International Journal of Business Performance and Supply Chain Modelling (17 papers in press)
The challenges and problems in the implementation of supply chain management (SCM) in small and medium scale industries: A case study of Indian coir industries
by Debesh Mishra, Suchismita Satapathy
Abstract: For sustainable economic development, the rural or small or medium scale industry play a vital role. By encouraging in setting up of these industries in diverse regions of country will help in the attainment of political freedoms, economic freedoms and also in the foundation of newer social orders. The Indian coir industry has been regarded as one of the rural or small or medium scale industry when compared to other emerging industries. However, due to a number of constraints, the present coir industries are degrading in terms of their growth and development. An effective implementation of supply chain management (SCM) strategy would ensure in proper functioning of these coir sectors in a competitive level. Therefore, this study aimed at making a SWOT analysis of the existing coir industries in Odisha state in India, which was further followed by the identification of the challenges and problems for effective implementation of SCM strategies. Moreover, the interpretive structural modelling (ISM) method was used to find the interrelations among those challenging variables and to develop an interrelationship model followed by Matrice d'Impacts Crois
Keywords: Coir industries; Challenges; Supply Chain Management; SCM; SWOT; Factor-analysis; ISM; MICMAC; Odisha; India rn.
Evaluation of supply chain routes based on control engineering and DEA considering traffic congestion and uncertainty
by Ardavan Babaei, Majid Khedmati, MohammadReza Akbari Jokar
Abstract: The occurrence of disasters sometimes has irreparable consequences, including disruption in the energy distribution where transportation systems fail due to damage or safety considerations. Hence, comprehensive planning is of vital importance in such conditions, where energy demands should be satisfied as soon as possible to reduce post-crisis problems. In this paper, a mathematical model is proposed to assess the flow distribution based on the traffic criterion. In the mathematical model, the resilience and stability criteria are developed based on the concepts of control engineering and optimal control. The results show that the route stability is dependent on the traffic parameter. Then, considering several factors including stability, safety, resilience, risk-averse investment, the environment and noise, a decision-making model is presented to evaluate the performance of the flow distribution routes during crises. Goal programming and data-oriented modeling are used to solve the mathematical model. Data Envelopment Analysis (DEA) is used as the data-oriented model to evaluate the performance of scenarios under uncertainty. Then, the most efficient scenario is used as the goal. Additionally, a decision-making methodology is proposed for ranking the routes. The results show that, in general, increasing the beta leads to lower desirability of a given route. Finally, a managerial analysis is presented based on efficiency, risk, and the PEST measures.
Keywords: energy distribution; supply chain routes; uncertainty; crisis situations; traffic criterion; decision-making; efficiency.
IMPACT OF SOCIAL SUSTAINABILITY ON SUPPLY CHAIN PERFORMANCE WITH MEDIATING EFFECT OF DIFFERENTIATION: THE CASE OF MOROCCAN MANUFACTURING FIRMS
by Aicha Elaiche, Ali Osman Kusakci
Abstract: This study examines the relationship between social sustainability practices (SSPs) and supply chain performance (SCP) indicators in the context of Moroccan manufacturing companies with a three-step research methodology. Among the various supply chain KPIs used in the literature, the three most preferred by supply chain experts were selected with Interval Type-2 Fuzzy AHP (IT2F-AHP) method, which offers an accurate approach in subjective decision- making situations. Afterwards, the data collected with the developed instrument were evaluated using the Structural Equation Modeling (SEM) technique. Lastly, in order to understand the nature of the inferred relationship, the moderating role of differentiation, as a competitive advantage strategy, was assessed. The findings obtained show that there is a significant relationship between social sustainability and supply chain performance for the Moroccan manufacturing sector, which may inspire further research in other developing markets. Additionally, it has been found that differentiation has a total mediation effect on the two aforementioned constructs relationship.
Keywords: Social Sustainability; Supply Chain Performance; Differentiation; Interval Type-2 Fuzzy AHP; Structural Equation Modelling.
A Novel Integrated Approach on Growing Supply Chain for Multi-Species Poultries with Carbon Emission and Preservation Technology
by Tharani Subbaih, Uthayakumar R
Abstract: This study comes up with a two echelon growing supply chain consistingrnof a primary poulterer and a secondary poulterer for multi-species poultries. We derive the mathematical growing inventory model with preservative technique, a quantity discount, and carbon emission. We classify the emission into two types, namely the direct and indirect emissions. We incorporate the quantity discount as a function of secondary poulterer's order quantity and it is inscribed to be the all-unit-discount format. The objective is to maximize the profit function of both poulterers. Numerical illustrations and sensitivity are carried out to show the application of the proposed model. In this study, a genetic algorithm(GA) tool has been developed to nd the expected maximum prot cost of the proposed inventory model. Also, we compare the results of each poulterer with the integrated approach of two poulterers.
Keywords: Integrated supply chain; Growing inventory model; Carbon emission; Preservation Technology; Quantity discounts.
Container Freight Rate Level Forecasting with Machine Learning Methods
by Yaling Feng
Abstract: In an ocean container transportation market, the fluctuation of spot rate is volatile, making it difficult for market players to optimize freight related operations. In freight forecasting literature, univariant methods often outperform the multivariant counterpart, although the latter is more convenient in modelling variable interdependency. This paper applies an multivariant approach to first identify the significant factors affecting rate development and then utilizes machine learning methods to handle the complex multivariant nonlinearities, attempting to achieve an balance between forecasting accuracy and economic factor interpretation. One compromise on accuracy is to categorize relative rate changes into 5 levels, which is considered equally valuable as exact rate forecasting according to business decision-makers. In the Far East Europe trade case study, it is found that four key factors, demand, the regression value of freight rate fitted to the time series model, utilization rate and the change of the fleet's overall freight capacity, affect the rate development significantly; and among the tested machine learning methods, Random Forest outperforms the other. Comparing with the best time series model (ARIMA), the obtained multivariant model performs equally well, indicating that despite of the complex nonlinearities between the variables in container freight, multivariant modelling in combination with machine learning methods has the potential for a reliable prediction of freight development direction.
Keywords: Container Freight Rate; Multivariant Forecasting; Univariate Forecasting; Machine Learning.
Stochastic Sequential Supply Chain Management System: With a solution approach using the Systematic Sampling Evolutionary Method
by Natnael Nigussie Goshu, Semu Mitiku Kassa
Abstract: Supply chain management describes a complex sequence of strategies implemented by
multiple decision makers to transform raw materials into products and deliver to the market. Mathematical formulations of such problems involve hierarchical games with some form of stochastic properties in the problem definition. Such kind of mathematical problems are generally known to be NP-hard and are challenging to solve. This paper considers a general form of supply chain management problem with various forms of model formulations and analysis. Moreover, a solution approach based on a systematic sampling evolutionary method is also proposed to solve any form of such problem definitions to obtain a Stackelberg equilibrium or Stackelberg-Nash equilibrium solution. The convergence of the solution approach is shown. The reliability of the proposed method is checked through some selected deterministic version of the mathematical model and the result is promising. In addition to
this, the algorithm is implemented on carefully constructed stochastic supply chain management problems and solutions to these problems are presented. It has been indicated that the proposed algorithm can also be used to solve a variety of complex stochastic supply chain management problems.
Keywords: Supply chain management; Stochastic multilevel programming; Stackelberg equilibrium; Nash equilibrium; Sample average approximation; Systematic sampling.
Did Covid-19 Crisis Change Inventory Efficiency? Evidence from Finland
by Olli-Pekka Hilmola
Abstract: Due to virus pandemic, many things changed with short notice, and shutdowns as well as openings of economies and factories were unsynchronized and unpredictable throughout the world in 2020. However, demand sustained rather well due to ultra-loose monetary policies and low interest rates. Therefore, it is needed to know, how inventory efficiency developed in this environment. Research work examines Finnish publicly traded companies from manufacturing and retail, and their inventory efficiency. Findings illustrate that year 2020 did not have that much impact on inventory efficiency. It seems that trajectories which started in 2010 remain inventory turns are getting at moderate pace lower, and inventory investments are in absolute terms increasing. However, share of inventories from total assets remains as unchanged. Typically, in average terms inventory efficiency has barely changed at all (within three used measures). Different forces and changes must have had neutralizing effects on each other in 2020.
Keywords: Inventory efficiency; Covid-19; Finland.
Development of supply chain performance index in dynamic environment: Structural equation model
by Nitipon Tansakul, Suthathip Suanmali, Thanwadee Chinda
Abstract: Since the performance of suppliers critically influences the overall supply chain performance (SCP), the identification and evaluation of SCP through the standard index is an important approach to identifying problem and improving SCP. Therefore, it is imperative to develop a SCP measurement index in a specific context and environment. In addition, the index for SCP should be adjustable to be compatible with a specific ecosystem (industry, country, culture, etc.). The purpose of this research is to construct an adaptable SCP measurement model based on the perception of stakeholders who directly take participate in a supply chain. This research conducted an empirical survey of 210 companies of automotive companies in Thailand to validate the proposed method. Then, the structural equation model (SEM) was employed to test relationships among influential factors in a supply chain. In consequence, an index is constructed by employing influential weights obtained from SEM.
Keywords: supply chain performance index; supply chain flexibility; supply chain integration; automotive industry; structural equation modelling.
Supply Schedule and Vehicle Routing Problem for a Home Appliance Distribution Company
by Diego Granda-Muñoz, Geovanny Espinel-Alvear, Christian Villagómez-Ramírez, Sonia Avilés-Sacoto, Galo Mosquera-Recalde
Abstract: Worldwide, distribution companies face logistics problems associated with finding proper routes and delivery frequencies, triggering high logistics costs and low service levels. This is the case of an Ecuadorian home appliance distribution company, whose particular concern is reducing its logistics costs by enhancing its supply schedule with optimal routes, thus satisfying its customers. Using the vehicle routing problem with time windows (VRPTW) optimization model as a baseline, and including new restrictions aligned to the companys needs, optimal routes are obtained. Then, a new scheduling model is proposed to cover all the companys requirements to create a favorable supply schedule, respecting the shipping capacity of the distribution center as well as its trucks. As a result, the logistics costs are noticeably reduced because the daily supply is stabilized in terms of money flow with a minimum number of visits while covering
Keywords: Supply schedule; clustering; optimal routes; the flow of money; home appliances.
A joint location-distribution-inventory model for a multi-echelon supply chain network considering multi-sourcing, dropshipping, and lateral transshipment
by Ly Diep Thi Thao, Rujira Chaysiri
Abstract: Competitive pressure in the global marketplace requires enterprises to establish efficient distribution planning and inventory management in a supply chain. This study proposes a framework to optimize distribution and inventory decisions, integrating decisions of opening or closing facilities in a multi-echelon supply chain network under non-stationary demand. The model adopts distribution requirements planning (DRP) and considers flexible distribution strategies, including multiple sourcing, dropshipping, and lateral transshipment to minimize the total expected cost. The original stochastic model has been transformed into an equivalent deterministic mixed-integer linear programming model by using the sample average approximation (SAA) technique. Numerical experiments are conducted to validate the model and its practical applications. The model that adopts multiple flexible distribution strategies outperforms the models that adopt a single distribution strategy. This study is useful for enterprises who sell products through their physical stores and online stores on e-commerce platforms or company private websites.
Keywords: multi-echelon supply chain network; distribution requirement planning; multiple sourcing; dropshipping; lateral transshipment; demand uncertainty; multi-channel distribution; flexible distribution strategy; opening or closing facility.
Selecting the best Logistics Service Providers (LSP) by evaluating the sustainability performance using AHP and Linear Programming Problem
by Jinadari Prabodhika, A.P.R Wickramarachchi, Hiruni Niwunhella, Annista Wijayanayake
Abstract: Sustainability and sustainable development have become buzzing topics in the business world, and contemporary organizations are determined not only to make themselves sustainable but attempt to make the whole supply chain sustainable. Many manufacturers and retailers often outsource their logistics functions to Logistics Service Providers (LSPs) to focus more on their core business process. Due to the competitiveness and the popularity of the sustainability concept, those organizations evaluate their prospective LSPs not only based on economic aspects but also social and environmental aspects. This paper proposes a framework that can be used by organizations when evaluating and selecting LSPs based on their sustainability performance. A Composite Sustainability Performance Index (CSPI) is constructed, incorporating multiple dimensions and indicators related to economic, social, and environmental aspects, which are widely used to measure sustainability performance. The dimensions, indicators, and their relative importance related to CSPI construction is not fixed but could be chosen according to the needs and interest of the organizations allowing provision for flexibility. A Linear Programming Problem (LPP) model is then proposed, which allows the organizations to decide the desired number of LSPs after considering all requirements and limitations. The proposed framework is flexible as it depends on the sustainability requirements of the organization when selecting LSPs.
Keywords: Analytic Hierarchy Process; Composite Sustainability Performance Index; Linear Programming Problem; Logistics Service Providers; Sustainability.
Assessment of interaction among key variables responsible for Perfect Order Fulfillment in an Upstream Supply Chain network
by Rajiv Sharma
Abstract: In supply chain management, perfect order fulfillment is a complex issue that needs in-depth evaluation to increase its efficiency with better customer service. As globalization and digitization have increased in business, it increases the complexity among the different entities of the supply chain. Perfect order fulfillment is subject to various variables such as forecasting, capacity utilization, flow complexity, and technology changes, etc. These variables lead to many problems such as the bullwhip effect, inventory control, supplier relationship, and outsourcing issues, etc. So, the key problem for the companies is to meet order fulfillment perfectly. This paper studies the structural dependency among key variables responsible for perfect order fulfillment in an upstream supply chain network. First, the different variables which affect the supply chain from the supplier front to manufacturer front have been identified through the literature review, and then to model the structural association among them, an interpretive structural modeling approach has been used. Further, to obtain the driving and dependence power of variables, MICMAC analysis has been performed. The results showed that the variables globalization and technology changes possess high driving power which may guide the companies to encounter challenges offered by perfect order fulfillment.
Keywords: Supply chain; Supply chain network; order fulfillment; logistics performance.
Tactical economic business performance measurement system for urban public transport
by Alvaro Neuenfeldt-Junior, Bruna De Oliveira, Vanessa Alves, Julio Siluk
Abstract: With the emergence of new transportation modals, a large part of the population has been looking for better cost-benefit means of transportation. In this context, public transport by bus remains the most traditional, safest, and environmentally sustainable. The present study aims to identify the performance measurement level of tactical economic business aspects of urban public transport to provide a more effective service. A hierarchical structure based on the analytic hierarchy process composed of fundamental points of view and key performance indicators was developed, applied to a university bus line case study linked to the public transport system in the city of Santa Maria, which presented a moderate performance.
Keywords: Performance measurement; Analytic hierarchy process; Critical success factors; Public transport; Multi-criteria decision analysis.
The Pattern of business behavior
Case study: Iran's cement industry
by Seyyedeh Mahsa Hosseini, Vahid Nasehifar, Mohammad Taghi Taghavifard, Vahid Khashei Varnamakhasti
Abstract: A business entity uses a set of business strategies in response to its competitive business environment. Due to companies' less knowledge of behavioral skills, there is a functional gap in achieving organizational goals. The purpose of this study is to identify business behaviors and their impact on the performance of Iran's cement industry. Therefore, indicators and variables of business behavior in Iran's cement industry were determined ,and finally the pattern of business behavior in this industry was developed and the impact of these behaviors on the performance of the industry was surveyed and analyzed. The present study was conducted with a mixed approach. In the qualitative part, by using thematic analysis method and Maxqda.Pro.2018.1 software, data from interviews were collected and analyzed. In the quantitative part, SPSS and Smart PLS statistical software were used to analyze the data from the questionnaires. The statistical technique of structural equation modeling was used to test the research hypotheses. According to the findings, organizing themes including 60 concepts and comprehensive themes including 9 major categories and 218 basic themes were identified. Five hypotheses were confirmed and four hypotheses were rejected. The most important aspects of this research were the novelty of the subject of business behavior and its modeling in different dimensions and components in Iran's cement industry which has not been done in other studies. Also, in the end, practical suggestions for better performance of the cement industry were presented.
Keywords: Business Behavior; Strategy; Performance; Cement Industry; Thematic Analysis; Structural Equation Model.
Social Sustainability Practices by Small to Medium-Sized Enterprises (SMEs) in Developing Countries: A Systematic Review
by Omar Abi Farraj, Andreas Efstathiades, George Papageorgiou
Abstract: The paper consolidates the works of the latest most prominent studies on social sustainability practice and its relationship to Small to Medium-sized Enterprises SMEs performance in developing countries. It highlights the relationship between social sustainability practices, performance indicators and business success.\r\nA systematic literature review, supported by Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines was conducted and 79 eligible studies were selected. The review revealed a focused emphasis on five main themes, namely practices, drivers, barriers, competitive advantage and outcomes. Accordingly, a thematic classification of the extracted data was conducted which is one of the main contributions of this paper. \r\nThe comprehensive classification of the selected studies allowed for deriving important conclusions regarding the relationships among the main themes and identifying possible gaps in the literature. \r\n
Keywords: Social Sustainability; Social Practices; Performance Outcomes; Sustainable Supply Chain Management (SSCM); Small to Medium-sized Enterprises (SMEs); Developing Countries; Competitive Advantage.
A PROPOSED HYBRID VUCA THEORY AND DECISION MAKING FOR LOGISTICS ENTERPRISES IN OMAN DUE TO UNCERTAINTY CONTEMPORARY FACTORS
by Noorul Shaiful Fitri Abdul Rahman, Abdelsalam Adam Hamid, Nur Hazwani Karim, Abdelghani Benayoune, Muhammad Subhan Ishak
Abstract: The Covid-19 pandemic, the implementation of the Industrial Revolution 4.0, the recent fuel price crisis and the vision of the Sultanate of Oman Logistics Strategy 2040 are forcing the Omani logistics sector to determine its capability in handling these four issues simultaneously. This study proposes a decision-making model for small and medium logistics enterprises in Oman for analysing numerous potential business strategies by considering the uncertainty of contemporary factors. A hybrid of multiple-criteria decision-making methods, namely, the analytic hierarchy process, fuzzy link-based approach and evidential reasoning approach, were used in this study. It was found that the "Centralised Business Activities" business strategy is preferable and more essential to be implemented immediately, mainly due to the geographical market positioning reason. This novel study contributes to developing the decision model for the Logistics Enterprises in Oman as a new measurement when dealing with the uncertainty of external factors of the business environment.
Keywords: Operations management; Logistics management; Decision making; Uncertainty supply chain; Small-medium enterprises; VUCA Theory.
Modeling Cloud Computing adoption barriers for Indian SMEs' supply chain using TISM and MICMAC analysis
by Rohit Kumar, Manish Gupta
Abstract: The implementation of CC can have an impact on the performance of small and medium-sized enterprises by changing the process of designing, producing, delivering, and discarding products. CC is advantageous to emerging countries, particularly India, and requires a comprehensive description for proper understanding and application in business. The aim of this paper is to identify the impediments to CC adoption from the perspective of Indian SMEs. The present research work is to identify the barriers to adopting CC in Indian SMEs using extensive literature and the response obtained from experts. The second main objective of this research is to develop an interpretive hierarchy of CC adoption barriers using TISM technique and categorise these identified barriers into different clusters using MICMAC analysis. This paper identifies four driving barriers named: 1) lack of government support; 2) low understanding of CC; 3) limitation of IT system; 4) lack of connectivity
Keywords: digital technology; supply chain integration; supply chain relationship; inhibiting factor for ICT adoption; cloud computing adoption.