International Journal of Logistics Systems and Management (83 papers in press)
- 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 Marjan Sternad, Tina Cvahte, Darja Topolsek, Gorazd Justinek
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 Mohamad Khodabakhshi, Madjid Tavana, Fatemeh Baghbani Abootaleb
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 thatfulfillcustomers demands and transfer materials through downstream into upstream of chain. Since, supply chain creates value for customers and companies simultaneously, monitoring supply chain activities is essential. Numerous performance measurement systems and framework in supply chain have been developed in recent years.This paper discusses on the development of a framework for measuring qualitative metrics in supply chain. Qualitative metrics in supply chain management were identified and then experts selected the most common metrics between them. Fuzzy logic controller was applied to translate verbal expression into numerical variables. Finally, framework was programmed inthe MATLAB
Keywords: Performance measurement, performance measurement system, Supply chain performance measurement, Fuzzy logic controller, qualitative metrics
- Development of New Methods for measuring Forecast Error
by Allan Valsaraj Mathai, S Narayanan, Dhakshayani Ekambaram
Abstract: Forecast accuracy in supply chain is typically measured using the mean absolute percentage error. This however fails when it comes to measuring the accuracy of forecasts of products having intermittent demand. Mean absolute scaled error is a measure of forecast accuracy that works well for intermittent demand and can also be used to compare forecast accuracy between series. In this work, two new methods have been formulated for measuring the accuracy of forecasts with intermittent demand by modifying the MAPE and the SMAPE methods. The denominator of the formula used in the MAPE method will be modified in a way so that it can accommodate for the cases when the demand is zero. In this work, the two new methods have been tested with other methods of measuring forecast accuracy such as Mean Average Deviation (MAD), Mean Average Percentage Error (MAPE), Mean Absolute Scaled Error (MASE), Mean Squared Error (MSE) and Symmetric Mean Average Percentage Error (SMAPE) for data sets of ten products. After performing extensive calculations using data sets from ten products it has been found that the modified SMAPE method performed at par with the MASE method and may be effectively used for measuring the accuracy of forecast of the sales of the various industries with products having intermittent demand.
Keywords: Intermittent demand, forecast error, error accuracy, Mean Absolute Percentage Error, Mean Absolute Scaled Error.
- Performance study of artificial neural network modeling to predict carried weight in the transportation system
by Saeid Jafarzadeh-Ghoushchi, Mohd Nizam Ab Rahman
Abstract: The major aim of this study was to model and predict the amount of carried weight based on the five direct impact factors in the transportation system, i.e. number of van, lorry, truck, labour and fuel consumption. In this study, artificial neural network (ANN) as a multilayer perceptron (MLP), feed-forward neural network was incorporated for developing a predictive model. Three different training algorithms, belonging to two classes, namely Levenberg-Marquardt (LM) and gradient descent (batch backpropagation-BBP, quick propagation- QP), were used to train ANN with a single hidden layer of five nodes. The input parameters of the model are aforementioned five transportation factors plus two timing factors namely number of weeks and seasons while the carried weights is the output. The next purpose of this study was comparing of the mentioned learning algorithm
Keywords: Artificial Neural Network; Transportation system; Batch back propagation; Quick propagation; Levenberg-Marquardt (LM)
- Deterministic, Stochastic and Local Search Algorithms for Real-world ATSP Instances
by Pisut Pongchairerks, Jutathip Putponpai
Abstract: To solve real-world asymmetric travelling salesman problem instances, this paper develops multiple deterministic, stochastic and local search algorithms which construct their solutions based on the information of the adjacent cities, the border cities, the boundaries of the country, and the directions on map. The neighbourhood structures of the proposed local search algorithms are very efficient and contain only small numbers of solutions. All proposed algorithms are simple and very fast.
Keywords: asymmetric travelling salesman problem; ATSP; algorithm; neighbourhood structure.
- A fuzzy DEMATEL Based Approach for Evaluation of Risks in Green Initiatives in Supply Chain
by Sachin Mangla, Pradeep Kumar, Mukesh Barua
Abstract: The implementation of green/Green Supply Chain (GSC) initiatives is relatively difficult for the point of view of industries due to involvement of different risks. Decision evaluation and assessment of these risks can help industries to formulate strategies and suggest appropriate measures for managing the GSC effectively. For this motive, this paper recognizes the eight evaluation GSC risks with two main dimensions based on relevant literature and ten industrial experts inputs at an Indian plastic manufacturer. The current research proposes to use a fuzzy Decision Making Trial and Evaluation Laboratory (DEMATEL) methodology for analyzing the causal relations among the risks. The used fuzzy DEMATEL approach is useful in dealing with human bias and ambiguity involved in studying the interrelationship between the evaluated risks. Research findings indicate that Operational risks and Supply risks have the top significant influences in adopting and implementing effective GSC initiatives in business. Implications for managers and conclusions are discussed in the end.
Keywords: Causal effect; DEMATEL; Ecological-economic performance; Fuzzy set theory; Green initiatives; Risk; Sustainable business development
- The Effects of Legal-Political Factors and Market Competition on Supply Chain Performance: Some Findings from Firms in a Free Trade Zone
by Yudi Fernando, Agustina Fitrianingrum, Christopher Richardson
Abstract: This paper investigates the effects of legal-political factors and market competition on supply chain performance. The data were collected from firms in the electrical and electronics (E&E) sector in an Indonesian free trade zone (FTZ) on the island of Batam. The E&E firms were chosen because of their significant contribution to Indonesian exports. The sampling of this study was E&E firms involved in exporting activities. As part of survey research, hypothesis-testing was undertaken to explain the variance in the legal-political factors and market competition to predict the two measurements of supply chain performance of the E&E firms in Batam. Since Structural Equation Modeling (SEM-PLS) path modelling 2.0 works efficiently with small sample sizes and complex models, this analytical tool was employed in the study. The findings reveal that legal-political factors and market competition were positively significant on supply chain performance-efficiency and supply chain performance-flexibility. This study suggests that firm success is not necessarily tied to the size of its investment. Rather, it is the interrelationship amongst the factors that influences the supply chain.
Keywords: supply chain flexibility, supply chain efficiency, exports, free trade zone, Indonesia
- Weibull vs. Normal Distribution of Demand to Determine the Safety Stock Level when Using the Continuous-Review (S,s) Model without Backlogs
by Ricardo Manzini, Riccardo Accorsi, Emilio Ferrari, Mauro Gamberi, Valentina Giovannini, Hoang Pham, Alessandro Persona, Alberto Regattieri
Abstract: Determining safety stock is one of the most critical issues in inventory and logistics management. rnThis paper presents a cost-based analytical model to determine the best safety stock and customer service level for uncertain demand of products during generic replenishment lead times and a continuous-review inventory system. The proposed model uses the Weibull distribution to model the generic stochastic demand. α and β are the scale parameter and the shape parameter, respectively. An experimental analysis based on the assumption of different distributions of demand of product demonstrates the effectiveness of the proposed model compared to the so-called normal-based traditional model. Significantly, the proposed Weibull-based model is a comprehensible and user-friendly tool that can be useful for production system managers and practitioners.rn
Keywords: Weibull distribution, storage cost, inventory system, inventory management, shortage cost, continuous-review model
- COMPARING MODEL DEVELOPMENT IN DISCRETE EVENT SIMULATION ON RO-RO TERMINAL EXAMPLE
by Dmitri Muravev, Selim Aksoy, Aleksandr Rakhmangulov, Y. Volkan Aydogdu
Abstract: The management of an intermodal terminal, such as Ro-Ro terminals is a complex process that involves several critical decisions. Decision makers should organize operations perfectly in order to prevent bottlenecks and achieve the highest performance. So, predicting and solving possible problems in all processes of a Ro-Ro terminal is vital. At this point simulation modelling is a very useful and common method in analysing port terminal operations because, there are several interacting processes. But there are many simulation programs enable to model terminal operations. However, in which level are simulation software programs reliable in comparison with each other? Can there be significant difference in results of same event modelled by different simulation programs? In this paper comparison of two discrete event simulation modelling software programs, such as Arena and AnyLogic is aimed. Operations of a Ro-Ro terminal are modelled with Arena and AnyLogic independently and results are compared.
Keywords: Simulation modelling; Operation management; Ro-Ro terminal
- Production and delivery scheduling problem with delivery times and costs dependent on batch-size
by Olivier GRUNDER, zakaria HAMMOUDAN, Abdellah EL MOUDNI
Abstract: In this paper, we study a real-industrial case of an integrated lot sizing and delivery scheduling problem with multi capacitated transporters and distinct due dates considerations, with batch-size-dependent delivery time and cost.rnThe objective is to find a coordinated lot sizing and scheduling schemernsuch that the total cost is minimized while guaranteeing a certain service level at the manufacturer. A mathematical formulation of the problem is given as a nonlinear model in a general way. We prove a dominance property among the solutions of the problem and propose a generalized dynamic programming scheme to solve this problem in the case of homogeneous and heterogeneous transporters. Then, a mixed integer programming formulation is proposed to evaluate the performance of the dynamic programming method in both cases. Computational experiments show that the proposed approach is very efficient for solving small to medium size instances, especially for the identical transporter case.
Keywords: Automotive manufacturer; Coordinated scheduling; Production and Distribution; Dynamic programming; Mixed integer programming
- SUPPLY CHAIN TRANSFORMATIONAL LEADERSHIP, SUPPLY CHAIN INNOVATION PERFORMANCE, AND SATISFACTION WITH RELATIONSHIPS AND RESULTS: MODERATING ROLE OF SUPPLY CHAIN INNOVATIVENESS
by Sean Goffnett, Ashita Goswami
Abstract: Supply chain networks look to transformational leadership and innovation as sources of competitive advantage. Recent theoretical advances have emphasized the need to further investigate these variables in supply chain (SC) literature. The present research attempts to address this call by examining direct and indirect relationships between SC transformational leadership and satisfaction with SC relationships and results. Data from 184 informants was analyzed that showed that SC innovation performance mediated the relationship between SC transformational leadership and satisfaction with SC relationships and results. Furthermore, innovativeness capability moderated the mediation, such that the indirect effect of the SC innovation performance on the relationship between SC transformational leadership and satisfaction with SC relationships and results became stronger under conditions of high SC innovativeness. Based on results, we make suggestions for leadership interventions that include a culture level change within the immediate SC to enhance innovativeness capability through greater integration and motivation to innovate.
Keywords: supply chain transformational leadership; supply chain innovativeness; innovation; satisfaction with supply chain relationships; satisfaction with supply chain results
- An integrated inventory model for supplier-manufacturer-retailer system with imperfect quality and inspection errors
by Wakhid Ahmad Jauhari, Amanda Sofiana, Nughthoh Arfawi Kurdhi, Pringgo Widyo Laksono
Abstract: This paper develops an integrated inventory model for a three-stage supply chain system consisting of single-supplier, single-manufacturer, and single-retailer. The demand is deterministic and the production process is imperfect and produces a certain number of defective items. The retailer conducts an inspection process to screen out the defective items from the shipment lot. The inspector may incorrectly classify non-defective item as defective or incorrectly classify a defective item as non-defective.This model provides an optimal solution for the expected integrated total annual cost. A numerical example is presented for illustrative purpose.
Keywords: Supply chain; integrated inventory model; three-stage system; imperfect quality; inspection errors
- Information System Outsourcing and Its Impact on Supply Chain Performances
by Hokey Min, Seong-Jong Joo, Tonia San Nicolas-Rocca
Abstract: In the aftermath of recent global financial crisis, many firms consider changing their strategic thinking. Such change includes the reassessment of current business practices that may not necessarily add the maximum value to the supply chain process and may not bring the maximum possible return from the allocated resources. Thus, outsourcing strategy which allows the firm to focus on its core competency has gained popularity over the years. One of supply chain essentials that are often outsourced is an information system (IS) which plays an increasingly important role in facilitating business transactions, aiding decision-making processes, and visualizing assets throughout the supply chain. To help the firm better leverage IS outsourcing, this paper examines whether or not IT outsourcing enhances the firms supply chain performances. Based on the exploratory analysis, we found that supply chain performance is significantly influenced by (1) the size of an outsourcing firm; (2) the degree of the firms recognition of supply chains as its competitive advantage; and (3) the extent of prior IS outsourcing experiences.
Keywords: Information system outsourcing; Supply chain performances; exploratory analysis; U.S. firms
- ISM-Fuzzy MICMAC Approach for analysis of GSCM enablers
by Anil Dube, Rupesh Gawande
Abstract: The object of this paper is to identify the enablers to implement green supply Chain and to understand their mutual relationship. Green supply chain management (GSCM) enablers are identified using available GSCM literature and on consultations with experts from industry and academician. Interpretive structural model (ISM) was developed to identify the contextual relationship among these enablers. A group of experts from industries and academics was consulted and ISM is used to develop the contextual relationship among various GSCMEs for each dimension of GSCM implementation. The results of ISM are used as an input to fuzzy MICMAC analysis, to identify the driving and dependence power of GSCMEs. This paper has identified 14 key GSCMEs and developed an integrated model using ISM and the fuzzy MICMAC approach, Which helps to identify and classify the important GSCMEs and reveal the direct and indirect effects of each GSCME on the GSCM implementation.ISM model provides only binary relationship among GSCMEs, while fuzzy MICMAC analysis provides precise analysis related to driving and dependence power of GSCME. To overcome this limitation, integrated approach is developed.This study has strong practical implications, for both practitioners as well as academicians. The practitioners need to concentrate on identified GSCMEs more cautiously during GSCM implementation in their organizations and the top management could formulate strategy for implementing these enablers obtained through ISM and fuzzy MICMAC analysis.
Keywords: Green Supply chain management(GSCM), GSCM enablers, Interpretive structural modeling, Fuzzy MICMAC
- Analyzing Barriers to Supplier Quality Management via Interpretive Structural Modeling: The Case of Saudi Industry
by Hassan Mukhtar, Andrea Schiffauerova
Abstract: A well-organized supply chain network increases the efficiency of the supplier selection and improves quality of service. However, certain barriers to suppliers quality management prevent companies from achieving these gains. The aim of this study is to identify important barriers that affect suppliers quality management and to determine the contextual relationships between them using Interpretative Structural Modeling approach. Based on literature review seven important barriers to quality management were identified at the supplier level and a graphical approach was then used to classify these barriers into multiple categories. Experts opinion from Saudi industry was sought to develop Structured Self-Intersection Matrix and Reachability Matrix, which are used to identify binary relationship among these barriers. The study provides new insights into understanding of the critical factors hindering successful supply chain management.
Keywords: Supplier Quality Management (SQM), Interpretive Structural Modeling (ISM), Barriers to Supplier Quality Management.
- A new approach for evacuation process in disaster relief with uncertainties
by Minoo Kazeminia, Hossein Naderi, Ali mohamad Ahmadvand
Abstract: In this paper, a new mathematical model is presented for evacuation and relief management in case of disasters. Since these kinds of phenomena contain remarkable uncertainties, fuzzy theory is used to deal with it. When a disaster happens, travelling times between each two nodes are not certain. To this aim, a fuzzy inference system is employed to predict travelling times. And, different scenarios are designed to cover various conditions and to reach the optimum decision. Size of scenario tree exponentially increases by increasing number of nodes and arcs. Consequently, in large-sized problems a huge scenario tree is resulted and the problem becomes too complex to deal with in terms of exact solution. Therefore, scenario tree size reduction is inevitable. Finally, to validate the proposed model several small and medium-sized problems are solved by GAMS software that indicates acceptable efficiency of the model. In addition, sensitivity analyses are made on budget and demand parameters to determine models behavior upon these parameters.
Keywords: Disaster management, Evacuation, Fuzzy Theory, Mathematical Model
- Prioritizing of factors effective on Marketing Relationship using FAHP and Fuzzy TOPSIS Methods
by Elham Keshavarz, Mehdi Parhizgar
Abstract: Organizations are aware the importance of banks customer satisfaction, so they are gently far from traditional marketing, and inclined to relationship marketing( Bagheri Bahri et al,2013),relationship marketing encourage firms to seek partners for long-term marketing relationships The purpose of this research is to realize how organizations have been sustaining their growth through applying RM . In this study, banks including private bank, state owned bank, semi private bank were ranked regarding to sub-scales related to different levels of factors effective on marketing relationship of banking industry by using Fuzzy hierarchical analysis (FAHP) and Fuzzy TOPSIS. The results obtained from both methods indicate that private bank are more important than semi private bank and state owned bank in banking industry
Keywords: Marketing Relationship, Marketing Relationship factors, FAHP, Fuzzy TOPSIS
- Investigating links between low-level inventory practices and business performance
by Dimitrios Folinas, Thomas Fotiadis
Abstract: The paper investigates the effects of low-level inventory practices on financial performance in the Greek manufacturing industry by examining past literature reviews and empirical evidences of a primary research. To enhance research reliability, consistency, and validity of the quantitative research a systematic (step-by-step) research design is created to ensure quality in the data collection techniques, data analyses and interpretation, and the links between the literature reviews and the results investigated. The results of this study suggest that there is not a strong link among low-level inventories management practices and financial based performance indicators even if the manufacturing companies have remarkably applied these practices during the last years. Therefore, it is proved that the examined investigation must be viewed from more business dimensions (such as sales and marketing).
Keywords: Inventory Management, Low-Level Inventory, Financial performance, Business performance, Manufacturing sector
- Model for Identification of Effects of Demand Prediction on Bullwhip Effect Using Adaptive Network-Based Fuzzy Inference System (ANFIS)
by Nazanin pilevari
Abstract: The prevailing paradigms in the area of today's business are the supply chains and their management. The purpose of supply chain management is to lower the overall cost of chain and this has led to the chain being in need of mutual collaboration of its components. One of the phenomena that expose the coordination of supply chain to challenges is a phenomenon called the bullwhip effect. Following the study of previous research and using the expertise of experts, this research identifies the effective components on the quantity of demand. Then, seeking the opinion of experts in the industry under study (the automotive parts industry) and using the MATLAB software, the set of rules for fuzzy inference system were exploited and the model for prediction of single-level supply change was developed. Moreover, the developed model was implemented in the studied organization (PAYA CLUTCH COMPANY). Furthermore, in order to assess the effect of developed model on bullwhip effect, the results of conducted predictions were compared to each other through the conventional model and technique of company (regression method) and the trend analysis method. The results suggest that the model developed using adaptive network-based fuzzy inference system leads to less bullwhip effect than regression and analysis methods.
Keywords: Demand Prediction, Adaptive Network-Based Fuzzy Inference System (ANFIS), Bullwhip Effect
- Relationships between supply chain capabilities, competitive advantages, and business performance: An exploratory study of the food industry in Vietnam
by Tran Thi Tham, Navee Chiadamrong
Abstract: Relationships between Supply Chain Management (SCM) practices and business performance have been discussed and investigated widely, making substantial contributions to the body of knowledge. SCM is a key success for business improvement. The Vietnamese food industry is a rapid growing industry and can dominate several food export sectors with sustainable competitive advantages in the world. This study examines the relationships between supply chain management capabilities and competitive advantages towards business performance in the Vietnamese food industry. The data were gathered from conducted surveys with 302 food manufacturing companies in Vietnam, and the model was tested by using Structural Equation Modeling (SEM). The empirical results provide significant evidence to support that supply chain capabilities play an important role in the improvement of business to a certain degree. They have both direct and indirect effects on business performance through competitive advantages, which are related to each other, following the sand cone model.
Keywords: Supply chain capabilities; Competitive advantage; Business performance; Food industry; Vietnam
- Advance demand information and early fulfilment in inventory management with two demand classes
by Sourish Sarkar, John Shewchuk
Abstract: This paper investigates the use of advance demand information in three inventory models, each serving two demand classes. The first model is a periodic-review pure inventory system with advance demand information from both classes. The second model considers continuous review production-inventory system, where only one class provides advance demand information. In the third model, both demand classes provide advance demand information, though only one class accepts early fulfilment. Optimal inventory replenishment policy is characterised in the first model under certain conditions. In the remaining two models, simulation-optimisation methods determine the optimal Kanban-based early fulfilment policies. Presence of a small fraction of customers, who agree to provide advance demand information and accept early fulfilment, is shown to be more advantageous than having all customers with same amount of advance demand information but no early fulfilment. Managerial insights are drawn in certain scenarios.
Keywords: advance demand information, inventory management, production control, simulation applications
- Optimality of Cycle Time and Inventory Decisions in a Coordinated and
Non-coordinated Three-Echelon Supply Chain under Exponential
Price Dependent Demand
by Burra Karuna Kumar, Dega Nagaraju, S Narayanan
Abstract: To remain competitive in the prevailing stiff business competition, coordination among the entities of the supply chain is becoming mandatory. The people in the supply chain have to integrate their business decisions beyond the organizations boundary. This paper develops a mathematical model for a coordinated and non-coordinated three-echelon supply chain under exponential price-dependent demand. The model is developed with the consideration of ordering/setup, carrying and transportation costs. The objective of this work is to demonstrate the optimality of inventory replenishment decisions, shipment frequencies and the annual total variable costs, with and without coordination. A numerical illustration is presented to determine the optimal values of the objective function and decision variables. Further, the sensitivity analysis is carried out to study the influence of the model parameters on the optimality of decision variables and the objective function.
Keywords: Supply Chain; Exponential price dependent demand; Replenishment decisions; Shipment frequency; Total variable cost;
- Innovation management in logistics: an empirical study
by Ingrid Göpfert, Wanja Wellbrock
Abstract: In this study we examine the extent to which innovation management is established in business logistics. In addition to the general implementation of an innovation management the study is also focused on the importance and success of innovations for logistics, the underlying innovation process, corresponding expanses to achieve logistics innovations and relevant innovation triggers. To get significant results we carried out a questionnaire under the each 100 largest German companies of eight selected industries. In total we integrated 800 companies in our study and got a response rate of eleven percent. As main results we show that despite a fundamentally high importance of innovations in logistics, the corresponding expanses are still relative small. Innovation management is not yet sufficient implemented in the area of logistics and a structured innovation process is also absent in the majority of companies surveyed. Moreover we show that innovation management is mostly limited to a single company and a continuous enterprise-wide expansion would be desirable for the future.
Keywords: Logistics â€˘supply chain management â€˘innovation managementâ€˘ innovation process â€˘empirical study
- GREENING TRANSPORT ACTIVITIES IN THE FOOD RETAIL SUPPLY CHAIN
by Kristina Petljak, Sanda Renko, Sandra Rasic
Abstract: From an operations perspective, retailers are seeking to manage and improve relationships with their customers, brand image, customer services, etc. in order to underline their green potential, because literature has considered green and sustainable business practices as a means to reducing costs. Among different retail operations and activities, transport and logistics have caused the highest costs and have been insufficiently investigated as well. The main purpose of this paper is to investigate the greening of the transport activities in the food retail supply chain and characteristics of the food retailers` who are leaders in pursuing such activities. In such a way, the paper reveals the impact of food retailers` green initiatives on the way they manage their transport and logistics services. For the purpose of the paper, a quantitative study on the sample of 190 food retail companies operating on the Croatian market was conducted. The results suggest that generally retailers see green transport and logistics activities as an overall positive activity in terms of reducing costs and beyond, however usage of such green practices still differs a lot among observed food retailers.
Keywords: green transport, food retail, food supply chain management, Croatia.
- A fuzzy based multi criteria decision making approach for supply chain risk assessment in Indian pharmaceutical industry
by Vinayak Vishwakarma, Chandra Prakash, Mukesh Kumar Barua
Abstract: Being a highly significant part of health care system, developing nations pharmaceutical industry, supplying medicines across world needed to develop risk averse supply chain to protect global health of human beings and businesses. However, the successful accomplishment of pharmaceutical supply chain (PSC); production and business activities are relatively difficult due to involvement of different risks. Therefore, identification of risks and their subsequent analysis of PSC are very important. Any risks affecting the pharmaceutical corporations could interrupt supply medicines and health systems effectiveness. This paper proposes multi criteria decision making (MCDM) methodology based on fuzzy AHP approach to prioritize and rank risks in PSC. This approach is also suitable in analyzing experts judgments and uncertainty involved in the process of risk assessment. This study identifies twenty four risks under five major risk measures of Indian PSC through relevant literature and experts opinions. The results of study would be beneficial for industries in managing and reducing the consequences of the risks in PSC. The analysis of the results indicates that supply and supplier risks are the most important risks in Indian PSC. Sensitivity analysis is also performed to test the robustness of the proposed approach.
Keywords: Pharmaceutical Supply Chain (PSC), Risk, MCDM, Fuzzy AHP, India.
- A new approach for decision making in distribution supply chains: a Theory of Constraints perspective
by Tito Armando Rossi Filho, Isaac Pergher, José Antunes Júnior, Guilherme Vaccaro
Abstract: The understanding of the application of the concepts of the Theory of Constraints (TOC) in the management of logistics distribution is not yet consolidated in the academic and especially practical field. The objective of this paper was to develop and test a proposed model to support decision making regarding the feasibility of implementing the proposals of TOC in managing distribution logistics. In an automotive industry, the proposed method was applied and mainly made up a critical analysis of the method and the potential implementation of the TOC concepts in the management of distribution. The main results of the research allowed appointing a structured method in logical steps to be used in the practice of companies to improve their logistics performance. The research suggests that the use of the method contributed to the analysis and acceptance of TOC in distribution logistics industries.
Keywords: Distribution; Logistic; Theory of Constraints; Supply Chain; Decision Making
- Justification of Green Logistic Practices in Indian Enterprises using analytic hierarchy process
by Deepti Chhabra, Rajesh Kumar Singh
Abstract: Logistics is the integrated management of all activities which are required to move products through the supply chains. By practicing greening efforts in the logistics system, manufacturing enterprises may have efficiency improvements and several other long term benefits in addition to the basic objectives of achieving the organizational goals of the manufacturing enterprises. This paper is intended to justify the green logistics practices over non-green logistics in the manufacturing enterprises. The justification is done by using Analytical Hierarchy Process. On the basis of literature, major benefits of green logistics have been identified and enlisted as energy saving, reduction in carbon emission, protection of ecological environment, managing waste disposal, reduction in distance and quality improvement. The global desirability index of green logistics over non green logistics are calculated by using AHP and then compared to justify green logistics over non green logistics in the Indian manufacturing enterprises. Furthermore green logistic concepts are studied through a case study.
Keywords: Green Logistics; Non-green logistics; Analytical Hierarchy Process; Indian enterprises
- Supply Chain Risk Management in the Indian Manufacturing Context: A Conceptual Framework
by V Viswanath Shenoi, T N Srikantha Dath, Chandrasekharan rajendran
Abstract: Due to emergence of global business environment, short product life
cycles, technological innovations, natural disasters and ever changing government
policies, industries face various types of risk in their supply chains. To overcome
the increased risks raised by the above factors in the supply chain, organizations
need to establish the principles of Supply Chain Risk Management (SCRM) for
serving customers by finding right suppliers and fostering the trust among the
supply chain partners. This study proposes that by following the strategies such
as risk plan, risk financing, risk monitoring, risk avoidance, risk transfer and
risk sharing, the supply chain can be enhanced by reducing the impact of risk
on supply chain. This study supposes that the supply chain partners (entities)
need to share information transparently across the supply chain to enhance the
visibility of the supply chain.Without sharing information across the supply chain,
alleviation of the impact of the risk and sustaining long lasting relationship among
the trading partners is a difficult task. This study attempts to identify the critical
dimensions of SCRM and it develops a conceptual framework to understand the
relationship between risk and performance measures from the perspective of the
manufacturers which includes Original Equipment Manufacturers (OEM), Tier-1
and Tier-2 suppliers.
Keywords: Supply Chain Risk Management (SCRM), Indian manufacturing industries, Risk categorization, Risk, Risk framework, Risk mitigation, Performance.
- Developing competitive advantage through tracking tools in service business: The case of a global industrial service supplier
by Johanna Myllynen, Ilkka Sillanpää, Khuram Shahzad
Abstract: This research is about the utilization of tracking tools in maintenance resource coordination to investigate the benefits of tracking in the coordination processes. Based on service industry, this study uses a pilot project, questionnaires and interviews as research methods. Various challenges were found in the field of mobile workforce management; coordination, safety at work, achieving optimization goals of cost-efficiency, quality and customer service. Many of these challenges can be facilitated with tracking. However, the possibilities of tracking utilization vary in differing business areas of case company. Four dimensions in the existing business were identified. They are connected with the mobility and management style of service technicians. Further, the main tracking opportunities were introduced into each of these business fields. The successful usage and implementation of a tracking system necessitates strong support from management. Tracking tools offer numerous opportunities for maintenance resource coordination. Undoubtedly, the tracking implementation and utilization require consideration of several managerial matters.
Keywords: Tracking, Maintenance Resource Coordination, Mobile Workforce, Field Services, Fleet Management
- Comparative evaluation of GSCM practices in automotive components manufacturing firms of India: A fuzzy TOPSIS approach
by Sunil Luthra, Sanjay Kumar, Dixit Garg, Abid Haleem
Abstract: Managing process of greening the whole supply chain encompasses careful and critical examination of supply chain members, upstream and downstream supply chain members. This paper provides a methodical fuzzy MCDM modeling using TOPSIS for comparative evaluations of GSCM practices in automotive components manufacturing firms of India towards effective green supplier selection by taking a real world problem. GSCM practices were sorted from extensive review of literature and structured questionnaire was formed; and the data was collected from selected four automotive components manufacturing firms to evaluate their current GSCM practices adoption. A fuzzy TOPSIS technique has been applied for comparative evaluations of GSCM practices in selected four automotive components manufacturing firms and to rank these selected firms. The influence of preferences provided by decision makers has also been analyzed using sensitivity analysis to examine and demonstrate the robustness of the adapted fuzzy TOPSIS methodology. Triangular fuzzy numbers have been utilized to deal with subjectivity and biasness associated with human judgment. Out of chosen four Indian automotive component manufacturing firms, firm 1 has adopted GSCM practices in effective way and may be selected as green supplier. Our study has implications for SC practitioners/managers to solve MCDM problems related to effective implementation of GSCM practices in firms.
Keywords: Fuzzy Technique for Order Preference by Similarity to Ideal Solution (Fuzzy TOPSIS), Green Supply Chain Management (GSCM) Practices, Indian Automobile Industry, Multi Criteria Decision Making (MCDM), Sensitivity Analysis, Triangular Fuzzy Numbers (TFNs).
- The new approach to inventory optimisation
by Gennady L. 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 optimisation 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 characterises the supply chain efficiency and is applied in calculations with the use of the generalised EOQ formula, is given. The developed method allows to receive additional synergy effect the increase in profitability of a working capital.
Keywords: logistics management; inventory optimisation; time value of money; TVM; 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 Pegah Saki, Sadoullah Ebrahimnejad
Abstract: In analysing an organisation, performance measurement plays a key role in ensuring the success of the organisation and improvement its activities; such an evaluation can be carried out through organisation efficiency evaluation. The aim of this study is to evaluate the performance of pharmaceutical suppliers. Therefore, an integrated methodology was proposed which is supported by three different techniques. In the first phase, eight sub-criteria were grouped in four 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 and 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 measurement; suppliers; decision-making trial and evaluation laboratory; DEMATEL; data envelopment analysis; DEA; fuzzy analytic network process; FANP; the pharmaceutical industry; ranking DMUs.
- Modelling JIT supply chains by simulation and hybrid genetic variable neighbourhood search algorithm
by Ali Azadeh, Mohammad Abdollahi
Abstract: The objective of this study is investigating multi-stage supply chain systems which is controlled using a kanban system so as to analyse and optimise it. In this paper, a new optimisation approach based on simulation analysis and metaheuristic methods to optimise a multi-echelon supply chain in a JIT production context is proposed. A hybrid of simulation modelling, genetic algorithm (GA), and variable neighbourhood search (VNS) to solve the above mentioned problem was proposed. In this research paper, GA-VNS is used iteratively to optimise the supply chain. Furthermore, the performance of the GA and VNS compared with their GA-VNS counterpart based on their relative error, and it is illustrated that the GA-VNS has ability to solve NP-hard problems in the area of complicated simulation optimisation models, especially where there is no prior knowledge of the behaviour of the system.
Keywords: supply chain; simulation; genetic algorithm; optimisation; variable neighbourhood search; VNS; just-in-time; JIT.
- Supply chain integration and innovation in a global environment: case studies of best business practices
by Alan D. Smith, William T. Rupp
Abstract: The two companies showcased in supply chain integration include Mondolez International, which operates within the consumer packaged goods industry; and Braskem, a global company headquartered in Brazil and 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 Araujo Ferreira, Rosane Lúcia Chicarelli 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 customisation; supply chain management; food industry; orange juice companies.
- Implications of customer roles in engineer-to-order service supply chain
by Olaiya O. 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 minimise 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; SSC; customer roles; knowledge-intensive industry; logistics systems; logistics management; engineer-to-order.
- 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; MIP; queueing; heterogeneous machines; machine repair models; binomial distribution; priority.
Special Issue on: "ICIL 2014 "Innovation and Industrial Logistics,"
- Influence of stock shortage in integrated logistic systems : an under-estimated importance
by Raymond Marie
Abstract: When evaluating performance of flow systems with such indicators as ``throughput'' or ``response time'',
it is known that random delays with high dispersions degrade significantly the performances of the systems.
Here we focus on the particular case of stock shortages in integrated logistic systems. These stock shortages create random delays on the component delivery and so they are the sources of disorders in the behaviour of the systems they impact.
In this paper, we study the squared c\oe fficient of variation of the random variable which is a pertinent metric for evaluating the risk on the performances of the flow systems involved by the dispersion of the variable. After elaborating a realistic random model of an inventory, we present a way to exhibit the squared c\oe fficient of variation of the duration of the stock shortages.
In the following part, we consider the random variable corresponding to the potential waiting times of all the orders which, for well tuned systems, has a relatively high probability to take the value zero. We show that the distribution of this latter variable admits a squared c\oe fficient of variation much higher than the former one. We also exhibit a few numerical examples in order to raise the reader awareness of the risk of under-estimating the importance of the stock shortages in integrated logistic systems.
Keywords: integrated logistic system; stock shortage; backorder; performance of flow systems; stock shortage probability; coefficient of variation; squared coefficient of variation; service level agreement; penalties.
- Triple-Objective Models for Portfolio Optimization with Symmetric and Percentile Risk Measures
by Bartosz Sawik
Abstract: The purpose of this paper is to compare three dierent triple-
criteria portfolio optimization models. The rst model is constructed
with the use of percentile risk measure Value-at-Risk and solved by
mixed integer programming. The second one is constructed with the
use of percentile risk measure Conditional Value-at-Risk and solved
by linear programming. The third one is constructed with the use
of a symmetric measure of risk - variance of return - as in the
Markowitz portfolio and solved by quadratic programming. Cardinality
constraints are formulated in all models that limit the number of assets
selected in the portfolio. Computational experiments are conducted
for triple-criteria portfolio stock exchange investments. The results
obtained prove, that the triple-objective portfolio optimization models
with Value-at-Risk and Conditional Value-at-Risk could be used to
shape the distribution of portfolio returns. The decision maker can
assess the value of portfolio return, the risk level and number of
assets choosen in the portfolio, and can decide how to invest in a
real life situation comparing with ideal (optimal) portfolio solutions.
The proposed scenario-based portfolio optimization problems under
uncertainty, formulated as a triple-objective linear, mixed integer or
quadratic program are solved using commercially available software
(AMPL/CPLEX) for mathematical programming.
Keywords: multi-criteria decision making, portfolio optimization, percentile and symmetric risk measures, weighting approach, mathematical programming
- NEUROFUZZY TECHNOLOGY TO EVALUATE THE ENVIRONMENTAL PERFORMANCE OF THE CARGO TRANSPORTATION MODE
by Cristina Sinay, Suzana Kahn Ribeiro, Isolina Cruz, Laura Sinay
Abstract: The operation of a transportation system is a factor of development for any region. However, the benefits provided are often accompanied by negative impacts on the environment, especially if the afore-mentioned operation is inadequately planned and controlled. This being so, the objective of this work is to present a procedure for obtaining an index representing the environmental performance of a cargo transportation mode as an instrument for guiding the decision-making process with regard to the choice of a sustainable mode for cargo transportation. The proposed index will be derived from the integration of several indicators related to different environmental aspects that could be damaged by the different activities performed. This integration will be achieved using fuzzy logic and neurofuzzy architecture. This index will assist enterprises when they are planning a sustainable cargo transportation service, environmental agencies in controlling such a service and society by preserving the environment and ensuring quality of life.
Keywords: environmental performance of cargo transportation, fuzzy logic in environmental performance, sustainable transportation mode.
- Stochastic Timed Petri Nets to dynamically design and simulate industrial production processes
by Marco Bortolini, Maurizio Faccio, Mauro Gamberi, Riccardo Manzini, Francesco Pilati
Abstract: Stochastic timed Petri nets are among the most effective languages to model event driven uncertain processes. Their adoption in the industrial sector is even more diffuse and of potential help for the practitioners. This paper presents a stepwise approach to support the dynamic design and simulation of manufacturing and assembly production processes. An industrial application from the white good sector, based on a semi-automatic assembly line is, further, discussed demonstrating the approach flexibility and the modelling language key strengths. The stochastic timed Petri net model for such a scenario is described together with the simulation outcomes of interest for the assembly line design and the production and maintenance activity scheduling.
Keywords: Stochastic timed Petri net, modelling language, industrial system, stochastic event, integrated modelling, stepwise approach, dynamic design, simulation, resource planning, manufacturing, assembly, reliability, maintenance.
- Green Supply Chain Management Performance: a study of Brazilian oil and gas companies
by Iara Tammela, Alberto G. Canen, Felipe C. Paganelli
Abstract: The oil and gas industry in Brazil has become a very important sector for the countrys economy due to the discovery of new oil and gas reserves. In 2012, a deep water drilling accident in the coast of Brazil spilled thousand barrels of oil in the environment, causing extensive damage that will last for years. Green Supply Chain Management (GSCM) seeks to minimize the environmental impacts caused by industries logistical activities and processes. The aim of this paper was to conduct an exploratory study of companies located in Brazil. The results are related to the application of the theoretical indexes proposed for the oil and gas industrys GSCM.
Keywords: green supply chain, oil and gas industry, performance indexes, exploratory study, Campos Basin
Special Issue on: "ICIL 2014 Innovation and Industrial Logistics,"
- The strategic relevance of logistics: new perspectives
by Wanja Wellbrock, Ingrid Göpfert, Michael Stephan, Malte Ackermann
Abstract: We measure the strategic relevance of logistics in multinational corporations (MNCs) using two proxies: (1) the communication of logistics endeavors in annual reports and (2) the employment of logistics competencies on the top management level. We define logistics competencies as the employment of executive board members whoare assigned to logistics tasks. We examine 360 MNCs and their annual reports of the years 2000, 2004, and 2008 using content analysis. We show that there are considerable differences in the communication efforts amongst the geographical regions and the associated industries using the standard industrial classification (SIC) scheme. We present evidence that corporations originating in Asia are more likely to employ logistics competencies at the top level than their North American and European counterparts. On the other hand, Asian corporations are much more taciturn in their corporate disclosure policy. On an industrial level the transportation and chemicals subsectors are more likely to employ logistics competencies on their executive boards than other subsectors. Additionally, using partial point-biserial correlations. We demonstrate that the employment of logistics competencies is related to higher financial performance, further substantiating the strategic relevance of logistics for MNCs.
Keywords: Logistics; supply chain management; content analysis; corporate communication; executive board; annual reports; multinational corporations
- PERFORMANCE OF HOSPITALS OPERATING DEPARTMENTS:THE EFFECT OF LOGISTIC PARAMETERS
by Zilla Sinuany-Stern, Nir Shahkoohi, Osnat Cohen
Abstract: Our case study analyses the performance of 24 operating departments in Soroka Hospital in Beer-Sheva, Israel. Data Envelopment Analysis (DEA) was used with 5 inputs and 3 outputs over two years. These inputs and outputs reflected mostly logistic parameters and income of operating rooms. In the three operating sites investigated we found no significant difference in efficiency. We found that simple room utilization ratio is not sufficient for measuring efficiency. As a by-product of DEA, benchmark analysis verified inputs and outputs which need improvements in order to reach full efficiency, relative to their peers.
Keywords: efficiency; data envelopment analysis; performance; logistics; operating rooms; hospitals