of the stochasticity of the Supply Chain (SC) and the increased uncertainty due to the negative trend of the publishing industry that is trying to survive to new trans-media contents delivery, business firms are looking for advanced tools supporting them in (re)defining their business (diversification) and in (re)designing their own SC. Here, a multi-method, iterative, four-step procedure has been defined where a new and win-win integration between Value Stream Mapping (VSM) and multi-paradigm simulation is achieved. Such framework is implemented into a DSS (called SmartDistr), equipped with dedicated GUIs that drive the user along its application and use. The potentials of the proposed approach are demonstrated through the case study of a business firm managing a regional distribution network in the publishing industry. To this end, the proposed case study shows how the SmartDistr DSS allows evaluating operational and financial performance measures along with managerial insights that enable managers to discern easily different business diversification and SC (re)design scenarios.
Keywords: Decision Support System; Value Stream Mapping; Simulation; Business Diversification; Supply Chain Design; Distribution Network.
Capacitated Vehicle Routing Problem Using Genetic Algorithm: A Case of Cement Distribution
by Tanzila Azad, M.A.A. Hasin
Abstract: Vehicle routing problem is a multi-objective problem. The problem involves optimizing a fleet of vehicles that are to serve a number of customers from a central depot. Each vehicle has limited capacity and each customer has a certain demand. A procedure is introduced for the optimization of a customer order service management system with a structured distribution network of a cement company of Bangladesh .The goal of the research is to find a solution of Vehicle Routing Problem using genetic algorithm. It generates feasible clusters of resellers or distributors and determines delivery sequence and an optimal distribution network to meet demands by travelling minimum distance. The results of the study show that Genetic Algorithm provides a search technique used in computing to find true or approximate solution of search problems. The technique is able to determine the optimum route for the vehicles. while maintaining their constraints to get an optimal distribution network that minimizes the total travelling distance.
Keywords: Capacitated Vehicle Routing ; Optimal Route ; Genetic Algorithm.
Exploration Factors affecting an ambidextrous supply chain
by Mohd. Mehdi, Salma Ahmed
Abstract: The purpose of the study is to identify the exploration factors affecting an ambidextrous supply chain in Indian context. A structured questionnaire using a five point likert scale was employed to collect data from 110 supply chain managers working in Indian supply chains. The survey was conducted to examine the different exploration factors affecting an ambidextrous supply chain. Demographic details of the supply chain managers were also collected. Research hypotheses were also framed based on existing literature about ambidextrous supply chain and were statistically tested using structured equation modelling (SEM). The application of exploratory factor analysis (EFA) presented the existence of four constructs; three independent constructs of exploration and one dependent construct of ambidexterity. These four constructs were confirmed by the application of confirmatory factor analysis (CFA). After the confirmation of these constructs, the structured equation modelling (SEM) tested the formulated research hypotheses. SEM identified the exploration factors affecting an ambidextrous supply chain. The study is likely to provide supply chain managers significant understanding about the various exploration factors affecting an ambidextrous supply chain. This identification of various exploration factors affecting an ambidextrous supply chain will aid supply chain managers in formulating and executing their decisions appropriately.
Keywords: Ambidextrous supply chain; Exploration; Knowledge Practices; Innovative Practices; Exploratory Learning; Structural Equation Modelling (SEM).
Lagrangian Heuristic for Supply Perishable Products in Two-Echelon Distribution Network
by Sona KANDE, Christian Prins, Lucile Belgacem, Thibault Lhermitte
Abstract: This article presents a planning problem in a distribution network incorporating two levels inventory management of perishable products, lot-sizing, multi-sourcing and transport capacity with a homogeneous fleet of vehicles. This study is carried out in the framework of a thesis in collaboration with the company FuturMaster, designer of an APS (Advanced Planning System) software. This type of network has been encountered in recent years by several FuturMaster customers, such as in the distribution of dairy products or beverages, and with instances that can reach large sizes. A mixed integer linear programming (MILP) is developed to solve this real planning problem. There are some instances for which the solver cannot give a good lower bound within the maximum calculation time and for other instances it takes a lot of time to solve MILP. A fast heuristic has been developed in order to obtain solutions when the solver fails to find optimal solutions in acceptable times. However, the difference at the best lower bound is fairly large: about 20%, on average, over the instances tested. To improve the quality of heuristic solutions, three metaheuristics based on neighborhoods are developed. This are a variable neighborhood descent (VND), an iterated local search (ILS), and a Multi-start iterated local search (MS-ILS). However for instances for which the solver does not provide a good feasible solution, within the given time. We could not evaluate the distance to the optimum for the heuristic and metaheuristics solutions. A Lagrangian relaxation is implemented to evaluate these instances and compare the results with those of the metaheuristics. The relaxed problem is solved by a method of sub-gradient, which changes the multipliers on each iteration and provides a suite of lower bounds. A repair heuristic is applied to the corresponding solutions, for which the cost tends to fall during iterations; it offers an alternative solution for solving the studied problem. For computational evaluation, the instances are built using a random generator.
Keywords: Lagrangian heuristic; Lot-sizing; Multi-echelon inventory; Multi-sourcing; Perishable product; Transport capacity.
MANAGING RISKS AND SYSTEM PERFORMANCE IN SUPPLY NETWORK: A CONCEPTUAL FRAMEWORK
by Huy Truong Quang, Yoshinori Hara
Abstract: Examining a certain risk will provide an insight into a single dimension, but a picture of different risks in the supply chain (SC) is still lacking, as risks do not take place independently, but typically simultaneously. This research aims to propose and validate a conceptual framework for linking various dimensions of risk to system performance in the SC. To this end, first risks in the supply network were identified by applying SC mapping - a new approach in the SC risk body of literature. Then the theoretical conceptual framework comprising a holistic set of SC risks was proposed. In this model, risks were classified into three categories with regard to their level of impact on performance, i.e. core risks (supply, operational and demand risks), infrastructure risks (finance, information and time risks) and external risk. Empirical evidence at Vietnam construction industry showed that a total of nine SC risks were established. Accordingly, there are two new concepts formed from operational risk, namely (1) investor-related operational risks and (2) contractor-related operational risks. External risk, moreover, was split into two new dimensions: (1) human-made risks and (2) natural risks. Except for relationships between demand risk & SC performance and between SC risks & financial performance, these risks have mutual interaction and detrimentally affect SC performance. Using this framework, companies will have a systematic view of risks in the whole SC network whereby they can define risks in their own context and ascertain critical SC risks that cause negative effects on SC performance. Moreover, this framework can be used as a guide-map in an effort to mitigate SC risks.
Keywords: Risk; Supply Chain Risk; Risk management; Supply chain risk management; Construction Sector.
A Methodical Analysis of Inventory Discrepancy under Conditions of Uncertainty in Supply Chain Management
by Nebil Buyurgan, Shengfan Zhang, Kaan Okyay
Abstract: This study presents two compensations methods for inventory discrepancy caused by demand, supply and lead time uncertainty as well as inventory related errors. The first method increases the resistance of supply chain by incrementing safety stock levels while the second method controls and corrects inventory discrepancy based on estimated errors. System-level errors are categorized and modelled under the best and the worst possible conditions to characterize and investigate the behaviour of discrepancy between on-hand and recorded inventory in a supply chain. Numerical analyses are performed to observe inventory and discrepancy behaviour to quantify the benefits of the methods. The results indicate that inventory errors can be characterized as an extra source of demand in supply chain. Incrementing the safety stocks based on inventory records can decrease stock-outs and lost sales but increase the level of on-hand inventory. Controlling and correcting inventory discrepancies however, keeps low inventory.
Keywords: inventory management; supply chain management; inventory discrepancy; safety stocks; inventory record correction.
Supply Chain Management Maturity and Complexity: Findings from a Case Study at a Health Biotechnology Company in Brazil
by Luiz C. Roque Júnior, Guillherme F. Frederico, Maykon L.N. Costa
Abstract: Recently, research on the maturity levels of different management areas has gained increased importance. In supply chain management SCM, some approaches have been developed with a view to better understanding how to enhance performance. This paper presents a case study at a Brazilian biotech company, which is a national reference in molecular biology. The purpose is to gather evidence of the level of maturity and complexity in supply chain management. Considering that supply chains are crucial for companies in the health services segment, the results of this survey establish the company maturity dimensions to serve as base in working towards achieving higher SCM competence levels. The survey also includes complexity elements for the purpose of gathering evidence on existing relations between complexity and maturity. From the main findings, a clear relationship can be established between maturity and complexity levels. This study makes an important contribution to the literature on supply chain management maturity and complexity. It can also be used by practitioners as a guide to be applied in companies to drive understanding of the relationship between maturity and complexity.
Keywords: Supply Chain Management; maturity; complexity; biotechnology; health; case study.
Brazilian Trends in the Practice of Corporate Social Responsibility
by Maria Cristina Fogliatty De Sinay, Gabriel Aguiar De Araujo, Laura Sinay, Marta Correa Dalbem
Abstract: The objective of this study is to verify trends in the level of adoption of some CSR practices by the largest Brazilian companies. Secondary data were analysed on more than 600 Brazilian companies related to their adherence to CSR practices along the 2008-2014 period. While Environmental Educational Programs got the highest adherence, Accountability for Environmental Hazards got the lowest one. Industrial and agroindustrial sectors adhered more and scored better to CSR practices than commercial and services sectors, but still showed low adherence to eco-efficient and/or accountability practices. The adherence ratio to CSR practices by the commercial sector is more volatile, signalling that it is less committed to long term CSR strategies. The services sector scored well, close to the other 3 sectors. It was also possible to observe that CSR is still seen as discretionary by a number of companies which tend to neglect environmentally friendly practices during economic downturns.
Keywords: corporate social responsibility; CSR; brazilian corporate social responsibility practices; brazilian CSR practices; corporate social responsibility in economic sectors; CSR in economic sectors; trends in corporate social responsibility practices; trends in CSR practices; performance in corporate social responsibility; performance in CSR.
DETERMINING THE OPTIMAL COLLECTION PERIOD FOR RETURNED PRODUCTS IN A STOCHASTIC ENVIRONMENT
by Nizar Zaarour, Emanuel Melachrinoudis, Shashank Kapadia, Hokey Min
Abstract: As the customer centricity has become a norm for todays business practices, a growing number of firms adopted liberal product return policies. Such policies, however, can backfire due to their costly operations and unpredictability associated with product returns. To minimize the adverse impact of product returns on the firms bottom line and enhance customer satisfaction with hassle-free handling of product returns processes, we develop and propose a mathematical model that determines the optimal collection period at an initial collection point (ICP) before transshipping the returned products to a centralized return center (CRC) while taking into account the uncertain rate of returns for these products. To reflect the complexity and uncertainty of the product return processes, we formulate a general model for daily returns following a discrete probability distribution and analyze the case for Poisson distribution.
Keywords: stochastic; product returns; collection time period; close-loop supply chain.
Implementing an Insert-node Heuristic Travelling Salesman Problem: A case Study to Reduce the Travelling Cost of a Medical Representative
by Mohammed Obeidat, Mohammad Hayajneh
Abstract: This paper develops an insert-node heuristic for solving a case study involving the Travelling Salesman Problem (TSP). A new infants formula company that is entering the United States market. The company established one head office in each state that has some medical representatives. One representative in the state of Kansas office who is in charge of visiting maternity hospitals or clinics in 48 cities in Kansas (USA) is selected. The objective of this research paper is to find the optimal route between the 48 cities for the representative, to minimize the travelling time and cost. The addition of this paper to the literature is that the insert-node heuristic approach is applied to the medicine and infants formula distribution in the state of Kansas.
Keywords: travelling salesman problem; TSP; heuristic; cost minimization; Hamiltonian cycle.
A Review and a model for logistics clusters
by Hui Han
Abstract: While logistics clusters (LC) are developing rapidly, there is clearly a lack of consensus on term names and definitions within the field of logistics clusters, let alone a common model for the logistics regions hierarchy. This study systematically reviews and compares relevant terms, so that the subsequent issues can be answered: (i) What are key concepts about LC and related areas being described? (ii)Which relationship is between these terms? (iii)What are the limitations of current models for the logistics regions hierarchy? The paper first provides a content analysis of 153 carefully identified papers from books, edited volumes, conference and journals. Then, based on the scope and the scale of logistics activities criteria, we propose a four-layer model for the logistics regions hierarchy. The proposed model is valuable in guiding scholars and practitioners to understand typology and hierarchy of logistics entities. Finally, this paper affords some guidelines on the direction of future research.
Keywords: logistics cluster; agglomeration; hierarchy model; literature review; content analysis; logistics centre; logistics hub.
Supplier selection model under changing criteria environment
by M.D. TANWEER AHMAD, Sandeep Mondal
Abstract: The study aims to present the supplier selection (SS) model under changing criteria environment based upon the market, because not all suppliers exist in the market are capable to perform potentially under considered set of criteria. However, the practical situation related to criteria and suppliers attributes in the company vary time to time due to this uncertain environment. In order to this, SS model based upon the fuzzy technique for order preference by similarity to ideal solution (TOPSIS) is proposed. The approach includes fuzziness with strategic perspective of finding the best set of suppliers in order to cope of the uncertainties into the problem. The methodology is validated through realistic data taken from an Indian automotive company. Subsequently, sensitivity analysis is conducted for knowing the robustness of the process. It is identified the robust set of criteria for evaluation of the problem which often faces the changing in the product for the managers.
Keywords: Supplier selection; Fuzzy TOPSIS; Automotive company; Sensitivity analysis.
The forward and reverse pharmaceutical supply chain network design considering tainted product delivery
by Zohre Ranjbar, Abolfazl Mirzazadeh
Abstract: This paper deals with pharmaceutical supply chain network design considering time periods. Due to the importance of health care management in forward side and increasing number of wastes in recent years, we consider both forward and back side flow of pharmaceutical network in this paper to satisfy patients need and control the useless materials to achieve environmental considerations. We proposed a seven echelon closed loop network with capacitated facilities in which time periods, transportation mod and production technology have been considered. It is noteworthy that inspection at distribution centers is applied to prevent tainted material delivery in forward side. These useless materials have been sent to collection centers to be disposed in the best way. Also the model of this paper determines the number of production centers, distribution centers, collection centers, production technology, transportation mode and the best way of waste disposing and try to satisfy consumers need on time and minimize the network costs. Some numerical examples are proposed to explain the results.
Keywords: closed loop; health care; network design; inspection; waste management.
Empty container movements beyond the effect of trade imbalance: Turkish terminals
by AHMET SELCUK BASARICI, TANZER SATIR
Abstract: The research objective of this study is to reveal the facts and magnitude of empty container movements (ECM) other than trade imbalances, which is called additional empty container movements (AECM) herein. According to the research, objectives have been extended to reveal the reasons for this, to form an opinion about the root causes, and to submit implications and recommendations on how to reduce this. The primary reasons for ECM that were indicated in the literature are trade and container-type imbalances. However, beyond this, empty movements are subject to operational drivers and other reasons arising from voluntary commercial decisions of ship operators, called the market effect. We must distinguish trade imbalance and AECM to find a reasonable solution for effective container transportation and to eradicate avoidable ECM. We have categorised the reasons for ECM and proposed a model and mathematical formula to quantify the magnitude of AECM. The unique formula derived from the proposed model has been implemented to analyse ECM in Turkish terminals for the throughput between 2013 and 2015. The ratio of initial AECM and sum of full in and out data for 20-foot containers in Turkey is 18%, while the trade imbalance is 30%. The identical ratio for 40-foot containers is 26%, while trade imbalance shows 17%, stressing the significant magnitude of AECM.
Keywords: maritime container transportation; reasons of container repositioning; market effect; Turkish container terminals; empty container; closed circuit model.
Factoring in Vehicle Capacity in Multinomenclature EOQ-models
by Victoria Gerami, Ivan Shidlovskiy
Abstract: For the multinomenclature EOQ-models the analysis of feasibility of deliveries using several vehicles factoring in vehicle capacity is conducted. It is proved that such deliveries with an increase in the number of vehicles that simultaneously used for a single delivery cannot be effective, if a discount is not given for the cost of such a delivery. The necessary and sufficient condition that sets the threshold level of the discount, at which the deliveries by several vehicles are able to compete with the traditional solutions, is established. The cases of numerical calculations are presented in the article.
Keywords: transportation; EOQ models; economic order quantity; vehicle capacity; inventory management; EOQ; multinomenclature models; supply chain management; SCM; deliveries using several vehicles; cost optimization.
A partially backlogged supply chain model for deteriorating items under reverse logistics, imperfect production/remanufacturing and inflation
by Swati Sharma, S.R. Singh
Abstract: Reverse logistics increasingly conquered interest in the past decade. It consists of operations related to the reuse of products, such as the collection of products from end users and general processes such as reusing, repairing, and recycling. In this paper, a reverse logistics supply chain inventory model in an inflationary environment is developed. Production and remanufacturing rates are finite and variable. During the production (remanufacturing) process some imperfect quality products are produced (remanufactured), which are reworked after production (remanufacturing) run. Items deteriorate over time with time-varying deterioration rate. Many classical reverse logistics supply chain models are developed with constant demand rate and ignoring the shortages which are not true all the time in practical life. Therefore, in this model, it is assumed that the demand rate of the buyer is a function of on-hand inventory and selling price. Shortages are allowed only for the buyer and partially backordered with a time-dependent backlogging rate. The purpose of this study is to determine the optimal integrated reverse logistics supply chain policy. Finally, numerical examples and sensitivity analysis along with some decision-making implications are provided.
Keywords: Reverse logistics; supply chain; Weibull deterioration; imperfect production/remanufacturing; inflation; shortages.
A One-Warehouse/Multiretailer Inventory System with Lost Sales, Erlangian Lead Times, and Emergency Shipments
by Hamed Tayebi
Abstract: We consider a two-echelon inventory system with one central warehouse and a number of retailers. Retailers replenish their stock from the central warehouse, and the central warehouse, in turn, replenishes its stock from an external supplier. In case of a stock-out at the warehouse, the external supplier replenishes retailers stocks by emergency shipments. The warehouse and retailers apply a base-stock ordering policy and unsatisfied demands at retailers will be lost. We assume that lead times of retailers are Erlangian distributed. If the base-stock level is larger than one, under the realistic assumption that the replenishment orders do not cross in time, the Erlangian lead times become stochastically dependent. This dependency will affect the optimal base-stock levels at retailers and, consequently, the optimal base-stock level at the warehouse. In this paper, by applying stochastic process and queuing theory concepts, we obtain the stock-out frequency at the retailers, estimate the demand rate at the warehouse, and calculate the total cost function of the inventory system. We also present an algorithm to compute the optimal base-stock levels at the warehouse and retailers. Our numerical study illustrates that the sequential supply system cannot be ignored, and if we ignore lead times dependency, an unexpected extra cost will be incurred in practice, which is very sensitive to the shape parameter of the Erlangian lead times.
Keywords: Two-echelon inventory system; Base-stock ordering policy; Lost sales; Stochastic lead times; Emergency shipments.
A bi-objective model for humanitarian logistics network design in response to post-disaster
by Mahshid Zanganeh, Sadoullah Ebrahimnejad, Amirhossein Moosavi, Hamed Tayebi
Abstract: Disaster management is a broad topic consisting various operations to recover victim regions of natural disasters, such as Disaster Relief (DR) and post-disaster operations. Regarding the considerable importance of sufficient and on time assistance for affected people, this paper investigates the Humanitarian Logistics Network Design (HLND) that allocates and distributes the DR resources to affected areas. In this study, a bi-objective Mixed Integer Linear programming (MILP) model has been proposed that maximizes lifesaving utility function of wounded people and minimizes the consequences of aiding to affected people with delay. Since the required data for decision-making are changing over the time, rolling horizon approach and time-space network have been linked to each other in order to deal with the dynamic essence of this problem. Eventually, we have studied a real case study of Sichuan to evaluate the proposed MILP model. According to the computational results, assignment of DR resources satisfies 57.4%, 43.8%, 57.5% and 14.6% of the demands in Dujiangyan, Wenchuan, Beichuan, and Qingchuan cities only 20 hours after the natural disaster, respectively.
Keywords: Resource Allocation and Distribution; Humanitarian Logistic; Disaster Management; Rolling Horizon Approach; Time-Space Network.
Optimum weighbridge locations in container terminals
by Yavuz Keceli, Mehmet Oguz
Abstract: Weighing of containers is an important task in container terminals, and can lead to operational bottlenecks if it causes long queues. This study develops a simulation model to compare different container terminal layouts in terms of weighbridge location. The results indicate that when weighbridges are located at the gates rather than inside the terminal area, this causes shorter queues and leads to shorter truck turnaround times.
Keywords: weighbridges; optimum weighbridge locations; container weighing; operational bottlenecks; container terminals; terminal layouts; truck turnaround times; simulation models.
Goal programming and Data Envelopment Analysis approach to disaster relief supply chain design
by Jae-Dong Hong, Kiyoung Jeong
Abstract: The objective of this paper is to present and demonstrate the use of Goal Programming and Data Envelopment Analysis (GP-DEA) framework for the Disaster Relief Supply Chain (DRSC) design problem to help decision-makers who are responsible for disaster planning and management activities. For this, we develop a GP model with multi-objective functions, and each of the results−DRSC layouts−from the GP is considered as a decision making unit (DMU) to be evaluated by DEA. The impacts of the emergency relief facilities (ERFs) and the distribution channels between the facilities are evaluated and quantified concerning the efficiency and robustness. A case study using historical data in South Carolina is analyzed with the framework. We identify that GP-DEA framework optimizes and evaluates DRSC layouts without any subjective judgment from decision-makers. Further, we also identify that the performance of DRSC layouts is the most significantly determined by the performance of the distribution channels in the layouts. If any DRSC includes more influencing channels, its performance improves in terms of the efficiency and robustness. We claim that our study proposes an innovative step towards the DRSC design problem. Decision-makers can significantly improve their insights and options for a better DRSC design by using the proposed framework and the results of this study.
Keywords: Data envelopment analysis; Goal programming; Disaster relief supply chain; Logistics network design.
Product driven system for the optimal assignment of warehouse locations
by NAJLAE ALFATHI, Abdelouahid Lyhyaoui, Abdelfettah Sedqui
Abstract: The assignment of locations is one of the warehouse management pillars. This paper presents a new method for assigning to each product, the optimum location relative to the product and to the location assignment system. To achieve this objective, we propose the integration of an infotronic technology carried by product. By this, the product becomes smart and able to find the best location where it must be stored. We consider each empty location or set of empty locations a section called critical section. Thus, by being intelligent, the smart products must manage the access to these sections. We have applied the solution to manage the locations assignment in a steel coil warehouse. Thus, we have validated that piloting by product allows optimal management of locations assignment.
Keywords: Product driven system; Smart product; Infotronic technology; assignment of location; critical section; warehouse.
Inquiry into Reverse logistics and a decision model
by Padmanabh Balasubramanyam
Abstract: A process in which a product is moving in reverse along the supply chain network is called as Reverse logistics. The objective of Reverse logistics is to recapture the value of the final product. Reverse logistics is gaining ground because of its importance in managing a closed loop supply chain.
Companies across the world are showing concern about environmental degradation and are realizing the need for sustainable development. Many countries have already passed legal regulations.
Good Reverse logistics process indicates lot of reuse, recycling and reducing the material consumed, thereby ensuring sustainability. Improving Reverse logistics will result in increase in sales up by 10 percent, a reduction in the supply chain costs by 25 to 40 percent. In retail sector the profit margins are less and strengthening Reverse logistics can increase the profit margins.
This paper attempts to inquire into the Reverse logistics area and come out with the prioritized variables impacting the different Reverse logistics disposition decisions. The paper attempts to propose a conceptual model for Reverse logistics disposition decision.
Keywords: Supply Chain Management; Closed Loop Supply Chain Management; Reverse Logistics.
Presenting a model for decoupling Points in Supply Chain Networks
by Alireza Alinezhad, Abolfazl Kazemi, Mojgan Khorasani
Abstract: The decoupling point (DP) is gaining attention as a significant factor in design and management of supply chains. The DP divides the part of the supply chain oriented towards customer orders from the part which is based on forecast planning and it can be stated that DP separates production process from lean production system to agile system. So, we can use the advantages of both production systems. Position of the decoupling point is a key factor that influences the design and management of a supply chain. In this study, we describe determination of decoupling point as a multi objective decision making (MODM) problem, and our objectives are minimization of production cost, production delivery time and maximization of customer satisfaction. We use NSGA II for determining Pareto optimal solution to extract some solution concepts. Finally, a numerical example is applied to validate applicability and feasibility of the proposed model and performance of the developed algorithm.
Keywords: Decoupling Points; Lean and Agile production system; MTO and MTS strategies; MODM; NSGA II.
A new tool for generating scenarios in container terminals
by Iñigo L. Ansorena
Abstract: This article presents a new tool for generating scenarios in container terminals. The tool simulates the arrival of vessels at container terminals. Each new ship call is modelled with eight variables that are crucial to produce scenarios of high practical relevance. Four variables describe the characteristics of container ships (demand) while the other four describe port performance (service). Then the tool generates random numbers from these variables. The random numbers are generated according to statistical distributions. Then the tool detects a failure if the generated number (output) is out of a range of tolerance. The number generator is the first step to develop a complex simulation model which might be used to cope with berth planning and crane scheduling problems in the future. The structure of the generator discussed here is general enough to be applied to any container terminal.
Keywords: simulation; container terminals; failure rate; port performance; service-demand.
Integrated Inventory System with Freight Costs and two types of Quantity Discounts
by Ivan Darma Wangsa, Hui Ming Wee
Abstract: In this paper, we investigate an integrated inventory model for single supplier-buyer considering stochastic demand. We consider two quantity discounts with freight environment. The objective is to minimize the integrated total cost incurred by the supplier and buyer. Freight costs are the function of shipping weight and distance with two transportation modes: truckload (TL) and less-than-truckload (LTL) shipments. We develop two optimal models considering all-units quantity discount and incremental quantity discount. The study shows how freight costs and the two discount policies affect the total cost of the supplier and the buyer. Numerical examples are used to illustrate of two models.
Keywords: Integrated inventory; TL and LTL; stochastic demand; all-units quantity and incremental quantity discounts.
Ranking the obstacles of green supply chain management using fuzzy approaches of TOPSIS and DEMATEL With a case study in a pharmaceutical industry
by Arash Shahin, Behzad Masoomi, Mohammad Ali Shafiei
Abstract: The aim of this study is to analyze and prioritize the obstacles of green supply chain management (GSCM) in the pharmaceutical industry. For this purpose, the obstacles of achieving GSCM have been identified and ranked via fuzzy TOPSIS and DEMATEL approaches. Statistical population consisted of 155 managers, employees and customers of Vetaque Pharmacy Company. Fuzzy DEMATEL technique has been employed for prioritizing the obstacles and identifying their causalities. Findings indicate the first to third priorities as the lack of environmental knowledge; unbelief about environmental advantages and green production; and lack of government support in policy making consistent with the environment. The applied fuzzy DEMATEL approach resulted in segmenting obstacles into some meaningful portions in order to effectively facilitate decision making on prioritizing obstacles for improvement.
Keywords: Green supply chain management; Obstacles; Pharmaceutical industry; Fuzzy TOPSIS; Fuzzy DEMATEL.
Truck Scheduling Problems in the Cross Docking Network
by Warisa Wisittipanich, Takashi Irohara, Piya Hengmeechai
Abstract: Cross docking is a logistic management strategy for reducing storage level, inventory management cost, and customer delivery lead-time. In the large distribution network in which products are transferred through one or more cross docks, the decision of whether to synchronize inbound and outbound trucks for the whole network is crucial since it significantly impacts on supply chain performance. This study presents the novel mathematical model of truck scheduling problem in the cross docking network consisting of several cross docks and addresses the importance of synchronizing the truck schedule in a network as a whole. The model is formulated as Mixed Integer Programming (MIP) with an objective to find the optimal truck schedule and product transshipment to minimize the makespan. The results demonstrate that simultaneously optimizing truck schedule throughout the network improves the solution quality compared to those obtained from model that optimizing the truck schedule in each cross dock sequentially.
Keywords: Multiple Cross Docking; Cross Docking Network; Truck scheduling; Makespan.
Assessment of the Physical Internet Enabled Urban Logistics Using Agent-Based Simulation
by Long Zheng, Pieter Beem, Ki-Hwan Bae
Abstract: The Physical Internet (PI) is a new paradigm in logistics to aim for more efficiency and sustainability via the shared use of hubs and transports as well as the consolidation of shipments. This study investigates the potential of an open mobility web, designed on the principles of PI, in an urban area with e-commerce warehouses. Our motivation is to understand benefits gained by incorporating PI into existing logistics networks. To that aim, a multi-agent based simulation model is developed to demonstrate the efficacy of our proposed solution approach in this modelling framework. Four transportation scenarios simulate a range of advancements from the traditional logistics to PI. The computational results using real data indicate that the PI-enabled mobility web outperforms the traditional logistics on most performance measures of time and cost. We conclude with implications for logistics stakeholders, and discuss limitations and extensions of this study.
Keywords: agent-based simulation; physical internet; urban logistics; interconnected transport logistics; freight transportation.
Sustainable Supply Chain Management: A literature review of recent mathematical modelling approaches
by Janya Chanchaichujit, Quynh Chi Pham, Albert Tan
Abstract: This research maps and defines the modelling approaches and mathematical techniques that have been used in solving supply chain problems in various industries. Therefore, mathematical tools and techniques utilised in sustainable supply chain management research in each industrial sector will be identified, thereby opening up directions for future research. The aim of this research is to review publications in order to examine how various industrial sectors use different modelling approaches to achieve a sustainable supply chain.
Keywords: Sustainable supply chain management; Mathematical modelling approach; Simulation method; Heuristic method; Hybrid model; Analytical model.
Enhanced optimal inventory control policies of perishable products in a retail business: a comparative simulation study under different cost structures
by Naleak Heng, Navee Chiadamrong
Abstract: This paper experiments different replenishment policies of perishable products using simulation-based optimization approach. The main contribution of this study is to recommend the best replenishment policy and whether enhancing a typical periodic review policy can lead to a better outcome. It was found that enhancing a typical periodic review policy with a backroom and a reorder level can lead to a higher net profit. In some instances, integrating both of them together can outperform implementing them alone, as they can complement each other. The finding also suggests that enhancing the base policy by screening out bad items before reaching the customers may not be so cost-effective if the removed items cannot be sold to generate extra revenue or the loss of goodwill is not the main concern. These findings can help shop managers to make right decisions on the optimal inventory policy in a certain situation under an uncertain environment.
Keywords: perishable products; inventory control; retail businesses; replenishment policies; simulation-based optimisation.
Impact of Transaction Costs on Supply Operations and Price Competitiveness in Wholesale Marketing: A Study in Reference to Mexico
by Rajagopal , Ananya Rajagopal
Abstract: Transaction costs make significant impact on determining the logistics and inventory costs in a consumer wholesale products companies. Effective management of transaction cost help companies ensure competitive prices and induce loyalty among the consumers. This paper aims at analyzing the transactions costs and its relationship with wholesale prices. This study critically examines the previous studies on transaction cost approach of wholesaler firms in reference to the cost incurred in their brands using direct-to-customer strategy than having it provided through the retailers. Data in this study has been conducted in reference to two large wholesale outlets in Mexico City. It is argued that wholesaler brands can effectively reduce uncertainty of supplies and increase satisfaction level the pricing expectation. Large wholesaling firms reduce their transaction costs by lowering the margin spread among the suppliers and obtaining supplies nationwide from a limited number of suppliers.
Keywords: Transaction cost; wholesale price; logistics cost; inventory management; customer satisfaction.
A Study of Criteria for Air Cargo Terminal Classification Model
by Treephis Rodbundith, Kamonchanok Suthiwartnarueput, Pongsa Pornchaiwiseskul
Abstract: For global air cargo movement from airport to airport, air cargo terminal is a key success of airlines and air cargo transport at airports. This study is aimed to explore important criteria to air cargo terminals on the new integration of relevant and reviewed variables from academic researches and International Air Transport Associations regulated standards. To examine variables, the investigation of criteria significance is based on opinion and endorsed by 57 air cargo terminal operators covering 474 terminals around the world. Thereafter, the methodology is to evaluate the endorsed criteria and employs Principal Component Analysis for criteria reduction onto correlation and similarity conditions by factor loading scores above 0.6. The remaining criteria are finally re-validated by aviation experts executed into 9 main criteria with 44 sub-criteria. Moreover, the finding of air cargo terminal classification model is tested to cluster air cargo terminals in Thailands major airports with the results of 3 classification. Also, the guideline with factor loading scores from significant criteria is developed for air cargo industry for business investment and decision making purposes.
Keywords: air cargo terminal; criteria and classification; cluster analysis; international air transport association; principal component analysis.
Supply Chain for Sustainable Renewable Energy from Biomass
by Jirasak Ji, Narameth Nananukul
Abstract: A sustainable-energy policy requires the development of economical and sustainable renewable energy systems. The most important step is to ensure that the renewable resources will be efficiently utilized. Biomass is considered a renewable energy resource that is abundant in agriculture-based countries. This research focuses on the feasibility of developing a sustainable resource supply chain plan, by using available biomass as a resource for producing electricity in the Loei province, Thailand. A mixed integer linear programming model has been proposed to determine suitable locations for the biomass power plants, the optimal biomass production, and supplier allocation that result in the lowest operating cost to meet the electricity demand. The availability of different types of biomass, different modes of transportation, and electricity consumption in the Loei province is used to develop the optimization model. An extended model is also proposed to deal with the perishability of biomass. The proposed models can be used and applied by decision makers to perform different types of analysis in order to assist decision making on the location of biomass plants as well as in the distribution plan. The computation results are provided to show how the proposed models can be used to determine the operational plan for using biomass as a renewable resource in the Loei province.
Keywords: biomass; supply chain optimization; biomass power generation; Loei; Thailand.
The Relationship Between Green SCM Practices and Organizational Performance: Evidence from Jordanian Pharmaceutical Manufacturers
by Loiy Bani Ismail, Mohammad Alawamleh, Khaled Aladwan, Ammar Abu Alragheb
Abstract: This paper seeks to explore the effect of green supply chain management practices (GSCMPs) (reverse logistics and green procurement, manufacturing and distribution practices) on the organizational performance (OP) of pharmaceutical manufacturers in Jordan. A questionnaire was designed and distributed randomly among 100 employees of Jordanian pharmaceutical manufacturing organizations. A total of 88 responses were received, of which 79 were usable. The study moves beyond description of the effects of GSCMPs on Op to offer a theoretical model explaining these effects. Thus, it responds to a number of contemporary challenges in Jordan, most importantly the broad need for a solid organizational foundation for the study of GSCMPs and the explanation of mechanisms through which GSCMPs affect OP. The results indicate clearly that GSCMPs collectively and individually affect OP.
Keywords: Green supply chain management; SCM; organizational performance; green procurement; green manufacturing; reverse logistics.
An Integrated Terminal Operating System for Enhancing the Port Security
by Hokey Min, Yong-Kon Lim, Jong-Won Park
Abstract: As a vital link in the global supply chain which dictates the movement and storage of cargo containers at the entry point of a seaport, a seaport terminal can have a profound impact on port security. In particular, a lack of business intelligence about containerized cargo flows coupled with the failure to inspect containerized cargo can cause serious security problems, because unmonitored cargo containers can be used as a tool for bringing illicit contents (e.g., narcotics, explosives, contraband, vermin, toxic pollutants, illegal immigrants, dangerous terrorists) into the port of entry. To prevent or mitigate any illegal activities associated with containerized cargo flows across the vulnerable links of a maritime logistics chain, we propose an integrated terminal operating system (ITOS) that can enhance business intelligence/surveillance throughout the terminal operating process by tracing and monitoring every single movement and storage of incoming cargo containers, while coordinating and synchronizing the entire terminal operations such as the loading/unloading, discharging, and transferring of containerized cargos at the terminal. In addition, to maximize the usefulness of the proposed ITOS, we embed the ITOS within the business analytics framework, while formulating viable strategic options for enhancing the securities of terminal operating companies and their multiple stakeholders such as carriers, shippers, and port administrators.
Keywords: Maritime logistics; global supply chain risk; port security; integrated terminal operating systems.
Cost-based evaluation of different processing rules for backlog and load-building queues in multi-echelon supply chains
by Tarek Al-Hawari, Khalid Aram, Hazem Smadi
Abstract: Backlog and load-building queues introduce delay to supply chains which increase the expected lead time of orders. This study aims to investigate the effects of implementing priority rules on backlog and load-building queues, and the effects of applying different load-building methods on the performance of multi-echelon supply chains based on cost and time measures. Further, the study discovers the impact of improving the lead time of orders on the total cost of multi-echelon supply chains. The study was applied on a two-echelon distribution network that includes one central warehouse, six retailers, and four item types. Customer satisfaction costs were incorporated in the cost structure of the studied network through applying penalties on untimely order deliveries based on delivery windows. A discrete-event simulation model was used to run multiple scenarios of implementing queue priority rules and load-building methods. Results indicated that applying priority rule on backlog queues and altering load building methods are effective in decreasing the average lead time of orders, while they had minimal impact on the total cost of retailers.
Keywords: Multi-echelon supply chains; Simulation; load building; backlog.
Investigating carbon emissions in a production-inventory model under imperfect production, inspection errors and service-level constraint
by Rendy Surya Saga, Wakhid Ahmad Jauhari, Pringgo Widyo Laksono, Anindya Rachma Dwicahyani
Abstract: This paper discusses an integrated inventory model for vendor-buyer system with stochastic demand and service level constraint. The buyers demand follows a normal distribution and the lead time depends upon lot size. The buyer uses a periodic review policy to manage the inventory level. An imperfect production processes and inspection errors are considered in the model. Carbon emissions and energy impacts which are generated from transportation activity and production activity are also included in the model. An incentive and penalty policy are adopted to reduce the carbon emissions generated from supply chain system. The model contributes to the current literature by allowing the inclusion of imperfect production, inspection errors, carbon emissions and setup cost reduction. The objective of the model is to determine the review period, setup cost and the number of deliveries so that the total cost incurred has the minimum value. An iterative procedure is suggested to solve the model. A numerical example and sensitivity analysis are performed to illustrate the application of the model and to show the impact of the changes of key parameters on model behavior.
Keywords: service level constraint; carbon emission; imperfect production; inspection errors; periodic review.
Customers scheduling and clustering as Vendor Managed Inventory enablers
by Mariana Guersola, Maria Teresinha Steiner, Cassius Scarpin
Abstract: The Vendor Managed Inventory (VMI) implementation brings advantages to both vendors and customers, improving service levels and transportation efficiency. This paper aims to propose a two-stages methodology to enable the VMI implementation without Electronic Data Interchange. First, an algorithm is proposed to determine which customers to attend daily, respecting their needs and restrictions while seeking for economies of scale. Then an Iterated Local Search metaheuristic, adapted to the Capacitated p-Median Problem, is proposed to divide the customers into the available trucks. The methodology was applied to a gas distribution case study. Results shown a 20,16% increase in the average quantity of gas delivered per customer, a drop over 90% in delivery delays and a reduction of 31,8% in clusters distances. These results demonstrate that the methodology improves the reliability of the distribution system, ensuring that the VMI implementation brings advantages to all parts involved.
Keywords: Vendor Managed Inventory; Electronic Data Interchange; Capacitated p-Median Problem; Iterated Local Search; Transportation Management; Economies of Scale; Distances Reduction; Delivery System; Liquefied Petroleum Gas; Functional Product.
FACTORS AFFECTING POLICE STATION EFFICIENCY: DEA IN POLICE LOGISTICS
by Zilla Sinuany-Stern
Abstract: This study identifies factors affecting police station performance in Israel. In the first stage, Data Envelopment Analysis (DEA) was used to measure the relative efficiency of 60 police stations, based on two inputs and 16 outputs, including several logistic parameters. In the second stage a Cross Efficiency (CE) measure was then used to rank-scale police stations. We show that CE, which is calculated as the average of its evaluations using the weights of all stations, has a normal distribution. In the third stage, multiple regressions were performed to verify the effect of various logistic and environmental factors on CE efficiency (from the second stage). We found that one logistical factor, the number of vehicles of the population in a stations jurisdiction, was statistically significant. We show that the use of CE in the regression analysis offers a novel approach for dealing with stochastic DEA.
Keywords: efficiency; logistics; DEA; data envelopment analysis; police; police performance; productivity; benchmark; performance; linear programming; statistical inference; regression analyses; Israel.
A new replenishment policy based on emergency orders for a family of products
by Khaled Bahloul
Abstract: This paper considers a two-echelon supply chain with several distribution centres (DCs) and a number of retailers or consumption centres (CCs). Several products are managed and supplied in this chain, but we focus on a family of perishable products (drugs) with a high cost, particularly variable demand and transiting from the same supplier to the same consumption centers. We also assume that the suppliers have an unlimited stock, the delivery time is close to zero (a few hours) and shortages are not authorized at the CCs. In this case, where the constitution of a large safety stock (SS) is not cost-effective, we propose a new ordering policy based on replenishment driven by shortage. This method consists in waiting for a shortage of one product, triggering an emergency order for this product and, at the same time, replenishing other items of the same family. This replenishment policy is based on the mathematical function for calculating the optimal level of each product of the same family by using the probability of not having any shortage before time t. Numerical experimentation compares the total expected costs of the proposed method with a traditional order-up-to-level policy.
Keywords: Ordering policies; Inventory management; Emergency order; Family of products; Cost effectiveness.
Linking IT to supply chain agility: Does knowledge management make a difference in SMEs?
by Alireza Shiranifar, Mohamadhossein Rahmati, Farbod Jafari
Abstract: The purpose of this paper is to examine how information technology (IT) and knowledge management affect supply chain agility in a small and medium-sized enterprises (SMEs) context. Drawing on SMEs, this study hypothesizes and tests the relationship between IT and knowledge management and supply chain agility. Partial least squares-structural equation modeling (PLS-SEM) is performed to test the relationship between the research variables. The results obtained from SEM reveal that IT positively affects knowledge management. The results also indicate that knowledge management and IT significantly affect the dimensions of supply chain agility (demand response, customer responsiveness and joint planning).
Keywords: Information technology; knowledge management; supply chain management; supply chain agility; demand response; customer responsiveness; joint planning; SMEs.
Cannibalization in a Repair/Replacement Inventory System
by Michael Dreyfuss, Alan Stulman
Abstract: In this paper we consider policies for cannibalization in a repair/replacement inventory system where our focus will be the waiting time of a customer in the repair queue. The cannibalization policy will be affected most by the time required to effect the cannibalization and specifically the time required in dis-assembling the functioning components from the newly arrived customer. We will first present a heuristic policy which is calculation intensive and second heuristic which will require far less calculations at each decision point in time. These heuristics, and a comparison between them, will be examined with the aid of simulation.
Keywords: Cannibalization; Waiting Time; Heuristic; Simulation.
Design a Business Intelligence Conceptual Model of Supply Chain Management in Sales
by Ali Bonyadi Naeini, Mehdi Zamani
Abstract: Nowadays, in SMEs, esp. the ones highly dependent on sales of products or services, supply chain management has a decisive and critical role for managers to make intelligent decisions and have high agility to utilize the opportunities in a very competitive environment. Identification of important and effective concepts and aspects in the scope of SCM in such enterprises to enhance the intelligence of managers in decision making processes is the purpose of this paper. In this research, by applying the Grounded theory in the literature review and Structural Equation Modeling (SEM) approach, the relations of main variables are validated thru focus groups and questionnaires and the results have been statistically analyzed to develop a conceptual model. Therefore, with the aid of this model the business managers will be directed to dedicate their efforts to enhance their business intelligence on the indentified variables of the model to make intelligent supply chain oriented decisions.
Keywords: Business Intelligence; Supply Chain Management; Decision Making; SME.
The effect of relational capital on performance: knowledge sharing as mediation variables in supplier and buyer relation
by Ratri Amelia Aisyah, Badri Munir Sukoco, Muslich Anshori
Abstract: Interactions that occur in cooperation within supplier and buyer relationships create good relationships manifested by mutual trust and respect, and good friendships between suppliers and buyers. Relationships based on good intentions and manifested through a number of attributes is known as relational capital. Relationships built on trust, to the cause of friendship between suppliers and buyers, mutual respect and reciprocity are what makes the buyer willing to share knowledge with the supplier. Given this shared knowledge, suppliers can help improve buyer performance. Thus, this study aims to examine the effect of relational capital on performance through knowledge sharing into mediation variables. This research uses a quantitative approach to test several hypotheses through PLS (Partial Least Square) analysis and examines a sample of 48 buyers within the cement industry. The results of this study indicate that relational capital positively and significantly influences knowledge sharing, which then positively and significantly affects the buyer's performance. However, relational capital has no significant effect on buyer performance. Knowledge sharing mediates in full relational capital relationships to buyer performance.
Keywords: Relational Capital; Knowledge Sharing; Buyer’s Performance.
Inventory models for maturing and aging items: cheese and wine storage
by Simone Zanoni, Lucio Enrico Zavanella, Ivan Ferretti
Abstract: The greatest part of literature on inventory models deals with items that preserve their value over time or, at least, deteriorate over time. This paper focuses on a special class of items (defined as maturing/aging items) characterised by the increase of their value over time, when appropriately stored: e.g. items which improve their organoleptic and tasteful characteristics over time. The cases which inspired the present contribution belong to food production and supply, as in the case of matured cheeses (e.g. the well known Parmesan), aged red wines (e.g. the well known Barolo) and aged spirits that, once bottled, acquire value over time. However, other types of products characterised by a maturing/aging process could be further identified. The present study introduces and discusses the inventory problem for this class of items, highlighting its peculiarities and its most relevant features. So as to focus on the several and attractive aspects which characterise the problem considered, an illustrative model is presented, with the aim of identifying the optimal maturing/aging period.
Keywords: aging products; ameliorating items; seasoning products; inventory management.
Design of a Green Supply Chain Network by Considering the Possibility of Storage and Location-Routing Problem under Uncertainty
by Saeede Khalafi, Mahnaz Zarei
Abstract: In the literature of operations research, the subject of transportation of products and services and, specifically, the Vehicle Routing Problem (VRP) have always been on priority as an important field of study. To date, a large number of studies have been done in the field of VRP and its different types, but only few of them have looked at the problem from the perspective of environmental factors. In this paper, considering the importance of environmental issues, a model has been designed for a single-objective green routing problem. Such items as discount, heterogeneous vehicles, and multi-depot distribution centers have been considered in this model, which has been designed in the form of a multi-product and multi-periodic model. Then, the effectiveness of the proposed model was illustrated using the problems generated in different dimensions by means of GAMS software. At the end, the accuracy of the proposed model under uncertainty was evaluated through sensitivity analysis, and the obtained results were indicative of the effectiveness and efficiency of the proposed model.
Keywords: Green supply chain; Location routing problem; Mathematical programming; Fuzzy theory.
GREENING LOGISTICS OUTSOURCING: REASONS, ACTIONS AND INFLUENCING FACTORS
by Pietro Evangelista, Lodovico Santoro, Jukka Hallikas, Anni-Kaisa Kähkönen, Katrina Lintukangas
Abstract: This paper explores the environmental practices carried out in the transport and logistics industry. The study assumes the third-party logistics provides (3PLs) perspective and it examines reasons, green initiatives and factors affecting such initiatives. The research involved a case study analysis conducted on 31 Italian 3PLs. The approach used assumes that green initiatives implemented by 3PLs depends from different reasons. Accordingly, three clusters of companies characterised by different environmental sensitivity were identified. The results indicate that each of the three clusters is characterised by different environmental sensitivity, significant differences about the adoption of green initiatives and different influencing factors. The study findings allow to drawn a number of managerial recommendations for improving the environmental sustainability of logistics outsourcing and potential future research avenues.
Keywords: Transport and logistics service providers; Reasons; Green actions; Drivers and inhibitors; Italian logistics service market; Case study analysis.
A review of medical distribution logistics in pharmaceutical supply chain
by Saâdia KHOUKHI, Chakib Bojji, Yahya Bensouda
Abstract: The management of inventories and the distribution networks of medical supplies and pharmaceutical products are among the most important issues in the healthcare world. Medicines stock-outs and improper use of drugs cannot only result in financial losses but also can endanger patient life. Hence, ensuring patient safety by ensuring the availability of pharmaceutical products is the main objective of all healthcare settings. To achieve this goal, many hospitals transfer managerial practices developed in the industrial sector to the healthcare environment. However, the pharmaceutical supply chain has its specific features. Ignoring these characteristics could hinder the process of implementing supply chain management practices and reduce the expected benefits. This paper presents a literature of operations research models developed for inventory control and distribution management across the pharmaceutical supply chain. For that purpose, this paper begins by classifying the reviewed articles into three main groups: 1) Inventory Management, 2) transportation management, and 3) coordination between inventory control and distribution activities. Starting from an analysis of current literature we intend to discuss different modes of supply chain coordination in a pharmaceutical supply chain. Also, in doing so, we point out potential future research directions. Finally, we shed new light on different enablers and barriers faced by practitioners and researchers when implementing supply chain management philosophy in the pharmaceutical supply chain.
Keywords: pharmaceutical supply chain; OR models; drug distribution; pharmaceutical inventory management; combined inventory management and routing problem.
Optimal Allocation of Rolling Stock in Scheduled Transportation Services
by Sundaravalli Narayanaswami
Abstract: Passenger railway transportation services are planned, in advance. Many services are cyclic with 24-hour periodicity for Suburban (city) traffic and, weekly or longer duration periodicity. Railway operators assign physical cabins and locomotives (together known as rakes) to each service for a specified time duration to operationalise the timetables. Multiple constraints are imposed on such resource allocations and a cost is incurred, each in travel time, empty cabin runs and rake compositions. Some constraints are technical for safe operations and others are for system performance improvement by effective and efficient utilization of resources. Effective utilization requires that all demands be met. Efficient utilization refers to optimal utilization of available resources at minimum cost. A multi-commodity network flow model is developed to optimally allocate the given rolling stock, so that all service requirements are met. The network flow model is computationally expensive in resolving real-life problem instances. Therefore a relaxed model using a simulation based heuristic approach is developed and tested on real data from a division of the Indian Railways. The problem context, model, heuristic approach and solutions are discussed in detail in this paper. Managerial insights that emerged from this empirical study are interesting and are presented.
Keywords: OR in Service Industries; Rolling stock; Optimal allocation; Network flow model; Simulation based heuristic.
Selection of supplier management policies using clustering and fuzzy-AHP in the retail sector
by Nicolas Clavijo Buriticá, Monica Yoshida Matamoros, Felipe Castillo, Esteban Araya, Gerardo Ahumada, Gustavo Gatica
Abstract: Supplier development contributes to supply chain integration and performance, thus playing an essential role in any industry. In the retail market, no formal procedures exist for the selection-assignment of supplier development programmes, meaning that respective management is complex and unclear given actor and requirement heterogeneities. Multi-criteria techniques are currently used for selection and evaluation processes. However, no models exist that integrate clustering and multi-criteria techniques together to efficiently select-assign supplier development programmes. This study proposes a four-phase methodology diagnosis, programme design, assignment, and proposal that considers supplier clustering through K-means and multi-criteria fuzzification. Additionally, case-study analysis of 149 retail suppliers in Colombia clustered businesses into high (8), medium (32), and low (109) risk sets, each of which was assigned tailored development programmes. The obtained results support use of the proposed methodology to improve supply chain performance for organizations with many suppliers requiring development programmes
Keywords: fuzzy logic; multiple criteria analysis; analytic hierarchy process; supplier selection; retail.
Efficient Supplier Selection - a three stage multi-criteria decision making approach
by Bhaskar Gardas, Rakesh Raut, Ayush Shrivastav
Abstract: The qualitative and quantitative factors influence the supplier selection problem. The selection of an efficient supplier is a difficult task and is a multi-criteria decision-making problem. In the present study a three stage, analytic hierarchy process (AHP)-technique for order preference by similarity to ideal solution (TOPSIS)-goal programming (GP) was employed for the evaluation and selection of suppliers. AHP was used for identifying relative weights of the selection criteria, then, these weights were taken as input for TOPSIS methodology for ranking the shortlisted suppliers. GP was used for the quantity allocation. This study is intended to guide the organizational managers for formulating the effective policies and strategies for the effective supplier selection process in the competitive environment.
Keywords: Supplier selection; multi-criteria decision making (MCDM); AHP; TOPSIS; goal programming.
Determination of Green Vehicle Routing Problem via Differential Evolution
by Siwaporn Kunnapapdeelert, Ratchaphong Klinsrisuk
Abstract: This paper presents the comparison of PDPTW (pickup and delivery with time window) and Green-PDPTW (green vehicle routing for pickup and delivery problems, with time windows) by using DE (Differential Evolution) algorithm. The main idea of PDPTW is to design the optimal route for transportation by minimizing the total cost. Green-PDPTW aims to design the route by minimizing the emission of direct greenhouse gases i.e. carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). These two concepts were verified by eight standard benchmark instances. DE algorithm is proposed to design the optimal route for these two problems. The computational experiments demonstrate that designing route by minimizing greenhouse gases emission provides cleaner routes than designing routes by minimizing total cost. However, it is not as economical as considering the minimum total cost as the objective function. Since it requires more vehicles and total distance than route that designed based on the minimum total cost concept.
Keywords: differential evolution; vehicle routing problem; transportation; green logistics.
The capacitated vehicle routing problem revisited: using fuzzy c-means clustering
by Henrique Ewbank, Peter Wanke, Henrique Correa, Otavio Figueiredo
Abstract: Distribution and/or e-commerce companies are facing delivery scenarios with increasing complexity. This paper proposes to simplify complex scenarios and find near-optimal solutions by applying a heuristic approach for solving the capacitated vehicle routing problem with a homogeneous fleet using fuzzy c-means as the clustering technique. It also uses a memetic algorithm to determine the number of clusters and an improved fuzzy c-means algorithm for allocating customers to routes. When benchmarked with other methods and compared with 50 known instances from the literature, it indicated an error average of less than 3 percent. These error results presented a lognormal distribution. Due to the nature of the errors studied, a tobit regression has been applied to predict the average percent error in terms of the characteristics of the demand and the distance of each customer. Results also suggest that kurtosis and skewness of the distances among all customers, capacity of the vehicles, and standard deviation of the demand could be used to predict the average percent error, providing a decision-making tool to apply this algorithm in the future for different instances. When compared with other fuzzy clustering techniques, the use of fuzzy c-means reinforced the idea that distant customers should be almost always served by a single vehicle, even if it is not fully loaded. The proposed method presented short execution times and a percent error of 5%.
Keywords: capacitated vehicle routing problem; cluster-first route-second heuristic; fuzzy logic; homogeneous fleet; tobit regression.
Modelling the environmental impact of omni-channel purchasing in the apparel industry: the role of logistics
by Maria Giuffrida, Riccardo Mangiaracina, Angela Tumino
Abstract: This paper addresses an identified need of quantitative models in the rising field of omni-channel (OC) purchasing sustainability. It contributes with a detailed assessment of the environmental impact of two processes, Click and Collect (C&C) and Mobile Shopping in Store (MSiS), highlighting the weight of logistics activities. An activity-based model is developed and applied to a base case, that best represents the average purchasing process in the apparel industry, considering both the retailers and the customers perspectives. Sensitivity analyses are performed as well. Results show that MSiS is less sustainable than C&C, mainly due to the heavier impact of transport. For both configurations, the most critical parameter is the distance between the customer house and the store, whereas the customer profile and the location of the customer house (urban vs extra-urban area) are additional significant factors for MSiS. The results of this study are also compared to previous research in the field of e-commerce environmental sustainability.
Keywords: omni-channel; environmental sustainability; logistics; click and collect; mobile shopping in store.
Development of an Automobile Industry Risk Index
by Satyendra Kumar Sharma, Ravinder Singh, Vishad Bhalodia
Abstract: The aim of this research is to construct a Bayesian Belief Network(BBN) Model, which encompasses all the risk factors relevant to the Indian automotive sector that can give a fair, empirical idea as to how much the risk factors drive down the gross turnover of the industry.
The BBN model is used to gauge business, economic and external risks and evaluate its impact on gross turnover of the industry. Empirical model draws a lot of implications to streamline the risk effects in the industry, but it clearly shows that the three factors business risks, economic risks and external risks are not entirely independent and are positively correlated with each other.
Bayesian networks provide a very useful risk assessment tool that takes into account the advantages of both quantitative and qualitative risk assessment methods.
This is a novel, empirical effort to provide a generalized model to integrate all risks domestic, global, economic, legal relevant to the automotive industry.
Keywords: Risk Assessment; Automobile Industry; Bayesian Belief Network; Risk Propagation; Sensitivity Analysis.
System optimal relaxation and Benders decomposition algorithm for the large sized road network design problem
by Saeed Asadi Bagloee, Majid Sarvi, Abbas Rajabifard, Russell Thompson
Abstract: Given a set of candidate road projects with associated costs, finding the best subset with respect to a limited budget is known as the Discrete Network Design Problem (DNDP). The DNDP is often cast as a bi-level programming problem which is known to be NP-hard. Despite a plethora of research, due to the combinatorial complexity, the literature to address the problem for large sized networks is scarce. To this end we first dissolve the bi-level problem to a single-level problem by relaxing it to a System-Optimal traffic flow. As such the problem turns to a mixed integer non-linear programming (MINLP) problem. Second, we develop an efficient Benders decomposition algorithm to solve the ensuing MINLP problem. The proposed methodology is applied to three examples, a pedagogical network, Sioux Falls and a real-size network representing the City of Winnipeg, Canada. Numerical tests on the network of Winnipeg at various budget levels demonstrate promising results.
Keywords: Discrete Network Design Problem; Benders decomposition; Bi-level optimization; System optimal relaxation.
Determining an optimal warehouse location, capacity, and product allocation in a multi-product, multi-period distribution network: A case study
by Chau Le, Jirachai Buddhakulsomsiri, Chawalit Jeenanunta, Aussadavut Dumrongsiri
Abstract: This paper addresses the distribution network design problem in a complex 4-echelon supply chain system that includes factories, internal warehouses, external warehouses and customers. The distribution network contains a large number of products, and considers 20 periods of planning horizon. Product deliveries are made using two shipment methods, direct shipment from internal warehouse and through shared external warehouse, to two groups of customers, domestic and overseas, with deterministic demands. The objective is to determine an optimal location of a new external warehouse, its capacity, and product-facility-market allocation so as to minimize the total logistics cost, including transportation and warehousing costs. A real-world large-scale problem from industry is solved optimally using a mixed integer linear programming model. A sensitivity analysis on three key parameters, product demand, unit transportation cost, and unit warehousing cost, is conducted to find the final solution.
Keywords: Facility location; capacity; product allocation; distribution network; 4-echelon supply chain; multiple products; multiple periods; multi-modal; multiple storage types; case study.
Logistics Management Requirements and Logistics Performance Efficiency: The Role of Logistics Management Practices - Evidence from Egypt
by Hend Amin, Tamer Shahwan
Abstract: This study examines the availability of logistics management requirements, i.e., organizational requirements (OR), informational requirements (IR), and human resource requirements (HRR) and their impact on logistics performance efficiency, particularly the mediation effects of logistics management practices in this relationship within Egyptian engineering industries firms. Data is collected based on a survey questionnaire directed to 194 observations within the selected firms. The operating costs average is used as an indicator of the logistics performance efficiency since it measures the efficiency inversely.
Our findings reveal significant variations in managers perception of logistics management concept among the selected firms. The findings also reveal significant differences among the selected Egyptian corporations according to the availability degree of logistics management requirements and practices. At the same time, the study partially supports the significant impact of logistics management requirements on logistics performance efficiency where logistics management practices play full and partial mediating roles in this relationship.
Keywords: Logistics Management Requirements; Logistics Management Practices; Logistics Performance Efficiency; Emerging Markets; Egypt.
Collaborative last-mile delivery and pick-up in city logistics
by Aishwary Bhasker, Sarada Sarmah, Taebok Kim
Abstract: Collaborative strategy helps city planner and logistics companies to plan for last-mile delivery and pick-up strategy such that it reduces fuel consumption and thus pollution within the city. This paper proposes a mathematical model to evaluate fuel consumption for a routing plan in last mile delivery (or pick-up) for non-collaborative (or traditional) and collaborative strategy. Comparing both the scenario for last-mile delivery and pick-up, the latter strategy outperforms the former with 19.02% reduction in fuel consumption. Results are also analyzed in terms of total carbon emission caused by vehicles of individual companies. Sharing of surplus among the companies due to collaborative strategy is also presented in this study. Furthermore, the paper assesses the implementation of an electric fleet of vehicles in the context of collaborative urban transportation of goods and determines corresponding energy consumption. The results exhibit an improvement of 24.16% in electric vehicles (EVs) in a collaborative scenario compared to diesel vehicles.
Keywords: City logistics; Collaboration; Vehicle routing; Fuel consumption; Electric vehicles.
IT Adaptation in Sugar Supply Chain: A Study at Milling Level
by Rupesh Kumar
Abstract: The purpose of the study is to catalog issues in the sugar supply chain at the procurement and sugar production levels. By a review of prior art and expert panel discussions, certain issues were identified for the facilitation of e-Applications in the sugar production process. The relevance of the issues identified was checked by conducting a field survey. A total of 30 sugar mills in the states of Uttar Pradesh and Uttarakhand, India were targeted, and 120 were collected from the mill managers to identify issues at procurement and sugar production stages. For checking the scope of IT applications, a total of 180 respondents were collected from 120 mill managers and 60 employees of IT companies who provide supply chain IT solutions. On the basis of the findings, the paper proposes certain IT solutions for solving the identified issues which will help in improving sugar cane processing at the sugar production level.
Keywords: Supply Chain Management; Sugar Mills; Procurement; Sugar Production; Factor Analysis; ANOVA; Information Technology.
Reverse logistics practices in Indian pharmaceutical supply chains: A study of manufacturers
by Haidar Abbas, Jamal A. Farooquie
Abstract: In the era of integration and globalization, considering oneself as an independent profit making entity is like believing in a zero sum game. Under the challenges like constantly increasing customers expectations, fierce competition, high product variety, shrunk product life cycles etc. a better option for companies is to win the customers delight (eliminate/reduce their dissonance) as well as recapture the value by their efficient reverse logistics process. Such provision becomes of utmost important when it is related with costly and health &/ life affecting products like medicines.
Thus, this study aims to explore the reverse logistics operations of companies manufacturing the medicines in India. Using suitable statistical tests, the data collected online from sixty five (65) senior level managers/entrepreneurs have been analysed in order to identify and examine the various reverse logistics practices, drivers and barriers of reverse logistics, and the performance parameters thereof. Redistribute as it is if non-defective, customer satisfaction, lesser predictability about returning medicines and helpful in image building are the most cited practice, driver, barriers and perceived performance indicator respectively. Besides enriching the body of knowledge, the findings of this study are expected to help the governments, regulatory bodies as well as pharmaceutical companies to ensure sustainable development whereby the manufacturers receive their fair returns through ethical, environmentally conscious and socially accountable means.
Keywords: Logistics; Reverse logistics; Pharmaceutical supply chains; Pharmaceutical companies; Reverse logistics in pharmaceutical supply chains.
Determination of Criteria Affecting the Executive Dashboard Design to Support Decision Making in Port Authorities
by Mehmet Oguz, Yavuz Keceli
Abstract: Senior executives of a port authority spend most of their time by collecting information and making individual decisions via the collected information. They need customized decision support systems to support these decisions. It is necessary to develop executive dashboards specific to them although very few of them possess such dashboards. Hence, it is a necessity to determine the criteria needed to design such dashboards for an effective decision making. The purpose of this study is to determine the criteria needed to design executive dashboards for port executives so that they can make effective decisions. Within this scope, a target group study comprising of field experts was conducted, and the data obtained were analyzed with the Delphi technique. Consequently, 61 criteria in total were determined in four different criterion groups.
Keywords: Port Management Information Systems; Customized Decision Support Systems; Port Authority Executive Dashboard; Delphi Technique.
Vertical and horizontal impacts of information sharing on a divergent supply chain
by Mansour Rached, Zied Bahroun
Abstract: Despite the tremendous advancements in communication technologies, convincing decision makers in supply chains to establish cooperation mechanisms remains a challenge. This paper aims to raise awareness among supply chain partners regarding the importance of information sharing by assessing the value of upstream (supplier lead time) and downstream (customer demand) information sharing in a divergent supply chain. Through a simulation study, this work investigates the impact of information sharing on the logistic cost of each link horizontally and vertically and for each cost component for three different structures of the distribution network.
The results show that the warehouse benefits the most from information sharing and should implement revenue-sharing contracts to motivate its partners to share their information. In addition, the gains are not sensitive to the structure of the distribution network, and the retailers gains are proportional to their level of demand and unit holding and penalty costs. Moreover, the holding and penalty costs for the warehouse are sensitive to the sharing of supplier lead time information when only holding costs are sensitive to the sharing of customer demand information at the warehouse and retailers.
Keywords: Information sharing; divergent supply chain; vertical impact; horizontal impact; lead time; demand.
Collaborative transportation and urban routing problems: state of classification and literature
by Mouna ATIK EL FTOUH, Naoufal SEFIANI, Mohamed FOURKA
Abstract: Carriers collaboration is achieved when two or more carriers share their requests and resources in order to reduce their routing costs and increase their total profit. In this article we present a classification of carriers collaborative routing problems according to type of planning (centralized or decentralized) and a review of the most popular routing problems related to city logistics, i.e. Multi Trips (MTVRP), Multi depot (MDVRP), Pickup and Delivery Problem (VRPPD) and loading constraints. Based on an existing taxonomy we review those problems in term of variants, objectives and resolution methods. The aim of this paper is to provide a comprehensive and relevant characterization of carriers collaboration problems in urban context.
Keywords: Carrier collaboration; collaboration problems; routing problems; multi trips; multi depots; Simultaneous pickup and delivery; loading constraints; classification; literature review; urban.
ECONOMIC IMPACT OF THE CRISIS ON ZARAGOZA LOGISTICS PLATFORM (PLAZA)
by Rubén Sainz-González, Ingrid Mateo-Mantecón, Jose Baños-Pino, Susana Val-Blasco
Abstract: Undertaking economic impact studies serves to determine the importance of transport infrastructures to the regions and cities in which they are located. While such studies have focused on large infrastructures such as ports and airports, few have examined logistic infrastructures.
In this paper we calculate the economic impact of Zaragoza Logistics Platform (PLAZA) for 2012 and determine the effect of the world economic crisis on this infrastructure. We study the different levels of economic impact (direct, indirect and induced impacts) and these are measured in terms of employment, wages and gross added value (GVA).
The results show that the infrastructure improved its business performance in 2012, with higher levels of the main variables studied, in comparison with those obtained before the crisis in 2005.
Keywords: Economic impact; Input-Output; logistics platform; PLAZA.
Improving company-wide logistics through collaborative track & trace IT services
by Fabian Dunke, Stefan Nickel
Abstract: Under the objective of improving intra-organizational logistics processes, this paper investigates the use of collaborative IT applications based on track & trace technology. We report on company-wide logistics improvements attained through the introduction of a collaborative track & trace IT solution. In a chemical company, we considered the dependent processes of truck arrivals at the main gate and loading operations at stations inside the site. Without track & trace assistance, uncertainties in processing steps and driving times as well as space limitations lead to uncontrolled truck inflow to stations. To achieve a controllable situation, we developed an online IT application where at gate and station real time data is collected. Based on the data, we employed a site entry control ensuring smooth station operations. Logistics performance indicators such as the average and maximum truck number at the station and site sojourn times of trucks were reduced significantly.
Keywords: logistical systems optimisation; logistics information systems; collaboration tools; information sharing; on-site logistics.
CRITERIA FOR CARRIAGE OF DANGEROUS CARGO CLASS I EXPLOSIVES IN BRAZIL
by Sandra Helena Da Silva De Santis, João Paulo Pereira Marcicano
Abstract: This study proposes a set of criteria for the operational procedures of control, handling and road transport of explosive hazardous cargo, its importance is associated with the performance, which facilitates the movement of volatile and extremely dangerous materials. The objective is to identify the parameters for logistical movement, which preserve environmental safety and obey the rules of law. The proposed framework can guide the movement and maintain the quality of the services. The theme is relevant for socio-environmental security and risk prevention in the logistics process. Thus, to obtain the information was used an exploratory research with qualitative approach obtained by means of secondary data as books, decrees, ordinances, and legislation. The research identified points relevant to the quality of the services in road transport of explosive material.
Keywords: Criteria; Explosives; Handling; Quality.
Reinforced revenue sharing contract thru sharing in sale point by adopting Semi-TDPD
by Mahdi Shafiei
Abstract: In this paper we develop a new coordination contract of manufacturer-retailer in a distribution system. A revenue sharing contract that sharing the revenue between the distribution systems members at sale point as coefficient of product price which integrated Semi-TDPD (Semi Third Degree Price Discrimination) into the model. Semi-TDPD strategy makes it possible to exploit the opportunity of customers behavior that they willing to pay different price to owning the product and bargaining for lower price, by adopting price discrimination strategy. To illustrate the proposed approach, we present some numerical examples. Through these examples we investigate the impact Semi-TDPD on decision variables as well as the well performance of proposed revenue sharing coordination.
Keywords: Revenue sharing; Distribution channel; Pricing; Semi-TDPD; Stackelberg game model.
Rough-Inerval in a Two-Stage Solid Transportation Problems and its Solution
by Akash Singh, Uttam Kumar Bera, Deepshikha Sarma
Abstract: The paper attempts a study on a two-stage formulation of a cost minimization solid transportation problem, where the parameters are considered as rough interval form. A rough interval is based on approximation space and hence the solution of the proposed model obtained with the help of approximation theory. In order to solve the expected value model has been derived and the corresponding deterministic model so obtained is solved with LINGO 13:0 optimization solver. Finally, the methodology and model is illustrated by a simple numerical example at the last.
Keywords: Solid transportation problem; Rough Interval; Expected Value.
Service Quality in Manufacturing Supply Chains: A Bi-directional perspective from Indian SMEs
by Surjit Gandhi, Anish Sachdeava, Ajay Gupta
Abstract: This study investigates the role played by service quality in the supply chains of Indian small-medium manufacturing units and presents models at different junctions which propose and validate that the contributions made by supply chain partners towards service quality lead to satisfaction and loyalty. The research design for this study includes a combination of literature review, exploratory interviews and a questionnaire survey conducted through interview schedule with respondents working in different SMEs situated in Northern India. Both internal and external customer perspectives have been considered. Structural equation modelling has been used for data analysis. Three models showing linkages of manufacturer (manufacturing unit's) service quality with supplier service quality, employee service quality and distributor service quality are developed. The models are empirically tested and are found to be fit. This study would be of interest to SME practitioners interested in strengthening relationships with supply chains partners to achieve win-win situations.
Keywords: Service quality; supply chain; SMEs; service quality factors; supplier; employees; distributor; EFA; CFA; Reliability; Validity; SEM.
Selection of Third-Party Logistics Services for Internet of Things Based Agriculture Supply Chain Management
by SANJEEV YADAV, Dixit Garg, Sunil Luthra
Abstract: Third-party logistics (3PL) service providers can play a major role in the agriculture supply chain management (ASCM) for customer's satisfaction and cost reduction in managing supply chain. Selection of the suppliers is one of the important factors that need to be considered. Since, by deciding best 3PL supplier, competiveness and sustainability of supply chain has been increased. However, this decision become complicated when there is multiple 3PL suppliers having multiple criterion and inaccurate parameters. Moreover, the ambiguity and doubtfulness of expert's opinions enhance the problem. Therefore, a decision making tool based on multi criteria has been used widely as fuzzy-analytic hierarchical process (AHP) approach can be used for selection of best 3PL service providers. The main aim of this research is to develop an outline of different criterion for supplier's selection based on literature review and techniques used for selection of the best 3PL suppliers. Furthermore, this research paper provides a more precise, effective and efficient decision support tool for selecting best 3PL providers. This research may help in increasing the tendency for towards the logistics activities outsourcing to enhance sustainability of IoT-based agriculture supply chain.
Keywords: Third-Party Logistics (3PL); Analytic Hierarchy Process (AHP); Fuzzy set theory; Multi Criteria Decision Making (MCDM); Logistic outsourcing; Internet of Things (IoT); Freight time; Goods and Service.
An Integrated Approach to Order Picking Systems in Warehouses
by Judit Oláh, Zoltán Lakner, Jozsef Popp
Abstract: Locating technologies represent one of the main resource and time saving opportunities of the order picking system. The aim of this study is to examine the two types of order picking strategy used in the warehouse of the enterprise from the perspective of time saving. In order to shorten the picking travel time, a change was initiated in the order of products on the order picking list. The order picking list based on the numerical increase of the original ascending code article international identifier was switched to an order picking list based on the alphabetical order of storage locations. Consequently, preparation based on the desired new order picking list is more effective with higher storage location involvement. Employees performing the order picking system can obtain an ideal route with the order picking list based on the ascending alphabetical order of storage location names.
Keywords: Warehouse management; Order picking list; Order picking system; Time saving; Storage location.
Impact of Technology Based Integrated Responsive Supply Chain on Operational Performance: A Case of a Volatile Market
by Sehar Ishtiaque, Danish Ahmed Siddique, Waqar Ahmed
Abstract: The aim of this paper is to develop a comprehensive model that facilitates an understanding of relationships among information and communication technology, integrative capabilities, operational responsiveness and dimensions of performance in a developing economy. Data were obtain from a survey administered to 140 firrms in the manufacturing industry in Pakistan. Hypotheses testing was done by PLS-SEM using SMART-PLS software. The results show that the best way to achieve operational performance is to better invest in information and communication technology which improves the integrative capabilities along with operational responsiveness, which in turn improves the operational performance. This paper provides insights to many supply chain practitioners to configure their supply chain responsiveness from customer facing to supplier facing through integration.
Keywords: Supply chain integration; supplier operational performance; information and communication technology; operational responsiveness; operational performance; customer operational performance; and PLS-SEM.
Determinants of logistics outsourcing performance among small and medium enterprises
by Joash Mageto, Gerrie Prinsloo, Rose Luke
Abstract: The purpose of this study is to establish determinants of logistics outsourcing performance and their relationship with logistics performance among manufacturing small and medium enterprises (SMEs). The increasing use and challenge of logistics outsourcing require that SMEs establish relationship factors that determine high outsourcing performance to enhance overall logistics performance. Data was collected from 406 SMEs using a structured questionnaire. Factor analysis was applied and four constructs were extracted; three were found to be determinants. Partial least squares structural equation modelling was performed to determine the associations among the constructs. Communication-trust, innovation, and cooperation between the manufacturing SMEs and logistics service providers were identified as key determinants of logistics outsourcing performance. Strong associations were validated between communication-trust, innovation, and cooperation. Only communication-trust was positively associated with logistics performance. The results guide SME managers to promote communication-trust in logistics outsourcing relationships.
Keywords: Logistics outsourcing performance; SMEs; factor analysis; logistics service providers; structural equation modelling; logistics performance; communication; trust; innovation; cooperation.
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 categorisation of conveyor-based and vehicle-based transportation systems. This categorisation 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 categorisation. This survey is our second contribution and aims to identify research directions thus far not sufficiently considered. Finally, having surveyed different domains, the strengths and weaknesses of different transportation system categories are extracted from the literature and summarised. That summary is our final contribution, and is intended as a guideline and support for engineers planning transportation systems. Two main shortcomings in the current literature are identified: Firstly, although recognised as significantly influencing the facility's performance, transportation interruptions are not sufficiently considered. Secondly, relatively few simulation studies compare different categories of transportation systems.
Keywords: automated transportation systems; automated guided vehicle; AGV; simulation; performance analysis; warehousing systems; container terminals; manufacturing systems; semiconductor manufacture.
Analysis of maiden modal shift in coal transportation supply chain using SAP-LAP technique
by Pradeep Kumar, Abid Haleem, Furqan Qamar, Urfi Urfi
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 how a 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 the 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 in understanding 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; ISM.
Corporate social responsibility in supply chain management: a new model approach
by Marek Michalski, Jose Luis Montes Botella, Adam Figiel
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 the consequences for business operations. It is important to pursue alternatives, such as outsourcing, in the process of deciding how to manage CSR and assessing the impact on supply chain management (SCM). We studied the implications of incorporating non-governmental organisations (NGOs) in SCM to achieve CSR goals. A market survey was conducted in Poland among 100 medium-sized and large local and international enterprises. The model developed to test the research questions was specified and estimated using structural equation modelling (SEM). Our research suggests that a CSR framework should be integrated into the company's core business operations as a full member of its SC. NGOs operating within SCs, owing to their experience and knowledge of market 'games', could help identify opportunities for business development.
Keywords: corporate social responsibility; CSR; supply chain management; SCM; non-governmental organisations; NGOs.
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: This article analyses a two-warehouse inventory system for deteriorating items under trade credit policy. In the present model, the deterioration rate of items followed Weibull distribution. Shortages are allowed and are partially backlogged. In this work, a retailer who purchases the items enjoys a fixed credit period offered by his/her supplier and, in turn, also offers a credit period to his/her customers in order to promote the competition. 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.
Optimal selection of modular products in reconfigurable manufacturing systems using analytic hierarchy process
by Kamal Kumar Mittal, Pramod Kumar 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 fulfil the market requirement variety of a modular product, 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 better one component is 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 S.K. Indrajitsingha, P.N. Samanta, U.K. Misra
Abstract: The present paper proposes a fuzzy economic order quantity (EOQ) model for deteriorating items with stock dependent demand rate where shortages are not allowed. The cycle time is divided into two parts. The first interval demand is considered as stock dependent and the second part is assumed to be constant. We first develop a crisp model. Since most of the parameters of the inventory model are uncertain, we consider the demand, holding cost, deterioration cost and deterioration rate as 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: inventory model; triangular fuzzy number; graded mean representation method; signed distance method; centroid method; defuzzification.
Special Issue on: Operations Management of Various Logistics Flows
Comparison of static ambulance location models
by Pieter L. Van Den Berg, J. Theresia Van Essen
Abstract: Over the years, several ambulance location models have been discussed in the literature. Most of these models have been further developed to take more complicated situations into account. However, the existing standard models that are often used in case studies have never been compared computationally according to the criteria used in practice. In this paper, we compare several ambulance location models on coverage and response time criteria. In addition to four standard ambulance location models from the literature, we also present two models that focus on average and expected response times. The computational results show that the Maximum Expected Covering Location Problem (MEXCLP) and the Expected Response Time Model (ERTM) perform the best over all considered criteria. However, as the computation times for ERTM are long, the Average Response Time Model (ARTM) could be a good alternative. Based on these results, we also propose four alternative models that combine the good coverage provided by MEXCLP and the quick response times provided by ARTM. All four considered models provide balanced solutions in terms of coverage and response times. However, the Multiple Response Times Target Model (MRTTM) outperforms the other models based on computation time.
Keywords: Emergency Medical Services; Integer linear programming; Ambulance base locations; Comparative study.
Replenishment behavior in sequential supply chains
by Amin Kaboli, Rémy Glardon, Nicolas Zufferey, Naoufel Cheikhrouhou
Abstract: Inventory managers do not predominantly follow normative optimization models. At best, they introduce a level of bounded rationality in their inventory replenishment decisions. This paper examines the behavior of inventory decision-makers under continuous review in a decentralized supply chain, using an experimental approach with unknown market demand and local information availability. The analysis reveals that not only the magnitude and the variability of order quantity tend to be larger, but also that the order-time intervals is lengthen and highly variable while moving upstream along the supply chain. The role of the inventory managers replenishment decisions on the echelon holding, backorder, and total costs, is also investigated. Finally, a normative model is designed and its solutions are compared to the experimental results. It is observed that humans do not operate in a perfectly optimal way, but are generally reluctant to risk increasing backorder costs and reducing inventory carrying cost, even if this would lead to lower total cost.
Keywords: Behavioral operations management; Continuous inventory replenishment; Supply chain; Multi-echelon network; Laboratory experiment; Inventory management; Cost computation; Optimization; Normative model; Simulation.
A Combined Vehicle Loading and Routing Problem: A Case Study of Fuel Logistics
by Abdelaziz Benantar, Rachid Ouafi, Jaouad Boukachour
Abstract: In this paper, we introduce a model and solve a Multi-compartment Vehicle Routing and Loading Problem with Time Windows (MCVRLP-TW). This problem originates from a real-life application arising in the fuel distribution, where a specific attention is paid to integrate the loading process in the routing problem. There are a heterogeneous fleet of vehicles with multiple compartments and customers with different types of products, which require to be served during defined time periods. The main objective is to satisfy all petrol station demands at a minimal routing and service cost. For the MCVRLP-TW, we begin by describing the problem, providing its mathematical models, which distinguish the loading aspect from the routing problem and proposing an efficient tabu search to solve it. Within the framework of the tabu search, we introduce an efficient feature based on the Kolmogorov-Smirnov statistic to restrict the search process to a set of elite neighbouring solutions. We evaluate the performance of the approach by means of extensive numerical experiments. Furthermore, we analyse a real case under different data sets to demonstrate to our industrial partner the effectiveness of the proposed approach.
Keywords: Vehicle Routing and Loading; Compartments; Time Windows; Tabu Search; Fuel Distribution.
Integrating collaborative and outsourcing strategies for yard trucks assignment in ports with multiple container terminals
by Ahmed Mostafa, Elawady Attala
Abstract: In container terminals, Yard Trucks (YTs) are mostly used for transporting containers between storage yards and berthing positions of vessels. Even though keeping a large number of YTs ensures lower service times especially at peak periods, but this way is not cost-effective for container terminals due to daily volatility of demand. In literature, outsourcing and collaborative strategies have been investigated as alternatives to keep a large number of YTs to alleviate possible bottlenecks arising in peak periods. The outsourcing strategy means renting additional YTs for a container terminal. While collaborative strategy is implemented by sharing YTs among multiple container terminals with adjacent locations. However, these two strategies have been dealt with separately in literature. This paper presents a new MIP model which considers the two strategies simultaneously. The proposed model is solved using a rolling horizon heuristic. Numerical experiments are performed to evaluate the performance of the proposed approach.
Keywords: Yard truck; Logistics; sharing; collaboration; outsourcing; rolling horizon; container terminals.
A new approach for ordering decision under uncertainties: A case study in the retail supply chain
by Mohamed Bahroun, Slim Harbi, Hanen Bouchriha
Abstract: Many retailers experience significant losses due to out of stock (OOS) risk. A thorough analysis of a case study has revealed that this situation depends on three main factors: First, the demand and supply risks, second the responses of customers to on shelves OOS and third the behavior of managers facing these risks. This exploratory and theoretical research focuses on the modern retail supply chain risks associated with the supply side and the demand side and highlights the impact of these risks on the on shelves OOS and the total cost of lost sales (TCLS). While the literature on supply chain risks is growing, there is a lack of realistic support tools for the prediction of the supply risk when the order size and the delivery lead-time are dependent decision variables. The problem presented here, and the way in which it is addressed, is different from similar problems in the literature. We do not merely assume the lead-time to be a random exogenous variable, but we include the impact of the order size decision on the delivery lead-time and use the result to predict the supply risk. We propose a new approach for ordering decision under supply and demand uncertainties. This approach considers a new method to predict the supply risk and proposes a realistic estimation of the TCLS taking into account the responses of customers to OOS. Some numerical examples from a real case study are presented to illustrate the proposed approach.
Keywords: Modern retail supply chain; supply risk; demand risk; lost sales; out-of-stock; and consumer behavior.
An integrated approach for robust inventory routing problem in a three-echelon distribution system
by Seyed Mohammad Gholami-Zanjani, Masoud Rabbani
Abstract: This paper introduces the robust inventory routing problem with finite time horizon in three-level distribution systems considering uncertain demand and transportation cost. The vendor is responsible for replenishing distribution centers and distribution centers replenish geographically scattered customers. The products are distributed by capacitated vehicles and, depending on the decision variables, multiple vehicles are assigned to each distribution center. The inventories are kept both in distribution centers and customer sites. The objective is was to find a combined transportation and inventory strategy and minimize system cost while meeting the demand of each customer without shortage and ensuring feasibility regardless of the realized demands and transportation cost. The proposed system is integrated by a mixed integer linear programming (MILP) formulation for deterministic case of the problem. Moreover, the corresponding robust counterpart is formulated with regard to three different techniques of box, polyhedral and interval-polyhedral and analyzed using adjustable uncertainty parameters on a test bed. Finally, to cope with intractability of large size problems, an imperialist competitive algorithm is developed by genetic algorithm operators.
Keywords: Inventory Routing Problem; Distribution; Logistics; Robust Optimization; Imperialist Competitive Algorithm.
A cross-border, long haul freight transportation problem with transhipments
by Jorge Pemberthy, Juan Muriel, Alexander Correa
Abstract: Transportation networks have become the major lifeline of modern societies, not only ensuring individual well-being, but fostering economic growth through fast and reliable transportation activities. Moreover, the direct relationship between transportation and economic productivity and the steady rise of transnational commercial agreements represent a unique opportunity for developing countries to boost their economies. This paper presents a long-haul, transnational, cross-border transportation problem with transhipments applied to a transportation carrier in Colombia, Latin America. The company faces a combination of challenges that are still rare in the literature such as time windows, a vast fleet and different transportation regulations among different countries. The problem is solved using a combination of simulation and a metaheuristic, which was tested by using two types of heuristics to generate the initial feasible solution. The proposed methods proved its superiority over the solution approach applied by the carrier, showing that significant gains can be obtained.
Keywords: metaheuristics; simulation; distribution logistics; vehicle routing.
A Service Network Design Model for an intermodal rail-road freight forwarder
by E.L. Hassan LAAZIZ, NAJIBA SBIHI
Abstract: Intermodal transportation has known a great development recently as a consequence of the development of container transportation services. The development of gateways infrastructures (ports, airports) but also the extension of gateways to dry ports has led to the development of intermodal logistics networks that requires research for the optimization of their infrastructure design and their services configuration. The service network design problem of a network performing intermodal rail-road freight transportation consists of the determination of the services to operate on the network and their frequencies while minimizing cost and maximizing service level. The purpose of this paper is to present a model for the service network design problem in the case of intermodal rail-road container freight transportation. This model is based on a capacitated fixed charge path formulation. It gives as outcomes shipping flows, service frequency as well as the required capacity and loading plans in the intermodal terminals.
Keywords: Intermodal transportation; rail-road; Service Network Design; consolidation; freight forwarding; combinatorial optimization; Mixed integer linear program.
MODEL OF SHARED DISTRIBUTION OF NEWSPAPERS AND E-COMMERCE
by Felipe Brum De Brito Sousa
Abstract: The availability of news and reading online through smartphones, tablets and computers has reduced the sale of newspapers in the world. On the other hand, the logistics express cargo (characteristic of e-commerce models) grows every day making use of optimized outsourced resources, a situation that will be accelerated in the future with the same-day delivery. This study aims to develop a model for planning the shared physical distribution of newspapers and e-commerce products for use in the logistics operator. It proposes an allocation problem multiperiod loads and not a typical routing problem as in most road logistics studies. Its resolution will be performed by discrete optimization (vehicles and entire cargo) through Integer Linear Programming, through mathematical modeling and processing in Matlab, in which scenarios of outsourcing physical distribution are analyzed, taking into consideration the impact of an increase in demand coming in profitability, penalties revenue by charging postponements, cost variations by including extra fleet, introduction of contractual penalty for not carrying any product, and tests with varying postponement times of shipments.
Keywords: shared logistics; mathematical modeling; newspapers; e-commerce.
Green Supply Chain Management Adoption in Lebanese Manufacturing Industries: An Exploratory Study
by Richard Saade, Mira Thoumy, Omar Sakr
Abstract: Abstract: This paper bases itself on the dual factor theory to study the motivators, barriers and hygiene factors affecting the adoption of Green Supply Chain Management (GSCM) activities in Lebanese manufacturing industries. Out of 60 Lebanese companies that have already taken green initiatives, 37 were analyzed. The paper reveals that GSCM adoption is positively correlated with marketing opportunities, market motivators and manpowers involvement. We also found that the external stakeholders pressure and the lack of government support hinder the GSCM adoption Moreover, ISO 14001 certified companies have shown a higher rate of adoption of GSCM.
Keywords: GSCM; green supply chain management; motivators; barriers; hygiene factors; dual factor theory; manufacturing industry; Lebanon.
Supply Chain Risk Inter-relationships and Mitigation in Indian Scenario: An ISM-AHP Integrated Approach
by C.R. Vishnu, R. Sridharan
Abstract: Supply chain risk management analyses and controls both internal and external supply chain risks through coordination/collaboration of supply chain partners to ensure profitability and business continuity. Be it internal or external, successful mitigation of these risks has always been a serious concern in the pursuit of customer satisfaction. The impact potential of these supply chain risk factors varies significantly as a result of their inter-relationships which further decide the selection of mitigation strategies. In this paper, we investigate the interdependence among the various supply chain risk factors that are prevalent in the Indian context by developing an Interpretive Structural Model (ISM). Unlike a generic ISM, the proposed model incorporates the strength of the inter-relationships by deploying colour codes and a differential rating scale. Furthermore, we propose a group decision-making framework based on analytic hierarchy process for the prioritization and selection of appropriate mitigation strategies. Finally, a case study is also presented to illustrate the proposed framework.
Keywords: supply chain risk management; risk inter-relationships; ISM; MICMAC; AHP; risk mitigation.
Redesigning a Transportation Network: The Case of a Pharmaceutical Supply Chain
by AFAF HAIAL, Abdelaziz Berrado, Loubna Benabbou
Abstract: Designing transportation networks as one of the most important decision problems in supply chain management has become the focus of research attention in recent years. This paper introduces a framework which deals with the design of a transportation network for pharmaceutical supply chains. It consists of three steps: (i) identifying the configuration of the current distribution network, (ii) designing an optimal distribution network while determining the appropriate location-allocation decisions, and (iii) choosing the most appropriate transportation network through the application of the appropriate multi-criteria decision analysis method (MCDA). The proposed framework is illustrated in redesigning a transportation network for a pharmaceutical supply chain.
Keywords: Pharmaceutical products supply chain; Supply chain Transportation network; Location-allocation; Multi-criteria Decision Analysis.
Using a Kanban system for multi-echelon inventory management: the case of pharmaceutical supply chains
by Malak Mouaky, Abdelaziz Berrado, Loubna Benabbou
Abstract: This paper explores the implementation of a Kanban system within a multi-echelon pharmaceutical supply chain. The article tackles the multi-echelon supply chain problem and the role of collaboration to enhance its performance specifically while using a pull system. The study provides also insights on the different existing Kanban systems that were created to overcome the difficulties and challenges faced by the traditional Kanban system. This paper presents how a Kanban system could manage pharmaceuticals inventory and enhance the information sharing through a multi-echelon supply chain. There are two primary findings: i) that the implementation of Kanban system provides a strategic benefit and improves the quality of services and information sharing through a multi-echelon supply chain. (ii) It also provides a foundation to leverage innovation in pharmaceutical supply chains; it gives the opportunity to the organization to move away from the current push delivery and logistics systems towards improved logistics strategy models to empower front-line caregivers.
Keywords: Kanban; Echelon Kanban; Inventory Management; Lean; Just-In-Time (JIT); Pharmaceutical supply chain; Multi-echelon supply chain.
A Global Performance Analysis Methodology Using Taguchi Approach: Case of Cloud Computing and Supply Chain
by Awatif Ragmani, Amina El Omri, Noreddine Abghour, Khalid Moussaid, Moahmmed Rida
Abstract: Nowadays, performance optimization is identified as the major asset to maximize the quality-cost ratio of a given system. Particularly, the performance analysis of a complex system involving several processes and a multitude of stakeholders cannot be done without an efficient methodology. During this paper, we aim at the implementation of a generic methodology for performance analysis taking as a framework the case of Cloud computing and Supply chain. The proposed methodology is based on the fundamental idea of transforming a complex system into a black box which will be analyzed through different inputs corresponding to the influential factors and outputs which translate the key performance indicators. The analysis of the interactions between influential factors and key performance indicators is carried out on the basis of the Taguchi concept. The conclusions of the proposed methodology make it possible to identify diverse perspectives in order to enhance the performance of the entire system.
Keywords: Cloud Computing; Performance Methodology; Key Performance Indicator; Balanced Scorecard; Taguchi; Supply Chain.