Search results for: supply chain performance

Authors: Nwauzoma Ohale Rowland, Bright Ugochukwu Umunna

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The world has been referred to as a global village for decades, adapting various technological and digital innovations to progress along the lines of development. Different continents have fully automated processes and procedures in the various sectors of their economies. This paper attempts to ascertain why the West African sub-continent while displaying a slow progression, has also joined the race toward having a fully automated process, albeit only in certain areas of its economy. Different reasons for this have been posited and will be discussed in this work. These reasons include high illiteracy rates and poor acceptance of new technologies. Studies were carried out that involved interactions with different business sectors and also a secondary-level investigation of experiments to ascertain the impact of automation in supply chain management on the West African market. Our reports show remarkable growth in businesses and sectors that have automated their processes. While this is the case, other results have also confirmed as due to the high illiteracy rates; the labour force has also been affected.

Keywords: Africa, automation, business, innovation, supply chain management, technology

Procedia PDF Downloads 74

Authors: K. Reitner, F. Staberhofer, W. Ortner, M. Gerschberger

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The purpose of this paper is to identify the main challenges faced by companies in the timber construction sector and to provide improvement opportunities that can be implemented on a short-, medium- and long-term basis. To identify the challenges and propose actions for each company a literature review and a multiple case research were conducted using the Quick Scan Audit Methodology. Finally, the findings and outcomes are compared with each other to support companies in the timer construction sector when implementing and restructuring their day-to-day activities.

Keywords: supply chain management, supply chain challenges and opportunities, timber construction sector

Procedia PDF Downloads 220

Authors: Mingming Leng

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Wal-Mart has allocated considerable human resources for its quality assurance program, in which the largest retailer serves its supply chains as a quality gatekeeper. Asda Stores Ltd., the second largest supermarket chain in Britain, is now investing £27m in significantly increasing the frequency of quality control checks in its supply chains and thus enhancing quality across its fresh food business. Moreover, Tesco, the largest British supermarket chain, already constructed a quality assessment center to carry out its gatekeeping responsibility. Motivated by the above practices, we consider a supply chain in which a retailer plays the gatekeeping role in quality assurance by identifying defects among a manufacturer's products prior to selling them to consumers. The impact of a retailer's gatekeeping activity on pricing and quality assurance in a supply chain has not been investigated in the operations management area. We draw a number of managerial insights that are expected to help practitioners judiciously consider the quality gatekeeping effort at the retail level. As in practice, when the retailer identifies a defective product, she immediately returns it to the manufacturer, who then replaces the defect with a good quality product and pays a penalty to the retailer. If the retailer does not recognize a defect but sells it to a consumer, then the consumer will identify the defect and return it to the retailer, who then passes the returned 'unidentified' defect to the manufacturer. The manufacturer also incurs a penalty cost. Accordingly, we analyze a two-stage pricing and quality decision problem, in which the manufacturer and the retailer bargain over the manufacturer's average defective rate and wholesale price at the first stage, and the retailer decides on her optimal retail price and gatekeeping intensity at the second stage. We also compare the results when the retailer performs quality gatekeeping with those when the retailer does not. Our supply chain analysis exposes some important managerial insights. For example, the retailer's quality gatekeeping can effectively reduce the channel-wide defective rate, if her penalty charge for each identified de-fect is larger than or equal to the market penalty for each unidentified defect. When the retailer imple-ments quality gatekeeping, the change in the negotiated wholesale price only depends on the manufac-turer's 'individual' benefit, and the change in the retailer's optimal retail price is only related to the channel-wide benefit. The retailer is willing to take on the quality gatekeeping responsibility, when the impact of quality relative to retail price on demand is high and/or the retailer has a strong bargaining power. We conclude that the retailer's quality gatekeeping can help reduce the defective rate for consumers, which becomes more significant when the retailer's bargaining position in her supply chain is stronger. Retailers with stronger bargaining powers can benefit more from their quality gatekeeping in supply chains.

Keywords: bargaining, game theory, pricing, quality, supply chain

Procedia PDF Downloads 251

Authors: Liane Marcia Freitas Silva, Fernando Augusto Silva Marins, Maria Silene Alexandre Leite

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The adoption of a network structure, like in the supply chains, favors the increase of dependence between companies and, by consequence, their vulnerability. Environment disasters, sociopolitical and economical events, and the dynamics of supply chains elevate the uncertainty of their operation, favoring the occurrence of events that can generate break up in the operations and other undesired consequences. Thus, supply chains are exposed to various risks that can influence the profitability of companies involved, and there are several previous studies that have proposed risk classification models in order to categorize the risks and to manage them. The objective of this paper is to analyze and discuss thirty of these risk classification models by means a theoretical survey. The research method adopted for analyzing and discussion includes three phases: The identification of the types of risks proposed in each one of the thirty models, the grouping of them considering equivalent concepts associated to their definitions, and, the analysis of these risks groups, evaluating their similarities and differences. After these analyses, it was possible to conclude that, in fact, there is more than thirty risks types identified in the literature of Supply Chains, but some of them are identical despite of be used distinct terms to characterize them, because different criteria for risk classification are adopted by researchers. In short, it is observed that some types of risks are identified as risk source for supply chains, such as, demand risk, environmental risk and safety risk. On the other hand, other types of risks are identified by the consequences that they can generate for the supply chains, such as, the reputation risk, the asset depreciation risk and the competitive risk. These results are consequence of the disagreements between researchers on risk classification, mainly about what is risk event and about what is the consequence of risk occurrence. An additional study is in developing in order to clarify how the risks can be generated, and which are the characteristics of the components in a Supply Chain that leads to occurrence of risk.

Keywords: sisks classification, survey, supply chain management, theoretical discussion

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Authors: Ayse Begum Kilic, Sevgi Ozkan

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Industry 4.0 (I4.0) is a significant and promising research topic that is expected to gain more importance due to its effects on important concepts like cost, resource management, and accessibility. Instead of focusing those effects in only one area, combining different departments, and see the big picture helps to make more realistic predictions about the future. The aim of this paper is to identify the implications of Industry 4.0 for both supply chain management and human resources management by finding out the topics that take place at the intersection of them. Another objective is helping the readers to realize the expected changes in these two areas due to I4.0 in order to take the necessary steps in advance and make recommendations to catch up the latest trends. The expected changes are concluded from the industry reports and related journal papers in the literature. As found in the literature, this study is the first to combine the Industry 4.0, supply chain management and human resources management and urges to lead future works by finding out the intersections of those three areas. Benefits of I4.0 and the amount, research areas and the publication years of papers on I4.0 in the academic journals are mentioned in this paper. One of the main findings of this research is that a change in the labor force qualifications is expected with the advancements in the technology. There will be a need for higher level of skills from the workers. This will directly affect the human resources management in a way of recruiting and managing those people. Another main finding is, as it is explained with an example in the article, the advancements in the technology will change the place of production. For instance, 'dark factories', a popular topic of I4.0, will enable manufacturers to produce in places that close to their marketplace. The supply chains are expected to be influenced by that change.

Keywords: human resources management, industry 4.0, logistics, supply chain management

Procedia PDF Downloads 140

Authors: Dimpy Shah

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The global economy has substantially changed in last three decades. Now almost all markets are transparent and visible for global customers. The corporates are now no more reliant on local markets for trade. The information technology revolution has changed business dynamics and marketing practices of corporate. The markets are divided into two different formats: traditional and virtual. In very short span of time, many e-commerce portals have captured global market. This strategy is well supported by global delivery system of multinational logistic companies. Now the markets are dealing with global supply chain networks, which are more demand driven and customer oriented. The corporate have realized importance of supply chain integration and marketing in this competitive environment. The Indian markets are also significantly affected with all these changes. In terms of population, India is in second place after China. In terms of demography, almost half of the population is of youth. It has been observed that the Indian youth are more inclined towards e-commerce and prefer to buy goods from web portal. Initially, this trend was observed in Indian service sector, textile and electronic goods and now further extended in other product categories. The FMCG companies have also recognized this change and started integration of their supply chain with e-commerce platform. This paper attempts to understand contemporary marketing practices of corporate in e-commerce business in Indian food and beverages segment and also tries to identify innovative marketing practices for proper execution of their strategies. The findings are mainly focused on supply chain re-integration and brand building strategies with proper utilization of social media.

Keywords: FMCG (Fast Moving Consumer Goods), ISCM (Integrated supply chain management), RFID (Radio Frequency Identification), traditional and virtual formats

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Authors: Sarah El-Gamal, Passent Hossam, Ahmed Abd El Aziz, Rojina Mahmoud, Ahmed Hassan, Dalia Hilal, Eman Ayman, Hana Haytham, Omar Khamis

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Several concerns fall upon the supply chain, especially the cold supply chain. According to the literature, the main challenges in the cold supply chain are the distribution and storage phases. In this research, researchers focused on the storage area, which contains several activities such as the picking activity that faces a lot of obstacles and challenges The implementation of IoT solutions enables businesses to monitor the temperature of food items, which is perhaps the most critical parameter in cold chains. Therefore, researchers proposed a practical solution that would help in eliminating the problems related to ineffective picking for products, especially fish and seafood products, by using IoT technology, most notably LiFi technology. Thus, guaranteeing sufficient picking, reducing waste, and consequently lowering costs. A prototype was specially designed and examined. This research is a single case study research. Two methods of data collection were used; observation and semi-structured interviews. Semi-structured interviews were conducted with managers and decision maker at Carrefour Alexandria to validate the problem and the proposed practical solution using IoTandLiFi technology. A total of three interviews were conducted. As a result, a SWOT analysis was achieved in order to highlight all the strengths and weaknesses of using the recommended Lifi solution in the picking process. According to the investigations, it was found that the use of IoT and LiFi technology is cost effective, efficient, and reduces human errors, minimize the percentage of product waste and thus save money and cost. Thus, increasing customer satisfaction and profits gained.

Keywords: cold supply chain, picking process, temperature control, IOT, warehousing, LIFI

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Authors: Saeed Poormoaied

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Perishability and developing an intelligent control policy for perishable items are the major concerns of marketing managers in a supply chain. In this study, we address a two-echelon supply chain problem for perishable items with a single vendor and a single buyer. The buyer adopts an aged-based continuous review policy which works by taking both the stock level and the aging process of items into account. The vendor works under the warehouse framework, where its lot size is determined with respect to the batch size of the buyer. The model holds for a positive and fixed lead time for the buyer, and zero lead time for the vendor. The demand follows a Poisson process and any unmet demand is lost. We provide exact analytic expressions for the operational characteristics of the system by using the renewal reward theorem. Items have a fixed lifetime after which they become unusable and are disposed of from the buyer's system. The age of items starts when they are unpacked and ready for the consumption at the buyer. When items are held by the vendor, there is no aging process which results in no perishing at the vendor's site. The model is developed under the centralized framework, which takes the expected profit of both vendor and buyer into consideration. The goal is to determine the optimal policy parameters under the service level constraint at the retailer's site. A sensitivity analysis is performed to investigate the effect of the key input parameters on the expected profit and order quantity in the supply chain. The efficiency of the proposed age-based policy is also evaluated through a numerical study. Our results show that when the unit perishing cost is negligible, a significant cost saving is achieved.

Keywords: two-echelon supply chain, perishable items, age-based policy, renewal reward theorem

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Authors: Eugene Y. C. Wong, Henry Y. K. Lau, Mardjuki Raman

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CO2 emissions from maritime transport operations represent a substantial part of the total greenhouse gas emission. Vessels are designed with better energy efficiency. Minimizing CO2 emission in maritime operations plays an important role in supply chain decarbonisation. This paper reviews the initiatives on slow steaming operations towards the reduction of carbon emission. It investigates the relationship and impact among slow steaming cost reduction, carbon emission reduction, and shipment delay. A scenario-based cost-driven decision support model is developed to facilitate the selection of the optimal slow steaming options, considering the cost on bunker fuel consumption, available speed, carbon emission, and shipment delay. The incorporation of the social cost of cargo is reviewed and suggested. Additional measures on the effect of vessels sizes, routing, and type of fuels towards decarbonisation are discussed.

Keywords: slow steaming, carbon emission, maritime logistics, sustainability, green supply chain

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Authors: Yuan-Jye Tseng, Jia-Shu Li

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To design a product with the given product requirement and design objective, there can be alternative ways to propose the detailed design specifications of the product. In the design modeling stage, alternative design cases with detailed specifications can be modeled to fulfill the product requirement and design objective. Therefore, in the design evaluation stage, it is required to perform an evaluation of the alternative design cases for deciding the final design. The purpose of this research is to develop a product evaluation model for evaluating the alternative design cases by integrated evaluating the criteria of functional design, Kansei design, and design for supply chain. The criteria in the functional design group include primary function, expansion function, improved function, and new function. The criteria in the Kansei group include geometric shape, dimension, surface finish, and layout. The criteria in the design for supply chain group include material, manufacturing process, assembly, and supply chain operation. From the point of view of value and cost, the criteria in the functional design group and Kansei design group represent the design value of the product. The criteria in the design for supply chain group represent the supply chain and manufacturing cost of the product. It is required to evaluate the design value and the supply chain cost to determine the final design. For the purpose of evaluating the criteria in the three criteria groups, a fuzzy analytic network process (FANP) method is presented to evaluate a weighted index by calculating the total relational values among the three groups. A method using the technique for order preference by similarity to ideal solution (TOPSIS) is used to compare and rank the design alternative cases according to the weighted index using the total relational values of the criteria. The final decision of a design case can be determined by using the ordered ranking. For example, the design case with the top ranking can be selected as the final design case. Based on the criteria in the evaluation, the design objective can be achieved with a combined and weighted effect of the design value and manufacturing cost. An example product is demonstrated and illustrated in the presentation. It shows that the design evaluation model is useful for integrated evaluation of functional design, Kansei design, and design for supply chain to determine the best design case and achieve the design objective.

Keywords: design for supply chain, design evaluation, functional design, Kansei design, fuzzy analytic network process, technique for order preference by similarity to ideal solution

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Authors: Kwong Yeung

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Theories about strategic purchasing and quality performance are underdeveloped. Understanding the evolving role of purchasing from reactive to proactive is a pressing strategic issue. Using survey responses from 176 manufacturing and electronics industry professionals, we study the relationships between strategic purchasing and supply chain partners’ quality performance to answer the following questions: Can transaction cost economics be used to elucidate the strategic purchasing-quality performance relationship? Is this strategic purchasing-quality performance relationship moderated by critical item analysis? The findings indicate that critical item analysis positively and significantly moderates the strategic purchasing-quality performance relationship.

Keywords: critical item analysis, moderation, quality performance, strategic purchasing, transaction cost economics

Procedia PDF Downloads 535

Authors: Teresita Lopez Joy, Jose A. Acevedo Suarez, Martha I. Gomez Acosta, Ana Julia Acevedo Urquiaga

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Current trends in business competitiveness indicate the need to manage businesses as supply chains and not in isolation. The use of strategies aimed at maximum satisfaction of customers in a network and based on inter-company cooperation; contribute to obtaining successful joint results. In the Cuban economic context, the development of productive linkages to achieve integrated management of supply chains is considering a key aspect. In order to achieve this jump, it is necessary to develop acting capabilities in the entities that make up the chains through a systematic procedure that allows arriving at a management model in consonance with the environment. The objective of the research focuses on: designing a model and procedure for the development of integrated management of supply chains in economic entities. The results obtained are: the Model and the Procedure for the Development of the Supply Chains Integrated Management (MP-SCIM). The Model is based on the development of logistics in the network actors, the joint work between companies, collaborative planning and the monitoring of a main indicator according to the end customers. The application Procedure starts from the well-founded need for development in a supply chain and focuses on training entrepreneurs as doers. The characterization and diagnosis is done to later define the design of the network and the relationships between the companies. It takes into account the feedback as a method of updating the conditions and way to focus the objectives according to the final customers. The MP-SCIM is the result of systematic work with a supply chain approach in companies that have consolidated as coordinators of their network. The cases of the edible oil chain and explosives for construction sector reflect results of more remarkable advances since they have applied this approach for more than 5 years and maintain it as a general strategy of successful development. The edible oil trading company experienced a jump in sales. In 2006, the company started the analysis in order to define the supply chain, apply diagnosis techniques, define problems and implement solutions. The involvement of the management and the progressive formation of performance capacities in the personnel allowed the application of tools according to the context. The company that coordinates the explosives chain for construction sector shows adequate training with independence and opportunity in the face of different situations and variations of their business environment. The appropriation of tools and techniques for the analysis and implementation of proposals is a characteristic feature of this case. The coordinating entity applies integrated supply chain management to its decisions based on the timely training of the necessary action capabilities for each situation. Other cases of study and application that validate these tools are also detailed in this paper, and they highlight the results of generalization in the quantitative and qualitative improvement according to the final clients. These cases are: teaching literature in universities, agricultural products of local scope and medicine supply chains.

Keywords: integrated management, logistic system, supply chain management, tactical-operative planning

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Authors: Usama Abdulwahab, Mohammed Wahab

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This paper presents the application of uncapacitated facility location problems (UFLP) and 1-median problems to support decision making in blood supply chain networks. A plethora of factors make blood supply-chain networks a complex, yet vital problem for the regional blood bank. These factors are rapidly increasing demand; criticality of the product; strict storage and handling requirements; and the vastness of the theater of operations. As in the UFLP, facilities can be opened at any of $m$ predefined locations with given fixed costs. Clients have to be allocated to the open facilities. In classical location models, the allocation cost is the distance between a client and an open facility. In this model, the costs are the allocation cost, transportation costs, and inventory costs. In order to address this problem the median algorithm is used to analyze inventory, evaluate supply chain status, monitor performance metrics at different levels of granularity, and detect potential problems and opportunities for improvement. The Euclidean distance data for some Ontario cities (demand nodes) are used to test the developed algorithm. Sitation software, lagrangian relaxation algorithm, and branch and bound heuristics are used to solve this model. Computational experiments confirm the efficiency of the proposed approach. Compared to the existing modeling and solution methods, the median algorithm approach not only provides a more general modeling framework but also leads to efficient solution times in general.

Keywords: approximate dynamic programming, facility location, perishable product, inventory model, blood platelet, P-median problem

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Authors: Mohammad Mahdi Paydar, Armin Cheraghalipour, Mostafa Hajiaghaei-Keshteli

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Nowadays, in advanced countries, agriculture as one of the most significant sectors of the economy, plays an important role in its political and economic independence. Due to farmers' lack of information about products' demand and lack of proper planning for harvest time, annually the considerable amount of products is corrupted. Besides, in this paper, we attempt to improve these unfavorable conditions via designing an effective supply chain network that tries to minimize total costs of agricultural products along with minimizing shortage in demand points. To validate the proposed model, a stochastic optimization approach by using a branch and bound solver of the LINGO software is utilized. Furthermore, to accumulate the data of parameters, a case study in Mazandaran province placed in the north of Iran has been applied. Finally, using ɛ-constraint approach, a Pareto front is obtained and one of its Pareto solutions as best solution is selected. Then, related results of this solution are explained. Finally, conclusions and suggestions for the future research are presented.

Keywords: perishable products, stochastic optimization, agricultural supply chain, ɛ-constraint

Procedia PDF Downloads 341

Authors: Hamideh Sadat Zekri, Seyed Mojtaba Hosseinalipour, Mohammadreza Hafezi

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Nowadays, an organization cannot usually overcome all tasks singly due to the increasing complexity and vast expanse of projects, increment in uncertainty of activities, fast advances in technology, advent and influence of various factors in decision-making and implication of projects, and competitive atmosphere of different affairs. Thus, firms proceed to outsource the tasks to subcontractors. Nevertheless, large Iranian contracting companies suffer from extra consumed costs and time owing to conflicts between the activities of suppliers and subcontractors. The paucity of coordination in planning and execution, scarcity of coordination among suppliers, subcontractors, and the main contractor during the implementation of construction activities and also the lack of proper management of the aforesaid situation result in the growth of contradictions, number of claims, and legal issues in a project and consequently impose enormous expenses on those companies. Regarding the prosperity of supply chain management in other industries, its importance is increasingly getting appreciated in the field of construction. The ultimate aim of supply chain management is an effective delivery of the best value for customers, which is achievable by encouraging the members to interact and collaborate. In the present research, there was an effort to obtain a set of relevant challenges in the managing of subcontractors by identifying the main contractors and subcontractors and their role in the execution of projects and the supply chain management in the construction industry. Then, some of those challenges were selected in accordance with the views of industry professionals and academic experts. In the next step, a questionnaire was prepared and completed based on the analytic hierarchy process (AHP) and the challenges were prioritized. When it comes to subcontractors, the findings of the research demonstrate that difficulties in timely payments, alterations in approved drawings and the lack of rectification of job after completion by the subcontractor, paucity of a predetermined and legal process for qualifications of subcontractors, neglecting the supply chain processes in material procurement from producers, and delays in delivery of works by a subcontractor are the most significant problems. Finally, some solutions for encountering, eradicating, or reducing of mentioned problems are presented in accordance with previous studies and a survey from specialists.

Keywords: main contractors, subcontractors, supply chain management, construction supply chain, analytic hierarchy process, solution

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Authors: Mira Trebar

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Logistics processes of perishable food in the supply chain include the distribution activities and the real time temperature monitoring to fulfil the cold chain requirements. The paper presents the use of RFID (Radio Frequency Identification) technology as an identification tool of receiving and shipping activities in the cold store. At the same time, the use of RFID data loggers with temperature sensors is presented to observe and store the temperatures for the purpose of analyzing the processes and having the history data available for traceability purposes and efficient recall management.

Keywords: logistics, warehouse, RFID device, cold chain

Procedia PDF Downloads 597

Authors: Carlos Fontanillas

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Brazil is going through a real revolution in the logistics area. It is increasingly common to find articles and news in this context, as companies begin to become aware that a good management of the areas that make up the logistics can bring excellent results in reducing costs and increasing productivity. With this, companies are investing more emphasis on reduced spending on storage and transport of their products to ensure competitiveness. The scope of this work is the analysis of the logistics of a restaurant and materials will be presented the best way to serve the customer, avoiding the interruption of production due to lack of materials; for it will be analyzed the supply chain in terms of acquisition costs, maintenance and service demand.

Keywords: ABC curve, logistic, productivity, supply chain

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Authors: M. G. Mattos, J. E. Pécora Jr, T. A. Briso

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Today's challenging business environment, with unpredictable demand and volatility, requires a supply chain strategy that handles uncertainty and risks in the right way. Even though inventory models have been previously explored, this paper seeks to apply these concepts on a practical situation. This study involves the inventory replenishment problem, applying techniques that are mainly based on mathematical assumptions and modeling. The primary goal is to improve the retailer’s supply chain processes taking store differences when setting the various target stock levels. Through inventory review policy, picking piece implementation and minimum exposure definition, we were able not only to promote the inventory reduction as well as improve sales results. The inventory management theory from literature review was then tested on a single case study regarding a particular department in one of the largest Latam retail chains.

Keywords: inventory, distribution, retail, risk, safety stock, sales, uncertainty

Procedia PDF Downloads 246

Authors: Zeynep Sener, Mehtap Dursun

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Supplier evaluation and selection is one of the most important components of an effective supply chain management system. Due to the expanding competition in healthcare, selecting the right medical device suppliers offers great potential for increasing quality while decreasing costs. This paper proposes a fuzzy decision making approach for medical supplier selection. A real-world medical device supplier selection problem is presented to illustrate the application of the proposed decision methodology.

Keywords: fuzzy decision making, fuzzy multiple objective programming, medical supply chain, supplier selection

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Authors: Fauzia Dianawati, Riska W. Purnomo

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Food and agricultural sector become the biggest sector contributing to inflation in Indonesia. Especially in Wonogiri district, red cayenne pepper was the biggest sector contributing to inflation on 2016. A national statistic proved that in recent five years red cayenne pepper has the highest average level of fluctuation among all commodities. Some factors, like supply chain, price disparity, production quantity, crop failure, and oil price become the possible factor causes high volatility level in red cayenne pepper price. Therefore, this research tries to find the key factor causing fluctuation on red cayenne pepper by using ARCH/GARCH method. The method could accommodate the presence of heteroscedasticity in time series data. At the end of the research, it is statistically found that the second level of supply chain becomes the biggest part contributing to inflation with 3,35 of coefficient in fluctuation forecasting model of red cayenne pepper price. This model could become a reference to the government to determine the appropriate policy in maintaining the price stability of red cayenne pepper.

Keywords: ARCH/GARCH, forecasting, red cayenne pepper, volatility, supply chain

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Authors: Zeinab Haji Abolhasani, Romeo Marian, Lee Luong

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This paper and its companions (Part II, Part III) will concentrate on optimizing a class of supply chain problems known as Multi- Commodities Consumer Supply Chain (MCCSC) problem. MCCSC problem belongs to production-distribution (P-D) planning category. It aims to determine facilities location, consumers’ allocation, and facilities configuration to minimize total cost (CT) of the entire network. These facilities can be manufacturer units (MUs), distribution centres (DCs), and retailers/end-users (REs) but not limited to them. To address this problem, three major tasks should be undertaken. At the first place, a mixed integer non-linear programming (MINP) mathematical model is developed. Then, system’s behaviors under different conditions will be observed using a simulation modeling tool. Finally, the most optimum solution (minimum CT) of the system will be obtained using a multi-objective optimization technique. Due to the large size of the problem, and the uncertainties in finding the most optimum solution, integration of modeling and simulation methodologies is proposed followed by developing new approach known as GASG. It is a genetic algorithm on the basis of granular simulation which is the subject of the methodology of this research. In part II, MCCSC is simulated using discrete-event simulation (DES) device within an integrated environment of SimEvents and Simulink of MATLAB® software package followed by a comprehensive case study to examine the given strategy. Also, the effect of genetic operators on the obtained optimal/near optimal solution by the simulation model will be discussed in part III.

Keywords: supply chain, genetic algorithm, optimization, simulation, discrete event system

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Authors: Ryota Kuzuki, Mitsuhiro Kohara, Noboru Kizuki, Satoshi Yoshida, Hidetaka Hirai, Yuta Nezasa

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About fifty years have passed since Japan's gas supply industry became the first in the world to switch from coal and oil to LNG as a city gas feedstock. Since the Japanese government target of net-zero carbon emission in 2050 was announced in October 2020, it has now entered a new era of challenges to commit to the requirement for decarbonization. This paper describes the situation that synthetic methane, produced from renewable energy-derived hydrogen and recycled carbon, is a promising national policy of transition toward net-zero society. In November 2020, the Japan Gas Association announced the 'Carbon Neutral Challenge 2050' as a vision to contribute to the decarbonization of society by converting the city gas supply to carbon neutral. The key technologies is methanation. This paper shows that methanation is a realistic solution to contribute to the decarbonization of the whole country at a lower social cost, utilizing the supply chain that already exists, from LNG plants to burner chips. The challenges during the transition period (2030-2050), as CO2 captured from exhaust of thermal power plants and industrial factories are expected to be used, it is proposed that a system of guarantee of origin (GO) for H2 and CO2 should be established and harmonize international rules for calculating and allocating greenhouse gas emissions in the supply chain, a platform is also needed to manage tracking information on certified environmental values.

Keywords: synthetic methane, recycled carbon fuels, methanation, transition period, environmental value transfer platform

Procedia PDF Downloads 82

Authors: Qamar Iqbal

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Companies strive to improve their forecasting methods to predict the fluctuations in customer demand. These fluctuation and variation in demand affect the manufacturing operations and can limit a company’s ability to fulfill customer demand on time. Companies keep the inventory buffer and maintain the stocking levels to reduce the impact of demand variation. A mid-size company deals with thousands of stock keeping units (skus). It is neither easy and nor efficient to control and manage each sku. Inventory classification provides a tool to the management to increase their ability to support customer demand. The paper presents a framework that shows how inventory classification can play a role to increase supply chain responsiveness. A case study will be presented to further elaborate the method both for build-to-order and build-to-forecast manufacturing environments. Results will be compared that will show which manufacturing setting has advantage over another under different circumstances. The outcome of this study is very useful to the management because this will give them an insight on how inventory classification can be used to increase their ability to respond to changing customer needs.

Keywords: inventory classification, supply chain responsiveness, forecast, manufacturing environment

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Authors: T. T. Tham

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The aim of this study is to propose an integrated approach to determine the most suitable programs, based on Quality Function Deployment (QFD), Sensitivity Analysis (SA) and Multi-Objective Linear Programming model (MOLP). Firstly, QFD is used to determine business requirements and transform them into business and supply chain programs. From the QFD, technical scores of all programs are obtained. All programs are then evaluated through five criteria (productivity, quality, cost, technical score, and feasibility). Sets of weight of these criteria are built using Sensitivity Analysis. Multi-Objective Linear Programming model is applied to select suitable programs according to multiple conflicting objectives under a budget constraint. A case study from the Sai Gon-Mien Tay Beer Company is given to illustrate the proposed methodology. The outcome of the study provides a comprehensive picture for companies to select suitable programs to obtain the optimal solution according to their preference.

Keywords: business program, multi-objective linear programming model, quality function deployment, sensitivity analysis, supply chain management

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Authors: E. Behmanesh, J. Pannek

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The distribution-allocation problem is known as one of the most comprehensive strategic decision. In real-world cases, it is impossible to solve a distribution-allocation problem in traditional ways with acceptable time. Hence researchers develop efficient non-traditional techniques for the large-term operation of the whole supply chain. These techniques provide near-optimal solutions particularly for large scales test problems. This paper, presents an integrated supply chain model which is flexible in the delivery path. As the solution methodology, we apply a memetic algorithm with a novelty in population presentation. To illustrate the performance of the proposed memetic algorithm, LINGO optimization software serves as a comparison basis for small size problems. In large size cases that we are dealing with in the real world, the Genetic algorithm as the second metaheuristic algorithm is considered to compare the results and show the efficiency of the memetic algorithm.

Keywords: integrated logistics network, flexible path, memetic algorithm, genetic algorithm

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Authors: Arnaud Deshais

Abstract:

The supply chain industry has integrated the need for supplier Diversity and Inclusion (D&I), mostly from an ethical and moral argument. In addition, in some countries, it is also a legal requirement for companies reaching a certain size. As a matter of fact, a lot of successful companies have developed a Corporate Social Responsibility Program that encourages diversity and inclusion in the supply chain, such as building strong relationships with minority owned businesses (women, LGBT, veterans, etc.). Outside ethical and legal perspectives, it is also worth researching the economic and financial benefits of pursuing such efforts. Through surveys of purchasing and supply chain managers in their current roles as well as review of some case studies on supplier based D&I programs, it becomes apparent that a financial return on investment is to be expected as well for companies who make a concerted effort to grow their D&I programs. The study explores the levers to increase shareholder value and business efficiencies. Finally, the research highlights the competitive advantage related to a broad minority based supplier network. The benefits manifest themselves in the areas of competitiveness, innovation, and collaboration. The economic reward ends up being at the forefront of those programs while being an opportunity for organizations to become 'a good citizen'.

Keywords: diversity, inclusion, purchasing, supplier

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Authors: Giang Ngo Tinh Nguyen

Abstract:

Agriculture plays an important role in the economy of Vietnam and coffee is one of most crucial agricultural commodities for exporting but the current farming methods and processing infrastructure could not keep up with the development of the sector. There are many catastrophic impacts on the environment such as deforestation; soil degradation that leads to a decrease in the quality of coffee beans. Therefore, improving supply chain to develop the cultivation of sustainable coffee is one of the most important strategies to boost the coffee industry and create a competitive advantage for Vietnamese coffee in the worldwide market. If all stakeholders in the supply chain network unite together; the sustainable production of coffee will be scaled up and the future of coffee industry will be firmly secured. Buon Ma Thuot city, Dak Lak province is the principal growing region for Vietnamese coffee which accounted for a third of total coffee area in Vietnam. It plays a strategically crucial role in the development of sustainable Vietnamese coffee. Thus, the research is to improve the supply chain of sustainable Vietnamese coffee production in Buon Ma Thuot city, Dak Lak province, Vietnam for the purpose of increasing the yields and export availability as well as helping coffee farmers to be more flexible in an ever-changing market situation. It will help to affirm Vietnamese coffee brand when entering international market; improve the livelihood of farmers and conserve the environment of this area. Besides, after analyzing the data, a logistic regression model is established to explain the relationship between the dependent variable and independent variables to help sustainable coffee organizations forecast the probability of farmer will be having a sustainable certificate with their current situation and help them choose promising candidates to develop sustainable programs. It investigates opinions of local farmers through quantitative surveys. Qualitative interviews are also used to interview local collectors and staff of Trung Nguyen manufacturing company to have an overview of the situation.

Keywords: supply chain management, sustainable agricultural development, sustainable coffee, Vietnamese coffee

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Authors: Saleh Abu Hashanah, Abirami Radhakrishnan, Dessa David

Abstract:

Sustainable practices in the supply chain have been an area of focus that require consideration of environmental, economic, and social sustainability practices. This paper aims to examine the use of blockchain as a disruptive technology to promote sustainable supply chains. Content analysis was used to analyze the uses of blockchain technology in sustainable supply chains. The results showed that blockchain technology features such as traceability, transparency, smart contracts, accountability, trust, immutability, anti-fraud, and decentralization promote sustainable supply chains. It is found that these features have impacted organizational efficiency in operations, transportation, and production, minimizing costs and reducing carbon emissions. In addition, blockchain technology has been found to elicit customer trust in the products.

Keywords: blockchain technology, sustainability, supply chains, economic sustainability, environmental sustainability, social sustainability

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Authors: Sutanto, Alexander Christy, N. Sutrisno

Abstract:

The demand of a product is linearly dependent on the price and quality of the product. It is analog to the demand of the employee in job-seeker problem. This paper address a closed-loop supply chain (CLSC) where a university plays role as manufacturer that produce graduates as job-seeker according to the demand and promote them to a certain corporation through a trial. Unemployed occurs when the job-seeker failed the trial or dismissed. A third party accomodates the unemployed and sends them back to the university to increase their quality through training.

Keywords: CLSC, price, quality, job-seeker problem

Procedia PDF Downloads 246

Authors: Vikram Chowdhary, Marek Vins

Abstract:

The profitability of the pharmaceutical drug business has attracted considerable interest, but it also faces significant challenges. Counterfeiters take advantage of the industry's vulnerabilities, which are further exacerbated by the globalization of the market, online trading, and complex supply chains. Governments and organizations worldwide are dedicated to creating a secure environment that ensures a consistent and genuine supply of pharmaceutical products. In 2019, the European authorities implemented regulation EU 2016/161 to strengthen traceability and transparency throughout the entire drug supply chain. This regulation requires the addition of enhanced security features, such as serializing items to the saleable unit level or individual packs. Despite these efforts, the incidents of pharmaceutical counterfeiting continue to rise globally, with regulated territories being particularly affected. This paper examines the effectiveness of the drug serialization system implemented by European authorities. By conducting a systematic literature review, we assess the implementation of drug serialization and explore the potential benefits of integrating emerging digital technologies, such as RFID and Blockchain, to improve traceability and management. The objective is to fortify pharmaceutical supply chains against counterfeiters and manipulators and ensure their security.

Keywords: blockchain, counterfeit drugs, EU drug serialization, pharmaceutical industry, RFID

Procedia PDF Downloads 74