Showing papers in "International Journal of Production Research in 2009"

Simulation modelling for food supply chain redesign; integrated decision making on product quality, sustainability and logistics

Abstract: Food supply chains are confronted with increased consumer demands on food quality and sustainability. When redesigning these chains the analysis of food quality change and environmental load of new...

Throughput analysis of production systems: recent advances and future topics

Abstract: Throughput analysis is important for the design, operation and management of production systems. A substantial amount of research has been devoted to developing analytical methods to estimate the throughput of production systems with unreliable machines and finite buffers. In this paper we summarise the recent studies in this area. In addition to the performance evaluation of serial lines, approximation methods for more complex systems, such as assembly/disassembly systems, parallel lines, split and merge, closed-loop systems, etc., are discussed. Moreover, we propose future research topics from the automotive manufacturing systems perspective.

A fuzzy goal programming approach for green supply chain optimisation under activity-based costing and performance evaluation with a value-chain structure

Abstract: Supply chain operation with sustainable consideration has become an increasingly important issue in recent years. However, the decision framework with integrated costing and performance evaluation for green supply chain (GSC) has not been well developed so far in the literature. For this reason, this paper is aimed to propose a fuzzy goal programming (FGP) approach that integrates activity-based costing (ABC) and performance evaluation in a value-chain structure for optimal GSC supplier selection and flow allocation. The FGP approach is particularly suitable for such a decision model which includes flexible goals, financial and non-financial measures, quantitative and qualitative methods, multi-layer structure, multiple criteria, multiple objectives, and multiple strategies. An activity-based example of structural GSC with relevant costs and performances is presented for computing the composite performance indices of the GSC suppliers. A green supply chain of a mobile phone is used as an illustrative case...

Mapping the future of supply chain management: a Delphi study

Abstract: Supply chain management, a field that developed from business practice and research, is undergoing a major transformation. It is changing from tactical in nature (where the major focus is on cost and delivery) to a field that is strategic in nature. However, the future issues and challenges facing managers and executives are just now becoming understood. This paper reports these issues by drawing on the findings generated by a three-phase study consisting of a literature review, a two-round Delphi study, and a workshop. Unique in this Delphi study is that it brings together leading practitioners in supply chain management with leading supply chain management researchers. The findings show that while the focus of the current tactical supply chain view is relatively limited to issues of delivery, risk, and leadership, the supply chain view of the future (i.e., five years from now) is more complex and demanding. The findings also show that there is generally no difference between researchers and practitioners in terms of how they view the issues. Finally, the study uncovers major obstacles that must be resolved before the strategic potential of future-state supply chains can be realised.

Analysis of closed loop supply chain using genetic algorithm and particle swarm optimisation

Abstract: There are many reasons for the growing interest in reverse logistics. The most prominent reasons are the growing concern for the environment and cost reduction. Next to environment, consumers demand for clean manufacturing and recycling. Hence, customers and retailers expect original equipment manufacturers to set up a proper reverse logistics system and expect the returned products to be processed and recovered in an environmentally responsible way and another reason is cost reduction. A well-managed reverse logistics programme can provide important cost savings in procurement, disposal, inventory carrying and transportation. In this context, looking at the entire supply chain is the best starting point for solutions. Supply chain management aims at the integration of traditional ‘forward’ supply chain processes, avoiding local optimisation by emphasising integrality. The main objective of this paper is to design an integrated forward logistics multi-echelon distribution inventory supply chain model (FLM...

A market-driven approach to product family design

Abstract: In an effort to meet the diverse needs of today's highly competitive global marketplace better, many companies are utilizing product families and platform-based product development to increase variety, shorten lead-times, and reduce costs. Current research in the area of product family design mostly focuses on the cost-savings benefits of the platform-based approach and does not sufficiently examine broader enterprise considerations such as profit and market share. Furthermore, very few existing design methods integrate market considerations (e.g., customer preferences, competition) with product development efforts in their formulation. In this work, in addition to integrating market considerations with traditional product family concerns (e.g., modular design, decisions regarding shared parts and processes), the scope of the product family design problem is expanded to include the product line positioning problem, i.e., the problem of determining the appropriate market niche for each product variant in t...

Internalisation of ISO 9000 standards: the antecedent role of functionalist and institutionalist drivers and performance implications†

Abstract: This study presents an investigation of the relationship between motivation for ISO 9000 certification and internalisation of practices underlying ISO 9000 standards. We use the theoretical lenses of resource-based view and institutional theory to develop our research hypotheses linking motivation with internalisation of ISO 9000 standards. These theories also provide a cogent means to understand the findings from the study. Further, the study presents the performance implications of internationalisation of ISO 9000 standards. A path model is developed that link motivation, internalisation of ISO 9000 standards and performance. Survey data from 281 ISO 9001 certified manufacturing and service organisations in Australia is used to test the research hypotheses of the study. The results suggest that internalisation of practices underlying ISO 9000 standards is affected by functionalist and institutionalist drivers. We find that internalisation of ISO 9000 standards is positively associated with operational performance, and operational performance, in turn, is positively associated with business performance. A closer examination by splitting the sample between high and low performing firms reveals that internalisation of ISO 9000 standards is associated with both functionalist and institutionalist motives in low performing firms, whereas only functionalist driver influence the internalisation of ISO 9000 standards in high performing firms. We offer theoretical and managerial implications of our findings.

Supply chain management practices as a mediator of the relationship between operations capability and firm performance

Abstract: The current study uses mediated regression analysis and structural equation modelling to test the proposition that supply chain management practices mediate the relationship between operations capability and firm performance. Operations capability is defined in terms of a firm's new product design and development, total quality management and just-in-time capabilities. Results support the research model and also suggest the existence of a direct relationship between operations capability and performance.

Data driven bottleneck detection of manufacturing systems

Abstract: Bottlenecks within a production line significantly reduce the productivity. Quick and correct identification of the bottleneck locations can lead to an improvement in the operation management of utilising finite manufacturing resources, increasing the system throughput, and minimising the total cost of production. Most of the current bottleneck detection schemes focus on the long-term bottleneck detection problem and an analytical or simulation model is usually needed. Due to recent developments, short-term process control and quick decision making on the plant floor have emerged as important qualities for operation management. This research proposes a new data driven method for throughput bottleneck detection in both the short and long term. The method utilises the production line blockage and starvation probabilities and buffer content records to identify the production constraints without building an analytical or simulation model. The method has been verified both analytically and by simulation. An in...

Strategic purchasing, supply management practices and buyer performance improvement: an empirical study of UK manufacturing organisations

Abstract: Purchasing is increasingly seen as an important strategic activity of the firm. However, there is little evidence examining the effects of strategic purchasing on a firm's inter-organisational supply management practices and performance. The purpose of this paper is to examine the effect of strategic purchasing on the supply management practices of socialisation, supplier integration and supplier responsiveness, together with relationship performance. Using empirical data collected from 111 United Kingdom purchasing executives, a structural equation model is used to test the theoretical framework. The results provide support for four of the six hypotheses developed. Strategic purchasing was found to have an indirect, significant effect on improving buyer performance, acting through supplier integration. Strategic purchasing also had a significant effect on the use of socialisation mechanisms, but not on supplier responsiveness. Our research indicates that close, long-term supplier relationships can lead t...

Supplier development: communication approaches, activities and goals

Abstract: Operations managers rely on the purchasing function to obtain production inputs from suppliers and to ensure supplier performance. The link between supplier development activities performed by buying firms with their suppliers, in terms of operational outcomes and impact on competitive advantage for the buying firm has been well documented. However, a buying firm should, prior to setting up a supplier development program and investing in supplier development activities, establish goals it wants to achieve and determine how to achieve these goals. Until now, supplier development goals in general and their relationship with supplier development activities have received little research attention. The results from this empirical study suggest that the relationship between the goal to improve a supplier's capabilities and knowledge transfer from the buyer to the supplier firm is moderated by the degree of human interaction. Buying firms pursuing the strategy to improve supplier capabilities rely more intensive...

Supply chain networks with corporate social responsibility through integrated environmental decision-making

Abstract: In this paper we develop a framework for the modeling and analysis of supply chain networks with corporate social responsibility through integrated environmental decision-making. We consider the multicriteria decision-making behaviour of the various decision-makers (manufacturers, retailers, and consumers), which includes the maximization of net returns, the minimization of emissions (waste), and the minimization of risk. Increasing levels of social responsibility activities between decision-makers are assumed to reduce transaction costs, waste, as well as risk. We derive the optimality conditions, define the equilibrium state for the supply chain network, and derive the equivalent finite-dimensional variational inequality, the solution of which yields the equilibrium product flows transacted between the tiers of the supply chain network as well as the nodal prices. We then utilize the variational inequality formulation to provide qualitative properties of the equilibrium flow and price patterns and to pr...

Select supplier-related issues in modelling a dynamic supply chain: potential, challenges and direction for future research

Abstract: This paper is aimed at providing a broad review of the main approaches to supplier-related issues especially supplier selection, supplier–buyer relationships, supplier–buyer flexibility in relationships in a dynamic supply chain, through the description of the main characteristics, techniques, ongoing developments and research activities. Also, the issues relating to integration of core processes across organisational boundaries through improved communication, partnerships, alliances and cooperation are addressed, with its inherent focus on Web-enabled collaboration among the suppliers and the buyers. The aim of this paper is to consolidate the existing research efforts concerning the supplier-related issues, and to identify promising emerging issues for further study in this area. More specifically, this work analyses how diverse modelling techniques such as agent technology, petri nets, fuzzy logic and data mining can be applied to support dynamic supply chain configurations with reference to supplier-r...

Multi-site production planning integrating procurement and distribution plans in multi-echelon supply chains: an interactive fuzzy goal programming approach

Abstract: Motivated by a real case of an automobile company, this study proposes a multi-objective, multi-site production planning model integrating procurement and distribution plans in a multi-echelon supply chain network with multiple suppliers, multiple manufacturing plants and multiple distribution centres The model incorporates four important conflicting objectives simultaneously: minimisation of the total cost of logistics, maximisation of the total value of purchasing, minimisation of defective items and minimisation of late deliveries subject to some realistic constraints Due to the imprecise/fuzzy nature of the objectives’ aspiration levels and some critical data, an interactive fuzzy goal programming formulation is first developed Then, a novel fuzzy approach is proposed to convert the FGP model into an auxiliary crisp formulation to find an efficient compromise solution The proposed model and solution method are validated through some numerical tests Computational results indicate the practicality

Optimisation of traceability and operations planning: an integrated model for perishable food production

Abstract: The food industry has been under pressure regarding improving food safety, implementing efficient risk management, and managing quality ‘from farm to fork’. Individual parties in a food supply chain must make appropriate strategic and operational adjustments, enhance product quality and increase operational efficiency and profits. In this paper, an optimisation model is developed integrating traceability initiatives with operation factors to achieve desired product quality and minimum impact of product recall in an economic manner. A case study with numerical example is provided to illustrate the theory. Sensitivity analyses are conducted. A comparison between the proposed model and the existing model operating in the case company is also presented.

Effect of information sharing in supply chains with flexibility

Abstract: Coordination plays a pivotal role in successful design and implementation of supply chains, especially for those that are formed by independent and autonomous companies. More specifically, information sharing has widely been regarded as an essential tool to coordinate supply chains activities in order to overcome supply chains dynamics. A major contribution of this paper is to analyse the effects of negotiation-based information sharing in a distributed make-to-order manufacturing supply chain in a multi-period, multi-product types environment, which is modelled as a multi-agent system. Information can only be exchanged through negotiation in the agent-based framework with delivery quantity and due date flexibility, which is significantly different from the past reported literature that shared information is available anytime. Four schemes, namely, stochastic model (STO), flexibility in delivery quantity and due date without information sharing (FLEX_NI), flexibility in delivery quantity and due date with...

Supplier evaluation and selection: an augmented DEA approach

Abstract: Evaluating and selecting suppliers is an essential part of effectively managing today's dynamic and global supply chains. In this paper, we propose a supplier evaluation and selection methodology based on an extension of data envelopment analysis (DEA) that can evaluate suppliers in an efficient manner. Through the incorporations of a range of virtual standards, the proposed methodology termed augmented DEA, has enhanced discriminatory power over basic DEA models to rank suppliers. In addition, weight constraints are introduced to reduce the possibility of having inappropriate input and output factor weights. We demonstrate the application of augmented DEA with comparison experiments and find that the augmented DEA model has advantages over the basic DEA model as well as the cross-efficiency and super-efficiency models. Finally, we present a case application with data obtained from a communication and aviation electronics company to demonstrate the applicability and use of augmented DEA.

Treatment and recycling system optimisation with activity-based costing in WEEE reverse logistics management: an environmental supply chain perspective

Abstract: Waste electrical and electronic equipment (WEEE) reverse logistics management has increasingly received much attention in recent years not only because of the fast increase of WEEE but also the legislations in many developed countries. This paper focuses on the treatment and recycling system, and proposes a two-stage multi-objective decision framework. In the treatment stage, the responsible producer selects treatment suppliers under extended producer responsibility by a pre-emptive goal programming model. After the wastes are depolluted and transformed to recyclable materials, the process enters the recycling stage in which the decision-maker plans the reclaimed material production by a linear programming model for profit maximisation. An illustrative case study is presented, and the sensitivity analyses show that the ranking of suppliers is more stable than the quantities allocated to suppliers under different priority structures, so ranking of suppliers should also be given attention in such multi-obje...

Focused SWOT: diagnosing critical strengths and weaknesses

Abstract: Despite the problems involved in its use, SWOT (strengths-weaknesses-opportunities-threats) analysis remains a major strategic tool for listing the strengths and weaknesses of an organisation, for recording the major strengths and translating them into value. This paper presents a straightforward methodology for making a structured analysis of strengths and weaknesses, based on an analysis of important value-creating events and the strengths and weaknesses that caused these events. The focused SWOT methodology distils the strengths and weaknesses into core competences and core problems, by using the core-competence tree and the current-reality tree. The core competences and core problems are then linked into a plan of action aimed at preserving and leveraging the organisation's core competences, while defending against exposure to core problems. Applications of the methodology are presented and it is demonstrated in a detailed case study.

A review on strategic capacity planning for the semiconductor manufacturing industry

Abstract: Due to the high capital investment cost in the semiconductor manufacturing industry, strategic capacity planning plays an important role in improving business performance. The reasons that make these problems especially difficult are: the complex fabrication process, rapid changes in technology and products, the long lead time and the high cost of capacity increment, and the high uncertain demand and capacity. Hence, a review of the existing solutions to capacity planning to cope with these difficulties is important for developing new methodologies and practices. In this paper, we provide a review of the current research and fundamental methods in strategic capacity planning, identify emerging methods for capacity planning, and take an in-depth look at future research interests.

Setting manufacturing strategy for a company's international manufacturing network

Abstract: Manufacturing strategy is a plan for moving a company from where it is to where it wants to be. Determining the best manufacturing strategy is not easy because of the wide range of choices and constraints a company faces. Manufacturing strategy frameworks or models are helpful because they identify the objects that comprise manufacturing strategy and organise these objects into a structure that enables a company to understand and use the objects to develop strategy. This paper examines a company's international manufacturing network. It identifies and examines six manufacturing strategy objects (generic international strategies, manufacturing networks, network manufacturing outputs, network levers, network capability, and factory types), linkages between objects, and the manufacturing strategy framework that follows from these objects and linkages. Then the paper applies the framework to the manufacturing networks of three companies in the global steel industry: Arcelor (Luxembourg), Mittal (India), and D...

Stochastic multi-objective production-distribution network design using simulation-based optimization

Abstract: This paper addresses the design of production-distribution networks including both supply chain configuration and related operational decisions such as order splitting, transportation allocation and inventory control. The goal is to achieve the best compromise between cost and customer service level. An optimization methodology that combines a multi-objective genetic algorithm (MOGA) and simulation is proposed to optimize not only the structure of the production-distribution network but also its operation strategies and related control parameters. A flexible simulation framework is developed to enable the automatic simulation of the production-distribution network with all possible configurations and all possible control strategies. To illustrate its effectiveness, the proposed method is applied to a real life case study from automotive industry.

Optimisation of integrated process planning and scheduling using a particle swarm optimisation approach

Abstract: Traditionally, process planning and scheduling are two independent essential functions in a job shop manufacturing environment In this paper, a unified representation model for integrated process planning and scheduling (IPPS) has been developed Based on this model, a modern evolutionary algorithm, ie the particle swarm optimisation (PSO) algorithm has been employed to optimise the IPPS problem To explore the search space comprehensively, and to avoid being trapped into local optima, the PSO algorithm has been enhanced with new operators to improve its performance and different criteria, such as makespan, total job tardiness and balanced level of machine utilisation, have been used to evaluate the job performance To improve the flexibility and agility, a re-planning method has been developed to address the conditions of machine breakdown and new order arrival Case studies have been used to a verify the performance and efficiency of the modified PSO algorithm under different criteria A comparison has been made between the result of the modified PSO algorithm and those of the genetic algorithm (GA) and the simulated annealing (SA) algorithm respectively, and different characteristics of the three algorithms are indicated Case studies show that the developed PSO can generate satisfactory results in optimising the IPPS problem

Multi-population genetic algorithm to solve the synchronized and integrated two-level lot sizing and scheduling problem

Abstract: This paper introduces an evolutionary algorithm as a procedure to solve the Synchronized and Integrated Two-Level Lot Sizing and Scheduling Problem (SITLSP). This problem can be found in some industrial settings, mainly soft drink companies, where the production process involves two interdependent levels with decisions concerning raw material storage and soft drink bottling. The challenge is to simultaneously determine the lot-sizing and scheduling of raw materials in tanks and soft drinks in bottling lines, where setup costs and times depend on the previous items stored and bottled. A multi-population genetic algorithm approach with a novel representation of solutions for individuals and a hierarchical ternary tree structure for populations is proposed. Computational tests include comparisons with an exact approach for small-to-moderate-sized instances and with real-world production plans provided by a manufacturer.

The intervening effect of business innovation capability on the relationship between Total Quality Management and technological innovation

Abstract: The growing diffusion and acceptance in the business world of Total Quality Management (TQM) has attracted greater interest on the part of academia. Although fundamental questions focus on how the different dimensions of TQM can bring about better business performance, a more recent recurring issue pertains to the relationship between TQM and technological innovation and whether technological innovation might provide a source of competitive advantage. Unfortunately, from both theoretical and empirical perspectives, the relationship between TQM and technological innovation appears contradictory and complex. This paper argues that the relationship might be better understood from the contingent perspective of strategic management and thus proposes a multidimensional intervening variable in the relationship, called Business Innovation Capability (BIC). An empirical study of 105 Spanish industrial firms reveals that the effect of some business practices suggested by TQM on technological innovation can be bette...

A fuzzy AHP evaluation model for buyer–supplier relationships with the consideration of benefits, opportunities, costs and risks

Abstract: With increasingly fierce global competition, firms in various industries need to build a cooperative buyer–supplier relationship to survive and to acquire reasonable profit. Even though the literature on various types of collaboration between firms is abundant and the works on supplier selection models are numerous, the research that provides a mathematical model for the selection of the most appropriate form of buyer–supplier relationship is very limited. Existing buyer–supplier evaluation models usually only consider the benefits from the relationship, but not the opportunities, costs and risks that may need to be confronted. The main objective of this study is to propose an analytical approach to evaluate the forms of buyer–supplier relationship between a manufacturer and its supplier. A fuzzy analytic hierarchy process (AHP) model, which applies fuzzy set theory and the benefits, opportunities, costs and risks (BOCR) concept, is constructed to deal with uncertainty and to consider various aspects of a...

A new approach for the selection of advanced manufacturing technologies: DEA with double frontiers

Abstract: Selection of advanced manufacturing technologies (AMTs) is an important yet complex decision which requires careful consideration of various performance criteria. This paper proposes the use of data envelopment analysis (DEA) with double frontiers for the selection of AMTs, which considers not only the best (optimistic), but also the worst (pessimistic) relative efficiencies of each AMT. Compared with the traditional DEA, the DEA approach with double frontiers can identify the best AMT correctly and easily without the need to impose any weight restriction or the need to calculate the cross-efficiency matrix, which requires a large number of computations and may also result in inconsistent conclusions by aggressive and benevolent cross-efficiency models. Four numerical examples are examined using the DEA approach with double frontiers to illustrate its simplicity and usefulness in AMT selection and justification.

On measuring company performance within a supply chain

Abstract: Emerging research strengthens the connection between supply chain performance and a company's financial performance (D’Avanzo, R., Von Lewinski, H. and Van Wassenhove, L. N., 2003. The link between supply chain and financial performance. Supply Chain Management Review, November/December, 40–47). The focus on integrating functional internal processes has expanded to include the need for integrating these with external processes of business partners (Edwards, P., Peters, M. and Sharman, G., 2001. The effectiveness of information systems in supporting the extended supply chain. Journal of Business Logistics, 22(1), 1–27). This need for enterprise efficiency is compelling companies to review, to identify, and to adopt supply chain initiatives. This research investigates the use of common measurement metrics in an attempt to determine which one(s) are most useful for measuring performance as companies implement SCM practices. For firms that were engaged in SCM we found inventory and cycle time to be the most s...

Designing an optimal turnover-based storage rack for a 3D compact automated storage and retrieval system

Abstract: Compact, multi-deep (3D) automated storage and retrieval systems (AS/RS) are becoming increasingly popular for storing products. We study such a system where a storage and retrieval (S/R) machine takes care of movements in the horizontal and vertical directions of the rack, and an orthogonal conveying mechanism takes care of the depth movement. An important question is how to layout such systems under different storage policies to minimize the expected cycle time. We derive the expected single-command cycle time under the full-turnover-based storage policy and propose a model to determine the optimal rack dimensions by minimizing this cycle time. We simplify the model, and analytically determine optimal rack dimensions for any given rack capacity and ABC curve skewness. A significant cycle time reduction can be obtained compared with the random storage policy. We illustrate the findings of the study by applying them in a practical example.

Modeling and numerical analysis of line-cell conversion problems

Abstract: In this paper we define a line-cell conversion problem that has been reported as a new technical innovation in Japanese industry, and we construct a mathematical model to describe it. By numerical analysis of the model based on simulation experiments, we gain insight into line-cell conversion problems, such as (1) how many cells should be formatted, (2) how many workers should be assigned in each cell, and (3) how many workers should be rested on a shortened conveyor line when a conveyor assembly line is converted into cells, in order to optimise system performance, which is defined as the total throughput time and total labour power. Therefore, the model can be used as an evaluation tool in the case where (i) a company wants to change its production system (usually a belt conveyor line) to a new one (including cellular manufacturing), and (ii) a company wants to evaluate the performance of its converted system.