International Journal of Logistics Systems and Management (101 papers in press)
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 •supply chain management •innovation management• innovation process •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; consumers’ 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, 3PL’s Business, Logistics in Emerging Markets, Cargo Transportation Strategy
Barriers Analysis for Green Supply Chain Management Implementation in Power Industry using ISM
by Sheetal Soda
Abstract: As industrial development spills over to developing nations spiralling global energy demand, there is increased concern for environment as power generation is closely associated with environmental degradation and pollution. In contrast to developed nations, the developing nations are relatively lagging when it comes to greening supply chain of power industry. India is fast emerging as a prime energy producer, as well as consumer of energy. The Indian Power industry is witnessing a phase of transition, wherein switchover from traditional operations to modern practices is precipitating; but still there is a long way to go. With sustainable development becoming a buzz word in socio-economic settings the world over, the call for cleaner energy is gaining louder, day by day. At the forefront of the targeted industries blamed for pollution and environmental degradation, lies the Global Power Industry. The answer lies in the adoption of Green Supply Chain Management (GSCM) techniques to various sections of the industry. This research study aims to evaluate prominent barriers and their interrelations in retarding the spread of GSCM culture. The power industry of Punjab (India) has been considered for the study, with the intent to assess the environmental consciousness imbibed and exhibited by its constituent companies in their infrastructural setup and operational undertakings. This research paper makes an attempt to assess the barriers that were identified from extensive literature review and opinions invited from power industry-experts that impede implementation of GSCM by making use of Interpretive Structural Modeling (ISM).A hierarchy-based model was presented with the application of ISM Techniques to identify contextual relationships among the sixteen identified barriers that offer prospects for constructing greener models of Power Industrys Supply Chain. Out of sixteen barriers, Insufficient Government Support and Limited Investment in Green Measures barriers are found to be significant, which invoke unfavorable response from the government. These barriers act as major hindrances in a spread of GSCM across the organization. To enhance the validity of the results so reached, opinions of different industry experts were invited to corroborate the earlier deductions; thereby yielding a more accurate model. This has added to the credibility of the findings.
Keywords: Green Supply Chain Management (GSCM);Barriers, Power Industry;InterpretivernStructural Modeling (ISM)
A hybrid approach based on BOCR and fuzzy MULTIMOORA for logistics service provider selection
by Anjali Awasthi
Abstract: Partner selection is critical to developing successful collaboration for gaining competitive advantage in logistics industry. In this paper, we present a hybrid approach based on BOCR and MULTIMOORA for logistics service provider selection. The proposed approach comprises of three steps. In the first step, we identify the partner selection criteria using four categories namely Benefits, Costs, Opportunities and Risks (BOCR). The second step involves generating linguistic ratings for potential partners on the identified criteria by a committee of decision making experts. In the third and the last step, final partner selection is done using fuzzy MULTIMOORA. Linguistic information (fuzzy numbers) are used to address the lack of quantitative data. A numerical application is provided. Monte Carlo simulation-based sensitivity analysis is conducted to determine the robustness of MULTIMOORA to variation in criterion and decision maker weights.
Keywords: Logistics; Partner Selection; Multicriteria decision making; BOCR; Fuzzy Logic; MULTIMOORA; Sensitivity analysis
Management models of current assets in trading company
by Aleksandr Mishchenko
Abstract: This paper studies management models of current assets in a trading company when initial values are determined and when the parameters of problem are uncertain. Here are the methods to obtain an optimal solution,as well as an approach to estimate the risk of wholesale purchase and algorithm of stability analysis for an optimal solution.
Keywords: optimization problem, branch-and-bound method, solution stability, wholesale purchase, portfolio for wholesale purchase, portfolio risk.
Human Errors in Warehouse Operations: An Improvement Model
by Parama Kartika Dewa, Nyoman Pujawan, Iwan Vanany
Abstract: Warehouse operations are very much dependent on manual works and hence, humans play critical roles. In order to have an excellent warehouse performance, it is imperative to address the human needs so that the errors can be minimized. Papers addressing human factors in warehouse operations are limited. The purpose of this paper is to develop an improvement model that can connect between warehouse performance, human errors in the process, and actions needed to improve the performance. We propose a two-stage deployment procedure, modified from the well-known Quality Function Deployment (QFD). The first stage is to screen human errors that substantially affect warehouse performance. The second stage is to prioritize proposed improvement actions that could address most effectively the human errors. The model is applied to a warehouse operated by a logistics company that handles the storage and distribution of fast moving consumer goods.
Keywords: human factors; improvement model; modified QFD; warehouse operations
Total cost optimisation model for logistics systems of trading companies
by Dmitriy S. Rybakov
Abstract: The purpose of this research is to develop a model for optimising total logistics costs of a trading company. To achieve the aim, a logistics system has been analysed and, as a result, major subsystems, logistics processes and most substantial logistics costs have been identified. The results of the analysis have been used to elaborate conceptual and structural optimisation models. They have been further used to develop a mathematical model considering both direct and indirect costs. The mathematical model has been tested numerically, so a table model has been worked out. The research has resulted in a Boolean linear programming model for determining the values of the indicators of the order cycle time and stock level, ensuring optimal total logistics costs of a trading company. Strategic objectives have been decomposed into the goals of individual departments, expressed with the target values of the indicators of lead time and cargo turnover.
Keywords: optimisation models; total costs; logistics systems; trading companies; total cost optimisation; logistics processes; logistics costs; mathematical models; direct costs; indirect costs; Boolean programming models; order cycle time; stock level; lead time; cargo turnover
Modeling Supply Chain of Rice, Uncertainty Factors and Strategic Supply Management
by P K Das, Dr. N C Nayak
Abstract: Rice is the major staple food of Odisha. Almost 70% of the population of the state depending upon agriculture and out of which the major produced crop is rice. Odisha stood 5th in rice production in India. The impact of techno-environmental uncertainty factors like logistical problems, product specification, opportunistic behavior, on time delivery, average lateness, degree of inconsistency, reduction in cost, on time governance mechanism, increase in knowledge flow between firms and climate change on agricultural ecosystems have been a matter of concern for food security in the present situation. The uncertainty factors that are likely to enhance considerably the climate risk to the major agricultural ecosystems are: increase in temperature, higher carbon dioxide concentrations and abnormal pattern of precipitations coupled with higher frequency, drought and floods. The intent of this study is to fill the gap by providing a framework addressing how to leverage uncertainty factors to improve supply chain performance in the Indian market. In this research, strategic supply management due to the uncertainty factors to rice based supply chain which supports the livelihood security for a very large number of poor and marginalize people in India have been reported. A statistical tool (Full factorial design methodology) has been introduced here to analyze and access qualitative as well as quantitative measures. Models for capturing various uncertainty factors have been developed and the impact of uncertainties on strategic supply management tested. The present work has efficiently demonstrated the different techno-environmental uncertainties and its significance in strategic decision making.
Keywords: Strategic supply management, uncertainty factors, climatic effect, Rice supply chain, modeling.
Configuration selection in Reconfigurable Manufacturing System based on Reconfigurability
by Kamal Mittal, Pramod Jain, Dinesh Kumar
Abstract: Reconfigurable manufacturing systems (RMS) is considered as a major resource of providing variable production capacities and capabilities by different manufacturing companies. For different products needed in small quantities and with short delivery lead time, this is achieved through reconfiguring the system elements over the time. There is a need to develop a suitable performance index for mapping the manufacturing system characteristics. To find the reconfigurability of RMS considering the different characteristics such as modularity, convertibility and diagnosability an index has been developed in this paper. Using weighted sum theory, these characteristics have been mapped together. A case study is given to understand the applicability of the proposed methodology on a given system.
Keywords: reconfigurable manufacturing system (RMS); modularity; convertibility; diagnosability; reconfigurability;
FMEA Based Interpretive Structural Modelling Approach to Model Automotive Supply Chain Risk
by Ajay Kumar Pandey, Rajiv kumar Sharma
Abstract: The purpose of this study is to analyse and model various risks which may disrupt the automotive supply chain. For illustration, an automotive supply chain of tractor manufacturing company has been undertaken, seventeen potential modes of failures or risk sources are identified through close scrutiny of literature and weighted risk priority numbers (WRPN) have been calculated. Out of these seventeen failure modes, eleven are selected as key learnings (by performing SAP-LAP analysis) based upon higher WRPN numbers. Further to model, the structural relationship among these key risks Interpretive Structural Modelling (ISM) approach is used. In order to find out the driving power and dependency of risks MICMAC analysis has been performed. The results of the study demonstrate that the variables i.e. poor planning and scheduling and hazards are the key risk variables (highest driving power) and can be considered as the root cause of the problem. Quality risk, inventory risk and outsourcing risk have strong dependence power and hence can be considered as the most important risks and management shall focus on these for the managing the disruptions in an automotive supply chain.
Keywords: FMEA, automotive supply chain, interpretive structural modelling, case study.
Inventory model with expiration date of items and deterioration under two-level trade credit and preservation technology investment for time and price sensitive demand: DCF approach
by Nita Shah, Urmila Chaudhari, Mrudul Jani
Abstract: In this cut-throat competitive business world, cash-on-delivery is no longer a practice. Consequently, the retailer offers numerous short-term or long term credit limit to the customer. The middle-layered player passes the offer of delay payment to the end users. In addition, most of the items have a fixed lifetime and deteriorate continuously which cannot be sold after its expired dates. However, preservation technology investment can reduce deterioration rate of items in retailers inventory system. In this paper, an inventory model is formulated when retailer offers partial credit which he received from the supplier when demand is decreasing with time and price. The profit function is constructed using inflation rate and risk involved due to offer of credit period in generating revenue. The decision policies are analyzed for the decision maker. Numerical examples are used to demonstrate the theoretical derivations. Sensitivity analysis is carried out for the advantageous scenario depending upon the lengths of the credit periods.
Keywords: Inventory model, Expiration date, Preservation technology investment, Two-level trade credit, DCF approach
Inventory management of supply chain with robust control theory: Literature review
by Azeddine Zemzam
Abstract: Supply chain management (SCM) has become a vital tool for organizations which desire to improve performance and resilience. More and more attention in SCM has been dedicated to inventory. The great potential of control theory to handle inventory problems was evidenced since the early 1950s. In particular, the robust control which is devoted to dealing with uncertainties and minimizing the worst case value of disturbances represents a useful tool to help research in inventory management. This paper aims to provide a review of 37 articles covering the application of robust control in modeling and control of inventory problems according to the considered uncertainties mainly in demand and delay time.
Keywords: Supply chain; Inventory management;Robust control theory;Uncertainties
An analysis of strategic groups in the Third-Party Logistics industry
by Roberta Scarsi, Riccardo Spinelli
Abstract: Third-party logistics is a very heterogeneous industry, moving towards a progressive concentration and services differentiation at the top, but still made up by companies that differ in terms of size, supplied services, and background. This structural variety offers the starting point for a grouping analysis, which aims to identify strategic groups among major players in the industry. 199 third-party logistics service providers (3PLs) worldwide are analysed applying a two-step clustering technique to a wide set of variables which refer to the main strategic drivers for 3PLs. Three strategic groups emerge from the analysis. The first one includes major global players; the second one encompasses less advanced local providers; the third one embraces a large number of firms which are experiencing a transition from simple to more complex and internationally oriented business models.
Keywords: 3PL; third-party logistics; logistics industry; logistics service providers; strategic groups; two-step cluster analysis; grouping analysis; global players; local providers; transitional providers
Multi-echelon Closed-Loop Supply Chain Network Design and Configuration under Supply Risks and Logistics Risks
by Surya Prakash, Gunjan Soni, Ajay Pal Singh Rathore
Abstract: Present day supply chains are dynamically expanding with the increase in globalization but susceptible towards a number of risks too. The risks cause disturbances in supply chain and hinder the movement of products across their stage which ultimately leads to overall increases in supply chain costs. In this paper, a multi-echelon closed-loop supply chain model is considered, where suppliers quality risks (production issues), logistics risks (transportation issues) are mathematically modeled using mixed integer linear programming (MILP) formulation. The paper highlights benefits of adopting the supply chain network design under risk. The comparison of risk and no risk situation is illustrated for a generic closed-loop supply chain network. The findings suggest that risk consideration in supply chain network design is very useful, and its cost is not much higher to the organization too. The supply chain resilience can be achieved with a moderate risk premium. The firms which can pay 10-13% more will be able to sustain in risk events and their network configuration will be robust under supply and logistics risks happenings.
Keywords: Closed-Loop Supply Chain, Network Configuration, Supply risk, Disruptions, Supply Chain Planning, Network Design, Mixed Integer Linear Programming
Models for Solid Transportation Problems in Logistics Using Particle Swarm Optimization Algorithm and Genetic Algorithm
by Abhijit Baidya
Abstract: Transportation policy seeks to improve agency freight and cargo management and enhance sustainable, efficient and effective transportation operations. In this paper, four new fuzzy fixed charge solid transportation problems (FFCSTP) are formulated to maximization the total profit and minimization the total cost of the retailer at the destinations with imprecise values of unit transportation cost (UTC), purchasing cost (PC), selling price (SP), resources, demands, conveyances capacities. Three new constraints (interval-valued weight, volume and budget constraint) are also investigated to formulate the interval-valued solid transportation models. The fuzzy quantities are converted to interval numbers using nearest interval approximation. The interval objective function is approximated by an interval-valued function i.e., transformed to a single objective using weighted sum method and weighted multiplication method. The fuzzy constraints are converted to its equivalent deterministic form using different interval order relations. GA and PSO algorithm are used to obtain the optimal transportation schedule for the proposed solid transportation problem. To validate the results, five equivalent forms of the four proposed models are obtained by using different interval approaches and order relations. During the evaluation of the models, in one case, limitation on the transported amounts is imposed and in other case, no such limitation is used. The models are illustrated with numerical examples and the optimum results of the models are compared.
Keywords: Fuzzy fixed charge solid transportation problem, weight and volume constraint, budget constraint, interval order relations, genetic algorithm, particle swarm optimization algorithm.
Configuration and implementation of a daily artificial neural network based forecasting system using real supermarket data
by Ilham Slimani, Ilhame El Farissi, Said Achchab
Abstract: The purpose of any effective supply chain is to find a balance between supply and demand by coordinating all internal and external processes in order to ensure delivery of the right product, to the right customer, at the best time and with the optimal cost. Therefore, the estimation of future demand is one of the crucial tasks for any organization of the supply chain system who has to make the correct decision in the appropriate time to enhance its commercial competitiveness. In an earlier study, where various artificial neural networks structures are compared including Perceptron, Adaline, No-Propagation, Multi Layer Perceptron and Radial Basis Function for demand forecasting, the results indicate that the Multi Layer Perceptron (MLP) structure of neural network present the best forecasts with the optimal Absolute Error, Mean Squared Error and the lowest Mean Absolute Percent Error. Consequently, the major aim of this paper consists on modeling and implementing a daily demand predicting system using the MLP architecture to forecast future demand of a Moroccan supermarket based not only on historical data, but also with the addition of other inputs and parameters such as previous demand quantities, days classification and average demand quantities. The results are satisfactory and promising, because adding these new inputs to the adopted neural network has a positive impact on the accuracy of short-term demand forecasting manifested in an optimum error. Besides, the accuracy of demand forecasts in a supply chain is a key element of competitiveness and since the results are validated using real dataset, the proposed forecasting model can be implemented as a solution to demand uncertainty in any real supply chain.
Keywords: artificial intelligence; supply chain management; logistics; neural networks; demand forecasting; short term forecasting
AN EOQ INVENTORY MODEL WITH STOCK DEPENDENT DEMAND UNDER PERMISSIBLE DELAY IN PAYMENT
by Trailokyanath Singh, Hadibandhu Pattanayak, Ameeya Kumar Nayak, Niranjan Nirakar Sethy
Abstract: The present paper focuses on an EOQ (Economic Order Quantity) inventory model for deteriorating items having stock dependent demand when delay in payment is permissible. The deteriorating items follow constant deterioration rate. Shortages are allowed and are completely backlogged. The mathematical models are also derived under two circumstances: Case I: The permissible delay period is less than or equal to the shortage time point for settling the account and Case II: The permissible delay period is greater than the shortage time point for settling the account. Numerical examples are provided to illustrate the effectiveness of the proposed methods and solution procedure. Furthermore, sensitivity analysis of the various parameters is carried out and some interesting managerial insights are presented.
Keywords: Constant deterioration, Permissible delay in payments, Shortage, Stock dependent demand
Qualitative studies in supply chain management research: potential contributions of Centering Resonance Analysis
by Marcelo Barbosa, Jonathan Freitas, Marcelo Ladeira
Abstract: The historical strong emphasis on quantitative studies in Supply Chain Management (SCM) is giving place to more qualitative studies. The execution of SCM activities as well as interactions among participants in the chains generates lots of information which can be analysed using qualitative methods. A common methodological problem in such analyses is how to move beyond specific linguistic material to generalizations. One method suited for this is Centering Resonance Analysis (CRA), which allows the synthesis of texts into smaller categories. This article discusses the contributions and potential future use of CRA in SCM field by performing a systematic literature review in studies that adopted this technique. Results showed that CRA has been adopted in SCM since 2010 in order to analyse documents that vary from training materials and corporate social reports to interviews and software documentation. A characterization of methods applied in conjunction with CRA is also provided.
Keywords: Centering Resonance Analysis; Qualitative Methods; Supply Chain Management; Content Analysis; Centering Theory; Systematic Literature Review
A Fuzzy Revised-DEMATEL method to evaluate vehicles fleet maintenance management in uncertainty
by Abdelaziz EL KFITA, Omar DRISSI-KAITOUNI
Abstract: Vehicle fleet maintenance management is an important activity faced by decision makers within public administrations and companies devoted to passengers and freight transportation services, given the importance of fleet availability and reliability to keep a good operation via its service in uncertainty. Revised-DEMATEL and fuzzy set theory based on linguistic variables, have been used in order to evaluate vehicle fleet maintenance process in Moroccan administration to find the most important factors causing unavailability problems of the vehicles fleet. Using this method, the involved factors are separated into the cause and effect groups for conducting decision-makers focus on those criteria (factors) that provide important influence. Following this empirical study the result shows that, within the cause group, the Age, Size and drivers factor is the most important factor affecting Maintenance Service. By contrast, the Effectiveness is the most influenced of the effect group.
Keywords: Revised-DEMATEL; fuzzy set theory; vehicles fleet; maintenance management.
An integrated approach with SEM, Fuzzy-QFD, and MLP for supply chain management strategy development
by Navee Chiadamrong, Tran Thi Tham
Abstract: This study proposes an integrated approach to determine the most suitable strategies, based on Structural Equation Modeling (SEM), Fuzzy-QFD, and Multi-Objective Linear Programming model (MLP). The relationships between supply chain capabilities, competitive advantages, and business performance are identified using SEM. An integrated SEM and Fuzzy-QFD approach is proposed to transform the significant factors into SCM strategies. Then, MLP model is applied to identify suitable strategic actions according to multiple conflicting objectives under a budget constraint. A case study from the Vietnamese food industry is given to illustrate the proposed methodology. The outcome of the study reveals that companies should pay more attention to supply chain capabilities for SCM strategy development, which can help to gain improvement of their competitiveness and business performance. The proposed methodology also provides a comprehensive picture for companies by transforming such relationships into specific SCM strategic actions to obtain the optimal solution according to their preference.
Keywords: Supply chain management strategy; Structural Equation Modeling (SEM); Fuzzy-QFD approach; Multi-Objective Linear Programming model (MLP)
Adaptation of simulated annealing to an integrated municipal solid waste location-routing problem
by Hossein Asefi, Samsung Lim, Mojtaba Maghrebi
Abstract: Waste management and its associated processes and activities are one of the challenging issues for municipalities and other responsible sectors in most mega cities. Due to the population growth and technological progresses nowadays, the amount of waste generation in different types (e.g. recyclables and hazardous wastes) has increased significantly. Municipal solid waste management involves the collection, transportation, recycling, treatment and disposal of different types of wastes. Among the associated costs in municipal solid waste management, the transportation cost as one of the most significant constraints can be effectively economized by efficient planning approaches. This paper aims to present an integrated municipal solid waste management network covering multiple types of wastes concurrently and utilize the location-routing problem framework to minimize the establishment cost of the interrelated facilities (i.e. transfer stations; treatment, recycling and disposal centers) in the network and the transportation cost of wastes in the entire network. The defined problem consists of the concurrent site selection of the locations of the systems all facilities among the candidate locations and the determination of routes and amounts of shipments among the selected facilities to minimize the total cost of transportation and facility establishment. As the addressed problem exhibits the non-deterministic polynomial-time hardness (NP-hardness), an adaptation of the simulated annealing algorithm is proposed in this paper to solve the problem. The obtained results compared against the exact solutions by mixed-integer programming in terms of solution fitness and computing time imply that the employed algorithm works effectively and efficiently.
Keywords: Municipal solid waste, Location-routing problem, Heuristic solution approach, Simulated annealing
Supply Chain Analytics for Enhancing the Maritime Security
by Hokey Min, Yong-Kon Lim, Jong-Won Park
Abstract: Seaports across the world can be a frequent target for illegal activities such as contraband, weapon smuggling, drug trafficking, human trafficking, piracy, and terrorist attacks. Despite the increasing risk of those illegal activities, many ports are not equipped to deal with unforeseen security breaches. Although the use of X-ray scanning technology for cargo inspection has been on the rise due to its effectiveness in detecting potential security breaches, it alone cannot protect the port and its surrounding areas from illegal activities. To maximize the full benefit of X-ray based cargo inspection through enhanced maritime logistics visibility, we propose supply chain analytics which can not only add business intelligence to the cargo inspection process, but also guide the port authority to make informed decisions regarding security protocols. This decision-aid tool is designed to improve port security and productivity by systematically gathering, storing, analyzing, and updating big data related to cargo movement, port infrastructure, and ocean-going vessel traffic. This paper is one of the first to embed supply chain analytics within the maritime security system and gauge its usefulness for enhancing maritime security in global supply chain operations.
Keywords: Business analytics; big data; maritime security; global supply chains
Optimal ordering policies in a multi-sourcing supply chain with supply and demand disruptions-a CVaR approach
by Syed Mithun Ali
Abstract: In this study, we present an analytical framework for supply chain disruptions planning of a multi-agent, multi -product supply chain with an emphasis on Conditional Value at Risk (CVaR) as a risk measure. In a risk-neutral operating condition, the decision maker seeks to minimize the expected cost. On the contrary, a risk-averse decision maker wants to minimize the expected worst-case cost of a system of interest. Considering the significance of the risk of higher cost in supply chain planning and management, this paper makes an attempt for the minimization of expected worst case cost as a CVaR measure. At the same time, the CVaR model targets to compute the response policies of a supply chain system that undergoes supply and demand disruptions. The proposed formulation is illustrated through some numerical examples. In addition, some computational results are also reported to demonstrate the benefits and applicability of the model in supply chain disruptions planning and decision-making process. The results present that the CVaR model shows a considerable difference in response policies in comparing with the expected cost model. Ordering quantities in response to supply and demand disruption are lower in the CVaR model than the expected cost model. In many instances, it is also seen that ordering quantities in response to disruptions tend to become lower when a decision maker becomes more risk-averse. It is expected that the proposed CVaR model would outperform to optimize the supply chain of an organization, in particular, for the purpose of reducing the risk of high cost.
Keywords: Conditional Value at Risk (CVaR); supply chain disruptions management; supply disruptions; demand disruptions; supply chain risks.
Analysis of Critical Factors Influencing the Management of Green Supply Chain Practice in Small and Medium Enterprises
by Aparna Choudhary, Sandeep Mondal, Kampan Mukherjee
Abstract: Increasing concern towards environment has forced the manufacturing firms to adopt green supply chain practice (GSCP) in their business processes. Managing these practices efficiently is a major challenge facing by manufacturing firms. Purpose of this paper is to explore the critical factors for managing green supply chain practice in small and medium enterprises (SMEs), and establish contextual relationship among them. A tentative list of 29 constructs influencing the management of GSCP was identified through extensive literature review and discussion with a panel of experts. A questionnaire was developed and survey was conducted on 162 SMEs. Applying factor analysis, constructs were summarized into eight critical factors. Interpretive structural modeling (ISM) methodology was deployed to develop a structural model of these factors. Considering the outcome of ISM as an input, MICMAC (Matrices Impacts Cruises-Multiplication Appliqu
Keywords: critical factors; green supply chain management; green supply chain practice; factor analysis; interpretive structural modeling; MICMAC analysis; small and medium enterprises
Multi-objective evolutionary algorithm for a ship routing problem in maritime logistics collaboration
by Eric Wibisono, Phongchai Jittamai
Abstract: This paper proposes a multi-objective evolutionary algorithm in maritime logistics collaboration of two liner shipping companies in joint-routing network design. The model is called the ship routing problem and two objectives being minimised are total cost and deviation in fair cost proportion. The method combines NSGA-II and the principles of effective genetic algorithms from the literature, and an example of application with data background from the Indonesian archipelago is demonstrated. Both the method and its application in real-life problems have never been encountered in academic publication, therefore this research has significant contribution and practical values on those fronts. Three dispersal mechanisms are tested with two different mutation probabilities and the results suggest that different rate supports different mechanism. Running times are longer in higher mutation rate, but in general the DV(1) mechanism is faster than both DL mechanisms. Non-dominated solutions are found and translated to joint routings of both carriers.
Keywords: multi-objective evolutionary algorithm; ship routing problem; maritime logistics collaboration; routing network design; Indonesian archipelago
Control Aspects in Humanitarian Logistics
by Thomas E. Fernandez, Nanthi Suthikarnnarunai
Abstract: In this paper, the authors look at the control aspects of three types of organisations involved in Humanitarian Logistics: Humanitarian Relief Organisations (HROs), commercial companies, and military organisations. Looking at both internal and external control mechanisms, this paper explores the suitability of each type of organisation in the three phases of disaster, namely preparedness, emergency response and recovery. They find that, looking at the control aspects alone, both commercial companies and HROs are well suited for logistics in the preparedness phase, while the HROs are best suited in the emergency response phase. In the recovery phase, commercial companies are best suited.
Keywords: Humanitarian Logistics; control aspects; phases of disasters; humanitarian supply chains.
A robust replenishment model for deteriorating items considering ramp-type demand and inflation under fuzzy environment
by Archana Sharma, Usha Sharma, Chaman Singh
Abstract: Supply chain performance directly depends on demand pattern, inventory management and control strategies of organizations apart from other supply chain activities. Effective replenishment policy can increase the performance of logistics and supply chain activities and customer satisfaction. Optimal inventory model can also reduce overall replenishment cost and improve financial performance of the organization. This study focuses on developing a replenishment model for deteriorating products with ramp-type demand rate under the consideration of inflation and partial backlogging. The nature of the demand function is a piecewise exponential function. The proposed model is developed under fuzzy environment, which can easily handle uncertainty and impreciseness associated with parameters. The illustrative numerical example has given in crisp as well as in fuzzy sense to demonstrate the solution procedure for the proposed approach. Sensitivity analysis is also performed to check robustness of the proposed model.
Keywords: Supply chain, Inventory model, Ramp-type demand rate, Inflation, Partial backlogging, Fuzzy
Bi-objective Location-Allocation-Inventory-network design in a two-echelon supply chain using de- novo programming, NSGA-II & NRGA
by Fatemeh Ranjbar Tezenji, Mohammad Mohammadi, Seyed Hamid Reza Pasandideh
Abstract: this paper proposes a bi-objective integrated model for supplier location-allocation, capacity allocation and supplier selection and order allocation problems in a two echelon supply chain. The goals of the proposed model is to (i) select the best supplier(s), (ii) locate the selected supplier(s) in the best location(s), (iii) determine the optimal capacity of selected supplier(s), (iv) allocate the customer(s) to supplier(s), and (v) allocate customers order (order interval). In the first step we proposed a single-objective model to minimize the total costs consist of inventory related costs (purchasing, inventory replenishment, holding and shortage (backordering) costs), transportation costs (fixed and variable costs) and fixed establishment costs. In the second stage we used de novo programming to determine the optimal capacity of selected supplier(s). Therefore, we consider a second objective function to minimize the total costs related to capacity of selected supplier(s) (variable establishment cost). We used NRGA and NSGA-II algorithms to solve the proposed bi-objective mix-integer non-linear model. At the end, we propose various test problems to show the performance of the proposed methodology. To show which meta-heuristic algorithm is better we used t-test and the simple additive weighting (SAW) method.
Keywords: Supplier selection-order allocation; location-allocation; capacity allocation; de novo programming; NSGA-II & NRGA; SAW
A STUDY ON THE EFFECTIVENESS OF INVENTORY MANAGEMENT AND CONTROL SYSTEM IN MILK PRODUCER ORGANIZATION
by Abhishek Rao, Naresh Nayak
Abstract: Inventory management is mainly concerned about identifying the amount and the position of the goods that a firm has in their inventory. Inventory management is imperative as it helps to defend the intended course of production against the chance of running out of important materials or goods. Inventory management also includes making essential connections between the replenishment lead time of goods,carrying costs of inventory, future inventory price, physical inventory, and available space for inventory. The major objective of the study is to examine to the techniques used by the company to control the inventory. It also includes studying the effectiveness of the technique adopted. In this report we can come to know the background information and the objective of the industry as a whole and also develop the project procedures and various method performed in order to get a detailed report on the industry.rnrnrn
Keywords: Key words: EOQ, ABC, Inventory, carrying costs, milk producer
An approach to improve Supply Chain Profit through Buy-back contract with reference to a Book Publishing Firm
by Debadyuti Das
Abstract: The purpose of this paper is to investigate the existing practices of buy-back contract adopted by a book publishing firm and the amount of profit gained by the publisher and a distributor as also the total supply chain profit generated under the current contract. The study was carried out in a leading book publishing firm based in India. It has considered the publisher and a distributor based in northern zone of India as two partners in the supply chain acting as a single supplier and a single customer respectively. The forecast demand of a book is estimated based on qualitative and quantitative factors and thereafter the print-run quantity and volume of returns are determined under both existing scenario and the proposed scenario based on estimated demand, variability of demand and the service level. Finally the optimum buy-back price is found out under the proposed scenario which maximizes the profit of both publisher and distributor and also the overall supply chain profit.
Keywords: Buy-back contract, publisher’s profit, distributor’s profit, Supply Chain profit, Book Publishing Organization
Effective Governance Defines Strategic Supply Chain Outsourcing Success in India
by Vijayakumar Sangam, Himanshu Shee
Abstract: This paper aims to study whether effective governance can have a positive influence on the success of supply chain outsourcing. While earlier studies mostly focused on key success factors of logistics outsourcing, the importance and effect of governance on logistics outsourcing success merits further investigation. Governance in joint participation, mutual conflict resolution and collaborative relationships are conceptualized as antecedents of outsourcing success. The results of SEM analysis of survey data from 297 professionals representing shipper organizations in India revealed a positive and significant relationship between dimensions of governance and outsourcing success. The findings draw shippers attention to collaborative relationship governance at early conceptual stage; joint work on risk and reward sharing at implementation stage; and mutual conflict resolution at post-implementation stage in order to achieving outsourcing success in India.
Keywords: 3PL project governance, logistics outsourcing success, SEM research, India
An inventory model for deteriorating item with frequency of advertisement and selling price dependent demand under mixed type trade credit policy
by Ali Akbar Shaikh
Abstract: In this paper, we have developed an inventory models for deteriorating items with selling price and frequency of advertisement dependent demand of an items under the mixed type financial trade credit policy. Shortages are allowed and partially backlogged with a variable rate dependent on the duration of waiting time up to the arrival of next lot. In this model, the deterioration rate follows three-parameter weibull distribution. Transportation cost is dependent on the lot-size as well as the distance from the source to the destination. The corresponding model have been formulated and solved by generalized reduced gradient based method. Numerical examples have been considered to discuss the results and the significant features of this model. Finally, based on these examples, the effects of different parameters have been studied by sensitivity analyses taking one parameter at a time keeping the other parameters as same.
Keywords: Inventory, deterioration, weibul distribution, Advertise and price dependent demand, partially backlogged shortage, mixed type credit policy
PLANNING THE BERTH ALLOCATION PROBLEM IN DEVELOPING COUNTRIES WITH MULTIPLE CARGOS AND CARGO PRIORITY BY A MATHEMATICAL MODEL AND A CLUSTERING SEARCH METAHEURISTIC
by Rodrigo Rosa, Glaydston Mattos, Geraldo Mauri, Winnie Fracaroli
Abstract: Some Brazilian ports operate several different cargos. These ports were privatized, and to avoid the private companies to restrict their operations to some few profitable cargos, the Brazilian government established rules, called cargo priorities, to ensure that all cargos are handled at the ports. These rules have a direct impact on port operations, especially when it comes to define the allocation of berth space for vessels. Thus, this paper presents a mathematical model and a Clustering Search (CS) metaheuristic for the berth allocation problem with multiple cargos and cargo priorities, considering time and space constraints. The paper is motivated by a port terminal located in Brazil, which handles containers, granites and cars. CS solved both instances based on real data and instances created to test large problems. An extensive analysis of all the results is also presented.
Keywords: Berth Allocation Problem; Cargo Priority; Clustering Search; Port Planning.
Vehicle Routing Problem and its solution methodologies: A survey
by Rajeev Goel, Raman Maini
Abstract: This paper presents a non-exhaustive survey of recently employed solution methodologies in the field of VRP. We also discuss briefly the VRP and its variants. Selected papers are thoroughly studied and critically analyzed chronologically. We conclude by presenting the future possibilities in modeling real life VRP and its solution techniques.
Keywords: Vehicle routing problem, Exact methods, Meta-heuristics
An evolutionary approach for supply chain management
by Xiaoming Li
Abstract: This paper aims to provide a simple pragmatic approach for supply chain management, departing from the current mainstream chase on supply chain integration. We first summarize two dominant but opposite approaches, the decentralized traditional approach and the centralized supply chain management approach, each of which has its distinct strengths and obvious weaknesses. To take advantage of their strengths and overcome their weaknesses, an evolutionary approach is laid out by applying key insights of the Theory of Evolution self-interest, adaptation, and natural cooperation, and of supply chain management demand and supply evolution. We propose an evolutionary approach that integrates four rudimentary advantages: the organization fulfills its own interest, the organization is better adapted to its local environment, natural cooperation is built on direct reciprocity, and demand and supply evolution provides a differential preservation of interrelations between suppliers and buyers. A two-stage newsvendor game illustrates its practical implication, which confirms the evolutionary approach is a legitimate alternative to the current systems integration approach for supply chain management.
Keywords: supply chain management; evolution; inventory management; newsvendor
Using VMI to Improve Supply Chain Performance of a Public Enterprise in Thailand
by Thananya Wasusri, Buntita Pongcheep
Abstract: Supply chain management is well recognized and implemented in private sectors, but the beneficial of supply chain management in public sector is limited shown in the literature. This paper presents a comprehensive supply chain simulation study for a real case of Thai public sector focusing on its material supply network. The supply network consists of four stages in inventory system: head office, regional warehouse, main warehouse and service warehouse. This study aims to propose three different strategies according to the combination of purchasing structure and Vendor Managed Inventory (VMI) with targeting to reduce lead time and cost. The Discrete event simulation (DES) is a powerful tool used to reveal the supply chain performances. The three strategies result in shorter lead time and cost reduction. The decentralized purchasing with VMI on each echelon to support continuous replenishment offers the best solution. The managerial implication is provided to enable the enterprise to improve the supply chain performance measures.
Keywords: Vendor Managed Inventory; Distribution; Purchasing; Public Procurement; Public sector; Supply Chain; Simulation
Assessing the logistics activities aspect of economic and social development
by Huseyin Avni ES, Coskun Hamzacebi, Seniye Umit Oktay Firat
Abstract: Logistics is concerned with the coordination and planning of products, services and information flow between the points of production and consumption. The logistics sector, contributes directly to production and consumption activities, has a critical importance for social and economic development. In this study, Turkey’s logistics map was created in order to distribute the logistics burden in the cities which have intensive logistics activities and improve logistics ability in the cities which have poor logistics activities. Firstly, social and economic variables that affect the logistics operations of cities of Turkey were investigated. The identified variables were reduced to a single factor which is called logistics via factor analysis and the clustering analysis was performed by using the logistics factor. In clustering analysis, k-means method was used and the cities of Turkey clustered from strong to weak according to logistics activities. The obtained results were analyzed and interpreted.
Keywords: logistics; clustering; factor analysis; Turkey.
PLANNING THE DISTRIBUTION OF GOODS IN THE CONTEXT OF CITY LOGISTICS CONSIDERING SPLIT DELIVERIES WITH ACCESS AND TIME RESTRICTIONS
by Rodrigo Rosa, Renata Arantes, Henrique Astoures, Dahlen Silva
Abstract: Cities are getting bigger with more homes and companies which demands more goods to supply them. Furthermore, more vehicles are traveling in the cities which leads to an increase of greenhouse gas emissions, traffic jam and many other problems that damage the citizens’ quality of life. To make it better, local governments are imposing restrictions on the type of vehicles and the time that they can deliver goods in the city. Thus, to plan the distribution of goods in this restricted context, this paper proposes a mathematical model that incorporates the characteristics of split deliveries, heterogeneous fleet, access restrictions and time windows for planning the distribution of goods. Based on real data from an agricultural supply company that delivers goods to supermarkets, seven instances were elaborated and the results showed that the model can bring cost savings for the company and environmental benefits for the citizens.
Keywords: Split Delivery Vehicle Routing Problem, City Logistics, Greenhouse gas emissions, Access and Time Restriction.
The Inventory Optimisation Taking Into Account Time Value of Money And Order Payment Deferrals
by Gennadiy Brodetskiy
Abstract: In this paper is developed and presented an approach to inventory management EOQ-model optimisation taking into account the time value of money and deferrals available for the order cost payments. The research is performed for models with cost-effective supply chains when due to the specified deferral an order payment, storage and other business costs can be paid from revenue. These requirements / limitations require to establish the necessary and sufficient condition for single product and multiproduct models, where the condition provides an opportunity to pay required costs from revenue of the previous reorder interval. The corresponding estimation of the profitability of working capital of such models is given in this article. It can be used when optimising supply chains with the deferred payment of the order, and taking into account the TVM. Presented EOQ-formula modification for determining optimal parameters of inventory management strategy taking into account the mentioned features. It is also shown that taking the TVM into account for such models refers to the phenomenon of reducing the profitability of working capital.
Keywords: Inventory management; time value of money; order payment deferrals; economic order quantity; EOQ-models; single product models; multiproduct models; supply chain management; total costs; order payments from revenue.
Special Issue on: ICIL 2014 Innovation and Industrial Logistics
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 nets; modelling; industrial production; stochastic modelling; integrated modelling; stepwise approach; dynamic design; simulation; resource planning; manufacturing industry; assembly line design; reliability; maintenance scheduling; process design; uncertainty; white goods; assembly lines; production scheduling.
Neurofuzzy technology to evaluate the environmental performance of the cargo transportation mode
by Maria Cristina Fogliatti de Sinay, Isolina Cruz, Suzana Kahn Ribeiro, 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: cargo transport; environmental performance; fuzzy logic; sustainable transport; transport modes; sustainability; sustainable development; neural networks; neuro-fuzzy systems.
Green supply chain management performance: a study of Brazilian oil and gas companies
by Iara Tammela, Alberto G. Canen, Felipe Costa Paganelli
Abstract: The oil and gas industry in Brazil has become a very important sector for the country's 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 minimise 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 industry's GSCM.
Keywords: green SCM; supply chain management; GSCM; oil and gas industry; performance evaluation; exploratory study; Brazil; environmental impact; logistics.
Influence of stock shortage in integrated logistic systems: an under-estimated importance
by Raymond A. Marie
Abstract: Performance evaluation of flow systems with such indicators as 'throughput' or 'response time' shows that random delays with high dispersions degrade significantly the performances. Here we focus on the case of stock shortages in integrated logistic systems. These stock shortages create random delays on the component delivery and are the sources of disorders in the behaviour of the systems. We study the squared coefficient of variation of the random variable, a pertinent metric for evaluating the risk on the performances of the involved flows. A way to exhibit the squared coefficient of variation of the duration of the stock shortages is presented. Then, we consider the random variable corresponding to the potential waiting times of all the orders. This latter variable admits a squared coefficient of variation much higher than the former one. Numerical examples raise the reader awareness of the risk of under-estimating the importance of the stock shortages.
Keywords: integrated logistics; stock shortages; backorders; performance evaluation; flow systems; shortage probability; squared coefficient of variation; service level agreements; SLA; penalties; random delays; component delivery.
Triple-objective models for portfolio optimisation with symmetric and percentile risk measures
by Bartosz Sawik
Abstract: The purpose of this paper is to compare three different triple-criteria portfolio optimisation models. The first 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 optimisation 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 chosen 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 optimisation 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: multicriteria decision making; MCDM; portfolio optimisation; percentile risk measures; symmetric risk measures; weighting approach; mathematical programming; value-at-risk; conditional VaR; CVaR; portfolio returns; stock market investments; uncertainty.
Performance of hospitals operating departments: the effect of logistic parameters
by Zilla Sinuany-Stern, Osnat Cohen, Nir Shahkoohi
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 five inputs and three 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 utilisation 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 measures; data envelopment analysis; DEA; performance evaluation; logistics; operating rooms; hospitals; hospital operating departments; Israel; healthcare services.
The strategic relevance of logistics: new perspectives
by Ingrid Göpfert, Michael Stephan, Wanja Wellbrock, Malte Ackermann
Abstract: We measure the strategic relevance of logistics in multinational corporations (MNCs) using two proxies: 1) the communication of logistics endeavours in annual reports; 2) the employment of logistics competencies on the top management level. We define logistics competencies as the employment of executive board members who are 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 in 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 competencies; top management; supply chain management; SCM; content analysis; corporate communication; executive board; annual reports; multinational corporations; MNCs; corporate disclosure policy; financial performance; firm performance.
Greening transport activities in the food retail supply chain
by Kristina Petljak, Sanda Renko, Sanda 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 has caused the highest costs and has 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 other logistical 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 retailing; food supply chains; supply chain management; SCM; Croatia; logistics; greening; sustainable transport; sustainability; sustainable development.