Facility location and supply chain management - A review

Best practice exemplars suggest that digital platforms play a critical role in managing supply chain activities and partnerships that generate performance gains for firms. However, there is limited academic investigation on how and why information technology can create performance gains for firms in a supply chain management (SCM) context. Grant's (1996) theoretical notion of higher-order capabilities and a hierarchy of capabilities has been used in recent information systems research by Barua et al. (2004), Sambamurthy et al. (2003), and Mithas et al. (2004) to reframe the conversation from the direct performance impacts of IT resources and investments to how and why IT shapes higher-order process capabilities that create performance gains for firms. We draw on the emerging IT-enabled organizational capabilities perspective to suggest that firms that develop IT infrastructure integration for SCM and leverage it to create a higher-order supply chain integration capability generate significant and sustainable performance gains. A research model is developed to investigate the hierarchy of IT-related capabilities and their impact on firm performance. Data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that integrated IT infrastructures enable firms to develop the higher-order capability of supply chain process integration. This capability enables firms to unbundle information flows from physical flows, and to share information with their supply chain partners to create information-based approaches for superior demand planning, for the staging and movement of physical products, and for streamlining voluminous and complex financial work processes. Furthermore, IT-enabled supply chain integration capability results in significant and sustained firm performance gains, especially in operational excellence and revenue growth. Managerial initiatives should be directed at developing an integrated IT infrastructure and leveraging it to create process capabilities for the integration of resource flows between a firm and its supply chain partners.

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Firm performance impacts of digitally enabled supply chain integration capabilities

http://www.optimization-online.org/DB_FILE/2003/06/670.pdf

A stochastic programming approach for supply chain network design under uncertainty

https://www.icesi.edu.co/blogs/semillerosi3/files/2013/12/3-SUPPLY-CHAIN-MANAGEMENT-A-ANALYTICAL-FRAMEWORK-FOR-CRITICAL-LITERATURE-REVIEW.pdf

Supply chain management: an analytical framework for critical literature review

Plants, distribution centers, and other facilities generally function for years or decades, during which time the environment in which they operate may change substantially. Costs, demands, travel times, and other inputs to classical facility location models may be highly uncertain. This has made the development of models for facility location under uncertainty a high priority for researchers in both the logistics and stochastic/robust optimization communities. Indeed, a large number of the approaches that have been proposed for optimization under uncertainty have been applied to facility location problems. This paper reviews the literature on stochastic and robust facility location models. Our intent is to illustrate both the rich variety of approaches for optimization under uncertainty that have appeared in the literature and their application to facility location problems. In a few instances for which examples in facility location are not available, we provide examples from the more general logistics l...

Facility Location Under Uncertainty: A Review

Strategic production-distribution models: A critical review with emphasis on global supply chain models

Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms

A global supply chain model with transfer pricing and transportation cost allocation

Modeling the effect of uncertainties on global logistics systems.

Supply chain mathematical programming models mainly used for computer-aided decision-making processes, have been widely used to date as an advanced support to the experts' opinions. Transportation operations are often a central aspect of such models. We developed a detailed review of the freight transportation function included in supply chain models, and some transportation aspects were identified and analyzed in recent articles (2009-2013). We identified one paradigm, two trends and an anomaly regarding transportation modeling. The main anomaly-related observation refers to the absence of correspondence between the modeling of transportation operations and the transportation cost function considered in the models. This gap has not been so far considered in the literature and we propose a framework to guide, in a more systemic way, the transportation considerations into optimization models. In addition, some concerns regarding trade-off analysis, private/outsourced fleet considerations, the role of time and distance in transportation cost analysis, among others, were also included. These issues are expected to be significant for supply chain analysts whose decisions emerge from modeling and computer-aided tools.

Carlos Julio Vidal

Papers

Strategic production-distribution models: A critical review with emphasis on global supply chain models

Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms

A global supply chain model with transfer pricing and transportation cost allocation

Modeling the effect of uncertainties on global logistics systems.

Review: Freight transportation function in supply chain optimization models: A critical review of recent trends