Showing papers in "International Journal of Business Performance and Supply Chain Modelling in 2011"

Intermodal transportation within the green supply chain: an approach based on ELECTRE method

Abstract: Considering the great environmental awakenings at the planetary level and the discounted growth of the carriage of goods per transportation mode in the world, the distribution and haulage companies must start to take measures to limit their impacts. The goal of this paper is to model the performance of an intermodal transportation system within the green supply chain, taking into account the economic, environmental and societal criteria in order to help decision-makers in choosing the path with the best compromised benefit/impacts in an intermodal transportation system. We have to trade with many conflicting criteria, it is thus appropriate to use multicriteria decision support system to find the best compromised solution. The path selection in a multimodal transportation network is therefore a multicriteria decision-making problem. In this paper, we will use an approach based on the elimination and choice expressing the reality (ELECTRE) method to solve our multicriteria model.

Multiple criteria decision-making for environmental impacts optimisation

Abstract: Life cycle assessment (LCA) is increasingly used as a decision support system that enables the modelling, the evaluation and the comparison of different alternatives of products, processes or supply chains as regards their environmental and sustainable impacts. In the textile-garment domain, the complexity of the supply chain adds to the difficulty of the interpretation of the LCA results. The authors' purpose is to use multiple criteria decision-making (MCDM) method in order to analyse the results of the life cycle assessment of textile products to help the different actors in the supply chain. Within this framework, the paper studies the choice of the most suitable multicriteria analysis method from the literature and shows its application in the textile supply chain.

Design and performance evaluation of supply networks: a simulation study

Abstract: This paper presents a simulation tool for the design and performance analysis of supply networks. The tool, developed under MS ExcelTM and properly set up for this purpose, reproduces a fast moving consumer goods (FMCG) supply network, and incorporates viable input data taken from previous studies in that field. We analyse four network configurations, stemming from the combination of different numbers of echelons and of facilities per echelon. As further factors, we consider reorder policy, demand behaviour, demand stochasticity, procurement lead time and service level delivered to customers. Overall, we examine 128 scenarios, for which we assess, as performance parameters, the total costs of the network (and the related cost components), the bullwhip effect, the throughput time of items along the chain and the waiting time of customers at the retail store due to out-of-stocks. A detailed effect analysis identifies the impact of the network configuration and operating conditions on the results observed, with the ultimate aim to investigate how the performance of the network varies as a function of the parameters set. From the analysis, some key guidelines for the proper design of FMCG supply networks are elaborated.

Supply chain performance evaluation: a comprehensive evaluation system

Abstract: Supply chain is a network of suppliers, manufacturers, distributors, and retailers that act together to control, manage, and improve the overall supply chain performance. The most important and critical part of decision making is identifying the different sides of supply chain's performance. Evaluating the performance of the whole supply chain is a complex task, due to the complexity inherent in the structure and operations of the supply chain. This study presents a suggestion for a comprehensive system to evaluate the performance of the supply chain in eight dimensions (i.e., financial, customer, internal operations, learning and growth, people, environmental, and political perspectives). The proposed performance evaluation system (PES) suggests a procedural framework to explain the application methodology of that PES. Moreover, the study offers a simulation modelling methodology for modelling the complex system of supply chain. It also provides a real world case study to clarify the applicability of the proposed PES.

Reengineering a reverse supply chain for product returns services

Abstract: An important service management activity, particularly in a retail environment, is return services. This article discusses the strategic issues surrounding the effective management of product return services presents a case study to illustrate how a reverse supply chain and the logistics activities that support it were reengineered to enhance the effectiveness and profitability of the product returns process for a major direct retailer in the US.

A conceptual framework for modelling reverse logistics networks

Abstract: Reverse logistics is receiving more attention because of the growing environmental and economical concerns. Some complex issues depending on social, technical and legislative factors are: how to prevent the environmental deterioration caused by the generation of wastes, how to minimise the generation of wastes, and how to enhance the value recovery from the wastes. In this paper, we have done an exhaustive literature review, highlighting the applications of various modelling approaches from reverse logistics perspectives. The considered modelling approaches are linear programming, mixed integer linear programming, goal programming and genetic algorithm. The reverse logistics issues are basically categorised into five categories namely distribution, production planning and control, information technology, business economics and integration/coordination. The paper proposes a framework focusing these issues and suggests an appropriate approach to model reverse logistics networks.

A decision support system for supplier selection for Indian textile industry using analytic hierarchy process based on fuzzy simulation

Abstract: Supplier selection is arguably one of the most critical functions for the success of an organisation in today’s competitive scenario. Both qualitative and quantitative factors are considered and a trade off is made between tangible and intangible factors while selecting a supplier. This selection is one of the decisions which determine the long-term viability of the organisation. Literature reveals that many methods have been used to objectively evaluate suppliers including analytic hierarchy process (AHP). Considering drawback of AHP that it handles crisp values only, use of AHP based on fuzzy simulation (FSAHP) has been proposed in this paper. The weights of criteria and sub-criteria of alternatives have been represented by fuzzy linguistic variables and fuzzy simulation has been used to estimate the expected value of fuzzy weights of different alternatives for the decision analysis of three suppliers for a textile-based industry.

A review on select models for supply chain formation

Abstract: Supply chain formation is becoming a new and challenging topic of research in supply chain management. It basically deals with selection of suppliers or group of suppliers, which are rational in nature, to make them partners in the supply chain. Because of this rationality a game is induced between the suppliers. This paper is an attempt to compare mechanism design, negotiation, and contract theory where the issue of rationality is well handled, which serves as an input for the comparative analysis of the incentives provided to participants/suppliers. Also, this paper highlights some of the essential issues, challenges and complexities in both mechanism design and negotiation model which will be useful for researchers and supply chain practitioners working in this interesting and challenging area. Finally, this paper comes up with the future directions of developing the optimal strategies, addressing the identified issues, challenges and complexities associated with supply chain formation.

Optimal coordinated supply chain strategy with price and time sensitive demand

Abstract: In this study, inventory models are developed for coordinated supply chain using Stackelberg game framework. In the proposed model, customer demand is assumed to be price and time sensitive. The buyer attempts to adjust retail selling prices by charging premium or offering discount to the floor selling price depending upon the optimistic or declining market conditions. The aim of this research paper is to analyse the optimal pricing policy that maximises total profit for both the players under the principles of coordination, and competition. Some numerical examples are given to study the model. The results show that the vendor gets more advantage when the collaborative model is applied and the buyer’s profit is bigger in the Stackelberg game model than the collaborative model.

Applying a new ordering policy in a two-echelon inventory system with Poisson demand rate for retailers and transportation cost

Abstract: This paper deals with a two-echelon inventory system consisting of one supplier and N retailers. Each retailer faces an independent Poisson demand with the same rate and applies a new ordering policy called one-for-one-period ordering policy for its inventory control. In this ordering policy, the order size is equal to one and the time interval between any two consecutive orders forms a common fixed cycle. Thus, the supplier faces a deterministic demand and adopts a deterministic inventory policy. At each cycle, he orders a batch of size N to his own supplier. Upon receipt of each batch, he sends one unit of the product to each retailer with a transportation cost. In this paper, for the above system, we first derive the total cost function per unit time. Further, we obtain the conditions under which the total cost function is convex. Finally, we obtain the optimal time interval between any two consecutive orders as well as the optimal average inventory for each retailer.

Modelling supply chain decision problem with fixed charge – a review

Abstract: In the recent past, distribution activity in a supply chain is considered as a major function. The basic version of a transportation problem is linear, single objective, balanced and planar problem. Generally, the unit transportation cost is used to find optimal distribution schedule and this unit transportation cost is directly proportional to the transported load. In real life situations, there is another cost associated with the distribution which is known as fixed cost. In the presence of fixed cost, the model becomes a fixed charge transportation problem which is an extension of transportation problem. This paper presents the state-of-the-art review of the research on the fixed charge transportation problem. Directions for further research are also highlighted.

Container sea ports and network connections within the Gulf of Finland

Abstract: The world was revolutionised by container transport during the late 1950s, but technology started to play a key role in Northern Europe during the end of the 1980s. Rarely research has concerned about small spoke countries, which is our interest in this work. We analyse the longitudinal development of the first tier connections from and to Estonian, and Russian St. Petersburg container sea ports – these are also compared to most recent situation in Finland. Research shows that amount of connections have not increased during the longer period of time, but volumes have shown significant improvement. Most important container connections are available for a very small number of Northern European hubs in the studied sea ports offering critical opportunities for future development. Overall connections from Estonia are limited to Northern Europe, but are very good for nearby neighbours, as is the case with Finland. However, St. Petersburg container sea port has interesting direct long-distance connections to the Americas. The St. Petersburg container sea port has developed as an important part of Baltic Sea Region container transportation network, and its neighbours need to take this into account (e.g., arrangement of empty containers/low fared exports).

Analysis of distribution system of supply chain and relationships between manufacturer and customers for Indian textile industry

Abstract: Supply chain management (SCM) is regarded as a means to maximise the overall value generated. The importance of SCM in Indian textile industry has increased when more and more companies have realised the possibilities of gaining additional value for their customers with the implementation of supply chain concepts. Distribution system is one of the main parts of supply chain. This paper is based on the data collected from a survey of 66 Indian textile-related organisations carried out to ascertain issues related to distribution system of supply chain and customers. Issues related to capability of SCM in reading and responding real customer demand, ability of organisations to respond quickly to volatile market, advantages that can be achieved by quick response to customers' demands and management of relations with the customers have been discussed. The findings indicate that the organisations consider 'delivery speed' as the most influential factor in reading and responding real customer demand. Barriers in implementation of supply chain concepts in distribution system and relationships between manufacturers and customers are also discussed.

Analysis of robust and adaptive designs for dynamic part population

Abstract: Two types of cellular system designs are possible for a production environment consisting of dynamic part population: adaptive and robust layouts. Cellular manufacturing system designs in literature show that some of the cells formed have large number of machines compared to other cells. This paper is mainly concerned with developing suitable mathematical model so that more or less same number of machines in every cell is possible for the adaptive and robust designs. A genetic algorithm-based solution procedure is used to solve the problem. The suggested designs are giving less variation in cell size than adaptive and robust designs in literature.

Target setting under uncertainty

Abstract: The main goal of this study is the definition of a key performance indicator, able to measure the impact of the demand uncertainty in a multi-stage supply chain inventory level. Despite the traditional bullwhip effect being normally analysed considering the particular dimension of the demand volatility in the amplification of upstream orders, an endogenous effect can be found and measured using a new indicator, able to help managers understanding the demand uncertainty penetration in the different stages of a supply chain. With this metric, managers are able to establish a more reliable target for their stock level, in each node, according to the risk exposure, promoting the optimisation of the invested capital in an aggregated supply chain analysis. The mathematical model is supported on the real options methodology. Overall, our investigation increases the knowledge related with demand’s uncertainty treatment in supply chain performance.

A generic conceptual model and actual systems of IC-card: the case of Japan's IC-card system

Abstract: In this paper, a generic conceptual model and actual systems of Japan's IC-card system for model-based systems engineering are presented and discussed. First, a generic conceptual model of the IC-card system is discussed. Then Japan's various actual IC-card systems (electronic money, traffic IC-card, and mobile IC-card) are studied using the generic conceptual model of the IC-card system. This paper also specifies how Japan's various actual IC-card systems differ from the generic conceptual model using the model-based approach to systems engineering.

Measuring performance of material handling systems: a conveyor system analysis

Abstract: Operational efficiency of systems is generally measured by key performance indicators (KPIs). A complete set of KPIs for material handling systems are not readily available. The lack of KPIs makes it harder to assess efficiency and track progress in systems. We develop a list of KPIs to measure the efficiency of a material handling system and specifically discuss the case of a conveyor system. Also, considering a single KPI and ignoring others will lead to a myopic approach to improvement. To combat such a shortfall, we propose a simple weighted approach to obtain a wholesome assessment of a system with KPIs.

An integrated inventory model for vendor-customer coordination in a supply chain

Abstract: The present study focuses on determining economic ordering quantity (EOQ) and shipping strategy of an inventory system integrated with a single-product, single-vendor and multi-customer scenario. Depending on the demand of all customers, production and shipping policies are determined and present a suitable model to illustrate the transferring of equally-sized batches. Optimum values of the decision variables are determined using a direct search method. In order to justify the lot-splitting approach for solving the integrated inventory problem, alternative model with no lot splitting are devised and tested under the same circumstances which produce similar or better results. A numerical example and related sensitivity analysis are given to show the effectiveness of the proposed model.

A branch-and-price approach for an integrated capacity dimensioning and demand routing in SDH/WDM networks

Abstract: In this paper, we consider the problem of integrated capacity dimensioning and demand routing in SDH/WDM networks, well-known in the telecommunication community as the traffic grooming problem. This problem is generally formulated as an integer linear programme that is typically hard to solve due to the unsplittable nature of channels and their non-uniform sizes. We transform the problem into mixed integer linear programme by relaxing the unsplittability constraints on flow variables. Then, we propose a branch-and-price approach that branches only on capacity variables and generates basic solutions for pricing sub-problems, having a non-zero variable for each separate channel. We also provide expressions for generating basic solutions. We show that the pricing process is polynomial. Since the 'complexity' of the problem depends only on the number of edges, the solution approach is expected to be computationally effective.

Evolution of Badia small-scale producers in restructured agro-food market in Jordan

Abstract: Based on field research in the Badia of Jordan and the first of its kind, the present study specifically addresses the evolution of a supply chain, criteria of participation, transaction requirements, sourcing, organisational changes, and small farmers’ capacity and upgrading. Evolution was encouraged when a collective action of Badia farmers was facilitated by a local NGO. The data was elicited from archives, semi-structured interviews, PRA, and survey with 118 subjects carried out during the months of March–June 2007. Data analysis included actor network matrix, mapping the chain, timeline analysis was used to tabulate and index events and history in time for each chains, and descriptive qualitative analysis. Findings suggested that evolution of the chain led to organisational changes and financial benefits for small scale-producers, households, and NGO. One of the major factors that explain the small-scale producers are included is basically price. Benefits of inclusion were higher net income, net asse...

Factors perceived to influence the selection of information technology jobs

Abstract: There are huge tangible as well as intangible costs involved in the recruitment process, especially for information technology (IT) companies. Reduced recruitment costs would indirectly boost the business performance. The present work is a study undertaken to assess the factors perceived to influence the selection of the IT jobs using factor analysis for three IT companies operational in India differing in certain parameters. This study uses two highly promising but underutilised factor retention criteria namely, parallel analysis (PA) and minimum average partial (MAP) technique. We found that these two retention criteria provide consistent results in determining the number of factors and the use of PA and MAP in factor analysis can significantly reduce the subjective interpretation of supposedly objective methods. The study would be useful for the human resource department of the IT firms to understand the psyche of the candidates before making a recruitment pitch in front of them.