The effect of investment in green technology in a two echelon supply chain under strict carbon-cap policy

2020 ◽  
Vol 27 (6) ◽  
pp. 1875-1891 ◽  
Author(s):  
Arindam Ghosh ◽  
S P Sarmah ◽  
Radhey Krishna Kanauzia
Keyword(s):  
Supply Chain ◽  
Greenhouse Gas Emission ◽  
Academic Community ◽  
Green Technology ◽  
Added Value ◽  
Mixed Integer ◽  
Chain Model ◽  
Content Type ◽  
Green Investment ◽  
The Cost

PurposeStrict carbon-cap policy is one of the basic policies proposed by the regulatory bodies to reduce the anthropogenic greenhouse gas emission. The purpose of this paper is to examine whether it is beneficial for a company to invest in green technology or not under the strict carbon-cap policy and for that a two echelon supply chain model is developed. This paper gives insight about judicious decision about investment on green technology.Design/methodology/approachMathematical modeling approach has been adopted to understand the effect of investment on green technology. All the cost and emissions parameters have been derived and the total cost (TC) and total emission equations have been formulated mathematically. Two constrained mixed-integer nonlinear programming (MINLP) problems have been formulated and solved considering with or without green investment. Further, supply chain cost is optimized without carbon constraint to understand the effect of carbon constraint.FindingsThe investment in green technology can reduce the total supply chain cost. The study reveals that handling different parameters optimally can reduce both cost and emissions.Originality/valueThis paper tries to assess the effectiveness of green investment on technology under strict carbon-cap policy on a supply chain and, thereby, added value to the existing work. It examines the role played by various parameters under strict carbon-cap policy to draw insights, which will be beneficial for the academic community and managers.

Optimization of a two-echelon supply chain with random demand and random defect rate under strict carbon cap policy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arindam Ghosh
Keyword(s):  
Supply Chain ◽  
Sensitivity Analyses ◽  
Mixed Integer ◽  
Defective Items ◽  
Content Type ◽  
Defect Rate ◽  
Decision Variables ◽  
Minlp Problem ◽  
Regulatory Bodies ◽  
The Cost

PurposeThe yield of defective items and emissions of greenhouse gases in supply chains are areas of concern. Organizations try to reduce the yield defective items and emissions. In this paper, a constrained optimization model is developed with consideration of the yield of defective items and strict carbon cap policy simultaneously and then optimized. Further, sensitivity analyses have been carried out to draw different managerial insights. Precisely, we have tried to address the following research questions: (1) how to optimize the cost for a two-echelon supply chain considering yield of defective items and strict carbon cap policy, (2) how the total expected cost and total expected emissions act with changing parameters.Design/methodology/approachThe mathematical modeling approach has been adopted to develop a model and further optimized it with optimization software. Costs and emissions from different areas of a supply chain have been derived and then the total cost and total emissions have been formulated mathematically. One constrained mixed-integer nonlinear programming (MINLP) problem has been formulated and solved considering emissions-related, velocity and production related-constraints. Further, different sensitivity analyses have been derived to draw some managerial insights.FindingsIn this paper, many decision variables have been calculated with a set of basic values of other parameters. It has been found that both cost and emissions can be controlled by controlling different parameters. It has been also found that some parameters have very little or no influence either on cost or emissions. In most cases, originations may exhaust the given limit of carbon cap to optimize their costs.Originality/valueIn spite of my sincere efforts, no paper has been found that has considered the yield of defective items and strict carbon cap policy simultaneously. In this paper, it is assumed that both demand and defect rates are random in nature. The model, presented in this paper may give insights to develop different supply chain models with consideration of both defective items and strict carbon cap policy. Sensitivity analyses, drawn in this paper may give deep insights to managers and carbon regulatory bodies.

Prioritizing high-risk sub-groups in a multi-manufacturer vaccine distribution program

2017 ◽  
Vol 28 (2) ◽  
pp. 311-331 ◽  
Author(s):  
Sharon Hovav ◽  
Avi Herbon
Keyword(s):  
Supply Chain ◽  
High Risk ◽  
Large Scale ◽  
Decision Support Tool ◽  
Added Value ◽  
Mixed Integer ◽  
Efficient Manner ◽  
Content Type ◽  
Support Tool ◽  
Medical Burden

Purpose Annual influenza epidemics cause great losses in both human and financial terms. The purpose of this paper is to propose a model for optimizing a large-scale influenza vaccination program (VP). The goal is to minimize the total cost of the vaccination supply chain while guaranteeing a sufficiently high level of population protection. From a practical point of view, the analysis returns the number of shipments and the quantity of vaccines in each periodic shipment that should be delivered from the manufacturers to the distribution center (DC), from the DC to the clinics, and from the clinics to each sub-group of customers during the vaccination season. Design/methodology/approach A mixed-integer programming optimization model is developed to describe the problem for a supply chain consisting of vaccine manufacturers, the healthcare organization (HCO) (comprising the DC and clinics), and the population being vaccinated (customers). The model suggests a VP that implemented by a nation-wide HCO. Findings The benefits of the proposed approach are shown to be particularly salient in cases of limited resources, as the model distributes demand backlogs in an efficient manner, prioritizing high-risk sub-groups of the population over lower-risk sub-groups. In particular, the authors show a reduction in direct medical burden of consumers, such as the need for doctors, hospitalization resources, and reduction of indirect, non-medical burden, such as loss of workdays. Practical implications Drawing from the extended enterprise paradigm, and, in particular, taking consumer benefits into account, the authors suggest an operational-strategic model that creates impressive added value in a highly constrained supply chain. The model constitutes a powerful decision tool for the deployment of large-scale seasonal products, and its implementation can yield multiple benefits for various consumer segments. Originality/value The model proposed herein constitutes a decision support tool comprising operational-tactical and tactical-strategic perspectives, which logistics managers can utilize to create an enterprise-oriented plan that takes into account medical and non-medical costs.

Network effect in shared supply chain platform value co-creation behavior in evolutionary game1

2021 ◽  
pp. 1-12
Author(s):  
Zou Xiaohong ◽  
Chen Jinlong ◽  
Gao Shuanping
Keyword(s):  
Boundary Condition ◽  
Supply Chain ◽  
Large Scale ◽  
Simulation Analysis ◽  
Supply And Demand ◽  
Evolutionary Game ◽  
Dynamic Game ◽  
Network Effect ◽  
Chain Model ◽  
The Cost

The shared supply chain model has provided new ideas for solving contradictions between supply and demand for large-scale standardized production by manufacturers and personalized demands of consumers. On the basis of a platform network effect perspective, this study constructs an evolutionary game model of value co-creation behavior for a shared supply chain platform and manufacturers, analyzes their evolutionary stable strategies, and uses numerical simulation analysis to further verify the model. The results revealed that the boundary condition for manufacturers to participate in value co-creation on a shared supply chain platform is that the net production cost of the manufacturers’ participation in the platform value co-creation must be less than that of nonparticipation. In addition, the boundary condition for the shared supply chain platform to actively participate in value co-creation is that the cost of the shared supply chain platform for active participation in value co-creation must be less than that of passive participation. Moreover, value co-creation behavior on the shared supply chain platform is a dynamic game interaction process between players with different benefit perceptions. Finally, the costs and benefits generated by the network effect can affect value co-creation on shared supply chain platforms.

The problems facing agricultural sector in Zanzibar and the prospects of Waqf-Muzar’ah-supply chain model

Humanomics ◽  
2017 ◽  
Vol 33 (2) ◽  
pp. 189-210 ◽  
Author(s):  
Issa Salim Moh’d ◽  
Mustafa Omar Mohammed ◽  
Buerhan Saiti
Keyword(s):  
Supply Chain ◽  
Interest Rates ◽  
Financial Models ◽  
Agricultural Sector ◽  
Chain Model ◽  
Content Type ◽  
High Interest ◽  
Supply Chain Model ◽  
The Government ◽  
Clove Industry

Purpose This paper aims to identify the appropriate model to address the financial challenges in agricultural sector in Zanzibar. Since the middle of 1960, clove production has continually and significantly decreased because of some problems and challenges that include financial ones. The financial intermediaries such as banks, cooperatives and micro-enterprises provide micro-financing to the farmers with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. Design/methodology/approach The authors will review and examine several existing financial models, identify the issues and challenges of the current financial models and propose an appropriate Islamic financing model. Findings The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. This study, therefore, proposed a Waqf-Muzara’ah-supply chain model to address the financial challenge. Partnership arrangement is also suggested in the model to mitigate the issues of high interest rates and collateral that constrains the financial ability of the farmers and their agricultural output. Originality/value The contribution of the agricultural sector to the economic development of Zanzibar Islands is considerable. As one of the important agricultural sectors, the clove industry was the economic backbone of the government of Zanzibar. This study is believed to be a pioneering work; hence, it is the first study that investigates empirically the challenges facing the clove industry in Zanzibar.

How can mixed integer linear programming assist dairy manufacturers by integrating supply decisions and production planning?

2021 ◽  
Vol 11 (2) ◽  
pp. 178-193
Author(s):  
Juliana Emidio ◽  
Rafael Lima ◽  
Camila Leal ◽  
Grasiele Madrona
Keyword(s):  
Linear Programming ◽  
Supply Chain ◽  
Integer Linear Programming ◽  
Mixed Integer Linear Programming ◽  
Dairy Products ◽  
Raw Milk ◽  
Mixed Integer ◽  
Content Type ◽  
Proposed Model ◽  
By Products

PurposeThe dairy industry needs to make important decisions regarding its supply chain. In a context with many available suppliers, deciding which of them will be part of the supply chain and deciding when to buy raw milk is key to the supply chain performance. This study aims to propose a mathematical model to support milk supply decisions. In addition to determining which producers should be chosen as suppliers, the model decides on a milk pickup schedule over a planning horizon. The model addresses production decisions, inventory, setup and the use of by-products generated in the raw milk processing.Design/methodology/approachThe model was formulated using mixed integer linear programming, tested with randomly generated instances of various sizes and solved using the Gurobi Solver. Instances were generated using parameters obtained from a company that manufactures dairy products to test the model in a more realistic scenario.FindingsThe results show that the proposed model can be solved with real-world sized instances in short computational times and yielding high quality results. Hence, companies can adopt this model to reduce transportation, production and inventory costs by supporting decision making throughout their supply chains.Originality/valueThe novelty of the proposed model stems from the ability to integrate milk pickup and production planning of dairy products, thus being more comprehensive than the models currently available in the literature. Additionally, the model also considers by-products, which can be used as inputs for other products.

Coordinating lot sizing and integrated production and distribution scheduling with batch delivery and holding cost

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maedeh Bank ◽  
Mohammad Mahdavi Mazdeh ◽  
Mahdi Heydari ◽  
Ebrahim Teimoury
Keyword(s):  
Supply Chain ◽  
Lot Sizing ◽  
Mixed Integer ◽  
Time Interval ◽  
Content Type ◽  
Integrated Production ◽  
Holding Costs ◽  
Integrated Production And Distribution ◽  
Distribution Scheduling ◽  
Production And Distribution

PurposeThe aim of this paper is to present a method for finding the optimum balance between sequence-dependent setup costs, holding costs, delivery costs and delay penalties in an integrated production–distribution system with lot sizing decisions.Design/methodology/approachTwo mixed integer linear programming models and an optimality property are proposed for the problem. Since the problem is NP-hard, a genetic algorithm reinforced with a heuristic is developed for solving the model in large-scale settings. The algorithm parameters are tuned using the Taguchi method.FindingsThe results obtained on randomly generated instances reveal a performance advantage for the proposed algorithm; it is shown that lot sizing can reduce the average cost of the supply chain up to 11.8%. Furthermore, the effects of different parameters and factors of the proposed model on supply chain costs are examined through a sensitivity analysis.Originality/valueAlthough integrated production and distribution scheduling in make-to-order industries has received a great deal of attention from researchers, most researchers in this area have treated each order as a job processed in an uninterrupted time interval, and no temporary holding costs are assumed. Even among the few studies where temporary holding costs are taken into consideration, none has examined the effect of splitting an order at the production stage (lot sizing) and the possibility of reducing costs through splitting. The present study is the first to take holding costs into consideration while incorporating lot sizing decisions in the operational production and distribution problem.

scholarly journals An investigation on the professionalization of education in Maritime logistics and supply chains

2018 ◽  
Vol 3 (4) ◽  
pp. 394-413 ◽  
Author(s):  
Yui-Yip Lau ◽  
Adolf K.Y. Ng ◽  
Ka-Chai Tam ◽  
Erico Ka Kan Chan
Keyword(s):  
Supply Chain ◽  
Professional Education ◽  
Associate Degree ◽  
Research Area ◽  
Added Value ◽  
Academic Learning ◽  
Professional Status ◽  
Maritime Logistics ◽  
Content Type ◽  
Steady Growth

Purpose This paper aims to investigate the development of logistics and supply chain education through conducting comparative study between high diploma and associate degree. This study will critically review the added value of sub-degree courses of professional education. What exactly drives sub-degree students to enroll for a high diploma and associate degree program in maritime logistics and supply chain studies? How do they select to enroll such programs? Do such programs foster the students to equip in the professions? What do they look for obtaining professional status afterwards? Design/methodology/approach To address the stated queries, this study will analyze students’ evaluation of the effectiveness of sub-degree education and their motivation on enrolling these courses through a questionnaire survey. Findings In the context of higher education, sub-degrees of professional studies experienced tremendous growth in recent decades. Many academic institutions have recorded an upward trend in providing professional education on subjects that traditionally focused on apprentice-style, non-academic learning approach. However, the reasons behind the steady growth of the demand of sub-degree level of professional education have been under-researched. Research limitations/implications This research is based on Hong Kong data only. Originality/value The paper not only increases the scope and depth of research area in logistics and supply chain education but also contributes theoretically to the understanding on the curriculum of sub-degree logistics and supply chain programs.

scholarly journals Performance tradeoffs for spare parts supply chains with additive manufacturing capability servicing intermittent demand

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kyle C. McDermott ◽  
Ryan D. Winz ◽  
Thom J. Hodgson ◽  
Michael G. Kay ◽  
Russell E. King ◽  
...  
Keyword(s):  
Supply Chain ◽  
Additive Manufacturing ◽  
Production Capacity ◽  
Spare Part ◽  
Spare Parts ◽  
Mixed Integer ◽  
Network Configuration ◽  
Intermittent Demand ◽  
Content Type ◽  
Demand Patterns

PurposeThe study aims to investigate the impact of additive manufacturing (AM) on the performance of a spare parts supply chain with a particular focus on underlying spare part demand patterns.Design/methodology/approachThis work evaluates various AM-enabled supply chain configurations through Monte Carlo simulation. Historical demand simulation and intermittent demand forecasting are used in conjunction with a mixed integer linear program to determine optimal network nodal inventory policies. By varying demand characteristics and AM capacity this work assesses how to best employ AM capability within the network.FindingsThis research assesses the preferred AM-enabled supply chain configuration for varying levels of intermittent demand patterns and AM production capacity. The research shows that variation in demand patterns alone directly affects the preferred network configuration. The relationship between the demand volume and relative AM production capacity affects the regions of superior network configuration performance.Research limitations/implicationsThis research makes several simplifying assumptions regarding AM technical capabilities. AM production time is assumed to be deterministic and does not consider build failure probability, build chamber capacity, part size, part complexity and post-processing requirements.Originality/valueThis research is the first study to link realistic spare part demand characterization to AM supply chain design using quantitative modeling.

scholarly journals Mathematical modeling for optimizing the blood supply chain network

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amir Rahimzadeh Dehaghani ◽  
Muhammad Nawaz ◽  
Rohullah Sultanie ◽  
Tawiah Kwatekwei Quartey-Papafio
Keyword(s):  
Supply Chain ◽  
Blood Supply ◽  
Supply Chain Network ◽  
Distribution Centers ◽  
Nsga Ii ◽  
Content Type ◽  
Supply Chain Networks ◽  
Multi Objective ◽  
Blood Supply Chain ◽  
The Cost

PurposeThis research studies a location-allocation problem considering the m/m/m/k queue model in the blood supply chain network. This supply chain includes three levels of suppliers or donors, main blood centers (laboratories for separation, storage and distribution centers) and demand centers (hospitals and private clinics). Moreover, the proposed model is a multi-objective model including minimizing the total cost of the blood supply chain (the cost of unmet demand and inventory spoilage, the cost of transport between collection centers and the main centers of blood), minimizing the waiting time of donors in blood donating mobile centers, and minimizing the establishment of mobile centers in potential places.Design/methodology/approachSince the problem is multi-objective and NP-Hard, the heuristic algorithm NSGA-II is proposed for Pareto solutions and then the estimation of the parameters of the algorithm is described using the design of experiments. According to the review of the previous research, there are a few pieces of research in the blood supply chain in the field of design queue models and there were few works that tried to use these concepts for designing the blood supply chain networks. Also, in former research, the uncertainty in the number of donors, and also the importance of blood donors has not been considered.FindingsA novel mathematical model guided by the theory of linear programming has been proposed that can help health-care administrators in optimizing the blood supply chain networks.Originality/valueBy building upon solid literature and theory, the current study proposes a novel model for improving the supply chain of blood.

scholarly journals Tax or Subsidy? Optimal Carbon Emission Policy: A Supply Chain Perspective

2020 ◽  
Vol 12 (4) ◽  
pp. 1548 ◽  
Author(s):  
Xing Yin ◽  
Xiaolin Chen ◽  
Xiaolin Xu ◽  
Lianmin Zhang
Keyword(s):  
Supply Chain ◽  
Carbon Emission ◽  
Negative Impact ◽  
Green Technology ◽  
Manufacturing Firm ◽  
Numerical Studies ◽  
The Social ◽  
The Government ◽  
Increasing Demand ◽  
The Cost

With a rigid requirement for environment protection, governments need to make appropriate policies to induce firms to adopt green technology in consideration of the rapidly increasing demand for environmentally friendly products. We investigated the government policy from the perspective of a supply chain, which consisted of the upstream government (she) and the downstream manufacturing firm (he). The government decided on the policy (tax or subsidy) to maximize the social welfare, while the firm decided on the greenness level of the product, which affects the consumers’ choice behavior and hence his own demand. Assuming else being equal, the government should adopt the tax policy if consumers are very sensitive to the greenness, the cost of greening is high, or the negative impact due to carbon emission is large, and subsidize the firm otherwise. We also conduct some numerical studies when price is endogenous. The main insights can be carried over.

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