Two-layer supply chain model for Cauchy-type stochastic demand under fuzzy environment

2018 ◽  
Vol 11 (2) ◽  
pp. 285-308 ◽  
Author(s):  
Sujit Kumar De ◽  
Shib Sankar Sana
Keyword(s):  
Supply Chain ◽  
Fuzzy Sets ◽  
Density Function ◽  
Hausdorff Distance ◽  
Stochastic Demand ◽  
Maximization Problem ◽  
Chain Model ◽  
Cauchy Type ◽  
Distance Method ◽  
Content Type

Purpose The purpose of this paper is to deal with profit maximization problem of two-layer supply chain (SC) under fuzzy stochastic demand having finite mean and unknown variance. Buyback policy is employed from the retailer to supplier. The profit of the supplier solely depends on the order size of the retailers. However, the loss of shortage items is related to loss of profit and goodwill dependent. The authors develop the profit function separately for both the retailer and supplier, first, for a decentralized system and, second, joining them, the authors get a centralized system (CS) of decision making, in which one is giving more profit to both of them. The problem is solved analytically first, then the authors fuzzify the model and solve by fuzzy Hausdorff distance method. Design/methodology/approach The analytical models are formed for both centralized and decentralized systems under non-cooperative and cooperative environment with suitable constraints. A significant assumption on density function, namely Cauchy-type density function, is introduced for demand rate because of its wider range of the retailers’ satisfactions. Fuzzy Hausdorff metric is incorporated within the fuzzy components of the fuzzy sets itself. Using this method, the authors find out closure values of both centralized and decentralized policies, which is an essential part of any cooperative and non-cooperative two-layer SC models. Moreover, the authors take care of the profit values with corresponding ambiguities for both the systems explicitly. Findings It is found that the centralize policy of SC could only be able to maximize the profit of both the retailers and suppliers. All analytical results are illustrated numerically along with sensitivity analysis and side by side comparative studies between Hausdorff and Euclidean distance measure are done exclusively. Research limitations/implications The main focus of attention of the proposed model is given to usefulness of Hausdorff distance. Unlike other distances, Hausdorff distance can take special care on the similarity measures of different fuzzy sets. Researchers have been engaged to use Hausdorff distance on the different fuzzy sets but, in this study, the authors have used it within the components of a same fuzzy set to gain more closure values than other methods. Originality/value The use of this Hausdorff distance approach is totally new as per literature survey suggested yet. However, the Cauchy-type density function has not been introduced anywhere in SC management problems by modern researchers still now. In crisp model, the sensitivity on goodwill measures really provides a special attention also.

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.

Manufacturing and selling tactics for a green supply chain under a green cost sharing and a refund agreement

2020 ◽  
Vol 15 (4) ◽  
pp. 1419-1450 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Mahsa Noori-Daryan ◽  
Shib Sankar Sana
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Cost Sharing ◽  
Green Supply Chain ◽  
Chain Model ◽  
Content Type ◽  
Decentralized System ◽  
Quality Item ◽  
Decision Variables ◽  
Refund Rate

Purpose This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios. Demand depends on a price, refund and quality where the producer controls quality and the vendor proposes a refund policy to purchasers to encourage them to order more. Design/methodology/approach In the first scenario, the members seek to optimize their optimum decision variables under a centralized decision-making method while in the second scenario, a decentralized system is assumed where the members make a decision about variables and profits under a non-cooperative game. In the third scenario, a cost-sharing agreement is concluded between the members to provide a high-quality item to the purchasers. Findings The performance of the proposed model is investigated by illustrating a numerical example. A sensitivity analysis of some key parameters has been done to study the effect of the changes on the optimal values of the decision variables and profits. From sensitivity analysis, the real features are observed and mentioned in this section. Originality/value This research examines the behavior of partners in a green supply chain facing with a group of purchasers whose demand is the function of a price, greenery degree and refund rate. This proposed mathematical model is developed and analyzed which has an implication in supply chain model.

scholarly journals The effects of different kinds of returns on an integrated chance-constrained stochastic mobile phone closed-loop supply chain configuration and supplier selection

2021 ◽  
Author(s):  
Shahrzad Ahmadi Kermanshah
Keyword(s):  
Supply Chain ◽  
Mobile Phone ◽  
Supplier Selection ◽  
Closed Loop ◽  
Stochastic Demand ◽  
Mixed Integer ◽  
Chance Constraint ◽  
Distance Method ◽  
Closed Loop Supply Chain ◽  
Multi Objective

One of the important concerns in the world is E-waste. Ending up e-waste in the landfill and inappropriate disposing of it are hazardous to the environment. The goal of this research is to design and optimize a multi-period, multi-product, multi-echelon, and multi-customer Closed-Loop Supply Chain (CLSC) network for a mobile phone network considering different types of product returns. Commercial, end of life, and end-of-use returns are well-known in practice. In this research, a multi-objective mixed-integer linear programming formulation with stochastic demand and return is proposed to maximize the total profit in the mobile phone CLSC network, alongside maximizing the weights of eligible suppliers which are estimated based on a fuzzy method for efficient supplier selection and order allocation. Chance-constraint programming is applied in order to deal with the stochastic demand and return. Moreover, distance method and εε-constraint technique are employed to solve the proposed multi-objective problem. The application of the proposed mathematical model is illustrated in Toronto, Canada using real maps.

Digital supply chain model in Industry 4.0

2019 ◽  
Vol 31 (5) ◽  
pp. 887-933 ◽  
Author(s):  
Claudia Lizette Garay-Rondero ◽  
Jose Luis Martinez-Flores ◽  
Neale R. Smith ◽  
Santiago Omar Caballero Morales ◽  
Alejandra Aldrette-Malacara
Keyword(s):  
Supply Chain ◽  
Conceptual Model ◽  
Information And Communication Technologies ◽  
Industry 4.0 ◽  
Chain Model ◽  
Conceptual Approach ◽  
Comprehensive Overview ◽  
Content Type ◽  
Essential Components ◽  
Main Components

Purpose The purpose of this paper is to present a conceptual model that defines the essential components shaping the new Digital Supply Chains (DSCs) through the implementation and acceleration of Industry 4.0. Design/methodology/approach The scope of the present work exposes a conceptual approach and review of the key literature from 1989 to 2019, concerning the evolution and transformation of the actors and constructs in logistics and Supply Chain Management (SCM) by means of examining different conceptual models and a state-of-the-art review of Industry 4.0’s concepts and elements, with a focus on digitization in supply chain (SC) processes. A detailed study of the constructs and components of SCM, as defined by their authors, resulted in the development of a referential and systematic model that fuses the inherent concepts and roles of SCM, with the new technological trends directed toward digitization, automation, and the increasing use of information and communication technologies across logistics global value chains. Findings Having achieved an exploration of the different conceptual frameworks, there is no compelling evidence of the existence of a conceptual SCM that incorporates the basic theoretical constructs and the new roles and elements of Industry 4.0. Therefore, the main components of Industry 4.0 and their impact on DSC Management are described, driving the proposal for a new conceptual model which addresses and accelerates a vision of the future of the interconnectivity between different DSCs, grouped in clusters in order to add value, through new forms of cooperation and digital integration. Originality/value This research explores the gap in the current SCM models leading into Industry 4.0. The proposed model provides a novel and comprehensive overview of the new concepts and components driving the nascent and current DSCs. This conceptual framework will further aid researchers in the exploration of knowledge regarding the variables and components presented, as well as the verification of the newly revealed roles and constructs to understand the new forms of cooperation and implementation of Industry 4.0 in digitalized SCs.

Configuration of supply chain integration and delivery performance

2016 ◽  
Vol 11 (1) ◽  
pp. 43-74 ◽  
Author(s):  
Premaratne Samaranayake ◽  
Tritos Laosirihongthong
Keyword(s):  
Supply Chain ◽  
Performance Evaluation ◽  
Performance Measures ◽  
Supply Chain Performance ◽  
Chain Model ◽  
Content Type ◽  
Delivery Performance ◽  
Supply Chain Model ◽  
Evaluation And Monitoring ◽  
Integrated Supply Chain

Purpose – The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under dynamic and uncertain conditions. Design/methodology/approach – The research methodology consists of two stages: configuration of a conceptual framework of integrated supply chain model linked with performance measures and illustration of the integrated supply chain model and delivery performance using a case of dairy industry. The integrated supply chain model is based on a unitary structuring technique and forms the basis for measuring and evaluating supply chain performance. Delivery performance with variation of demand (forecast and actual) is monitored using a fuzzy-based decision support system, based on three inputs: capacity utilization (influenced by production disruption), raw materials shortage and quality of dairy products. Findings – Integration of supply chain components (materials, resources, operations, activities, suppliers, etc.) of key processes using unitary structuring approach enables information integration in real time for performance evaluation and monitoring in complex supply chain situations. In addition, real-time performance monitoring is recognized as being of great importance for supply chain management in responding to uncertainties inherent in the operational environment. Research limitations/implications – Implementation of an integrated model requires maintenance of supply chain components with all necessary data and information in a system environment such as enterprise resource planning. Practical implications – The integrated model provides decision-makers with an overall view of supply chain components and direct links that need to be maintained for supply chain performance evaluation and monitoring. Wider adaptation and diffusion of the proposed model require further validation of the model and feasibility of implementation, using real-time data and information on selected performance measures. Originality/value – Integration of supply chain components across supply chain processes directly linked with performance measures is a novel approach for effective supply chain performance evaluation and monitoring in complex supply chains under dynamic and uncertain conditions.

Supply chain network optimization with consideration of raw material and final product substitutions driven by price and carbon emissions

Kybernetes ◽  
2018 ◽  
Vol 47 (8) ◽  
pp. 1585-1603 ◽  
Author(s):  
Chuanxu Wang ◽  
Yanbing Li ◽  
Zhengcai Wang
Keyword(s):  
Supply Chain ◽  
Objective Function ◽  
Carbon Emissions ◽  
Network Optimization ◽  
Raw Materials ◽  
Raw Material ◽  
Maximization Problem ◽  
Supply Chain Network ◽  
Product Substitution ◽  
Content Type

Purpose This paper aims to develop a bi-objective mixed integer non-linear programing model to optimize the supply chain networks consisting of raw material providers, final product manufacturers and distribution centers. Raw material substitution caused by varying raw material supply amounts, prices and carbon emissions and final product substitution due to different product prices and carbon emissions are considered. Design/methodology/approach The proposed model aims to achieve total profit maximization and total carbon emission minimization. The objective function of carbon emissions is converted into a maximization problem by changing minimum to maximum. The composite objective function is the weighted sum of the bias value of each objective function. The model is then solved using software Lingo12. Findings Numerical analysis results show that an increase in the number of alternate raw materials for original raw material helps improve supply chain network performance, and variation in that number causes detectable but not significant changes in downstream final product substitution results. Originality/value The major differences between this work and existing research are as follows: first, although previous research considered carbon emissions in supply chain network optimization, it has not considered the substitution effects of products or raw materials. This paper considers the substitution of both raw material and productions. Second, the item substitution considered by previous research is derived from inventory shortage or price difference of original items. However, the substitution considered in the present paper is a response to differences in purchase price, production cost and carbon emissions for items.

scholarly journals Single-manufacturer and multi-retailer supply chain model with pre-payment based partial free transportation

2021 ◽  
Author(s):  
Amalesh Kumar Manna ◽  
Rajan Mondal ◽  
Ali Akbar Shaikh ◽  
Irfan Ali ◽  
Asoke Kumar Bhunia
Keyword(s):  
Supply Chain ◽  
Profit Maximization ◽  
Maximization Problem ◽  
Chain Model ◽  
Screening Process ◽  
Manufacturing Firm ◽  
Numerical Examples ◽  
Supply Chain Model ◽  
Imperfect Items ◽  
Rework Process

In this paper, a supply chain model between a manufacturing firm and a group of retailers has been developed. Manufacturing firm produces simultaneously both perfect and imperfect items which are separated by screening process. Then the perfect items are transferred to the retailers' showroom/warehouse located in different places and a part of imperfect items are repaired by rework process. Retailers receive the products from the manufacturer with paying partial pre-payment to ensure the replenishment of order. On the other hand, the manufacturer provides partial free transportation facility to the retailers due to pre-payment. The corresponding problem has been formulated mathematically as a profit maximization problem and then solved it analytically. As an illustration of this supply chain model, three numerical examples have been considered and solved. Finally, post optimality analyses have been carried out to investigate the effects of changes of different parameters on the optimal policy.

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