International Journal of Logistics Systems and Management (109 papers in press)
A proposed grey fuzzy multi-objective programming model in supplier selection: a case study in the automotive parts industry
by Saduollah Ebrahimnejad, Vahid Rahimi, Seyed Amirhossein Moosavi
Abstract: One of the research areas which has drawn authors attention is suppliers evaluation and quota allocation. In previous studies, suppliers have been assessed mostly by multi-objective decision making models when there are conflicting objectives. In this paper, the problem of supplier selection and quota allocation have been investigated based on conflicting criteria, where the accessible data are imprecise. One of the greatest achievements of the current study is selecting the superior suppliers from a large number in terms of conflicting objectives. Given that the data are defined as grey numbers, the grey multi-objective programming (MOP) model has been solved by goal programming (GP) method where aspiration levels are fuzzy. The proposed approach has been evaluated by studying a real case study in the automotive parts manufacturer. And finally, a sensitivity analysis has been carried out to figure out the effect of variation of criterias values on the supplier quotas.
Keywords: Supply Chain Management; Supplier Selection; Grey Fuzzy Goal Programming; Quota Allocation to Suppliers; Grey Programming; Automotive Part Industry.
Selecting and Scheduling Interrelated Projects: Application in Urban Road Network Investment
by Elham Shayanfar, Paul Schonfeld
Abstract: Decisions about the selection of projects, alternatives, investments, operating policies and their implementation schedules are major subjects in various fields including operations research, financial analysis, business management, engineering economy and transportation planning. In these various disciplines sufficiently good methods have been developed for planning and prioritizing projects when interrelations among those projects are negligible. However, methods for analyzing interrelated alternatives are still inadequate. We propose a combinatorial method for evaluating and scheduling interrelated road network projects. In particular, this paper demonstrates how a traffic assignment model can be combined effectively with a Genetic Algorithm (GA) in a multi-period analysis to select and schedule road network projects while capturing interactions among those projects. The goal is to determine which projects should be selected and when they should be funded in order to minimize the present value of total system cost over a planning horizon, subject to budget flow constraints.
Keywords: Project selection and scheduling; Genetic Algorithm; GA; Project interrelations; User equilibrium; Project evaluation; System optimization; Planning and prioritizing projects; Minimizing system cost algorithm testing; enumeration; interdependent benefits and costs.
-GRASP with bi-directional path relinking for the bi-objective orienteering problem
by Brahmin Aghezzaf, Hasnaa Rezki
Abstract: This paper presents a new approach to solve the bi-objective orienteering problem (BOOP). The BOOP is a multi-objective combinatorial optimization problem, considered as the bi-objective extension of the well-known orienteering problem (OP). The motivation of the multi-objective orienteering problem in general, stems from the problem of planning personalized tourist routes in a city, in which each point of interest provides different profits associated with different categories. The aim of this problem is to find routes, limited by a given travel cost restriction, that visit some points of interest and maximize the total collected of different profits. In order to generate a good approximation of the Pareto-optimal solutions, we develop a new metaheuristic method based on hybridization of λ-GRASP and a new variant of Path Relinking procedure that we have called bi-directional Path Relinking (BDPR).rnThe proposed approach is tested on benchmark instances and compared with some algorithms in the literature. Computational results show that the proposed method is well effective to provide a good approximation of the Pareto front for the bi-objective orienteering problem. rn
Keywords: Bi-objective orienteering problem; GRASP; Bi-directional Path Relinking; Hybridization; Pareto-optimal solutions.
Optimizing Replenishment Policy in an Integrated Supply Chain with Controllable Lead Time and Backorders-Lost Sales Mixture
by Marcello Braglia, Davide Castellano, Dongping Song
Abstract: This paper aims to optimize the inventory replenishment policy in an integrated supply chain consisting of a single supplier and a single buyer. The system under consideration has the features such as backorders-lost sales mixture, controllable lead time, stochastic demand, and stockout costs. The underlying problem has not been studied in the literature. We present a novel approach to formulate the optimization problem, which is able to satisfy the constraint on the number of admissible stockouts per time unit. To solve the optimization problem, we propose two algorithms: an exact algorithm and a heuristic algorithm. These two algorithms are developed based on some analytical properties that we established by analysing the cost function in relation to the decision variables. The heuristic algorithm employs an approximation technique based on an ad-hoc Taylor series expansion. Extensive numerical experiments are provided to demonstrate the effectiveness of the proposed algorithms.
Keywords: Integrated supply chain; replenishment policy; stochastic demand; controllable lead time; backorders; lost sales; joint economic lot size.
Green supply chain management in Indian automotive sector
by Balakrishnan AS, Jayshree Suresh
Abstract: The burden on automotive companies to embrace green processes has increased significantly in the recent years. A review of the existing literature has highlighted a need to understand how green supply chain management (GSCM) practices can contribute to improving company performance from environmental, economic and operational. This research aims to test the relationship between GSCM practices and performance for those companies adopted or planning to adopt GSCM in an emerging economy such as India. Outcome of the testing shows GSCM practices varies against companies performance. It implies that companies appear to have unsuccessful to understand the link between GSCM practices and performance.
Keywords: Green supply chain management (GSCM); Environment; Automotive; Practices; Performance; India.
Inventory and Production Planning for Component Remanufacturing in an Original Equipment Manufacturer-Closed Loop Supply Chain
by Sundararaman Malolan, Mathirajan M
Abstract: Original Equipment Manufacturers (OEMs) are moving to closed loop supply chain from the traditional supply chain by incorporating returns. In this study one such OEM who manufactures a single final product by assembling multiple-components is considered. The components required to assemble the final product are obtained either by manufacturing from raw materials and or remanufacturing from returns and or procured from external suppliers. The returns are the final products that are returned after use by the customer. The returns are obtained after paying a return acquisition price. This return acquisition price is a fixed price paid based on the utilization time and the condition of the return. The returns are dismantled into (a) components which can be remanufactured, and (b) components which cannot be remanufactured (meant for disposal). The manufacturing, remanufacturing and assembly operations are integrated as a closed loop supply chain system and can be performed by any OEM. It appears from the literature review that the OEM-Closed Loop Supply Chain (OEM-CLSC) system, where components are remanufactured by OEM themselves, has not been considered in any of the previous research literature. This study addresses this research gap by considering a single-product multi-component remanufacturing of an OEM-CLSC problem. For addressing the research problem considered, a mathematical model is proposed to identify the optimal inventories (raw materials, components, products and returns) and the production plan (products and components). Finally, an empirical analysis is carried out to determine the breakeven capacity for remanufacturing operation by suitably introducing a breakeven analysis model.
Keywords: Closed loop supply chain; Remanufacturing; Return acquisition price; Production planning and Inventory management; Breakeven analysis.
Re-Examining Supply Chain Integration: A Resource Dependency Theory Perspective
by Abirami Radhakrishnan, Dessa David, Sri Sridharan, John Stephen Davis
Abstract: Many researchers and practitioners recognize Supply Chain Integration as a critical success factor in supply chain management. This study develops an improved measurement model for this factor grounded in resource dependency theory and employing principles from multiple fields such as supply chain management, information systems management, and inter-organizational relationship management. This re-conceptualized model is validated by a large scale empirical study involving 154 business units. Confirmatory Factor Analysis helps assess the construct validity of the new measurement model.
Keywords: Supply Chain Integration; Supply Chain Management; Logistics Management; Confirmatory Factor Analysis; Empirical Research; Construct Validity.
Postponement: bibliometric analysis and systematic review of the literature
by Karine Araujo Ferreira, Larissa Almeida Flavio, Lasara Fabrícia Rodrigues
Abstract: Postponement, which refers to the delay of the final configuration and/or forward movement of goods until the consumer requests are received, is an important strategy to increase agility and flexibility of production and logistics systems. This study aims to carry out a bibliometric analysis and a systematic review of relevant literature on postponement strategy. Bibliometrics was applied as a quantitative technique using the Web of Science database and the CiteSpace software. As for the qualitative analysis, a systematic review of selected publications was carried out. In the first search in the Web of Science, 1670 publications were identified, and after successive refinements, a dataset of 53 articles was selected. The bibliometric analysis allowed the selection of journals, authors, and prominent publications in the area, which enabled the construction of citation and co-citation maps. The systematic review allowed the identification of topics, main contributions, and methods used in the selected articles.
Keywords: postponement; mass customization; supply chain management; bibliometric analysis; systematic review.
Role of Third-Party Companies in a Sustainable Supply Chain Design
by Mohammad Najjartabar Bisheh, Mojgan Delavari, Behnam Malmir
Abstract: Uncertainties and constraints, such as capacity, add to complexity of supply chain network design, while the role of third-party companies in global supply chain networks is increasing. The present work considered the role of third-party companies in supply chain design in order to increase understanding of the uncertainty of demand, capacity constraints, and backorder shortages. A nonlinear mixed-integer model was introduced to optimize a closed-loop supply chain in an international network. Although exact methods are useful for small size instances, the mixed-integer model was solved by two meta-heuristic algorithms in real-size problems. The ANOVA test was applied for small-sized and large-sized problems in order to check the efficiency of meta-heuristics. Results showed that the Imperialist Competitive Algorithm and Particle Swarm Optimization gained reliable and efficient solutions. A sensitivity analysis of important inventory parameters such as holding cost and demand was also conducted.
Keywords: Third-Party Companies; closed-Loop Supply Chain; Metaheuristic; ANOVA.
ARTIFICIAL IMMUNE SYSTEM AND PARTICLE SWARM OPTIMIZATION ALGORITHMS FOR AN INTEGRATED PRODUCTION AND DISTRIBUTION SCHEDULING PROBLEM
by S. Porselvi, A.N. Balaji, N. Jawahar
Abstract: This paper investigates an integrated production and distribution scheduling problem in a make to order supply chain. In the production part, manufacturing lots of different kinds of same product are produced on machines in a flow shop environment. All the products have a deterministic processing time and a sequence dependent set up time on each machine. In the distribution part, delivering of manufacturing lots to different customers are made by distribution centers having several modes of shipping. A mathematical model is developed and two algorithms i.e. Artificial Immune System AIS and Particle Swarm Optimization PSO are proposed and illustrated. The proposed methodologies are evaluated for its solution quality by comparing with solutions obtained by CPLEX and CP solver. The comparison reveals that AIS algorithm generates better solution than PSO algorithm and CP and is capable of providing solution either equal or closer to Lower bound value provided by CPLEX.
Keywords: Integrated production and distribution scheduling; Supply Chain; Artificial Immune System Algorithm; Particle Swarm Optimization Algorithm; CPLEX; CP.
Buyer-Supplier Relationship and Trust theory in Innovative Green Procurement Practices
by Surajit Bag
Abstract: In the eighties buyers used to maintain an arms-length relationship with suppliers. However, in the early nineties a dramatic change has occurred and buyers started treating close suppliers as business partners. There are various published articles covering important dimensions of buyer-supplier relationships. However, the current paper uncovers a new procurement method that leads to sustainability and add value to the internal and external customers. Thus, this paper aims to examine how buyer-supplier relationship management can contribute to innovative green procurement performance through the improvement of trust in the South African context.
The hypotheses of this study were tested with the data from 50 South African manufacturing companies. Data collection involved convenience sampling and survey methodology in a research setting using procurement managers as subjects. The construct measures were based on existing measures and previous research studies. The reliability and validity of items were tested using exploratory factor analysis and an overall measurement model was assessed with mediating regression analysis using SPSS 22.0 version.
The paper finds that trust plays a critical and mediating role in the relationship between buyer-supplier relationship and innovative green procurement performance.
The present study is unique in terms of scope and its contribution to both buyer-supplier relationship theory and practice.
Keywords: Buyer-supplier relationship; Trust; Innovation; Green Procurement performance.
Types of Logistics Outsourcing and Related Impact on the 3PL Buying Process: Empirical Evidence
by Gino Marchet, Marco Melacini, Sara Perotti, Chiara Sassi
Abstract: Although logistics outsourcing is recognised as a competitive parameter, so far there has been no adequate research on the types of logistics outsourcing and their implications in terms of the Third Party Logistics (3PL) buying process. This paper fills the gap by focussing on two key issues, i.e. required competitive advantages and 3PL selection criteria. The aim is to provide a comprehensive investigation of such factors and study if and how they vary depending on the outsourcing type. After a literature review and a focus group, a survey of 482 logistics managers was conducted, and a statistical analysis of results was performed. The findings are of interest to both shippers and 3PL providers because they help the former understand which outsourcing type is the most suitable to achieve the desired competitive advantages, and the latter to evaluate the key factors to focus on depending on the required type of outsourcing.
Keywords: Logistics Outsourcing; Third-Party Logistics (3PL) Providers; 3PL Buying Process; Competitive Advantages; 3PL Selection Criteria.
Quantitative Assessment of Mutual Relationship of Issues Experienced in Greening Supply Chain using ISM-Fuzzy MICMAC Approach
by Deepak Kumar, Siddharth Jain, Mohit Tyagi, Pradeep Kumar
Abstract: The concept of green supply chain management (GSCM) has emerged as one of the interesting topics among the researchers and practitioners as the issues of environmental degradation due to the negligence of the manufacturing firms are increasing in news and media. This not only affects the reputation of the firm but also makes the affected area unfit for livelihood. Thus the task of integrating green practices has emerged to be the biggest challenge for managers of these organizations in recent years. The present research work deals with the identification of the issues, which act as major barriers in greening supply chain. On the basis of literature review and discussion with the field experts, the eleven green supply chain issues were identified and analyzed by using interpretive structural modeling (ISM). To visualize the driving and dependency nature of the identified issues, ISM model has been developed. The developed ISM model would help to understand the direct relationship among the considered issues. Further, to establish the direct and indirect relationship of one issue with respect to each other issue, fuzzy MICMAC has been used. The outcomes of this analysis may help the managers to build a path in order to improve the GSCM system of an organization in respect of maximum economic output with minimum environmental impact.
Keywords: Green supply chain management (GSCM); Interpretive Structural Modeling (ISM); Structural self-interaction matrix (SSIM); Fuzzy MICMAC; Green Issues.
Solving inventory lot-sizing with supplier selection under alternative quantity discounts and vehicle capacity
by Thanakorn Naenna, Chirawat Woarawichai
Abstract: In this paper, we presents a multi-product and multi-period inventory lot-sizing problem with supplier selection under alternative quantity discounts and vehicle capacity. Each supplier offers quantity discounts (all-units and incremental discounts) to motivate the buyer for purchasing large quantity. In addition, we consider that the capacity each vehicle of the supplier transport the products to the decision maker (buyer). The objectives are to minimize total costs, where the costs include purchase cost of the products, ordering cost for the suppliers, transportation cost for the suppliers and holding cost of the remaining inventory in each period. The problem is formulated as a mixed integer linear programming (MILP) model. Finally, a numerical example is provided to illustrate the solution procedure. The MILP model can provide a satisfactory solution with a very short elapsed runtime. The results, the buyer needs to determine what products to order in what quantities with which suppliers in which periods, in order to satisfy overall demand.
Keywords: inventory lot-sizing; supplier selection; quantity discounts; vehicle capacity; multi-product.
Improving Supply Chain Risk Management Can additional data help?
by Luca Urciuoli, Juha Hintsa
Abstract: The recent large number of catastrophic events, such as terrorist attacks, natural disasters and pandemics, has drawn attention to the vulnerability of supply chains and the capability of IT system to monitor, predict and counteract adverse events. Experts agree that visibility and information sharing are fundamental tools to enhance the management of supply chain risks. Hence, by means of field studies conducted with seven companies, this study aims to shed more light upon how information sharing can improve supply chain risk management. As a result, the analysed companies showed great differences in their wishes for how to develop information sharing in the supply chain. Some respondents had clear visions for sophisticated, automated systems, whereas others expressed no wishes at all.
Keywords: Supply chain risk management; Information systems; information and communication technology; information exchange.
An Integrated Production-Distribution Planning of Dairy Industry- A Case Study
by Dibyajyoti Ghosh, Sandeep Mondal
Abstract: In dairy, where the product shelf life is too short, integrated production and distribution (P-D) planning is one of the important decision making area. This paper basically discusses one such P-D planning of an Indian milk industry. A three-echelon supply chain model is developed including suppliers, plant and retailers. Fluid milk products and milk made products are the two product families that are produced by the plant, where several important issues are considered with P-D planning like, deterioration rate of raw milk and final products, cost related issues of raw milk, transportation, collection, production, inventory, set up, and time related issues in late or early delivery of the final products to retailers. This model, in fact includes both production scheduling and distribution scheduling. A Mixed Integer Linear Programming (MILP) model is used to formulate the above situation to maximize the overall profit contribution of the business. The MILP is solved by using OPL language in Cplex, and a comparison is made with the current business situation and the improved condition through sensitivity analysis of the collection; production and distribution parameters.
Keywords: production-distribution planning; dairy industry; mixed integer linear programming; scheduling.
AN INTEGRATED MODEL OF PRODUCTION AND INVENTORY CYCLES OF NEW AND REUSABLE BOTTLING PACKAGES IN A CLOSED SUPPLY CHAIN
by Jonrinaldi Jonrinaldi, Taufiq Rahman, David Z. Zhang
Abstract: This paper proposes a model and solution for integrated production and inventory of new and reusable bottling packages. The inventory which didnt match the production needs is caused by the difference of production policy and the reverse logistics policy from distribution center. In addition, this problem is also influenced by cleanliness level of the bottles and the reject bottles during transportation. The solution procedures of this model use algorithm method and simultaneous approach (using software LINGO 14.0). From the calculation, this model obtains a valid result. The company can reduce the inventory cost about 8.88% using enumeration approach and 8.84% using simultaneous approach. Also, this model isnt sensitive in terms of changes of parameter to optimum solution.
Keywords: reverse logistics; integrated inventory model; bottling packages; inventory cost; closed supply chain.
Modelling for performance measurement of Bus Rapid Transit systems in Brazil
by Alvaro Neuenfeldt Junior, Julio Cezar Siluk, Marlon Soliman, Sabine De Paris
Abstract: Urban transit has a significant role in the recent social, economic and cultural society evolution, and it is one of the activities of greatest importance and concern in relation to urban administration and planning, since the issue involves more than half the worlds population. Considering the troubling situation of urban transportation, various activities have been planned to improve the conditions of urban mobility for Bus Rapid Transit (BRT) systems. The responsible for these systems need tools capable of proactively indicate the operational conditions. The aim of this study is to propose a model for measuring the performance of BRT transportation in Brazil that assists administrators in the efficient management of the system, by using concepts that can indicate the competitiveness level in the sector. The instrument was applied to analyse the situation of twelve Brazilian cities with more than one million inhabitants that have BRT systems. It was found that the city of Curitiba has the system with the best installed conditions in the country, and whose evaluation was considered Satisfactory, followed by Rio de Janeiro, Recife and S
Keywords: Logistics; Bus Rapid Transit (BRT); Performance measurement; Analytic Hierarchy Process (AHP).
Assessment of Criteria for the Selection of Third Party Logistics Provider: A Case from India
by Kaliyan Mathiyazhagan, Abhishek Bhalotia
Abstract: In todays business world, it is very difficult for an industry any to be competitive without working in close collaboration with external partners. Third party logistics provider (TLP) is an important partner to provide the proper logistic service. Selection of proper logistics suppliers endeavours and enhances the intensity of the hiring organisation. To select the appropriate TLP is a tough task for manager based on the criteria. Evaluating the criteria for the selection of TLP is an essential task for industries. This paper sensibly assesses the selection criteria and determines the weight of each indicator using Analytic Hierarchy Process (AHP). This study was focused on 43 different industries across India as the survey object, and every endeavour was given two questionnaires. A variable cost criterion is acting as an important criterion for the selection of TLP.
Keywords: Analytic hierarchy process; third-party logistics providers (TLP); evaluation criteria for 3PL; sustainable criteria in selection for TLP.
Buyback contract in a risk-averse supply chain with a return policy and price dependent demand
by Truong Ton Hien Duc, Nguyen Thang Loi, Jirachai Buddhakulsomsiri
Abstract: This paper examines a 2-stage supply chain where a retailer offers a return policy with partial refund to end customers, and a manufacturer offers a buyback contract for all unsold and returned items to the retailer to share the risk. Customer demand is stochastic and price dependent. Key performance measure is the utility of profit, a function of the mean and variance of profit. Supply chain members are risk averse. Optimal buyback price, wholesale price, and retailers order quantity are determined for the supply chain under coordination. A computational study is conducted to investigate the impacts of the members risk attitudes, refund amount, and retail price on the optimal decisions. Further analysis shows break-even points among utility values at different retail prices as the risk attitude parameters and refund amount change. These break-even points provide a guideline for the retailers to adjust the price to maximize the utility of profit.
Keywords: Customer returns; Supply chain coordination; Buyback contract; Price dependent demand; Risk-averse; Utility function.
A systematic literature review on barriers in green supply chain management
by Anjali Awasthi
Abstract: Green supply chain management has emerged as a trending topic of discussion for organizations thriving for enhanced competitive advantages, increased customer satisfaction, improved brand image, and of course minimum adverse impacts on the environment. The primary objective of this research is to perform a systematic literature review on the green supply chain barriers. Six different categories of classification are proposed to analyze the barriers namely Multiple Ms (8 Ms), Supply Chain Processes (Design, Purchasing, Production, Testing & Inspection, Packaging, Transportation, Warehousing, After Sales Service, and Recycling), Stakeholders (Employees, Customers, Suppliers, Government/Regulatory, and Non-Government Organizations), Sustainability Areas (Societal, Economic, Environmental, Technical), Organizational Hierarchy (Top Management/Executive Level, Middle Management/Departmental Level, Worker/Supervisory Level) and Others (Psychological, Technological, Knowledge, and Strategical). Classification of barriers using the proposed categories will assist decision makers in prioritizing actions and channeling resources in the right direction for achieving sustainability objectives for green supply chain management.
Keywords: Green supply chain management; Barriers; Classification framework; Systematic Literature review.
Palpable Linkage of Supply Chain Performance to Hard and Soft Infrastructure Marriage: The Case of SADC Road Entry Point Management Systems
by Felistas Zimano, Fayth Ruffin
Abstract: The supply of goods follows a chain with constituent parts, and the systems performance hinges on each constituent parts performance. In international supply chain and trade facilitation, one critical component is shipping of goods across borders. Border delays are inimical to supply chain efficiency. Modernising information communication technology is a widely hailed solution to easing this problem. In this paper, the importance of marrying hard and soft infrastructure for optimum efficiency is buttressed. This is based on empirical evidence from surveys involving 345 participants on four road entry points to Zimbabwes territorial borders. Participants are truck drivers and small and medium entrepreneurs. Findings trace the perpetuation of delays to failure to tie together hard and soft infrastructure components of entry point management systems. This consequently disturbs the supply chain of goods in the Southern African Development Community. Recommendations are made on how road entry point management systems can be improved, in order to enhance regional integration.
Keywords: Regional Integration; International Trade; Supply Chain; Transactional Costs; Trade Facilitation; SMEs.
A bi-objective green location-routing model and solving problem using a hybrid metaheuristic algorithm
by Fatemeh Faraji, Behrouz Afshar-Nadjafi
Abstract: In the field of operations research, Vehicle Routing Problems (VRP) has a great deal of importance because of its applications in transportation of goods and services. Until now many studies have been done about VRP, but there are few studies which have considered environmental perspective towards the problem. Besides, most of the bygone studies usually have considered only one objective which is minimization of total travelling cost. In this paper, we try to tackle some flaws of the previous works in the proposed models for green routing problems by considering multiple depots, constraints of hard and soft time windows, heterogeneous vehicles, multiple periods and products. Since the aforementioned problem is considered to be NP-hard, metaheuristic algorithms are needed for solving it. Therefore, to tackle NP-hardness of the proposed model a combined algorithm of Genetics algorithms (GA) and Simulated Annealing (SA) algorithms is proposed. Finally, for demonstrating the efficiency of the proposed algorithm, the solutions provided by the algorithm is compared to the solutions obtained from exact solving method in Gams Software. The results demonstrate the efficiency of the proposed method.
Keywords: Green vehicle routing problem; time windows; heterogeneous fleet; metaheuristic algorithms.
A Rich Heterogeneous Fleet Vehicle Routing Problem with Flexible Time Windows: A Case Study of Dairy Supply Chain
by Mehdi Firouzi, Javid Jouzdani, Hadi Shirouyehzad, Mohammad Mahdi Paydar
Abstract: Routing is a particularly important concept of cargo transport and has always enticed the interest of researchers and decision makers from different industries. The rich vehicle routing problem considers more realistic features of the real-world problems than the conventional problem. This article aims at solving a vehicle routing problem with heterogeneous fleet and flexible hard and soft time windows where flexible time windows allow for early and tardy deliveries in a given tolerance interval considering earliness and tardiness penalties through defining the earliness and tardiness as decision variables. In this paper, the proposed mathematical programming model is verified through several numerical examples using GAMS software. In order to demonstrate the applicability of the model, a real-world case study is provided. The results show the high potential of the proposed model for real-life application. Specifically, by applying the results of the case study, it is a possible to obtain a 156,000 USD annual cost reduction which is a significant save of resources.
Keywords: Heterogeneous Fleet; Flexible Time Window; Mathematical Programming; Rich Vehicle Routing.
Automated Transportation Systems subject to Interruptions in Production and Intralogistics A Survey and Evaluation
by Ireneus Wior, Stefan Jerenz, Alexander Fay
Abstract: To increase efficiency and productivity of production and intralogistic facilities, automated transportation systems are widely used nowadays. This paper examines effects of interruptions in different transportation systems on the performance of production and intralogistic facilities by evaluating current literature with a focus on simulation-based studies. Our first contribution is a new categorization of conveyor-based and vehicle-based transportation systems. This categorization does not follow a technological differentiation but focuses on the abilities of the transportation system categories to deal with transportation system interruptions. Thereafter, current literature in the domains of Manufacturing Systems, Semiconductor Facilities, General Intralogistics (e.g. warehouses), and Container Terminals is surveyed with respect to this categorization. This survey is our second contribution. Finally, having surveyed different domains, the strengths and weaknesses of different transportation system categories are extracted from the literature and summarized. That summary is our final contribution and intended as guideline and support for engineers planning transportation systems and as a contribution to the research community which aims at making transportation systems more robust to disturbances.
Keywords: automated transportation systems; automated guided vehicle; performance analysis; warehousing systems; container terminals; manufacturing systems; semiconductor manufacture.
Impact of Trade Credit on Inventory models for Weibull distribution Deteriorating Items with Partial Backlogging in Two Warehouse Environment
by Chandra K. Jaggi, Sunil Tiwari, Mamta Gupta
Abstract: In today's business environment, items exhibit different decay patterns in terms of deterioration rate depending upon their type and the storage space. Weibull distribution is a versatile distribution which can be used to model all three stages of the bathtub curve. It can take characteristics of other type of distribution and can be modeled for either increasing or decreasing rate of deterioration, according to the choice of the parameters. In developing countries, both the supplier and the retailer are benefitting from the trade credit policies. For supplier it attracts new buyers as the delay period is taken as price reduction by the retailers. Whereas retailers earn interest on the accumulated revenues as the retailer can delay the payment until the end of the credit period. In addition, to survive in today's volatile market retailer is bound to order large quantity and therefore needs an additional warehouse to store the items. Partial backlogging is another more realistic approach in a fair competitive market since customers experiencing shortages respond variably depending upon market environment. This study incorporates the above mentioned concepts to study the influence of trade credit on two warehouse inventory model with Weibull distribution deteriorating items and partially backlogged shortages. Several numerical examples are provided to illustrate the behaviour of the model and highlight some managerial insights.
Keywords: Inventory; Weibull Distribution; Partial Backlogging; Trade Credit; Two-Warehouse.
Corporate Social Responsibility in Supply Chain Management a new model approach.
by Marek Michalski, Jose Luis Montes Botella, Adam Figiel
Abstract: Corporate Social Responsibility (CSR) remains a widely acknowledged business philosophy. However, there are situations when socially responsible activities are incorporated without due attention to their consequences on business operations. We suggest that it is very important to pursue other ways, such as how to manage the outsourcing in the process, and what really is the impact of CSR. According to this, a framework CSR in the supply chain must not be considered only as an expense on the strategic level; rather it should be integrated into the companys operations core business activities. On the one hand, participation of Non-Governmental Organizations (NGOs) in supply chains should be clearly posed as a dilemma. On the other hand, due to their experience and knowledge of market games, NGOs operating within supply chains could establish a new focus around how to use the opportunities a business develops in the wake of CSR demands. In particular, we suggest that there exists the need for encouraging the debate on the particular implications of CSR realized by NGOs in SCM process.
Keywords: SCM; CSR; NGO.
Analysis of Maiden Modal Shift in Coal Transportation Supply Chain using SAP-LAP Technique
by Pradeep Kumar, Abid Haleem, Furqan Kamar, Urfi Khan
Abstract: This paper presents a case study in a SAP-LAP format in respect of a maiden modal shift logistic project in India. The purpose of this paper is to show as to modal shift from railways to inland water transportation led to improvement in supply chain qualitatively and quantitatively (cost wise). SAP-LAP framework has been applied and major actors instrumental in the modal shift are briefly taken up. It is a real life project initiated and piloted by Government of India through Inland Waterways Authority of India (IWAI). This paper helps to understand the project for implementing IWT by modelling its enablers using Interpretive Structural modelling (ISM) technique and analysing various issues using SAP-LAP framework in order to improve the economics of supply chain. Structured modelling has helped understanding of the critical enablers. Based upon the inputs from experts, major actors suggested a different set of incentives. A concessional user charge for the use of fairway and cargo assurances as opposed to cash subsidy approach was the game changer. It provides a good model for the improvement of economics of supply chain.
Keywords: Case study; Inland Waterways Authority of India (IWAI); Inland Water Transport (IWT); SAP-LAP; Modal shift logistic project of India; Multimodal transport; Interpretive Structural Modelling.
Cost-Benefit Sharing in Healthcare Supply Chain Collaboration
by Jirawan Niemsakul, Sardar M. N. Islam, Duangpun Singkarin, Tuanjai Somboonwiwat
Abstract: This paper proposes a framework for cost-benefit sharing in healthcare supply chain collaborations. Collaboration in a supply chain can lead to cost reductions, risk management, and performance improvements. The keys to a successful collaboration are that the costs are taken from the entire system, and mutual benefits provided for all parties. The three following processes are investigated by our literature review and interviews with experts. Firstly, the cost and benefit parameters are defined as coordinate costs and benefits by a cost-benefit analysis. Secondly, the cost-benefit sharing characteristics are classified as two-echelon, three-echelon, and multi-echelon. Thirdly, the collaboration levels are categorized into four levels: Data sharing, information sharing, knowledge sharing, and cost-benefit sharing. Consequently, the cost-benefit sharing scenarios are presented.
Keywords: Cost-benefit sharing; healthcare supply chain; collaboration.
Optimal selection of modular products in reconfigurable manufacturing systems using Analytic Hierarchy Process
by Kamal Kumar Mittal, Pramod Jain, Dinesh Kumar
Abstract: Reconfigurable manufacturing systems (RMS) are considered as a major resource of providing variable production capacities and capabilities by different manufacturing companies. To fulfill the market requirement variety of a modular products, manufactured in a Reconfigurable Manufacturing System. A methodology for optimal selection of modular products in reconfigurable manufacturing systems using Analytic Hierarchy Process (AHP) is proposed. The Analytic Hierarchy Process is a theory of measurement through pair-wise comparisons and relies on the decisions of experts to obtain priority scales. The comparisons are made using a scale of absolute judgments that shows, how much more, one component better than another with respect to a given attribute. AHP is also helpful in taking decision when both qualitative and quantitative attributes are in a system. A case study is given to understand the applicability of the proposed methodology on a given system.
Keywords: Reconfigurable manufacturing system (RMS); Analytic Hierarchy Process (AHP); Reliability; modular products; modularity; reconfigurable machine tool (RMT).
A fuzzy Inventory model for deteriorating items with stock dependent demand rate
by Susanta Kumar Indrajitsingha, Padmanava Samanta, Umakanta Misra
Abstract: The present paper proposes a fuzzy EOQ model for deteriorating items with stock dependent demand rate. As the demand, holding cost, deterioration cost and deterioration rate are uncertain in nature, theses are carried by triangular fuzzy numbers. Graded Mean Representation, Signed Distance Method and Centroid Method are used to defuzzify the total cost function. The results obtained by these methods are compared with the help of a numerical example. Sensitivity analysis is also carried out to explore the effect of changes in the values of the system parameters.
Keywords: InventoryModel; Triangular Fuzzy Number; Graded Mean Representation Method; Signed Distance Method; Centroid Method; Defuzzification.
TURKEYS LOGISTICS IMPACT COMPARED TO THE NETHERLANDS, GERMANY AND BELGIUM
by Caglar Tabak, Kürşat Yildiz
Abstract: Developed countries around the world give great importance to the logistics sector. Most of the countries have completed the transformation from the transportation to the logistic sector. Therefore, in order to achieve an idea about countries' logistics infrastructures, the World Bank has started publishing the Logistics Performance Index every two years since 2007. The most current publication was distributed in 2016. In addition to providing information regarding the logistics sector of the countries, this index also provides investment information and opportunities of the countries. When determining the countrys ranking, the index considers six key criteria (customs, follow-up and monitoring, logistic competition, timing, infrastructure and logistic competition).
In the study, first of all, Spearman's Rank Correlation method was used to determine which of the six main criteria published by World Bank is the most influential. Later on in this paper, the ports considered as Turkey's logistics areas were compared to the logistics system of the Netherlands, Belgium, and Germany where they conducted on-site surveys. Countries selected for comparison have the best logistics areas in Europe and are among the first countries in the Logistics Performance Index published in 2014. The existing Turkish ports have been compared with these countries and efforts have been made to identify the gaps of Turkey in the logistics sector and suggestions and recommendations have been made.
Keywords: Logistics; Spearman Rank Correlation Test; Logistics Performance Index; Communication; Cost of Logistics; Combined Transport; Logistics Legislation.
IMPACT STUDY OF SUPPLY CHAIN PRACTICES ON ORGANIZATIONAL PERFORMANCE FOR INDIAN CHEMICAL INDUSTRIES
by Shrikant Gorane
Abstract: Supply Chain Practices (SCPs) are no longer merely an option but rather an essential requirement for almost every organization if they have to compete successfully. The research aims to gain an insight into the SCPs being practiced and to find the practices which are essential to withstand the pressure of the competitive environment for a Chemical Industry. This research focused on finding different SCPs being practiced in context to Indian Industries. The different SCPs are being found by the extensive literature review. The framework was developed and relationship amongst these SCPs and Organizational Performance measures, namely, Operational Performance, Customer Satisfaction and Financial Performance are established for the Indian Chemical Industries. The developed framework was then tested empirically using data collected from respondents to a survey questionnaire. Structural Equation Modelling (SEM) was used to test the hypothesized relationships. The finding suggests that a successful SCPs implementation not only improves the operational performance, but also enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction.
Keywords: Supply chain management (SCM); Supply Chain Practices; Framework; Structural Equation Modeling; India.
Third-Party logistics Continuous Improvement through Integrated Fleet Management: The Case of a Transport Company
by Andreia Rodrigues, Carina Pimentel, João Matias
Abstract: In the transport sector, there is a gap that arises in managing fleets with vehicles of different brands, making it ineffective to choose the use of telematics system that each brand offers. This article presents a solution based on a system that uses a single service aggregating all fleet vehicles, irrespective of brand, and allowing their control at any time. Thus, it results in improved efficiency on the routes based on greater consistency of data as similar driving data are obtained for all vehicles. This article uses a case study that shows it is possible to reduce travelling costs, allowing the generation of greater quality services and hence improving customer satisfaction.
Keywords: Fleet Management; Continuous Improvement; Telematics; Route Planning; Road Freight Transportation; Integrated Fleet Management System; Freight Intelligent Transportation Systems.
The impact of pricing, lead time and capacity policies in a two echelon supply chain
by Arash Apornak
Abstract: Lead-time, price and capacity are common strategies used in supply chains facing uncertain or variable demand. Each provides a mechanism to absorb the uncertainty. In some supply chains, products must be produced before demand is realized. This typically cause in situations where production takes a long time and the selling period is short, fashion goods for instance, In this paper we assume a two echelon supply chain consisting of a supplier and a retailer facing price and lead time sensitive demand. The decision process is modeled by Nash equilibrium and Stackelberg game, the equilibrium strategy of these two players is obtained by investigation the impact of variable decisions on the players profit then compare the performance of the corresponding chain and capacity decision according to historical data as a benchmark, the results illustrated that the profit of supplier and retailer is more in Nash equilibrium in compared with Stackelberg game.
Keywords: Pricing; Lead time; Capacity; Stackelberg game; Nash equilibrium; two echelon Supply chain.
A bibliometric analysis of scientific production in Lean Supply
by Kellen Dayelle Endler, Cassius Tadeu Scarpin, Maria Teresinha Arns Steiner
Abstract: A Lean Supply Chain arrangement should provide a flow of goods, services and technology from the supplier of raw materials to the customer without waste. Lean Supply is an increasingly visible area not only at the theoretical level, but also in terms of practical application in companies offering products or services. Thus, scientific progress in this field of study is fundamentally derived from the knowledge available about it, which is the result of investigations and interactions by researchers over time. The main objective of this study, therefore, is to conduct a quantitative analysis of scientific production on Lean Supply between 1992 and 2016. The work was carried out with a methodical review of the literature, relying on bibliometric techniques, by consulting the ISI Web bases of Knowledge and Scopus, and their treatment by Bibexcel and Pajek softwares. For the research, the term "Lean Supply" was used as a key expression, generating a sample of 211 published articles. Descriptive statistical results were presented, identifying the authors, articles and journals most frequently referenced by scholars worldwide. At the end of the study, recent papers of the sample were classified and analysed based on research methods and industry sectors.
Keywords: Lean Supply; Lean; Supply Chain Management; Bibliometric Analysis.
Supply chain performance measurement: a systematic literature review
by Mariana Guersola, Maria Teresinha Steiner, Edson Pinheiro
Abstract: Through a structured overview of the literature, this paper provides an update and maps the current state of research involving the supply chain performance measurement and management. The results can be used as guidance to future studies. The main research limitations are related to the selected scientific databases, document types and search terms, which can exclude papers that could be pertinent. The findings show that the field of research is still very immature. The reviewed publications are from journals from various areas and researchers from several countries, which shows the breadth of interest in the topic and its importance. Many papers conducted studies in order to identify the issues involved in supply chain performance measurement and management, and to propose frameworks to solve them, but few studies have been made about effective applications of these proposals. Content analysis covers the most addressed approaches used for the performance measurement and management.
Keywords: Performance measurement; Performance management; Supply chain; Supply chain management; Systematic literature review; Fuzzy Logic; Supply Chain Operations Reference (SCOR); Balanced Scorecard (BSC); Analytic Hierarchy Process (AHP); Data Envelopment Analysis (DEA).
Optimal Number of Suppliers to Mitigate Supply Disruption: A case of Indian Locomotive Manufacturer
by Rajnish Kumar, Sidhartha S. Padhi, Ashutosh Sarkar
Abstract: Dependencies over supplier for efficient functioning of firms are
evident in academic literature as well as in practice. However, disruption in
supplies can hinder the entire manufacturing process. This article applies a
mathematical model through modifying the work of Berger et al. (2004) to
determine the optimal number of suppliers required under supply disruptions
and also used quantity discounts offered by suppliers on volume purchases. The
model is demonstrated by means of an Indian locomotive manufacturer as a
case study. We consider supply disruptions due to the probability of occurrence
of super, semi-super, and unique events in the supply chain. Furthermore, the
analysis has been extended to study the semi-super events, in which only a
particular region of supplier is affected. Results have shown that the optimal
number of suppliers is three for low cost items and two for the costlier ones.
This article will be helpful for efficient managerial decision making for
materials management and purchasing practitioners, besides academicians for
better understanding of such concerns.
Keywords: original equipment manufacturer; OEM; mathematical modelling;
optimal number of suppliers; sensitivity analysis; Indian locomotive.
The Brazilian Recent Infrastructure Policies
by Renata V. Klafke, Claudia T. Picinin, Caroline Lievore, Luiz A. Pilatti
Abstract: This paper aims to briefly disclose some figures on recent logistics investments in Brazil for the main modes of transport. This work primarily consulted Brazilian federal agencies, as well as articles of logistics scholars found in the SCOPUS database, to provide context for broader understanding. It is able to notice through this text that, although the Brazilian transportation logistics are lacking, the positive participation of the National Development Bank (BNDES) in the construction of logistics infrastructure and investments of the Brazilian government through its programmes have contributed to the growth of the national transport logistics.
Keywords: Brazilian Logistic; Infrastructure; Investments.
Modelling and solving a novel Gardener problem under an emergency order and stochastic storage space
by Marzieh Karimi, Seyed Hamid Reza Pasandideh
Abstract: The objective of this research is to determine the optimum order quantity such that the expected total profit will be maximized while some constraints such as the service level and stochastic storage space will be satisfied in the Gardener Problem. The main contribution is to utilize the emergency order in case of shortage, in order to achieve more profits where the demand is more than the on hand inventory. In this case, the vendor should pay the cost of customer waiting time to receive the required products either purchasing the products or losing the sale condition. As the proposed problem is NP-hard, using meta-heuristic method is our methodology for solving. Two meta-heuristic algorithms namely differential evolution and invasive weed optimization are utilized to solve the problem in which their parameters are tuned. Finally, some numerical experiments and statistical comparisons are performed to evaluate the applicability of both proposed model and the algorithms. The computational results show that the proposed differential evolution has a desirable performance in favor of the expected total profits.
Keywords: Gardener Problem; Emergency order; Invasive weed optimization; Differential evolution.
Two ware-house inventory models of breakable items with stock dependent demand under trade credit policy with respect to both supplier and retailer
by Bijoy Krishna Debnath, Pinki Majumder, Uttam Kumar Bera
Abstract: For the first time, this study deals with an inventory control system with delay in payment for damageable/breakable items with stock dependent demand. Moreover, this paper relates to two warehouse inventory policy with continuous release pattern along with two-level of credit period with respect to both supplier and retailer. Since per unit selling price is greater than that of purchasing price, a new approach is introduced for payment to the wholesaler for the amount remained after the credit period. Here the retailer earns the required amount before the end of the business period and clears his due as soon as it is available. The sales and interest for the remaining period are deposited for maximizing profit and consequently minimizing the total inventory cost. The model has been developed as a cost minimization problem with respect to the retailer and wholesaler and optimized using the non-linear optimization technique Generalized Reduced Gradient method (LINGO). The optimal solution has been exemplified numerically and graphically in this study of approach.
Keywords: EPQ model; two-warehouse; trade credit; continuous release pattern; alternative approach of payment; non-linear breakability.
Designing a Green Supply Chain Network Using LCA method: A Robust Optimization approach
by Ali Mohtashami, Alireza Alinezhad
Abstract: In this paper designing of a supply chain regarding environmental consideration is addressed. For this purpose, a mixed integer linear programming model is proposed which integrates decisions about environmental investment and selection of active facilities in the network of the supply chain. In the proposed model, the emission of the environmental pollutants is considered through all stages of the supply chain for calculating the environmental effects of products according to the life cycle assessment (LCA) method. For each product some limitations are considered that affect supply chain decisions. Such limitations may be imposed by environmental protection agencies or regional scheme. Also, due to uncertainty in some parameters of the proposed model, a robust optimization approach is applied which makes the obtained solution robust and feasible with predetermined level of confidence against variability in uncertain parameters. The computational results illustrate the high performance of the proposed model.
Keywords: green supply chain; environmental investment; life cycle assessment; robust optimization.
Analysis of supply chain issues under sales promotional schemes using FAHP
by Sricharan Chirra, Dinesh Kumar
Abstract: Sales promotional schemes are a set of marketing activities that has an enormous impact on sales but exposes the supply chain to the risk of demand uncertainty. This work prioritises and develops a hierarchical model of important supply chain issues to enhance the companies competitive position under sales promotional schemes. Automobile industries being in an emerging competitive situation in India are chosen for this study. Using few statistical tools viz. CV-Index, Cronbachs alpha and Kappa statistics along with experts opinion, the key issues/factors has been identified and grouped into a structured model considering supply chain - collaboration, efficiency, flexibility, and promotion. Supply chain issues are prioritised using Fuzzy Analytical Hierarchy Process (FAHP) and the Liberatore score method is used for performance evaluation of considered company. From the analysis, it is observed that flexibility and 'collaboration' parameters are more prominent than others to deal with demand uncertainty.
Keywords: supply chain management; sales promotional schemes; performance analysis; analytical hierarchy process; fuzzy data analysis.
Design of Smart Logistics Transportation System using MapReduce Intelligent Water Drops Algorithm in Hadoop Environment
by Sathish Kumar, Rani Chellasamy, Ganesh Kumar
Abstract: Designing a smart system for delivering goods to various fair price shops effectively is one of the major goals in the mission of smart city development. In this paper, the smart city environment is treated as a distributed environment for carrying goods across different parts of the city. Hence the widely used intelligent water drops algorithm is implemented as MapReduce model using Hadoop environment to compute the shortest path for speedy delivery of goods. A front end is designed to carry out interstate and intrastate transportation of items. Distance matrix comprising of 50,100,150.500 cities is considered for the simulation. From the experiment, it is observed that the intelligent water drops algorithm implemented in map reduce model meets the objective of delivering materials to the right destination in minimum time. The performance of the proposed MapReduce intelligent water drops algorithm is compared with other popular algorithms like Bellman ford algorithm, Throup algorithm Gobow algorithm, and Dijkstras algorithm. It is observed that the proposed MapReduce intelligent water drops algorithm gives out a reliable shortest path between any source and destination city with less CPU time than the other algorithms.
Keywords: Smart City,Transportation System; Intelligent Water Drops algorithm; MapReduce; Hadoop Environment.
Environmental impacts of cold chain distribution operations: a novel portable refrigerated unit
by Ivan Ferretti, Laura Mazzoldi, Simone Zanoni
Abstract: This paper presents a model for the evaluation of the environmental impacts associated with the management of cold supply chain, considering transport and storage activities. A novel portable refrigerated unit for the management of goods along the cold chain is presented, and its performances, in terms of emissions at different distribution stages, are compared to those of traditional cold chain equipment. A mathematical model based on costs and environmental impacts has been developed. Moreover, a case study is presented so as to show the usefulness of the model proposed. Numerical analyses are provided in order to demonstrate the efficiency of the new equipment, compared to the traditional refrigeration technology involved in distribution chains. Environmental benefits and efficiency of the new equipment are considered, as well as energy consumption reduction. The proposed system may help companies to pursue more sustainable practices in their cold chain activities.
Keywords: Cold Chain; Refrigerated Equipment; Environmental Impact.
An Empirical Study on Effect of Information Sharing on Supply Chain Performance The Case of Indian Automotive Industry
by Sendhil Kumar Ramakrishanan, Pugazhendhi Singaram, Muralidharan Chandrasekaran, Murali Sivanesan
Abstract: Sharing information is regarded as one of the most effective ways of improving supply chain (SC) performance The present study aims to understand and determine factors related to information sharing that would be able to enhance the SC performance with specific focus on Indian automotive industries. Data collected from the middle, senior and top level management executives of automotive industries in India is used to test the relationships between the constructs in the model through the application of multiple regression analysis. The results supported the proposed multiple linear regression model development. The results of the analysis indicate that all the factors that are considered have a direct and significant influence on SC performance. The study is further extended to examine whether there is any significant difference, among the four levels of organizations such as OEM,TIER1,TIER2 and TIER3 with respect to the dimensions of information sharing that influences the performance of SC. The findings can help the firms to identify the areas that need attention to achieve better SC performance.
Keywords: Information sharing; supply chain performance; multiple regression.
A new model for multi-period bi-objective inventory routing problem with stochastic demand, inventory holding, shortage and customer satisfaction
by Pouya Ehsani Tabari, Babak Shirazi, Iraj Mahdavi
Abstract: This paper presents a new multi-period, bi-objective inventory routing problem model with stochastic demand in two echelon network supply chain including some suppliers with several vehicle to satisfied customers demands. Reducing the number of vehicles is also considered which each vehicle belongs to one routs. The difference between this paper and the others is that the shortages and inventory holdings are kept at the customers parts not in distribution centers. Customers review records costs, customers satisfaction and its relationship with shortage and inventory holding are objective function. The customers satisfaction increased by decreasing inventory holdings and shortage amount. The goal is to determine the delivery quantities to customers due to shortage and inventory holding amount per period. The objective of this paper is to minimize transportation routing costs, customers review records costs, inventory holding costs and shortage costs. And maximize customers satisfaction. The presented model analyzed by ε- Constraint method and run in GAMS software.
Keywords: Inventory routing; stochastic demand; customer satisfaction; customer review records costs.
Analysis and Prioritization of Eco Drivers in Supply Chain
by S. Amalaldhasan, Parthiban Palanisamy, R. Dhanalakshmi
Abstract: Green supply chain management (GSCM) is a powerful tool to differentiate one company from the others and it can greatly influence the success of any plant. This paper aims to identify the management, technological, organizational, external and Stakeholders cooperation. These factors influence the adoption of Eco-Design and integrate into the green supply chain management. The drivers and sub-factors are ranked using fuzzy quality function deployment (FQFD), rough quality function deployment (RQFD) and fuzzy technique for order of preference by similarity to ideal solution (Fuzzy TOPSIS). In the proposed model, fifteen fundamental requirements of the customers are identified and fifteen main factors of eco-design are derived to satisfy the overall requirements. Fuzzy TOPSIS selects the alternative that is closest to the positive ideal solution and farthest from negative ideal solution.
Keywords: Green Supply Chain Management (GSCM); Eco Design; Fuzzy QFD; Rough QFD; Fuzzy TOPSIS.
Green Logistics Decision Support System for Blood Distribution in Time Window
by Manoj Kumar, Dinesh Kumar
Abstract: The role of Green logistics in the distribution management has seen a tremendous increase due to increased focus on environmental protection, greater consumer environmental concern, green legislation, and sustainability. This has led to an increase in recycling, reuse and emission control to reduce economic and environmental costs. In this research, we propose a Genetic Algorithm based decision support system for route generation and comparison of the routes based on various economic and environmental cost factors. Four variants of vehicle routing problem for simultaneous delivery and pickup in hard and soft time windows (VRPSDPTW) with full and partial pick up strategies have been formulated and optimized using Genetic Algorithm. The real-life data of blood distribution is used for comparing VRPSDPTW models on the basis of their economic and environmental value. The results of this research indicate that total cost is lower in the case of full pickup with soft time windows. The proposed system can be used for decision making by logistics organisations to select an appropriate transportation scheme with lower economic and environmental costs.
Keywords: Green Logistics; Blood supply chain; Genetic Algorithm; Vehicle routing; Environmental cost.
Analysis of vaccine supply chain issues using ISM approach
by Dheeraj Chandra, Dinesh Kumar
Abstract: Immunisation is one of the most cost-effective & protective methods of controlling infectious diseases among children. However, due to the high population density, and varied demographic patterns, millions of children remains unimmunized each year in India. In the present study, an effort has been made to identify issues in the supply of basic vaccines required to immunise each child based upon the field survey of Uttarakhand state, India. The Delphi method that uses experts opinion in decision-making has been employed for selection of twenty-five key issues as factors of vaccine supply chain. Using interpretive structural modelling (ISM) approach a hierarchical structure has been developed to show interrelationships among various factors. Then, MICMAC analysis has been performed to classify the factors based on their driving and dependence power. From the ISM model and the MICMAC analysis, and from further discussions with the experts, it has been found that the factors demand forecast, communication between the supply chain members, and proper planning and scheduling are three most critical factors of vaccine supply chain. The study will provide a direction to the policymakers for implementing the state immunisation plan for the coverage of the larger areas and reduction in child deaths due to low immunisation.
Keywords: vaccine supply chain; issues; factors; immunisation; Delphi; ISM; MICMAC.
Container Inventory Management: introducing the 3 F model
by Lalith Edirisinghe
Abstract: Container inventory imbalances (CII) can primarily be attributed to global trade imbalances that cause a substantial indirect cost in shipping. Therefore, it is imperative that carriers adopt highly efficient and effective container inventory management (CIM)systems to overcome the CII issues. This research intends to develop realistic guidelines for CIM that minimize CII costs. The components of the 3 F model are chosen based on the rating scores given by the experts for 22 common CIM strategies followed by a standard filtration process. It ultimately comprises six strategies, namely, Reduce import freight; Reduce export freight; Service agreements; Synchronized budget; Agile inventory; and Export priority. These variables are rooted in three dimensions namely, Freight; Forecasting; and Flexibility. To identify the relative contribution by each component, it proposes a double weight allocation procedure for each strategy. The 3 F model helps managers think beyond traditional container re position and increased profits.
Keywords: Container inventory management (CIM); Imbalance; Freight; Forecasting; Flexibility; Strategy; CIM mix.
Supply chain sustainability strategy selection using integrated multi-criteria decision-making method
by V. Sreekumar, M. Rajmohan
Abstract: In recent years, industries have begun taking up proactive leadership and working together with their supply chain partners to implement initiatives for improving the sustainability of the supply chain. Sustainability performance improvements in industries are essential for survival rather than meeting the regulatory and reporting requirements. This paper aims at determining the major sustainability criteria and prioritising the given sustainability strategy sets to achieve the highest sustainability performance. This Multi-Criteria Decision-Making (MCDM) problem is solved by the application of the Analytic Hierarchy Process (AHP) and Preference Ranking Organisation METHod for the Enrichment of Evaluations (PROMETHEE) techniques in an integrated way. In this study, criteria for comparing the alternatives are identified from literature. The criteria weights are obtained using AHP methodology and are used in the PROMETHEE (I and II) for ranking the strategy sets. The proposed methodology is applied to solve a real-time supply chain decision-making issue of an Indian manufacturing industry. The most sustainable strategy proposal is identified. Sensitivity analysis is carried out on the variations in ranks with respect to the deviation in criteria weights. The minimum deviations in criteria weights that cause rank reversal are also identified from this. It facilitates getting insights into the stability of the ranks to the decision-maker.
Keywords: supply chain; sustainability; strategies; ranking; multi-criteria decision-making; AHP; PROMETHEE; integrated approach; sensitivity analysis.
COMPETENCIES OF HIGH-PERFORMANCE LOGISTICS PROFESSIONALS IN EMERGING ECONOMIES
by Bruno Vilela, Ricardo Martins, Janaína Siegler
Abstract: This study sought to indicate the attributes that reflect the best performance and value of logistics professionals in emerging countries. We used the concept of individual competencies and the businesslogisticsmanagement model of skills and knowledge from Murphy and Poist (1991a) as a basis for building the framework. Data collection was conducted via a survey of logistics professionals in Brazil, and data analysis was done using Structural Equation Modeling. Results indicated a positive relationship between education, skills, knowledge in management, logistics, performance, and value of the professional in the organization. In contrast, the relationships between experience, skills, knowledge in business, performance, and value were not found to be significant per the statistical model. The merit of this research is primarily based on the use of a well-established theoretical concept of competency applied to define in practice which sort of logistics professionals have good performance and value in today's demanding market.
Keywords: Individual Competencies; Logistics Professionals; Business-Logistics-Management Model.
Supply chain risk assessment: A content-analysis based literature review
by Thi Huong Tran, Mario Dobrovnik, Sebastian Kummer
Abstract: In recent years, along with globalisation trend, risk management has been an integral part in supply chain management. In this vein, supply chain risk assessment has become an active and important research subject. There is considerable research and debate on the approach and method of assessing risk in order to obtain a sound base for decision making in supply chain and supply chain risk management. This paper aims to synthesise overall aspects of supply chain risk assessment in the literature. To this end, we have investigated 140 peer-reviewed articles in high quality journals by using a content analysis method and a systematic approach. The heterogeneous definitions, focuses, procedures, methods, and indicators of supply chain risk assessment referred to in previous research are comprehensively analysed and presented in classification frameworks in order to gain insights into this field, explore research gaps, and provide an outlook for future research.
Keywords: Supply chain management; supply chain risk; supply chain disruption; risk assessment; risk analysis; risk indicator; risk scale; systematic review; content analysis.
Genetic algorithm combined with Taguchi method for optimization of supply chain configuration considering new product design
by Oulfa Labbi, Latifa Ouzizi, Mohammed Douimi, Abdeslam Ahmadi
Abstract: In this paper, we propose a methodology to optimally configure a supply chain when considering a new product design. The supply chain configuration is conducted during the product design phase. In fact, several product design alternatives are possible and the aim is to select the best product design optimizing the supply chain and satisfying market place as well. In this design problem, specificities of the new product architecture and logistical constraints of supply chain partners are considered at the same time. This product-supply chain design process simultaneity is modeled using an UML sequence diagram. Supply chain design is achieved by levels corresponding to the products bill of material. A mathematical model is proposed for optimizing costs for each level. Genetic algorithms are used to solve the complexity of the model. Since parameters values of genetic algorithms have a significant impact on their efficiency, we have proposed to combine Taguchi experimental design and genetic algorithm to determine the optimal combination of parameters that optimizes the objective function. This method can effectively reduce time spent on parameter design using genetic algorithm and increase also its efficiency. The accuracy of the proposed GA-Taguchi method is validated using CPLEX software to evaluate its performance.
Keywords: Supply chain design; new product design; Unified Modeling Language (UML); mixed integer linear programming; Genetic Algorithm; Taguchi experimental design.
Economic order quantity model for deteriorating item with preservation technology in time dependent demand with partial backlogging and trade credit
by Ali Akbar Shaikh, Gobinda Chandra Panda, Satyajit Sahu, Ajit Kumar Das
Abstract: In this paper, we have described an inventory model for deteriorating item with preservation technology in time dependent demand with trade credit facility and partial backlogging. We have introduced an interesting factor preservation technology to reduce the deterioration rate. Shortages are allowed with a constant backlogging rate. Also, in this paper we have introduced trade credit policy in the perspective of retailers. Our main objective is to find the cycle length, preservation technology strategies and total profit. We have solved two numerical examples to validate our proposed inventory model and presented concavity graphically by using Mat lab software for each example. Finally, we have presented a sensitivity analysis by changing one parameter at a time and keep rest of the parameters are same.
Keywords: EOQ model; deterioration; preservation technology; time dependent demand; partial backlogging; trade credit.
A conceptual framework for impact of automotive engineering changes in new product development
by Balakrishnan AS, Jayshree Suresh
Abstract: The Automobile market is characterized by global competition, highly demanding consumers, complex business environment, and diverse advancements of technologies. To compete, auto firms are forced to develop new products and introduce into the market on time by looking into all the possible areas of new product development (NPD) process. One of the areas that both academicians and practitioners have overlooked in the past is automotive engineering changes (ECs) and its impact on NPD. Organizations need to realize the significance of ECs, its involvement in NPD and its impact on overall NPD project performance and material planning and logistics (MP&L) performance. In this paper an attempt is made to develop, a conceptual framework of the critical dimensions of ECs. The dimensions were identified using the mixed method of literature review and expert opinion interviews. The experts represented the original equipment manufacturers (OEM), Tier1 suppliers and logistics service providers (LSP) from Asia Pacific automotive sector. This paper presents the research outcomes, implications and limitations of the study.
Keywords: EC; automotive; engineering change; NPD; new product development; MP&L; material planning and logistics.
The Influence Of The Order Prepayment On Inventory Optimisation
by Gennadiy Brodetskiy
Abstract: Modification of the inventory management EOQ-model factoring in the temporary value of money (TVM) and an advance payment of the order on the basis of the credit is given in this article. Its purpose is to present for the managers an appropriate modifications of the EOQ-formulas for such models (both for deliveries of one nomenclature of goods, and for multinomenclature deliveries). Usage of these modifications will allow to increase the efficiency of deliveries by taking into account the specificity of appropriate cash flows, if optimization takes into account TVM (by the scheme of simple interest). Accepted that all payments are being realized from the revenue of the previous delivery. The necessary and sufficient condition for a possibility of such payments is established. The interest rate for factoring in the TVM reflects profitability of working capital of the modelled supply chain. It is defined in a format of the model. It is noted that the optimization of the models of this type relate with the synergetic effect of increasing the profitability of working capital.
Keywords: order prepayment; credit for order payment; inventory management; economic order quantity; EOQ; temporary value of money; TVM; payments from revenue; working capital profitability; EOQ modification.
A socially responsible supplier selection model under uncertainty: case study of pharmaceutical department of an Iranian hospital
by Mohamadreza Fazli-Khalaf, Neda Ghasemi Nemati
Abstract: Stakeholders of supply chains have close cooperation with each other and special attention goes to activities of suppliers. Effective performance of Suppliers could result in enhancement of responsiveness of network and heightens customer loyalty and satisfaction that could be regarded as a long-term competitive advantage for companies. In this regard, supplier selection has become an important challenge for company managers in supply chain planning scope. In recent years, importance of corporate social responsibility (CSR) has been emphasized by researchers and field experts that is disregarded in supplier selection scope. Besides, inherent uncertainty of parameters is other issue that should be carefully considered in supply chain planning owing to their undesirable effects on operational and tactical decisions of network design. Based on enumerated matters, a bi-objective dynamic multi-period supplier selection model is developed in this paper that minimizes total of costs of network besides maximizing social responsibility of network echelons. To effectively cope with uncertainty of parameters, a chance constrained possibilistic programming model is proposed. Extended possibilitic programming model enables decision makers (DMs) to control risk-aversion of output decisions. Finally, case study of pharmaceutical department of an Iranian hospital is employed to show efficiency and practicability of developed fuzzy social responsible supplier selection model in real world problems.
Keywords: Supplier selection; Corporate social responsibility; Supply chain; Possibilistic programming.
Developing System Supplier Capability by Integrating Knowledge with Customers
by Inga-Lill Carlsson, Lars Bengtsson
Abstract: As large corporations outsource parts of their manufacturing and services, many small and medium-sized enterprise (SME) suppliers are expected to deepen their capabilities and take on the role of system suppliers. The purpose of this paper is to analyse how a SME can develop system supplier capabilities by integrating knowledge with its customers. The study is based on a deep longitudinal case study of a SME manufacturer and focuses on continuous development capability as one of the core system supplier capabilities. The results show that knowledge integration (KI) with customers is an effective means for building system capability but also illustrates that this is a stepwise process. The study identifies three levels of KI with customers: unidirectional knowledge transfer, mutual knowledge exchange and full-range knowledge. The analysis further indicates that each level of KI requires specific supplier capabilities.
Keywords: SME; small and medium-sized enterprise; Sweden; system supplier; supplier capabilities; supplier development; customer integration; KI; knowledge integration; knowledge exchange; knowledge transfer.
Simultaneous Development of Border Points as Trade Facilitation: Advocacy to Aid Supply Chain of Goods through the Case of SADC Road Entry Points.
by Felistas Zimano, Fayth Ruffin
Abstract: This article situates the Southern African Development Community (SADC) road entry point management systems (REPMS) within international supply chain logistics. It exposes the influence of REPMS on the link between movement of goods and optimum supply chain performance. A novel transdisciplinary theoretical framework drawn from supply chain and international relations theories is applied to survey data from respondents at border points that link Zimbabwe to Botswana, Mozambique, South Africa and Zambia. The 345 respondents are international truck drivers and small and medium entrepreneurs. The authors argue that simultaneity of transformation of two-stop border posts to one-stop border posts is required in a logistical corridor. Findings show that failure to do so disrupt supply chain logistics, impedes international trade and hinders regional integration. Conclusions reveal that, inter alia, SADC REPMS are out of sync with non-state actors and international trade facilitation. Recommendations include cultivation of public-private partnerships for REPMS transformation.
Keywords: Supply chain; sustainable supply chain management; regional integration; reflectivist new regionalism; Southern African Development Community; international trade; transactional costs; trade facilitation; border infrastructure.
THE VTMIS IMPLEMENTATION AND THEIR IMPACT ON PILOTAGE AND MOORING OPERATIONS: A COMPARATIVE STUDY BETWEEN THE PORTS OF BARCELONA (SPAIN) AND SANTOS (BRAZIL)
by Guilherme Vieira, Rafael Silva, Luiz Afonso Senna, Francisco José Kliemann Neto, Priscila Costa
Abstract: This study focuses on the VTMIS implementation and utilization at the ports of Santos and Barcelona. It aims at analyzing: i) the systems implementation context; ii) the adopted model, as well as its objectives and functionalities; and iii) the benefits brought by the system, as well as its impacts on mooring operations and maritime pilotage service. In order to do so, a qualitative and exploratory approach was followed, based on in-depth interviews and on-site visits. As results, a much more mature and integrated VTMIS was identified in Barcelona. Due to the lack of integration and coordination perceived in the VTMIS project at the port of Santos, a set of recommendations for the proper VTMIS implementation in Brazil was developed. These recommendations may also be useful to ports of another regions involved with VTMIS implementation processes.
Keywords: VTMIS; Port of Barcelona; Port of Santos; Comparative Analysis.
Consumer Awareness of Supply Chain Flows in Relation to Consumer Perceptions of Value-added by Supply Chain Management
by Dinesh Dave, Michael Dotson, James Stoddard
Abstract: The objective of this study was to examine the perceptions of consumers regarding their awareness of supply chain management flows and the benefits that these flows convey to them. A further objective was to test the conjecture that consumers could be grouped into supply chain benefit segments. An electronic survey (Qualtrics) was administered to consumers in the United States to test the propositions. Hierarchical cluster analysis revealed three important benefits sought by consumers (variety and assortment, quality/price and reasonable price segments). An analysis of variance suggested that the three consumer supply chain benefit clusters explained differences in consumer awareness of supply chain flows. Consumers in the variety and assortment segment had a higher awareness of financial flows, material flows and information flows as a result of their shopping behavior. The conjecture that the variety and assortment segment had higher awareness of supply chain flows due to their higher online shopping frequency was supported.
Keywords: Consumer Awareness of Supply Chain Flow; Material Flow in Supply Chain; Information Flow in Supply Chain; Financial Flow in Supply Chain; and Consumer Perception of Value-Added Supply Chain.
Modified Johnson Rule for Two-Stage Flowshop Scheduling with Random Breakdowns
by Fawaz Abdulmalek
Abstract: The two-stage flowshop assembly scheduling problem where there are m machines at the first stage and an assembly machine at the second stage is considered in this paper. In several real world service and production systems, there is more than one parallel machines at stage one and an assembly machine to assemble job components at stage two. The machines at stage one will be subjected to unsystematic breakdowns. The jobs order sequence into the flowshop will be based on three jobs ranking rules, Johnson rule, and two modified Johnson rule, namely Johnson Largest rule and Johnson smallest rule. A simulation model of the two-machine flowshop then will be constructed in which both machines at stage one are subject to random failures. Three simulation experiments will be conducted to examine the effect of the job ranking rules on the makespan. The result showed that Johnson Largest ranking rule gave the minimum makespan over the others.
Keywords: Flowshop Scheduling; Random Breakdowns; Johnson Rule; Simulation.
Rice Chain Flow Modeling for Optimized Supply and Distribution Network: The case of Specialized Rice Mill Zones in Bangladesh
by MOAZZEM HOSSAIN, Rawnak Jahan
Abstract: The purpose of this paper is to explore the reorientation of the informal rice industry of Bangladesh into integrated and specialized rice industry zone(s), which should create platform and economy of scale for formal logistics development in an otherwise informal industry chain. This research aims at planning specialized rice industry zone(s) and associated transport logistics through finding optimized location of such zone(s) with minimized total transportation cost. Network flow model is developed using Mixed Integer Linear Programming formulation for evaluating zone locations with consolidated input and output supply base for improving informal supply and distribution logistics. Experiments with the model provide optimized locations of specified number of rice zone(s) with minimized transportation cost. The findings of this research will be useful for policy makers, transport and agribusiness researchers in rice-producing countries, especially, which have informal setup of rapidly growing rice mills. The concept can be multiplied for other crops and scaled to other rice producing countries.
Keywords: Rice Chain Flow Modeling; Food logistics; Rice Supply and distribution Network; Integrated Location planning.
A system for supply chains diversification and (re)design: supporting managers perspective in the face of uncertainty
by Francesco Longo, Letizia Nicoletti, Antonio Padovano
Abstract: Because of the stochasticity of the Supply Chain (SC) and the increased uncertainty due to the negative trend of the publishing industry that is trying to survive to new trans-media contents delivery, business firms are looking for advanced tools supporting them in (re)defining their business (diversification) and in (re)designing their own SC. Here, a multi-method, iterative, four-step procedure has been defined where a new and win-win integration between Value Stream Mapping (VSM) and multi-paradigm simulation is achieved. Such framework is implemented into a DSS (called SmartDistr), equipped with dedicated GUIs that drive the user along its application and use. The potentials of the proposed approach are demonstrated through the case study of a business firm managing a regional distribution network in the publishing industry. To this end, the proposed case study shows how the SmartDistr DSS allows evaluating operational and financial performance measures along with managerial insights that enable managers to discern easily different business diversification and SC (re)design scenarios.
Keywords: Decision Support System; Value Stream Mapping; Simulation; Business Diversification; Supply Chain Design; Distribution Network.
Capacitated Vehicle Routing Problem Using Genetic Algorithm: A Case of Cement Distribution
by Tanzila Azad, M.A.A. Hasin
Abstract: Vehicle routing problem is a multi-objective problem. The problem involves optimizing a fleet of vehicles that are to serve a number of customers from a central depot. Each vehicle has limited capacity and each customer has a certain demand. A procedure is introduced for the optimization of a customer order service management system with a structured distribution network of a cement company of Bangladesh .The goal of the research is to find a solution of Vehicle Routing Problem using genetic algorithm. It generates feasible clusters of resellers or distributors and determines delivery sequence and an optimal distribution network to meet demands by travelling minimum distance. The results of the study show that Genetic Algorithm provides a search technique used in computing to find true or approximate solution of search problems. The technique is able to determine the optimum route for the vehicles. while maintaining their constraints to get an optimal distribution network that minimizes the total travelling distance.
Keywords: Capacitated Vehicle Routing ; Optimal Route ; Genetic Algorithm.
Exploration Factors affecting an ambidextrous supply chain
by Mohd. Mehdi, Salma Ahmed
Abstract: The purpose of the study is to identify the exploration factors affecting an ambidextrous supply chain in Indian context. A structured questionnaire using a five point likert scale was employed to collect data from 110 supply chain managers working in Indian supply chains. The survey was conducted to examine the different exploration factors affecting an ambidextrous supply chain. Demographic details of the supply chain managers were also collected. Research hypotheses were also framed based on existing literature about ambidextrous supply chain and were statistically tested using structured equation modelling (SEM). The application of exploratory factor analysis (EFA) presented the existence of four constructs; three independent constructs of exploration and one dependent construct of ambidexterity. These four constructs were confirmed by the application of confirmatory factor analysis (CFA). After the confirmation of these constructs, the structured equation modelling (SEM) tested the formulated research hypotheses. SEM identified the exploration factors affecting an ambidextrous supply chain. The study is likely to provide supply chain managers significant understanding about the various exploration factors affecting an ambidextrous supply chain. This identification of various exploration factors affecting an ambidextrous supply chain will aid supply chain managers in formulating and executing their decisions appropriately.
Keywords: Ambidextrous supply chain; Exploration; Knowledge Practices; Innovative Practices; Exploratory Learning; Structural Equation Modelling (SEM).
Lagrangian Heuristic for Supply Perishable Products in Two-Echelon Distribution Network
by Sona KANDE, Christian Prins, Lucile Belgacem, Thibault Lhermitte
Abstract: This article presents a planning problem in a distribution network incorporating two levels inventory management of perishable products, lot-sizing, multi-sourcing and transport capacity with a homogeneous fleet of vehicles. This study is carried out in the framework of a thesis in collaboration with the company FuturMaster, designer of an APS (Advanced Planning System) software. This type of network has been encountered in recent years by several FuturMaster customers, such as in the distribution of dairy products or beverages, and with instances that can reach large sizes. A mixed integer linear programming (MILP) is developed to solve this real planning problem. There are some instances for which the solver cannot give a good lower bound within the maximum calculation time and for other instances it takes a lot of time to solve MILP. A fast heuristic has been developed in order to obtain solutions when the solver fails to find optimal solutions in acceptable times. However, the difference at the best lower bound is fairly large: about 20%, on average, over the instances tested. To improve the quality of heuristic solutions, three metaheuristics based on neighborhoods are developed. This are a variable neighborhood descent (VND), an iterated local search (ILS), and a Multi-start iterated local search (MS-ILS). However for instances for which the solver does not provide a good feasible solution, within the given time. We could not evaluate the distance to the optimum for the heuristic and metaheuristics solutions. A Lagrangian relaxation is implemented to evaluate these instances and compare the results with those of the metaheuristics. The relaxed problem is solved by a method of sub-gradient, which changes the multipliers on each iteration and provides a suite of lower bounds. A repair heuristic is applied to the corresponding solutions, for which the cost tends to fall during iterations; it offers an alternative solution for solving the studied problem. For computational evaluation, the instances are built using a random generator.
Keywords: Lagrangian heuristic; Lot-sizing; Multi-echelon inventory; Multi-sourcing; Perishable product; Transport capacity.
MANAGING RISKS AND SYSTEM PERFORMANCE IN SUPPLY NETWORK: A CONCEPTUAL FRAMEWORK
by Huy Truong Quang, Yoshinori Hara
Abstract: Examining a certain risk will provide an insight into a single dimension, but a picture of different risks in the supply chain (SC) is still lacking, as risks do not take place independently, but typically simultaneously. This research aims to propose and validate a conceptual framework for linking various dimensions of risk to system performance in the SC. To this end, first risks in the supply network were identified by applying SC mapping - a new approach in the SC risk body of literature. Then the theoretical conceptual framework comprising a holistic set of SC risks was proposed. In this model, risks were classified into three categories with regard to their level of impact on performance, i.e. core risks (supply, operational and demand risks), infrastructure risks (finance, information and time risks) and external risk. Empirical evidence at Vietnam construction industry showed that a total of nine SC risks were established. Accordingly, there are two new concepts formed from operational risk, namely (1) investor-related operational risks and (2) contractor-related operational risks. External risk, moreover, was split into two new dimensions: (1) human-made risks and (2) natural risks. Except for relationships between demand risk & SC performance and between SC risks & financial performance, these risks have mutual interaction and detrimentally affect SC performance. Using this framework, companies will have a systematic view of risks in the whole SC network whereby they can define risks in their own context and ascertain critical SC risks that cause negative effects on SC performance. Moreover, this framework can be used as a guide-map in an effort to mitigate SC risks.
Keywords: Risk; Supply Chain Risk; Risk management; Supply chain risk management; Construction Sector.
A Methodical Analysis of Inventory Discrepancy under Conditions of Uncertainty in Supply Chain Management
by Nebil Buyurgan, Shengfan Zhang, Kaan Okyay
Abstract: This study presents two compensations methods for inventory discrepancy caused by demand, supply and lead time uncertainty as well as inventory related errors. The first method increases the resistance of supply chain by incrementing safety stock levels while the second method controls and corrects inventory discrepancy based on estimated errors. System-level errors are categorized and modelled under the best and the worst possible conditions to characterize and investigate the behaviour of discrepancy between on-hand and recorded inventory in a supply chain. Numerical analyses are performed to observe inventory and discrepancy behaviour to quantify the benefits of the methods. The results indicate that inventory errors can be characterized as an extra source of demand in supply chain. Incrementing the safety stocks based on inventory records can decrease stock-outs and lost sales but increase the level of on-hand inventory. Controlling and correcting inventory discrepancies however, keeps low inventory.
Keywords: inventory management; supply chain management; inventory discrepancy; safety stocks; inventory record correction.
Supply Chain Management Maturity and Complexity: Findings from a Case Study at a Health Biotechnology Company in Brazil
by Luiz C. Roque Júnior, Guillherme F. Frederico, Maykon L.N. Costa
Abstract: Recently, research on the maturity levels of different management areas has gained increased importance. In supply chain management SCM, some approaches have been developed with a view to better understanding how to enhance performance. This paper presents a case study at a Brazilian biotech company, which is a national reference in molecular biology. The purpose is to gather evidence of the level of maturity and complexity in supply chain management. Considering that supply chains are crucial for companies in the health services segment, the results of this survey establish the company maturity dimensions to serve as base in working towards achieving higher SCM competence levels. The survey also includes complexity elements for the purpose of gathering evidence on existing relations between complexity and maturity. From the main findings, a clear relationship can be established between maturity and complexity levels. This study makes an important contribution to the literature on supply chain management maturity and complexity. It can also be used by practitioners as a guide to be applied in companies to drive understanding of the relationship between maturity and complexity.
Keywords: Supply Chain Management; maturity; complexity; biotechnology; health; case study.
Brazilian Trends in the Practice of Corporate Social Responsibility
by Maria Cristina Fogliatty De Sinay, Gabriel Aguiar De Araujo, Laura Sinay, Marta Correa Dalbem
Abstract: The objective of this study is to verify trends in the level of adoption of some CSR practices by the largest Brazilian companies. Secondary data were analysed on more than 600 Brazilian companies related to their adherence to CSR practices along the 2008-2014 period. While Environmental Educational Programs got the highest adherence, Accountability for Environmental Hazards got the lowest one. Industrial and agroindustrial sectors adhered more and scored better to CSR practices than commercial and services sectors, but still showed low adherence to eco-efficient and/or accountability practices. The adherence ratio to CSR practices by the commercial sector is more volatile, signalling that it is less committed to long term CSR strategies. The services sector scored well, close to the other 3 sectors. It was also possible to observe that CSR is still seen as discretionary by a number of companies which tend to neglect environmentally friendly practices during economic downturns.
Keywords: corporate social responsibility; CSR; brazilian corporate social responsibility practices; brazilian CSR practices; corporate social responsibility in economic sectors; CSR in economic sectors; trends in corporate social responsibility practices; trends in CSR practices; performance in corporate social responsibility; performance in CSR.
DETERMINING THE OPTIMAL COLLECTION PERIOD FOR RETURNED PRODUCTS IN A STOCHASTIC ENVIRONMENT
by Nizar Zaarour, Emanuel Melachrinoudis, Shashank Kapadia, Hokey Min
Abstract: As the customer centricity has become a norm for todays business practices, a growing number of firms adopted liberal product return policies. Such policies, however, can backfire due to their costly operations and unpredictability associated with product returns. To minimize the adverse impact of product returns on the firms bottom line and enhance customer satisfaction with hassle-free handling of product returns processes, we develop and propose a mathematical model that determines the optimal collection period at an initial collection point (ICP) before transshipping the returned products to a centralized return center (CRC) while taking into account the uncertain rate of returns for these products. To reflect the complexity and uncertainty of the product return processes, we formulate a general model for daily returns following a discrete probability distribution and analyze the case for Poisson distribution.
Keywords: stochastic; product returns; collection time period; close-loop supply chain.
Implementing an Insert-node Heuristic Travelling Salesman Problem: A case Study to Reduce the Travelling Cost of a Medical Representative
by Mohammed Obeidat, Mohammad Hayajneh
Abstract: This paper develops an insert-node heuristic for solving a case study involving the Travelling Salesman Problem (TSP). A new infants formula company that is entering the United States market. The company established one head office in each state that has some medical representatives. One representative in the state of Kansas office who is in charge of visiting maternity hospitals or clinics in 48 cities in Kansas (USA) is selected. The objective of this research paper is to find the optimal route between the 48 cities for the representative, to minimize the travelling time and cost. The addition of this paper to the literature is that the insert-node heuristic approach is applied to the medicine and infants formula distribution in the state of Kansas.
Keywords: travelling salesman problem; TSP; heuristic; cost minimization; Hamiltonian cycle.
A Review and a model for logistics clusters
by Hui Han
Abstract: While logistics clusters (LC) are developing rapidly, there is clearly a lack of consensus on term names and definitions within the field of logistics clusters, let alone a common model for the logistics regions hierarchy. This study systematically reviews and compares relevant terms, so that the subsequent issues can be answered: (i) What are key concepts about LC and related areas being described? (ii)Which relationship is between these terms? (iii)What are the limitations of current models for the logistics regions hierarchy? The paper first provides a content analysis of 153 carefully identified papers from books, edited volumes, conference and journals. Then, based on the scope and the scale of logistics activities criteria, we propose a four-layer model for the logistics regions hierarchy. The proposed model is valuable in guiding scholars and practitioners to understand typology and hierarchy of logistics entities. Finally, this paper affords some guidelines on the direction of future research.
Keywords: logistics cluster; agglomeration; hierarchy model; literature review; content analysis; logistics centre; logistics hub.
Supplier selection model under changing criteria environment
by M.D. TANWEER AHMAD, Sandeep Mondal
Abstract: The study aims to present the supplier selection (SS) model under changing criteria environment based upon the market, because not all suppliers exist in the market are capable to perform potentially under considered set of criteria. However, the practical situation related to criteria and suppliers attributes in the company vary time to time due to this uncertain environment. In order to this, SS model based upon the fuzzy technique for order preference by similarity to ideal solution (TOPSIS) is proposed. The approach includes fuzziness with strategic perspective of finding the best set of suppliers in order to cope of the uncertainties into the problem. The methodology is validated through realistic data taken from an Indian automotive company. Subsequently, sensitivity analysis is conducted for knowing the robustness of the process. It is identified the robust set of criteria for evaluation of the problem which often faces the changing in the product for the managers.
Keywords: Supplier selection; Fuzzy TOPSIS; Automotive company; Sensitivity analysis.
The forward and reverse pharmaceutical supply chain network design considering tainted product delivery
by Zohre Ranjbar, Abolfazl Mirzazadeh
Abstract: This paper deals with pharmaceutical supply chain network design considering time periods. Due to the importance of health care management in forward side and increasing number of wastes in recent years, we consider both forward and back side flow of pharmaceutical network in this paper to satisfy patients need and control the useless materials to achieve environmental considerations. We proposed a seven echelon closed loop network with capacitated facilities in which time periods, transportation mod and production technology have been considered. It is noteworthy that inspection at distribution centers is applied to prevent tainted material delivery in forward side. These useless materials have been sent to collection centers to be disposed in the best way. Also the model of this paper determines the number of production centers, distribution centers, collection centers, production technology, transportation mode and the best way of waste disposing and try to satisfy consumers need on time and minimize the network costs. Some numerical examples are proposed to explain the results.
Keywords: closed loop; health care; network design; inspection; waste management.
Empty container movements beyond the effect of trade imbalance: Turkish terminals
by AHMET SELCUK BASARICI, TANZER SATIR
Abstract: The research objective of this study is to reveal the facts and magnitude of empty container movements (ECM) other than trade imbalances, which is called additional empty container movements (AECM) herein. According to the research, objectives have been extended to reveal the reasons for this, to form an opinion about the root causes, and to submit implications and recommendations on how to reduce this. The primary reasons for ECM that were indicated in the literature are trade and container-type imbalances. However, beyond this, empty movements are subject to operational drivers and other reasons arising from voluntary commercial decisions of ship operators, called the market effect. We must distinguish trade imbalance and AECM to find a reasonable solution for effective container transportation and to eradicate avoidable ECM. We have categorised the reasons for ECM and proposed a model and mathematical formula to quantify the magnitude of AECM. The unique formula derived from the proposed model has been implemented to analyse ECM in Turkish terminals for the throughput between 2013 and 2015. The ratio of initial AECM and sum of full in and out data for 20-foot containers in Turkey is 18%, while the trade imbalance is 30%. The identical ratio for 40-foot containers is 26%, while trade imbalance shows 17%, stressing the significant magnitude of AECM.
Keywords: maritime container transportation; reasons of container repositioning; market effect; Turkish container terminals; empty container; closed circuit model.
Factoring in Vehicle Capacity in Multinomenclature EOQ-models
by Victoria Gerami, Ivan Shidlovskiy
Abstract: For the multinomenclature EOQ-models the analysis of feasibility of deliveries using several vehicles factoring in vehicle capacity is conducted. It is proved that such deliveries with an increase in the number of vehicles that simultaneously used for a single delivery cannot be effective, if a discount is not given for the cost of such a delivery. The necessary and sufficient condition that sets the threshold level of the discount, at which the deliveries by several vehicles are able to compete with the traditional solutions, is established. The cases of numerical calculations are presented in the article.
Keywords: transportation; EOQ models; economic order quantity; vehicle capacity; inventory management; EOQ; multinomenclature models; supply chain management; SCM; deliveries using several vehicles; cost optimization.
A partially backlogged supply chain model for deteriorating items under reverse logistics, imperfect production/remanufacturing and inflation
by Swati Sharma, S.R. Singh
Abstract: Reverse logistics increasingly conquered interest in the past decade. It consists of operations related to the reuse of products, such as the collection of products from end users and general processes such as reusing, repairing, and recycling. In this paper, a reverse logistics supply chain inventory model in an inflationary environment is developed. Production and remanufacturing rates are finite and variable. During the production (remanufacturing) process some imperfect quality products are produced (remanufactured), which are reworked after production (remanufacturing) run. Items deteriorate over time with time-varying deterioration rate. Many classical reverse logistics supply chain models are developed with constant demand rate and ignoring the shortages which are not true all the time in practical life. Therefore, in this model, it is assumed that the demand rate of the buyer is a function of on-hand inventory and selling price. Shortages are allowed only for the buyer and partially backordered with a time-dependent backlogging rate. The purpose of this study is to determine the optimal integrated reverse logistics supply chain policy. Finally, numerical examples and sensitivity analysis along with some decision-making implications are provided.
Keywords: Reverse logistics; supply chain; Weibull deterioration; imperfect production/remanufacturing; inflation; shortages.
A One-Warehouse/Multiretailer Inventory System with Lost Sales, Erlangian Lead Times, and Emergency Shipments
by Hamed Tayebi
Abstract: We consider a two-echelon inventory system with one central warehouse and a number of retailers. Retailers replenish their stock from the central warehouse, and the central warehouse, in turn, replenishes its stock from an external supplier. In case of a stock-out at the warehouse, the external supplier replenishes retailers stocks by emergency shipments. The warehouse and retailers apply a base-stock ordering policy and unsatisfied demands at retailers will be lost. We assume that lead times of retailers are Erlangian distributed. If the base-stock level is larger than one, under the realistic assumption that the replenishment orders do not cross in time, the Erlangian lead times become stochastically dependent. This dependency will affect the optimal base-stock levels at retailers and, consequently, the optimal base-stock level at the warehouse. In this paper, by applying stochastic process and queuing theory concepts, we obtain the stock-out frequency at the retailers, estimate the demand rate at the warehouse, and calculate the total cost function of the inventory system. We also present an algorithm to compute the optimal base-stock levels at the warehouse and retailers. Our numerical study illustrates that the sequential supply system cannot be ignored, and if we ignore lead times dependency, an unexpected extra cost will be incurred in practice, which is very sensitive to the shape parameter of the Erlangian lead times.
Keywords: Two-echelon inventory system; Base-stock ordering policy; Lost sales; Stochastic lead times; Emergency shipments.
A bi-objective model for humanitarian logistics network design in response to post-disaster
by Mahshid Zanganeh, Sadoullah Ebrahimnejad, Amirhossein Moosavi, Hamed Tayebi
Abstract: Disaster management is a broad topic consisting various operations to recover victim regions of natural disasters, such as Disaster Relief (DR) and post-disaster operations. Regarding the considerable importance of sufficient and on time assistance for affected people, this paper investigates the Humanitarian Logistics Network Design (HLND) that allocates and distributes the DR resources to affected areas. In this study, a bi-objective Mixed Integer Linear programming (MILP) model has been proposed that maximizes lifesaving utility function of wounded people and minimizes the consequences of aiding to affected people with delay. Since the required data for decision-making are changing over the time, rolling horizon approach and time-space network have been linked to each other in order to deal with the dynamic essence of this problem. Eventually, we have studied a real case study of Sichuan to evaluate the proposed MILP model. According to the computational results, assignment of DR resources satisfies 57.4%, 43.8%, 57.5% and 14.6% of the demands in Dujiangyan, Wenchuan, Beichuan, and Qingchuan cities only 20 hours after the natural disaster, respectively.
Keywords: Resource Allocation and Distribution; Humanitarian Logistic; Disaster Management; Rolling Horizon Approach; Time-Space Network.
Optimum weighbridge locations in container terminals
by Yavuz Keceli, Mehmet Oguz
Abstract: Weighing of containers is an important task in container terminals, and can lead to operational bottlenecks if it causes long queues. This study develops a simulation model to compare different container terminal layouts in terms of weighbridge location. The results indicate that when weighbridges are located at the gates rather than inside the terminal area, this causes shorter queues and leads to shorter truck turnaround times.
Keywords: weighbridges; optimum weighbridge locations; container weighing; operational bottlenecks; container terminals; terminal layouts; truck turnaround times; simulation models.
Goal programming and Data Envelopment Analysis approach to disaster relief supply chain design
by Jae-Dong Hong, Kiyoung Jeong
Abstract: The objective of this paper is to present and demonstrate the use of Goal Programming and Data Envelopment Analysis (GP-DEA) framework for the Disaster Relief Supply Chain (DRSC) design problem to help decision-makers who are responsible for disaster planning and management activities. For this, we develop a GP model with multi-objective functions, and each of the results−DRSC layouts−from the GP is considered as a decision making unit (DMU) to be evaluated by DEA. The impacts of the emergency relief facilities (ERFs) and the distribution channels between the facilities are evaluated and quantified concerning the efficiency and robustness. A case study using historical data in South Carolina is analyzed with the framework. We identify that GP-DEA framework optimizes and evaluates DRSC layouts without any subjective judgment from decision-makers. Further, we also identify that the performance of DRSC layouts is the most significantly determined by the performance of the distribution channels in the layouts. If any DRSC includes more influencing channels, its performance improves in terms of the efficiency and robustness. We claim that our study proposes an innovative step towards the DRSC design problem. Decision-makers can significantly improve their insights and options for a better DRSC design by using the proposed framework and the results of this study.
Keywords: Data envelopment analysis; Goal programming; Disaster relief supply chain; Logistics network design.
Product driven system for the optimal assignment of warehouse locations
by NAJLAE ALFATHI, Abdelouahid Lyhyaoui, Abdelfettah Sedqui
Abstract: The assignment of locations is one of the warehouse management pillars. This paper presents a new method for assigning to each product, the optimum location relative to the product and to the location assignment system. To achieve this objective, we propose the integration of an infotronic technology carried by product. By this, the product becomes smart and able to find the best location where it must be stored. We consider each empty location or set of empty locations a section called critical section. Thus, by being intelligent, the smart products must manage the access to these sections. We have applied the solution to manage the locations assignment in a steel coil warehouse. Thus, we have validated that piloting by product allows optimal management of locations assignment.
Keywords: Product driven system; Smart product; Infotronic technology; assignment of location; critical section; warehouse.
Inquiry into Reverse logistics and a decision model
by Padmanabh Balasubramanyam
Abstract: A process in which a product is moving in reverse along the supply chain network is called as Reverse logistics. The objective of Reverse logistics is to recapture the value of the final product. Reverse logistics is gaining ground because of its importance in managing a closed loop supply chain.
Companies across the world are showing concern about environmental degradation and are realizing the need for sustainable development. Many countries have already passed legal regulations.
Good Reverse logistics process indicates lot of reuse, recycling and reducing the material consumed, thereby ensuring sustainability. Improving Reverse logistics will result in increase in sales up by 10 percent, a reduction in the supply chain costs by 25 to 40 percent. In retail sector the profit margins are less and strengthening Reverse logistics can increase the profit margins.
This paper attempts to inquire into the Reverse logistics area and come out with the prioritized variables impacting the different Reverse logistics disposition decisions. The paper attempts to propose a conceptual model for Reverse logistics disposition decision.
Keywords: Supply Chain Management; Closed Loop Supply Chain Management; Reverse Logistics.
Presenting a model for decoupling Points in Supply Chain Networks
by Alireza Alinezhad, Abolfazl Kazemi, Mojgan Khorasani
Abstract: The decoupling point (DP) is gaining attention as a significant factor in design and management of supply chains. The DP divides the part of the supply chain oriented towards customer orders from the part which is based on forecast planning and it can be stated that DP separates production process from lean production system to agile system. So, we can use the advantages of both production systems. Position of the decoupling point is a key factor that influences the design and management of a supply chain. In this study, we describe determination of decoupling point as a multi objective decision making (MODM) problem, and our objectives are minimization of production cost, production delivery time and maximization of customer satisfaction. We use NSGA II for determining Pareto optimal solution to extract some solution concepts. Finally, a numerical example is applied to validate applicability and feasibility of the proposed model and performance of the developed algorithm.
Keywords: Decoupling Points; Lean and Agile production system; MTO and MTS strategies; MODM; NSGA II.
A new tool for generating scenarios in container terminals
by Iñigo L. Ansorena
Abstract: This article presents a new tool for generating scenarios in container terminals. The tool simulates the arrival of vessels at container terminals. Each new ship call is modelled with eight variables that are crucial to produce scenarios of high practical relevance. Four variables describe the characteristics of container ships (demand) while the other four describe port performance (service). Then the tool generates random numbers from these variables. The random numbers are generated according to statistical distributions. Then the tool detects a failure if the generated number (output) is out of a range of tolerance. The number generator is the first step to develop a complex simulation model which might be used to cope with berth planning and crane scheduling problems in the future. The structure of the generator discussed here is general enough to be applied to any container terminal.
Keywords: simulation; container terminals; failure rate; port performance; service-demand.
Integrated Inventory System with Freight Costs and two types of Quantity Discounts
by Ivan Darma Wangsa, Hui Ming Wee
Abstract: In this paper, we investigate an integrated inventory model for single supplier-buyer considering stochastic demand. We consider two quantity discounts with freight environment. The objective is to minimize the integrated total cost incurred by the supplier and buyer. Freight costs are the function of shipping weight and distance with two transportation modes: truckload (TL) and less-than-truckload (LTL) shipments. We develop two optimal models considering all-units quantity discount and incremental quantity discount. The study shows how freight costs and the two discount policies affect the total cost of the supplier and the buyer. Numerical examples are used to illustrate of two models.
Keywords: Integrated inventory; TL and LTL; stochastic demand; all-units quantity and incremental quantity discounts.
Ranking the obstacles of green supply chain management using fuzzy approaches of TOPSIS and DEMATEL With a case study in a pharmaceutical industry
by Arash Shahin, Behzad Masoomi, Mohammad Ali Shafiei
Abstract: The aim of this study is to analyze and prioritize the obstacles of green supply chain management (GSCM) in the pharmaceutical industry. For this purpose, the obstacles of achieving GSCM have been identified and ranked via fuzzy TOPSIS and DEMATEL approaches. Statistical population consisted of 155 managers, employees and customers of Vetaque Pharmacy Company. Fuzzy DEMATEL technique has been employed for prioritizing the obstacles and identifying their causalities. Findings indicate the first to third priorities as the lack of environmental knowledge; unbelief about environmental advantages and green production; and lack of government support in policy making consistent with the environment. The applied fuzzy DEMATEL approach resulted in segmenting obstacles into some meaningful portions in order to effectively facilitate decision making on prioritizing obstacles for improvement.
Keywords: Green supply chain management; Obstacles; Pharmaceutical industry; Fuzzy TOPSIS; Fuzzy DEMATEL.
Truck Scheduling Problems in the Cross Docking Network
by Warisa Wisittipanich, Takashi Irohara, Piya Hengmeechai
Abstract: Cross docking is a logistic management strategy for reducing storage level, inventory management cost, and customer delivery lead-time. In the large distribution network in which products are transferred through one or more cross docks, the decision of whether to synchronize inbound and outbound trucks for the whole network is crucial since it significantly impacts on supply chain performance. This study presents the novel mathematical model of truck scheduling problem in the cross docking network consisting of several cross docks and addresses the importance of synchronizing the truck schedule in a network as a whole. The model is formulated as Mixed Integer Programming (MIP) with an objective to find the optimal truck schedule and product transshipment to minimize the makespan. The results demonstrate that simultaneously optimizing truck schedule throughout the network improves the solution quality compared to those obtained from model that optimizing the truck schedule in each cross dock sequentially.
Keywords: Multiple Cross Docking; Cross Docking Network; Truck scheduling; Makespan.
Assessment of the Physical Internet Enabled Urban Logistics Using Agent-Based Simulation
by Long Zheng, Pieter Beem, Ki-Hwan Bae
Abstract: The Physical Internet (PI) is a new paradigm in logistics to aim for more efficiency and sustainability via the shared use of hubs and transports as well as the consolidation of shipments. This study investigates the potential of an open mobility web, designed on the principles of PI, in an urban area with e-commerce warehouses. Our motivation is to understand benefits gained by incorporating PI into existing logistics networks. To that aim, a multi-agent based simulation model is developed to demonstrate the efficacy of our proposed solution approach in this modelling framework. Four transportation scenarios simulate a range of advancements from the traditional logistics to PI. The computational results using real data indicate that the PI-enabled mobility web outperforms the traditional logistics on most performance measures of time and cost. We conclude with implications for logistics stakeholders, and discuss limitations and extensions of this study.
Keywords: agent-based simulation; physical internet; urban logistics; interconnected transport logistics; freight transportation.
Sustainable Supply Chain Management: A literature review of recent mathematical modelling approaches
by Janya Chanchaichujit, Quynh Chi Pham, Albert Tan
Abstract: This research maps and defines the modelling approaches and mathematical techniques that have been used in solving supply chain problems in various industries. Therefore, mathematical tools and techniques utilised in sustainable supply chain management research in each industrial sector will be identified, thereby opening up directions for future research. The aim of this research is to review publications in order to examine how various industrial sectors use different modelling approaches to achieve a sustainable supply chain.
Keywords: Sustainable supply chain management; Mathematical modelling approach; Simulation method; Heuristic method; Hybrid model; Analytical model.
Enhanced optimal inventory control policies of perishable products in a retail business: a comparative simulation study under different cost structures
by Naleak Heng, Navee Chiadamrong
Abstract: This paper experiments different replenishment policies of perishable products using simulation-based optimization approach. The main contribution of this study is to recommend the best replenishment policy and whether enhancing a typical periodic review policy can lead to a better outcome. It was found that enhancing a typical periodic review policy with a backroom and a reorder level can lead to a higher net profit. In some instances, integrating both of them together can outperform implementing them alone, as they can complement each other. The finding also suggests that enhancing the base policy by screening out bad items before reaching the customers may not be so cost-effective if the removed items cannot be sold to generate extra revenue or the loss of goodwill is not the main concern. These findings can help shop managers to make right decisions on the optimal inventory policy in a certain situation under an uncertain environment.
Keywords: perishable products; inventory control; retail businesses; replenishment policies; simulation-based optimisation.
Impact of Transaction Costs on Supply Operations and Price Competitiveness in Wholesale Marketing: A Study in Reference to Mexico
by Rajagopal , Ananya Rajagopal
Abstract: Transaction costs make significant impact on determining the logistics and inventory costs in a consumer wholesale products companies. Effective management of transaction cost help companies ensure competitive prices and induce loyalty among the consumers. This paper aims at analyzing the transactions costs and its relationship with wholesale prices. This study critically examines the previous studies on transaction cost approach of wholesaler firms in reference to the cost incurred in their brands using direct-to-customer strategy than having it provided through the retailers. Data in this study has been conducted in reference to two large wholesale outlets in Mexico City. It is argued that wholesaler brands can effectively reduce uncertainty of supplies and increase satisfaction level the pricing expectation. Large wholesaling firms reduce their transaction costs by lowering the margin spread among the suppliers and obtaining supplies nationwide from a limited number of suppliers.
Keywords: Transaction cost; wholesale price; logistics cost; inventory management; customer satisfaction.
A Study of Criteria for Air Cargo Terminal Classification Model
by Treephis Rodbundith, Kamonchanok Suthiwartnarueput, Pongsa Pornchaiwiseskul
Abstract: For global air cargo movement from airport to airport, air cargo terminal is a key success of airlines and air cargo transport at airports. This study is aimed to explore important criteria to air cargo terminals on the new integration of relevant and reviewed variables from academic researches and International Air Transport Association’s regulated standards. To examine variables, the investigation of criteria significance is based on opinion and endorsed by 57 air cargo terminal operators covering 474 terminals around the world. Thereafter, the methodology is to evaluate the endorsed criteria and employs Principal Component Analysis for criteria reduction onto correlation and similarity conditions by factor loading scores above 0.6. The remaining criteria are finally re-validated by aviation experts executed into 9 main criteria with 44 sub-criteria. Moreover, the finding of air cargo terminal classification model is tested to cluster air cargo terminals in Thailand’s major airports with the results of 3 classification. Also, the guideline with factor loading scores from significant criteria is developed for air cargo industry for business investment and decision making purposes.
Keywords: air cargo terminal; criteria and classification; cluster analysis; international air transport association; principal component analysis.
Supply Chain for Sustainable Renewable Energy from Biomass
by Jirasak Ji, Narameth Nananukul
Abstract: A sustainable-energy policy requires the development of economical and sustainable renewable energy systems. The most important step is to ensure that the renewable resources will be efficiently utilized. Biomass is considered a renewable energy resource that is abundant in agriculture-based countries. This research focuses on the feasibility of developing a sustainable resource supply chain plan, by using available biomass as a resource for producing electricity in the Loei province, Thailand. A mixed integer linear programming model has been proposed to determine suitable locations for the biomass power plants, the optimal biomass production, and supplier allocation that result in the lowest operating cost to meet the electricity demand. The availability of different types of biomass, different modes of transportation, and electricity consumption in the Loei province is used to develop the optimization model. An extended model is also proposed to deal with the perishability of biomass. The proposed models can be used and applied by decision makers to perform different types of analysis in order to assist decision making on the location of biomass plants as well as in the distribution plan. The computation results are provided to show how the proposed models can be used to determine the operational plan for using biomass as a renewable resource in the Loei province.
Keywords: biomass; supply chain optimization; biomass power generation; Loei; Thailand
Optimising the location of a hub port in Thailand for arrival of Dawei and Pakbara ports
by Sakaradhorn Boontaveeyuwat
Abstract: This paper considers a hub port selection problem for Thailand by evaluating the Dawei and Pakbara ports based on expected hub competition among other existing major ports in Southeast Asia that focus on servicing the local demands for container transport in Thailand. The infrastructure capability of ports in handling containers at berths is also analysed. The cargo supply and demand come from several ports in the world considered as the origin and destination points for 76 provinces in Thailand. A mixed integer programming model is developed to minimise the total system costs, taking into account vessel operating cost, port cost and inland logistics cost considered as three modes of transport: road, waterway-road and rail-road modes. In total, the model consists of 26,755 decision variables, five integer variables and 82,690 constraints. The results show that the two foreign ports (Port Klang and Singapore ports) are a better choice than the two new arrivals (Pakbara and Dawei ports) for serving Thailand local demands and are close runners up to Laem Chabang port.
Keywords: hub port; cost minimisation; Dawei port; Pakbara port; mixed integer programming; P-hub median problem; Thailand.
A production-inventory model in vendor managed inventory system with deteriorating items and pricing in fuzzy environment
by Masoud Mohammadzadeh, Abolfazl Mirzazadeh
Abstract: In this paper, we develop a vendor managed inventory system for a supply chain with two levels. First level is one manufacturer and second level is several non-competing retailers. The manufacturer produces a deteriorating product from a deteriorating raw material. All deteriorating rates assumed as fuzzy numbers. The demands in retailers are price sensitive based on predefined function with fuzzy parameters. The manufacturer can produce products at a variable production rate that is one of the decision variables of our model. Other decision variables are retail price, the replenishment frequency of raw material, the replenishment cycle of the product that obtained by maximising the total profit of the entire chain. Because of concavity of the profit functions, with a solution algorithm, the exact optimal solution was found. At the end, a numerical example is presented to illustrate the model performance with a sensitivity analysis. Finally, some conclusions and future research directions are proposed.
Keywords: vendor managed inventory; VMI; pricing; production rate; fuzzy deteriorating rate; nonlinear optimisation.
Multi-objective optimisation of continuous review inventory system under mixture of lost sales and backorders within different constraints
by Marzieh Keshavarz, Seyed Hamid Reza Pasandideh
Abstract: This paper presents a continuous review stochastic inventory control system. The demand of each product assumed stochastic. In inventory models, it is common to assume that unsatisfied demand is backordered. We considered mixture of lost sales and backorders for shortages. We optimised inventory system with finding fraction of demand backordered. Also, we considered service level in model to improve customer satisfaction and compete better in retail environment. We considered two conflicting objectives: 1) minimising the total cost; 2) maximising the service level. The goal is to generate more diverse and better non-dominated solutions of reorder point, order size and fraction of demand backordered such that the total inventory cost is minimised and the service level is maximised. We considered constraints such as warehouse space, order quantity and restriction on available budget. Constraints are stochastic and follow normal distribution. Two multi-objective optimiser multi-objective particle swarm optimisation (MOPSO) and non-dominated sorting genetic algorithm (NSGA-II) is proposed to solve the problem. We compared the performance of two proposed algorithms with TOPSIS and statistical method. In this comparison, the optimum values of the NSGA-II parameters were obtained using regression analysis.
Keywords: multi-objective optimisation; inventory; backorder; lost sale; continuous review policy; NSGA-II; MOPSO; service level; shortage; regression analysis.
A Delphi-based scenario analysis of Turkish logistics industry for 2023
by İsmail Çağrı Özcan, Volkan Recai Çetin, Muhammed Bilge Kağan Albayrak
Abstract: This study attempts to forecast future scenarios of Turkish logistics industry for 2023 which is the 100th anniversary of the establishment of the Republic of Turkey. The major findings of the two-round Delphi survey reveal that the panel experts expect: 1) new foreign logistics firms will enter Turkish logistics market where the competitive advantages of the global logistics firms over their Turkish competitors will increase and vertical integration and consolidation tendency will likely to rise; 2) Turkey will become an international logistics centre thanks to its geographical advantage but political instabilities in Turkey's neighbour countries will continue to be a problem for goods transportation; 3) share of the state-owned enterprises will decrease in logistics industry but ambiguity in authorisation process of relevant public agencies in logistics industry will maintain the situation of too many talking heads; 4) Turkey will improve its position in the logistics performance index.
Keywords: logistics industry; Delphi method; Turkey; scenario analysis.
Optimal pricing and inventory decisions in a centralised and de-centralised two-echelon inventory system under nonlinear price dependent demand
by Dega Nagaraju, Kalla Kiran Kumar, S. Narayanan
Abstract: In this paper, a two-echelon inventory system with a single-manufacturer and single-retailer is considered. Mathematical model for both centralised and decentralised supply chain (SC) is developed by incorporating setup/ordering cost, carrying cost and transportation cost of the respective entities of the chain. Replenishment quantity of the retailer and the number of shipments from manufacturer to retailer are considered as the decision variables in the model. The objective of the proposed model is to demonstrate the optimality of the annual net revenue of the SC and the decision variables under nonlinear price-dependent demand. A numerical example is devised and the model is solved using the computer program written in MATLAB. Also, the sensitivity analysis is carried out to demonstrate the variation in the objective function with model parameters. From the findings of the research, it is concluded that with centralised decisions, percentage increase in the optimality of the annual net revenue of the SC decreases with manufacturer's unit cost whereas increases with retailer's unit cost.
Keywords: two-echelon inventory system; mathematical model; transportation cost; number of shipments; nonlinear price dependent demand.
Delivery of Chinese mitten crab during peak season: logistics dilemma for micro-e-businesses
by Junmin Yi, Huizhen You
Abstract: The enjoyment of Chinese mitten crab from Yangcheng Lake during mid-autumn has been cherished by wealthy people in the Yangtze Delta for a long time. With this delicacy tradition widespread throughout China, delivering these live crabs at the right time to different destinations has become a challenge in the current information-driven market. Such delivery poses remarkable logistics requirements for emerging micro-e-businesses. In this study, the packaging and shipping processes completed by farmers were examined. The logistics service provider's operations were analysed in terms of parcel entry and sorting, routing and transportation, and last-mile delivery. Finally, logistics capacity versus performance dilemma was identified. Based on the problems identified in the investigation, appropriate strategies are suggested for the logistics and supply-chain system.
Keywords: perishable food; delivery; logistics service provider; LSP; operations; e-business; case study; China.
Special Issue on: Operations Management of Various Logistics Flows
Comparison of static ambulance location models
by Pieter L. Van Den Berg, J. Theresia Van Essen
Abstract: Over the years, several ambulance location models have been discussed in the literature. Most of these models have been further developed to take more complicated situations into account. However, the existing standard models that are often used in case studies have never been compared computationally according to the criteria used in practice. In this paper, we compare several ambulance location models on coverage and response time criteria. In addition to four standard ambulance location models from the literature, we also present two models that focus on average and expected response times. The computational results show that the Maximum Expected Covering Location Problem (MEXCLP) and the Expected Response Time Model (ERTM) perform the best over all considered criteria. However, as the computation times for ERTM are long, the Average Response Time Model (ARTM) could be a good alternative. Based on these results, we also propose four alternative models that combine the good coverage provided by MEXCLP and the quick response times provided by ARTM. All four considered models provide balanced solutions in terms of coverage and response times. However, the Multiple Response Times Target Model (MRTTM) outperforms the other models based on computation time.
Keywords: Emergency Medical Services; Integer linear programming; Ambulance base locations; Comparative study.
Replenishment behavior in sequential supply chains
by Amin Kaboli, Rémy Glardon, Nicolas Zufferey, Naoufel Cheikhrouhou
Abstract: Inventory managers do not predominantly follow normative optimization models. At best, they introduce a level of bounded rationality in their inventory replenishment decisions. This paper examines the behavior of inventory decision-makers under continuous review in a decentralized supply chain, using an experimental approach with unknown market demand and local information availability. The analysis reveals that not only the magnitude and the variability of order quantity tend to be larger, but also that the order-time intervals is lengthen and highly variable while moving upstream along the supply chain. The role of the inventory managers replenishment decisions on the echelon holding, backorder, and total costs, is also investigated. Finally, a normative model is designed and its solutions are compared to the experimental results. It is observed that humans do not operate in a perfectly optimal way, but are generally reluctant to risk increasing backorder costs and reducing inventory carrying cost, even if this would lead to lower total cost.
Keywords: Behavioral operations management; Continuous inventory replenishment; Supply chain; Multi-echelon network; Laboratory experiment; Inventory management; Cost computation; Optimization; Normative model; Simulation.
A Combined Vehicle Loading and Routing Problem: A Case Study of Fuel Logistics
by Abdelaziz Benantar, Rachid Ouafi, Jaouad Boukachour
Abstract: In this paper, we introduce a model and solve a Multi-compartment Vehicle Routing and Loading Problem with Time Windows (MCVRLP-TW). This problem originates from a real-life application arising in the fuel distribution, where a specific attention is paid to integrate the loading process in the routing problem. There are a heterogeneous fleet of vehicles with multiple compartments and customers with different types of products, which require to be served during defined time periods. The main objective is to satisfy all petrol station demands at a minimal routing and service cost. For the MCVRLP-TW, we begin by describing the problem, providing its mathematical models, which distinguish the loading aspect from the routing problem and proposing an efficient tabu search to solve it. Within the framework of the tabu search, we introduce an efficient feature based on the Kolmogorov-Smirnov statistic to restrict the search process to a set of elite neighbouring solutions. We evaluate the performance of the approach by means of extensive numerical experiments. Furthermore, we analyse a real case under different data sets to demonstrate to our industrial partner the effectiveness of the proposed approach.
Keywords: Vehicle Routing and Loading; Compartments; Time Windows; Tabu Search; Fuel Distribution.
Integrating collaborative and outsourcing strategies for yard trucks assignment in ports with multiple container terminals
by Ahmed Mostafa, Elawady Attala
Abstract: In container terminals, Yard Trucks (YTs) are mostly used for transporting containers between storage yards and berthing positions of vessels. Even though keeping a large number of YTs ensures lower service times especially at peak periods, but this way is not cost-effective for container terminals due to daily volatility of demand. In literature, outsourcing and collaborative strategies have been investigated as alternatives to keep a large number of YTs to alleviate possible bottlenecks arising in peak periods. The outsourcing strategy means renting additional YTs for a container terminal. While collaborative strategy is implemented by sharing YTs among multiple container terminals with adjacent locations. However, these two strategies have been dealt with separately in literature. This paper presents a new MIP model which considers the two strategies simultaneously. The proposed model is solved using a rolling horizon heuristic. Numerical experiments are performed to evaluate the performance of the proposed approach.
Keywords: Yard truck; Logistics; sharing; collaboration; outsourcing; rolling horizon; container terminals.
A new approach for ordering decision under uncertainties: A case study in the retail supply chain
by Mohamed Bahroun, Slim Harbi, Hanen Bouchriha
Abstract: Many retailers experience significant losses due to out of stock (OOS) risk. A thorough analysis of a case study has revealed that this situation depends on three main factors: First, the demand and supply risks, second the responses of customers to on shelves OOS and third the behavior of managers facing these risks. This exploratory and theoretical research focuses on the modern retail supply chain risks associated with the supply side and the demand side and highlights the impact of these risks on the on shelves OOS and the total cost of lost sales (TCLS). While the literature on supply chain risks is growing, there is a lack of realistic support tools for the prediction of the supply risk when the order size and the delivery lead-time are dependent decision variables. The problem presented here, and the way in which it is addressed, is different from similar problems in the literature. We do not merely assume the lead-time to be a random exogenous variable, but we include the impact of the order size decision on the delivery lead-time and use the result to predict the supply risk. We propose a new approach for ordering decision under supply and demand uncertainties. This approach considers a new method to predict the supply risk and proposes a realistic estimation of the TCLS taking into account the responses of customers to OOS. Some numerical examples from a real case study are presented to illustrate the proposed approach.
Keywords: Modern retail supply chain; supply risk; demand risk; lost sales; out-of-stock; and consumer behavior.