International Journal of Logistics Systems and Management (84 papers in press)
- Technological innovation in the logistics of ethanol and a new systemic model of innovation in logistics
by Paulo Nascimento
Abstract: The purpose of this paper is to model the contribution of technological change in the innovation in logistics services. The approach chosen was four case studies in the supply of ethanol. The result shows that incremental technological innovations have contributed significantly to logistics innovation, not only in information technology, which the literature well reports, but also in storage, transshipment and transport, on which almost silent. Furthermore, the technology is often adopted from outside the organization and tailored to its needs, not restricted to be an organizational factor. The cases also suggest that, even being incremental, the adopted technological innovation, innovation in logistics has a systemic character, overcoming the dichotomy incremental versus radical. This paper concludes incorporating these findings in a new model of innovation in logistic.
Keywords: logistical services, systemic innovation, logistical fluids, technological innovation and logistics
- Multi-Objective Design of Multi-Modal Fresh Food Distribution Networks
by Marco Bortolini, Maurizio Faccio, Mauro Gamberi, Francesco Pilati
Abstract: This paper presents a methodology to jointly minimize the operating cost, the carbon footprint and the delivery time in the design of multi-modal fresh food distribution networks. A tri-objective linear programming model optimizes such criteria overcoming the widely adopted methodologies focused on the network cost minimization, only. A practical selection rule supports the final network structure definition, leading to an effective trade-off among the three objective functions. The market demand supply, the producer capacity limits and the food quality decrease during shipment, i.e. perishability, limit the feasibility region.
The paper applies the proposed model to an industrial case study dealing with the distribution of fruits and vegetables from a set of Italian producers to multiple European retailers through a multi-modal (truck, train and air) distribution network. The case study key results suggest the possibility to reduce the CO2 emissions without relevant cost increase.
Keywords: distribution network, multi-objective optimization, multi-modal shipment, fresh food, supply chain, perishability, carbon footprint, CO2 emissions, sustainability, operating cost, delivery time.
- Fuzzy Performance Measurement for Supply Chain Management: in Malaysian Rubber Glove Manufacturer
by Hamidreza Panjehfouladgaran, Rosnah Yusuff
Abstract: Companies are trying to increase their market share due to globalization in recent years.Various types of products and customers faced different challenges for companies to achieve market share. Hence, to accomplish this goal, successful companies have to concentrate on the efficiency and effectiveness of their activities. Supply chain involves all activities thatfulfillcustomers demands and transfer materials through downstream into upstream of chain. Since, supply chain creates value for customers and companies simultaneously, monitoring supply chain activities is essential. Numerous performance measurement systems and framework in supply chain have been developed in recent years.This paper discusses on the development of a framework for measuring qualitative metrics in supply chain. Qualitative metrics in supply chain management were identified and then experts selected the most common metrics between them. Fuzzy logic controller was applied to translate verbal expression into numerical variables. Finally, framework was programmed inthe MATLAB
Keywords: Performance measurement, performance measurement system, Supply chain performance measurement, Fuzzy logic controller, qualitative metrics
- Development of New Methods for measuring Forecast Error
by Allan Valsaraj Mathai, S Narayanan, Dhakshayani Ekambaram
Abstract: Forecast accuracy in supply chain is typically measured using the mean absolute percentage error. This however fails when it comes to measuring the accuracy of forecasts of products having intermittent demand. Mean absolute scaled error is a measure of forecast accuracy that works well for intermittent demand and can also be used to compare forecast accuracy between series. In this work, two new methods have been formulated for measuring the accuracy of forecasts with intermittent demand by modifying the MAPE and the SMAPE methods. The denominator of the formula used in the MAPE method will be modified in a way so that it can accommodate for the cases when the demand is zero. In this work, the two new methods have been tested with other methods of measuring forecast accuracy such as Mean Average Deviation (MAD), Mean Average Percentage Error (MAPE), Mean Absolute Scaled Error (MASE), Mean Squared Error (MSE) and Symmetric Mean Average Percentage Error (SMAPE) for data sets of ten products. After performing extensive calculations using data sets from ten products it has been found that the modified SMAPE method performed at par with the MASE method and may be effectively used for measuring the accuracy of forecast of the sales of the various industries with products having intermittent demand.
Keywords: Intermittent demand, forecast error, error accuracy, Mean Absolute Percentage Error, Mean Absolute Scaled Error.
- Performance study of artificial neural network modeling to predict carried weight in the transportation system
by Saeid Jafarzadeh-Ghoushchi, Mohd Nizam Ab Rahman
Abstract: The major aim of this study was to model and predict the amount of carried weight based on the five direct impact factors in the transportation system, i.e. number of van, lorry, truck, labour and fuel consumption. In this study, artificial neural network (ANN) as a multilayer perceptron (MLP), feed-forward neural network was incorporated for developing a predictive model. Three different training algorithms, belonging to two classes, namely Levenberg-Marquardt (LM) and gradient descent (batch backpropagation-BBP, quick propagation- QP), were used to train ANN with a single hidden layer of five nodes. The input parameters of the model are aforementioned five transportation factors plus two timing factors namely number of weeks and seasons while the carried weights is the output. The next purpose of this study was comparing of the mentioned learning algorithm
Keywords: Artificial Neural Network; Transportation system; Batch back propagation; Quick propagation; Levenberg-Marquardt (LM)
- Deterministic, Stochastic and Local Search Algorithms for Real-world ATSP Instances
by Pisut Pongchairerks, Jutathip Putponpai
Abstract: To solve real-world asymmetric travelling salesman problem instances, this paper develops multiple deterministic, stochastic and local search algorithms which construct their solutions based on the information of the adjacent cities, the border cities, the boundaries of the country, and the directions on map. The neighbourhood structures of the proposed local search algorithms are very efficient and contain only small numbers of solutions. All proposed algorithms are simple and very fast.
Keywords: asymmetric travelling salesman problem; ATSP; algorithm; neighbourhood structure.
- A fuzzy DEMATEL Based Approach for Evaluation of Risks in Green Initiatives in Supply Chain
by Sachin Mangla, Pradeep Kumar, Mukesh Barua
Abstract: The implementation of green/Green Supply Chain (GSC) initiatives is relatively difficult for the point of view of industries due to involvement of different risks. Decision evaluation and assessment of these risks can help industries to formulate strategies and suggest appropriate measures for managing the GSC effectively. For this motive, this paper recognizes the eight evaluation GSC risks with two main dimensions based on relevant literature and ten industrial experts inputs at an Indian plastic manufacturer. The current research proposes to use a fuzzy Decision Making Trial and Evaluation Laboratory (DEMATEL) methodology for analyzing the causal relations among the risks. The used fuzzy DEMATEL approach is useful in dealing with human bias and ambiguity involved in studying the interrelationship between the evaluated risks. Research findings indicate that Operational risks and Supply risks have the top significant influences in adopting and implementing effective GSC initiatives in business. Implications for managers and conclusions are discussed in the end.
Keywords: Causal effect; DEMATEL; Ecological-economic performance; Fuzzy set theory; Green initiatives; Risk; Sustainable business development
- The Effects of Legal-Political Factors and Market Competition on Supply Chain Performance: Some Findings from Firms in a Free Trade Zone
by Yudi Fernando, Agustina Fitrianingrum, Christopher Richardson
Abstract: This paper investigates the effects of legal-political factors and market competition on supply chain performance. The data were collected from firms in the electrical and electronics (E&E) sector in an Indonesian free trade zone (FTZ) on the island of Batam. The E&E firms were chosen because of their significant contribution to Indonesian exports. The sampling of this study was E&E firms involved in exporting activities. As part of survey research, hypothesis-testing was undertaken to explain the variance in the legal-political factors and market competition to predict the two measurements of supply chain performance of the E&E firms in Batam. Since Structural Equation Modeling (SEM-PLS) path modelling 2.0 works efficiently with small sample sizes and complex models, this analytical tool was employed in the study. The findings reveal that legal-political factors and market competition were positively significant on supply chain performance-efficiency and supply chain performance-flexibility. This study suggests that firm success is not necessarily tied to the size of its investment. Rather, it is the interrelationship amongst the factors that influences the supply chain.
Keywords: supply chain flexibility, supply chain efficiency, exports, free trade zone, Indonesia
- Weibull vs. Normal Distribution of Demand to Determine the Safety Stock Level when Using the Continuous-Review (S,s) Model without Backlogs
by Ricardo Manzini, Riccardo Accorsi, Emilio Ferrari, Mauro Gamberi, Valentina Giovannini, Hoang Pham, Alessandro Persona, Alberto Regattieri
Abstract: Determining safety stock is one of the most critical issues in inventory and logistics management. rnThis paper presents a cost-based analytical model to determine the best safety stock and customer service level for uncertain demand of products during generic replenishment lead times and a continuous-review inventory system. The proposed model uses the Weibull distribution to model the generic stochastic demand. α and β are the scale parameter and the shape parameter, respectively. An experimental analysis based on the assumption of different distributions of demand of product demonstrates the effectiveness of the proposed model compared to the so-called normal-based traditional model. Significantly, the proposed Weibull-based model is a comprehensible and user-friendly tool that can be useful for production system managers and practitioners.rn
Keywords: Weibull distribution, storage cost, inventory system, inventory management, shortage cost, continuous-review model
- COMPARING MODEL DEVELOPMENT IN DISCRETE EVENT SIMULATION ON RO-RO TERMINAL EXAMPLE
by Dmitri Muravev, Selim Aksoy, Aleksandr Rakhmangulov, Y. Volkan Aydogdu
Abstract: The management of an intermodal terminal, such as Ro-Ro terminals is a complex process that involves several critical decisions. Decision makers should organize operations perfectly in order to prevent bottlenecks and achieve the highest performance. So, predicting and solving possible problems in all processes of a Ro-Ro terminal is vital. At this point simulation modelling is a very useful and common method in analysing port terminal operations because, there are several interacting processes. But there are many simulation programs enable to model terminal operations. However, in which level are simulation software programs reliable in comparison with each other? Can there be significant difference in results of same event modelled by different simulation programs? In this paper comparison of two discrete event simulation modelling software programs, such as Arena and AnyLogic is aimed. Operations of a Ro-Ro terminal are modelled with Arena and AnyLogic independently and results are compared.
Keywords: Simulation modelling; Operation management; Ro-Ro terminal
- Production and delivery scheduling problem with delivery times and costs dependent on batch-size
by Olivier GRUNDER, zakaria HAMMOUDAN, Abdellah EL MOUDNI
Abstract: In this paper, we study a real-industrial case of an integrated lot sizing and delivery scheduling problem with multi capacitated transporters and distinct due dates considerations, with batch-size-dependent delivery time and cost.rnThe objective is to find a coordinated lot sizing and scheduling schemernsuch that the total cost is minimized while guaranteeing a certain service level at the manufacturer. A mathematical formulation of the problem is given as a nonlinear model in a general way. We prove a dominance property among the solutions of the problem and propose a generalized dynamic programming scheme to solve this problem in the case of homogeneous and heterogeneous transporters. Then, a mixed integer programming formulation is proposed to evaluate the performance of the dynamic programming method in both cases. Computational experiments show that the proposed approach is very efficient for solving small to medium size instances, especially for the identical transporter case.
Keywords: Automotive manufacturer; Coordinated scheduling; Production and Distribution; Dynamic programming; Mixed integer programming
- SUPPLY CHAIN TRANSFORMATIONAL LEADERSHIP, SUPPLY CHAIN INNOVATION PERFORMANCE, AND SATISFACTION WITH RELATIONSHIPS AND RESULTS: MODERATING ROLE OF SUPPLY CHAIN INNOVATIVENESS
by Sean Goffnett, Ashita Goswami
Abstract: Supply chain networks look to transformational leadership and innovation as sources of competitive advantage. Recent theoretical advances have emphasized the need to further investigate these variables in supply chain (SC) literature. The present research attempts to address this call by examining direct and indirect relationships between SC transformational leadership and satisfaction with SC relationships and results. Data from 184 informants was analyzed that showed that SC innovation performance mediated the relationship between SC transformational leadership and satisfaction with SC relationships and results. Furthermore, innovativeness capability moderated the mediation, such that the indirect effect of the SC innovation performance on the relationship between SC transformational leadership and satisfaction with SC relationships and results became stronger under conditions of high SC innovativeness. Based on results, we make suggestions for leadership interventions that include a culture level change within the immediate SC to enhance innovativeness capability through greater integration and motivation to innovate.
Keywords: supply chain transformational leadership; supply chain innovativeness; innovation; satisfaction with supply chain relationships; satisfaction with supply chain results
- An integrated inventory model for supplier-manufacturer-retailer system with imperfect quality and inspection errors
by Wakhid Ahmad Jauhari, Amanda Sofiana, Nughthoh Arfawi Kurdhi, Pringgo Widyo Laksono
Abstract: This paper develops an integrated inventory model for a three-stage supply chain system consisting of single-supplier, single-manufacturer, and single-retailer. The demand is deterministic and the production process is imperfect and produces a certain number of defective items. The retailer conducts an inspection process to screen out the defective items from the shipment lot. The inspector may incorrectly classify non-defective item as defective or incorrectly classify a defective item as non-defective.This model provides an optimal solution for the expected integrated total annual cost. A numerical example is presented for illustrative purpose.
Keywords: Supply chain; integrated inventory model; three-stage system; imperfect quality; inspection errors
- Information System Outsourcing and Its Impact on Supply Chain Performances
by Hokey Min, Seong-Jong Joo, Tonia San Nicolas-Rocca
Abstract: In the aftermath of recent global financial crisis, many firms consider changing their strategic thinking. Such change includes the reassessment of current business practices that may not necessarily add the maximum value to the supply chain process and may not bring the maximum possible return from the allocated resources. Thus, outsourcing strategy which allows the firm to focus on its core competency has gained popularity over the years. One of supply chain essentials that are often outsourced is an information system (IS) which plays an increasingly important role in facilitating business transactions, aiding decision-making processes, and visualizing assets throughout the supply chain. To help the firm better leverage IS outsourcing, this paper examines whether or not IT outsourcing enhances the firms supply chain performances. Based on the exploratory analysis, we found that supply chain performance is significantly influenced by (1) the size of an outsourcing firm; (2) the degree of the firms recognition of supply chains as its competitive advantage; and (3) the extent of prior IS outsourcing experiences.
Keywords: Information system outsourcing; Supply chain performances; exploratory analysis; U.S. firms
- ISM-Fuzzy MICMAC Approach for analysis of GSCM enablers
by Anil Dube, Rupesh Gawande
Abstract: The object of this paper is to identify the enablers to implement green supply Chain and to understand their mutual relationship. Green supply chain management (GSCM) enablers are identified using available GSCM literature and on consultations with experts from industry and academician. Interpretive structural model (ISM) was developed to identify the contextual relationship among these enablers. A group of experts from industries and academics was consulted and ISM is used to develop the contextual relationship among various GSCMEs for each dimension of GSCM implementation. The results of ISM are used as an input to fuzzy MICMAC analysis, to identify the driving and dependence power of GSCMEs. This paper has identified 14 key GSCMEs and developed an integrated model using ISM and the fuzzy MICMAC approach, Which helps to identify and classify the important GSCMEs and reveal the direct and indirect effects of each GSCME on the GSCM implementation.ISM model provides only binary relationship among GSCMEs, while fuzzy MICMAC analysis provides precise analysis related to driving and dependence power of GSCME. To overcome this limitation, integrated approach is developed.This study has strong practical implications, for both practitioners as well as academicians. The practitioners need to concentrate on identified GSCMEs more cautiously during GSCM implementation in their organizations and the top management could formulate strategy for implementing these enablers obtained through ISM and fuzzy MICMAC analysis.
Keywords: Green Supply chain management(GSCM), GSCM enablers, Interpretive structural modeling, Fuzzy MICMAC
- Analyzing Barriers to Supplier Quality Management via Interpretive Structural Modeling: The Case of Saudi Industry
by Hassan Mukhtar, Andrea Schiffauerova
Abstract: A well-organized supply chain network increases the efficiency of the supplier selection and improves quality of service. However, certain barriers to suppliers quality management prevent companies from achieving these gains. The aim of this study is to identify important barriers that affect suppliers quality management and to determine the contextual relationships between them using Interpretative Structural Modeling approach. Based on literature review seven important barriers to quality management were identified at the supplier level and a graphical approach was then used to classify these barriers into multiple categories. Experts opinion from Saudi industry was sought to develop Structured Self-Intersection Matrix and Reachability Matrix, which are used to identify binary relationship among these barriers. The study provides new insights into understanding of the critical factors hindering successful supply chain management.
Keywords: Supplier Quality Management (SQM), Interpretive Structural Modeling (ISM), Barriers to Supplier Quality Management.
- A new approach for evacuation process in disaster relief with uncertainties
by Minoo Kazeminia, Hossein Naderi, Ali mohamad Ahmadvand
Abstract: In this paper, a new mathematical model is presented for evacuation and relief management in case of disasters. Since these kinds of phenomena contain remarkable uncertainties, fuzzy theory is used to deal with it. When a disaster happens, travelling times between each two nodes are not certain. To this aim, a fuzzy inference system is employed to predict travelling times. And, different scenarios are designed to cover various conditions and to reach the optimum decision. Size of scenario tree exponentially increases by increasing number of nodes and arcs. Consequently, in large-sized problems a huge scenario tree is resulted and the problem becomes too complex to deal with in terms of exact solution. Therefore, scenario tree size reduction is inevitable. Finally, to validate the proposed model several small and medium-sized problems are solved by GAMS software that indicates acceptable efficiency of the model. In addition, sensitivity analyses are made on budget and demand parameters to determine models behavior upon these parameters.
Keywords: Disaster management, Evacuation, Fuzzy Theory, Mathematical Model
- Prioritizing of factors effective on Marketing Relationship using FAHP and Fuzzy TOPSIS Methods
by Elham Keshavarz, Mehdi Parhizgar
Abstract: Organizations are aware the importance of banks customer satisfaction, so they are gently far from traditional marketing, and inclined to relationship marketing( Bagheri Bahri et al,2013),relationship marketing encourage firms to seek partners for long-term marketing relationships The purpose of this research is to realize how organizations have been sustaining their growth through applying RM . In this study, banks including private bank, state owned bank, semi private bank were ranked regarding to sub-scales related to different levels of factors effective on marketing relationship of banking industry by using Fuzzy hierarchical analysis (FAHP) and Fuzzy TOPSIS. The results obtained from both methods indicate that private bank are more important than semi private bank and state owned bank in banking industry
Keywords: Marketing Relationship, Marketing Relationship factors, FAHP, Fuzzy TOPSIS
- Investigating links between low-level inventory practices and business performance
by Dimitrios Folinas, Thomas Fotiadis
Abstract: The paper investigates the effects of low-level inventory practices on financial performance in the Greek manufacturing industry by examining past literature reviews and empirical evidences of a primary research. To enhance research reliability, consistency, and validity of the quantitative research a systematic (step-by-step) research design is created to ensure quality in the data collection techniques, data analyses and interpretation, and the links between the literature reviews and the results investigated. The results of this study suggest that there is not a strong link among low-level inventories management practices and financial based performance indicators even if the manufacturing companies have remarkably applied these practices during the last years. Therefore, it is proved that the examined investigation must be viewed from more business dimensions (such as sales and marketing).
Keywords: Inventory Management, Low-Level Inventory, Financial performance, Business performance, Manufacturing sector
- Model for Identification of Effects of Demand Prediction on Bullwhip Effect Using Adaptive Network-Based Fuzzy Inference System (ANFIS)
by Nazanin Pilevari
Abstract: The prevailing paradigms in the area of today's business are the supply chains and their management. The purpose of supply chain management is to lower the overall cost of chain and this has led to the chain being in need of mutual collaboration of its components. One of the phenomena that expose the coordination of supply chain to challenges is a phenomenon called the bullwhip effect. Following the study of previous research and using the expertise of experts, this research identifies the effective components on the quantity of demand. Then, seeking the opinion of experts in the industry under study (the automotive parts industry) and using the MATLAB software, the set of rules for fuzzy inference system were exploited and the model for prediction of single-level supply change was developed. Moreover, the developed model was implemented in the studied organization (PAYA CLUTCH COMPANY). Furthermore, in order to assess the effect of developed model on bullwhip effect, the results of conducted predictions were compared to each other through the conventional model and technique of company (regression method) and the trend analysis method. The results suggest that the model developed using adaptive network-based fuzzy inference system leads to less bullwhip effect than regression and analysis methods.
Keywords: Demand Prediction, Adaptive Network-Based Fuzzy Inference System (ANFIS), Bullwhip Effect
- Relationships between supply chain capabilities, competitive advantages, and business performance: An exploratory study of the food industry in Vietnam
by Tran Thi Tham, Navee Chiadamrong
Abstract: Relationships between Supply Chain Management (SCM) practices and business performance have been discussed and investigated widely, making substantial contributions to the body of knowledge. SCM is a key success for business improvement. The Vietnamese food industry is a rapid growing industry and can dominate several food export sectors with sustainable competitive advantages in the world. This study examines the relationships between supply chain management capabilities and competitive advantages towards business performance in the Vietnamese food industry. The data were gathered from conducted surveys with 302 food manufacturing companies in Vietnam, and the model was tested by using Structural Equation Modeling (SEM). The empirical results provide significant evidence to support that supply chain capabilities play an important role in the improvement of business to a certain degree. They have both direct and indirect effects on business performance through competitive advantages, which are related to each other, following the sand cone model.
Keywords: Supply chain capabilities; Competitive advantage; Business performance; Food industry; Vietnam
- Advance demand information and early fulfilment in inventory management with two demand classes
by Sourish Sarkar, John Shewchuk
Abstract: This paper investigates the use of advance demand information in three inventory models, each serving two demand classes. The first model is a periodic-review pure inventory system with advance demand information from both classes. The second model considers continuous review production-inventory system, where only one class provides advance demand information. In the third model, both demand classes provide advance demand information, though only one class accepts early fulfilment. Optimal inventory replenishment policy is characterised in the first model under certain conditions. In the remaining two models, simulation-optimisation methods determine the optimal Kanban-based early fulfilment policies. Presence of a small fraction of customers, who agree to provide advance demand information and accept early fulfilment, is shown to be more advantageous than having all customers with same amount of advance demand information but no early fulfilment. Managerial insights are drawn in certain scenarios.
Keywords: advance demand information, inventory management, production control, simulation applications
- Optimality of Cycle Time and Inventory Decisions in a Coordinated and
Non-coordinated Three-Echelon Supply Chain under Exponential
Price Dependent Demand
by Burra Karuna Kumar, Dega Nagaraju, S Narayanan
Abstract: To remain competitive in the prevailing stiff business competition, coordination among the entities of the supply chain is becoming mandatory. The people in the supply chain have to integrate their business decisions beyond the organizations boundary. This paper develops a mathematical model for a coordinated and non-coordinated three-echelon supply chain under exponential price-dependent demand. The model is developed with the consideration of ordering/setup, carrying and transportation costs. The objective of this work is to demonstrate the optimality of inventory replenishment decisions, shipment frequencies and the annual total variable costs, with and without coordination. A numerical illustration is presented to determine the optimal values of the objective function and decision variables. Further, the sensitivity analysis is carried out to study the influence of the model parameters on the optimality of decision variables and the objective function.
Keywords: Supply Chain; Exponential price dependent demand; Replenishment decisions; Shipment frequency; Total variable cost;
- Innovation management in logistics: an empirical study
by Ingrid Göpfert, Wanja Wellbrock
Abstract: In this study we examine the extent to which innovation management is established in business logistics. In addition to the general implementation of an innovation management the study is also focused on the importance and success of innovations for logistics, the underlying innovation process, corresponding expanses to achieve logistics innovations and relevant innovation triggers. To get significant results we carried out a questionnaire under the each 100 largest German companies of eight selected industries. In total we integrated 800 companies in our study and got a response rate of eleven percent. As main results we show that despite a fundamentally high importance of innovations in logistics, the corresponding expanses are still relative small. Innovation management is not yet sufficient implemented in the area of logistics and a structured innovation process is also absent in the majority of companies surveyed. Moreover we show that innovation management is mostly limited to a single company and a continuous enterprise-wide expansion would be desirable for the future.
Keywords: Logistics â€˘supply chain management â€˘innovation managementâ€˘ innovation process â€˘empirical study
- A fuzzy based multi criteria decision making approach for supply chain risk assessment in Indian pharmaceutical industry
by Vinayak Vishwakarma, Chandra Prakash, Mukesh Kumar Barua
Abstract: Being a highly significant part of health care system, developing nations pharmaceutical industry, supplying medicines across world needed to develop risk averse supply chain to protect global health of human beings and businesses. However, the successful accomplishment of pharmaceutical supply chain (PSC); production and business activities are relatively difficult due to involvement of different risks. Therefore, identification of risks and their subsequent analysis of PSC are very important. Any risks affecting the pharmaceutical corporations could interrupt supply medicines and health systems effectiveness. This paper proposes multi criteria decision making (MCDM) methodology based on fuzzy AHP approach to prioritize and rank risks in PSC. This approach is also suitable in analyzing experts judgments and uncertainty involved in the process of risk assessment. This study identifies twenty four risks under five major risk measures of Indian PSC through relevant literature and experts opinions. The results of study would be beneficial for industries in managing and reducing the consequences of the risks in PSC. The analysis of the results indicates that supply and supplier risks are the most important risks in Indian PSC. Sensitivity analysis is also performed to test the robustness of the proposed approach.
Keywords: Pharmaceutical Supply Chain (PSC), Risk, MCDM, Fuzzy AHP, India.
- A new approach for decision making in distribution supply chains: a Theory of Constraints perspective
by Tito Armando Rossi Filho, Diego Augusto de Jesus Pacheco, Isaac Pergher, Guilherme Luís Roehe Vaccaro, José Antônio Valle Antunes Junior
Abstract: The understanding of the application of the concepts of the Theory of Constraints (TOC) in the management of logistics distribution is not yet consolidated in the academic and especially practical field. The objective of this paper was to develop and test a proposed model to support decision making regarding the feasibility of implementing the proposals of TOC in managing distribution logistics. In an automotive industry, the proposed method was applied and mainly made up a critical analysis of the method and the potential implementation of the TOC concepts in the management of distribution. The main results of the research allowed appointing a structured method in logical steps to be used in the practice of companies to improve their logistics performance. The research suggests that the use of the method contributed to the analysis and acceptance of TOC in distribution logistics industries.
Keywords: Distribution; Logistic; Theory of Constraints; Supply Chain; Decision Making
- Justification of Green Logistic Practices in Indian Enterprises using analytic hierarchy process
by Deepti Chhabra, Rajesh Kumar Singh
Abstract: Logistics is the integrated management of all activities which are required to move products through the supply chains. By practicing greening efforts in the logistics system, manufacturing enterprises may have efficiency improvements and several other long term benefits in addition to the basic objectives of achieving the organizational goals of the manufacturing enterprises. This paper is intended to justify the green logistics practices over non-green logistics in the manufacturing enterprises. The justification is done by using Analytical Hierarchy Process. On the basis of literature, major benefits of green logistics have been identified and enlisted as energy saving, reduction in carbon emission, protection of ecological environment, managing waste disposal, reduction in distance and quality improvement. The global desirability index of green logistics over non green logistics are calculated by using AHP and then compared to justify green logistics over non green logistics in the Indian manufacturing enterprises. Furthermore green logistic concepts are studied through a case study.
Keywords: Green Logistics; Non-green logistics; Analytical Hierarchy Process; Indian enterprises
- Supply Chain Risk Management in the Indian Manufacturing Context: A Conceptual Framework
by V Viswanath Shenoi, T N Srikantha Dath, Chandrasekharan rajendran
Abstract: Due to emergence of global business environment, short product life
cycles, technological innovations, natural disasters and ever changing government
policies, industries face various types of risk in their supply chains. To overcome
the increased risks raised by the above factors in the supply chain, organizations
need to establish the principles of Supply Chain Risk Management (SCRM) for
serving customers by finding right suppliers and fostering the trust among the
supply chain partners. This study proposes that by following the strategies such
as risk plan, risk financing, risk monitoring, risk avoidance, risk transfer and
risk sharing, the supply chain can be enhanced by reducing the impact of risk
on supply chain. This study supposes that the supply chain partners (entities)
need to share information transparently across the supply chain to enhance the
visibility of the supply chain.Without sharing information across the supply chain,
alleviation of the impact of the risk and sustaining long lasting relationship among
the trading partners is a difficult task. This study attempts to identify the critical
dimensions of SCRM and it develops a conceptual framework to understand the
relationship between risk and performance measures from the perspective of the
manufacturers which includes Original Equipment Manufacturers (OEM), Tier-1
and Tier-2 suppliers.
Keywords: Supply Chain Risk Management (SCRM), Indian manufacturing industries, Risk categorization, Risk, Risk framework, Risk mitigation, Performance.
- Developing competitive advantage through tracking tools in service business: The case of a global industrial service supplier
by Johanna Myllynen, Ilkka Sillanpää, Khuram Shahzad
Abstract: This research is about the utilization of tracking tools in maintenance resource coordination to investigate the benefits of tracking in the coordination processes. Based on service industry, this study uses a pilot project, questionnaires and interviews as research methods. Various challenges were found in the field of mobile workforce management; coordination, safety at work, achieving optimization goals of cost-efficiency, quality and customer service. Many of these challenges can be facilitated with tracking. However, the possibilities of tracking utilization vary in differing business areas of case company. Four dimensions in the existing business were identified. They are connected with the mobility and management style of service technicians. Further, the main tracking opportunities were introduced into each of these business fields. The successful usage and implementation of a tracking system necessitates strong support from management. Tracking tools offer numerous opportunities for maintenance resource coordination. Undoubtedly, the tracking implementation and utilization require consideration of several managerial matters.
Keywords: Tracking, Maintenance Resource Coordination, Mobile Workforce, Field Services, Fleet Management
- Comparative evaluation of GSCM practices in automotive components manufacturing firms of India: A fuzzy TOPSIS approach
by Sunil Luthra, Sanjay Kumar, Dixit Garg, Abid Haleem
Abstract: Managing process of greening the whole supply chain encompasses careful and critical examination of supply chain members, upstream and downstream supply chain members. This paper provides a methodical fuzzy MCDM modeling using TOPSIS for comparative evaluations of GSCM practices in automotive components manufacturing firms of India towards effective green supplier selection by taking a real world problem. GSCM practices were sorted from extensive review of literature and structured questionnaire was formed; and the data was collected from selected four automotive components manufacturing firms to evaluate their current GSCM practices adoption. A fuzzy TOPSIS technique has been applied for comparative evaluations of GSCM practices in selected four automotive components manufacturing firms and to rank these selected firms. The influence of preferences provided by decision makers has also been analyzed using sensitivity analysis to examine and demonstrate the robustness of the adapted fuzzy TOPSIS methodology. Triangular fuzzy numbers have been utilized to deal with subjectivity and biasness associated with human judgment. Out of chosen four Indian automotive component manufacturing firms, firm 1 has adopted GSCM practices in effective way and may be selected as green supplier. Our study has implications for SC practitioners/managers to solve MCDM problems related to effective implementation of GSCM practices in firms.
Keywords: Fuzzy Technique for Order Preference by Similarity to Ideal Solution (Fuzzy TOPSIS), Green Supply Chain Management (GSCM) Practices, Indian Automobile Industry, Multi Criteria Decision Making (MCDM), Sensitivity Analysis, Triangular Fuzzy Numbers (TFNs).
- Driving Forces and Interfaces between Elements of Triple Bottom Line (TBL) Findings and Propositions of TBL Management
by Nils M. Hogevold, Goran Svensson
Abstract: The purpose of this study is to explore the interfaces and driving forces between the elements of the Triple Bottom Line (TBL) approach. A qualitative study was undertaken with respect to a sample of reputable companies in Norway, which have implemented significant business sustainability programs within their organizations, the marketplace and in the society beyond mere compliance. The results form the study is that there appear to be no established structures or processes that enable an insightful understanding of driving forces and interfaces between the TBL-elements. The article outlines a framework for the fragmented state-of-the-art practices is labeled TBL Management. This is an attempt to emphasize not only the measurement properties of the TBL-elements (economic, social and environmental ones), but also the structural ones (cause-and-effect between elements) that have so far not been recognized in practice and theory.
Keywords: Triple Bottom Line, business sustainability, economic, social, environmental, element, management, driving forces.
- Integrated versus Individual Approach in Products Distribution Networks
by Lamia Triqui-Sari, Jean-Claude Hennet, Zaki Sari
Abstract: The purpose of this paper is to compare the effectiveness of two approaches for inventory management in a network of retailers. In the individual approach, each retailer independently orders products from the central warehouse at the beginning of the commercial season, when demand is still uncertain. In the integrated approach, the first stage of ordering from the central warehouse is followed by a process of exchange of products between the retailers once real demands are known with certainty. In terms of modeling and methodology, the basic newsvendor model specializes in the case of discrete probability distributions. The compound distribution generates scenarios that allow solving the stochastic optimization problem of expected profit maximization as a deterministic problem. A real industrial example provides a numerical application in this study. The results indicate that the integrated approach increases the total expected profit of the network. It also improves the service level for customers and the efficiency of transport.
Keywords: Logistics; inventory management; supply chain; newsvendor model; stochastic optimization
- Supply Chain Management and Marketing Integration: Enhancing Customer Lifetime Value
by PANKAJ MADHANI
Abstract: The Supply Chain Management (SCM) and marketing integration has a direct and significant impact on customers and the revenue-earning potential of the firm. Hence, it is vital for the firm to achieve better synergy between them. SCM and marketing integration is a complex and multi-faceted construct and hence requires strategic approach for its evaluation. This study aims to understand how to achieve SCM and marketing integration by focusing its facilitators and controlling distracters. This research develops various frameworks and models for better understanding of SCM and marketing integration. This research demonstrates the benefits of a close integration between SCM and marketing and evaluates its impact on Customer Life time Value (CLV). The contribution of this article is both theoretical and practical. From a theoretical perspective, the frameworks developed for study of SCM and marketing integration are an important contribution to the existing knowledge. From a practical perspective, various models of this paper aim at providing guidelines for SCM and marketing managers for building competitive advantages by achieving SCM and marketing integration.
Keywords: Supply Chain Management, Marketing, Interaction, Collaboration, Integration, Customer Lifetime Value
- Identification of Critical Success Factors for Green Supply Chain Management Implementation
by Rakesh Kumar Malviya, Ravi Kant, Ashim DuttaGupta
Abstract: The aim of this study is to identify the critical success factors (CSFs) for successful Green supply chain management (GSCM) implementation. The nationwide questionnaire survey and fuzzy Decision Making Trial and Evaluation Laboratory (DEMATEL) method is used to identify critical success factors (CSFs) for successful GSCM implementation. The total 35 influential factors for GSCM implementation were identified through literature review and expert discussion. Out of which 29 influencing factors (Mean≥3.00) were selected through nationwide survey of Indian Automobile Industries. The empirical case study of an Indian gear manufacturing organization is presented to identify CSFs and to validate the applicability of proposed framework. The proposed fuzzy DEMATEL method identified 12 CSFs from 29 influencing factors which will help to improve effectiveness and efficiency of successful GSCM implementation. The findings helps in understanding GSCM deeply which offers a meaningful base and provides an indication to build an effective phase-wise GSCM implementation.
Keywords: Green supply chain management (GSCM), fuzzy set theory, Decision Making Trial and Evaluation Laboratory (DEMATEL), critical success factors (CSF)
- COLLABORATIVE TRACKING AND TRACING APPLIED ON DRY PORTS
by Vahid Mirzabeiki, Violeta Roso, Per Sjoholm
Abstract: The purpose of this paper is to analyse the benefits of the application of a Radio Frequency Identification (RFID)-based Collaborative Tracking and Tracing (CTT) system on a logistics setting in which freight is transported by rail between a seaport and a dry port. The case study research method was used for this study and the empirical data were gathered through a research project, which was carried out in Sweden. The results indicate that opportunities for improving the speed of operations, resource utilization, timeliness of operations, safety of operations, and finally, improving the quality of data are created for multiple actors within the studied logistical setting after application of the CTT system.
Keywords: Collaborative tracking and tracing (CTT), dry port, seaport, Radio Frequency Identification (RFID), railway, wagon.
- Challenges and Opportunities for Implementing X-ray Scanning Technology at the Korean Hub Ports
by Hokey Min, Jong-Won Park, Yong-Kon Lim, Aerim So, Yong Kap Cho
Abstract: Over the last few years, a series of legislative attempts to mandate 100% scanning of cargo containers bound for the U.S. has pressured foreign port authorities to adopt more efficient container inspection strategies. One of such strategies includes the adoption of X-ray scanning technology at foreign exporting port facilities which can provide clear and unobtrusive views of the contents of items hidden inside containers before they are shipped to the U.S. destination ports. Despite numerous benefits of using X-ray scanning technology, maritime industry sectors and port authorities still are hesitant to utilize it for a number of concerns. Those concerns include: ambiguity and costs associated with 100% container scanning policies, potential technical glitches, and logistics inefficiencies created by lengthier lead time. To address these concerns, this paper identifies a multitude of factors that may hinder the efficient use of X-ray scanning technology in the Korean hub ports from the perspectives of carriers. Also, this paper aims to assess the spillover effects of X-ray scanning technology adoption on port revenue.
Keywords: X-ray cargo inspection, global supply chain security, exploratory analysis
- Logistic Service Quality (LSQ) and Organizational Performance: Conceptualization, Measure Development, Measure Test and Model Fit
by Sachin Kamble, Shradha Gawankar, Rakesh Raut
Abstract: This paper attempts to develop, validate the measures for LSCP and also test the influence on the organizational performance. The data was collected through questionnaire survey from 154 transport service providers from Mumbai and nearby costal region in India. In the first phase Confirmatory factor analysis was used to test the validity of the proposed measurement scale for all the identified constructs. Second phase tests the relationship between the identified constructs and organization performance using SEM. In doing so, we map a positive relationship between logistic supply chain performance (LSCP) and organization performance (OP) which ultimately leads to enhance the performance improvement within firms and across the supply chain.
Keywords: Supply chain performance, Logistics, Transport industry, organization performance, confirmatory factor analysis, structural equation modelling.
- Green Logistics as Urban Transportation Category
by Luciana Cezarino, Tania Teixeira, Débora Tavares
Abstract: The aim of this paper is investigate green logistics as previewed determined theory categories. By bibliographic research the study presents, describes and relates the concept of green logistics approaching theory and practices analyses with urban transportation categories. The results show that green logistics is less associated than expected.
Keywords: Urban Transportation, Category, Sustainable Logistics
- Assessing the Responsiveness of Supply Chain - Structural Equation Modeling Based Approach
by Raghuram Potluru, Saleeshya Parakkal
Abstract: Companies worldwide have now realized that customer focus is what wins the game. As demands of the customer become more and more volatile and unpredictable, they have to stay ahead of their competitors in fulfilling the needs of the customer. The supply chain as a unit has to compete against other supply chains for reaching out and delighting the customer. Responding fast to the changing customer needs has been an intangible factor underlying a successful business. Thus, responsiveness of the supply chain has become the differentiator between the competing supply chains. In this paper, the end-to-end supply chain factors influencing responsiveness are identified from extant literature and a model of responsiveness of the supply chain has been developed by conducting a survey of 204 pump manufacturers. The developed model has been validated through confirmatory factor analysis using structural equation modeling. These findings can help to identify the areas of improvement for the supply chain and may lead to a focused improvement in these areas thus improving responsiveness and profitability.
Keywords: supply chain responsiveness; structural equation modeling; material flow; information flow; lead time; organizational capability
- A bi-objective location inventory model for three-layer supply chain network design considering capacity planning
by Abolfazl Kazemi, Hamed Iranmanesh
Abstract: This paper aims at bi-objective optimization of single product for three-layer supply chain network consisting of a factory, distribution centers (DCs) and customers including the impact of inventory management system. The key design decisions are: The location of DCs and their capacity, production capacity of the factory, product quantity to be transported from factory to each DC, product quantity to be transported from each DC to each customer, and order quantity at DCs, so as to minimize the sum of the production cost, location cost, transportation cost, ordering cost, inventory holding cost, and lost sales. The problem is formulated as a Mixed-Integer Non-Linear Programming (MINLP) model and solved using GAMS solver and proposed meta-heuristic algorithm. The -constraint method is used as solution approach to tackle the multi-objective problem when using GAMS. Because of NP-hardness of the problem, a hybrid meta-heuristic algorithm based on genetic algorithm is proposed to solve large scale problems. Computational experiments demonstrate the effectiveness of the proposed model and algorithm in designing large supply chain networks.
Keywords: Supply chain management; Location inventory problem; Capacity Planning; Meta-heuristic algorithm.
- How Do Different Supply Chain Configuration Settings Impact on Performance Trade-Offs?
by Yasmine Sabri, Guido J.L. Micheli, Cali Nuur
Abstract: The notion of 'fit' in the supply chain management literature (SCM) has evolved following the adoption of the contingency approach in an endeavour to achieve greater organisational effectiveness. In this paper, we investigate the possible approaches to achieving a state of fit between supply chain configuration settings and performance indicators, while taking into account the contextual factors related to different industry sectors and geographical dispersion levels. This study addresses the pressing issue of the performance trade-offs faced by companies to achieve a higher service level and customer satisfaction (effectiveness) on the one hand, while being cost-efficient on the other hand (efficiency).
The paper contributes to the SCM literature and practice through synthesising a conceptual framework that scrutinises the relationships between six individual configuration settings and nine effectiveness/efficiency indicators. The studys findings explain the motivations behind different configuration decisions, which help in obtaining the most appropriate fit between supply chain configuration and performance.
Keywords: supply chain configuration; supply chain design; supply chain fit; contingency approach; efficiency; effectiveness; performance management; performance trade-offs.
- ENHANCING THE COMPETITIVE ADVANTAGES OF VIETNAMESE COFFEE THROUGH THE EXPLORATION OF CAUSAL LOOP MODELLING IN THE SUPPLY CHAIN
by Thich V. Nguyen, Nam C. Nguyen, Ockie J. H. Bosch
Abstract: Coffee supply chain management is the global operational strategy for enhancing the competitiveness of coffee companies. Enterprises are attempting to find ways to improve their competitiveness by changing their operation strategy through methods that include the implementation of the supply chain management paradigm. However, a thorough and critical review of existing literature is yet to be carried out in order to identify pertinent factors and gain useful insights into the role and effectiveness of causal loop modelling in coffee supply chain management. In this paper, researchers develop causal relationships among different variables that present enablers and outcomes operating within many identified feedback loops. The resulting causal loop model provides coffee production managers with a snapshot of the dynamic interactions among elements in the coffee supply chain, which helps to identify proactive action in implementing the coffee supply chain philosophy for increasing the competitiveness of coffee products. Based on this review and analysis, recommendations are made regarding the application of the causal loop method in coffee supply chain management. Important future research directions are also indicated.
Keywords: Coffee supply chain, causal loop diagram, competitive advantages
- Development of an Inventory Model for Two Suppliers with Random Capacity considering Supply Disruption
by Imtiaz Ahmed, Ineen Sultana, Abdullahil Azeem
Abstract: In todays complex supply chain system supply disruptions due to occasional unavailability of raw materials or products pose serious consequences for firms and are thus of particular concern for strategic decision makers. Supply disruption occurs for diverse reasons including transportation problem, equipment failure, raw material shortages, natural calamities etc. If any of the above reasons occurs supplier may become unavailable at random times for random time length. Besides,in reality in many cases suppliers may have random capacities which will lead to uncertain yield in orders. Again under random supplier capacities, the retailer should order from a number of suppliers in order to diversify the risk associated with shortages. The objective of this paper is to develop an inventory model for two suppliers with random capacities considering supply disruption. A modified (Q, r) model is developed to tackle the problem of future supply uncertainty in response to the demand generated by Poisson process. Two suitable optimization algorithms are applied to search for the optimal values of the decision variables which are state dependent order quantities and reorder point to minimize the cost per unit time.A hypothetical example and its solution are then provided to have a better understanding about the demonstration of the proposed model. Finally sensitivity analysis is also carried out to have better insights about the model developed.
Keywords: Supply chain management; Disruption Management; Inventory Modeling; Random Capacity; Continuous time markov chain
- Integrating Sustainable Development, Lean, and Logistics Concepts
into a Lean Sustainable Logistics Model
by Sooksiri Wichaisri, Apichat Sopadang
Abstract: This paper presents to identify opportunities and gaps of research for the integration of sustainable development, lean, and logistics concepts into a lean sustainable logistics model. Conceptual evaluation is the first step to understand the main points and link each concept. These concepts consist of four components, including the goals, elements, benefits, and limitations of each. The three relationships investigated in this research consist of the interfaces of sustainable development and logistics management, sustainable development and lean concept, and lean concept and logistics management. Following the conceptual evaluations and interfaces among them, the three concepts are integrated into a lean sustainable logistics model. There are four stages, comprising discordant action, proficiency, cooperation, and interdependence, for analyzing the constructed model combination of lean sustainable logistics. Then the lean sustainable logistics model can be synthesized for implementation in organisations to achieve long-term benefits.
Keywords: Sustainable Development; Lean; Logistics; Conceptual Evaluation; Integration
- Material Flow Optimization in a Multi-Echelon and Multi-Product Supply Chain
by Rajkanth Raju, Srinivasan G, Mohan Gopalakrishnan
Abstract: This paper addresses a distribution problem in a multi-product, multi-echelon supply chain. We develop a Mixed Integer Linear Programming formulation that considers allocation of vehicles with varying capacities for the transportation of products between the stages of the supply chain. The cost of transportation includes the fixed and variable costs of using the vehicles. The proposed formulations are solved optimally up to certain sizes, and we propose a heuristic based on Total Opportunity Penalty Cost Method to solve the large sized problems. These proposed solution procedure is tested over a set of hypothetical problem sets. The results indicate that the proposed heuristic algorithm yields solutions within 5 percent from the optimal solutions.
Keywords: Branch-and-Bound Algorithm; Heuristic; Mixed Integer Linear Programming Model; Supply Chain; Transportation Problem.
- Role of management capability and Web-enabled direct procurement in creating competitive direct procurement advantage
by YI MING TAI
Abstract: Developing appropriate management capability enables manufacturing firms to strengthen competitive direct procurement advantage. The purpose of this study is to investigate what management capabilities can enable firms to create competitive direct procurement advantage and how Web-enabled direct procurement moderates the competitive impact of management capabilities. This study conducted an empirical survey with a valid sample of 101 manufacturing companies in Taiwan to evaluate the research model of this study. The results revealed that process management, trust-building, and coordination capabilities significantly influence the competitive direct procurement advantage. Moreover, this study observed that Web-enabled direct procurement alone does not directly influence the competitive direct procurement advantage. Web-enabled direct procurement plays a complementary role in reinforcing the effect of management capabilities.
Keywords: competitive direct procurement advantage; process management capability; relational governance capability; coordination capability; Web-enabled direct procurement
- Reselection of logistics service provider: The meaning of the experience in the reselection process
by Kai Häkkinen, Outi Kettunen
Abstract: The research focus in this study is on the reselection problem of the logistics service provider (LSP). The problem was studied with one Finnish metal industry company. Our idea was to test whether the experience gained during the last eight years has changed the importance of the selection criteria and brought any new selection criteria to the table. We created a new framework in part based on the User Experience (UX) research field, which appears to be useful in the context of our study. The study is a pilot study to test the suitability of the incorporating the UX research field concepts into the logistics research field. The proposed new framework appeared to function well. The study showed that non-verifiable selection criteria require more attention than verifiable criteria. Additionally the study brought out three selection criteria that are not used in the literature as far as we know.
Keywords: Logistics service provider, LSP, reselection of LSP, user experience, UX
- City Logistics: Problems and Recovery Proposals
by Aylin Caliskan, Mustafa Kalkan, Yucel Ozturkoglu
Abstract: The city logistics is the multidisciplinary science that makes a bridge between both urban freight transportation and sustainability of the cities. It has also focused on various subject matters such as populations, facilities, traffics and logistics activities. If all this dynamic criteria consider, different logistics scheme must be prepared for each city. Cities have to be handled and analyzed individually according to their own characteristics. In order to understand the current situation and problems of urban freight transport in Turkey, this paper examines the specific focus on Turkeys third largest city Izmir in terms of city logistics with the eye of logistics service providers. A qualitative approach was used and unstructured interviews with subject matter experts were conducted to gain general insight into how logistics service providers perceive the problems in city logistics in Izmir and the solutions they propose. Regarding the gap between theory and practice, this study would be valuable for future research in city logistics studies, and the results of the study would be a practical tool for decision makers in their city logistics planning process.
Keywords: City logistics, city logistics problems, recovery proposals
- PLANNING THE REVERSE LOGISTIC FOR RECYCLABLE SOLID WASTE BY A MATHEMATICAL MODEL AND A SIMULATED ANNEALING METAHEURISTIC
by Israel Gomes, Rodrigo Rosa, Carla Musso, Lucas Cinelli, Vitor Oliveira, Dahlen Silva
Abstract: Selective collection has grown over the last few years and this is leading to an increase of the reverse logistics costs paid by the City Hall. Thus, a better planning of the reverse logistics may reduce costs by minimizing the number of trucks needed and the total distance travelled. This paper proposes a mathematical model and a modified Simulated Annealing metaheuristic based on the Vehicle Routing Problem with Multiple Trips to plan the reverse logistics for the selective collection. The mathematical model was solved by CPLEX 12.6 and the SA was developed in C. In order to test both of them, they were applied to the selective collection in five Brazilian cities that use a Volunteer Delivery Stations (VDS) located at roads and squares. SA performed the planning of selective collection in a relatively low computational time and achieved a better plan than the ones done manually by the planners.
Keywords: Selective Collection; Vehicle Routing Problem with Multiple Trips; Simulated Annealing; Recyclable Solid Waste; Reverse Logistics.
- Factors Affecting the Competitiveness of the Australian Rail Sector: A Systems Approach to Improving Service Quality
by Hadi Ghaderi, Stephen Cahoon, Hong-Oanh Nguyen
Abstract: The productivity of rail freight transport in Australia is hampered by various impediments. These include infrastructure constraints, commercial barriers, and inconsistent standards and policy, all of which influence the quality attributes of the rail freight service in different ways. Therefore, in order to develop strategies to make rail an attractive mode of transport, it is critical to identify these impediments and assess their relevant influence on the quality of rail service. By adopting a systems approach to competitiveness, this research aims to empirically examine the impact of impediments faced by the rail sector. This approach is beneficial as it: (i) identifies the distinct impact of each impediment on the different freight service attributes (FSA); (ii) provides important insights to improve the rail service quality; and (iii) aims to assist government and industry to develop informed transportation and infrastructure planning decision making by identifying the poorer performing areas of system. The analysis identified the key factors influencing the quality of different FSAs relating to (i) infrastructure management; (ii) interoperability; and (iii) organisational and commercial relationships. The implications derived from this study indicate that the freight rate is still a key area for rail to achieve competitive advantage considering the market characteristics.
Keywords: Rail freight, Intermodal, Competitiveness, Freight logistics, rail stakeholders
- A Hybrid Approach using Data Envelopment Analysis & Artificial Neural Network for optimizing 3PL Supplier Selection
by Rakesh Raut, Sachin Kamble, Manoj Kharat, Hemendu Joshi, Chirag Singhal, Sheetal Kamble
Abstract: Today third-party logistics (3PL) service providers are into almost all the businesses right from providing raw material to packaging. 3PLs are also getting involved in customers concerned with operations. At a suitable price and consideration of all affecting criterias anything can be outsourced. Any exporter needs to find a smart balance of what to perform in-house and what to hire outside providers to do (i.e. increase verticals and reduce horizontal Supply Chain operations). Thus, the demand of 3PL provider has become an important issue for organizations seeking quality customer service and cost reduction. The current research presents an integrated data envelopment analysis (DEA) and artificial neural networks (ANN) methodology for the evaluation and selection of 3PL providers. DEA is employed to identify the maximally efficient 3PL and to eliminate the unsuitable ones; and, ANN to rank and make the final selection. The proposed method enables decision makers to better understand the complete evaluation and selection process of 3PL selection. Furthermore, this approach provides a more accurate, effective, and systematic decision support tool for 3PL selection. Finally, an actual industrial application is presented to demonstrate the proposed method.
Keywords: Third party logistics (3PL), Service Provider evaluation and selection, Data Envelopment Analysis (DEA), Artificial Neural Network (ANN).
- Developing a Coordination framework for pharmaceutical supply chain: using analytical hierarchy process
by Gholamhossein Mehralian, Asieh Moosivand
Abstract: Managing independent members who share common goals is a frequent concern in any supply chain. More specifically, due to the critical role of the pharmaceutical industry in producing and delivering the right product to the right people at the right time, coordination of pharmaceutical supply chain (PSC) members is a critical factor. Therefore, the purpose of this study is to identify and prioritize factors affecting coordination of a PSC. The analytic hierarchy process (AHP) is used to prioritize six strategic criteria, with 26 sub-criteria, for coordinating PSC operations. To run AHP, 44 interviews were performed to collect data for deep analysis. In this study 26 factors affecting coordination in a PSC were grouped to the six strategic factors. The results showed that, of these factors, organizational structure is perceived as the most important factor, followed by information technology, relationship and decision-making, mutual understanding, management commitment, and regulatory affairs.
Keywords: Coordination, Pharmaceutical supply chain, AHP, Iran.
- Inventory management of perishable products in a retail business: A comparison with and without in-store replenishment policies under different purchasing batch sizes
by Navee Chiadamrong, Rigzin Lhamo
Abstract: Perishable products are products in daily life that expire or decrease in quality or value over time. As their freshness level decreases with time and inventory is lost by deterioration with time, traditional methods for managing inventory are not suitable for perishable products. Additional mechanisms are then required to manage the inventory of such products. In the study, taking into consideration the age of perishable inventories, these mechanisms are investigated in different scenarios, and with different cost combinations to study the effect on the inventory management of perishable products. The outcomes of the replenishment policies under different purchasing batch sizes with and without a backroom are also compared to find out how and in what situations the policy with backroom storage outperforms the others and can lead to cost reduction and higher profit as compared to the case without backroom storage. These findings help firms decide the best policy for managing perishable products in a certain business environment.
Keywords: inventory management; perishable products; in-store replenishment policies; simulation and optimization
- Developing decision support system for heterogeneous fleet vehicle routing problem using hybrid heuristic
by Nitin Sakhala, Jitendra Jha
Abstract: In last few years, there has been an increasing use of optimization packages and decision support system (DSS) for the efficient and effective decision making. A significant variant of vehicle routing problem (VRP) arises when a fleet of vehicles is characterized by different capacities and operating costs, which is known as heterogeneous fleet vehicle routing problem (HFVRP). This paper aims at determining the optimal composition of fleet and set of routes to be accomplished by a fleet of heterogeneous vehicles for serving a given set of customers with the objective of minimizing the total routing cost. To obtain the solution of the HFVRP, implementations of construction heuristics (savings algorithm, nearest neighbour, branch and cut) and improvement heuristics (2-Opt and Or-Opt) are achieved through development of a DSS which eventually leads to proposal of a hybrid heuristic for route optimization.
Keywords: Heterogeneous fleet, vehicle routing problem, decision support system, improvement and construction heuristics
- A Comprehensive Review of Warehouse Operational Issues
by Bhavin Shah, Vivek Khanzode
Abstract: This paper comprehensively discusses the existing state-of-the-art warehousing literature and highlights concerned research issues as per the proposed taxonomy. All previous reviews broadly focus on warehouse design and operational issues ignoring performance measures affecting each function of warehousing and overall productivity. Therefore, this paper tries to identify the specific performance measures and methods, and explore their impact on the overall logistics system. Each individual section has been concluded with important findings and these are summarised along with converged research guidelines in the last section. The proposed gaps would provide a future road map for research in existing and other unexplored directions in warehouse operations and management.
Keywords: Warehouse management, Performance measures, Automated warehousing system, Productivity, Materials handling equipment, Lean warehouse design
- Examining the Influence of Information System Ratings on the Performance of 3PL Companies
by Seong-Jong Joo, Gawon Yun
Abstract: This study examines the influence of information system ratings on the performance of third-party logistics (3PL) companies using two DEA models along with one-way ANOVA. The findings of this study are twofold: first, there is no significant performance difference at a group level by the information system ratings, which has been confirmed with analysis of variance; second, however, this study has found individual performance differences due to the information system ratings using data envelopment analysis. The major contribution of this study is the first attempt to measure 3PL performance in conjunction with information systems that help supply chain management with tracking and locating products and sharing information among supply chain players.
Keywords: 3PL Companies; Information Systems; Benchmarking; Data Envelopment Analysis; Performance Measurement
- Internal logistics management: Brazilian warehouse best practices based on lean methodology
by Augusto Reis, Gustavo Stender, Ursula Maruyama
Abstract: In Brazil, a developing country, companies must continuously improve and specialize. Thus, in order to mitigate threats from competitors, logistics warehouse management has become a contributing factor for organization success and part of strategy. In this sense, the more space and optimizing inventory operation, the better material flow from production line up to service level, deploying profitable and productive results. Therefore, technical improvements in internal operations are critical for the studied organization survival. In this study, we intend to demonstrate how best practices and tools based on lean manufacturing methodology are able to increase efficiency by reducing costs and waste in a company of Oil & Gas industry. This qualitative research integrated in a field research comprises company's warehouses visitation, non-invasion observation and employees interviews. The result of this paper proposes solutions with low costs, mitigating waste performance to outline a production enhancement.
Keywords: supply chain; lean manufacturing; internal logistics
- Evaluating import cargo performance through Tanjung Priok sea port vs. Cikarang dry port - a case study in a FMCG company in Indonesia
by Elia Oey, Vanessa Setiawan
Abstract: In the era of globalization, inter-market cargo movement is common in industry. Monitoring & improving inter-market transit time for cargo and choosing which port of entry is then essential for products and company. This research is based on a case study in a fast moving consumer good company operating its two facilities in West Java, Indonesia. Currently it uses Tanjung Priok as port of entry, but with continuous volume increase and congestion in Tanjung Priok, the company is evaluating Cikarang Dry Port (CDP) as alternative port of entry. The study concludes that cost saving is possible when using CDP for its cargo from Malaysia (MY). It also suggests monitoring the time component of in-transit time using statistical process control X-chart to cater prevalent variability and be flexible for future possibility.
Keywords: Cikarang Dry Port (CDP); Inter-Market transit time ; Tanjung Priok (TP);
- The Influence of Environmental Attitude on Consumers Intentions To Participate in a Take Back Program
by Siti Mahsanah Budijati, Subagyo , Muhammad Arif Wibisono, Nur Aini Masruroh
Abstract: It is necessary to discover the influential factors on consumers intentions and behaviour to develop an effective reverse logistics. This paper presents an evaluation of the influence of environmental attitude on consumers intentions to participate in the mobile phone take back program. The evaluation was based on a survey toward 355 mobile phone users in Indonesia and implemented a structural equation modelling. The result showed that environmental attitude had positive and significant influence on consumers intentions. Furthermore, the factors that influence positively and significantly on environmental attitude were ethics and control, while environmental value had a positive influence on environmental attitude but not significant. From this result, it is noteworthy for mobile phone companies that in promoting the take back program they need to bring out the ethical and self competence themes to inspire the environmental attitude of the consumers.
Keywords: environmental attitude; consumersâ€™ intentions; take back program; reverse logistics; RL.
- MATHEMATICAL MODEL FOR PLANNING THE LAYOUT AND STACKING OF GRANITE BLOCKS IN A MARITIME TERMINAL
by Rodrigo Rosa, Eliane Gerzelj, Karina Fraga, Bianca Arpini, Dahlen Silva
Abstract: The break-bulk trade has a significant role in international maritime trade. Brazil exports several break-bulk cargoes, especially granite blocks. The port administration should plan the yard operations, putting more granite blocks in the same area and also reducing the distance traveled by the trucks from the storage yard to the seaside. This paper proposes a mathematical model to plan the layout of the storage yard, named 3D-Yard Allocation Problem (3D-YAP) that considers that a small block goes on top of a big block, only blocks from the same vessel can be stacked in one stack and blocks can be rotated on the X-Y plane. The model was tested on instances based on real data from Praia Mole Terminal (PMT), Brazil, that were solved by CPLEX 12.6. It is also important to say that the model can be applied to any kind of break-bulk cargo in any port yard or terminal.
Keywords: 3D Yard Allocation Problem (3D-YAP). Break-bulk Port. 3D-Bin Packing Problem.
- Multi Period Disassembly to Order of End of Life Product based on scheduling to maximize the Profit in Reverse Logistic Operation
by Sathish T , J Jaya Prakash
Abstract: In recent era, the creation of electronic contraptions is expanding step by step, which leads tremendous electronic waste. This is the condition drives as a result of the current individuals expecting new innovation in a brief time. This circumstance makes the manufacturers in a circumstance to create the new item in a brief time, so the current items need to either disposed or dismantled. In this circumstance the manufactures wanted to re-manufacture the end-of-life (E-O-L) items to meet the component necessity in the new items production. In this sense in our previous work we exhibited a methodology to choose the optimal number of take back product, so that the aggregate expense needed for the reverse logistic (RL) can lessened. In this paper we exhibited a novel methodology for the RL operation of E-O-L items, in view of an optimal scheduling algorithm. In the previous work we have locate the optimal number of take back E-O-L products for the disassembly-to-order (D-T-O), and this paper displayed the procedure to legitimately schedule the machines to disassemble the products, so that the aggregate time as well as the total cost needed for the RL operation can diminished. In the proposed structure artificial bee colony (ABC) algorithm is utilized. The proposed framework drives the preferred performance over the existing scheduling algorithms.
Keywords: Reverse logistic; end-of-life product; disassembly-to-order; meta-heuristic optimization; artificial bee colony algorithm; disassembly scheduling.
- A COLLABORATIVE SUPPLY CHAIN MODEL FOR NON-FOR-PROFIT NETWORKS BASED ON COOPERATIVE GAME THEORY
by Vladimir Balza-Franco, Carlos D. Paternina-Arboleda, Víctor Cantillo, Luis Fernando Macea, Diana G. Ramírez-Ríos
Abstract: In both commercial and non-for-profit logistics networks, collaboration among supply chains could be an important strategic resource. Even more, the integration of the supply chain could guarantee the efficiency of the different chains involved in such operations. This paper considers a tactical model for the optimization of a commercial supply chain model, inspired on a previously developed post-disaster logistics model; the model involves the cooperation among the different suppliers of the supply chain. In order to evaluate the effect of cooperation among the different competitors, a logistic network was simulated and several cooperation scenarios were considered, based on the strengths of each one of the actors involved. The model aims for the minimum cost of supplying a specific item for the network and, at the same time, it allows for the different suppliers to observe their benefits of cooperation. Cooperative game theory is approached and Shapley value is calculated in order to determine the distribution of costs as well as the utilities of the players involved, determining feasibility of the cooperation scheme designed.
Keywords: Collaborative supply chain; horizontal collaboration; non-for-profit supply networks; cooperative game theory, simulation; Shapley value
- Performance Measurement System Using Balanced Score Card and Tracking Tool - a case study in a pharmaceutical company
by Elia Oey, Nathania Mulianti
Abstract: Every organization needs to measure where they are before they can make further improvement. In supply chain management, where suppliers and customers involved, it is important to have a comprehensive and aligned performance measurement system. The study is based on a multinational pharmaceutical company in Indonesia. It aims to refine the performance measurement system for its export department. The export activities involve multiple logistic service providers as their suppliers and several inter-market customers. The Performance measurement system is done based on Balanced Score Card (BSC) concept. The study give practical approach on implementation of performance measurement system (PMS) in middle and part of organization, aligning its internal needs and external environment, without losing BSC integrity. A tracking tool is also developed to assist in measuring and monitoring the KPIs.
Keywords: KPI, Performance Management System, Balanced Score Card; Tracking tool.
- Designing an integrated multi-echelon supply chain network with competition
by Isa Feyzian-Tary, Jafar Razmi, Mohamad Sadegh Sangari
Abstract: This paper develops a model for competitive supply chain network design which investigates competition between new and existing chains where demand is deterministic and price-dependent. The network consists of raw material suppliers, manufacturers, retailers, and demand market. The supply chains compete in a non-cooperative manner and manufacturers produce homogeneous products. The objective is to maximize the future profits of both chains. First, the problem is formulated by mathematical programming and Lagrangian theory is used for adding the constraints to the objective function. Then, the equilibrium conditions are derived and the problem is formulated as a finite-dimensional variational inequality model. Qualitative properties of the equilibrium pattern are derived to establish existence and uniqueness results under reasonable conditions. The modified projection method is used to solve the variational inequality problem. Finally, a numerical example is presented to illustrate the efficiency of the proposed model and analyze the results under different conditions.
Keywords: Supply chain network design; Competition; Nash equilibrium; Variational inequality; Modified projection method.
- THE EVALUATION OF PORT GOVERNANCE ACTIONS BY PORT USERS PERSPECTIVE: A STUDY IN THE PORT OF SANTOS, BRAZIL
by Guilherme Bergmann Borges Vieira, Jonas Mendes Constante, Ricardo Dutra Scarpellini Silveira
Abstract: This paper aims to analyze the perception of port users about the governance actions in the Port of Santos (Brazil). This is an important approach since most studies regarding port governance address governance structure and port functions, but do not consider the actions to be taken to improve the coordination of port logistics chain. The sample considered was composed by experienced managers of 30 international freight forwarders that operate in the referred port. In order to ensure the quality of the sample were selected only managers with higher education and at least 5 years experience in the studied sector. Through a quantitative and descriptive approach, with data collection by means of a survey, the different governance actions related to four dimensions of a considered governance model were evaluated from the perspective of users. The results indicate that the Port of Santos develops governance actions incipiently in all dimensions, revealing that the management of the port still needs to evolve to achieve a higher level of coordination.
Keywords: Port, Governance, Actions, Brazil, Port of Santos
- Strategic Outsourcing Objectives Drive 3PL Selection Criteria in India
by Vijayakumar Sangam, Himanshu Shee
Abstract: This paper examines the extent to which supply chain outsourcing objectives determine the selection criteria for 3PL service providers. While the 3PL selection criteria are researched earlier, there is little understanding how they are influenced by the strategic objectives of an organisation. Using a cross-sectional survey of 297 logistics and supply chain professionals from across industries in India, structural equation modeling (SEM) analysis reveals that strategic outsourcing objectives are the likely predictor of the 3PL selection criteria. The respondents perceived higher customer satisfaction, reduction of ICT legacy systems, capital investment avoidance and access to state-of-the art technology that influence the decision on selection of 3PL service provider. The findings provide shipper managers an insight on how to purposefully assess the selection criteria ensuring their alignment with strategic objectives of outsourcing.
Keywords: 3PL selection criteria, third-party service provider, strategic outsourcing objective, India
- A two warehouse inventory model for deteriorating items with variable demand under alternative trade credit policy
by Ali Akbar Shaikh
Abstract: In this paper, we have developed an inventory model for single deteriorating items with two separate storage facilities (own and rented warehouses) due to limited capacity of the existing storage i.e., own warehouse considering allowable delay in payment. The demand rate of this item is dependent on continuous time, selling price of the item and the frequency of advertisement. Partially backlogged shortages are allowed with a rate dependent on the duration of waiting time up to the arrival of next lot. To formulate the model, we have considered different realistic situations. The corresponding problem has been formulated as constrained non-linear mixed integer problem and solved by Generalised Reduced Gradient (GRG) method. Finally, a numerical example has been considered to illustrate and validate the model. Sensitivity analyses have been carried out by changing one parameter at a time and keeping the other at their original value.
Keywords: Inventory; deterioration; partially backlogging; permissible delay in payment, frequency of advertisement
- A Genetic algorithm based approach for unbalanced assignment problem in interval environment
by Asoke Kumar Bhunia, Amiya Biswas, Subhra Sankha Samanta
Abstract: The goal of this paper is to propose an approach based on genetic algorithm for solving unbalanced assignment problem with lesser number of agents than the number of jobs under the assumption that the cost/time for assigning a job to an agent is interval number. Also an additional constraint on the maximum number of jobs allowable to agent(s) is considered. In the proposed approach, the existing real coded genetic algorithm is extended for interval valued fitness with the help of interval order relations (Bhunia and Samanta ) and two different versions of algorithm based on two crossover operators is developed, one is newly proposed Extended One-point Crossover and the other, Inverse Exchange Crossover. Then, to test the performance of different versions of the algorithm and also for the practical demonstration of the problem, three test problems are considered and solved. Finally, a fruitful conclusion is drawn regarding the performance of both the versions of genetic algorithm.
Keywords: Unbalanced assignment problem, Genetic algorithm, Interval order relation, Interval mathematics.
- Risk Management Process towards Operation Performance in Supply Chain Management: A Survey of Manufacturing SMEs
by Ali Haj Aghapour, Govindan Marthandan, Gun Fie Yong David, Suhaiza Zailani
Abstract: Risk management has become an important area in supply chain management since the late 1990s. However, less empirical studies have been reported in the literature that links risk management practices to performance, especially among SMEs. This paper aims to empirically investigate the sequential impact of this managerial process on non-financial performance of three execution decision areas of the SCOR model. Therefore, a cross-sectional study was conducted among manufacturing SMEs in Iran. Data was collected from 160 high managers with knowledge of past and present organizational practices. Using partial least squares modeling (PLS-SEM), analysis of manufacturing plants from six industries indicates that superior risk identification supports the subsequent risk assessment and this in turn leads to better risk mitigation. The model also explains 38% of the variance observed in supply chain operation performance. Accordingly, to ensure better supply chain operations in terms of reliability, flexibility and responsiveness, cost and assets, the findings of this study recommend SMEs to pay more attention towards risk analyzing practices on one hand and distribution KPIs on the other hand. However, the study was based on decision makers perceptions and the participation of divergent industries creates common limitations and future research orientations.
Keywords: Supply Chain Risk Management, SCOR Model, process-based operation performance measurement, Partial Least Squares Modeling and Small-to-Medium Enterprises
- Supply chain performance measurement using SCOR model based on interval-valued fuzzy TOPSIS
by Arezoo Moharamkhani, Ali Bozorgi-Amiri, Hassan Mina
Abstract: Performance measurement is known to be the best way of investigating the supply chains' success. In this regard, managers can identify the root causes of weakness points and improve supply chain's performance through analyzing and solving these problems. Concerning this problem, various supply chain performance evaluation models have been presented in literature. Through all of the models, this paper used Supply Chain Operations Reference (SCOR) model for performance measurement of three Iranian automotive supply chains. First SCOR model is employed to define the performance criteria. Afterwards, Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is used to determine the supply chain that performs best. In this paper, experts judgment is used to determine the criterias value and weight but uncertainties in experts judgment was unavoidable, also experts cannot reach an agreement on the method of defining linguistic variables based on fuzzy sets. So, paper used interval-valued fuzzy set to solve these problems. To the best of authors knowledge, this is the first study that have applied interval-valued fuzzy TOPSIS in group decision-making in order to evaluate and improve the performance of supply chains on the basis of SCOR model.
Keywords: Interval-Valued Fuzzy TOPSIS; Performance Measurement; Supply Chain; SCOR Model
- DETERMINATION OF VEGETABLE POSTHARVEST LOSS IN THE LAST-MILE SUPPLY CHAIN IN TANZANIA: A LEAN PERSPECTIVE
by Martin Dome, Sadananda Prusty
Abstract: ABSTRACT: rnPurpose Global population growth exerts tremendous effect to the extent of constraining the food supply chains. Consequently, this calls for serious efforts in minimising food wastes upheld in agro-supply chains. Fresh vegetables are perishable in nature hence more vulnerable to postharvest losses (PHLs). This paper aims at determining PHLs experienced and establish the most prone channel for high PHLs.rnDesign/methodology/approach This study employed a case study strategy. Both primary and secondary data were collected using self-administered questionnaire. The questionnaires were distributed to a multistage sample in five popular vegetable markets of Kilombero, Arusha Central Market, Samunge, Jakaranda and Unga Ltd in Arusha city. Analytical methods were used to determine PHL both in terms of quantity and value as well as the profitability achieved by last-mile traders using tomatoes, carrots and cabbage as selected vegetables.rnFindings The study found out that more PHLs occur at the retail stage and is more than twice compared to the amount at the wholesale stage. Cabbage exhibited the lowest turnover rate followed by carrots and tomatoes. Similarly, cabbage registered the highest PHL rate followed by tomato and carrots. On average, wholesalers cum retailers registered a PHL rate of about three times those of wholesalers per se. Retailers constituted 70% of respondents who acknowledged to have faced PHL. It was also found that, the longer is the chain the more PHL was sustained. rnOriginality/value The vegetable PHLs in Tanzania has remained understudied, and this study tried to cover this gap in academia.rn
Keywords: Postharvest loss; Vegetable supply chain; Perishable produce; Lean approach; Last mile supply chain; Tomato; Carrots; Cabbages.
- A fuzzy mathematical model for supplier selection and order allocation considering green vehicle routing problem
by Roohollah Ramezanzadeh Baraki, Farhad Kianfar
Abstract: In recent years, with the expansion of environmental issues and the consciousness raising of the customers, companies are experiencing huge pressure from shareholders and the government for greater compatibility with their environment. Companies and industry owners must implement green operations in their daily activities to be able to remain in the competitive atmosphere of the environment. One of the most important operations is cooperating with green suppliers. In this study, a multi-objective mathematical model is proposed to select suppliers and allocate optimal orders to them in a two-echelon supply chain, including supply and distribution echelons. The proposed model focuses on the routing of each supplier in addition to the selection of suppliers. Moreover, the possibility of storage, multi-product and multi-period state, and stair discount constitute the other assumptions of this model. Finally, the proposed model was implemented in a food distribution chain in Iran to validate it. The obtained results suggest the efficiency and effectiveness of the proposed model
Keywords: Supplier selection and order allocation, Mathematical modelling, Fuzzy theory, Vehicle routing problem
- A Systems Approach to Mapping Logistics Systems Performance of Small and Medium Manufacturing Enterprises
by Hemamala Krishnan, Sanjay Banerji, Mridula Sahay
Abstract: Logistics systems are complex networks of facilities that are designed to deliver products / services to customers with the objective of providing superior customer service in a most efficient manner. Measuring the performance of these systems is challenging owing to their structural complexity. Logistics facilities in the system are non-linearly interconnected with material, information and money flows causing response delays in the system. Measuring the performance of logistics systems therefore, requires a comprehensive understanding of the structure and behaviour of these systems. This paper proposes a systems approach to understand the structure of logistics system of small and medium manufacturing firms. A causal loop (Influence) diagram is proposed for mapping the system that identifies various key components of a logistics system - resources, performance drivers and outcomes and explains their interrelationships using feedback loops. The diagram explains the structure of the system that causes the observed system behaviour by describing how the deployment of logistics resources influences the outcomes through performance drivers.
Keywords: Logistics, Logistics system structure, Key drivers of performance, Feedback loops, Systems approach, Causal Loop / Influence Diagrams
- Change Management in Indian Pharmaceutical Industry: a case study
by Umesh Jamwal, Dilbagh Panchal, Anish Kumar
Abstract: The aim of this study is to perform qualitative analysis for finding out the best sequence of target practices for a pharmaceutical industry located in northern part of India. The finding of best sequence of target practices helps in replacing the existing practices and hence improving the business outcome of the particular industry. The analysis has been done using a qualitative approach called Matrix of Change (MOC). The qualitative information collected from different areas such as organisational System, Structure, Culture, Technology and People have been used for carrying the effective change management in the considered industry. The analysis results were supplied to top management of the considered industry which would be highly useful for the considered industry in the expansion of its business globally.
Keywords: Pharmaceutical industry, qualitative analysis, Target practices, change management, Matrix of Change
- The impact of the transport policies on marketing charges in the rail transport comparisons between the European Union member states
by Danica Murko, Zlatka Stok
Abstract: In recent years, the European Union devoted much attention to the transformation of a common rail market. This paper, therefore, focuses on intermodal rail transport in Slovenia. Subsidising intermodal rail transport in Slovenia between Austria and German is a current practice.
The European Commission has studied internalising external costs for several years. In our research, we have conducted a review of the situation in the field of marketing for the use of public rail infrastructure in Slovenia.
We suggest that the price of rail infrastructure charges gradually increase so that the funds obtained from marketing charges in 2020 accounts for half of the funds needed for the purpose of maintaining existing public rail infrastructure. However, investments in the modernisation of rail infrastructure are also crucial. Modernisation is the only way to ensure the competitiveness of rail transport services in the future.
Keywords: public rail infrastructure, usage charges, marketing, investments into public rail infrastructure, charging model, research.rn
- Land Transportation Assets Potential Future Trends and the Third Party Logistics Providers in Emerging Markets, with a Case Study Applied in Brazil
by Douglas Tacla, Rui Botter
Abstract: This paper looks at Third Party Logistics (3PL) asset strategy options for land transportation in emerging markets through a case study of truck operations in Brazil. The fundamental question to be answered is: What is the preferred business model for a third party logistics (3PL) provider in emerging markets regarding asset ownership? That is, is it preferable for the 3PL to own and operate trucks? An opinion survey was deployed and analysed using statistical methods in association with market trend and financial aspects, interpreting the data in line with concepts identified through a literature review concerning the theme. This study is motivated by the challenges and decisions that the 3PL faces nowadays: whether to act as an integrator, managing and/or owing assets; or develop a business as a Leader Logistic Provider (LLP) managing third parties and/or outsourcing services. Moreover, global companies must integrate their business model in emerging markets with their global strategy. The results indicate that asset ownership may be a good strategy to access specific niches or enter a particular market, but this is not the current tendency of the logistics industry in emerging markets.
Keywords: Land Transportation, Transportation Assets, Contract Logistics Industry, 3PLâ€™s Business, Logistics in Emerging Markets, Cargo Transportation Strategy
Special Issue on: "ICIL 2014 "Innovation and Industrial Logistics,"
- Influence of stock shortage in integrated logistic systems : an under-estimated importance
by Raymond Marie
Abstract: When evaluating performance of flow systems with such indicators as ``throughput'' or ``response time'',
it is known that random delays with high dispersions degrade significantly the performances of the systems.
Here we focus on the particular case of stock shortages in integrated logistic systems. These stock shortages create random delays on the component delivery and so they are the sources of disorders in the behaviour of the systems they impact.
In this paper, we study the squared c\oe fficient of variation of the random variable which is a pertinent metric for evaluating the risk on the performances of the flow systems involved by the dispersion of the variable. After elaborating a realistic random model of an inventory, we present a way to exhibit the squared c\oe fficient of variation of the duration of the stock shortages.
In the following part, we consider the random variable corresponding to the potential waiting times of all the orders which, for well tuned systems, has a relatively high probability to take the value zero. We show that the distribution of this latter variable admits a squared c\oe fficient of variation much higher than the former one. We also exhibit a few numerical examples in order to raise the reader awareness of the risk of under-estimating the importance of the stock shortages in integrated logistic systems.
Keywords: integrated logistic system; stock shortage; backorder; performance of flow systems; stock shortage probability; coefficient of variation; squared coefficient of variation; service level agreement; penalties.
- Triple-Objective Models for Portfolio Optimization with Symmetric and Percentile Risk Measures
by Bartosz Sawik
Abstract: The purpose of this paper is to compare three dierent triple-
criteria portfolio optimization models. The rst model is constructed
with the use of percentile risk measure Value-at-Risk and solved by
mixed integer programming. The second one is constructed with the
use of percentile risk measure Conditional Value-at-Risk and solved
by linear programming. The third one is constructed with the use
of a symmetric measure of risk - variance of return - as in the
Markowitz portfolio and solved by quadratic programming. Cardinality
constraints are formulated in all models that limit the number of assets
selected in the portfolio. Computational experiments are conducted
for triple-criteria portfolio stock exchange investments. The results
obtained prove, that the triple-objective portfolio optimization models
with Value-at-Risk and Conditional Value-at-Risk could be used to
shape the distribution of portfolio returns. The decision maker can
assess the value of portfolio return, the risk level and number of
assets choosen in the portfolio, and can decide how to invest in a
real life situation comparing with ideal (optimal) portfolio solutions.
The proposed scenario-based portfolio optimization problems under
uncertainty, formulated as a triple-objective linear, mixed integer or
quadratic program are solved using commercially available software
(AMPL/CPLEX) for mathematical programming.
Keywords: multi-criteria decision making, portfolio optimization, percentile and symmetric risk measures, weighting approach, mathematical programming
- NEUROFUZZY TECHNOLOGY TO EVALUATE THE ENVIRONMENTAL PERFORMANCE OF THE CARGO TRANSPORTATION MODE
by Cristina Sinay, Suzana Kahn Ribeiro, Isolina Cruz, Laura Sinay
Abstract: The operation of a transportation system is a factor of development for any region. However, the benefits provided are often accompanied by negative impacts on the environment, especially if the afore-mentioned operation is inadequately planned and controlled. This being so, the objective of this work is to present a procedure for obtaining an index representing the environmental performance of a cargo transportation mode as an instrument for guiding the decision-making process with regard to the choice of a sustainable mode for cargo transportation. The proposed index will be derived from the integration of several indicators related to different environmental aspects that could be damaged by the different activities performed. This integration will be achieved using fuzzy logic and neurofuzzy architecture. This index will assist enterprises when they are planning a sustainable cargo transportation service, environmental agencies in controlling such a service and society by preserving the environment and ensuring quality of life.
Keywords: environmental performance of cargo transportation, fuzzy logic in environmental performance, sustainable transportation mode.
- Stochastic Timed Petri Nets to dynamically design and simulate industrial production processes
by Marco Bortolini, Maurizio Faccio, Mauro Gamberi, Riccardo Manzini, Francesco Pilati
Abstract: Stochastic timed Petri nets are among the most effective languages to model event driven uncertain processes. Their adoption in the industrial sector is even more diffuse and of potential help for the practitioners. This paper presents a stepwise approach to support the dynamic design and simulation of manufacturing and assembly production processes. An industrial application from the white good sector, based on a semi-automatic assembly line is, further, discussed demonstrating the approach flexibility and the modelling language key strengths. The stochastic timed Petri net model for such a scenario is described together with the simulation outcomes of interest for the assembly line design and the production and maintenance activity scheduling.
Keywords: Stochastic timed Petri net, modelling language, industrial system, stochastic event, integrated modelling, stepwise approach, dynamic design, simulation, resource planning, manufacturing, assembly, reliability, maintenance.
- Green Supply Chain Management Performance: a study of Brazilian oil and gas companies
by Iara Tammela, Alberto G. Canen, Felipe C. Paganelli
Abstract: The oil and gas industry in Brazil has become a very important sector for the countrys economy due to the discovery of new oil and gas reserves. In 2012, a deep water drilling accident in the coast of Brazil spilled thousand barrels of oil in the environment, causing extensive damage that will last for years. Green Supply Chain Management (GSCM) seeks to minimize the environmental impacts caused by industries logistical activities and processes. The aim of this paper was to conduct an exploratory study of companies located in Brazil. The results are related to the application of the theoretical indexes proposed for the oil and gas industrys GSCM.
Keywords: green supply chain, oil and gas industry, performance indexes, exploratory study, Campos Basin
Special Issue on: "ICIL 2014 Innovation and Industrial Logistics,"
- The strategic relevance of logistics: new perspectives
by Wanja Wellbrock, Ingrid Göpfert, Michael Stephan, Malte Ackermann
Abstract: We measure the strategic relevance of logistics in multinational corporations (MNCs) using two proxies: (1) the communication of logistics endeavors in annual reports and (2) the employment of logistics competencies on the top management level. We define logistics competencies as the employment of executive board members whoare assigned to logistics tasks. We examine 360 MNCs and their annual reports of the years 2000, 2004, and 2008 using content analysis. We show that there are considerable differences in the communication efforts amongst the geographical regions and the associated industries using the standard industrial classification (SIC) scheme. We present evidence that corporations originating in Asia are more likely to employ logistics competencies at the top level than their North American and European counterparts. On the other hand, Asian corporations are much more taciturn in their corporate disclosure policy. On an industrial level the transportation and chemicals subsectors are more likely to employ logistics competencies on their executive boards than other subsectors. Additionally, using partial point-biserial correlations. We demonstrate that the employment of logistics competencies is related to higher financial performance, further substantiating the strategic relevance of logistics for MNCs.
Keywords: Logistics; supply chain management; content analysis; corporate communication; executive board; annual reports; multinational corporations
- PERFORMANCE OF HOSPITALS OPERATING DEPARTMENTS:THE EFFECT OF LOGISTIC PARAMETERS
by Zilla Sinuany-Stern, Nir Shahkoohi, Osnat Cohen
Abstract: Our case study analyses the performance of 24 operating departments in Soroka Hospital in Beer-Sheva, Israel. Data Envelopment Analysis (DEA) was used with 5 inputs and 3 outputs over two years. These inputs and outputs reflected mostly logistic parameters and income of operating rooms. In the three operating sites investigated we found no significant difference in efficiency. We found that simple room utilization ratio is not sufficient for measuring efficiency. As a by-product of DEA, benchmark analysis verified inputs and outputs which need improvements in order to reach full efficiency, relative to their peers.
Keywords: efficiency; data envelopment analysis; performance; logistics; operating rooms; hospitals
- GREENING TRANSPORT ACTIVITIES IN THE FOOD RETAIL SUPPLY CHAIN
by Kristina Petljak, Sanda Renko, Sandra Rasic
Abstract: From an operations perspective, retailers are seeking to manage and improve relationships with their customers, brand image, customer services, etc. in order to underline their green potential, because literature has considered green and sustainable business practices as a means to reducing costs. Among different retail operations and activities, transport and logistics have caused the highest costs and have been insufficiently investigated as well. The main purpose of this paper is to investigate the greening of the transport activities in the food retail supply chain and characteristics of the food retailers` who are leaders in pursuing such activities. In such a way, the paper reveals the impact of food retailers` green initiatives on the way they manage their transport and logistics services. For the purpose of the paper, a quantitative study on the sample of 190 food retail companies operating on the Croatian market was conducted. The results suggest that generally retailers see green transport and logistics activities as an overall positive activity in terms of reducing costs and beyond, however usage of such green practices still differs a lot among observed food retailers.
Keywords: green transport, food retail, food supply chain management, Croatia.