International Journal of Logistics Systems and Management (98 papers in press)
- A systematic approach to evaluate supply chain management environment index using graph theoretic approach
by Tarun Gupta, Vikram Singh
Abstract: The performance of a supply chain is characterized by its ability to remain market-sensitive without losing the integration through the chain. One of the difficulties in designing and analyzing a supply chain is that its processes are governed by the strategic factors of the supply chain. With the emergence of a business era that embraces change as one of its major characteristics, increasing the market share and survival are becoming more and more difficult to ensure. The emphasis is on adaptability to changes in the business environment and on addressing market and customer needs proactively. This paper is identifying the supply chain management from the perspective of digraph approach. An attempt has been made to identify through literature review of 150 papers contain 65 factors and understanding the interrelationship among these factors, sub factors to design a mathematical model using graph theory approach. This paper attempts to consider factors & sub factors from a system point of view.
Keywords: Supply Chain Management (SCM), Supply Chain Management Environment (SCME), Service Quality in Supply Chain (SQSC), graph theoretic approach (GTA)
- ANALYSIS AND MEASUREMENT OF SUPPLY CHAIN FLEXIBILITY
by Georgy Kurien, M Qureshi
Abstract: Supply Chain flexibility is a strategic and tactical necessity for sustenance and progress of business enterprises. Measurement of flexibility is therefore necessary for its monitoring, control and communication. The study proposes a framework and a methodology for flexibility performance measurement of supply chains. The framework identifies flexibility objectives and its contributing attributes at four levels of the supply chain and suggests taxonomy of flexibility performance measures. A methodology to prioritize the contribution of each performance attribute to achieve the desired flexibility objective using Analytic Hierarchy Process (AHP) has also been proposed and demonstrated in this study. The research is based on detailed literature based study and analysis of existing frameworks of flexibility performance measurement in supply chain and expert opinion. The proposed framework is suitable for measurement, monitoring and controlling flexibility in a supply chain in addition to prioritising contributing attributes of flexibility. The research does not test the model but suggests a platform for further development.
Keywords: Analytic Hierarchy Process; flexibility; performance measurement; supply chain; taxonomy
- Logistics Outsourcing: the decision-making process in contracting companies
by Renata Bandeira, Antonio Maçada, Luiz Mello
Abstract: Although the use of third-party logistics services providers is still growing, unsuccessful logistics outsourcing experiences have been reported in the literature, in which failure to identify the factors affecting the choices made regarding logistics outsourcing is seen as an important element. Given this background, the present study adopts an empirical approach using qualitative and quantitative techniques to propose a set of factors that affects the logistics outsourcing decision-making process in the Brazilian context, as well as the level of importance attributed to each decision factor. This research aims to help scholars and practitioners understand the factors involved in logistics outsourcing decisions.
Keywords: Logistics, Supply Chain Management, SCM, Outsourcing, Decision-making process, Third-party logistics services providers, 3PL, Structural Equation Modeling, SEM, Resource-based view of the firm, Transaction cost economics.
- Supply Chain Management in Food Processing Sector: Experience from India
by Khushdeep Dharni, Ramandeep Sharma
Abstract: Food Processing is an important link between agriculture sector and the consumers. Importance of Logistics and Supply Chain Management is increasing at the global level especially in Food Processing. Present study is an attempt to explore the status of Supply Chain Management in Food Processing Industry of Punjab. Fifty Food Processing Units were included in the study. Survey queries focused on a range of issues such as recognition of Supply Chain Management as a separate functional area, use of information technology applications, and use of cold chain facilities. An attempt was also made to explore Supply Chain Management Practices adopted by Food Processing Units. Results indicate that Logistics and Supply Chain Management is still in its infancy in Food Processing sector. There is considerable scope improving Supply Chain Management practices especially in context of Information Quality, and Postponement.
Keywords: Supply Chain; Supply Chain Management; Practices; Food Processing; Logistics Regression
- Performance Prediction Of An Unreliable Flexible Manufacturing Cell With Double Gripper Robot
by M. Jain, G.C. Sharma, Pankaj Sharma
- Supply Chains subject to Demand Shocks
by Kannan Nilakantan
Abstract: This paper takes up the study of the behavior of a distribution warehouse of a supply chain when it is subjected to sudden demand shocks. The warehouse is at the downstream end of the supply chain, and caters to the demand off-take of the chain which follows a responsiveness strategy. We study the effect of different types of replenishment policies followed at the warehouse, and compare their performance with one another in the warehouse system, looking at how quickly they can absorb the shock and smooth out the system, and restore it to normalcy. We find that all the conventional replenishment policies suffer from the disadvantage that they inevitably transmit the shock backwards in the chain to the upstream units. We subsequently propose a different design paradigm to formulate the problem under, which prevents the backward transmission of the demand shock to the upstream units, but rather attempts to smooth it out. rnrn
Keywords: Key words: Supply Chain Management, Dynamic Models, Ordering Policies, rn Demand shocks, Warehouse Controlsrn
- The Effect of Attributes of Distribution Channel Member on Supply Chain Management: An Empirical Analysis of Social Networks in Business
by Lakshmanasamy Thangamuthu, Anil Chandrasekaran
Abstract: Marketing channels are an integral part of the supply chain phenomenon and play a vital role as a network. Unlike the supply side of the chain, distribution networks play more collaborative role in making available the product in the market. It is essential to understand the influence of the social and demographic attributes of the individual members in the distribution on the level of networking amongst the members and is a concern for the managers of the organisations to promote mutual relations to achieve maximum product coverage. This paper empirically analyses the effects of such micro factors in the distribution network using the social network analysis and graphs the emerging empirical network in a business related to construction industry. The results show that personal and social aspects of individuals in the network influence the linking, networking and the structure of the network which have important implications for business promotion and product delivery.
Keywords: Keywords: social network analysis, supply chain, distribution channels, construction industry, intermediaries, dealers, individual attributes, networking, micro economic analysis.
- Weighted-ISM technique for analysing the competitiveness of uncertainty and risk measures in supply chain
by Mahesh Chand, Tilak Raj, Ravi Shankar
Abstract: This paper mainly deals with the uncertainty and risks management in supply chain. Uncertainty and risk management plays a vital role for the competitiveness and the growth of industries. In this regards, ten uncertainty and risk measures have been identified through literature review and expert opinion, they are further analysed by using weighted interpretive structural modelling (W-ISM) technique. ISM approach is used to develop a structural modelling between these measures and a method of competitiveness index (CI) is used to identify the key measures. The competitiveness index evaluated in this paper will help the industries to benchmark their performance by managing uncertainty and risk measures reported in this study.
Keywords: Supply chain management, Uncertainty and risk measures, W-ISM, CI.
- FMECA based approach for vendor rating: benefits, limits and future perspectives
by Francesco Zammori, Gionata Carmignani
Abstract: Over the last decades, the capability to establish logistic partnerships has proven to be a key element of success and, consequently, vendor rating has become a topic of great importance, both from a practical and academic point of view. This paper belongs to this stream of research and rethinks Failure Mode Effect and Criticality Analysis (FMECA) as a quantitative framework for vendor rating. The rationale behind this choice can be traced in the high reputation of FMECA and in the key role played by
Keywords: FMECA; Vendor Selection techniques; Vendor Rating.
- Evaluation of valuable chain in palm oil industry based on SCOR model: a case study
by Wahyudi Sutopo, Dwi Indah Maryanie, Yuniaristanto Yuniaristanto
Abstract: Indonesia is the largest producer and exporter of palm oil in the world, beating Malaysia which was used to be the largest producer in the world. However, Indonesias derivative products still lag behind Malaysia because of low productivity. A good supply chain management is one of the causes why the development of Malaysias more superior to Indonesia. This paper aims to evaluate the performance conditions of valuable chain in palm oil industry from upstream to downstream currently based on SCOR
Keywords: Derivative Product; Palm Oil Industry; SCORÂ® Model; Valuable Chain
- The Key Factors for Selecting C2C Logistics Companies in Thailand: An Application of Analytical Hierarchy Process and Three Ranking Logic
by Rapee Pongpanich, Tzong-Ru Lee (Jiun-Shen), Nirote Sinnarong
Abstract: In this paper, the key success factors (KSFs) for selecting the Consumer to Consumer (C2C) logistics provider in Thailand. Relevant factors related to the selection criteria of a C2C third party logistic (3PL) provider are first solicited from the literatures and seventeen major factors which are categorized in five groups are identified by a group of experts. Then, we apply Analytical Hierarchy Process method incorporated with the three ranking logic to calculate the global weight for each factor. Finally, it is found that the top four KSFs for selecting C2C 3PL providers in Thailand are (i) transport price, (ii) on-time delivery, (iii) quality of service and (iv) short lead time. These results can let the 3PL providers understand the needs of the players in the C2C markets, Furthermore, it can be also treated as a guideline for the C2C entrepreneurs to monitor and improve the quality of their customer services.
Keywords: KSFs, AHP, C2C logistics company, 3PL provider, Thailand
- Web-based decision support system for integrated supply chain management
by Gary Moynihan, Shaoyi Wang
Abstract: The objective of this project was to develop a prototype Web-based decision support system for the integrated supply chain, and demonstrate how the performance of the supply chain could be improved by this system. Data from two industrial case studies were examined, and their limitations were identified. An extensive management science/ operations research model and a subequent Web-based decision support system were proposed to overcome the determined limitations and better adapt to the real world. A traditional system design methodology was employed to develop the system. Verification and validation were conducted on the system by utilizing accepted methods. The system eases data entry for users and helps to avoid a partial perspective view of the supply chain. It can also overcome an overabundance of transactional data for the purpose of managerial decision making, and the difficulties to integrate the activities of multiple organizations.
Keywords: Decision support system; logistics; supply chain management
- A vendor buyer integrated inventory system with vendor's capacity constraint
by Bibhas Giri, Rupak Bhattacharjee, Ayan Chakraborty
Abstract: This article considers a joint economic lot sizing problem (JELP) of a single-vendor single-buyer inventory system in which the vendor is capacity constrained. The proposed model is formulated assuming that whenever the vendor's on-hand inventory level reaches the maximum attainable capacity, (s)he follows a modified consignment stock policy until the production lot is completed. A solution algorithm is provided and a numerical example is taken to illustrate the developed model. Sensitivity analysis is performed to examine the impact of key model-parameters on the optimal solution.
Keywords: Inventory; joint economic lot sizing problem; capacity constraint; consignment stock
- Perceived Barriers, Collection models, Incentives and Consumer preferences: An exploratory study for effective implementation of reverse logistics
by Saumya Dixit, Anurika vaish
Abstract: Proper disposal of e-waste by implementation of reverse logistics is a potential area of research for controlling greenhouse gas emissions, global climate change and landfills. The consumers serve as the starting point for product acquisition in reverse logistics. However, previous researches show that most of the consumers prefer storing their e-waste at home to returning it to producer and thus lowering proportions of e-waste available to producer for disposal. This research work aims to ascertain consumer preferences in order to strengthen acquisition of e-waste from them. Therefore, in order to motivate consumers to return their mobile waste, the paper present a brief review of the perceived barriers, collection models and the desired incentives from the perspective of consumers themselves, followed by the research methodology, results and ends with scope for future research.
Keywords: reverse logistics, barriers, consumer, incentives, e-waste
- Modeling Hospital Inventory Management using Interpretive Structural Modeling (ISM) approach
by Dinesh Kumar
Abstract: The inventory management process is an essential concern for a hospital because it affects the clinical, managerial and financial outcomes and comprises of large part of overall supply chain cost. It is responsible to supervise and control on the inventory at central stock and various individual care units (ICUs). This paper presents an interpretative structural model (ISM) for the hospital inventory management with sixteen key factors. Experts opinions on all factors have been translated into the structural model to establish some interrelationships among the factors. MICMAC analysis has been done to categories the factors on the basis of their driver and dependence powers. The study may offer directions to the hospital administration to take key decisions to improve overall inventory management performance and reduction of cost.
Keywords: Keywords: Interpretive structural modeling, Health service sector management, decision making, inventory management structure.
- RFID Acceptance in SMEs Using TOE framework: An Empirical Investigation on Iranian SMEs
by Javad Khazaei Pool, S. Mohammad Arabzad, Ali Asadi, Mohammad Reza Ansari
Abstract: The aim of this study is to identify effective factors on Radio Frequency Identification (RFID) adoption in supply chain management (SCM) of manufacturing industries in small and medium sized enterprises (SMEs) with technologyorganizationenvironment (TOE) framework. The methodology of this study is based on practical and descriptive survey by a structural equation modeling. Statistical population of the study is SMEs managers in Iran. The number of 213 managers was selected as potential sample. The results show that TOE framework has considerable effects on RFID acceptance. The inclusive results and presumptions in this study are effective for recognizing extensively determinant factors on RFID acceptance in SMEs.
Keywords: Radio Frequency Identification (RFID), Small and medium sized enterprises (SMEs), Technologyâ€“organizationâ€“environment (TOE) framework, supply chain management (SCM).
- Household Reverse Logistics Analysis using the SCOR Model to Improve Home Safety of the Elderly in the Municipality
by Supawadee Putthinoi, Komsak Meksamoot, Pitipong Yodmongkol, Nopasit Chakpitak
Abstract: As Thailand enters an ageing society, reverse logistics concerning unused household items by elderly people becomes a problem for the local community. Throughout their lifetime, elderly people usually collect or hoard things in their house, which can lead to the risk of accidents by falling. There is very poor reverse logistics of household items, such as unused charity donations, in developing countries. A suburban village in Thailand was selected as a problem model. This study focused on unused household items in houses of the elderly. Therefore, it aimed to introduce the SCOR model for assessing this reverse logistics problem. The retail suppliers in the community were placed into six categories; electrical store, furniture store, pharmacy, bookstore, supermarket and temple. The flow of household products was a direct line from retailers to end users. The SCOR process (PSMDR) elements of all suppliers did not support the reverse logistics activity for elderly customers. To list in formal language was good for the local community to enable a flow of reverse logistics, which should improve Thailands ageing society.
Keywords: SCOR; Household logistics; Reverse logistics; Ageing society
- Complex Network Theory Based Approach for Designing Resilient Supply Chain Networks
by Sonia Irshad Mari, Young Hae Lee, Muhammad Saad Memon
Abstract: Globalization within supply chains opens many doors for new opportunities but can also result in highly complex, unstable and fragile supply chains. The recent literature mainly covering supply chain risk management emphases a lot of attention towards making the more robust and resilient supply networks, the reason may be the increasing number of disruptions. Due to importance of complex network theories in supply chain system, this paper is written to analyse the supply chain networks on the basis of complex network topologies. The authors examine the advances of complex network theories to understand the properties of these networks in underlying efficient supply chain. In this paper, the resilience metrics for supply chain are developed based on complex network theory. Various important complex network models are compared using agent-based simulation approach with resilient supply chain network to propose the applicability of complex network models for designing a resilient supply chain. Simulation results shows that supply chain network can be designed based on complex network theory especially as a scale free network. It was also concluded that scale-free models have some limitations and cannot accurately represent an efficient and resilient supply chain. Therefore, it is suggested that a scale-free model should be developed that can represent more robust and resilient supply chain network.
Keywords: Resilient supply chain; Complex network theory; Disruption; Agent-based simulation
- Routing strategy in a distribution network when the driver learning effect is considered
by Maurizio Faccio, Alessandro Persona, Stefan Røpke, Giorgia Zanin, Battini Daria
Abstract: This paper faces one critical short term decision: the construction of routes for daily goods deliveries in a distribution network. It investigates the possibility of applying a fixed routing strategy instead of a daily routing optimization strategy, analysing the benefits derived from the drivers familiarity with his/her surroundings, customers habits and set-ups. The final aim is to provide an effective and flexible decision-making tool to identify the best routing strategy, considering the level of learning invested by each driver. It is assumed that learning effect impacts on the service time, i.e. on the time spent in service operations once arrived at the customers site. Results demonstrate that fixed routes strategy can often be better than the daily optimized strategy and strongly depends on the parameters investigated in this work. Two case applications are provided to help the readers comprehension and demonstrate the methodologys potential and its practical implications.
Keywords: routing optimization, learning effect, distribution network, vehicle routing problem
- Truck Turnaround Time (TTT) problem at the port of Colombo and a solution through inland ports
by Jayantha Rathnayake
Abstract: This paper examines the Truck Turnaround Time (TTT) procedure at the port of Colombo where trucks are said to be delayed causing congestion in the port and on the roads of Colombo city. A survey conducted in the Colombo port premises showed that the TTT in the Colombo port is relatively longer; ranging from minimum 47 minutes to maximum eight (8) hours with Mean value of three (3) hours. As a solution to improve the TTT, applicability of inland ports, which are expected to replicate the services and facilities of seaports, was considered. Secondary data, other data presented in the studies conducted earlier on the subject matter and an opinion survey were used as the methodology to assess the plausibility of the proposed solution to TTT problem and it was found that inland port to be the most feasible and suitable solution that meets the need of most of the stake holders of the logistics industry as the inland ports could be connected to the sea port through railways thus bringing a relief to the problems created by TTT in the port and its effect on the city roads.
Keywords: Truck Turnaround Time, sea ports, inland ports, congestion, capacity issues, railways.
- An EmpiricalCollaborative Model of Supply Chain Agility
by Santanu Mandal
Abstract: Supply chain agility has been investigated from multiple perspectives. Without supply chain collaboration, supply chain agility cannot be achieved. The current study aims to investigate the influence of seven dimensions of supply chain collaboration viz., information sharing, goal congruence, decision synchronization, incentive alignment, resource sharing, collaborative communication and joint knowledge creation on supply chain agility. As the proposed relationships may vary depending on the context, the moderating role of environmental uncertainty has also been investigated. Based on empirical data collected from 164 logistics and supply chain professionals, the findings develops a priority order for the seven dimensions of SC collaboration required for SC agility development.
Keywords: supply chain agility, supply chain collaboration, dynamic capability theory, information sharing, resource sharing
- EVALUATION OF EXPECTED PAYOFF THROUGH CONTAINER INTERCHANGE BETWEEN SHIPPING LINES: A SOLUTION TO CONTAINER INVENTORY IMBALANCE IN SRI LANKA
by Lalith Edirisinghe, A.W. Wijeratne, Jin Zhihong
Abstract: This paper evaluates the expected economic benefit that could be achieved by interchanging containers between shipping lines by employing the popular Game theoretic approach. It comprehensively discusses the causes underlying the container inventory imbalance; the absence of collaboration (work alone) with respect to containers; the models of collaboration (win-win situation); and the quantitative and qualitative benefits that could be achieved through shipping alliances. The paper suggests barriers to a collaborative approach by carriers as confidentiality of information; regulatory, competition and social issues; and business philosophy of firms. The paper identifies the core areas relevant to empty maritime container inventory imbalance including external trade volumes, commodity types, logistical issues, seasonality, container types and sizes. The ultimate objective is to ascertain the appropriateness of collaboration as a solution to container inventory imbalance in Sri Lanka. Therefore attempts were made to calculate economic benefits of container interchange using specific models. Furthermore the paper looks into those aspects that make the implementation of collaboration more difficult (inhibitors) despite the existence of active agreements between shipping lines and the opportunities and facilitators.
Keywords: Containers (Equipments), Container Shipping Line (CSL), Carrier, TEU, Inventory imbalance, Game theory, Derived demand, commodities, Empty containers (MTYs), Laden containers (LDN)
- The selection criteria of global distributors in the fire protection industry
by Islam El-Nakib, Sara Elzarka
Abstract: In the supply chain of firefighting protection industry, the selection of the right overseas distributors is a strategic advantage for the manufacturer. Improper selection of potential overseas distributor can negatively affect the supply chain performance. Thus, this research tries to point out the current selection criteria used by the Fire Fighting and Fire Alarm Products Manufacturers (FF/FA PMs). In addition, the research attempts to determine how FF/FA PMs evaluate the following four criteria to select the overseas distributors: a) influence in the market, b) financial strength, c) commitment and d) logistical capabilities.The conclusion of this study is that selecting the right overseas distributor is a main requirement for FF/FA PMs effective performance. It is recommended that the company who looks to become an overseas distributor for FF/FA PMS should know the manufacturers requirements from the distributors; also; manufacturers should have predetermined criteria based on which they can select distributors who can represent them in the market.
Keywords: Fire protection, Distributors, Selection Criteria, Supply Chain
- Integrating X-ray Technologies with Intelligent Transportation Systems for Enhancing the International Maritime Security
by Hokey Min, Yong-Kon Lim, Jong-Won Park
Abstract: Over the past decade, the use of X-ray scanning technology for cargo inspection has been on the rise due to its effectiveness in providing clear and unobtrusive views of the contents of items hidden inside containers. Also, it is able to add intelligence and to minimize human intervention in the cargo inspection process without opening up suspected containers. Although X-ray scanning technology is proven to be useful for automatic detection of potential dangers or illicit contents (e.g., narcotics) inside containers, its usefulness may be constrained unless it can be embedded within the system-wide decision support tool. Such a tool includes an intelligent transportation system (ITS) which is designed to improve transportation safety and mobility through the seamless integration of information and communication technology, transportation infrastructure, and shipping vessels. This paper is one of the first to combine X-ray scanning technology with ITS for cargo inspection procedures and gauges its usefulness for enhancing maritime security in global supply chain operations.
Keywords: Intelligent transportation systems, maritime security, global supply chains
- Using fuzzy DEMATEL for evaluating supplier selection criteria in manufacturing industries
by Reza Kiani Mavi, Hossein Shahabi
Abstract: The concept of SCM has received increasing attention from academicians, consultants, and business Managers. Organizations have begun to recognize that SCM is the key in building a sustainable competitive edge for their products or services in an increasingly crowded market place. Further, more and more products reach the customer through supply chains that are composed of independent firms. In the highly competitive scenario, suppliers play a vital role in making a business organization successful. Business of any organization is continuous process and therefore the supplier selection is also dynamic in nature. Therefore, supplier identified for one period may not necessarily be same for the next period to supply the same set of parts. Hence, the supplier selection problem is highly dynamic in real practice. This paper tries to evaluate the influence of effective factors in supplier selection by using Fuzzy DEMATEL method. In this regard, three main criteria including management, logistics and organizational dimensions with 15 sub-criteria identified. 20 experts of academics and practitioner have participated in this study. Results show that planning, partnership and collaboration has the most causal effect on other criteria and cost of logistics is mostly affected by other criteria in manufacturing industry supplier selection.
Keywords: Supply chain management, Supplier selection, Logistics, Management,
Organization, Fuzzy DEMATEL.
- Citizen-Driven Approaches (Cda) For Combating Public Procurement Corruption In Ugandas Local Government Systems: An Empirical Survey
by Benon C. Basheka, Pross N. Oluka, Godfrey Mugurusi
- The Shortest Route for Transportation in Supply Chain by Minimum Spanning Tree
by Arash Shahin, Fatemeh Jaferi
Abstract: The aim of this article is to propose a solution for finding the shortest route for transportation between supply and demand. For this purpose the problem of supplying car battery from Tehran to the centers of provinces of Iran has been investigated and a graph has been developed in which the center of each province is regarded as a location of this graph and the distances between the center of each province and the neighboring provinces is regarded as the length of chords. Then by using the heuristic prim algorithm, the Minimum Spanning Tree of this graph has been obtained, and this tree has shown the shortest route for transportation. The problem has also been solved by meta-heuristic genetic algorithm, and the response has been compared with prim algorithm, and it has been shown that for big problems, the genetic algorithm can be used. In order to reduce the density of freight cars in roads, a scenario has been proposed by which, roads traffic and accidents, fuel consumption and customer delivery time can be reduced. The innovation of this research is in using genetic algorithm in graphs for analyzing supply chains to find the shortest route between producer and customer in every area and also to offer new approach for increasing efficiency of transportation, reducing time and total cost.
Keywords: Transportation, Prim Algorithm, Genetic Algorithm, Scenario
- Desired Skills and Competencies of Prospective Supply Chain Managers: An Empirical Investigation of U. S. Supply Chain Executives
by Michael Dotson, Dinesh Dave, Sarah Miller
Abstract: The field of Supply Chain Management is growing, and with that growth, a heightened need for skilled Supply Chain Managers has been created. This study examines the specific skills/competenciesdesired by Supply Chain Managers in candidates for employment. Further, the study examines how Supply Chain Management curriculums can be adapted to the dynamic nature of the business environment. Through in-depth interviews as well as a comprehensive survey administered to Supply Chain executives, this research identifies the specific skills and competencies that industry professionals expectin candidates seeking a career in Supply Chain Management in the United States.
Keywords: Supply chain management skills and competencies, supply chain management employment, and supply chain management education.
- An inventory model for Weibull deteriorating items with Salvage Value
by Umakanta Mishra
Abstract: Abstract- In this paper we consider an inventory model for deteriorating items with salvage value. We have considered time dependent Weibull deterioration in developing this model. Three parameter Weibull distributions have been used for this purpose. A numerical example is provided here for illustration. The sensitivity analysis has also been carried out to study the effect of changes in parameters using the numerical example.
Keywords: Inventory model, Weibull distributions, Salvage value, deterioration
- Assessing CSR practices for supply chain performance system using fuzzy DEMATEL approach
by Mohit Tyagi, Dinesh Kumar, Pradeep Kumar
Abstract: In the competitive marketplace, corporate social responsibility (CSR) is becoming a pre-emptive theme for implementing with supply chain functions of an organization. This study aims to identify and analyze the CSR practices to improve or implement an effective and efficient CSR based supply chain performance system. To achieve the aim, a list of thirteen significant CSR practices was identify based on literature review and discussion with field experts taken from automobile industry located at National Capital Region (NCR) of India. As human/expert judgments contain certain degree of vagueness, fuzziness and impreciseness, the collected fuzzy input data on identified CSR practices was aggregated through Converting Fuzzy data into Crisp Scores(CFCS) defuzzification method and then analyzed using fuzzyDecision Making Trial and Evaluation Laboratory (DEMATEL) approach.The analysis discloses that the CSR practice top management and employee awareness about CSR comes out with highest prominence (4.4709) and relation (1.2993) value, hence seems as a most significant and influencing CSR practice,while CSR practice response to non-governmental organization (NGO) working on environmental and social issues comes in picture with lowest prominence (3.5104) and relation (minus 0.9206) value, thus considered as ample influencing CSR practice.This research also visualizes the categorization into cause and effect group, degree of interaction, and inter-relationship of considered CSR practice. The findings of present research work may enable mangers to build correct plan assessments and to frame polices,based on consistent importance of CSR practices, in order to improve or implement effective CSR based supply chain performance system.
Keywords: Corporate social responsibility, Supply chain, CSR practices, Fuzzy set theory, Fuzzy DEMATEL
- Ordering Policy for Non-Instantaneous Deteriorating Items in Two Warehouse Environment with Shortages
by Chandra Jaggi, Priyanka Verma, Mamta Gupta
Abstract: The majority of existing literature in deteriorating items inventory systems deals with items that are subject to deterioration as soon as they land in the warehouse. However, there are items that have a shelf life and start deteriorating after a time lag (non-instantaneous deteriorating items). Under some special conditions, viz., attractive price discount, low storage cost, high demand, etc; the procurement of a large amount of such items at a time is decided. Because of the fixed capacity of the own warehouse (OW), a rented warehouse (RW) is used to store the excess quantity. Further, the last-in-first-out (LIFO) dispatching policy is the most preferred policy by the researchers in two-warehouse models, but this presumption may not be in line with real life scenario. To enhance the usefulness of merchandise or goods, businesses commonly follow the first-in first-out (FIFO) policy. This multiplicity of objectives forms the base and main motivation of our research. In the present paper, a two-warehouse inventory model for non instantaneous deteriorating items is developed under FIFO dispatch policy; shortages at OW are also allowed. The solution procedure has been illustrated with the help of a numerical example and a comprehensive sensitivity analysis, with respect to the important parameters of the model, is considered. Jaggi and Verma (2010) two-warehouse LIFO model with non-instantaneous deterioration is also compared with the proposed FIFO dispatching two-warehouse model.
Keywords: Two-warehouse inventory; non-instantaneous deterioration; LIFO; FIFO.
- Determinants of customer loyalty for home delivery
by Mu-Chen Chen, Chin-Sen Lin, Chia-Lin Hsu
Abstract: The purpose of this study was to investigate the crucial factors, namely service quality and service convenience, that lead to customer loyalty in the home delivery (HD) industry in Taiwan. An investigation of customer loyalty in the HD industry was conducted, with a total of 426 effective questionnaires collected. After validating the measurement scales, empirical analyses were conducted using structural equation modelling (SEM). The results confirm that service quality and service convenience both correlate positively with customer loyalty in the HD industry. In a mature market such as that of Taiwan, it is of great importance for home delivery service (HDS) providers to understand the nature of the drivers of customer loyalty. The current study presents findings useful to managers of HDS providers in their efforts to develop and implement successful customer loyalty strategies.
Keywords: service quality; service convenience; customer loyalty; home delivery; logistics
- An Adaptive Structuration Theory Approach to Price Transmission in the Rice Value Chain
by Togar Simatupang
Abstract: Most of the quantitative studies on price transmission of agricultural products deal with estimating and testing elasticity as well as detecting the presence of asymmetries in the transmission mechanism. It has been argued that the imbalance on price transmission lies in bargaining and market competition among actors. However, previous studies about the process of actors social interaction are partially addressed. The role of actors behavior and the process of social interaction that is constructed and reproduced are regarded as important parts of price transmission. Adaptive structuration theory (AST) is proposed as a research framework, based on actors, structures and agencies taking place through social interaction. The framework for price transmission is built from the extensive structuration matrix which shows the constructs of the structuration theory and their interactions. As a result, nine propositions of structuration are formulated.
Keywords: price transmission, adaptive structuration theory, value chain analysis, rice value chain, supply chain management
- Application of Autonomous Control in Event Logistics Concept - Implementation and First Results
by Florian Harjes, Bernd Scholz-Reiter
Abstract: The complexity and dynamics of logistic systems continuously increase due to growing customer demands, small lot sizes and numerous product variants. As a result, the established planning and control approaches reach their limits and new, innovative approaches come into focus. This paper introduces a concept based on the paradigm of autonomous control that deals with the problems related to the resource allocation under complex and dynamic circumstances, especially with regard to the circulation of rental articles in closed logistic systems.
At this, the paper focuses on the application field of event management to demonstrate the shift from a centralised to a decentralised control in the corresponding logistic processes. The presented approach adapts and combines several autonomous control methods for the distribution of rental articles in event logistics, including the planning of personnel, transports and routes in closed dynamic networks. The overall objective is an autonomously controlled distribution system for rental articles in event logistics, including a process mapping, the development of an autonomously controlled target process as well as a description of the overall system architecture (modelling process + soft- and hardware architecture). The paper further includes a description of the implementation proceeding, first simulation-based performance measurements and an efficiency analysis. All aspects of the approach are clarified by means of an example company from the given field of application.
Keywords: event logistics; rental articles; autonomous control; system integration; efficiency analysis; agent-based simulation; information and communication technologies; planning and control; route planning; autonomous decision-making
- Barriers to Halal Logistics Operation: Views from Malaysian Logistics Experts
by Mohamed Syazwan Ab Talib, Abu Bakar Abdul Hamid, Mohd Hafiz Zulfakar, Ai Chin Thoo
Abstract: There is a growing demand for Halal-certified logistics service, but the supply of such logistics service is limited. This study asserts that there is a potential area for research, and argue that logistics service providers (LSP) are resistant to adopt Halal logistics operation. Therefore, the purpose of this study is to determine the barriers in adopting Halal logistics operation. Additionally, this study tries to highlight the core reasons behind the barrier to Halal logistics operation. This study fills in the gap exist between insufficient supply of Halal LSP and the rising demand for Halal logistics. Semistructured interview technique is used to gather information from four Halal LSP in Malaysia. The respondents are identified from purposive judgement sampling. Four major barriers to Halal logistics operation are identified, and there are four core reasons behind these barriers. This study appraised and contributed to the growing knowledge of Halal and Halal logistics. Research limitations are highlighted and future research agendas are proposed.
Keywords: Halal; Halal Logistics; Halal Logistics Service Provider; Halal Industry; Halal Services; Islamic Distribution; Logistics Management; Operation Barriers; Malaysia; Interview
- Scale Development for supply chain operational performance model (SCOP) in Indian automobile industry by using exploratory factor analysis
by Neelkanth dhone, Sachin kamble
Abstract: The purpose of this paper is to development, of the scale for supply chain operational performance in Indian automobile sector by using exploratory factor analysis. The review highlighted enhanced use of information integration also improves the utilization of facilities and cash flow and improves coordination in supply chain, which further becomes advantage to the organization. Suppliers are not only a source of materials; they can play a vital role in the creation of knowledge due to information integration, and can be a source of innovation. Organizations can see directly some operational benefits by working closely with suppliers, like reduction in various costs, improve quality, and shorten lead-times by involving supplier in the vendor managed inventory and also in collaborative planning and forecasting. Organizations can drive their manufacturing operations to achieve economies of scale, coordinate inventory replenishment, and optimize deliveries. Increased visibility of material usage reduces the distortion of actual demand, allowing organizations to run more efficiently without venturing customer service objectives. Then organizations can produce a product based on customer requirement. Further by using exploratory factor analysis developed instrument helps supply chain practitioner to achieve enhanced efficiency levels by studying its significant effect on efficient integration on integral supply chain operation performance.
Keywords: Supply chain operational performance (SCOP), information integration, supplier initiative, supply chain collaborations, automobile industry, India, Review of literature.
- THE NEW APPROACH TO INVENTORY OPTIMIZATION
by Gennady Brodetskiy
Abstract: There is a hidden reserve for improving the efficiency of supply chains at inventory management. The aim of this research is to develop a special approach for optimization of such systems with regard to the Time Value of Money (TVM) according to the scheme of simple interest, and to modify the EOQ formula respectively. It is caused by the fact that in such models profits are not used to increase the total annual supply, and the interest rate for the calculation of the TVM should reflect the effectiveness of cash flow of supply chain itself. A new formula considering the TVM for EOQ is found. The analytical assessment of the interest rate, which characterizes the supply chain efficiency and is applied in calculations with the use of the generalized EOQ formula, is given. The developed method allows to receive additional synergy effect the increase in profitability of a working capital.
Keywords: Inventory optimization; time value of money; economic order quantity; EOQ; interest rate; effectiveness of cash flows; supply chain; new EOQ formula; working capital; profitability
- An integrated approach for measuring the performance of suppliers in the pharmaceutical industry: A case study
by Sadoullah Ebrahimnejad, Pegah Saki
Abstract: In analyzing an organization, performance evaluation plays a key role in ensuring the success of the organization and improvement its activities; such an evaluation can be carried out through organization efficiency evaluation. The aim of this study is to evaluate the performance of pharmaceutical producers. Therefore, an integrated methodology was proposed which is supported by 3 different techniques. In the first phase, 8 sub-criteria were grouped in 4 main criteria of BOCR, then the relationship between the main criteria was identified using DEMATEL technique. In the second phase, the sub-criteria were weighted by fuzzy ANP. In the third phase, the criteria weights from the previous phase were entered into a DEA model as restriction and the efficiency of the decision-making units (DMUS) were evaluated. Also, the efficient units were ranked using Andersen & Petersen technique. A case study of the present research was examined in 15 DMUS from the pharmaceutical industry, and the computational results indicated that units 1, 3, 4, 10, 11 and 15 were efficient units, among which unit 11 was the most efficient.
Keywords: performance evaluation; decision-making trial and evaluation laboratory; DEMATEL; data envelopment analysis; DEA; fuzzy analytic network process; FANP.
- SUPPLY CHAIN INTEGRATION AND INNOVATION IN A GLOBAL ENVIRONMENT: CASE STUDIES OF BEST BUSINESS PRACTICES
by William Rupp, Alan Smith
Abstract: There have been a number of studies on supply chain management SCM and the integration of performance management. Based on such research efforts, many factors could potentially affect successful supply chain and ultimately hinder its integration process. The goal of the present study project is to explore and compare two companys supply chain management methods to show in what ways they are similar and in what ways they are different. The two companies include Mondolēz International, which operates within the consumer packaged goods industry; and Braskem, which is headquartered in Brazil but also operates globally and is an industry leader in creating thermoplastic resins. Thermoplastic resin is a polymer that is a main ingredient in plastics. Both companies operate globally and both companies use their supply chain methods to attempt to gain a competitive advantage within their industry. We will take a look into the quality controls that are employed within their supply chains and look at different techniques that they use to uphold their quality standards. The methods that will be mentioned are through the use of Six Sigma Methodology and processes and lean manufacturing, which are both used by many Fortune 500 global companies. The impact of implementing a SCM program from a financial perspective was reviewed.
Keywords: case study; lean manufacturing; operations strategy; six sigma; supply chain management (SCM); supplier collaboration; supplier integration
- POSTPONEMENT APPLICATION IN ORANGE JUICE COMPANIES: CASE STUDIES
by Karine Ferreira, Rosane Lúcia Alcântara
Abstract: Postponement can be understood as a way to change the form, identity, or location of products at the latest possible point in time and can be applied in different levels in the supply chain. This study aimed to investigate the implementation of the postponement strategy in orange juice companies in order to identify the types of postponement adopted by these companies, the implementation process, and the major changes after its adoption. Three exploratory case studies were carried out in orange juice processing companies, where interviews were conducted with general managers in the manufacturing and logistics sectors. Among the findings, types of postponement (time and form postponement) were verified. With the application of this strategy, changes in the productive process of orange juice were made with the movement of the decoupling point and the increase in the make-to-order production which had positive impacts on the businesses.
Keywords: postponement; mass customization; supply chain management; food industry; orange juice companies.
- Modeling JIT supply chains by simulation and hybrid genetic variable neighbourhood search algorithm
by Ali Azadeh, Mohammad Abdollahi
- Implications of Customer Roles in Engineer-to-Order Service Supply Chain
by Olaiya Fatodu, Javad Feizabadi
Abstract: This study seeks to find out how knowledge-intensive service firms can improve their performance by more effective management of customer roles in their service supply chain. A single case study method is used to study Drilling Engineering and Well Services segment of a multinational Oil and Gas Services Company, code-named MISI Oil and Gas Services Company. Conceptual framework for explaining the customer roles in service supply chain is developed and validated using data. Customer as logistics service provider is newly revealed in the study. It is also discovered that through its Integrated Project Management model, the company is able to drastically minimize variability and uncertainty that four of the customer roles introduce into its service operations. MISI Company KPIs are affected by how it manages the roles that its customers assume in its drilling engineering and well services operations.
Keywords: service supply chain, customer roles, knowledge-intensive industry
- The economic number of operators for the machine interference problem with heterogeneous machines and preemptive priority
by Gregory Gurevich, Baruch Keren, Yossi Hadad
Abstract: This paper proposes a model for a special case of the machine interference problem, where several heterogeneous machines that produce the same product randomly request a service provided by a group of operators. Each machine (or a group of identical machines) randomly requests several different service types that are provided by groups of operators, such that each request for a service can be fulfilled by a qualified operator that is assigned to perform only this specific service. Presuming the preemptive priority in service between the heterogeneous machines, the model allows computing of the economic number of operators in the context of different objective functions via the binomial probability function. The advantages of the proposed model are that it is much easier to apply when compared to the Markovian models, and that it does not need any restrictive assumptions about failure rate and service distribution, as those of the Markovian models. To demonstrate the applicability of the model, a theoretical analysis and a real case study are presented.
Keywords: Machine interference problem; Queueing; Heterogeneous machines; Machine repair models; Binomial distribution; Priority.
- Management of Demand Uncertainty in Supply Chain Cost Planning
by Dharamvir Mangal, Tarun Gupta
Abstract: Cost effective supply chain management under various market, logistics and production uncertainties is a critical issue for companies in the current development. Reservations in the supply chain usually increase the variance of profits (or costs) to the company, increasing the likelihood of decreased profit. Demand uncertainty, in particular, is an important factor to be considered in the supply chain design and operations. To hedge against demand uncertainty, safety stock levels are commonly introduced in supply chain operations as well as in supply chain design. In this paper, authors proposed the use of deterministic planning and scheduling models which incorporate safety stock levels as a means of accommodating demand uncertainties in routine operation.
Keywords: Supply chain management; Production planning; Demand uncertainty; Customer satisfaction level; Safety stock levels
- Understanding Construction Supply Chain Management for Road Projects
by Anand Prakash, R.P. Mohanty
Abstract: An efficient construction supply chain management for road projects is critical for ever increasing demand for passenger and freight movement; nevertheless they are considered suffering from insufficient capacity leading to time and cost overruns, related disputes and lower quality. In order to improve supply chain performance of the road project, the investment climate should be strengthened for operational issues, pre-construction activities, contract management, dispute resolution, and institutional structure of road agencies. This paper is an attempt to make some critical perspectives relating to construction supply chain for road projects. It provides a direction to integrate the varied perspectives of supply chain management of road construction projects to be validated using qualitative approach of triangulation involving foundational research and soft systems methodology.
Keywords: Construction; Supply Chain Management; Road Construction Project, Project Management; Transportation & Logistics; Soft Systems Methodology
- An inventory model for deteriorating items with ramp type demand under fuzzy environment
by Chandra K. Jaggi, Sarla Pareek, Satish K. Goel, Nidhi Singhal
Abstract: This paper develops a fuzzy inventory model for deteriorating items with ramp type demand function which determines the optimal replenishment policies by minimizing the total cost of the inventory system. Shortages are allowed and are partially backlogged. Fuzziness is introduced in the traditional cost components to a certain extent using the triangular fuzzy numbers and the signed distance method is used to defuzzify the total cost function. This paper, first, develops the crisp model by considering the two possible scenarios arise due to ramp type demand function, and then their corresponding fuzzy models are developed. To test the validity of the model, numerical study is also conducted followed by the sensitivity analysis on the key parameters.
Keywords: Inventory, ramp-type demand, deterioration, shortages, triangular fuzzy number, signed distance method
- A multi-objective location-allocation problem with lateral transshipment between distribution centers
by Hossein Salehi, Reza Tavakkoli-Moghaddam, Gholam-Reza Nasiri
Abstract: Location-allocation problem as one of the strategic decisions in supply chain management has become the focus of research attention. In this paper we design a distribution network by modeling for location-allocation in a supply chain that involves a fixed plant, distribution centers with multiple levels of capacities and retailers. The aim is to select the optimum numbers, locations, capacities of the opening warehouses, allocation retailers to the opened warehouses, therefore all multi-product stochastic customer demands are satisfied at the minimum total cost of the distribution network and the maximum average of warehouse utilization. In addition lateral transshipment within an inventory system is considered (i.e., product movements between locations of the same echelon).The model developed as a mixed-integer nonlinear programming model and an efficient heuristic-based memetic algorithm is proposed. Furthermore, a number of test problems are solved and the associated results are compared to evaluate the performance of the proposed algorithm.
Keywords: Supply chain management, Location-allocation, Inventory, Lateral transshipment, Multi-objective modeling.
- Single-Period Newsvendor Modelling of Flu Vaccination Order Quantities
by Rebecca Scott, David Nowicki, Victor Prybutok
Abstract: The objective of this paper is to determine optimal inventory levels of flu vaccines at one medical facility using the newsvendor model while also maintaining customer service levels and maximizing profit. Using four years of empirical evidence, we illustrate the optimal ordering quantity of flu vaccine by healthcare managers to provide proper medical coverage. This research provides an initial step for ordering quantities of perishable biopharmaceuticals. The research also develops a framework for the logistics of ordering in the presence of multiple constraints throughout the supply chain network. An important contribution of this work is demonstrating the value of the posited logistics model within the context of a healthcare application that has the potential to influence practice.
Keywords: Biopharmaceuticals, Healthcare, Flu, Logistics, Newsvendor Model, Ordering, Perishable, Scheduling, Supply Chain, Vaccinations
- Multi-attributes based comparison of JIT Distribution process of Supply chain.
by Om Prakash Mishra, Vikas Kumar, Dixit Garg
Abstract: Distribution process of a supply chain management is very important and strategic. To stay efficient in delivering the finished goods in the hands of end user, the speed and responsiveness of distribution mechanism are most essential. Just in Time (JIT) has proved result oriented in the manufacturing systems since 1985. Since then its applicability in several fields are being investigated. Low inventory, small lot size, least lead time and quality product are some desirable features of JIT, which proves beneficiary to the firm. This paper highlights JIT applied Distribution Process in order to shorten the lead time, inventory holding costs. Application of Graph theory (GTA) methodology has been used to investigate the interdependencies of Dimensions and its attributes of JIT implemented distribution. Then an empirical value of JIT distribution process (JDP) of an organization has been derived , subsequently coefficient of distribution dissimilarity and similarity have been found for two organization and based on these values comparison of any two organization can be done. This approach can be used to know the lacks of various organizations based on their Feasibility Index of Transition (FIT) value. This value can be used to modify the existing practices in distribution process by improving the low performing dimension; consequently the whole supply chain process will improve.
Keywords: Supply chain management, Distribution process, JIT, GTA, interdependency
- Collaborative capacity sharing in liner shipping operations
by Eric Wibisono, Phongchai Jittamai
Abstract: This paper studies collaborative capacity sharing between two liner shipping companies by investigating the impacts of collaboration on the sharing of fuel consumption. The proposed model is extended from the vehicle routing problem with time windows (VRPTW) through the inclusion of slow-steaming decision variables and constraints to manage the sharing of fuel consumption. Two cases differing in size are developed using Indonesian archipelago for the data background and three policies on fuel-consumption sharing are investigated: open policy, proportionate-sharing policy, and equal-sharing policy. The application of the collaborative model in Indonesian archipelago contributes to the scant literature in maritime logistics collaboration. The optimisation results from generated instances show that the open policy leads to minimum total fuel consumption but the unclear pattern in fuel-consumption sharing between carriers makes it impractical for planning purposes. Moreover, the fuel consumptions of the proportionate-sharing and equal-sharing policies are not significantly different but the smaller variance in the results of the proportionate-sharing policy indicates more predictability. The proportionate-sharing policy is therefore considered the most suitable for route planning.
Keywords: capacity sharing; liner shipping; fuel consumption; slow steaming; vehicle routing problems; time windows; Indonesia.
- A Fuzzy-AHP Multi-Criteria Decision Making Model for Procurement Process
by Sameh Saad, Noufal Kunhu, Abdel Mohamed
Abstract: The purpose of this study is to develop a fuzzy-AHP multi-criteria decision making model for procurement process. It aims to measure the procurement performance in the automotive industry. As such measurement of procurement will enable competitive advantage and provide a model for continuous improvement. The rapid growth in the market and the level of competition in the global economy transformed procurement as a strategic issue; which is broader in scope and responsibilities as compared to purchasing. This study reviews the existing literature in procurement performance measurement to identify the key areas of measurement and a hierarchical model is developed with a set of generic measures. In addition, a questionnaire is developed for pair-wise comparison and to collect opinion from practitioners, researchers, managers etc. The relative importance of the measurement criteria are assessed using Analytical Hierarchy Process (AHP) and fuzzy-AHP. The validity of the model is confirmed with the results obtained.
Keywords: Multi-criteria decision making, fuzzy-AHP, procurement performance measurement
- Traffic Disruptions: A Dynamic Heuristic Approach
by Sundaravalli Narayanaswami
Abstract: A heuristic solution to rescheduling railway traffic, when an already planned schedule cannot be adhered to because of disruptions is presented in this paper. A MIP (Mixed Integer problem) formulation is developed to model disruptions that lead to conflicts on a single track bi-directional scheduled traffic with over-taking and follow-up capacities. The proposed objective is to minimise the total delay of all trains in the operational domain at their respective destinations. We have developed a rescheduling heuristic that re-sequences the conflict trains using a Look-Ahead based Dynamic Ranking (LADR) approach. LADR procedure ranks the conflict trains on their static priority, myopic delay, critical ratio, number of future conflicts and total future delay. The heuristic procedure takes as input a conflict free schedule and is action-initiated by any disrupt to this schedule. The conflicting trains are identified and on the basis of their sorted LADRs departure times are assigned. Each conflicting train is rescheduled one at a time till all trains are rescheduled to their destinations. Our results are promising when evaluated against three other known procedures on a medium sized real world data.
Keywords: Railway Reschedule; conflicts; MIP; ranking heuristic; single track, bi-directional scheduled traffic;
- Learning platform for supply chain system optimization
by Zdravko Zekić, Nataša Rupčić, Marijana Jakopič
Abstract: Fierce competition, dynamic market conditions and resource scarcity pose a constant demand on companies to redefine their business models in order to achieve competitive advantages. The paper offers a review of development trends in modern supply chain management with emphasis on strategic learning partnerships as a means for achieving supply chain competitive advantage. Organizational learning has been proposed as a technology for achieving long-term sustainability in strategic supply chain partnerships. However, in practice supply chain partnerships inadequately exploit established forms of cooperation as vehicles for learning and building knowledge repositories. This can be improved by introducing and optimizing the process of organizational learning in every partnership member as well as a joint partnership activity. The study is aimed at proposing a conceptual model of the learning platform for supply chain optimization. Potentials for its introduction have been estimated by using the case study of Agrokor, Croatian largest food concern.
Keywords: supply chain learning partnerships, organizational learning, system optimization, Agrokor.
- A note on the joint economic lot size model with stochastic demand and variable lead time
by Reza Hosseini Rad, Jafar Razmi, Mohamad Sadegh Sangari, Zahra Fallah Ebrahimi
Abstract: This paper considers the problem of choosing optimal production policy in an integrated production-inventory system comprising a single manufacturer and a single buyer. Two production scenarios are compared, namely continuous and lot-for-lot production policies, using a mathematical modeling approach and the expected total joint cost is considered as the performance measure. In addition, the lost opportunity cost due to production downtime in the lot-for-lot policy, including the cost of unemployment of human resources and stoppage of the production line, is incorporated into the model. Numerical experiment and sensitivity analysis in terms of setup and lost opportunity costs are provided to illustrate the theory and the percentage of difference in the expected total cost of the two policies is analyzed. The presented approach helps managers to make the right decisions on the optimal production policy under different conditions, especially where expert and technical human resources and/or expensive production equipments are utilized.
Keywords: Single-vendor single-buyer; Continuous production policy; Lot-for-lot production policy; Integrated system; Lost opportunity cost.
- Assessing the environmental impact of logistics in online and offline B2c purchasing processes in the apparel industry
by Riccardo Mangiaracina, Alessandro Perego, Sara Perotti, Angela Tumino
Abstract: This paper presents an Activity-Based model for the assessment of the environmental impact of the purchasing process in the apparel industry, comparing traditional in-store and B2c e-commerce channels with a focus on logistics activities. Interviews with company managers and secondary sources were used to develop and validate the model. A base case was selected and applied, and a sensitivity analysis was carried out. Based on the model results, the base case online purchasing process was found to be to be more sustainable than the offline one, due to the lower environmental impact of the Pre-sale and sale and the Delivery phases. The impact of logistics is generally very high in both the online and offline purchasing processes (i.e. 99% and 62% of total CO2e emissions respectively). In the online case, the location of the consumer house (i.e. inside or outside the city centre) is the parameter with the greatest environmental impact, whereas in the offline case the distance between the consumer house and the store was identified as the most significant factor. The paper addresses an identified need to quantify the environmental effects of the offline versus online purchasing channels, and logistics activities in particular. From a managerial viewpoint, the model can help practitioners understand the environmental consequences of their business and can support internal monitoring procedures.
Keywords: B2c e-commerce; logistics; environmental sustainability; quantitative model
- SUSTAINABLE LOGISTICAL OPERATIONS: THE CASE OF McDONALD'S BIODIESEL IN BRAZIL
by Mauro Vivaldini, Silvio R.I. Pires
Abstract: This article aims to describe and discuss the implementation of sustainable actions in a closed-loop fast-food supply chain using a logistics services provider (LSP) through the practical case of the use of biodiesel in McDonalds restaurants supply operations in Brazil. The research was designed and conducted through a longitudinal case study approach and by selecting a representative case, i.e., based on intentional criteria. The study took place in a supply chain using as a focal company a well-known world leader in the fast-food retail industry. Moreover, to guide the research, a basic framework was built and three basic assumptions about the implementation of sustainable operations in supply chains through LSPs were defined. The research findings suggest that the current role of LSPs in the leadership and management of sustainable actions in a clients supply chain may be viewed as a significant competitive differential and it may provide important contributions for companies seeking solutions to sustainable actions related to supply chains, primarily in the fast-food retail industry.
Keywords: Supply Chain Sustainability, Logistics Service Providers, Supply Chain Collaboration, Fast Food, Biodiesel, Brazil
- Centralized and Decentralized Three Echelon Inventory Model for Optimal Inventory Decisions under Price Dependent Demand
by Dega Nagaraju, A Ramakrishna Rao, S Narayanan
Abstract: In this paper, a three echelon inventory system with a single manufacturer supplying a single product to a single distributor and then to a single retailer, is considered. Mathematical model is developed for annual total relevant costs of the coordinated and non-coordinated supply chain. The novel idea of the proposed model is that the demand is a function of retailers unit selling price, which in turn is a function of retailers replenishment quantity with dependence factor. The objective of the model is to demonstrate the optimality of inventory decisions, shipment frequencies and total relevant costs with respect to dependence factor. Numerical illustration is carried out to demonstrate the optimality of replenishment decisions. Finally, managerial insights are inferred in selecting the optimal replenishment quantity and shipment frequency that minimizes the total relevant cost of the supply chain.
Keywords: Dependence factor; Price dependent demand; Supply chain; Total relevant cost; Inventory management;
- LOGISTICS COST MANAGEMENT: INSIGHTS ON TOOLS AND OPERATIONS
by Tálita Floriano Santos, Anderson Tiago Peixoto Gonçalves, Maria Silene Alexandre Leite
Abstract: Logistics Cost are very important in the composition of company management costs. However, visible unfitness is noticed in traditional costing methods to supply adequate data for right management, making people using specific management tools: Total Cost of Ownership, Customer Profitability Analysis, Direct Product Profitability and Activity Based Costing. Besides, over the years it was presented an incomplete view about the composition of Total Logistics Cost. So, this article
Keywords: Logistics Costs; Logistics Cost Management; Total Logistics Cost; Trade-offs; Management Tools; Total Cost of Ownership; Customer Profitability Analysis; Direct Product Profitability; Activity Based Costing; Theoretical study
- Process Development in Customer Order Information Systems to Gain Competitive Advantage: A SME Case Study
by Batuhan Kocaoglu, A. Zafer Acar
Abstract: In todays intensely competitive business environment improvement in sales order cycle time is vital for the companys success. Controlling credits and measuring payment, especially crucial for a SME to manage its cash flow more efficiently, and to gain customer satisfaction, as well. So, the order management process should be robustly designed and optimally controlled. Thus, to gain superior performance firms must initiate new process development activities using information systems in order to find new methods of improving sales order cycle time. The purpose of this study is to develop a more efficient order management process for a SME also that can be generalized for the others. This process development aims to strike an appropriate balance between measuring lost times and managing customer credit limits. In this study, after analyzing the pre-sales process of a focal SME, a framework is developed that is compatible with the current ERP system and can measure required metrics.
Keywords: sales order cycle; order to cash; MIS; management information systems; ERP
- Cost innovation in global supply chains: The case of Huawei Technologies
by Lars Bengtsson, Weihong Wang
Abstract: Cost innovation has been used to describe how firms offer a variety of customized and high-tech products at low prices. Insights into how this trade-off is overcome by supply chain design are lacking. This paper analyses the global supply chain strategies and practices of Huawei Technologies, and specifically how these contribute to cost innovation capability. The paper is based on interviews with managers at Huawei headquarters in Shenzhen, plus managers at two European supply chain centres. The case study shows that even though Huawei does not possess specifically unique supply chain solutions, there are some features that drive Huawei towards cost innovation in its supply chains. Some of them concern low-cost operations based on the location of main R&D, manufacturing and suppliers to China, in combination with a strong customer orientation, an integrated supply chain organisation and a balanced outsourcing strategy.
Keywords: cost innovation; Huawei; global; supply chain design; SCM; trade-off; low cost; integrated supply chain; outsourcing; telecom industry
- Three-Echelon Supply Chain with Centralized and De-Centralized Inventory Decisions under Linear Price Dependent Demand
by Burra Karuna Kumar, Dega Nagaraju, S Narayanan
Abstract: In the current global business environment, the competition is between the supply chains, but not among echelons of the chain. Hence, it is highly essential to bring down the cost of the supply chain rather than reducing the costs of individual echelons independently. This work focuses on modelling and optimization of a coordinated and non-coordinated three-echelon supply chain with the consideration of ordering/setup costs, transportation and carrying costs. The objective of the present work is to demonstrate the optimality of inventory replenishment decisions, shipment frequencies and the annual total relevant costs under linear price dependent demand. Numerical illustration is carried out to find out the optimal values of objective function and decision variables. Also, the parametric analysis is carried out to show the influence of model parameters.
Keywords: Supply chain; Linear price dependent demand; Total relevant cost; Replenishment decisions; Shipment frequency;
- Comparison of Single-Echelon vs. Multi-Echelon Inventory Systems Using Multi-Objective Stochastic Modeling
by Nadeera Ekanayake, Nilesh Joshi, Shital Thekdi
Abstract: Recent advancements in inventory management have identified need for investigating benefits of single-echelon and multi-echelon systems. Single-echelon inventory control problems focus on determining the appropriate level of inventory for an individual unit within the supply chain network, while multi-echelon inventory optimization takes a holistic approach by focusing on the correct levels of inventory across the entire network. This paper presents a stochastic modeling approach for multi-tier supply chains with multiple inventory items. The approach will be used to compare behavior of single-echelon vs. multi-echelon inventory systems. A multi-objective optimization method is used to optimize models behavior with two conflicting objectives: minimizing average inventory across the supply chain and maximizing overall fill rate. The results show that single-echelon systems result in higher inventory levels and lower fill rates, while multi-echelon systems result in lower inventory levels while maintaining higher fill rates for the entire supply chain network. The methods are demonstrated on a sample network database.
Keywords: Inventory Systems, Single-echelon, Multi-echelon, Distribution, Logistics, Optimization.
- SERVICE SUPPPLY CHAIN COORDINATION FACTORS: THE CASE OF SAUDI ARABIAN HOSPITALS
by Mario Alfredo Ferrer Vasquez, Anita Medhekar
Abstract: Service supply chain combines the management of information, processes, capacity, service performance and funds from the earliest supplier to the ultimate customer. This study explores the need for supply chain coordination required to deliver services for healthcare industry. Building on prior research, this study looks quantitatively at the interplay of service supply chain coordination factors (i.e. accessibility, affordability and awareness) and their influence on hospital performance. Hence, empirical research in an emerging economy such as the Kingdom of Saudi Arabia was selected to test the predictive relationship between service supply chain coordination factors and performance. The findings from this study show that from the three predictive relationships tested, performance of hospitals was challenged by the increasing lack of service awareness built in the industry.
Keywords: Supply chain coordination, service supply chain, Saudi Arabian healthcare industry.
- Fuzzy Analysis and Evaluation of Supply Chain Performance: A Focus on Leather Products in Tanzania
by Erick Massami
Abstract: In this study, a fuzzy comprehensive model is applied to evaluate the performance of supply chain for leather products in Tanzania. The evaluation procedure starts by identifying major criteria and sub-criteria that influence the supply chain performance of leather products. These criteria and sub-criteria are used by assessors to assign values that are used to generate each single factor evaluation set; which is used to compose the single factor evaluation matrix. The relative importance of each criterion in the weight set is obtained by Fuzzy Triangular Number (FTN) method. Eventually, the weight set of influential factors (i.e. criteria) is multiplied by the single factor evaluation matrix to compose the fuzzy based comprehensive evaluation. The computational results show that the performance of the leather products supply chain (LPSC) in Tanzania is poor. Thus, the findings call for all stakeholders in the Tanzanian leather industry to take appropriate measures that would boost the supply chain performance. Moreover, the proposed model can be used to evaluate vague objectives in other industries.
Keywords: Supply Chain Performance, Fuzzy Comprehensive Evaluation, Leather Products, Fuzzy Triangular Number, Weight Set.
- Lean manufacturing system for air cleaner assembly cell
by Vikas Verma, Kamal Mittal
Abstract: Lean Manufacturing System works in every part of the value stream by reducing waste in order to reduce lead time, cost, bring in more sales, and remain competitive in a growing global market. In the present work the use of Lean Manufacturing tools in plastic industries are addressed and particularly for air cleaner assembly cells. In order to identify opportunities for implementation of lean methods Value Stream Mapping is used as a tool. The current value stream map (CVSM) is developed by mapping all the information and material flow. All data for CVSM is collected including machine cycle time, change over time, and information flow data such as how often customer place orders. The map is studied and target areas for improvement are identified to reduce the waste.Procedures are developed for adapting the Lean manufacturing techniques such as, Cellular Manufacturing, Line Balancing helping in reducing the wastes.
Keywords: Takt Time, Cellular Manufacturing, Value Stream Mapping, Line Balancing, Air rnCleaner (a/c)rn
- The Mediation Role of Buyers Satisfaction in Relationship between Structural Capital with performance
by Mohsen Hooshangi, Safar Fazli, Saeed Mirhoseini
Abstract: The Purpose of this paper is performing an empirical investigation on the impact of structural capital (supplier evaluation, Supplier development, Information sharing, Network ties and Appropriability) on buyer satisfaction and the relationships between buyer satisfaction and buyer performance (cost, quality, delivery, flexibility and Innovation). The statistical population of this study is the buying managers of manufacturing companies in Qazvin province. 113 questionnaires with multiple choice questions were distributed among sample individuals. The partial least squares method and Smart-PLS software were used for analyzing the data in order to evaluate the relationship between variables and their impact on each other. Empirical results confirm that structural capital has positive impact on buyer satisfaction. Among the structural capital factors, the network ties, supplier evaluation and supplier development, have a significant impact on the buyer satisfaction while, appropriability and Information sharing dont have significant positive impact on the buyer satisfaction. Finally, the buyer satisfaction has a positive impact on the buyer performance. The result of this study leads supply chain managers to correct understanding of the impact of structural capital on buyer- supplier relationship in order to improve this relationship and performance.
Keywords: Buyerâ€™s satisfaction, Structural capital, Buyer-supplier relationship and performance
- Influence of Government and Economic Drivers on Consumers Intentions to Participate in a Take Back Program
by Siti Budijati, Subagyo , Muhammad Wibisono, Nur Masruroh
Abstract: Companies reverse logistics activity generally is triggered by government regulations and economic opportunities. In reverse logistics decision, consumers behaviour should be considered. This paper presented a study on the influence of government and economic drivers on consumers intentions to participate in a take back program, using structural equation modelling. A survey was conducted on 355 mobile phone users in Indonesia. The study found that the government drivers have more significant influence on consumers intentions than the economic drivers. It was also found that the government drivers served as a mediating variable between perceived environmental regulation and consumers intentions. Moreover, analysis of demographic data showed only the difference in income which significantly affects consumers intentions. These results can be used by the government as a reference to support the mobile phone take back program by applying a special regulation related to the program. In addition, the mobile phone companies can also use these results for implementing the take back program, to consider economic incentives for consumers who participate in the program. Thus, implementation of the mobile phone take back program provides benefits for both consumers and producers for reverse logistics application.
Keywords: reverse logistics; government drivers; economic drivers; consumersâ€™ intentions; take back program.
- Carbon Constrained Dual Sourcing Supplier Selection Problem: A Benders Decomposition Approach
by Krishnendu Shaw, Ravi Shankar, Surendra S. Yadav
Abstract: Carbon constrained supplier selection is relatively newer concept as compared to traditional supplier selection problem. Most of the decision makers face difficulty to select supplier in dual sourcing (global or local) scenarios, which generally have different cost and emission factors. As of now, very few supplier selection models have been proposed taking consideration dual sourcing and carbon footprint issues. This paper proposes a mixed integer based multi-product, dual (global & domestic) sourcing supplier selection model especially considering carbon emission, carbon cap, costs, tax, quality rejection, lead time, various duties and solved using Benders decomposition algorithm. The proposed model is illustrated through a case study and various sensitivity analyses are performed by varying carbon footprint of material, lead time, supplying capacity and minimum order size. Further, this paper helps managers to decide the amount of domestic as well as global sourcing percentages in a carbon constrained situation.
Keywords: Carbon constrained supplier selection; Carbon footprint; Global supplier selection; Dual sourcing; Green supply chain.
- The Impact of Ambidexterity in Supply Chain Capabilities on Manufacturing Performance: Examples from the Global Semiconductor Industry
by Nehemiah Scott
Abstract: As environmental complexity and economic turbulence continue to rise, an organizations ability to quickly and continually respond to changing market conditions is increasingly important and heavily reliant on those supply chain capabilities that enable the firm to communicate with their chain partners, streamline supply chain operations and quickly respond to unforeseen industry changes. This responsiveness means that firms must be able to simultaneously balance the conflicting tensions associated with managing existing and growth product markets in a timely fashion. Using the concept of ambidexterity, this conceptual study examines the impacts that a manufacturers ambidextrous supply chain technological capability has on its supply chain integration and ambidexterity in supply chain responsiveness, and ultimately on its performance. Propositions are given, with each one being accompanied by an example from the global semiconductor industry. Lastly, contributions, research limitations, and research and managerial implications are discussed.
Keywords: Ambidexterity; Exploration; Exploitation; Supply Chain Management; Technology; Supply Chain Integration; Supply Chain Responsiveness
- Linking Grave to Cradle: The Next Big Reverse Logistics Business
by Muthu Krishna Vasudevan, Gyan Prakash
Abstract: The paper explores contemporary reverse logistics structure with possibilities of societal driven sustainability impacts. Extending the existing research limits, the paper promotes Reverse Logistics as one of the most innovative fields of Operations and Supply Chain Management. It traces the capacities of reverse logistics to set trends of logical frameworks to process rejected/returned goods for monetary and morale advantages. When life of a product is challenged by updates with every sunrise, it is very important to sort out flexible management aspects to recover, reuse and recycle along diversified sectors in managing returned product acquisitions and customer experiences. The paper uses a collective qualitative analysis of reverse logistics ideas to identify and work with challenges, strategies and key drivers of reengineering and reverse operations. RL as a master subject of sustainability is studied for futuristic closed loop operations. RL is studied for industrial expectations placed along with limitations analysed to meet with new sets of discussions, proposals, promotions and disseminations pushing towards sustainable greener industrial responsibility.
Keywords: sustainable operations management; reverse logistics; life-ended products management; closed loop supply chains; green technologies; social innovations;
- A closed loop supply chain game between a supplier and a manufacturer in a two stage scenario
by Rabindranath Bhattacharya
Abstract: Tier-I supplier after collection transfers a portion of external return to their supplier in a reverse supply chain in this paper. Supplier derives benefit out of refurbishing of returns. Three scenarios centralized, decentralized and cooperative - decentralised were considered for a two-stage model. Non-linear unconstrained maximizing profitability equations, with normally distributed acquisition prices and deterministic demand were formulated. Solving these for first two models indicated the extent of drop in profit of a decentralized model compared to centralized model. Analysis of cooperative model, based on the results achieved, helps find optimal bounds of transfer and acquisition prices. If both members operate within zone of cooperation, each member earns more profit compared to that in decentralized scenario and overall profit equals centralized one. Study highlights on the decision regarding acquisition price charged by manufacturer for return and transfer price charged by supplier for new product. Decision can be viewed as a contract to arrive at a win-win situation.
Keywords: Closed loop supply chain; transfer price; acquisition price; non-linear optimization; graded return, normal distribution; cooperation zone.
- GREEN SUPPLY CHAIN PERFORMANCE MEASUREMENT: AN EXPLORATORY STUDY
by Hemantkumar P. Bulsara, M. N. Qureshi, Hiren Patel
Abstract: The existing performance measurement tool set for green operations is growing, but may not yet be adequate to assess GSCM in full. The various tools, from the existing literature include tools like the analytical hierarchy process (AHP), activity based costing (ABC), balanced scorecard (BSC) and life cycle analysis (LCA). In keeping the view of having systematic literature, well reputed science cited journals were referred with key word of performance measurement, green supply chain, supply chain performance measurement and green supply chain performance measurement. The search produced 1432 results with either of the above search word. Out of which 112 research papers, proceedings are shortlisted based on their significance for the study and no. of citations. The classification of existing literature follows three tier classification methods termed as classification based on scope, methodology and focus. The present research also includes managerial implications. However, the existing performance measurement tool set for environmental operations lacks adequacy to fully assess GSC from all respect (Yan Li, 2011). A severe need is identified for a single tool for GSCPM that can be used for planning, execution, assessment, and management. The study identifies only a limited set of variables and categorized them in factors such as Operational, Economic and Environmental within both the context. The study does not investigate various other forms of search for new practices such as service innovation.
Keywords: Green Supply Chain, Green Supply Chain Performance Measurement, Supply Chain Performance Measurement
- Using qualitative interviewing to examine human factors in warehouse order picking: technical note
by Eric Grosse, Shane Dixon, W. Neumann, Christoph Glock
Abstract: The effect of human factors on the performance of labor-intensive order picking processes has thus far been relatively understudied in the operations and logistics management literature. This technical note offers guidance to researchers and managers regarding how qualitative methods can be used to assess human factors in order picking. The paper first discusses manual tasks in this process and highlights where human factors influence the outcomes of time, quality and worker health. This discussion is used to inform the development of a qualitative example interview guide to investigate the order picking system. The paper provides step-by-step guidance for using interviewing to assist researchers and logistics managers that emphasizes considering human factors in the planning of order picking processes. Using qualitative methods to integrate human factors into order picking processes can help to avoid workers exposure to musculoskeletal disorders and improve the quality and efficiency of order picking systems.
Keywords: qualitative research; semi-structured interview; ergonomics; order picking
- The Impact of Internal and External Collaboration on the Performance of Supply Chain Risk Management
by Francois Duhamel, Valentina Carbone, Valerie Moatti
Abstract: In this article, we show the complementary roles that internal and external collaboration play in enhancing the performance of risk management processes in business firms. We also specify the importance of internal and external collaboration for each of the four dimensions of risk management: identification, assessment, mitigation and monitoring. On the basis of the results of an empirical study testing hypothesis on a worldwide sample of 242 firms of different sizes thanks to regression analyses. Finally, we discuss these results, indicate a series of managerial implications and propose future research orientations.
Keywords: supply chain risk management; internal and external collaboration.
- THE INFLUENCE OF LOGISTICS BARRIERS ON LEAD TIMES AND SERVICE LEVELS IN SLOVENIA
by Gorazd Justinek, Tina Cvahte, Darja Topolsek
Abstract: In every sphere of business, companies are faced with mounting challenges. For many this means a shift towards export activities in order to increase their profit base and ensure the distribution of market risk to various environments. In this process, it is crucial that companies are aware of the barriers they can expect to face. As customer satisfaction is imperative in gaining and retaining new customers or markets, the management of these different barriers is crucial in order to ensure that operations run smoothly, lead times are optimised and service levels maximised, and should be a priority for any business attempting to penetrate new markets.
The main research question in this paper deals with how logistics barriers influence logistics lead times, service levels and, as a consequence, trust among partners in a widespread supply chain. Slovenia was selected as the case country due to its relatively small size, as a result of which many Slovenian companies are forced to expand their business beyond Slovenia's borders. In total, 160 companies were surveyed to identify the logistics barriers they encounter during the course of their operations. The survey results were statistically analysed to explore the influence of logistics barriers (supply, process and demand risks) on logistics lead times and service levels. Moreover, a simulation of a simple supply chain with input parameters derived from the statistical analysis was performed in order to further confirm the findings from the survey analysis.
The main finding of this paper is that in order for there to be effective risk management with regard to logistics barriers, it is crucial that the lead time gap is closed by reducing logistics lead times and extending customers order cycles, which can be achieved by more effectively forecasting demand and identifying the logistics barriers that affect the total order time. This was shown to be especially problematic for smaller and medium companies, which are unable to influence their supply chains effectively or to a sufficient extent.
Keywords: logistics barriers, logistics lead time, international busieness, supply risk, process risk, demand risk
- Optimistic and Pessimistic Performance and Congestion Analysis in Fuzzy Data Envelopment Analysis
by Madjid Tavana
Abstract: The notion of input congestion in Data Envelopment Analysis (DEA) is analogous to the law of diminishing returns in the classical economic theory of production which states that if a single input is increased while other inputs are held constant, the marginal product of the variable input diminishes. Congestion has been an under-researched topic in economic theory especially when there is a need for augmenting inputs to serve important objectives besides output maximization. We propose a fuzzy DEA model and represent the imprecise and ambiguous input and output data with fuzzy numbers. We solve the model with an α-cut approach and obtain the value of input congestion for the optimistic and pessimistic cases. The fundamental idea in this paper is to transform the fuzzy DEA model into a crisp linear programming model using the α-cut approach. Two auxiliary crisp models are solved to obtain optimistic and pessimistic values of congestion for evaluating the Decision making Units (DMUs). We use a numerical example from the literature to demonstrate the applicability of the proposed method and exhibit the efficacy of the procedures and algorithms.
Keywords: Data envelopment analysis; Fuzzy inputs and outputs; α-cut approach; Optimistic and pessimistic congestion; Grey system theory.
- SOCIALLY SUSTAINABILE BUSINESS PRACTICES IN INDIAN MANUFACTURING INDUSTRIES: A STUDY OF TWO COMPANIES
by Mani V., Rajat Agrawal, Vinay Sharma
Abstract: This paper investigates the social sustainability of the supply chain of the Indian manufacturing industry. For the purpose, it examines the socially sustainable business practices adopted by two Indian manufacturing companies from two different sectors cement and pharmaceuticals. The reason for the choice of companies from these two sectors is their wide divergence as well as economic importance. The study explores various activities under different social dimensions across the supply chain, paying particular attention to the drivers of such business practices as well as the lessons that can be learned from them. The comparative case study method has been used to explore the similarities and differences in the socially sustainable practices adopted by the two companies. To begin with, various social sustainability dimensions have been identified from the literature on the subject. Next, the socially sustainable practices of the two companies have been identified and compared, revealing both similarities and differences in the practices of the two companies that lead them to social sustainability. In the process emerge several important social dimensions related to the Indian manufacturing industry. The study attempts to fill the gap in the social sustainability studies of the Indian manufacturing industry by identifying the social dimensions related to the supply chain. It is expected to help the supply chain managers as well as the policy makers in understanding various sustainability practices in the supply chain, by providing crucial insights for decision making related to sustainability.
Keywords: social sustainability; sustainability practices; social dimensions; comparative case study; social sustainability in the supply chain.
- A two-warehouse inventory model for deteriorating items under permissible delay in payment via particle swarm optimization
by Asoke Kumar Bhunia, Ali Akbar Shaikh, Laxminarayan Sahoo
Abstract: The objective of this paper is to develop a two-warehouse inventory model for single deteriorating item considering allowable delay in payment with two separate warehouses (one is OW, the owned warehouse and other is RW, the rented warehouse) having different preserving facilities. Shortages, if any, are allowed and partially backlogged with a rate dependent on the duration of waiting time up to the arrival of next lot. To develop this model, two different policies (Inventory follows shortage (IFS) and Shortage follows inventory (SFI)) have been considered. The corresponding problems have been formulated as non-linear constrained optimization problems and solved by different versions of quantum behaved particle swarm optimization algorithms. Then, to illustrate and validate the model, four numerical examples have been considered and solved. Finally, to study the effect of changes of different parameters, sensitivity analyses have been carried out by changing one parameter at a time and keeping the others at their original values.
Keywords: Inventory, two warehouse, deterioration, time dependent demand, permissible delay in payment, partially backlogged shortage, particle swarm optimization
- Capacitated Supply Chain: An Optimization Model
by Doraid Dalalah
Abstract: An optimization model is introduced along with the solution algorithm for the supply chain problem where the manufacturers make and deliver different products to the retailers through a Logistic Service Provider (LSP). The supply chain understudy consists of sets of manufacturers, distribution centers and retailers where the LSP takes the role of shipping the products via different hubs of distribution centers. The models objective is to maximize the manufacturers total revenues subject to the LSP capacities. The solution algorithm depends on the lead time as a major drive to optimize the manufacturing rates. In addition to the fact that the model is responsive to dynamics changes in the supply chain topology and transportation capacities, it can admit new manufacturers and retailers. It also helps in spotting the unnecessary distribution centers within the chain, which can be eliminated for shorter lead times. To demonstrate the merits of the present model, numerical analysis and simulation experiments of different supply chain topologies are presented. The results demonstrate the capability of the model to maximize the manufactures revenues in a decentralized manner. Moreover, the solution algorithm could present interesting adaptability to supply chain changes such as the number of manufacturers and retailers involved as well as different demand levels. The model can be of great importance to fast response supply chain environment in which lead times and demands are easily conveyed to the manufacturers such as food, beverages, pharmaceutical drugs, chemicals, and many other perishable items.
Keywords: Logistic Service Provider; Supply Chains; Manufacturers; Distribution center; Retailers; Non-Linear Optimization.
- A Fuzzy Analytical Hierarchy Process approach for prioritising the buyers in selling by-product of a Sugar Plant
by Rajkumar A, Malliga P
Abstract: World sugar market is not healthier because of higher production cost and lower selling price of sugar. Efforts have been taken to elucidate this while remedies include improving the revenues of sugar plant from selling of sugarcane by-products like molasses. Buyer selection and prioritisation is very complex since it involves quantitative and qualitative multi-criterion. In most of the real time problems, some of the decisions can be exactly assessed while others cannot. Essentially, the uncertainty in the preference judgements gives rise to uncertainty in ranking of alternatives in selecting the appropriate buyer. In this paper, a Fuzzy Analytical Hierarchy Process (FAHP) based buyer selection model has been formulated and implemented in a sugar plant in Tamilnadu, India. The fuzziness of the decision maker for dealing with complex decisions involving multiple criteria in systems of many levels is considered here. The main and sub-criteria influencing the buyer selection are identified for structuring the FAHP model and finally the buyers were prioritised. The results exhibit the prioritised buyer and other alternatives.
Keywords: Fuzzy Analytical Hierarchy Process; Sugar Plant; Criteria and Buyer Selection.
- A Lagrangian relaxation approach for the integrated quay crane and internal truck assignment in container terminals
by Ahmed Mostafa, A. B. Eltawil
Abstract: The planning decisions related to the assignment of quay cranes and internal trucks to the berthed vessels in container terminals are typically made independently. However, a more reliable estimation for the vessels handling times as well as the truck requirements can be achieved when such planning decisions are made simultaneously. This paper presents a mathematical model that can be used to solve the quay crane assignment problem, the specific quay crane assignment problem and the assignment of internal trucks to each quay crane simultaneously. The proposed model considers important practical aspects such as the limited availability and operation cost of the internal trucks. A Lagrangian relaxation, and subgradient optimization procedure based heuristic is proposed for the model. The performance of the proposed heuristic algorithm is investigated using actual container terminal data.
Keywords: quay cranes, internal trucks, container terminal, Lagrangian relaxation
- Technological innovation in the logistics of ethanol and a new systemic model of innovation in logistics
by Paulo Nascimento
Abstract: The purpose of this paper is to model the contribution of technological change in the innovation in logistics services. The approach chosen was four case studies in the supply of ethanol. The result shows that incremental technological innovations have contributed significantly to logistics innovation, not only in information technology, which the literature well reports, but also in storage, transshipment and transport, on which almost silent. Furthermore, the technology is often adopted from outside the organization and tailored to its needs, not restricted to be an organizational factor. The cases also suggest that, even being incremental, the adopted technological innovation, innovation in logistics has a systemic character, overcoming the dichotomy incremental versus radical. This paper concludes incorporating these findings in a new model of innovation in logistic.
Keywords: logistical services, systemic innovation, logistical fluids, technological innovation and logistics
- Multi-Objective Design of Multi-Modal Fresh Food Distribution Networks
by Marco Bortolini, Maurizio Faccio, Mauro Gamberi, Francesco Pilati
Abstract: This paper presents a methodology to jointly minimize the operating cost, the carbon footprint and the delivery time in the design of multi-modal fresh food distribution networks. A tri-objective linear programming model optimizes such criteria overcoming the widely adopted methodologies focused on the network cost minimization, only. A practical selection rule supports the final network structure definition, leading to an effective trade-off among the three objective functions. The market demand supply, the producer capacity limits and the food quality decrease during shipment, i.e. perishability, limit the feasibility region.
The paper applies the proposed model to an industrial case study dealing with the distribution of fruits and vegetables from a set of Italian producers to multiple European retailers through a multi-modal (truck, train and air) distribution network. The case study key results suggest the possibility to reduce the CO2 emissions without relevant cost increase.
Keywords: distribution network, multi-objective optimization, multi-modal shipment, fresh food, supply chain, perishability, carbon footprint, CO2 emissions, sustainability, operating cost, delivery time.
- Fuzzy Performance Measurement for Supply Chain Management: in Malaysian Rubber Glove Manufacturer
by Hamidreza Panjehfouladgaran, Rosnah Yusuff
Abstract: Companies are trying to increase their market share due to globalization in recent years.Various types of products and customers faced different challenges for companies to achieve market share. Hence, to accomplish this goal, successful companies have to concentrate on the efficiency and effectiveness of their activities. Supply chain involves all activities thatfulfillcustomersâ€™ demands and transfer materials through downstream into upstream of chain. Since, supply chain creates value for customers and companies simultaneously, monitoring supply chain activities is essential. Numerous performance measurement systems and framework in supply chain have been developed in recent years.This paper discusses on the development of a framework for measuring qualitative metrics in supply chain. Qualitative metrics in supply chain management were identified and then experts selected the most common metrics between them. Fuzzy logic controller was applied to translate verbal expression into numerical variables. Finally, framework was programmed inthe MATLABÂ® software for easy utilization andevaluation of the qualitative performances in supply chain.
Keywords: Performance measurement, performance measurement system, Supply chain performance measurement, Fuzzy logic controller, qualitative metrics
- Development of New Methods for measuring Forecast Error
by Allan Valsaraj Mathai, Narayanan S, Dhakshayani Ekambaram
Abstract: Forecast accuracy in supply chain is typically measured using the mean absolute percentage error. This however fails when it comes to measuring the accuracy of forecasts of products having intermittent demand. Mean absolute scaled error is a measure of forecast accuracy that works well for intermittent demand and can also be used to compare forecast accuracy between series. In this work, two new methods have been formulated for measuring the accuracy of forecasts with intermittent demand by modifying the MAPE and the SMAPE methods. The denominator of the formula used in the MAPE method will be modified in a way so that it can accommodate for the cases when the demand is zero. In this work, the two new methods have been tested with other methods of measuring forecast accuracy such as Mean Average Deviation (MAD), Mean Average Percentage Error (MAPE), Mean Absolute Scaled Error (MASE), Mean Squared Error (MSE) and Symmetric Mean Average Percentage Error (SMAPE) for data sets of ten products. After performing extensive calculations using data sets from ten products it has been found that the modified SMAPE method performed at par with the MASE method and may be effectively used for measuring the accuracy of forecast of the sales of the various industries with products having intermittent demand.
Keywords: Intermittent demand, forecast error, error accuracy, Mean Absolute Percentage Error, Mean Absolute Scaled Error.
- Performance study of artificial neural network modeling to predict carried weight in the transportation system
by Saeid Jafarzadeh-Ghoushchi, Mohd Nizam Ab Rahman
Abstract: The major aim of this study was to model and predict the amount of carried weight based on the five direct impact factors in the transportation system, i.e. number of van, lorry, truck, labour and fuel consumption. In this study, artificial neural network (ANN) as a multilayer perceptron (MLP), feed-forward neural network was incorporated for developing a predictive model. Three different training algorithms, belonging to two classes, namely Levenberg-Marquardt (LM) and gradient descent (batch backpropagation-BBP, quick propagation- QP), were used to train ANN with a single hidden layer of five nodes. The input parameters of the model are aforementioned five transportation factors plus two timing factors namely number of weeks and seasons while the carried weights is the output. The next purpose of this study was comparing of the mentioned learning algorithmÂ´s performance based on predicting ability with employing standard statistical indices. The results showed that the QP algorithm with 7â€“4â€“1 network topology exhibited the highest predictive power with its highest coefficient of determination (R2) value and lowest root-mean-square error (RMSE). The available data of five transportation factors were trained by selected model in ANN (QP-7â€“4â€“1) and the responses (carried weights) were predicted. Afterwards, the predicted values were validated against the actual values and a good agreement (89.62%) was found. Moreover, the truck factor played slightly more dominant role in prediction of carried weighs.
Keywords: Artificial Neural Network; Transportation system; Batch back propagation; Quick propagation; Levenberg-Marquardt (LM)
- Joint replenishment problem for multi-echelon system with planned shortage
by Bassem Roushdy, Nahed Sobhy, Abdelrhim Abdelhamid, Ahmed Mahmoud
Abstract: An inventory system with one warehouse and one retailer is proposed, planned shortage inventory amounts are allowed at both the retailer and the warehouse. During the ordering process, a major order cost for the lot is incurred at each location and a minor order cost is added for each item in the lot. Demand occurs only at the retailer with a constant deterministic rate. Two policies are considered for this problem; first, the centralised non-cooperative policy where a centralised decision making process is done on warehouse and retailer together to optimise their costs; second, the centralised cooperative policy wherein addition to the centralised decision process, the items at the retailer and the warehouse are replenished jointly to gain the advantage of reducing the major order cost. In the first policy, the objectives here are to evaluate the optimum order interval for each item (i), while in the second policy the objectives are to determine the common order interval, the associated multiple integers and that determines the time of order for each item, and the optimum inventory planned shortage amounts, for each item at each location, which minimise the total inventory cost for the echelon system.
Keywords: joint replenishment problem; JRP; multi-echelon inventory; planned shortage.
- Application of an integrated MCDM approach in selecting outsourcing strategies in hotel industry
by Sumit Sakhuja, Vipul Jain, Fikri Dweiri
Abstract: Outsourcing is a strategic decision that hotels need to take in order to reduce operating costs and improve competitiveness, but it remains important for them to scientifically select the appropriate outsourcing strategies. The aim of the study is to propose an integrated fuzzy multi-criteria decision making approach to come up with best outsourcing strategies. This approach evaluates the importance of various factors which motivates hotels to go for outsourcing services. In the present study a combination of fuzzy AHP and fuzzy TOPSIS is used to build up an approach that results in finding out weights to different motivating factors for outsourcing using fuzzy AHP. This is further extended with fuzzy TOPSIS to rank different services that can be outsourced and thus prioritising them.
Keywords: hotels; multicriteria decision making; MCDM; fuzzy AHP; FAHP; analytical hierarchy process; fuzzy TOPSIS; outsourcing strategies; hotel industry.
- Analysis of operations of port using mathematical and simulation modelling
by Suchithra Rajendran, Sharan Srinivas, Chanchal Saha
Abstract: This paper proposes an integer linear programming (ILP) and discrete event simulation (DES) models for minimising the waiting time of ships at Port of X (PoX). The port consists of three docks that accommodate different types of ships. Each dock is facilitated with a fixed number of berths that allow ships to be anchored, and there is a common access channel through which a ship enters or leaves the docks. The objective of this paper is to minimise the waiting time of ships while entering and leaving the port. First, an ILP model is developed to schedule the ships at the port and the effect of ship waiting time is observed. Due to the computational complexity of the ILP model, a DES model is developed. The experimental results indicate that capacity relocation of berths reduced the waiting time of ships by 77% compared to the current scenario.
Keywords: ports; berths; docks; ships; ship scheduling; integer linear programming; ILP; discrete event simulation; DES; ship waiting times; ship prioritisation; capacity relocation; port operations; mathematical modelling; docking.
- Reverse supply chain management in consumer electronics: an Indian perspective
by Debadyuti Das, Rohit Chaudhari
Abstract: The present paper is an attempt to find out the strategic motive of an organisation to undertake reverse supply chain management (RSCM) activities with specific reference to consumer electronics industry in the Indian context. It has identified the facilitating factors as also the inhibiting factors faced by an organisation in pursuing RSCM activities by carrying out questionnaire survey amongst retailers and service providers doing repairing, refurbishing and remanufacturing of consumer electronic goods. This study has attempted to categorise the returned goods in terms of recency, usability and residual value and has tried to find out the percentage figures of individual element within each category of recency, usability and residual value. It has further analysed different return streams in terms of volume and residual value and revealed as to which return stream/s contribute most to the organisations. Finally, this study has analysed each element of RSCM activities in terms of time taken and cost incurred and identified the major activities consuming maximum amount of time and cost.
Keywords: RSCM; recency; usability; residual value; return streams; elemental time; elemental cost; India; reverse SCM; supply chain management; consumer electronics; end-of-life products; EOL products; returned products.
- Reliable forward-reverse logistics network design under partial and complete facility disruptions
by Seyed Morteza Hatefi, Fariborz Jolai
Abstract: Although disruption risks may occur with a low probability in a supply chain network, they have negative financial impacts and also the recovery process from their destructive effects is very slow. This paper proposes a reliability model for an integrated forward-reverse logistics network design, which can cope with both partial and complete facility disruptions. The reliability model is formulated as a stochastic robust programming whose objective function is to minimise the fixed opening costs of facilities and the expected cost of disruption scenarios, including processing costs, transportation costs, and penalty costs for non-satisfied demands. For doing so, a recent robust optimisation approach is modified to protect the concerned network against partial and complete capacity disruptions. Furthermore, a stochastic programming is employed to account for all interested scenarios. Three numerical experiments are designed to study the effect of capacity disruptions on the concerned logistic network. Finally, the results of the proposed model are compared with the conventional robust optimisation models.
Keywords: forward-reverse logistics networks; network design; robust optimisation; stochastic programming; disruption risks; reliability modelling; facility disruptions; supply chain networks; supply chain management; SCM; processing costs; transport costs; penalty costs.
- An integrated model for robot selection in robotic cells under uncertain situations
by Rodrigo Merino, Ahmad Sarfaraz, Kouroush Jenab, Alireza Kabirian
Abstract: Robots have become an extremely important part of society today; therefore, optimal selection of a robot is more important than ever. Companies, decision-makers and experts have experimented with several methodologies for selecting the proper robot to meet their needs and make an overall good business decision. This paper applies fuzzy AHP with QFD to compensate for the vagueness and imprecision of the data to provide the best ranking and customer needs for the weights given for the options to make an optimal selection for a robot. The case study discusses how this is an important aspect of a production environment and how it can provide great benefits with proper implementation.
Keywords: fuzzy AHP; FAHP; analytical hierarchy process; QFD; quality function deployment; production environments; robot selection; integrated modelling; robotic cells; uncertainty; fuzzy logic; robot ranking; customer needs; industrial robots.
- Developing a new model for dynamic vendor managed inventory with considering time value of money
by Behrooz Pourghannnad, Abolfazl Kazemi, Narges Shahraki, Payam Chiniforooshan, Mahdi Azizmohammadi
Abstract: This paper investigates a new dynamic two-echelon single-vendor multiple-buyer supply chain model under vendor managed inventory assumptions, which named dynamic vendor managed inventory, named DVMI, model. The DVMI model is formulated in order to find out the optimal sales quantity for each buyer at each period by maximising the profit of supply chain. All parameters are considered deterministic and delays in the payments are permissible. In addition, the relationship between sales quantity and sales price is assumed to be linearly. Implementation of proposed DVMI model is analysed with a case study that carried out at an Iranian dairy products company. The DVMI model is solved by using both LINGO and MATLAB genetic algorithm and direct search toolbox. Furthermore, sensitivity of model respect to the number of selected buyers in each period parameter is analysed.
Keywords: payment delays; dynamic VMI; vendor managed inventory; DVMI; net present value; NPV; supply chain management; SCM; dynamic modelling; two-echelon supply chains; profit maximisation; Iran; dairy products; genetic algorithms.
- Multiple criteria supplier selection: a fuzzy approach
by Md. Mahmudul Hasan, Md. Abu Sayeed Shohag, Abdullahil Azeem, Sanjoy Kumar Paul
Abstract: A company must purchase a lot of diverse components and raw materials from different upstream suppliers to manufacture or assemble its products. However, it is not only a very complicated and perplexing task to select outstanding suppliers for decision-makers of strategic purchasing, but also it involves uncertainty and produces erroneous results while considering single criteria. For this reason, the decision-makers of strategic purchasing greatly require an efficient, valid and fair tool to assist them in selecting appropriate suppliers forthwith. This paper proposes a supplier selection model for any kind of company by using MATLAB fuzzy logic toolbox to help the purchasing department in selecting the most appropriate supplier. The main task in the proposed model involves determining the numerical score for different suppliers considering their respective performance in various qualitative and quantitative evaluation criteria and then selecting the best supplier having highest score. Fuzzy control is used to determine the best supplier by calculating the score in selected evaluation criteria which are provided in numerical values for the convenience of calculation.
Keywords: fuzzy logic; uncertainty; multiple criteria supplier selection; supply chain.
- Relationships between supply chain capabilities, competitive advantage and business performance: an exploratory study of the food industry in Thailand
by Navee Chiadamrong, Pithachaya Sophonsaritsook
Abstract: Thailand is one of the largest producers and exporters of agricultural and food products, and the food industry is also an important major section for Thailand's economy. While the food industry can generate a high income for the country, its supply chain still contains some problems among different parties. There are a lot of factors that could affect the performance of the food industry's chain. It is difficult to choose one success factor to be improved since improving one factor could lead to a positive or even a negative impact on another factor. The purpose of this study is to explore the degree of relationships between supply chain capabilities and competitive advantages towards business performance. The data were drawn from 236 food manufacturing companies in Thailand and the measurement scales were tested and validated using structural equation modelling (SEM). The findings provide appropriate supply chain strategies for successful linkage implementation so that management will be able to pursue better supply chain strategic applications directly in their business environment. The proposed model will also provide the causal-effect determinants affecting supply chain performance, to enhance supply chain strategies to meet supply chain goals, and to guide decision makers with pertinent information to implement such strategies.
Keywords: supply chain capabilities; competitive advantage; business performance; food industry; Thailand.
- Integration of design for reverse logistics and harvesting of information: a research agenda
by M. Reza Hosseini, Nicholas Chileshe, Raufdeen Rameezdeen, Steffen Lehmann
Abstract: The literature is replete with treatises advocating the immense benefits of reverse logistics (RL) systems for organisations in terms of alleviating environmental concerns and enhancing the level of productivity. Nevertheless, implementing RL in organisations is fraught with complications with its success largely riding on fulfilling the requirements prescribed by the critical success factors (CSFs) of RL. Despite the voluminous body of knowledge on RL in the extant literature, operational aspects of RL have overshadowed some central strategic prerequisites for the success of RL systems. Drawing upon an integrative literature review, this paper provides an insight into different aspects of the implementation of RL practices. The central role of the integration of design for reverse logistics (DfRL) and harvesting of information (HoI) in the effective implementation of RL systems is then established and clarified through developing a conceptual framework. The paper concludes by putting forward an agenda for research.
Keywords: reverse logistics; RL; design integration; information harvesting; knowledge management; supply chain.
- Service spare parts versus production parts: a centralised or decentralised warehouse?
by Maurizio Faccio
Abstract: The management of service spare parts has been a challenging problem for decades. Considering the case in which components are used for both production and spare parts, there are two basic strategies in inventory management: 1) warehouse centralisation, in which production parts and spare parts are stored together in the same warehouse; 2) warehouse decentralisation, in which production parts and spare parts are stored in two different warehouses. Each of these two strategies presents benefits and drawbacks. In the real industrial environment it is possible to find both these strategies. On the other hand, the definition of the warehouse centralisation/decentralisation strategy seems to be related more to following some rules of thumb than to following a structured decision-making process. The aim of this paper is first to define a set of influencing factors driving the decision. Secondly, starting from wide experimental data derived from Italian companies, it provides a rapid and easy heuristic procedure for practitioners based on a decision tree approach to the correct definition of the service spare parts warehouse centralisation/decentralisation strategy.
Keywords: production parts; warehouse; centralisation; decentralisation; spare parts.
- Lean practices in machinery manufacturing industries - a case study
by P.G. Saleeshya, A. Sneha, C. Karthikeyan, C. Sreenu, A.K. Rohith
Abstract: Lean manufacturing is an emerging concept in the Indian manufacturing scenario. Many small and medium scale enterprises in the country are aiming at becoming lean and thereby improving their productivity. This paper is an outcome of a case study in one such enterprise that deals with the manufacturing and assembly of offset printing machinery in India. Being a vendor-based organisation, part shortage due to delays in the process was a major problem faced. A thorough analysis of the various vendors and processes that the product goes through was done and the process flow was mapped to obtain a clear picture of the entire system, and software modelling helped arrive at quantitative results. Lean tools like Pareto analysis, five-why analysis, source inspection, etc., were used to identify and eliminate the various factors that led to delay. Proper scheduling of jobs is also essential to reduce waiting time, and therefore an algorithm has been developed to help arrive at an optimum scheduling sequence. The results from this case study have proved successful in reducing the lead time of the component under study.
Keywords: lean manufacturing; LM; value stream mapping; VSM; lead time; genetic algorithm; supply chain agility; logistics.