Modeling supplier selection and the use of option contracts for global supply chain design

Supplier selection is one of the key decisions in supply chain management. Companies need not only to make the “make” or “buy” decisions but also differentiate across potential suppliers in order to improve operational performance. Product design is an engineering based activity that realizes the customer requirements into functions of a new product. Many studies have pointed out that the integration of product and supply chain is a key factor for profitability and efficiency. However, most studies address supply chain performance after freezing the design of the product; only a few studies discuss when and how to incorporate supply chain decisions during product design. This paper presents a graph theory based optimization methodology to tackle this problem. The supplier selection issue is considered by evaluating its impact on both internal (e.g., ease of assembly) and external (e.g., transportation time) enterprise performances, which are aggregated as supply chain performance at the conceptual design stage. A case study in the bicycle industry demonstrates the advantages of this methodology. The presented mathematical programming formulation enables simultaneous optimization of both product design and supply chain design during the early design stages.

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Interactive adaptive particle swarm optimisation for optimal global supply chain design

International Journal of Integrated Supply Management ◽

10.1504/ijism.2017.10003977 ◽

2017 ◽

Vol 11 (1) ◽

pp. 1

Author(s):

Anoop Verma ◽

Satish Tyagi

Keyword(s):

Supply Chain ◽

Particle Swarm ◽

Global Supply Chain ◽

Particle Swarm Optimisation ◽

Supply Chain Design

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Distributing wine globally: financial and environmental trade-offs

International Journal of Physical Distribution & Logistics Management ◽

10.1108/ijpdlm-01-2016-0012 ◽

2017 ◽

Vol 47 (5) ◽

pp. 410-428 ◽

Cited By ~ 4

Author(s):

Mohsen Varsei ◽

Katherine Christ ◽

Roger Burritt

Keyword(s):

Supply Chain ◽

Environmental Impacts ◽

Carbon Emissions ◽

Design Methodology ◽

Global Supply Chain ◽

Supply Chain Design ◽

Water Usage ◽

Content Type ◽

Trade Offs ◽

Cost Risk

Purpose Given that currently around ten billion litres of wine are transported long distances to overseas consumers per year, the purpose of this paper is to provide a foundation for understanding the trade-offs between cost, water usage and carbon emissions in decisions about the location of wine bottling plants in a global supply chain. Design/methodology/approach This paper presents a case-based analytical modelling study and employs actual data from one of Australia’s major wine companies. A descriptive analytical model is developed for assessing wine supply chain scenarios using three indicators of economic and environmental impacts – supply chain cost, risk-weighted water usage and carbon emissions. Findings The research highlights trade-offs required when considering optimal supply chain design, and finds possibilities for reshaping a global wine supply chain in order to improve the selected economic and environmental impacts. Originality/value The originality of this paper lies in its analytical focus on examining the interplay between supply chain cost, risk-weighted water usage and carbon emissions in a global supply chain, which has not previously been addressed.

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IMPROVING EFFECTIVENESS OF SUPPLY CHAIN BY SELECTING AN APPROPRIATE SUPPLIER: AN ANALYTIC HIERARCHY PROCESS APPROACH

Journal of Advanced Manufacturing Systems ◽

10.1142/s0219686710001855 ◽

2010 ◽

Vol 09 (02) ◽

pp. 129-144 ◽

Cited By ~ 5

Author(s):

AVINASH D. SARODE ◽

V. K. SUNNAPWAR ◽

P. M. KHODKE

Keyword(s):

Supply Chain ◽

Analytic Hierarchy Process ◽

Supplier Selection ◽

Supply Chain Design ◽

Decision Models ◽

Analytic Hierarchy ◽

Extensive Analysis ◽

Efficiency And Effectiveness ◽

Hierarchy Process ◽

Selection Of

The supply chain is an important element for the development of all industries. It can improve efficiency and effectiveness of product transfer and information sharing between complex hierarchies of all the tiers. Supplier selection is an important step in the supply chain design. In many existing decision models for supplier selection, only quantitative criteria are considered. However, supplier selection is a multi-objective problem containing quantitative as well as qualitative factors. Hence, this paper attempts to demonstrate the application of the Analytic Hierarchy Process (AHP) to overcome the above-mentioned problem. From an extensive analysis of the results, it is evident that selection of an appropriate supplier would result in improving effectiveness of supply chain.

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