Locating manufacturing and distribution centers: An integrated supply chain-based spatial interaction approach

Author(s):  
Jiuh-Biing Sheu
Author(s):  
Christopher Van Eenoo

The concept and study of supply chains are nothing new. The concept of integrated supply chain environments (ISCE), however, has received increased study as of late. Technology has become the enabling factor for corporations to share information externally and to improve material flow within the supply chain. Many benefits can be realized from an integrated supply chain environment, including improved customer relations, cost reductions, and increased competitive advantage. Despite the potential benefits, there are many factors that lead to failed integrated supply chain implementations. Many of the major factors that lead to failure are not due to technological reasons but rather to the failure of the project team to recognize the complexities of the implementations of integrated supply chains. This chapter introduces the Interaction Approach methodology as a framework for analyzing supply chains in the hope of improving the design, development, and implementation of integrated supply chain environments.


2008 ◽  
Vol 27 (1) ◽  
pp. 3-13
Author(s):  
Charu Chandra ◽  
Jānis Grabis

Multiple interrelated decision-making models are frequently used in supply chain modeling. Model integration is a precondition for efficient development and utilization of these models. This paper discusses use of modern information technology (IT) techniques and methods for integration of supply chain decision-making models. The overall approach to using IT at various stages of model development is presented. Data and process modeling techniques are used to developed semi-formalized representation of integrated models. These models support integration of decision-making components with other parts of supply chain information system. Process modeling is also used to describe interrelationships among multiple decision-making models. This representation is used as the basis for implementation of integrated models. The service-oriented architecture is proposed as an implementation platform. The presented discussion serves as the basis for further developments in developing integrated supply chain decision-making models.


Author(s):  
Nasrin Mohabbati-Kalejahi ◽  
Alexander Vinel

Hazardous materials (hazmat) storage and transportation pose threats to people’s safety and the environment, which creates a need for governments and local authorities to regulate such shipments. This paper proposes a novel mathematical model for what is termed the hazmat closed-loop supply chain network design problem. The model, which can be viewed as a way to combine several directions previously considered in the literature, includes two echelons in the forward direction (production and distribution centers), three echelons in the backward direction (collection, recovery, and disposal centers), and emergency response team positioning. The two objectives of minimizing the strategic, tactical, and operational costs as well as the risk exposure on road networks are considered in this model. Since the forward flow of hazmat is directly related to the reverse flow, and since hazmat accidents can occur at all stages of the lifecycle (storage, shipment, loading, and unloading, etc.), it is argued that such a unified framework is essential. A robust framework is also presented to hedge the optimization model in case of demand and return uncertainty. The performance of both models is evaluated based on a standard dataset from Albany, NY. Considering the trade-offs between cost and risk, the results demonstrate the design of efficient hazmat closed-loop supply chain networks where the risk exposure can be reduced significantly by employing the proposed models.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Ali Beheshtinia ◽  
Narjes Salmabadi ◽  
Somaye Rahimi

Purpose This paper aims to provide an integrated production-routing model in a three-echelon supply chain containing a two-layer transportation system to minimize the total costs of production, transportation, inventory holding and expired drugs treatment. In the proposed problem, some specifications such as multisite manufacturing, simultaneous pickup and delivery and uncertainty in parameters are considered. Design/methodology/approach At first, a mathematical model has been proposed for the problem. Then, one possibilistic model and one robust possibilistic model equivalent to the initial model are provided regarding the uncertain nature of the model parameters and the inaccessibility of their probability function. Finally, the performance of the proposed model is evaluated using the real data collected from a pharmaceutical production center in Iran. The results reveal the proper performance of the proposed models. Findings The results obtained from applying the proposed model to a real-life production center indicated that the number of expired drugs has decreased because of using this model, also the costs of the system were reduced owing to integrating simultaneous drug pickup and delivery operations. Moreover, regarding the results of simulations, the robust possibilistic model had the best performance among the proposed models. Originality/value This research considers a two-layer vehicle routing in a production-routing problem with inventory planning. Moreover, multisite manufacturing, simultaneous pickup of the expired drugs and delivery of the drugs to the distribution centers are considered. Providing a robust possibilistic model for tackling the uncertainty in demand, costs, production capacity and drug expiration costs is considered as another remarkable feature of the proposed model.


2018 ◽  
Vol 10 (10) ◽  
pp. 3791 ◽  
Author(s):  
Daqing Wu ◽  
Jiazhen Huo ◽  
Gefu Zhang ◽  
Weihua Zhang

This paper aims to simultaneously minimize logistics costs and carbon emissions. For this purpose, a mathematical model for a three-echelon supply chain network is created considering the relevant constraints such as capacity, production cost, transport cost, carbon emissions, and time window, which will be solved by the proposed quantum-particle swarm optimization algorithm. The three-echelon supply chain, consisting of suppliers, distribution centers, and retailers, is established based on the number and location of suppliers, the transport method from suppliers to distribution centers, and the quantity of products to be transported from suppliers to distribution centers and from these centers to retailers. Then, a quantum-particle swarm optimization is described as its performance is validated with different benchmark functions. The scenario analysis validates the model and evaluates its performance to balance the economic benefit and environmental effect.


2018 ◽  
Vol 19 (1) ◽  
pp. 58
Author(s):  
Faisal Ibrahim

In this paper, we developed model integrated supply chain model with drop-shipper players.  The aim of the study is to integrate players in the supply chain system that one of its players is a drop shipper. This coordination model considers the policy of late payment and prosecution for delivery of goods. Previous, The author has described the supply chain system in detail. The experiments were conducted into different case scenarios, where each scenario would represent the actual system that occurred. Then also conducted sensitivity analysis on some predicted variables significantly influence the total cost of the supply chain. From the results obtained, it can be concluded that coordination with consideration of delay in payment and penalty contract for drop ship has successfully integrated the players in the supply chain system under study. This can be proved by the lower total cost of the supply chain when it is integrated with that consideration.


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