Search results for: supply chain quality management

Authors: Armen Grigoryan, Milena Arakelyan

Abstract:

The idea of smart logistics is still quite a complicated one. It can be used to market products to a large number of customers or to acquire raw materials of the highest quality at the lowest cost in geographically dispersed areas. The use of smart contracts in logistics and supply chain management has the potential to revolutionize the way that goods are tracked, transported, and managed. Smart contracts are simply computer programs written in one of the blockchain programming languages (Solidity, Rust, Vyper), which are capable of self-execution once the predetermined conditions are met. They can be used to automate and streamline many of the traditional manual processes that are currently used in logistics and supply chain management, including the tracking and movement of goods, the management of inventory, and the facilitation of payments and settlements between different parties in the supply chain. Currently, logistics is a core area for companies which is concerned with transporting products between parties. Still, the problem of this sector is that its scale may lead to detainments and defaults in the delivery of goods, as well as other issues. Moreover, large distributors require a large number of workers to meet all the needs of their stores. All this may contribute to big detainments in order processing and increases the potentiality of losing orders. In an attempt to break this problem, companies have automated all their procedures, contributing to a significant augmentation in the number of businesses and distributors in the logistics sector. Hence, blockchain technology and smart contracted legal agreements seem to be suitable concepts to redesign and optimize collaborative business processes and supply chains. The main purpose of this paper is to examine the scope of blockchain technology and smart contracts in the field of logistics and supply chain management. This study discusses the research question of how and to which extent smart contracts and blockchain technology can facilitate and improve the implementation of collaborative business structures for sustainable entrepreneurial activities in smart supply chains. The intention is to provide a comprehensive overview of the existing research on the use of smart contracts in logistics and supply chain management and to identify any gaps or limitations in the current knowledge on this topic. This review aims to provide a summary and evaluation of the key findings and themes that emerge from the research, as well as to suggest potential directions for future research on the use of smart contracts in logistics and supply chain management.

Keywords: smart contracts, smart logistics, smart supply chain management, blockchain and smart contracts in logistics, smart contracts for controlling supply chain management

Procedia PDF Downloads 70

Authors: Siddhartha Paul, Debabrata Das

Abstract:

Closed-loop supply chain (CLSC) management focuses on integrating forward and reverse flow of material as well as information to maximize value creation over the entire life-cycle of a product. Bullwhip effect in supply chain management refers to the phenomenon where a small variation in customers’ demand results in larger variation of orders at the upstream levels of supply chain. Since the quality and quantity of products returned to the collection centers (as a part of reverse logistics process) are uncertain, bullwhip effect is inevitable in CLSC. Therefore, in the present study, first, through an extensive literature survey, we identify all the important factors related to forward as well as reverse supply chain which causes bullwhip effect in CLSC. Second, we develop a system dynamics model to study the interrelationship among the factors and their effect on the performance of overall CLSC. Finally, the results of the simulation study suggest that demand forecasting, lead times, information sharing, inventory and work in progress adjustment rate, supply shortages, batch ordering, price variations, erratic human behavior, parameter correcting, delivery time delays, return rate of used products, manufacturing and remanufacturing capacity constraints are the important factors which have a significant influence on system’s performance, specifically on bullwhip effect in a CLSC.

Keywords: bullwhip effect, closed-loop supply chain, system dynamics, variance ratio

Procedia PDF Downloads 143

Authors: Mingming Leng

Abstract:

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: Amirhossein Mahlouji

Abstract:

In current business market, the concept of integrating environmental sustainability into long-term as well as routine operations is becoming a prevailing trend. Therefore, several stimuli are helping organization to move toward environmental sustainability. The concept of green supply chain management can help provide a strategic framework to develop a customized sustainability roadmap for each organization. In this regard, this paper is mainly focused on presenting a strategic decision making framework that will assist top level decision-making issues. This decision-making tool is based on literature and practice in the area of environmentally conscious business practices. The goal of this paper will be on the components and parameters of green supply chain management and how they serve as a baseline for the decision framework. Later, the applicability of a multi-input multi-output decision model (MIMO), will be analyzed as the analytical network process, within the green supply chain.

Keywords: Multi-attribute, Green Supply Chain, Environmental, Sustainability

Procedia PDF Downloads 121

Authors: Keivan Amirbagheri, Ana Nuñez-Carballosa, Laura Guitart-Tarrés

Abstract:

Over the last couple of decades, enterprises have begun to accept the need for environmental management and have started to implement environmental management programs to compete in the markets. The implementation of green supply chain management (GSCM) practices can provide valuable opportunities to improve firm performance. Through the prior investigations, the ascending tendency of the numbers of published papers in the field of green supply chain management practices has been reported and it shows the high interest level of the authors to work in this area. Besides, there is still a gap to study more about the relationship of GSCM to the organizational performance (OP). So, the purpose of this research is to study the practices related to green supply chain management that influence the results of the company as an organizational performance. Based on our previous works, from one part we have collected these GSCM practices (planning, operational, and communication practices) and classified them through conducting some literature reviews to analyze their effects on the OP’s factors (balanced scorecard’s perspectives). To do so we design a case study methodology through semi-structured interviews and secondary data from some multinational well-known companies based in Spain. The cases have been selected with the criterion of trying to collect members of the entire supply chain to have a vision as global as possible. The results report the considerable influence of green supply chain management practices on the organizational performance of the companies of the study. In addition, they represent that the implementation of green supply chain management practices especially in a long-term perspective can be economically justified. From the point of view of the personal, they feel better about being a member of this type of company that has been structured on environmental issues. Also, for these companies, the image that has been created by the implementation of these practices helps them to facilitate their marketing program.

Keywords: green supply chain management, organizational performance, case study, Spain

Procedia PDF Downloads 170

Authors: Juliza Hidayati, Sawarni Hasibuan

Abstract:

PT. XYZ is a manufacturing company that produces Crude Palm Oil (CPO). The fierce competition in the global markets not only between companies but also a competition between supply chains. This research aims to analyze the supply chain and value chain of Crude Palm Oil (CPO) in the company. Data analysis method used is qualitative analysis and quantitative analysis. The qualitative analysis describes supply chain and value chain, while the quantitative analysis is used to find out value added and the establishment of the value chain. Based on the analysis, the value chain of crude palm oil (CPO) in the company consists of four main actors that are suppliers of raw materials, processing, distributor, and customer. The value chain analysis consists of two actors; those are palm oil plantation and palm oil processing plant. The palm oil plantation activities include nurseries, planting, plant maintenance, harvesting, and shipping. The palm oil processing plant activities include reception, sterilizing, thressing, pressing, and oil classification. The value added of palm oil plantations was 72.42% and the palm oil processing plant was 10.13%.

Keywords: palm oil, value chain, value added, supply chain

Procedia PDF Downloads 339

Authors: Unal Atakan Kahraman, Yilmaz Uyaroğlu

Abstract:

The chaotic signals generated by chaotic systems have some properties such as randomness, complexity and sensitive dependence on initial conditions, which make them particularly suitable for secure communications. Since the 1990s, the problem of secure communication, based on chaos synchronization, has been thoroughly investigated and many methods, for instance, robust and adaptive control approaches, have been proposed to realize the chaos synchronization. In this paper, an improved secure communication model is proposed based on control of supply chain management system. Control and masking communication simulation results are used to visualize the effectiveness of chaotic supply chain system also performed on the application of secure communication to the chaotic system. So, we discover the secure phenomenon of chaos-amplification in supply chain system

Keywords: chaotic analyze, control, secure communication, supply chain attractor

Procedia PDF Downloads 489

Authors: Kavish Kejriwal, Richa Grover

Abstract:

Consumer awareness and pending legislation have pushed environmental issues into the spotlight, making it imperative for organizations to have a plan of action for “going green.” This is the reason why Green Supply Chain Management has become the integral part of many organization with a goal to reduce cost, increase efficiency and be environmental friendly. Implementation of GSCM involves many factors which act as barriers, making it a tedious task. These barriers have different relationship among themselves creating different impact on implementation Green Supply Chain Management. This work focuses on determining those barriers which have essentially to be removed in the initial stages of GSCM adoption. In this work, the author has taken the case of a petroleum industry in order to come up with a solution. A DEMATEL approach is used to reach the solution.

Keywords: barriers, environment, green supply chain management, impact, interpretive structural modeling

Procedia PDF Downloads 252

Authors: M. Bevilacqua, F. E. Ciarapica, G. Marcucci

Abstract:

Supply Chain Resilience has been broadly studied during the last decade, focusing the research on many aspects of Supply Chain performance. Consequently, different definitions of Supply Chain Resilience have been developed by the research community, drawing inspiration also from other fields of study such as ecology, sociology, psychology, economy et al. This way, the definitions so far developed in the extant literature are therefore very heterogeneous, and many authors have pointed out a lack of consensus in this field of analysis. The aim of this research is to find common points between these definitions, through the development of a framework of study: the Resilience Triangle. The Resilience Triangle is a tool developed in the field of civil engineering, with the objective of modeling the loss of resilience of a given structure during and after the occurrence of a disruption such as an earthquake. The Resilience Triangle is a simple yet powerful tool: in our opinion, it can summarize all the features that authors have captured in the Supply Chain Resilience definitions over the years. This research intends to recapitulate within this framework all these heterogeneities in Supply Chain Resilience research. After collecting a various number of Supply Chain Resilience definitions present in the extant literature, the methodology approach provides a taxonomy step with the scope of collecting and analyzing all the data gathered. The next step provides the comparison of the data obtained with the plotting of a disruption profile, in order to contextualize the Resilience Triangle in the Supply Chain context. The tool and the results developed in this research will allow to lay the foundation for future Supply Chain Resilience modeling and measurement work.

Keywords: supply chain resilience, resilience definition, supply chain resilience triangle

Procedia PDF Downloads 296

Authors: Bassam Istanbouli

Abstract:

Organizations are living in a very competitive and dynamic environment which is constantly changing. In order to achieve a high level of service, the products and processes of these organizations need to be flexible and evolvable. If the supply chains are not modular and well designed, changes can bring combinatorial effects to most areas of a company from its management, financial, documentation, logistics and its information structure. Applying the normalized system’s concept to segments of the supply chain may help in reducing those ripple effects, but it may also increase lead times. Lead times are important and can become a decisive element in gaining customers. Industries are always under the pressure in providing good quality products, at competitive prices, when and how the customer wants them. Most of the time, the customers want their orders now, if not yesterday. The above concept will be proven by examining lead times in a manufacturing example before and after applying normalized systems concept to that segment of the chain. We will then show that although we can minimize the combinatorial effects when changes occur, the lead times will be increased.

Keywords: supply chain, lead time, normalization, modular

Procedia PDF Downloads 101

Authors: Chieh Lee

Abstract:

Today, supply chain managers face extensive disruptions in raw material pricing, transportation block, and quality issue due to product complexity. While digitalization might help managers to mitigate the disruption risk and increase supply chain resilience by sharing information between sellers and buyers through the supply chain, entities are reluctant to build such a system. The main reason is it is not clear what information should be shared and who has access to the stored information. In this research, we propose a smart contract built by blockchain technology. This contract helps both buyer and seller to identify the type of information, the access to the information, and how to trace the information. This contract helps managers control their orders through the supply chain and address any disruption they see fit. Furthermore, with the same smart contract, the supplier can track the production process of an order and increase production efficiency by eliminating waste.

Keywords: blockchain, production process, smart contract, supply chain resilience

Procedia PDF Downloads 55

Authors: Ali Hajiesmaeili, Mehdi Rahimi, Ehsan Jaberi, Amir Abbas Hosseini

Abstract:

The purpose of this study is investigating the influences of logistics performance on organizational performance including both marketing & financial aspects, and showing the financial impacts of selecting the right marketing and logistics priorities in line with their supply chain type, and also giving the practitioners an advance identification of their priorities and participation types of supply chain, and the best combination of their strategies and resources in this regard. We made use of the original model’s questionnaire to gather all expert’s data and also SPSS and AMOS Ver.22 to analyze the gathered data. CFA method was also used to test whether a relationship between observed variables and their underlying latent constructs exists. Supply chain strategy implementation leads to logistics performance improvement, and marketing performance will be affected as well. Logistics service providers should focus on enhancement of supply chain performance, since logistics performance has been considered as a basis of evaluation of supply chain management strategy. Consequently, performance of the organization will be enhanced. This case is the first research made in Iran that analyzes the relationship between Logistics & Organizational performance in Home Appliances and Home Entertainment companies.

Keywords: logistics, organizational, performance, supply chain, strategy

Procedia PDF Downloads 619

Authors: Neha Asthana, Vishal Krishna Prasad

Abstract:

Reverse logistics and green supply chain form an interconnected and interwoven network of parameters that contribute to enhancement and incremental exchange in the triple bottom line in the consistently changing and fragmenting markets of the globalizing markets of today. Reverse logistics not only contributes to completing the supply chain in a comprehensive and synchronized manner but also contributes to a significant degree in optimizing green supply chains through procedures such as recycling, refurbishing etc. contributing to waste reduction. Carbon trading, owing to its limitations in the global context and being in a nascent stage seeks plethora of research to determine its full application in synergy with reverse logistics and green supply chain.

Keywords: reverse logistics, carbon trading, carbon emissions, green supply chain

Procedia PDF Downloads 392

Authors: Emilia Segun-Ajao

Abstract:

The strategy of relocation aimed at strengthening supply chain resilience in the United States is examined, taking into account recent global disturbances and vulnerabilities in offshore manufacturing. It explains the procurement challenges faced by enterprises and offers solutions to mitigate risks and improve resilience. Through the analysis of innovative approaches, including technological advances, policy considerations, and strategic frameworks, this study provides insights to decision-makers about the complexity of supply chain management. Reshoring has gained attention as a strategy to improve supply chain resilience in the face of global disruptions. This analysis focuses on the importance of relocating as a multifaceted approach to strengthening supply chains, advocating economic benefits, technological advances, and policy frameworks to create a more robust supply landscape in the United States.

Keywords: collaborative partnerships, supply chain resilience, procurement challenges, technology adoption

Procedia PDF Downloads 21

Authors: Kamran Rashid, Tashfeen M. Azhar, Asad-ur-Rahman Wahla

Abstract:

Current research aims to understand the role of successful buyer-supplier relationship in achieving supply chain competitiveness in a developing country perspective. Five hypotheses are developed to test structural model. Survey data is collected from the manufacturing sector of Pakistan. Analysis is conducted using Partial Least Squares (PLS) Structural Equation Modeling (SEM) through Smart PLS version 2.0 M3. Results demonstrate positive impact of effective supplier selection, buyer-supplier engagement, and information sharing capability on success of buyer supplier relationship. This successful buyer supplier relationship drives the supply chain firm financial and market performance. Additional analyses with large sample sizes are required in other developing countries to cross validate the results. Current study provides empirical evidence of the role of successful buyer supplier relationship in achieving supply chain competitiveness.

Keywords: supply chain management, successful buyer-supplier relationship, supply chain competitiveness, developing country

Procedia PDF Downloads 628

Authors: Jacky Hau

Abstract:

The prevalence of emerging technologies disrupts various industries as well as consumer behavior. Data collection has been in the fingertip and inherited through enabled Internet-of-things (IOT) devices. Big data analytics (BDA) becomes possible and allows real-time demand network management (DNM) through leagile supply chain. To enhance further on its resilience and predictability, governance is going to be examined to promote supply chain transparency and trust in an efficient manner. Leagility combines lean thinking and agile techniques in supply chain management. It aims at reducing costs and waste, as well as maintaining responsiveness to any volatile consumer demand by means of adjusting the decoupling point where the product flow changes from push to pull. Leagility would only be successful when collaborative planning, forecasting, and replenishment (CPFR) process or alike is in place throughout the supply chain business entities. Governance and procurement of the supply chain, however, is crucial and challenging for the execution of CPFR as every entity has to walk-the-talk generously for the sake of overall benefits of supply chain performance, not to mention the complexity of exercising the polices at both of within across various supply chain business entities on account of organizational behavior and mutual trust. Empirical survey results showed that the effective timespan on demand forecasting had been drastically shortening in the magnitude of months to weeks planning horizon, thus agility shall come first and preferably following by lean approach in a timely manner.

Keywords: governance, leagility, procure-to-pay, source-to-contract

Procedia PDF Downloads 90

Authors: Hiroaki Nasu, Ryota Miyamoto, Yuta Kodera, Yasuyuki Nogami

Abstract:

To promote Industry 4.0 and Society 5.0 and so on, it is important to connect and share data so that every member can trust it. Blockchain (BC) technology is currently attracting attention as the most advanced tool and has been used in the financial field and so on. However, the data collaboration using BC has not progressed sufficiently among companies on the supply chain of manufacturing industry that handle sensitive data such as product quality, manufacturing conditions, etc. There are two main reasons why data utilization is not sufficiently advanced in the industrial supply chain. The first reason is that manufacturing information is top secret and a source for companies to generate profits. It is difficult to disclose data even between companies with transactions in the supply chain. In the blockchain mechanism such as Bitcoin using PKI (Public Key Infrastructure), in order to confirm the identity of the company that has sent the data, the plaintext must be shared between the companies. Another reason is that the merits (scenarios) of collaboration data between companies are not specifically specified in the industrial supply chain. For these problems this paper proposes a Business to Business (B2B) collaboration system using homomorphic encryption and BC technique. Using the proposed system, each company on the supply chain can exchange confidential information on encrypted data and utilize the data for their own business. In addition, this paper considers a scenario focusing on quality data, which was difficult to collaborate because it is a top secret. In this scenario, we show a implementation scheme and a benefit of concrete data collaboration by proposing a comparison protocol that can grasp the change in quality while hiding the numerical value of quality data.

Keywords: business to business data collaboration, industrial supply chain, blockchain, homomorphic encryption

Procedia PDF Downloads 107

Authors: Nicolás Clavijo Buriticá, Laura Viviana Triana Sanchez

Abstract:

This research develops a productive context associated with the aquaculture industry in northern Tolima-Colombia, specifically in the town of Lerida. Strategic aspects of chain of fish Production-Distribution, especially those related to supply network design of an association devoted to cultivating, farming, processing and marketing of fish are addressed. This research is addressed from a special approach of Supply Chain Management (SCM) which guides management objectives to the system sustainability; this approach is called Sustainable Supply Chain Management (SSCM). The network design of fish production-distribution system is obtained for the case study by two mathematical programming models that aims to maximize the economic benefits of the chain and minimize total supply chain costs, taking into account restrictions to protect the environment and its implications on system productivity. The results of the mathematical models validated in the productive situation of the partnership under study, called Asopiscinorte shows the variation in the number of open or closed locations in the supply network that determines the final network configuration. This proposed result generates for the case study an increase of 31.5% in the partial productivity of storage and processing, in addition to possible favorable long-term implications, such as attending an agile or not a consumer area, increase or not the level of sales in several areas, to meet in quantity, time and cost of work in progress and finished goods to various actors in the chain.

Keywords: Sustainable Supply Chain, mathematical programming, aquaculture industry, Supply Chain Design, Supply Chain Configuration

Procedia PDF Downloads 521

Authors: Golnar Behzadi, Michael O'Sullivan, Tava Olsen, Abraham Zhang

Abstract:

By definition, increasing supply chain resilience improves the supply chain’s ability to return to normal, or to an even more desirable situation, quickly and efficiently after being hit by a disruption. This is especially critical in agribusiness supply chains where the products are perishable and have a short life-cycle. In this paper, we propose a resilience metric to capture and improve the recovery process in terms of both performance and time, of an agribusiness supply chain following either supply or demand-side disruption. We build a model that determines optimal supply chain recovery planning decisions and selects the best resilient strategies that minimize the loss of profit during the recovery time window. The model is formulated as a two-stage stochastic mixed-integer linear programming problem and solved with a branch-and-cut algorithm. The results show that the optimal recovery schedule is highly dependent on the duration of the time-window allowed for recovery. In addition, the profit loss during recovery is reduced by utilizing the proposed resilient actions.

Keywords: agribusiness supply chain, recovery, resilience metric, risk management

Procedia PDF Downloads 367

Authors: Cyrillus Prabandana

Abstract:

Supply chain optimisation requires multiple factors as consideration or constraints. These factors are including but not limited to demand forecasting, raw material fulfilment, production capacity, inventory level, facilities locations, transportation means, and manpower availability. By knowing all manageable factors involved and assuming the uncertainty with pre-defined percentage factors, an integrated supply chain model could be developed to manage various business scenarios. This paper analyse the utilisation of geographical point of view to develop an integrated supply chain network model to optimise the distribution of finished product appropriately according to forecasted demand and available supply. The supply chain optimisation model shows that small change in one supply chain constraint is possible to largely impact other constraints, and the new information from the model should be able to support the decision making process. The model was focused on three areas, i.e. raw material fulfilment, production capacity and finished products transportation. To validate the model suitability, it was implemented in a project aimed to optimise the concrete supply chain in a mining location. The high level of operations complexity and involvement of multiple stakeholders in the concrete supply chain is believed to be sufficient to give the illustration of the larger scope. The implementation of this geographical supply chain network modeling resulted an optimised concrete supply chain from raw material fulfilment until finished products distribution to each customer, which indicated by lower percentage of missed concrete order fulfilment to customer.

Keywords: decision making, geographical supply chain modeling, supply chain optimisation, supply chain

Procedia PDF Downloads 327

Authors: Sahani Rathnasiri, Pritee Ray, Sardar M. N. Isalm, Carlos A. Vega-Mejia

Abstract:

This study develops a cooperative game theory-based cost-sharing contract model for a business to consumer (B2C) e-commerce supply chain to minimize the overall supply chain costs and the individual costs within an information asymmetry scenario. The objective of this study is to address the issues of strategic interactions among the key players of the e-commerce supply chain operation, which impedes the optimal operational outcomes. Game theory has been included in the field of supply chain management to resolve strategic decision-making issues; however, most of the studies are limited only to two-echelons of the supply chains. Multi-echelon supply chain optimizations based on game-theoretic models are less explored in the previous literature. This study adopts a cooperative game model to focus on the common payoff of operations and addresses the issues of information asymmetry and coordination of a three-echelon e-commerce supply chain. The cost-sharing contract model integrates operational features such as production, inventory management and distribution with the contract related constraints. The outcomes of the model highlight the importance of maintaining lower operational costs by all players to obtain benefits from the cost-sharing contract. Further, the cost-sharing contract ensures true cost revelation, and hence eliminates the information asymmetry issues among the players. Comparing the results of the contract model with the de-centralized e-commerce supply chain operation further emphasizes that the cost-sharing contract derives Pareto-improved outcomes and minimizes the costs of overall e-commerce supply chain operation.

Keywords: cooperative game theory, cost-sharing contract, e-commerce supply chain, information asymmetry

Procedia PDF Downloads 98

Authors: Akm Shahidullah

Abstract:

This paper assessed the medicinal plants production and related entrepreneurial and management aspects with a focus to understand the present medicinal plants-based supply chain of Bangladesh. It delineated the overall supply chain and the extent of benefit that the plant-producingagrientrepreneursderive out of the existing system of the chain. The key objective was to put forward innovative supply chain strategiesthatcan leverage the benefit of the rural farmer-entrepreneur of medicinal plants. A field-based investigation was carried out in the Natore district of northwest Bangladesh, where a total of 225 farmers and households from eight villages were engaged in the production of medicinal plant species. The research had a survey with the agrientrepreneurs of two of those villages and focus group discussions at a union level to gather information about the price, buyers, seasonality, and overall supply infrastructure and trading mechanisms of the plant products. The research also gathered explanations on the overall supply chain system of the plants and plant-based processed products through key informant interviews with the local and regional selling agents, stockists, wholesalers, and secondary processors. The findings revealed that, in the existing supply chain system, the primary and wholesale secondary markets were mostly dominated by middlemen who cause market distortions and inflated prices due to a lack of coordination between the primary producers and secondary processors. The discoordination and inefficiencies in the supply chain system could be offset by the producer-processor relationship integration that could result in a multitude of benefits to both the parties in terms of price, quality, lead time, and overall control of the supply chain. Therefore, to ensure the growth of medicinal plants production, the industry users, secondary processors, and policy stakeholders should ensure that the primary producers get the fair share of the benefit; the producer-processor relationship integration in the supply chain offers to ensure that fairness with maximum producer surplus.

Keywords: medicinal-plants, agrientrepreneur, supply chain, relationship integration, Bangladesh

Procedia PDF Downloads 70

Authors: Nitin Singh, Meng Ling, Talha Ahmed, Tianxia Zhao, Reinier van de Pol

Abstract:

We propose the use of reinforcement learning (RL) as a viable alternative for optimizing supply chain management, particularly in scenarios with stochasticity in product demands. RL’s adaptability to changing conditions and its demonstrated success in diverse fields of sequential decision-making makes it a promising candidate for addressing supply chain problems. We investigate the impact of demand fluctuations in a multi-product supply chain system and develop RL agents with learned generalizable policies. We provide experimentation details for training RL agents and statistical analysis of the results. We study the generalization ability of RL agents for different demand uncertainty scenarios and observe superior performance compared to the agents trained with fixed demand curves. The proposed methodology has the potential to lead to cost reduction and increased profit for companies dealing with frequent inventory movement between supply and demand nodes.

Keywords: inventory management, reinforcement learning, supply chain optimization, uncertainty

Procedia PDF Downloads 82

Authors: Sema Kayapinar, Ismail Karaoglan, Turan Paksoy, Hadi Gokcen

Abstract:

Green Supply Chain Management is gaining growing interest among researchers and supply chain management. The concept of Green Supply Chain Management is to integrate environmental thinking into the Supply Chain Management. It is the systematic concept emphasis on environmental problems such as reduction of greenhouse gas emissions, energy efficiency, recycling end of life products, generation of solid and hazardous waste. This study is to present a green supply chain network model integrated Internet of Things applications. Internet of Things provides to get precise and accurate information of end-of-life product with sensors and systems devices. The forward direction consists of suppliers, plants, distributions centres and sales and collect centres while, the reverse flow includes the sales and collects centres, disassembled centre, recycling and disposal centre. The sales and collection centre sells the new products are transhipped from factory via distribution centre and also receive the end-of life product according their value level. We describe green logistics activities by presenting specific examples including “recycling of the returned products and “reduction of CO2 gas emissions”. The different transportation choices are illustrated between echelons according to their CO2 gas emissions. This problem is formulated as a mixed integer linear programming model to solve the green supply chain problems which are emerged from the environmental awareness and responsibilities. This model is solved by using Gams package program. Numerical examples are suggested to illustrate the efficiency of the proposed model.

Keywords: green supply chain optimization, internet of things, greenhouse gas emission, recycling

Procedia PDF Downloads 302

Authors: Andrey Vinajera-Zamora, Norge Coello-Machado, Elke Glistau

Abstract:

The objective of this research is calculate the added value in operations of electric power meters (EPM) supply chains, specifically the EPM of 220v. The tool used is composed by six steps allowing at same time the identification of calibration of EPM as the bottleneck operation according the net added value being at same time the process of higher added value. On the other hand, this methodology allows calculate the amount of money to buy the raw material. The main conclusions are related to the analyze ‘s way and calculating of added value in supply chain integrated by the echelons procurement, production and distribution or any of these.

Keywords: economic value added, supply chain management, value chain, bottleneck detection

Procedia PDF Downloads 273

Authors: Hung Nguyen, Norma Harrison

Abstract:

This paper examines the role supply chain dependence as contingency factors which affect the effectiveness of different critical factors (in terms trust, information exchange and shared culture) in delivering supply chain satisfaction and financial performance. Using the data of 468 manufacturing firms in the Global Manufacturing Research Group, this study shows that supply chain dependence strengthens the positive relationship between shared culture & vision and supply chain satisfaction while dampens the relationship between trust and satisfaction. The study also demonstrates the direct positive effect of satisfaction on financial performance. Supply chain managers were advised to emphasize on the alignments of common understanding, codes, languages, common shared vision and similar cultures.

Keywords: information exchange, shared culture, satisfaction, supply chain dependence

Procedia PDF Downloads 357

Authors: Abdikarim Barqadle Igale

Abstract:

The main objective of this study is to find out the indicators of excellent supply chain management based on game theory. The study employed a survey design to collect data. A total of 268 respondents participated in this research. The results indicate that both companies (Coca-cola & Yousran International) managed to effectively use the physical and information flows but were different from the focus on the items in the two key areas. The Coca-cola, for instance, sustained to utilize the flows of excellent planning, starting from row materials, timing, transformation, transportation, and storage of goods to reach consumer’s hands on one side and solid linkage to strategic partners to plan and work together for long-term control of better day-to-day supply chains of goods and materials down to customers’ consumption on the other. Meanwhile, the Yousran International heavily concentrated on the physical side with moderate rapports with strategic partners for long-term improvement on supply chain. The study proposes that strong combination of effective use of both physical and information flows are good indicators of better supply chain management in today’s emerging companies.

Keywords: game theory, physical flow, supply chain management, indicators

Procedia PDF Downloads 265

Authors: Ibrahim Cil, Onur Kurtcu, H. Ibrahim Demir, Furkan Yener, Yusuf. S. Turkan, Muharrem Unver, Ramazan Evren

Abstract:

Fuzzy AHP (Analytic Hierarchy Process) method is decision-making way at the end of integrating the current AHP method with fuzzy structure. In this study, the processes of production planning, inventory management and purchasing department of a system were analysed and were requested to decide the performance criteria of each area. At this point, the current work processes were analysed by various decision-makers and comparing each criteria by giving points according to 1-9 scale were completed. The criteria were listed in order to their weights by using Fuzzy AHP approach and top three performance criteria of each department were determined. After that, the performance criteria of supply chain consisting of three departments were asked to determine. The processes of each department were compared by decision-makers at the point of building the supply chain performance system and getting the performance criteria. According to the results, the criteria of performance system of supply chain by using Fuzzy AHP were determined for which will be used in the supply chain performance system in the future.

Keywords: AHP, fuzzy, performance evaluation, supply chain

Procedia PDF Downloads 308

Authors: Qingyu Zhang, Helin Ma, Lili Weng, Mei Cao

Abstract:

Green supply chain management has been an important organizational strategy to reduce environmental risks and improve financial performance. Firms have to adopt green supply chain practices to meet the official regulations and reduce peer pressure in China. This paper exhibits an empirical study of the drivers of green supply chain management practices and the environmental and economic performance of green supply chain management implementation in Chinese firms. While China is the fastest-growing emerging economy, it has paid a high ecological price. It is reported that China hosts 7 of the world’s 10 most polluted cities. The continued environmental deterioration and the resultant heightened regulatory control and public scrutiny have posed new operating challenges to firms conducting business in China. These challenges make the country an ideal setting to conduct the present study. A research questionnaire was developed to gather data in China. The questionnaire targeted managers and employees in Chinese companies. The data were collected in the last quarter of 2015, involving industries such as electronic & communicational equipment, textile & clothing, pharmaceutical & healthcare, and so on. This study confirms and validates that (1) both internal and external drivers play a significant role in the implementation of green supply chain management practices; (2) green purchase and investment recovery have a significant impact on firms’ environmental and economic performance; (3) with the improvement of the firms’ environmental performance, their economic performance will improve.

Keywords: economic performance, environmental performance, external driver, green supply chain management

Procedia PDF Downloads 351

Authors: Hamidreza Fallah Lajimi , Elham Karami, Fatemeh Ali nasab, Mostafa Mahdavikia

Abstract:

Being responsive is an increasingly important skill for firms in today’s global economy; thus firms must be agile. Naturally, it follows that an organization’s agility depends on its supply chain being agile. However, achieving supply chain agility is a function of other abilities within the organization. This paper analyses results from a survey of 71 Iran manufacturing companies in order to identify some of the factors for agile organizations in managing their supply chains. Then we classification this company in four cluster with fuzzy c-mean technique and with four validations functional determine automatically the optimal number of clusters.

Keywords: agile supply chain, clustering, fuzzy clustering

Procedia PDF Downloads 427