International Journal of Logistics Systems and Management (97 papers in press)
Modified Johnson Rule for Two-Stage Flowshop Scheduling with Random Breakdowns
by Fawaz Abdulmalek
Abstract: The two-stage flowshop assembly scheduling problem where there are m machines at the first stage and an assembly machine at the second stage is considered in this paper. In several real world service and production systems, there is more than one parallel machines at stage one and an assembly machine to assemble job components at stage two. The machines at stage one will be subjected to unsystematic breakdowns. The jobs order sequence into the flowshop will be based on three jobs ranking rules, Johnson rule, and two modified Johnson rule, namely Johnson Largest rule and Johnson smallest rule. A simulation model of the two-machine flowshop then will be constructed in which both machines at stage one are subject to random failures. Three simulation experiments will be conducted to examine the effect of the job ranking rules on the makespan. The result showed that Johnson Largest ranking rule gave the minimum makespan over the others.
Keywords: Flowshop Scheduling; Random Breakdowns; Johnson Rule; Simulation.
Integrated Inventory System with Freight Costs and two types of Quantity Discounts
by Ivan Darma Wangsa, Hui Ming Wee
Abstract: In this paper, we investigate an integrated inventory model for single supplier-buyer considering stochastic demand. We consider two quantity discounts with freight environment. The objective is to minimize the integrated total cost incurred by the supplier and buyer. Freight costs are the function of shipping weight and distance with two transportation modes: truckload (TL) and less-than-truckload (LTL) shipments. We develop two optimal models considering all-units quantity discount and incremental quantity discount. The study shows how freight costs and the two discount policies affect the total cost of the supplier and the buyer. Numerical examples are used to illustrate of two models.
Keywords: Integrated inventory; TL and LTL; stochastic demand; all-units quantity and incremental quantity discounts.
Assessment of the Physical Internet Enabled Urban Logistics Using Agent-Based Simulation
by Long Zheng, Pieter Beem, Ki-Hwan Bae
Abstract: The Physical Internet (PI) is a new paradigm in logistics to aim for more efficiency and sustainability via the shared use of hubs and transports as well as the consolidation of shipments. This study investigates the potential of an open mobility web, designed on the principles of PI, in an urban area with e-commerce warehouses. Our motivation is to understand benefits gained by incorporating PI into existing logistics networks. To that aim, a multi-agent based simulation model is developed to demonstrate the efficacy of our proposed solution approach in this modelling framework. Four transportation scenarios simulate a range of advancements from the traditional logistics to PI. The computational results using real data indicate that the PI-enabled mobility web outperforms the traditional logistics on most performance measures of time and cost. We conclude with implications for logistics stakeholders, and discuss limitations and extensions of this study.
Keywords: agent-based simulation; physical internet; urban logistics; interconnected transport logistics; freight transportation.
Sustainable Supply Chain Management: A literature review of recent mathematical modelling approaches
by Janya Chanchaichujit, Quynh Chi Pham, Albert Tan
Abstract: This research maps and defines the modelling approaches and mathematical techniques that have been used in solving supply chain problems in various industries. Therefore, mathematical tools and techniques utilised in sustainable supply chain management research in each industrial sector will be identified, thereby opening up directions for future research. The aim of this research is to review publications in order to examine how various industrial sectors use different modelling approaches to achieve a sustainable supply chain.
Keywords: Sustainable supply chain management; Mathematical modelling approach; Simulation method; Heuristic method; Hybrid model; Analytical model.
Enhanced optimal inventory control policies of perishable products in a retail business: a comparative simulation study under different cost structures
by Naleak Heng, Navee Chiadamrong
Abstract: This paper experiments different replenishment policies of perishable products using simulation-based optimization approach. The main contribution of this study is to recommend the best replenishment policy and whether enhancing a typical periodic review policy can lead to a better outcome. It was found that enhancing a typical periodic review policy with a backroom and a reorder level can lead to a higher net profit. In some instances, integrating both of them together can outperform implementing them alone, as they can complement each other. The finding also suggests that enhancing the base policy by screening out bad items before reaching the customers may not be so cost-effective if the removed items cannot be sold to generate extra revenue or the loss of goodwill is not the main concern. These findings can help shop managers to make right decisions on the optimal inventory policy in a certain situation under an uncertain environment.
Keywords: perishable products; inventory control; retail businesses; replenishment policies; simulation-based optimisation.
Impact of Transaction Costs on Supply Operations and Price Competitiveness in Wholesale Marketing: A Study in Reference to Mexico
by Rajagopal , Ananya Rajagopal
Abstract: Transaction costs make significant impact on determining the logistics and inventory costs in a consumer wholesale products companies. Effective management of transaction cost help companies ensure competitive prices and induce loyalty among the consumers. This paper aims at analyzing the transactions costs and its relationship with wholesale prices. This study critically examines the previous studies on transaction cost approach of wholesaler firms in reference to the cost incurred in their brands using direct-to-customer strategy than having it provided through the retailers. Data in this study has been conducted in reference to two large wholesale outlets in Mexico City. It is argued that wholesaler brands can effectively reduce uncertainty of supplies and increase satisfaction level the pricing expectation. Large wholesaling firms reduce their transaction costs by lowering the margin spread among the suppliers and obtaining supplies nationwide from a limited number of suppliers.
Keywords: Transaction cost; wholesale price; logistics cost; inventory management; customer satisfaction.
A Study of Criteria for Air Cargo Terminal Classification Model
by Treephis Rodbundith, Kamonchanok Suthiwartnarueput, Pongsa Pornchaiwiseskul
Abstract: For global air cargo movement from airport to airport, air cargo terminal is a key success of airlines and air cargo transport at airports. This study is aimed to explore important criteria to air cargo terminals on the new integration of relevant and reviewed variables from academic researches and International Air Transport Associations regulated standards. To examine variables, the investigation of criteria significance is based on opinion and endorsed by 57 air cargo terminal operators covering 474 terminals around the world. Thereafter, the methodology is to evaluate the endorsed criteria and employs Principal Component Analysis for criteria reduction onto correlation and similarity conditions by factor loading scores above 0.6. The remaining criteria are finally re-validated by aviation experts executed into 9 main criteria with 44 sub-criteria. Moreover, the finding of air cargo terminal classification model is tested to cluster air cargo terminals in Thailands major airports with the results of 3 classification. Also, the guideline with factor loading scores from significant criteria is developed for air cargo industry for business investment and decision making purposes.
Keywords: air cargo terminal; criteria and classification; cluster analysis; international air transport association; principal component analysis.
Supply Chain for Sustainable Renewable Energy from Biomass
by Jirasak Ji, Narameth Nananukul
Abstract: A sustainable-energy policy requires the development of economical and sustainable renewable energy systems. The most important step is to ensure that the renewable resources will be efficiently utilized. Biomass is considered a renewable energy resource that is abundant in agriculture-based countries. This research focuses on the feasibility of developing a sustainable resource supply chain plan, by using available biomass as a resource for producing electricity in the Loei province, Thailand. A mixed integer linear programming model has been proposed to determine suitable locations for the biomass power plants, the optimal biomass production, and supplier allocation that result in the lowest operating cost to meet the electricity demand. The availability of different types of biomass, different modes of transportation, and electricity consumption in the Loei province is used to develop the optimization model. An extended model is also proposed to deal with the perishability of biomass. The proposed models can be used and applied by decision makers to perform different types of analysis in order to assist decision making on the location of biomass plants as well as in the distribution plan. The computation results are provided to show how the proposed models can be used to determine the operational plan for using biomass as a renewable resource in the Loei province.
Keywords: biomass; supply chain optimization; biomass power generation; Loei; Thailand.
The Relationship Between Green SCM Practices and Organizational Performance: Evidence from Jordanian Pharmaceutical Manufacturers
by Loiy Bani Ismail, Mohammad Alawamleh, Khaled Aladwan, Ammar Abu Alragheb
Abstract: This paper seeks to explore the effect of green supply chain management practices (GSCMPs) (reverse logistics and green procurement, manufacturing and distribution practices) on the organizational performance (OP) of pharmaceutical manufacturers in Jordan. A questionnaire was designed and distributed randomly among 100 employees of Jordanian pharmaceutical manufacturing organizations. A total of 88 responses were received, of which 79 were usable. The study moves beyond description of the effects of GSCMPs on Op to offer a theoretical model explaining these effects. Thus, it responds to a number of contemporary challenges in Jordan, most importantly the broad need for a solid organizational foundation for the study of GSCMPs and the explanation of mechanisms through which GSCMPs affect OP. The results indicate clearly that GSCMPs collectively and individually affect OP.
Keywords: Green supply chain management; SCM; organizational performance; green procurement; green manufacturing; reverse logistics.
An Integrated Terminal Operating System for Enhancing the Port Security
by Hokey Min, Yong-Kon Lim, Jong-Won Park
Abstract: As a vital link in the global supply chain which dictates the movement and storage of cargo containers at the entry point of a seaport, a seaport terminal can have a profound impact on port security. In particular, a lack of business intelligence about containerized cargo flows coupled with the failure to inspect containerized cargo can cause serious security problems, because unmonitored cargo containers can be used as a tool for bringing illicit contents (e.g., narcotics, explosives, contraband, vermin, toxic pollutants, illegal immigrants, dangerous terrorists) into the port of entry. To prevent or mitigate any illegal activities associated with containerized cargo flows across the vulnerable links of a maritime logistics chain, we propose an integrated terminal operating system (ITOS) that can enhance business intelligence/surveillance throughout the terminal operating process by tracing and monitoring every single movement and storage of incoming cargo containers, while coordinating and synchronizing the entire terminal operations such as the loading/unloading, discharging, and transferring of containerized cargos at the terminal. In addition, to maximize the usefulness of the proposed ITOS, we embed the ITOS within the business analytics framework, while formulating viable strategic options for enhancing the securities of terminal operating companies and their multiple stakeholders such as carriers, shippers, and port administrators.
Keywords: Maritime logistics; global supply chain risk; port security; integrated terminal operating systems.
Cost-based evaluation of different processing rules for backlog and load-building queues in multi-echelon supply chains
by Tarek Al-Hawari, Khalid Aram, Hazem Smadi
Abstract: Backlog and load-building queues introduce delay to supply chains which increase the expected lead time of orders. This study aims to investigate the effects of implementing priority rules on backlog and load-building queues, and the effects of applying different load-building methods on the performance of multi-echelon supply chains based on cost and time measures. Further, the study discovers the impact of improving the lead time of orders on the total cost of multi-echelon supply chains. The study was applied on a two-echelon distribution network that includes one central warehouse, six retailers, and four item types. Customer satisfaction costs were incorporated in the cost structure of the studied network through applying penalties on untimely order deliveries based on delivery windows. A discrete-event simulation model was used to run multiple scenarios of implementing queue priority rules and load-building methods. Results indicated that applying priority rule on backlog queues and altering load building methods are effective in decreasing the average lead time of orders, while they had minimal impact on the total cost of retailers.
Keywords: Multi-echelon supply chains; Simulation; load building; backlog.
Investigating carbon emissions in a production-inventory model under imperfect production, inspection errors and service-level constraint
by Rendy Surya Saga, Wakhid Ahmad Jauhari, Pringgo Widyo Laksono, Anindya Rachma Dwicahyani
Abstract: This paper discusses an integrated inventory model for vendor-buyer system with stochastic demand and service level constraint. The buyers demand follows a normal distribution and the lead time depends upon lot size. The buyer uses a periodic review policy to manage the inventory level. An imperfect production processes and inspection errors are considered in the model. Carbon emissions and energy impacts which are generated from transportation activity and production activity are also included in the model. An incentive and penalty policy are adopted to reduce the carbon emissions generated from supply chain system. The model contributes to the current literature by allowing the inclusion of imperfect production, inspection errors, carbon emissions and setup cost reduction. The objective of the model is to determine the review period, setup cost and the number of deliveries so that the total cost incurred has the minimum value. An iterative procedure is suggested to solve the model. A numerical example and sensitivity analysis are performed to illustrate the application of the model and to show the impact of the changes of key parameters on model behavior.
Keywords: service level constraint; carbon emission; imperfect production; inspection errors; periodic review.
Customers scheduling and clustering as Vendor Managed Inventory enablers
by Mariana Guersola, Maria Teresinha Steiner, Cassius Scarpin
Abstract: The Vendor Managed Inventory (VMI) implementation brings advantages to both vendors and customers, improving service levels and transportation efficiency. This paper aims to propose a two-stages methodology to enable the VMI implementation without Electronic Data Interchange. First, an algorithm is proposed to determine which customers to attend daily, respecting their needs and restrictions while seeking for economies of scale. Then an Iterated Local Search metaheuristic, adapted to the Capacitated p-Median Problem, is proposed to divide the customers into the available trucks. The methodology was applied to a gas distribution case study. Results shown a 20,16% increase in the average quantity of gas delivered per customer, a drop over 90% in delivery delays and a reduction of 31,8% in clusters distances. These results demonstrate that the methodology improves the reliability of the distribution system, ensuring that the VMI implementation brings advantages to all parts involved.
Keywords: Vendor Managed Inventory; Electronic Data Interchange; Capacitated p-Median Problem; Iterated Local Search; Transportation Management; Economies of Scale; Distances Reduction; Delivery System; Liquefied Petroleum Gas; Functional Product.
FACTORS AFFECTING POLICE STATION EFFICIENCY: DEA IN POLICE LOGISTICS
by Zilla Sinuany-Stern
Abstract: This study identifies factors affecting police station performance in Israel. In the first stage, Data Envelopment Analysis (DEA) was used to measure the relative efficiency of 60 police stations, based on two inputs and 16 outputs, including several logistic parameters. In the second stage a Cross Efficiency (CE) measure was then used to rank-scale police stations. We show that CE, which is calculated as the average of its evaluations using the weights of all stations, has a normal distribution. In the third stage, multiple regressions were performed to verify the effect of various logistic and environmental factors on CE efficiency (from the second stage). We found that one logistical factor, the number of vehicles of the population in a stations jurisdiction, was statistically significant. We show that the use of CE in the regression analysis offers a novel approach for dealing with stochastic DEA.
Keywords: efficiency; logistics; DEA; data envelopment analysis; police; police performance; productivity; benchmark; performance; linear programming; statistical inference; regression analyses; Israel.
A new replenishment policy based on emergency orders for a family of products
by Khaled Bahloul
Abstract: This paper considers a two-echelon supply chain with several distribution centres (DCs) and a number of retailers or consumption centres (CCs). Several products are managed and supplied in this chain, but we focus on a family of perishable products (drugs) with a high cost, particularly variable demand and transiting from the same supplier to the same consumption centers. We also assume that the suppliers have an unlimited stock, the delivery time is close to zero (a few hours) and shortages are not authorized at the CCs. In this case, where the constitution of a large safety stock (SS) is not cost-effective, we propose a new ordering policy based on replenishment driven by shortage. This method consists in waiting for a shortage of one product, triggering an emergency order for this product and, at the same time, replenishing other items of the same family. This replenishment policy is based on the mathematical function for calculating the optimal level of each product of the same family by using the probability of not having any shortage before time t. Numerical experimentation compares the total expected costs of the proposed method with a traditional order-up-to-level policy.
Keywords: Ordering policies; Inventory management; Emergency order; Family of products; Cost effectiveness.
Linking IT to supply chain agility: Does knowledge management make a difference in SMEs?
by Alireza Shiranifar, Mohamadhossein Rahmati, Farbod Jafari
Abstract: The purpose of this paper is to examine how information technology (IT) and knowledge management affect supply chain agility in a small and medium-sized enterprises (SMEs) context. Drawing on SMEs, this study hypothesizes and tests the relationship between IT and knowledge management and supply chain agility. Partial least squares-structural equation modeling (PLS-SEM) is performed to test the relationship between the research variables. The results obtained from SEM reveal that IT positively affects knowledge management. The results also indicate that knowledge management and IT significantly affect the dimensions of supply chain agility (demand response, customer responsiveness and joint planning).
Keywords: Information technology; knowledge management; supply chain management; supply chain agility; demand response; customer responsiveness; joint planning; SMEs.
Cannibalization in a Repair/Replacement Inventory System
by Michael Dreyfuss, Alan Stulman
Abstract: In this paper we consider policies for cannibalization in a repair/replacement inventory system where our focus will be the waiting time of a customer in the repair queue. The cannibalization policy will be affected most by the time required to effect the cannibalization and specifically the time required in dis-assembling the functioning components from the newly arrived customer. We will first present a heuristic policy which is calculation intensive and second heuristic which will require far less calculations at each decision point in time. These heuristics, and a comparison between them, will be examined with the aid of simulation.
Keywords: Cannibalization; Waiting Time; Heuristic; Simulation.
Design a Business Intelligence Conceptual Model of Supply Chain Management in Sales
by Ali Bonyadi Naeini, Amirhossein Abaee, Mehdi Zamani
Abstract: Nowadays, in SMEs, esp. the ones highly dependent on sales of products or services, supply chain management has a decisive and critical role for managers to make intelligent decisions and have high agility to utilize the opportunities in a very competitive environment. Identification of important and effective concepts and aspects in the scope of SCM in such enterprises to enhance the intelligence of managers in decision making processes is the purpose of this paper. In this research, by applying the Grounded theory in the literature review and Structural Equation Modeling (SEM) approach, the relations of main variables are validated thru focus groups and questionnaires and the results have been statistically analyzed to develop a conceptual model. Therefore, with the aid of this model the business managers will be directed to dedicate their efforts to enhance their business intelligence on the indentified variables of the model to make intelligent supply chain oriented decisions.
Keywords: Business Intelligence; Supply Chain Management; Decision Making; SME.
The effect of relational capital on performance: knowledge sharing as mediation variables in supplier and buyer relation
by Ratri Amelia Aisyah, Badri Munir Sukoco, Muslich Anshori
Abstract: Interactions that occur in cooperation within supplier and buyer relationships create good relationships manifested by mutual trust and respect, and good friendships between suppliers and buyers. Relationships based on good intentions and manifested through a number of attributes is known as relational capital. Relationships built on trust, to the cause of friendship between suppliers and buyers, mutual respect and reciprocity are what makes the buyer willing to share knowledge with the supplier. Given this shared knowledge, suppliers can help improve buyer performance. Thus, this study aims to examine the effect of relational capital on performance through knowledge sharing into mediation variables. This research uses a quantitative approach to test several hypotheses through PLS (Partial Least Square) analysis and examines a sample of 48 buyers within the cement industry. The results of this study indicate that relational capital positively and significantly influences knowledge sharing, which then positively and significantly affects the buyer's performance. However, relational capital has no significant effect on buyer performance. Knowledge sharing mediates in full relational capital relationships to buyer performance.
Keywords: Relational Capital; Knowledge Sharing; Buyer’s Performance.
Inventory models for maturing and aging items: cheese and wine storage
by Simone Zanoni, Lucio Enrico Zavanella, Ivan Ferretti
Abstract: The greatest part of literature on inventory models deals with items that preserve their value over time or, at least, deteriorate over time. This paper focuses on a special class of items (defined as maturing/aging items) characterised by the increase of their value over time, when appropriately stored: e.g. items which improve their organoleptic and tasteful characteristics over time. The cases which inspired the present contribution belong to food production and supply, as in the case of matured cheeses (e.g. the well known Parmesan), aged red wines (e.g. the well known Barolo) and aged spirits that, once bottled, acquire value over time. However, other types of products characterised by a maturing/aging process could be further identified. The present study introduces and discusses the inventory problem for this class of items, highlighting its peculiarities and its most relevant features. So as to focus on the several and attractive aspects which characterise the problem considered, an illustrative model is presented, with the aim of identifying the optimal maturing/aging period.
Keywords: aging products; ameliorating items; seasoning products; inventory management.
Design of a Green Supply Chain Network by Considering the Possibility of Storage and Location-Routing Problem under Uncertainty
by Saeede Khalafi, Mahnaz Zarei
Abstract: In the literature of operations research, the subject of transportation of products and services and, specifically, the Vehicle Routing Problem (VRP) have always been on priority as an important field of study. To date, a large number of studies have been done in the field of VRP and its different types, but only few of them have looked at the problem from the perspective of environmental factors. In this paper, considering the importance of environmental issues, a model has been designed for a single-objective green routing problem. Such items as discount, heterogeneous vehicles, and multi-depot distribution centers have been considered in this model, which has been designed in the form of a multi-product and multi-periodic model. Then, the effectiveness of the proposed model was illustrated using the problems generated in different dimensions by means of GAMS software. At the end, the accuracy of the proposed model under uncertainty was evaluated through sensitivity analysis, and the obtained results were indicative of the effectiveness and efficiency of the proposed model.
Keywords: Green supply chain; Location routing problem; Mathematical programming; Fuzzy theory.
GREENING LOGISTICS OUTSOURCING: REASONS, ACTIONS AND INFLUENCING FACTORS
by Pietro Evangelista, Lodovico Santoro, Jukka Hallikas, Anni-Kaisa Kähkönen, Katrina Lintukangas
Abstract: This paper explores the environmental practices carried out in the transport and logistics industry. The study assumes the third-party logistics provides (3PLs) perspective and it examines reasons, green initiatives and factors affecting such initiatives. The research involved a case study analysis conducted on 31 Italian 3PLs. The approach used assumes that green initiatives implemented by 3PLs depends from different reasons. Accordingly, three clusters of companies characterised by different environmental sensitivity were identified. The results indicate that each of the three clusters is characterised by different environmental sensitivity, significant differences about the adoption of green initiatives and different influencing factors. The study findings allow to drawn a number of managerial recommendations for improving the environmental sustainability of logistics outsourcing and potential future research avenues.
Keywords: Transport and logistics service providers; Reasons; Green actions; Drivers and inhibitors; Italian logistics service market; Case study analysis.
A review of medical distribution logistics in pharmaceutical supply chain
by Saâdia KHOUKHI, Chakib Bojji, Yahya Bensouda
Abstract: The management of inventories and the distribution networks of medical supplies and pharmaceutical products are among the most important issues in the healthcare world. Medicines stock-outs and improper use of drugs cannot only result in financial losses but also can endanger patient life. Hence, ensuring patient safety by ensuring the availability of pharmaceutical products is the main objective of all healthcare settings. To achieve this goal, many hospitals transfer managerial practices developed in the industrial sector to the healthcare environment. However, the pharmaceutical supply chain has its specific features. Ignoring these characteristics could hinder the process of implementing supply chain management practices and reduce the expected benefits. This paper presents a literature of operations research models developed for inventory control and distribution management across the pharmaceutical supply chain. For that purpose, this paper begins by classifying the reviewed articles into three main groups: 1) Inventory Management, 2) transportation management, and 3) coordination between inventory control and distribution activities. Starting from an analysis of current literature we intend to discuss different modes of supply chain coordination in a pharmaceutical supply chain. Also, in doing so, we point out potential future research directions. Finally, we shed new light on different enablers and barriers faced by practitioners and researchers when implementing supply chain management philosophy in the pharmaceutical supply chain.
Keywords: pharmaceutical supply chain; OR models; drug distribution; pharmaceutical inventory management; combined inventory management and routing problem.
Optimal Allocation of Rolling Stock in Scheduled Transportation Services
by Sundaravalli Narayanaswami
Abstract: Passenger railway transportation services are planned, in advance. Many services are cyclic with 24-hour periodicity for Suburban (city) traffic and, weekly or longer duration periodicity. Railway operators assign physical cabins and locomotives (together known as rakes) to each service for a specified time duration to operationalise the timetables. Multiple constraints are imposed on such resource allocations and a cost is incurred, each in travel time, empty cabin runs and rake compositions. Some constraints are technical for safe operations and others are for system performance improvement by effective and efficient utilization of resources. Effective utilization requires that all demands be met. Efficient utilization refers to optimal utilization of available resources at minimum cost. A multi-commodity network flow model is developed to optimally allocate the given rolling stock, so that all service requirements are met. The network flow model is computationally expensive in resolving real-life problem instances. Therefore a relaxed model using a simulation based heuristic approach is developed and tested on real data from a division of the Indian Railways. The problem context, model, heuristic approach and solutions are discussed in detail in this paper. Managerial insights that emerged from this empirical study are interesting and are presented.
Keywords: OR in Service Industries; Rolling stock; Optimal allocation; Network flow model; Simulation based heuristic.
Selection of supplier management policies using clustering and fuzzy-AHP in the retail sector
by Nicolas Clavijo Buriticá, Monica Yoshida Matamoros, Felipe Castillo, Esteban Araya, Gerardo Ahumada, Gustavo Gatica
Abstract: Supplier development contributes to supply chain integration and performance, thus playing an essential role in any industry. In the retail market, no formal procedures exist for the selection-assignment of supplier development programmes, meaning that respective management is complex and unclear given actor and requirement heterogeneities. Multi-criteria techniques are currently used for selection and evaluation processes. However, no models exist that integrate clustering and multi-criteria techniques together to efficiently select-assign supplier development programmes. This study proposes a four-phase methodology diagnosis, programme design, assignment, and proposal that considers supplier clustering through K-means and multi-criteria fuzzification. Additionally, case-study analysis of 149 retail suppliers in Colombia clustered businesses into high (8), medium (32), and low (109) risk sets, each of which was assigned tailored development programmes. The obtained results support use of the proposed methodology to improve supply chain performance for organizations with many suppliers requiring development programmes
Keywords: fuzzy logic; multiple criteria analysis; analytic hierarchy process; supplier selection; retail.
Efficient Supplier Selection - a three stage multi-criteria decision making approach
by Bhaskar Gardas, Rakesh Raut, Ayush Shrivastav
Abstract: The qualitative and quantitative factors influence the supplier selection problem. The selection of an efficient supplier is a difficult task and is a multi-criteria decision-making problem. In the present study a three stage, analytic hierarchy process (AHP)-technique for order preference by similarity to ideal solution (TOPSIS)-goal programming (GP) was employed for the evaluation and selection of suppliers. AHP was used for identifying relative weights of the selection criteria, then, these weights were taken as input for TOPSIS methodology for ranking the shortlisted suppliers. GP was used for the quantity allocation. This study is intended to guide the organizational managers for formulating the effective policies and strategies for the effective supplier selection process in the competitive environment.
Keywords: Supplier selection; multi-criteria decision making (MCDM); AHP; TOPSIS; goal programming.
Determination of Green Vehicle Routing Problem via Differential Evolution
by Siwaporn Kunnapapdeelert, Ratchaphong Klinsrisuk
Abstract: This paper presents the comparison of PDPTW (pickup and delivery with time window) and Green-PDPTW (green vehicle routing for pickup and delivery problems, with time windows) by using DE (Differential Evolution) algorithm. The main idea of PDPTW is to design the optimal route for transportation by minimizing the total cost. Green-PDPTW aims to design the route by minimizing the emission of direct greenhouse gases i.e. carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). These two concepts were verified by eight standard benchmark instances. DE algorithm is proposed to design the optimal route for these two problems. The computational experiments demonstrate that designing route by minimizing greenhouse gases emission provides cleaner routes than designing routes by minimizing total cost. However, it is not as economical as considering the minimum total cost as the objective function. Since it requires more vehicles and total distance than route that designed based on the minimum total cost concept.
Keywords: differential evolution; vehicle routing problem; transportation; green logistics.
The capacitated vehicle routing problem revisited: using fuzzy c-means clustering
by Henrique Ewbank, Peter Wanke, Henrique Correa, Otavio Figueiredo
Abstract: Distribution and/or e-commerce companies are facing delivery scenarios with increasing complexity. This paper proposes to simplify complex scenarios and find near-optimal solutions by applying a heuristic approach for solving the capacitated vehicle routing problem with a homogeneous fleet using fuzzy c-means as the clustering technique. It also uses a memetic algorithm to determine the number of clusters and an improved fuzzy c-means algorithm for allocating customers to routes. When benchmarked with other methods and compared with 50 known instances from the literature, it indicated an error average of less than 3 percent. These error results presented a lognormal distribution. Due to the nature of the errors studied, a tobit regression has been applied to predict the average percent error in terms of the characteristics of the demand and the distance of each customer. Results also suggest that kurtosis and skewness of the distances among all customers, capacity of the vehicles, and standard deviation of the demand could be used to predict the average percent error, providing a decision-making tool to apply this algorithm in the future for different instances. When compared with other fuzzy clustering techniques, the use of fuzzy c-means reinforced the idea that distant customers should be almost always served by a single vehicle, even if it is not fully loaded. The proposed method presented short execution times and a percent error of 5%.
Keywords: capacitated vehicle routing problem; cluster-first route-second heuristic; fuzzy logic; homogeneous fleet; tobit regression.
Modelling the environmental impact of omni-channel purchasing in the apparel industry: the role of logistics
by Maria Giuffrida, Riccardo Mangiaracina, Giovanni Miragliotta, Sara Perotti, Angela Tumino
Abstract: This paper addresses an identified need of quantitative models in the rising field of omni-channel (OC) purchasing sustainability. It contributes with a detailed assessment of the environmental impact of two processes, Click and Collect (C&C) and Mobile Shopping in Store (MSiS), highlighting the weight of logistics activities. An activity-based model is developed and applied to a base case, that best represents the average purchasing process in the apparel industry, considering both the retailers and the customers perspectives. Sensitivity analyses are performed as well. Results show that MSiS is less sustainable than C&C, mainly due to the heavier impact of transport. For both configurations, the most critical parameter is the distance between the customer house and the store, whereas the customer profile and the location of the customer house (urban vs extra-urban area) are additional significant factors for MSiS. The results of this study are also compared to previous research in the field of e-commerce environmental sustainability.
Keywords: omni-channel; environmental sustainability; logistics; click and collect; mobile shopping in store.
Development of an Automobile Industry Risk Index
by Satyendra Kumar Sharma, Ravinder Singh, Vishad Bhalodia
Abstract: The aim of this research is to construct a Bayesian Belief Network(BBN) Model, which encompasses all the risk factors relevant to the Indian automotive sector that can give a fair, empirical idea as to how much the risk factors drive down the gross turnover of the industry.
The BBN model is used to gauge business, economic and external risks and evaluate its impact on gross turnover of the industry. Empirical model draws a lot of implications to streamline the risk effects in the industry, but it clearly shows that the three factors business risks, economic risks and external risks are not entirely independent and are positively correlated with each other.
Bayesian networks provide a very useful risk assessment tool that takes into account the advantages of both quantitative and qualitative risk assessment methods.
This is a novel, empirical effort to provide a generalized model to integrate all risks domestic, global, economic, legal relevant to the automotive industry.
Keywords: Risk Assessment; Automobile Industry; Bayesian Belief Network; Risk Propagation; Sensitivity Analysis.
System optimal relaxation and Benders decomposition algorithm for the large sized road network design problem
by Saeed Asadi Bagloee, Majid Sarvi, Abbas Rajabifard, Russell Thompson
Abstract: Given a set of candidate road projects with associated costs, finding the best subset with respect to a limited budget is known as the Discrete Network Design Problem (DNDP). The DNDP is often cast as a bi-level programming problem which is known to be NP-hard. Despite a plethora of research, due to the combinatorial complexity, the literature to address the problem for large sized networks is scarce. To this end we first dissolve the bi-level problem to a single-level problem by relaxing it to a System-Optimal traffic flow. As such the problem turns to a mixed integer non-linear programming (MINLP) problem. Second, we develop an efficient Benders decomposition algorithm to solve the ensuing MINLP problem. The proposed methodology is applied to three examples, a pedagogical network, Sioux Falls and a real-size network representing the City of Winnipeg, Canada. Numerical tests on the network of Winnipeg at various budget levels demonstrate promising results.
Keywords: Discrete Network Design Problem; Benders decomposition; Bi-level optimization; System optimal relaxation.
Determining an optimal warehouse location, capacity, and product allocation in a multi-product, multi-period distribution network: A case study
by Chau Le, Jirachai Buddhakulsomsiri, Chawalit Jeenanunta, Aussadavut Dumrongsiri
Abstract: This paper addresses the distribution network design problem in a complex 4-echelon supply chain system that includes factories, internal warehouses, external warehouses and customers. The distribution network contains a large number of products, and considers 20 periods of planning horizon. Product deliveries are made using two shipment methods, direct shipment from internal warehouse and through shared external warehouse, to two groups of customers, domestic and overseas, with deterministic demands. The objective is to determine an optimal location of a new external warehouse, its capacity, and product-facility-market allocation so as to minimize the total logistics cost, including transportation and warehousing costs. A real-world large-scale problem from industry is solved optimally using a mixed integer linear programming model. A sensitivity analysis on three key parameters, product demand, unit transportation cost, and unit warehousing cost, is conducted to find the final solution.
Keywords: Facility location; capacity; product allocation; distribution network; 4-echelon supply chain; multiple products; multiple periods; multi-modal; multiple storage types; case study.
Logistics Management Requirements and Logistics Performance Efficiency: The Role of Logistics Management Practices - Evidence from Egypt
by Hend Amin, Tamer Shahwan
Abstract: This study examines the availability of logistics management requirements, i.e., organizational requirements (OR), informational requirements (IR), and human resource requirements (HRR) and their impact on logistics performance efficiency, particularly the mediation effects of logistics management practices in this relationship within Egyptian engineering industries firms. Data is collected based on a survey questionnaire directed to 194 observations within the selected firms. The operating costs average is used as an indicator of the logistics performance efficiency since it measures the efficiency inversely.
Our findings reveal significant variations in managers perception of logistics management concept among the selected firms. The findings also reveal significant differences among the selected Egyptian corporations according to the availability degree of logistics management requirements and practices. At the same time, the study partially supports the significant impact of logistics management requirements on logistics performance efficiency where logistics management practices play full and partial mediating roles in this relationship.
Keywords: Logistics Management Requirements; Logistics Management Practices; Logistics Performance Efficiency; Emerging Markets; Egypt.
Collaborative last-mile delivery and pick-up in city logistics
by Aishwary Bhasker, Sarada Sarmah, Taebok Kim
Abstract: Collaborative strategy helps city planner and logistics companies to plan for last-mile delivery and pick-up strategy such that it reduces fuel consumption and thus pollution within the city. This paper proposes a mathematical model to evaluate fuel consumption for a routing plan in last mile delivery (or pick-up) for non-collaborative (or traditional) and collaborative strategy. Comparing both the scenario for last-mile delivery and pick-up, the latter strategy outperforms the former with 19.02% reduction in fuel consumption. Results are also analyzed in terms of total carbon emission caused by vehicles of individual companies. Sharing of surplus among the companies due to collaborative strategy is also presented in this study. Furthermore, the paper assesses the implementation of an electric fleet of vehicles in the context of collaborative urban transportation of goods and determines corresponding energy consumption. The results exhibit an improvement of 24.16% in electric vehicles (EVs) in a collaborative scenario compared to diesel vehicles.
Keywords: City logistics; Collaboration; Vehicle routing; Fuel consumption; Electric vehicles.
IT Adaptation in Sugar Supply Chain: A Study at Milling Level
by Rupesh Kumar
Abstract: The purpose of the study is to catalog issues in the sugar supply chain at the procurement and sugar production levels. By a review of prior art and expert panel discussions, certain issues were identified for the facilitation of e-Applications in the sugar production process. The relevance of the issues identified was checked by conducting a field survey. A total of 30 sugar mills in the states of Uttar Pradesh and Uttarakhand, India were targeted, and 120 were collected from the mill managers to identify issues at procurement and sugar production stages. For checking the scope of IT applications, a total of 180 respondents were collected from 120 mill managers and 60 employees of IT companies who provide supply chain IT solutions. On the basis of the findings, the paper proposes certain IT solutions for solving the identified issues which will help in improving sugar cane processing at the sugar production level.
Keywords: Supply Chain Management; Sugar Mills; Procurement; Sugar Production; Factor Analysis; ANOVA; Information Technology.
Reverse logistics practices in Indian pharmaceutical supply chains: A study of manufacturers
by Haidar Abbas, Jamal A. Farooquie
Abstract: In the era of integration and globalization, considering oneself as an independent profit making entity is like believing in a zero sum game. Under the challenges like constantly increasing customers expectations, fierce competition, high product variety, shrunk product life cycles etc. a better option for companies is to win the customers delight (eliminate/reduce their dissonance) as well as recapture the value by their efficient reverse logistics process. Such provision becomes of utmost important when it is related with costly and health &/ life affecting products like medicines.
Thus, this study aims to explore the reverse logistics operations of companies manufacturing the medicines in India. Using suitable statistical tests, the data collected online from sixty five (65) senior level managers/entrepreneurs have been analysed in order to identify and examine the various reverse logistics practices, drivers and barriers of reverse logistics, and the performance parameters thereof. Redistribute as it is if non-defective, customer satisfaction, lesser predictability about returning medicines and helpful in image building are the most cited practice, driver, barriers and perceived performance indicator respectively. Besides enriching the body of knowledge, the findings of this study are expected to help the governments, regulatory bodies as well as pharmaceutical companies to ensure sustainable development whereby the manufacturers receive their fair returns through ethical, environmentally conscious and socially accountable means.
Keywords: Logistics; Reverse logistics; Pharmaceutical supply chains; Pharmaceutical companies; Reverse logistics in pharmaceutical supply chains.
Determination of Criteria Affecting the Executive Dashboard Design to Support Decision Making in Port Authorities
by Mehmet Oguz, Yavuz Keceli
Abstract: Senior executives of a port authority spend most of their time by collecting information and making individual decisions via the collected information. They need customized decision support systems to support these decisions. It is necessary to develop executive dashboards specific to them although very few of them possess such dashboards. Hence, it is a necessity to determine the criteria needed to design such dashboards for an effective decision making. The purpose of this study is to determine the criteria needed to design executive dashboards for port executives so that they can make effective decisions. Within this scope, a target group study comprising of field experts was conducted, and the data obtained were analyzed with the Delphi technique. Consequently, 61 criteria in total were determined in four different criterion groups.
Keywords: Port Management Information Systems; Customized Decision Support Systems; Port Authority Executive Dashboard; Delphi Technique.
Vertical and horizontal impacts of information sharing on a divergent supply chain
by Mansour Rached, Zied Bahroun
Abstract: Despite the tremendous advancements in communication technologies, convincing decision makers in supply chains to establish cooperation mechanisms remains a challenge. This paper aims to raise awareness among supply chain partners regarding the importance of information sharing by assessing the value of upstream (supplier lead time) and downstream (customer demand) information sharing in a divergent supply chain. Through a simulation study, this work investigates the impact of information sharing on the logistic cost of each link horizontally and vertically and for each cost component for three different structures of the distribution network.
The results show that the warehouse benefits the most from information sharing and should implement revenue-sharing contracts to motivate its partners to share their information. In addition, the gains are not sensitive to the structure of the distribution network, and the retailers gains are proportional to their level of demand and unit holding and penalty costs. Moreover, the holding and penalty costs for the warehouse are sensitive to the sharing of supplier lead time information when only holding costs are sensitive to the sharing of customer demand information at the warehouse and retailers.
Keywords: Information sharing; divergent supply chain; vertical impact; horizontal impact; lead time; demand.
Collaborative transportation and urban routing problems: state of classification and literature
by Mouna ATIK EL FTOUH, Naoufal SEFIANI, Mohamed FOURKA
Abstract: Carriers collaboration is achieved when two or more carriers share their requests and resources in order to reduce their routing costs and increase their total profit. In this article we present a classification of carriers collaborative routing problems according to type of planning (centralized or decentralized) and a review of the most popular routing problems related to city logistics, i.e. Multi Trips (MTVRP), Multi depot (MDVRP), Pickup and Delivery Problem (VRPPD) and loading constraints. Based on an existing taxonomy we review those problems in term of variants, objectives and resolution methods. The aim of this paper is to provide a comprehensive and relevant characterization of carriers collaboration problems in urban context.
Keywords: Carrier collaboration; collaboration problems; routing problems; multi trips; multi depots; Simultaneous pickup and delivery; loading constraints; classification; literature review; urban.
ECONOMIC IMPACT OF THE CRISIS ON ZARAGOZA LOGISTICS PLATFORM (PLAZA)
by Rubén Sainz-González, Ingrid Mateo-Mantecón, Jose Baños-Pino, Susana Val-Blasco
Abstract: Undertaking economic impact studies serves to determine the importance of transport infrastructures to the regions and cities in which they are located. While such studies have focused on large infrastructures such as ports and airports, few have examined logistic infrastructures.
In this paper we calculate the economic impact of Zaragoza Logistics Platform (PLAZA) for 2012 and determine the effect of the world economic crisis on this infrastructure. We study the different levels of economic impact (direct, indirect and induced impacts) and these are measured in terms of employment, wages and gross added value (GVA).
The results show that the infrastructure improved its business performance in 2012, with higher levels of the main variables studied, in comparison with those obtained before the crisis in 2005.
Keywords: Economic impact; Input-Output; logistics platform; PLAZA.
Improving company-wide logistics through collaborative track & trace IT services
by Fabian Dunke, Stefan Nickel
Abstract: Under the objective of improving intra-organizational logistics processes, this paper investigates the use of collaborative IT applications based on track & trace technology. We report on company-wide logistics improvements attained through the introduction of a collaborative track & trace IT solution. In a chemical company, we considered the dependent processes of truck arrivals at the main gate and loading operations at stations inside the site. Without track & trace assistance, uncertainties in processing steps and driving times as well as space limitations lead to uncontrolled truck inflow to stations. To achieve a controllable situation, we developed an online IT application where at gate and station real time data is collected. Based on the data, we employed a site entry control ensuring smooth station operations. Logistics performance indicators such as the average and maximum truck number at the station and site sojourn times of trucks were reduced significantly.
Keywords: logistical systems optimisation; logistics information systems; collaboration tools; information sharing; on-site logistics.
CRITERIA FOR CARRIAGE OF DANGEROUS CARGO CLASS I EXPLOSIVES IN BRAZIL
by Sandra Helena Da Silva De Santis, João Paulo Pereira Marcicano
Abstract: This study proposes a set of criteria for the operational procedures of control, handling and road transport of explosive hazardous cargo, its importance is associated with the performance, which facilitates the movement of volatile and extremely dangerous materials. The objective is to identify the parameters for logistical movement, which preserve environmental safety and obey the rules of law. The proposed framework can guide the movement and maintain the quality of the services. The theme is relevant for socio-environmental security and risk prevention in the logistics process. Thus, to obtain the information was used an exploratory research with qualitative approach obtained by means of secondary data as books, decrees, ordinances, and legislation. The research identified points relevant to the quality of the services in road transport of explosive material.
Keywords: Criteria; Explosives; Handling; Quality.
Redesigning a Transportation Network: The Case of a Pharmaceutical Supply Chain
by AFAF HAIAL, Abdelaziz Berrado, Loubna Benabbou
Abstract: Designing transportation networks as one of the most important decision problems in supply chain management has become the focus of research attention in recent years. This paper introduces a framework which deals with the design of a transportation network for pharmaceutical supply chains. It consists of three steps: (i) identifying the configuration of the current distribution network, (ii) designing an optimal distribution network while determining the appropriate location-allocation decisions, and (iii) choosing the most appropriate transportation network through the application of the appropriate multi-criteria decision analysis method (MCDA). The proposed framework is illustrated in redesigning a transportation network for a pharmaceutical supply chain.
Keywords: Pharmaceutical products supply chain; Supply chain Transportation network; Location-allocation; Multi-criteria Decision Analysis.
Reinforced revenue sharing contract thru sharing in sale point by adopting Semi-TDPD
by Mahdi Shafiei
Abstract: In this paper we develop a new coordination contract of manufacturer-retailer in a distribution system. A revenue sharing contract that sharing the revenue between the distribution systems members at sale point as coefficient of product price which integrated Semi-TDPD (Semi Third Degree Price Discrimination) into the model. Semi-TDPD strategy makes it possible to exploit the opportunity of customers behavior that they willing to pay different price to owning the product and bargaining for lower price, by adopting price discrimination strategy. To illustrate the proposed approach, we present some numerical examples. Through these examples we investigate the impact Semi-TDPD on decision variables as well as the well performance of proposed revenue sharing coordination.
Keywords: Revenue sharing; Distribution channel; Pricing; Semi-TDPD; Stackelberg game model.
Rough-Inerval in a Two-Stage Solid Transportation Problems and its Solution
by Akash Singh, Uttam Kumar Bera, Deepshikha Sarma
Abstract: The paper attempts a study on a two-stage formulation of a cost minimization solid transportation problem, where the parameters are considered as rough interval form. A rough interval is based on approximation space and hence the solution of the proposed model obtained with the help of approximation theory. In order to solve the expected value model has been derived and the corresponding deterministic model so obtained is solved with LINGO 13:0 optimization solver. Finally, the methodology and model is illustrated by a simple numerical example at the last.
Keywords: Solid transportation problem; Rough Interval; Expected Value.
Service Quality in Manufacturing Supply Chains: A Bi-directional perspective from Indian SMEs
by Surjit Gandhi, Anish Sachdeava, Ajay Gupta
Abstract: This study investigates the role played by service quality in the supply chains of Indian small-medium manufacturing units and presents models at different junctions which propose and validate that the contributions made by supply chain partners towards service quality lead to satisfaction and loyalty. The research design for this study includes a combination of literature review, exploratory interviews and a questionnaire survey conducted through interview schedule with respondents working in different SMEs situated in Northern India. Both internal and external customer perspectives have been considered. Structural equation modelling has been used for data analysis. Three models showing linkages of manufacturer (manufacturing unit's) service quality with supplier service quality, employee service quality and distributor service quality are developed. The models are empirically tested and are found to be fit. This study would be of interest to SME practitioners interested in strengthening relationships with supply chains partners to achieve win-win situations.
Keywords: Service quality; supply chain; SMEs; service quality factors; supplier; employees; distributor; EFA; CFA; Reliability; Validity; SEM.
Selection of Third-Party Logistics Services for Internet of Things Based Agriculture Supply Chain Management
by SANJEEV YADAV, Dixit Garg, Sunil Luthra
Abstract: Third-party logistics (3PL) service providers can play a major role in the agriculture supply chain management (ASCM) for customer's satisfaction and cost reduction in managing supply chain. Selection of the suppliers is one of the important factors that need to be considered. Since, by deciding best 3PL supplier, competiveness and sustainability of supply chain has been increased. However, this decision become complicated when there is multiple 3PL suppliers having multiple criterion and inaccurate parameters. Moreover, the ambiguity and doubtfulness of expert's opinions enhance the problem. Therefore, a decision making tool based on multi criteria has been used widely as fuzzy-analytic hierarchical process (AHP) approach can be used for selection of best 3PL service providers. The main aim of this research is to develop an outline of different criterion for supplier's selection based on literature review and techniques used for selection of the best 3PL suppliers. Furthermore, this research paper provides a more precise, effective and efficient decision support tool for selecting best 3PL providers. This research may help in increasing the tendency for towards the logistics activities outsourcing to enhance sustainability of IoT-based agriculture supply chain.
Keywords: Third-Party Logistics (3PL); Analytic Hierarchy Process (AHP); Fuzzy set theory; Multi Criteria Decision Making (MCDM); Logistic outsourcing; Internet of Things (IoT); Freight time; Goods and Service.
An Integrated Approach to Order Picking Systems in Warehouses
by Judit Oláh, Zoltán Lakner, Jozsef Popp
Abstract: Locating technologies represent one of the main resource and time saving opportunities of the order picking system. The aim of this study is to examine the two types of order picking strategy used in the warehouse of the enterprise from the perspective of time saving. In order to shorten the picking travel time, a change was initiated in the order of products on the order picking list. The order picking list based on the numerical increase of the original ascending code article international identifier was switched to an order picking list based on the alphabetical order of storage locations. Consequently, preparation based on the desired new order picking list is more effective with higher storage location involvement. Employees performing the order picking system can obtain an ideal route with the order picking list based on the ascending alphabetical order of storage location names.
Keywords: Warehouse management; Order picking list; Order picking system; Time saving; Storage location.
Impact of Technology Based Integrated Responsive Supply Chain on Operational Performance: A Case of a Volatile Market
by Sehar Ishtiaque, Danish Ahmed Siddique, Waqar Ahmed
Abstract: The aim of this paper is to develop a comprehensive model that facilitates an understanding of relationships among information and communication technology, integrative capabilities, operational responsiveness and dimensions of performance in a developing economy. Data were obtain from a survey administered to 140 firrms in the manufacturing industry in Pakistan. Hypotheses testing was done by PLS-SEM using SMART-PLS software. The results show that the best way to achieve operational performance is to better invest in information and communication technology which improves the integrative capabilities along with operational responsiveness, which in turn improves the operational performance. This paper provides insights to many supply chain practitioners to configure their supply chain responsiveness from customer facing to supplier facing through integration.
Keywords: Supply chain integration; supplier operational performance; information and communication technology; operational responsiveness; operational performance; customer operational performance; and PLS-SEM.
Determinants of logistics outsourcing performance among small and medium enterprises
by Joash Mageto, Gerrie Prinsloo, Rose Luke
Abstract: The purpose of this study is to establish determinants of logistics outsourcing performance and their relationship with logistics performance among manufacturing small and medium enterprises (SMEs). The increasing use and challenge of logistics outsourcing require that SMEs establish relationship factors that determine high outsourcing performance to enhance overall logistics performance. Data was collected from 406 SMEs using a structured questionnaire. Factor analysis was applied and four constructs were extracted; three were found to be determinants. Partial least squares structural equation modelling was performed to determine the associations among the constructs. Communication-trust, innovation, and cooperation between the manufacturing SMEs and logistics service providers were identified as key determinants of logistics outsourcing performance. Strong associations were validated between communication-trust, innovation, and cooperation. Only communication-trust was positively associated with logistics performance. The results guide SME managers to promote communication-trust in logistics outsourcing relationships.
Keywords: Logistics outsourcing performance; SMEs; factor analysis; logistics service providers; structural equation modelling; logistics performance; communication; trust; innovation; cooperation.
Benchmarking Efficiency of Indian Retailers using Parametric and Non-Parametric Approach
by Nishant Agrawal
Abstract: The purpose of this research paper is to study the performance of Indian retailers to conclude meaningful insights which can help management of retailers and improve further decisions. The paper has been discussed efficiency of 12 Indian retailers during 2015-2017 using data envelopment analysis (DEA), Malmquist productivity index (MPI) and stochastic frontier analysis (SFA) which is latest powerful efficiency measurement techniques. Total asset and total expenditure considered as input and gross sale, total income considered as output. In DEA technique, CCR and BCC model has been used. Under CCR model, only 4 out of 12 retailers are found to be efficient and 7 out of 12 retailers found to be efficient under BCC model. MPI shows 4 out of 12 Indian retailers progression. SFA is one of parametric approach shows that, no of employee and total expenditure can be considered to driving force for influencing total income of Indian retailers.
Keywords: Data Envelopment Analysis; Malmquist Productivity Index; Stochastic Frontier Analysis; Efficiency; Indian Retailer.
A column generation on 2-dimensional cutting stock problem with fixed size usable leftover and multiple stock sizes
by SUPPHAKORN SUMETTHAPIWAT, Dr. BOONYARIT INTIYOT, Chawalit Jeenanunta
Abstract: We investigate a two-dimensional two-stage cutting stock problem (2D-2CP) with multiple stock sizes when fixed-size usable leftovers are considered. A fixed-size usable leftover is an object with the predefined size that could be used later. Fixed-size usable leftovers can reduce the waste area and therefore can help construct better cutting patterns. A mathematical model is proposed in a set-partitioning form where the sub-problems corresponding to two-dimensional knapsack problem (2DKP) with fixed-size usable leftovers are generated for optimality testing. A column generation technique is applied in an attempt to find a solution that minimises a total waste. Moreover, two different practical integer solution finding strategies are proposed. The algorithms are tested on a real-world dataset using various initial solution patterns and analysed. Additionally, the effect of the usable leftovers is investigated when compared with the prior literature that used the same dataset on the 2D-2CP problem without considering usable leftovers.
Keywords: two-dimensional cut; cutting stock problem; column generation; usable leftover; master problem; sub-problem; guillotine cut; stock size; b&c; heuristics.
On the Optimality of Inventory and Shipment Policies in a Two-level Supply Chain under Quadratic Price Dependent Demand
by Dega Nagaraju, Burra Karuna Kumar, S. NARAYANAN
Abstract: In this paper, a two-level supply chain consisting of a single-manufacturer supplying a single kind of product to a single-retailer is considered. A mathematical model is developed for both the centralised and de-centralised supply chain. The novel idea of the proposed model is that the demand is expressed as a quadratic function of the retailer's unit selling price. Ordering/setup costs, carrying costs and transportation costs are considered for model development. Replenishment quantity at the retailer and shipment frequency from manufacturer to retailer are considered as the decision variables. The objective of the proposed model is to demonstrate the optimality of total variable costs of the respective retailer, manufacturer and the supply chain under quadratic price dependent demand. Computer program is written in MATLAB and the model is solved with the help of a case study data. Further, the sensitivity analysis is carried out and finally, managerial implications are derived.
Keywords: Two-level supply chain; Quadratic price dependent demand; Replenishment quantity; Shipment frequency; Sensitivity analysis.
Prioritization of Success Factors to Sustain Buyer-Supplier Dyadic Relationship and its Impact on Business Performance
by Sushobhan Dutta, SANJIB KUMAR DAS, Milind Akarte
Abstract: The study elucidates critical success factors to sustain dyadic relationship between buyers and suppliers of Indian pharmaceutical industry and its influence on business performance. The success factors were identified based on social exchange, transaction cost, relationship marketing theories and an extensive literature review, though such literature relevant to Indian pharmaceutical sector is scanty. Data was collected through a questionnaire survey related to relationship information from buyers and suppliers of several pharmaceutical industries. Statistical analyses like regressions, one-way ANOVA, post hoc, were applied to analyse the data. Analytic hierarchical process was applied to validate prioritisation of success factors obtained from the statistical analysis. The authors analysed prioritisation of success factors and its impact on business performance from both buyers' and suppliers' perspective. The study deliberates in macro-ergonomic approach in formulating healthier relationship between buyer-supplier for better supply chain and enhanced performance in strategic procurement.
Keywords: buyer-supplier dyadic relationship; business performance; supply chain; pharmaceutical industry.
Presenting a Model for Scheduling Natural Gas Transmission via Pipeline Using a Mathematical Programming Model
by Amir Abbas Shojaie, Tayebe Pour Ebrahimi Baghaei
Abstract: Given that natural gas is among the most important yet low-cost sources of clean energy, the need for gas transmission facilities for dispatching from production hubs to the consumption nodes has been grown increasingly. Considering the high cost of such facilities, optimal design of the facilities and optimization of the gas transmission operation are of paramount importance. In the present research, the aim is to present a hybrid model based on weighted sum and scale method to optimize the operation of gas transmission networks. The model has two objective functions: (1) minimization of the operation and annual maintenance costs, and (2) optimization of the system performance during its useful life. Hybridization of the two objective functions has been the main focus of this research. The problem is constrained by such limitations as maximum allowable pipe operation pressure, critical gas flow velocity, gas flowrate and pressure at different inlet and outlet points, temperature at injection and withdrawal points, operational constraints of the gas compressor stations, operational costs, and annual facility maintenance costs. The proposed model was tested on a real case, which data was provided by National Iranian Gas Company, and solved using Particle Swarm Optimization (PSO) algorithm, with the results indicating appropriate efficiency of the presented model for solving real cases.
Keywords: hybrid model; weighted sum method; scale method; PSO; optimization; gas transmission.
Comparing the development of Turkey and Poland as a potential logistic hubs in context of international logistics
by A. Zafer Acar, Zbigniew Bentyn, Batuhan Kocaoğlu
Abstract: By the reasons of the new plans to reinvigorate the trade route between Asia and Europe, the countries Turkey and Poland may become important international hubs of logistics. Thanks to the unique location of the countries and potential to economic development they create a pair of alternatives for investors willing to interconnect Asia and Europe. The comparison of the development in logistic performance allowed to stress the differences in the development of both regions. The analysis of logistics infrastructure indicates directions and possible development in the future. The aim of this paper is to compare current developments of both countries in terms of logistics performance. As data suggest the position of the countries is similar and promising. That allows forming a positive influence on future development of business especially focused on international logistics.
Keywords: international logistics; transport; logistic performance; trade; infrastructure.
Inventory control in Healthcare supply chain management using Apriori and Gravitational Search algorithms
by J. Arul Valan, E. Baburaj
Abstract: Due to this kind of demand, healthcare supply chains (SC) need to keep high inventory levels to ensure high availability of medicines to save people' lives. We develop a method that effectively utilises the data mining concepts as well as gravitational search algorithm (GSA) for optimal inventory control. The proposed method consists of two key functions, mining association rules for inventory and choosing SC cost-impact rules. Initially, the association rules are mined from EMA-based healthcare inventory data. After that, SC cost-impact rules are chosen for every SC member using GSA. The obtained SC cost-impact rules will possibly signify the future state of inventory in any SC member. Furthermore, the level of holding or reducing the inventory can be determined from the SC cost-impact rules. Thus, the SC cost-impact rules that are derived using the proposed method greatly facilitate optimal inventory control and hence make the supply chain management more effective.
Keywords: Apriori; SC cost; SC cost-impact rule; EMA-based inventory; Gravitational Search Algorithm (GSA).
Augmented Reality in Logistics: qualitative analysis for a managerial perspective
by Marco Remondino
Abstract: Immersive technologies, namely virtual and augmented reality, are witnessing a growth in popularity, especially in creative fields, like videogames and film businesses. These technologies can also be effectively applied in other industrial sectors and their use can foster value creation and enhance efficiency and effectiveness, in a managerial perspective. The applications of augmented reality are analysed within the industrial field of logistics, according to three directives: training, operations and transport. A qualitative analysis is carried on to identify potential uses in this (and related) fields and a managerial perspective are proposed, identifying specific KPIs and heuristics for the three aforementioned areas. Results from the literature, field analysis and classification through KPIs point to effective utilisations of AR in logistics, both for training new (and often temporary) resources and in specific and core operations, like picking in warehouses and transport of goods.
Keywords: augmented reality; logistics; value creation; training; warehouse operations; transport; managerial KPIs.
Green Supply Chain Network Design Considering Inventory- Location- Routing Problem: A Fuzzy Solution Approach
by Hassan Mina, Sobhgol Gholipour, Amir Ashoftehfard
Abstract: The growing rate of population and technological advancement have led to an increase in natural resource consumption, which has caused irreparable damage to the environment. The implementation of green supply chain management is one of the most effective ways to deal with environmental degradation. Therefore, in this paper, a bi-objective mixed integer linear programming model is developed to design a green supply chain network. In the proposed model, the possibility of customer storage, being faced with shortage, locating of distribution centres, green vehicle routing problem, split delivery, multi-depot vehicle routing problem (VRP), capacitated VRP, and uncertainty in demands will be considered. The aim of the proposed model is to minimise the total cost and total shortages simultaneously and, therefore, a fuzzy solution approach is applied for this purpose. The results of implementing this model in a production chain of automotive parts in Iran indicate the exact and efficient performance of the proposed model.
Keywords: Green supply chain management; Mathematical programming; Location-routing problem; Fuzzy theory.
An EOQ deteriorating inventory model with different types of demand and fully backlogged shortages
by Abu Hashan Md Mashud
Abstract: The objective of this paper is to develop a deteriorating EOQ inventory model according to consideration of the price, stock dependent demand and fully backlogged shortages. In this model, it is described that the demand functions are: 1) a linear price with stock dependent; 2) price with negative power of constant; 3) exponential function of the price. The deterioration is considered as an instantaneous, i.e., when the item stock in retailer's house after any time deterioration will start. If there any shortages are allowed then it is fully backlogged. The corresponding inventory problem forms a nonlinear constraint optimisation problem. To optimise the problems, the Taylor series expansion is used and considered up to second order term to find the closed form of cycle length and total cost. To validate our result, a comparative approach between our result and some of other meta-heuristics algorithm is given. Also, a sensitivity analysis is being carried out to study the effect of changes of different inventory parameters while changing one parameter at a time and keeping the others value of parameters unchanged.
Keywords: fully backlogged shortages; inventory; deterioration; different price dependent demand.
A meta-heuristic for a bi-objective multi-commodity green distribution network
by Malika Nisal Ratnayake, Voratas Kachitvichyanukul, Huynh Trung Luong
Abstract: This paper presents a bi-objective optimisation model for solving the location-allocation problem (LAP) of a distribution network that consists of four echelons including suppliers, manufacturing plants, distribution centres and customers. Multiple product types and raw materials are considered. A bi-objective mathematical model is formulated to minimize the total costs and the green-house gas emissions arising from the location-allocation decisions. A meta-heuristic algorithm is developed to solve the proposed mathematical model. The proposed algorithm was implemented using Multi-Objective Particle Swarm Optimisation (MOPSO) and Multi-Objective Differential Evolution (MODE) solution methods and results were analysed.
Keywords: meta-heuristics; location-allocation problem; multi-commodity distribution network problem; multiple objective optimisation; green supply chain design.
Exploring the moderating role of product type in Indian m-commerce fashion and electronics market
by Shekhar Singh, Sandeep Shrivastav
Abstract: With m-commerce now contributing up to 70% of total sales for Indian e-tailers, research efforts into related marketing strategies tailored for improved customer experience across touch points and platforms have intensified. This paper has two main objectives: to empirically test a research model advancing the understanding of smartphone-based mobile shopping in India and to study the impact of product purchase context on consumer behaviour through a multi-group analysis performed on two broad product categories, i.e., electronics and fashion. Structural equation modelling was performed on primary data collected from 344 existing online customers in order to validate and examine the proposed research model. The findings provided evidence regarding the importance of perceived usefulness, perceived risk and perceived self-efficacy for long-term continued usage. Additionally, the findings also revealed the moderation influence of product type on two relationships: one between perceived risk and purchase intention and second between perceived self-efficacy and purchase intention.
Keywords: e-commerce; m-commerce; online shopping; moderation effect; product type; traditional platform; smartphone.
Sustainable open-loop supply chain network design considering location routing problem: A hybrid approach based on FAHP, FTOPSIS and mathematical programming
by Shiva Zandkarimkhani, Mohammad Mahdi Nasiri, Jafar Heydari
Abstract: This paper proposes a two-stage approach for designing the sustainable reverse supply chain network. In the first stage of the proposed approach, the values of potential locations from the social perspective will be evaluated and computed using a hybrid approach of fuzzy analytic hierarchy process (FAHP) and fuzzy TOPSIS (FTOPSIS). Then, in the second stage, a multi-objective mixed-integer linear programming model is applied to develop a sustainable open-loop supply chain network for cost minimisation and for the maximisation of the social value of the established locations. In the proposed model, location-routing decisions, discounts on purchases from suppliers, storage, and encountering with shortages are simultaneously taken into account. Finally, the proposed model is validated using the data of a PET manufacturing company in Iran. The results confirm the efficiency and effectiveness of the proposed approach.
Keywords: Reverse logistics; Sustainable supply chain; Mathematical programming; Multi-Criteria Decision Making; Fuzzy theory.
A Multi-Objective Model for Minimizing Makespan and Total Travel Time in Put Wall Based Picking Systems
by Ehsan Ardjmand, Eyad Youssef, Gary R. Weckman, William A. Young II, Heman Shakeri, Adam Moyer
Abstract: In this study, a multi-objective order batching and picker routing model for minimising the total travel time and makespan in a put wall-based picking system is proposed. A put wall is a hardware composed of containers that is usually used as a sorting station. Put walls usually have limited capacity and can accommodate only a part of received orders at a time. Thus, in put wall-based picking systems, order batching and picker routing should be considered along with the scheduling of the orders on the put wall. To solve the problem, a genetic algorithm (GA), a coevolutionary genetic algorithm (COGA) and an archived multi-objective simulated annealing (AMOSA) are proposed. It is found that GA and COGA offer a more diverse set of solutions to the problem compared to AMOSA.
Keywords: Order Batching; Picker Routing; Order Picking; Put Wall; Genetic Algorithm; Simulated Annealing.
Optimizing multi-objective facility location/allocation using the fuzzy group decision making
by Mohamed Ali ELLEUCH, Frikha Ahmed
Abstract: Selecting a set of potential facility sites is a difficult multi-criteria issue and the objectives weighting is a critical part of the decision making process. However, in order to include as much information as possible, analysts usually try to combine the opinions of several experts. This paper work presents a hybrid approach based on the actual conditions of a case study and on the opinions of four industrial Tunisian experts. The overall objective of this paper is to consider multi-criteria to calculate global priority weights using the fuzzy analytic hierarchy process (FAHP) and PROMETHEE method. After that, a new multi-objective facility location/allocation problem model, which combines FAHP-PROMETHEE and mathematical programming (MP), namely the PROMETHEE-MP model, is tested. The novelty of the proposed model is the simultaneous combination of relevant factors, which are difficult to interpret and cost factors which require network distribution.
Keywords: Criteria weighting; Expert opinions; Fuzzy multi-criteria decision making; FAHP-PROMETHEE; PROMETHEE-MP; Location/allocation problem.
Green Supply Chain Management in an Emerging Economy: Prioritizing Critical Success Factors Using Grey-Permutation and Genetic Algorithm
by Yong J. Wang, Amir Karbassi Yazdi, Alireza Rashidi Komijan
Abstract: This study attempts to find and prioritise critical success factors (CSFs) for green supply chain management (GSCM) in an emerging economy. First, extant literature is reviewed and initial 67 CSFs from previous studies are extracted. Then, responses are collected from logistics industry leaders in Iran based on Delphi method. The remaining 41 CSFs are prioritised by grey-permutation method and genetic algorithm. The ranking of the 41 CSFs for GSCM is created and then discussed. The ranking provides important implications for implementing GSCM in emerging economies and draws managers' attention to critical issues in an uncertainty environment.
Keywords: Green Supply Chain Management (GSCM); Critical Success Factor (CSF); Grey Relational Analysis; Permutation; Multi-Criteria Decision Making; Genetic Algorithm (GA); Logistics; Emerging Economy.
Optimization of an integrated parallel distribution system by including network marketing
by Mahdi Shafiei, Mohammad Modarres Yazdi
Abstract: Network marketing is a business model that depends upon a network of distributors for growth, such as in multilevel marketing. A direct selling method features independent agents that make up a distribution network for goods and services. This paper provides a framework to study the network marketing by adopting the traditional channel. To motivate all distributers in network marketing as well as retailers, it is required to design a well-balanced distribution and pricing system. The allocated commission for distributers in different layers of network marketing is part of pricing system, which is vital. In this paper, we develop an approach to determine all elements of system, including product price, wholesale price as well as commissions in network marketing simultaneously. A game model is applied to optimise the pricing and determine commission and number of layer of network marketing structure. A numerical example illustrates our proposed approach for better understanding.
Keywords: Distribution channel; Pricing; Network marketing; Optimization; Game theory.
Logistic Resources Allocation in Supply Chains: A Utility Decentralized Optimization Approach
by Doraid Dalalah
Abstract: In this paper, a continuous review policy in a supply chain is considered in which risk averse suppliers ship products to their corresponding retailers. The suppliers non-cooperatively compete by acquiring more logistic resources of the supply chain to satisfy the random retailers demand so as to increase their benefits in a decentralized manner. An optimization problem is formulated to model this SC with two main constraints: the demand and the stocking delays. The solution allocates the suitable shipping rates that increase the social benefit of the supply chain players. Different experiments were conducted to validate and demonstrate the merits of the model. It was found that the shipping protocol employed at the supplier side rapidly drives the SC to optimal shipping rates that maximize the utilities in decentralized approach. The model can be applied to fast response supply chains such as short shelf-life products, food supply chains, blood supply chains and perishable items.
Keywords: Supply Chains; Resource allocation; Inventory; Utility; Non-Linear Optimization.
Logistics capabilities measurement in the fractal supply network
by Ramin Bahadori, Sameh M. Saad
Abstract: Measurement of logistics capabilities will enable firms to provide order winners by adding value for products and services during the different stage of supply chain to win the competition and enhance firm's performance and customer's satisfaction. Therefore, the purpose of this research is to develop a fuzzy-AHP multi-criteria decision-making model to measure logistics capabilities in the fractal supply network. The key areas of measurement within a fractal supply network are identified and a hierarchical model is proposed with a set of generic measures. In addition, a questionnaire is developed for pair-wise comparison and to collect opinions from practitioners, researchers and managers to validate the proposed model. The relative importance of the measurement criteria is assessed using analytic hierarchy process (AHP) and fuzzy-AHP. Hence, the validity of the model is confirmed with the results obtained.
Keywords: Fractal supply network; logistics capabilities measurement; supply chain; multi-criteria decision-making; Fuzzy-AHP.
Supply chain innovation performance evaluation based on cross efficiency concept: Case study of Supply Chain Innovation Awards Winners, Runner-ups and Finalists
by Hassan Arabshahi, Hamed Fazlollahtabar
Abstract: This paper suggests a DEA-based structure for efficiency evaluation of supply chain innovations considering innovation risk and performance improvement. In this model, risk paradigms of supply chain innovation and popular supply chain performance measures are considered as the input and output of CCR-output oriented model respectively. Defect of DEA in ranking the efficient units has been solved by cross-efficiency concept and a practical case study of Supply Chain Innovation Award's winners, runner-ups and finalists is implemented. The obtained results lead to develop the 'effective innovation' concept within the supply chain management field which provides an innovation with the lowest possible risk and the highest positive effect on supply chain performance measures.
Keywords: Supply Chain Innovation; Innovation Risk; Efficiency Evaluation; Data Envelopment Analysis; Supply Chain Innovation Award.
The Supply Chain as part of Knowledge Management in Organizational Environments
by Carlos Alberto Schettini Pinto, Augusto Da Cunha Reis, Marco Antonio Barborsa Braga
Abstract: The objective of this study is to evaluate how the existing processes flow in supply chain management (SCM) and knowledge management (KM) work and how they are applied in organisational environments. Both areas of knowledge knowledge management and supply chain management are usually handled independently. Based on the review of the literature, mainly with the databases of Science Direct and Emerald, we propose a hybrid model that embraces the two forms of interaction. Finally, the article presents the conclusions of the study and presents proposals for future research.
Keywords: Supply Chain; Knowledge Management; Organizational Environments; Collaborative Intelligence; Action of knowledge management in the supply chain management.
Transforming towards a Smarter Supply Chain
by Shubham Tripathi, Manish Gupta
Abstract: Present day supply chains are becoming complex and uncertain, and numerous technological innovations are being incorporated to enhance them, making supply chains smarter. The purpose of this paper is to build up a transformation map to move towards smart supply chain. The paper presents a framework to formulate transformation strategy and discusses implementation strategy in detail. Several factors to consider while taking the transformation decision are also discussed. Various reported case studies and actual implementation reports of individual technologies are considered to understand and report the impacts (observed and speculated) of these transformations. Smart supply chains are critical for Industry 4.0 (fourth industrial revolution) and their need has been highlighted by numerous researchers but the literature on how to evolve into one is scant. Understanding transformation towards smart supply chain and its impacts will guide and motivate practitioners in restructuring their supply chain.
Keywords: Smart supply chain; Supply chain transformation; Supply chain innovation; Enabling technologies; Digitization; Digital supply chain; Industry 4.0; Smart.
A note on the stochastic nature of lead times in multi-echelon supply chains
by Subrata Saha, Peter Nielsen, Zbigniew Michna
Abstract: Recent supply chain research has concluded that stochastic lead times are a significant source of bullwhip effect in reorder-based supply chains. Despite this, the study of lead times and their nature has received remarkably little attention in literature. In this research we prove there exists an interdependency between lead time and service level measure, and thus the magnitude of the bullwhip effect. In a multi-echelon supply chain setting, the decision maker can experience disproportionate bullwhip effect. One cause of this is the fact that lead time distribution may likely stem from skewed and peaked distributions. As a member of a multi-echelon supply chain, a firm can experience an order variance that depend on the total number of echelon and information about their lead-time dependencies. These results correspond well with the few contributions found in literature showing actual lead times.
Keywords: Stochastic lead times; bullwhip effect; supply chain.
Supply chain routine issues in Indian FMCG manufacturing firm
by Sachin Modgil, Rohit Kr Singh, Vandana Sonwaney
Abstract: Supply chain is an integral part of operations at any firm especially in manufacturing environment. Supply chain also helps in managing and coordinating the business activities effectively. Today, every business needs to look for the changes that are impacting the business. This continuous monitoring of the market helps firms to make strategic moves to keep business successfully. The sustainable objective of the firm can be achieved with the help of smoothly running supply chain system. The present study aims to analyse a case from biscuit manufacturing company from India. The study identifies the status of firm performance in supply chain and identification of issues. The study can provide the solutions for tangible and intangible benefits for the firm. A situations-actors-processes-learning-action-performance (SAP-LAP) approach has been applied. This analysis can help the firm to compare the existing status of performance with preferred performance for the firm.
Keywords: Performance Issues; SCM; SAP-LAP; Biscuit Manufacturing.
A DEA APPROACH FOR EVALUATION OF OPERATIONAL EFFICIENCY: CASE STUDY OF A LOGISTICS FIRM
by Radha Ramanan, D. Jayakrishnan, M. Vishnu
Abstract: Cost minimisation is one of the key challenges faced by logistic industries across the world. As the number of customers increases, it becomes absolutely essential to make maximum utilisation of the existing resources to ensure quality customer service. The huge amount of data available with the firm under study is analysed using data envelopment analysis (DEA) and turned into valuable insights that could be used by management in taking right informed decision. The results show that about half of the transporters have efficiency value less than the average, indicating a huge scope for improvement. Related suggestions for efficiency improvement using DEA slack results are also presented. The decision making units (DMU) that are considered are the individual trucks. The findings of the study provide useful insights to the management in decision making at all the three levels, viz. operational, tactical and strategic.
Keywords: Logistic firms; Efficiency; Data Envelopment Analysis; Decision Making Units.
Enhancing Queuing efficiency using Discrete event Simulation
by Kimsy Gulhane
Abstract: Operational efficiency of the hospitals should be taken care of. Purpose of research is to manage queues in hospital through simulation. For simulation, data is collected from real or original system. Arrival times of patients and service time of the server is collected from hospital. Data is identified with a particular distribution and then new data is generated using random variate generator of that distribution. Simulation is conducted and output is analysed. If one server is overloaded, then suggestion to add another server is given. The hospital keeps a benchmark that waiting time should not be more than two minutes. Waiting time in queue is calculated with two servers. Then t-test is applied to check the benchmark. The objectives of the research are: 1) to analyse the existing queuing system using discrete event simulation; 2) to suggest the changes in the system; 3) to analyse the performance of the system after change. This research aims to contribute to the body of knowledge. Issues in hospital are resolved through simulation and modifications in queuing are done.
Keywords: Queuing system; Discrete Event Simulation; Replications in simulation.
A mixed integer linear programming model for designing a green closed-loop supply chain network considering location-routing problem
by Alvand Sadeghi, Hassan Mina, Niloofar Bahrami
Abstract: In todays business environment, reusing the products could result in a great deal of supply chains cost reductions. Additionally, environmental regulations and customers increasing expectations leave companies no choice but applying the return policy. In this regard, designing a supply chain network incorporating the reverse flow can provide environmental requirements in addition to economic objectives. In this paper, a new mixed integer linear programming (MILP) model is developed for a closed-loop supply chain network (CLSCN) design. The proposed model is multi-period and multi-product that covers facility location and routing of heterogeneous vehicle fleets, simultaneously. The efficiency of the model is validated based on a real case in production and distribution chain of automotive spare parts manufacturing company in Iran. Managerial insights are gained through the numerical results.
Keywords: Closed-loop supply chain; Location-routing problem; Mixed integer linear programming model.
Mapping Supplier Selection Methods and Criteria in the Scoring and Assessment Sourcing Process: Case of Logistics Activities
by Samia LAGHRABLI, Abdelaziz Berrado, Loubna Benabbou
Abstract: This research brings to evidence interesting associations between supplier selection methods and criteria when outsourcing logistics activities. The study was conducted in two phases. First phase dealt with a systematic literature review that was carried out to identify characteristics of the supplier scoring and assessment process. It generated an exhaustive presentation and classification of supplier selection methods and criteria needed for evaluation and selection of logistics suppliers. Second phase handled an association analysis which allowed to unfold interesting associations between supplier selection methods and criteria. This research study yielded important findings, that is, the criteria and methods typically used for supplier scoring and assessment are not homogeneous across logistics activities. In general, each logistics activity is linked to specific selection methods and criteria. Meanwhile, some interesting high order association rules linking supplier selection methods to selection criteria emerged to be commonly used across all the logistics activities.
Keywords: Logistics; Outsourcing; Associations Rules; Supplier Selection Methods; Supplier Selection Criteria; Supplier Scoring and Assessment.
An interactive multi-objective fuzzy linear programming model for hub location problems to minimize cost and delay time in a distribution network
by Fahimeh Rahmanniyay, Jafar Razmi, Andrew J. Yu
Abstract: Hub location models are used to design a distribution network. Hubs are particular facilities that work as connecting, and dispatching points in distribution systems. This study presents a new multi-objective mixed-integer linear programming model for a multi-capacity p-hub median problem under uncertainty. Since delivery time is one of the essential factors considered in the design of a distribution network, the presented model aims to minimise the shipment and establishment cost, as well as delay time of a distribution network in a supply chain where demand, transportation time and establishment cost are uncertain. To cope with these uncertainties and the multiple objectives in the model, we applied an interactive fuzzy framework. Furthermore, the viability and effectiveness of the model and the framework are explored with a number of sensitivity and business analyses.
Keywords: Supply chain; Distribution network; Hub location problem; Multi-objective; Fuzzy multi-objective linear programming; Delay time; Uncertainty; Logistics.
Literature review on successful JIT implementation: benefits, obstacles and critical success factors.
by Fatima Ezzahra Sebtaoui, Ahmed Adri, Said RIFAI
Abstract: The aim of this paper is to review the literature related to just-in-time (JIT) implementation. After going through a large number of papers related to the subject, the JIT implementation practices employed by successful manufacturing organisations have been extensively reviewed and analysed. This study also discusses the critical success factors and facilitators of JIT implementation in an organisation, and contains a comprehensive listing of publications in the field of JIT implementation. The study has reported 21 different benefits obtained by companies after a successful JIT implementation. In addition, this research reduces the list to identify the essential benefits that must be focused on. The study further indicates that management commitment, quality management, education and training are the main critical success factors in the JIT implementation, and that management, employee and knowledge are the main obstacles of JIT implementation.
Keywords: Just-in-time; JIT; JIT implementation; inventory management; pull manufacturing; Lean manufacturing; waste reduction; Kanban; MRP.
Location routing problem with delivery modes
by Junko Hosoda, Takashi Irohara
Abstract: To realise efficient delivery, the location routing problem (LRP), which determines the locations of the facility and the vehicle routes, needs to be solved. Previous studies have attempted to improve the delivery efficiency of a route delivery, which is an efficient delivery mode if customers are densely located. However, if customers are sparsely located, route delivery is not efficient because the fixed costs of the vehicle become too expensive. In this case, courier delivery, i.e., delivery by a third party, is more efficient than route delivery because the courier delivery costs are proportional to the weight of the delivery amount and delivery distance. In this paper, we extended the LRP model to add the courier delivery model. Our model can select a suitable delivery mode for each customer by evaluating the trade-off between the courier delivery costs and the route delivery costs. The results of numerical experiments are shown.
Keywords: location routing problem; delivery mode; mixed integer programming; courier delivery.
Assessing the Impact of Containership Size on Port Demand and Infrastructure Development: A Case of the Busan Hub Port
by Hokey Min, Gunwoo Lee, Chan-Young Jun, Min-kyu Lee
Abstract: In parallel with the continuous growth of international trade, the size of containerships has grown rapidly over the last several decades. The rationale being that the larger the capacity of a containership, the lower the shipping cost per TEU and the greater the shipping volume it can handle. The increased use of larger containerships, however, causes serious concerns for many ports around the world, since the existing port infrastructure and shipping network configurations are not designed to handle mega-containerships such as post-Panamax containerships. One of those concerns includes the vicious circle of never-ending port capacity expansion following the vessel size arms race. To ease such concern, the port authority should develop wise port development and reconfiguration strategies, which can accommodate the need for larger vessels and subsequently increase port revenue while minimising the financial burden associated with port development and reconfiguration. With this in mind, we examined whether the ports ability to handle larger containerships had any impact on its attractiveness for inducing greater demand based on the case study of the Busan hub port in Korea.
Keywords: Maritime logistics; port demand management; stochastic model; a mixture of normal distributions; case study.
Impact of additive manufacturing in different areas of Industry 4.0
by Abid Haleem, Mohd Javaid, Shanay Rab
Abstract: Additive manufacturing (AM) technologies are becoming an essential part of tomorrows smart factories, where software, technologies, and processes are being integrated to deliver world-class results. AM is to provide extensive inputs to smart manufacturing systems using digital design, and specialised software-based manufacturing technology. AM helps to create product innovation, thereby impacting different areas of Industry 4.0. The purpose of this study is to understand how AM can impact various areas of Industry 4.0. A large number of research papers on additive manufacturing in Industry 4.0 and other related articles in the manufacturing field have been studied to identify its fifteen significant impacts and subsequent research direction. In future, AM will create technological advancement in design, manufacturing and provide a maximum contribution in Industry 4.0 to the self-optimise production system. AM helps to reduce a considerable amount of unused inventory and helps fulfil the customised demand of consumer and market. AM creates any customised prototype for specific users in lesser time. It provides innovative product concepts by assessing market demand and minimise the supply chain cost.
Keywords: Additive Manufacturing (AM); Areas of Industry 4.0; Customisation; Industry 4.0; Requirements of Industry 4.0.
Farm Level Sustainable Cotton Supply Chain Management, an Empirical Study of Pakistan
by Sonia Nazeer, Puwanart Fuggate, Muhammad Shafiq
Abstract: Cotton is a highly non-sustainable crop due to the requirement for substantial amounts of water and energy resources in the overall supply chain, from farm to finished product. There is a need to assess the sustainability of the cotton supply chain management system which may be achieved through more reasonable use of inputs and resources, hence lesser environmental impact, while maintaining sustained income for farmers. This research investigates the current status of sustainability in the farm level cotton supply chain and explores the influence of sustainability paradigms (economic, environmental and social) on farmers' supply chain management decisions. A survey was held (157 small and medium level cotton farmers) and data was analysed using the SPSS software with descriptive statistics of t-test, correlations and regression analysis. Results shown that small and medium level farmers are only focused on using less expensive inputs, with little concern for environmental and social matters.
Keywords: Sustainable cotton supply chain management (SCSCM); Cotton supply chain management (CSCM) Cotton sustainability factors (CSF); Sustainable cotton growers (SCG).
Auction based algorithm for solving scheduling problem in cross-docking centres.
by ELDHO PAUL, Brijesh Paul
Abstract: A cross-docking centre reduces the amount of storage and transportation in a distribution system compared to an ordinary warehouse. This paper proposes an auction-based mechanism for optimum scheduling of inbound trucks in cross-docking centres, thereby reducing the storage and transportation costs. Auction mechanisms are commonly used in different real life applications for better allocation of limited resources. Here, an effort is made to integrate the auction mechanism with the functioning of cross-docking centres. A mathematical model is developed for the optimal scheduling of inbound trucks. As expected, the determination of exact schedule for problems involving large number of variables was found to be computationally complex, and hence a heuristic methodology is also proposed in this study. In our computational experiments, we found that the proposed heuristic method is capable of producing good schedules in minimal time.
Keywords: Auction mechanism; Combinatorial auction; Cross-docking centre; Genetic algorithm; Heuristics; Mathematical modelling; NP hard; Optimization; Resource allocation; Scheduling of trucks.
A Study on Using LARG (lean, agile, resilient and green) Index to Assess the Sustainability of Egyptian FMCGs Supply Chains
by Sara Elzarka
Abstract: Sustainable or green supply chain (GSC) management has gained significant importance over the past few years in Egypt as global awareness on preserving natural resources and the environment have been increasing. Sustainable operations of the supply chain became an essential requirement for Egyptian products to enter the European and the American markets which are the two major exports markets for Egypt. Therefore, this research would assess the leanness, agility, resilience and greenness of Egyptian fast-moving consumer goods (FMCG) supply chain by the use of the lean, agile, resilient and green (LARG) index proposed by Azevedo et al. (2016). This research will use the case study approach in assessing the practices of three major FMCG companies supply chains. Conducting this assessment on a set of companies and to their supply chain will allow the researcher to benchmark the performance of the supply chain members; thus, highlighting the gaps and emphasising on the improvement opportunities.
Keywords: Supply Chain Management; Sustainability; Green Supply Chain; Egypt; FMCG; Fast Moving Consumer Goods; Lean; Green; LARG index; Resilience.
THIRD PARTY LOGISTICS PROVIDERS: SUSTAINABILITY PERFORMANCE MEASUREMENT FRAMEWORK
by Jirapan Liangrokapart, Yurawan Nitisaroj
Abstract: Over the past two decades, the concept of outsourcing has driven the growth of third party logistics (3PL). Intensive competition led to the necessity of sustainability for 3PL firms. Although there are studies on 3PL sustainability; there is no comprehensive framework for measuring 3PL sustainability performance. Based on triple bottom line (TBL) framework, the purpose of this paper is to develop a sustainability performance measurement framework for 3PL, which can be used as a guide for the development of sustainable 3PL businesses. Related research and academic papers were reviewed; content analysis was used. Subsequently, two rounds of Delphi survey were carried out to derive the set of measures and dimensions of a sustainability performance measurement framework. This study shows that in addition to the TBL framework, two additional dimensions emerge. Sustainability performance measurement framework for 3PL includes five dimensions: economic performance, environmental performance, social performance, operational excellence and service capabilities.
Keywords: Outsourcing; Performance Measurement; Sustainability; Sustainability Framework; Third Party Logistics Providers; Logistics Service Provider.
Optimal inventory strategies for two-echelon supply chain system involving carbon emissions and fuzzy deterioration
by S. Priyan, P. Mala, R. Gurusamy
Abstract: The industry sector is an vital direct and indirect source of carbon emissions. Today industries are looking for solutions to reduce carbon emissions associated with their operations. Operational adjustments, such as modifications in batch sizes or order quantities, have proven to be an effective way to decrease emissions. This paper provides a new mathematical model which integrate cost and emissions in transportation and storage to execute optimal operational adjustments for deteriorating products under the framework of two-echelon inventory system. The deterioration rate is treated as the triangular fuzzy number, and we use the extension principle to find the membership function of the fuzzy total cost and defuzzify by the centroid to find the estimate of the total cost in the fuzzy sense. Numerical example is performed to show the effectiveness of the proposed model, and several managerial insights are observed from sensitive analyses which may help both the government and the industry to adopt appropriate carbon reduction regulations.
Keywords: Deteriorating product; Fuzzy number; Centroid method; Carbon emission.
Designing and Developing the Strategic Foresight Capabilities of Medical Universities in the Accidents and Crises of the Country with Emphasis on Human Resource Agility
by Hasan Hosseini, Hosseinali Rastegari, Hasanali Ghayoor
Abstract: The purpose of this study was to design and develop the strategic foresight capabilities for crisis management with respect to the mediating role of human resource agility in Universities of Medical Sciences of Isfahan, Shahre Kord, Kashan and Yazd. In this study, the research components and variables were identified based on the research background and using the Delphi method. The statistical population includes managers and experts, who overall were 160 people. The results showed that the impact of strategic foresight capabilities on crisis management is 37%, which means that 37% of the crisis management changes are related to the strategic foresight capabilities; also it was found that the strategic foresight capabilities influenced the human resources agility as much as 95%, which means that 95% of the human resource agility changes are due to strategic foresight capabilities, and that the human resource agility affected (55%) on crisis management.
Keywords: Strategic Foresight Capabilities; Human Resource Agility; Crisis Management; Unforeseen Events.
An Investigation on sustainable supply chain management challenges for Indian thermal power plants
by Suchismita Satapathy
Abstract: The coal option for power generation has to play most important role in the Indian power sector for long times to come. Though it is most obvious and viable option, it comes with some salient issues like coal quality, import tie ups, mining, transport and port infrastructure, etc. which need to be analysed and addressed with long-term perspective. A low-quality, high-ash coal also creates problems for power stations, including erosion in parts and materials, difficulty in pulverisation, poor emissivity and flame temperature, low radiative transfer, and excessive amounts of fly ash containing large amounts of unburned carbons. The awareness against the environmental pollution and clean energy is increasing all over the world. As the thermal power sector is blamed for creating environmental pollution, so they are more focused on sustainability issues and subsequently trying to develop a sustainable supply chain strategy to carry out their business.
Keywords: SSCM:ANN:QFD:iSM,Indian thermal power sector:coal.
Goal programming and data envelopment analysis approach to disaster relief supply chain design
by Jae-Dong Hong, Ki-Young Jeong
Abstract: The objective of this paper is to present and demonstrate the use of goal programming and data envelopment analysis (GP-DEA) framework for the disaster relief supply chain (DRSC) design problem to help decision-makers who are responsible for disaster planning and management. For this, we develop a GP model with multi-objective functions, and each of the results from the GP is considered as a decision making unit (DMU). The impacts of the emergency relief facilities (ERFs) and the distribution channels between the facilities are evaluated and quantified concerning the efficiency and robustness. A case study using historical data in South Carolina is analysed with the framework. We identify that GP-DEA framework optimizes and evaluates DRSC layouts without any subjective judgment from decision-makers. Further, we also identify that the performance of DRSC layouts is the most significantly determined by the distribution channels. If any DRSC includes more influencing channels, its performance improves.
Keywords: data envelopment analysis; DEA; goal programming; disaster relief supply chain; DRSC; logistics network design.
Product driven system for the optimal assignment of warehouse locations
by Alfathi Najlae, Lyhyaoui Abdelouahid, Sedqui Abdelfettah
Abstract: The assignment of locations is one of the warehouse management pillars. This paper presents a new method for assigning to each product, the optimum location relative to the product and to the location assignment system. To achieve this objective, we propose the integration of an infotronic technology carried by product. By this, the product becomes smart and able to find the best location where it must be stored. We consider each empty location or set of empty locations a section called critical section. Thus, by being intelligent, the smart products must manage the access to these sections. We have applied the solution to manage the locations assignment in a steel coil warehouse. Thus, we have validated that piloting by product allows optimal managements of locations assignment.
Keywords: product driven system; smart product; infotronic technology; assignment of location; critical section; warehouse.
Inquiry into reverse logistics and a decision model
by B. Padmanabh, S. Jeevananda
Abstract: A process in which a product is moving in reverse along the supply chain network is called as reverse logistics. The objective of reverse logistics is to recapture the value of the final product. Reverse logistics is gaining ground because of its importance in managing a closed loop supply chain. Companies across the world are showing concern about environmental degradation and are realising the need for sustainable development. Many countries have already passed legal regulations. Good reverse logistics process indicates lot of reuse, recycling and reducing the material consumed, thereby ensuring sustainability. Improving reverse logistics will result in increase in sales up by 10%, a reduction in the supply chain costs by 25% to 40%. In retail sector the profit margins are less and strengthening reverse logistics can increase the profit margins. This paper attempts to inquire into the reverse logistics area and come out with the prioritised variables impacting the different reverse logistics disposition decision. The paper attempts to propose a conceptual model for reverse logistics disposition decision.
Keywords: supply chain management; closed loop supply chain management; reverse logistics.
Presenting a model for decoupling points in supply chain networks
by Alireza Alinezhad, Abolfazl Kazemi, Mojgan Khorasani
Abstract: The decoupling point (DP) is gaining attention as a significant factor in design and management of supply chains. The DP divides the part of the supply chain oriented towards customer orders from the part which is based on forecast planning and it can be stated that DP separates production process from lean production system to agile system. So, we can use the advantages of both production systems. Position of the decoupling point is a key factor that influences the design and management of a supply chain. In this study, we describe determination of decoupling point as a multiobjective decision making (MODM) problem, and our objectives are minimisation of production cost and production delivery time and maximisation of customer satisfaction. We use NSGA II for determining Pareto optimal solution to extract some solution concepts. Finally, a numerical example is applied to validate applicability and feasibility of the proposed model and performance of the developed algorithm.
Keywords: decoupling points; lean and agile production system; make-to-order and make-to-stock strategies; MTO and MTS strategies; multi objective decision making; MODM; NSGA II.
Ranking the obstacles of green supply chain management using fuzzy approaches of TOPSIS and DEMATEL with a case study in a pharmaceutical industry
by Arash Shahin, Behzad Masoomi, Mohammad Ali Shafiei
Abstract: The aim of this study is to analyse and prioritise the obstacles of green supply chain management (GSCM) in the pharmaceutical industry. For this purpose, the obstacles of achieving GSCM have been identified and ranked via fuzzy TOPSIS and DEMATEL approaches. Statistical population consisted of 155 managers, employees and customers of Vetaque Pharmacy Company. Fuzzy DEMATEL technique has been employed for prioritising the obstacles and identifying their causalities. Findings indicate the first to third priorities as the lack of environmental knowledge; unbelief about environmental advantages and green production; and lack of government support in policy making consistent with the environment. The applied fuzzy DEMATEL approach resulted in segmenting obstacles into some meaningful portions in order to effectively facilitate decision making on prioritising obstacles for improvement.
Keywords: green supply chain management; GSCM; pharmaceutical industry; obstacles; fuzzy TOPSIS; fuzzy DEMATEL.
Truck scheduling problems in the cross docking network
by Warisa Wisittipanich, Takashi Irohara, Piya Hengmeechai
Abstract: Cross docking is a logistic management strategy for reducing storage level, inventory management cost, and customer delivery lead-time. In the large distribution network in which products are transferred through one or more cross docks, the decision of whether to synchronise inbound and outbound trucks for the whole network is crucial since it significantly impacts on supply chain performance. This study presents the novel mathematical model of truck scheduling problem in the cross docking network consisting of several cross docks and addresses the importance of synchronising the truck schedule in a network as a whole. The model is formulated as mixed integer programming (MIP) with an objective to find the optimal truck schedule and product transshipment to minimise the makespan. The results demonstrate that simultaneously optimising truck schedule throughout the network improves the solution quality compared to those obtained from models, that optimise the truck schedule in each cross dock sequentially.
Keywords: multiple cross docking; cross docking network; truck scheduling; makespan.
Special Issue on: Operations Management of Various Logistics Flows
A Global Performance Analysis Methodology Using Taguchi Approach: Case of Cloud Computing and Supply Chain
by Awatif Ragmani, Amina El Omri, Noreddine Abghour, Khalid Moussaid, Moahmmed Rida
Abstract: Nowadays, performance optimization is identified as the major asset to maximize the quality-cost ratio of a given system. Particularly, the performance analysis of a complex system involving several processes and a multitude of stakeholders cannot be done without an efficient methodology. During this paper, we aim at the implementation of a generic methodology for performance analysis taking as a framework the case of Cloud computing and Supply chain. The proposed methodology is based on the fundamental idea of transforming a complex system into a black box which will be analyzed through different inputs corresponding to the influential factors and outputs which translate the key performance indicators. The analysis of the interactions between influential factors and key performance indicators is carried out on the basis of the Taguchi concept. The conclusions of the proposed methodology make it possible to identify diverse perspectives in order to enhance the performance of the entire system.
Keywords: Cloud Computing; Performance Methodology; Key Performance Indicator; Balanced Scorecard; Taguchi; Supply Chain.