International Journal of Business Performance and Supply Chain Modelling (6 papers in press)
A group evaluation method for supplier selection based on interval type-2 fuzzy TOPSIS method
by Ashoke Kumar Bera, Dipak Kumar Jana, Debamalya Banerjee, Titas Nandy
Abstract: Supplier assessment is an important strategic decision of organizations for reducing operating costs, improvingrncompetitiveness and to develop business opportunities. However, the decision making related to the supplier selectionrnis usually a complex and unstructured activity. It involves the evaluation of various characteristics simultaneously suchrnas large number of alternatives, the multiple criteria involved in the evaluation process as well as the group of expertsrnwith diverse opinions. The existing literature shows several methods of selecting the right supplier. However, there existrnsome gaps in the available literature; therefore, it is essential to further develop the research. Thus, this study intendsrnto propose a framework using interval type-2 fuzzy (IT2F) TOPSIS method to evaluate and select the best suppliersrnfor an Indian spare parts manufacturing company. Seven important criteria namely price of the product, technologicalrncapability, relationship closeness, conformance to quality, conflict resolution capability, experience of suppliers andrnlead time are considered for evaluating suppliers. A practical analysis is carried out, and the data are collected fromrna set of 5 prospective suppliers. We use IT2F TOPSIS model for evaluation and ranking of the suppliers in an imprecisernenvironment. Results indicate that the major influencing criteria for supplier selection in the case company arernprice of product, technological capability, relationship closeness, conformance to quality and experience of supplier.rnThe advantage of using IT2F sets in the model considers the uncertain nature of the real world data and allows inputsrnto the model that have high uncertainty and gives a closer result to the reality and the effect of uncertainty is minimized.
Keywords: Multiple criteria decision making; Supplier selection; Group decision making; Interval type-2 fuzzy sets; Interval type-2 Fuzzy TOPSIS.
The effect of supply chain strategy on the relationship between innovation capabilities and business performance. A theoretical model
by Ricardo Zimmermann, António Moreira, Luís Ferreira
Abstract: Although the relationship between supply chain (SC) and innovation has attracted attention from researchers in recent years, the relationship between innovation capabilities and SC strategies is a subject that has not yet been explored extensively. The main objective of this paper is to examine how SC strategies affect the relationship between innovation capabilities and business performance. The paper, characterized as a conceptual paper with the aim of contributing to theory building, is based on the concept of fit and on the principles of the Contingency Theory and the Resource-based View. Further, a literature review and a theoretical discussion, a theoretical model and a set of research propositions are presented. The theoretical rationale shows the potential for improvement in performance through the relationship between innovation and SC and can be used to boost empirical research on the topic.
Keywords: Supply Chain Strategies; Innovation Capabilities; Business Performance; Fit.
Supplier selection and order allocation problem through option contracts under supply disruption risks
by Masoud Rabbani, Ali Reza Nazari-Estahbanati, Soroush Aghamohamadi-Bosjin
Abstract: Selecting well-performed suppliers and ordering at the right time are the keys to success. Many types of unpredictable disasters such as breakdowns, labor strikes, and natural calamities have occurred, which are essential element resulting in supply disruption risk. This paper presents a supplier selection model and order allocation to minimize costs incurred in multi-product supply chains under disruption risks at supplier sites or group of suppliers in the same situation under cap-and-trade regulation. In order to reduce disruption risk, options contracts are applied to hedge against adverse effects of supplier disruptions. Numerical instances exemplify the proposed method. The results indicate that option contracts reduce costs significantly and, even at a very high initial cost, are still cost-effective. The results of Sensitivity analyses also show carbon emissions levels can have a significant impact on the income and behavior of decision-makers.
Keywords: Supplier selection; order allocation; option contracts; supply disruption risks; Fortification of suppliers; Carbon emissions; Nonlinear mixed integer programming; SEO algorithm.
The Peruvian Furniture Industry: An Integration Model for Lean, Six Sigma and Theory of Constraints
by Edgar Ramos, Juan Eyzaguirre
Abstract: This research aims to analyze the results obtained from the combination of lean manufacturing, six sigma and theory of constraints in the wooden furniture industry in Peru. The research presents that there is increase in productivity of the SMEs by reducing the production time and costs without effecting the quality of the products. Based on a recent literature review, the authors, through the experience and study of Peruvian furniture companies, were able to identify an integrated model based on the five TOC steps, and the lean six sigma methods. A value chain of processes is proposed; highlighting elements that allow the elimination of activities that do not add value and control the variability of the critical process. Arena simulation was an important tool to validate proposals. This paper allows manufacturing managers to evaluate operating systems, in order to use integrated methodologies, and obtain the increase of six sigma levels by 50% and improve operational results by 6% in furniture manufacturing companies.
Keywords: Lean; Six Sigma; TOC; Process Improvement; SMEs; Wood furniture industry; Peru.
Critical Success Factors of Operational Excellence Practices for Manufacturing Industry
by Mohd Hafeez Al-Amin Abdul Wahab, Mohammad Ismail, Mohd Nazri Muhayiddin
Abstract: This study examines the critical success factors (CSFs) of operational excellence practices in the manufacturing industry. The survey questionnaires were designed and distributed to the 50 respondents. The pilot study sample consists of 30 respondents from 50 questionnaires, with an average response rate of 60%. The reliability and validity test was conducted and the data were analysed using the statistical software SPSS version 22. The results indicate that six factors have been identified to be critical factors for operational excellence practices. Furthermore, the process management is the most critical factor influencing the operational excellence practices implementation success. This research concluded that the manufacturing industry should implement six critical success factors of operational excellence practices to enhance the organisational performance. Thus, further studies is recommended to investigate and validate the structural relationship between operational excellence practices and sustainable performance in Malaysian manufacturing industry.
Keywords: Critical success factors; CSFs; manufacturing industry; operational excellence practices; operational management; small and medium enterprises (SME).
Issues of Biodiesel Supply Chain for Public Sector Transportation in India
by Ashutosh Sheel, Y.P. Singh, Vishnu Nath
Abstract: The present study aims to enumerate the issues of biodiesel supply chains in India. After an extensive literature review to access the current state of research on biodiesel, primary data was collected from academic experts and industry professionals engaged in biodiesel research and production. Ten issues were identified by the experts and pairwise rating of these issues were also done by the same experts., The issues were prioritized using the A.H.P. (Analytic Hierarchy Process) method. The results of the A.H.P. analysis revealed that issues such as seasonality, variability in yield, logistics, and storage are the major issues that have a bearing on the supply chain of biodiesel. The study also suggests implications for theory and practitioners and policy actors. The present work is unique in the sense that research on the issues of biodiesel supply chains in India is meager.
Keywords: Indian Railway; State Road Transportation ; Supply chain management; Biodiesel; Jatropha; Sustainability.