Search results for: resilient supply chain strategy
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 7232

Search results for: resilient supply chain strategy

7142 Value Analysis Dashboard in Supply Chain Management, Real Case Study from Iran

Authors: Seyedehfatemeh Golrizgashti, Seyedali Dalil

Abstract:

The goal of this paper is proposing a supply chain value dashboard in home appliance manufacturing firms to create more value for all stakeholders via balanced scorecard approach. Balanced scorecard is an effective approach that managers have used to evaluate supply chain performance in many fields but there is a lack of enough attention to all supply chain stakeholders, improving value creation and, defining correlation between value indicators and performance measuring quantitatively. In this research the key stakeholders in home appliance supply chain, value indicators with respect to create more value for stakeholders and the most important metrics to evaluate supply chain value performance based on balanced scorecard approach have been selected via literature review. The most important indicators based on expert’s judgment acquired by in survey focused on creating more value for. Structural equation modelling has been used to disclose relations between value indicators and balanced scorecard metrics. The important result of this research is identifying effective value dashboard to create more value for all stakeholders in the supply chain via balanced scorecard approach and based on an empirical study covering ten home appliance manufacturing firms in Iran. Home appliance manufacturing firms can increase their stakeholder's satisfaction by using this value dashboard.

Keywords: supply chain management, balanced scorecard, value, structural modeling, stakeholders

Procedia PDF Downloads 316
7141 Analysis of Performance Improvement Factors in Supply Chain Manufacturing Using Analytic Network Process and Kaizen

Authors: Juliza Hidayati, Yesie M. Sinuhaji, Sawarni Hasibuan

Abstract:

A company producing drinking water through many incompatibility issues that affect supply chain performance. The study was conducted to determine the factors that affect the performance of the supply chain and improve it. To obtain the dominant factors affecting the performance of the supply chain used Analytic Network Process, while to improve performance is done by using Kaizen. Factors affecting the performance of the supply chain to be a reference to identify the cause of the non-conformance. Results weighting using ANP indicates that the dominant factor affecting the level of performance is the precision of the number of shipments (15%), the ability of the fulfillment of the booking amount (12%), and the number of rejected products when signing (12%). Incompatibility of the factors that affect the performance of the supply chain are identified, so that found the root cause of the problem is most dominant. Based on the weight of Risk Priority Number (RPN) gained the most dominant root cause of the problem, namely the poorly maintained engine, the engine worked for three shifts, machine parts that are not contained in the plant. Improvements then performed using the Kaizen method of systematic and sustainable.

Keywords: analytic network process, booking amount, risk priority number, supply chain performance

Procedia PDF Downloads 267
7140 Simulation Model for Optimizing Energy in Supply Chain Management

Authors: Nazli Akhlaghinia, Ali Rajabzadeh Ghatari

Abstract:

In today's world, with increasing environmental awareness, firms are facing severe pressure from various stakeholders, including the government and customers, to reduce their harmful effects on the environment. Over the past few decades, the increasing effects of global warming, climate change, waste, and air pollution have increased the global attention of experts to the issue of the green supply chain and led them to the optimal solution for greenery. Green supply chain management (GSCM) plays an important role in motivating the sustainability of the organization. With increasing environmental concerns, the main objective of the research is to use system thinking methodology and Vensim software for designing a dynamic system model for green supply chain and observing behaviors. Using this methodology, we look for the effects of a green supply chain structure on the behavioral dynamics of output variables. We try to simulate the complexity of GSCM in a period of 30 months and observe the complexity of behaviors of variables including sustainability, providing green products, and reducing energy consumption, and consequently reducing sample pollution.

Keywords: supply chain management, green supply chain management, system dynamics, energy consumption

Procedia PDF Downloads 108
7139 The Supply Chain Management and Supply Chain Responsiveness in the Competitiveness of the Agrofood Sector: An Econometric Analysis

Authors: Alma Lucero Ortiz, Mario Gómez

Abstract:

The purpose of this article is to conduct a theoretical and empirical study in order to analyze how the Supply Chain Management (SCM) and Supply Chain Responsiveness (SCR) affects the competitive advantage of the agrofood sector in 2017, in particular, the exporting companies of berries in Mexico. This work is presented in two parts, as a first part is developed a theoretical analysis of the main studies to measure the variables subject to the study. Subsequently an empirical study is carried out through field work and to process the data a logical econometric model is performed to be able to evaluate the effect of the SCM and SCR on the competitive advantage in the companies exporting berries. The results suggest that the SCM has a positive effect on the competitive advantage of the companies under study, so it is necessary to implement greater practices oriented towards a suitable SCM for the companies to achieve a competitive performance. In the case of SCR, it was found that this variable does not have effect on competitive advantage.

Keywords: competitive advantage, econometric model, supply chain management, supply chain responsiveness, sustained competitive advantage

Procedia PDF Downloads 215
7138 The Competitive Power of Supply Chain Quality Management in Manufacturing Companies in Cameroon

Authors: Nicodemus Tiendem, Arrey Mbayong Napoleon

Abstract:

The heightening of competition and the quest for market share has left business persons and research communities re-examining and reinventing their competitive practices. A case in point is Porter’s generic strategy which has received a lot of criticism lately regarding its inability to maintain a company’s competitive power. This is because it focuses more on the organisation and ignores her external partners, who have a strong bearing on the company’s performance. This paper, therefore, sought to examine Porter’s generic strategies alongside supply chain quality management practices in terms of their effectiveness in building the competitive power of manufacturing companies in Cameroon. This was done with the use of primary data captured from a survey study across the supply chains of 20 manufacturing companies in Cameroon using a five-point Likert scale questionnaire. For each company, four 1st tier suppliers and four 1st tier distributors were carefully chosen to participate in the study alongside the companies themselves. In each case, attention was directed to persons involved in the supply chains of the companies. This gave a total of 180 entities comprising the supply chains of the 20 manufacturing companies involved in the study, making a total of 900 participants. The data was analysed using three multiple regression models to assess the effect of Porter’s generic strategy and supply chain quality management on the marketing performance of the companies. The findings proved that in such a competitive atmosphere, supply chain quality management is a better tool for marketing performance over Porter’s generic strategies and hence building the competitive power of the companies at all levels of the study. Although the study made use of convenience sampling, where sample selectivity biases the results, the findings aligned with many other recent developments in line with building the competitive power of manufacturing companies and thereby made the findings suitable for generalisation.

Keywords: supply chain quality management, Porter’s generic strategies, competitive power, marketing performance, manufacturing companies, Cameroon

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7137 Critical Success Factors for Implementation of E-Supply Chain Management

Authors: Mehrnoosh Askarizadeh

Abstract:

Globalization of the economy, e-business, and introduction of new technologies pose new challenges to all organizations. In recent decades, globalization, outsourcing, and information technology have enabled many organizations to successfully operate collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities For this industries supply network can be acknowledged as a new form of organization. We will study about critical success factors (CSFs) for implementation of SCM in companies. It is shown that in different circumstances e- supply chain management has a higher impact on performance.

Keywords: supply chain management, logistics management, critical success factors, information technology, top management support, human resource

Procedia PDF Downloads 376
7136 The Fusion of Blockchain and AI in Supply Chain Finance: Scalability in Distributed Systems

Authors: Wu You, Burra Venkata Durga Kumar

Abstract:

This study examines the promising potential of integrating Blockchain and Artificial Intelligence (AI) technologies to scalability in Distributed Systems within the field of supply chain finance. The finance industry is continually confronted with scalability challenges in its Distributed Systems, particularly within the supply chain finance sector, impacting efficiency and security. Blockchain, with its inherent attributes of high scalability and secure distributed ledger system, coupled with AI's strengths in optimizing data processing and decision-making, holds the key to innovating the industry's approach to these issues. This study elucidates the synergistic interplay between Blockchain and AI, detailing how their fusion can drive a significant transformation in the supply chain finance sector's Distributed Systems. It offers specific use-cases within this field to illustrate the practical implications and potential benefits of this technological convergence. The study also discusses future possibilities and current challenges in implementing this groundbreaking approach within the context of supply chain finance. It concludes that the intersection of Blockchain and AI could ignite a new epoch of enhanced efficiency, security, and transparency in the Distributed Systems of supply chain finance within the financial industry.

Keywords: blockchain, artificial intelligence (AI), scaled distributed systems, supply chain finance, efficiency and security

Procedia PDF Downloads 52
7135 Fuzzy Analytic Hierarchy Process for Determination of Supply Chain Performance Evaluation Criteria

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

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7134 Impact of Long-Term Orientation on Product Quality in Supply Chain: An Empirical Analysis

Authors: Qingyu Zhang, Mei Cao

Abstract:

As the environments become increasingly uncertain, firms have attempted to achieve greater supply chain collaboration. Supply chain collaboration can generate significant benefits to its members, e.g., reducing risks and decreasing transaction costs. However, a strong relationship is often related to firm’s culture (e.g., short-term vs. long-term interests). The objective of the study is to explore the effect of long-term oriented culture on product quality in a supply chain. Data was collected through a Web survey of U.S. manufacturing firms. Structural equation modeling (LISREL) was used to analyze the data. The results support the mediating roles of goal congruence and communication in the relationship between long-term orientation and product quality in the supply chain. Goal congruence partially mediates the relationship between long-term orientation and communication; communication completely mediates the relationship between goal congruence and product quality. Without high levels of communication, goal congruence cannot improve product quality in a positive way.

Keywords: communication, long-term orientation, product quality, supply chain

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7133 Drivers for Relationship Building in the Supply Chain: The Case of Luxury Food

Authors: Kateryna Merkulova, Alessio Castello, Maria Kreuzer

Abstract:

This research investigates the drivers of long-term relationship building between customers and suppliers within the luxury food supply chain, a topic that remains largely unexplored in the current state of academic literature. This paper identifies for the first time the key elements that influence the formation and maintenance of effective supply chain relationships, which are crucial for navigating the complexities of the luxury food industry. In particular, it explores the critical role of trust in a business-to-business context, specifically emphasizing its significance in the luxury food supply chain. Empirically, this research is contextualized in the region of the French Riviera, which offers a gastronomic playground for food enthusiasts, making it ideally suited to explore the luxury food sector. Qualitative in-depth interviews with stakeholders along the luxury supply chain (i.e., suppliers, chefs, restaurant owners, and fine food shop managers) allow identifying key drivers of trustful business relationships. Triangulating different perspectives of stakeholders within the luxury supply chain adds validity and robustness to the findings. The findings have important theoretical and managerial implications for the effective functioning of long-term supplier-buyer relationships.

Keywords: luxury food, relationship building, B2B, supply chain, trust

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7132 Supply Chain Management Practices in Thailand Palm Oil Industry

Authors: Athirat Intajorn

Abstract:

According to the ASEAN free trade areas (AFTA), Thailand has applied the AFTA agreement for reducing tariffs and reflecting changes in business processes. The reflection of changes in agribusiness processes, in particular, has accumulated as production costs for producers. Palm Oil industry has become an important industry to Thailand economic. Thailand currently ranks the 3rd in the world for Crude Palm Oil CPO. Therefore, the scope of this paper presents a research framework to investigate the supply chain management practices in Thailand palm oil industry. This research is limit to literature review. And the proposed framework identifies the criteria of supply chain management for Thailand palm oil industry in order for linkage among entities within logistics management involving plantation, mill, collection port, refinery and cookie from the data utilization. The Supply Chain Management Practices in Thailand Palm Oil Industry framework has a somewhat different view due to the high complexity of agribusiness logistics management.

Keywords: supply chain management, practice, palm oil industry, Thailand palm oil industry

Procedia PDF Downloads 277
7131 Substation Automation, Digitization, Cyber Risk and Chain Risk Management Reliability

Authors: Serzhan Ashirov, Dana Nour, Rafat Rob, Khaled Alotaibi

Abstract:

There has been a fast growth in the introduction and use of communications, information, monitoring, and sensing technologies. The new technologies are making their way to the Industrial Control Systems as embedded in products, software applications, IT services, or commissioned to enable integration and automation of increasingly global supply chains. As a result, the lines that separated the physical, digital, and cyber world have diminished due to the vast implementation of the new, disruptive digital technologies. The variety and increased use of these technologies introduce many cybersecurity risks affecting cyber-resilience of the supply chain, both in terms of the product or service delivered to a customer and members of the supply chain operation. US department of energy considers supply chain in the IR4 space to be the weakest link in cybersecurity. The IR4 identified the digitization of the field devices, followed by digitalization that eventually moved through the digital transformation space with little care for the new introduced cybersecurity risks. This paper will examine the best methodologies for securing the electrical substations from cybersecurity attacks due to supply chain risks, and due to digitization effort. SCADA systems are the most vulnerable part of the power system infrastructure due to digitization and due to the weakness and vulnerabilities in the supply chain security. The paper will discuss in details how create a secure supply chain methodology, secure substations, and mitigate the risks due to digitization

Keywords: cybersecurity, supply chain methodology, secure substation, digitization

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7130 Assessing Green Metrics of Cement Supply Chain in Iran: A Fuzzy DEMATEL Approach

Authors: Hadi Badri Ahmadi, Xuping Wang

Abstract:

Due to strict regulations and public awareness, corporations should develop policies to effectively decrease the negative environmental effects of their products and enhance their supply chain environmental sustainability. Assessment of environmental issues in the context of many industries has been studied in the previous literature. However, Iran cement industry has received less attention from researchers. Therefore, in this paper, we apply a Decision-Making Trial and Evaluation Laboratory (DEMATEL) approach to assess the relationships among green metrics of Iran cement industry supply chain under fuzzy environment. The study findings provide considerable insight for cement industry managers and experts in order to enhance the environmental sustainability of their supply chain and move towards sustainable development.

Keywords: green supply chain, DEMATEL, fuzzy set theory, environmental sustainability, sustainable development, cement industry

Procedia PDF Downloads 381
7129 Application of Blockchain on Manufacturing Process Control and Pricing Policy

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

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7128 Method to Calculate the Added Value in Supply Chains of Electric Power Meters

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 270
7127 Supply Chain and Performance Measurement: An Alignment With Sustainable Development Goals

Authors: Miriam Corrado, Roberta Ciccola, Maria Serena Chiucchi

Abstract:

SDGs represent the last edge in the sustainability corporate practices, including the supply chain management. Supply chains are becoming more global and complex, can create more inclusive markets and make contribution to the advance of the sustainable development. In corporate practices, the presence of sustainability criteria in supply chain management could offer an opportunity to increase competitiveness and to meet stakeholders’ expectations in terms of sustainability and corporate accountability. The research aims to understand how focal companies can integrate SDGs in their supply chain and how they can measure and assess their impacts on SDGs. The study adopts a multiple case study methodology based on four case studies referred to companies committed in measuring SDGs’ performance in their supply chains. Preliminary findings demonstrate the willingness and the need of companies to commit under a supply-chain perspective for the achievement of SDGs. Companies recognize their role in impacting the SDGs through their procurement choices by defining and implementing an SDGs scoring system. The contribution of the study is twofold: first, given the lack of research and studies addressing the integration of SDGs in the supply chain and in the performance measurement systems, the research provides a contribution to the current academic literature in relation to these emerging gaps; second, the research provides a practical guidance to implement a sustainable supply chain and advance towards the achievement of SDGs.

Keywords: sustainable supply chains, sustainable development goals, performance measurement, performance management

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7126 Planning a Supply Chain with Risk and Environmental Objectives

Authors: Ghanima Al-Sharrah, Haitham M. Lababidi, Yusuf I. Ali

Abstract:

The main objective of the current work is to introduce sustainability factors in optimizing the supply chain model for process industries. The supply chain models are normally based on purely economic considerations related to costs and profits. To account for sustainability, two additional factors have been introduced; environment and risk. A supply chain for an entire petroleum organization has been considered for implementing and testing the proposed optimization models. The environmental and risk factors were introduced as indicators reflecting the anticipated impact of the optimal production scenarios on sustainability. The aggregation method used in extending the single objective function to multi-objective function is proven to be quite effective in balancing the contribution of each objective term. The results indicate that introducing sustainability factor would slightly reduce the economic benefit while improving the environmental and risk reduction performances of the process industries.

Keywords: environmental indicators, optimization, risk, supply chain

Procedia PDF Downloads 319
7125 Modelling the Education Supply Chain with Network Data Envelopment Analysis

Authors: Sourour Ramzi, Claudia Sarrico

Abstract:

Little has been done on network DEA in education, and nobody has attempted to model the whole education supply chain using network DEA. As such the contribution of the present paper is to propose a model for measuring the efficiency of education supply chains using network DEA. First, we use a general survey of data envelopment analysis (DEA) to establish the emergent themes for research in DEA, and focus on the theme of Network DEA. Second, we use a survey on two-stage DEA models, and Network DEA to write a state of the art on Network DEA, particularly applied to supply chain management. Third, we use a survey on DEA applications to establish the most influential papers on DEA education applications, in order to establish the state of the art on applications of DEA in education, in general, and applications of DEA to education using network DEA, in particular. Finally, we propose a model for measuring the performance of education supply chains of different education systems (countries or states within a country, for instance). We then use this model on some empirical data.

Keywords: supply chain, education, data envelopment analysis, network DEA

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7124 Future of the Supply Chain Management

Authors: Mehmet Şimşek

Abstract:

In the rapidly changing market conditions, it is getting harder to survive without adapting new abilities. Technology and globalization have enabled foreign producers to enter into national markets, even local ones. For this reason there is now big competition among production companies for market share. Furthermore, competition has provided customer with broad range of options to choose from. To be able to survive in this environment, companies need to produce at low price and at high quality. The best way to succeed this is the efficient use of supply chain management that has started to get shaped by the needs of customers and the environment.

Keywords: cycle time, logistics, outsourcing, production, supply chain

Procedia PDF Downloads 457
7123 Key Performance Indicators of Cold Supply Chain Practices in Agriculture Sector: Empirical Study on the Egyptian Export Companies

Authors: Ahmed Barakat, Nourhan Ahmed Saad, Mahmoud Hammad

Abstract:

Tracking and monitoring agricultural products, cold chain activities, and transportation in real-time can effectively ensure both the quality and safety of agricultural products, as well as reduce overall logistics costs. Effective supply chain practices are one of the main requirements for enhancing agricultural business in Egypt. Cold chain is among the best practices for the storage and transportation of perishable goods and has potential within the agricultural sector in Egypt. This practice has the scope of reducing the wastage of food and increasing the profitability with a reduction in costs. Even though it has several implementation challenges for the farmers, traders, and people involved in the entire supply chain, it has highlighted better benefits for all and for the export of goods for the economic progression for Egypt. The aim of this paper is to explore cold supply chain practices for the agriculture sector in Egypt, to enhance the export performance of fresh goods. In this context, this study attempts to explore those aspects of the performance of cold supply chain practices that can enhance the functioning of the agriculture sector in Egypt from the perspective of export companies (traders) and farmers. Based on the empirical results obtained by data collection from the farmers and traders, the study argues that there is a significant association between cold supply chain practices and enhancement of the agriculture value chain. The paper thus highlights the contribution of the study with final conclusions and limitations with scope for future research.

Keywords: agriculture sector, cold chain management, export companies, non-traded goods, supply chain management

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7122 An Integration of Life Cycle Assessment and Techno-Economic Optimization in the Supply Chains

Authors: Yohanes Kristianto

Abstract:

The objective of this paper is to compose a sustainable supply chain that integrates product, process and networks design. An integrated life cycle assessment and techno-economic optimization is proposed that might deliver more economically feasible operations, minimizes environmental impacts and maximizes social contributions. Closed loop economy of the supply chain is achieved by reusing waste to be raw material of final products. Societal benefit is given by the supply chain by absorbing waste as source of raw material and opening new work opportunities. A case study of ethanol supply chain from rice straws is considered. The modeling results show that optimization within the scope of LCA is capable of minimizing both CO₂ emissions and energy and utility consumptions and thus enhancing raw materials utilization. Furthermore, the supply chain is capable of contributing to local economy through jobs creation. While the model is quite comprehensive, the future research recommendation on energy integration and global sustainability is proposed.

Keywords: life cycle assessment, techno-economic optimization, sustainable supply chains, closed loop economy

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7121 Assessing the Impact of Autonomous Vehicles on Supply Chain Performance – A Case Study of Agri-Food Supply Chain

Authors: Nitish Suvarna, Anjali Awasthi

Abstract:

In an era marked by rapid technological advancements, the integration of Autonomous Vehicles into supply chain networks represents a transformative shift, promising to redefine the paradigms of logistics and transportation. This thesis delves into a comprehensive assessment of the impact of autonomous vehicles on supply chain performance, with a particular focus on network design, operational efficiency, and environmental sustainability. Employing the advanced simulation capabilities of anyLogistix (ALX), the study constructs a digital twin of a conventional supply chain network, encompassing suppliers, production facilities, distribution centers, and customer endpoints. The research methodically integrates Autonomous Vehicles into this intricate network, aiming to unravel the multifaceted effects on transportation logistics including transit times, cost-efficiency, and sustainability. Through simulations and scenarios analysis, the study scrutinizes the operational resilience and adaptability of supply chains in the face of dynamic market conditions and disruptive technologies like Autonomous Vehicles. Furthermore, the thesis undertakes carbon footprint analysis, quantifying the environmental benefits and challenges associated with the adoption of Autonomous Vehicles in supply chain operations. The insights from this research are anticipated to offer a strategic framework for industry stakeholders, guiding the adoption of Autonomous Vehicles to foster a more efficient, responsive, and sustainable supply chain ecosystem. The findings aim to serve as a cornerstone for future research and practical implementations in the realm of intelligent transportation and supply chain management.

Keywords: autonomous vehicle, agri-food supply chain, ALX simulation, anyLogistix

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7120 Humanitarian Supply Chain Management: Extended Literature Review

Authors: Busra Gulnihan Dascıoglu, Ozalp Vayvay, Zeynep Tugce Kalender

Abstract:

Humanitarian supply chain management has gain popularity in recent years in research fields. The aim of this paper is to review the literature on humanitarian operations and crisis/disaster management from 2010 to latest researches in order to identify the current research and to provide direction for future research in this growing field. Researches are classified considering the research publication year, research fields. Articles from humanitarian supply chain management were reviewed, keywords were identified within a disaster management lifecycle framework. Research gaps are identified for future research areas.

Keywords: crisis, disaster, humanitarian supply chain management, relief operations

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7119 Supplier Selection Using Sustainable Criteria in Sustainable Supply Chain Management

Authors: Richa Grover, Rahul Grover, V. Balaji Rao, Kavish Kejriwal

Abstract:

Selection of suppliers is a crucial problem in the supply chain management. On top of that, sustainable supplier selection is the biggest challenge for the organizations. Environment protection and social problems have been of concern to society in recent years, and the traditional supplier selection does not consider about this factor; therefore, this research work focuses on introducing sustainable criteria into the structure of supplier selection criteria. Sustainable Supply Chain Management (SSCM) is the management and administration of material, information, and money flows, as well as coordination among business along the supply chain. All three dimensions - economic, environmental, and social - of sustainable development needs to be taken care of. Purpose of this research is to maximize supply chain profitability, maximize social wellbeing of supply chain and minimize environmental impacts. Problem statement is selection of suppliers in a sustainable supply chain network by ranking the suppliers against sustainable criteria identified. The aim of this research is twofold: To find out what are the sustainable parameters that can be applied to the supply chain, and to determine how these parameters can effectively be used in supplier selection. Multicriteria decision making tools will be used to rank both criteria and suppliers. AHP Analysis will be used to find out ratings for the criteria identified. It is a technique used for efficient decision making. TOPSIS will be used to find out rating for suppliers and then ranking them. TOPSIS is a MCDM problem solving method which is based on the principle that the chosen option should have the maximum distance from the negative ideal solution (NIS) and the minimum distance from the ideal solution.

Keywords: sustainable supply chain management, sustainable criteria, MCDM tools, AHP analysis, TOPSIS method

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7118 The Effects of Cost-Sharing Contracts on the Costs and Operations of E-Commerce Supply Chains

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

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7117 A Robust Optimization Model for Multi-Objective Closed-Loop Supply Chain

Authors: Mohammad Y. Badiee, Saeed Golestani, Mir Saman Pishvaee

Abstract:

In recent years consumers and governments have been pushing companies to design their activities in such a way as to reduce negative environmental impacts by producing renewable product or threat free disposal policy more and more. It is therefore important to focus more accurate to the optimization of various aspect of total supply chain. Modeling a supply chain can be a challenging process due to the fact that there are a large number of factors that need to be considered in the model. The use of multi-objective optimization can lead to overcome those problems since more information is used when designing the model. Uncertainty is inevitable in real world. Considering uncertainty on parameters in addition to use multi-objectives are ways to give more flexibility to the decision making process since the process can take into account much more constraints and requirements. In this paper we demonstrate a stochastic scenario based robust model to cope with uncertainty in a closed-loop multi-objective supply chain. By applying the proposed model in a real world case, the power of proposed model in handling data uncertainty is shown.

Keywords: supply chain management, closed-loop supply chain, multi-objective optimization, goal programming, uncertainty, robust optimization

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7116 A Sustainable Design Model by Integrated Evaluation of Closed-loop Design and Supply Chain Using a Mathematical Model

Authors: Yuan-Jye Tseng, Yi-Shiuan Chen

Abstract:

The paper presented a sustainable design model for integrated evaluation of the design and supply chain of a product for the sustainable objectives. To design a product, there can be alternative ways to assign the detailed specifications to fulfill the same design objectives. In the design alternative cases, different material and manufacturing processes with various supply chain activities may be required for the production. Therefore, it is required to evaluate the different design cases based on the sustainable objectives. In this research, a closed-loop design model is developed by integrating the forward design model and reverse design model. From the supply chain point of view, the decisions in the forward design model are connected with the forward supply chain. The decisions in the reverse design model are connected with the reverse supply chain considering the sustainable objectives. The purpose of this research is to develop a mathematical model for analyzing the design cases by integrated evaluating the criteria in the closed-loop design and the closed-loop supply chain. The decision variables are built to represent the design cases of the forward design and reverse design. The cost parameters in a forward design include the costs of material and manufacturing processes. The cost parameters in a reverse design include the costs of recycling, disassembly, reusing, remanufacturing, and disposing. The mathematical model is formulated to minimize the total cost under the design constraints. In practical applications, the decisions of the mathematical model can be used for selecting a design case for the purpose of sustainable design of a product. An example product is demonstrated in the paper. The test result shows that the sustainable design model is useful for integrated evaluation of the design and the supply chain to achieve the sustainable objectives.

Keywords: closed-loop design, closed-loop supply chain, design evaluation, supply chain management, sustainable design model

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7115 Cost Diminution in Supply Chain of a Dairy Industry

Authors: Naveed Ahmed Khan

Abstract:

The ever increasing importance of food industry cannot be denied and especially in the wake of escalating population and prices both in developing and developed nations. Thus, this issue demands the attention of researchers especially in the area of supply chain to identify cost diminution waste eliminating supply chain practices in the said industry. For such purpose the 'Dairy Division' of Engro Foods Limited, one of the biggest food companies in Pakistan was taken into consideration in a case study manner. Based on the literature review and interviews following variables were obtained: energy, losses, maintenance, taxes, and logistics. Having studied the said variables, it was concluded that management of relevant industries operating in a comparable environment need to efficiently manage two major areas: energy and taxes. On the other hand, similar kind of other organizations could be benefited by adopting the proficient supply chain practices being observed at dairy division of Engro foods limited.

Keywords: cost diminution, supply chain, dairy industry, Engro Foods Limited

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7114 How Supply Chains Can Benefit from Open Innovation: Inspiration from Toyota Production System

Authors: Sam Solaimani, Jack A. A. van der Veen, Mehdi Latifi

Abstract:

Considering the increasingly VUCA (Volatile, Uncertain, Complex, Ambiguous) business market, innovation is the name of the game in contemporary business. Innovation is not solely created within the organization itself; its 'network environment' appears to be equally important for innovation. There are, at least, two streams of literature that emphasize the idea of using the extended organization to foster innovation capability, namely, Supply Chain Collaboration (SCC) (also rooted in the Lean philosophy) and Open Innovation (OI). Remarkably, these two concepts are still considered as being totally different in the sense that these appear in different streams of literature and applying different concepts in pursuing the same purposes. This paper explores the commonalities between the two concepts in order to conceptually further our understanding of how OI can effectively be applied in Supply Chain networks. Drawing on available literature in OI, SCC and Lean, the paper concludes with five principles that help firms to contextualize the implementation of OI to the peculiar setting of SC. Theoretically, the present paper aims at contributing to the relatively under-researched theme of Supply Chain Innovation. More in practical terms, the paper provides OI and SCC communities with a workable know-how to seize on and sustain OI initiatives.

Keywords: lean philosophy, open innovation, supply chain collaboration, supply chain management

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7113 Governance Framework for an Emerging Trust Ecosystem with a Blockchain-Based Supply Chain

Authors: Ismael Ávila, José Reynaldo F. Filho, Vasco Varanda Picchi

Abstract:

The ever-growing consumer awareness of food provenance in Brazil is driving the creation of a trusted ecosystem around the animal protein supply chain. The traceability and accountability requirements of such an ecosystem demand a blockchain layer to strengthen the weak links in that chain. For that, direct involvement of the companies in the blockchain transactions, including as validator nodes of the network, implies formalizing a partnership with the consortium behind the ecosystem. Yet, their compliance standards usually require that a formal governance structure is in place before they agree with any membership terms. In light of such a strategic role of blockchain governance, the paper discusses a framework for tailoring a governance model for a blockchain-based solution aimed at the meat supply chain and evaluates principles and attributes in terms of their relevance to the development of a robust trust ecosystem.

Keywords: blockchain, governance, trust ecosystem, supply chain, traceability

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