Distribution planning problem of a supply chain of perishable products under disruptions and demand stochasticity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pravin Suryawanshi ◽  
Pankaj Dutta
Keyword(s):  
Supply Chain ◽  
Research Work ◽  
Business Environment ◽  
Mixed Integer ◽  
Planning Problem ◽  
Nonlinear Program ◽  
Kiwi Fruit ◽  
Content Type ◽  
Transport Losses ◽  
The Impact

PurposeThe emergence of risk in today's business environment is affecting every managerial decision, majorly due to globalization, disruptions, poor infrastructure, forecasting errors and different uncertainties. The impact of such disruptive events is significantly high for perishable items due to their susceptibility toward economic loss. This paper aims to design and address an operational planning problem of a perishable food supply chain (SC).Design/methodology/approachThe proposed model considers the simultaneous effect of disruption, random demand and deterioration of food items on business objectives under constrained conditions. The study describes this situation using a mixed-integer nonlinear program with a piecewise approximation algorithm. The proposed algorithm is easy to implement and competitive to handle stationary as well as nonstationary random variables in place of scenario techniques. The mathematical model includes a real-life case study from a kiwi fruit distribution industry.FindingsThe study quantifies the performance of SC in terms of SC cost and fill rate. Additionally, it investigates the effects of disruption due to suppliers, transport losses, product perishability and demand stochasticity. The model incorporates an incentive-based strategy to provide cost-cutting in the existing business plan considering the effect of deterioration. The study performs sensitivity analysis to show various “what-if” situations and derives implications for managerial insights.Originality/valueThe study contributes to the scant literature of quantitative modeling of food SC. The research work is original as it integrates a stochastic (uncertain) nature of SC simultaneously coupled with the effect of disruption, transport losses and product perishability. It incorporates proactive planning strategies to minimize the disruption impact and the concept of incremental quantity discounts on lot sizes at a destination node.

Developing a model for supply chain agility and innovativeness to enhance firms’ competitive advantage

2019 ◽  
Vol 57 (7) ◽  
pp. 1511-1534 ◽  
Author(s):  
Chih-Jou Chen
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Business Environment ◽  
Structural Equations ◽  
Survey Method ◽  
Content Type ◽  
Supply Chain Agility ◽  
It Integration ◽  
The Impact

Purpose Developing agility and innovativeness as dynamic capabilities are important for firms to sustain their competitive advantage in today’s global economy. The purpose of this paper is to develop and empirically test a framework to investigate how the supply chain agility and innovativeness are achieved through IT integration and trust in members of supply chain and how these, in turn, can enhance firms’ competitive advantage. Design/methodology/approach This research employs a survey method and data are collected from senior managers working in the supply chain or IT area. The model and hypotheses are tested utilizing data from 204 usable Taiwan manufacturing firms via structural equations modeling methodology. Findings The study demonstrates that both IT integration and trust in supply chain members significantly enhance supply chain agility and innovativeness, which in turn positively affect firm’s competitive advantage. The results indicate that IT integration and trust are antecedents and major joint partnership resources for improving supply chain agility and innovativeness. Research limitations/implications Data are collected from manufacturing industry in Taiwan and single respondent from each firm, the generalizability of current findings to other industries or countries should require additional investigation. Practical implications The study suggests that a firm should focus on IT integration and trust in supply chain members to achieve supply chain agility and innovativeness. To take advantage of supply chain agility and innovativeness, through maximizing firm’s competitive advantage, firms should continually adapt to the fast changing business environment and search for creative ways to satisfy new market needs. Originality/value Given the attention paid to supply chain agility and innovativeness in terms of importance to responding to business uncertainty and competitiveness, and more recently, as important capabilities in managing supply chain management, this paper investigates how IT integration and trust can contribute to supply chain agility and innovativeness. Provide evidence regarding the impact of IT integration and trust on agility of supply chains, innovativeness and competitive advantage.

The impact of information technology and communication systems on the agility of supply chain management systems

Kybernetes ◽  
2019 ◽  
Vol 48 (10) ◽  
pp. 2217-2236 ◽  
Author(s):  
Roya Dehgani ◽  
Nima Jafari Navimipour
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Communication Systems ◽  
Business Environment ◽  
Accurate Information ◽  
Business World ◽  
Chain Management ◽  
Content Type ◽  
The Impact

PurposeThe impact of information technology (IT) on the agility of supply chain management (SCM) systems is very noticeable in the business world nowadays. Competition and constant changes, including product/technological innovations, decreasing product lifestyles and product proliferation, create pressure that affects the business environment. Organizations are required for answering the changes in the market to gain a competitive advantage and business success. The organizations are able to answer to unexpected market changes through supply chain market, and these changes are converted to business opportunities. Using IT to achieve the agility of SCM is one of the important factors to help the organizations. Therefore, the adoption of IT and its efficient implementation can improve the cooperation between supply chain agility through the rapid transfer, the distribution of accurate information and the use of information. This paper aims to investigate the impact of IT on the agility of SCM.Design/methodology/approachA total of 120 employees of the Golasal firm are involved in collecting data using a questionnaire. Measurements were performed in all questionnaires using a five-point Likert scale. The causal model is evaluated by structural equationmodeling technique, which is used to examine the reliability and validity of the model.FindingsThe results have shown that IT has positive influences on the agility of SCM systems. In addition, the obtained results have shown that four variables, namely, IT skills and knowledge, IT-based systems integration, IT infrastructure and design of global position system and geographic information systems, affect the agility of SCM systems.Originality/valueIn this paper, the agility of SCM systems is pointed out and the approach to resolve the problem is applied into a practical example. The presented model provides a complete framework to examine the impact of IT on the agility of SCM systems.

Multi-period demand allocation among supplier in a supply chain

2015 ◽  
Vol 10 (2) ◽  
pp. 138-157 ◽  
Author(s):  
Amol Singh
Keyword(s):  
Supply Chain ◽  
Set Theory ◽  
Hybrid Algorithm ◽  
Raw Materials ◽  
Research Work ◽  
Business Environment ◽  
Content Type ◽  
Linear Integer Programming ◽  
Order Preference ◽  
Demand Allocation

Purpose – This paper aims to address the problem of optimal allocation of demand of items among candidate suppliers to maximize the purchase value of items. The purchase value of the items directly relates to cost and quality of raw materials purchased from the supplier. In an increasingly competitive environment, firms are paying more attention to selecting the right suppliers for procurement of raw materials and component parts for their products. The present research work focuses on this issue of supply chain management. Design/methodology/approach – This present research work devises a hybrid algorithm for multi-period demand allocation among the suppliers. The customer demand is allocated by using a hybrid algorithm based on the technique for order preference by similarity to ideal solution (TOPSIS), fuzzy set theory and the mixed linear integer programming (MILP) approaches. Findings – The supply chain network is witnessing a changing business environment due to government policies aimed at promoting new small manufacturing enterprises (small and medium-sized enterprises) for intermediate parts and components. Hence, the managers have an option to select a new group of suppliers and allocate the optimal multi-period demand among the new group of suppliers to maximize their purchase value. In this context, the proposed hybrid model would be beneficial for the managers to operate their supply chain effectively and efficiently. The present research work will be helpful for the managers who are interested to reconfigure their supply chain under the failure of any supply chain partner or in a changing business environment. The model provides flexibility to the managers for evaluation of the different available alternatives to take a decision of optimal demand allocation among the suppliers. The proposed hybrid (fuzzy, TOPSIS and MILP) model provides more objective information for supplier evaluation and demand allocation among suppliers in a supply chain. The managers can use the proposed model to the analysis of other management decision-making problems. Originality/value – This present research work devises a hybrid algorithm for multi-period demand allocation among the suppliers. This hybrid algorithm prioritizes the suppliers and then allocates the multi-period demand among the suppliers. The customer demand is allocated by using a hybrid algorithm based on the technique for order preference by similarity to ideal solution (TOPSIS), fuzzy set theory and the mixed linear integer programming (MILP) approaches.

scholarly journals A cost-effective decision-making algorithm for an RFID-enabled HMSC network design

2017 ◽  
Vol 117 (9) ◽  
pp. 1782-1799 ◽  
Author(s):  
Ahmed Mohammed ◽  
Qian Wang ◽  
Xiaodong Li
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Food Supply ◽  
Programming Model ◽  
Meat Products ◽  
Cost Effective ◽  
Mixed Integer ◽  
Food Supply Chain ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the economic feasibility of a three-echelon Halal Meat Supply Chain (HMSC) network that is monitored by a proposed radio frequency identification (RFID)-based management system for enhancing the integrity traceability of Halal meat products and to maximize the average integrity number of Halal meat products, maximize the return of investment (ROI), maximize the capacity utilization of facilities and minimize the total investment cost of the proposed RFID-monitoring system. The location-allocation problem of facilities needs also to be resolved in conjunction with the quantity flow of Halal meat products from farms to abattoirs and from abattoirs to retailers. Design/methodology/approach First, a deterministic multi-objective mixed integer linear programming model was developed and used for optimizing the proposed RFID-based HMSC network toward a comprised solution based on four conflicting objectives as described above. Second, a stochastic programming model was developed and used for examining the impact on the number of Halal meat products by altering the value of integrity percentage. The ε-constraint approach and the modified weighted sum approach were proposed for acquisition of non-inferior solutions obtained from the developed models. Furthermore, the Max-Min approach was used for selecting the best solution among them. Findings The research outcome shows the applicability of the developed models using a real case study. Based on the computational results, a reasonable ROI can be achievable by implementing RFID into the HMSC network. Research limitations/implications This work addresses interesting avenues for further research on exploring the HMSC network design under different types of uncertainties and transportation means. Also, environmentalism has been becoming increasingly a significant global problem in the present century. Thus, the presented model could be extended to include the environmental aspects as an objective function. Practical implications The model can be utilized for food supply chain designers. Also, it could be applied to realistic problems in the field of supply chain management. Originality/value Although there were a few studies focusing on the configuration of a number of HMSC networks, this area is overlooked by researchers. The study shows the developed methodology can be a useful tool for designers to determine a cost-effective design of food supply chain networks.

scholarly journals The impact of market orientation on innovativeness: evidence from Yemeni SMEs

2020 ◽  
Vol 14 (1) ◽  
pp. 47-59 ◽  
Author(s):  
Wail Alhakimi ◽  
Mohammed Mahmoud
Keyword(s):  
Supply Chain ◽  
Market Orientation ◽  
Quantitative Methods ◽  
Customer Orientation ◽  
Research Work ◽  
Two Dimensions ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to investigate the impact of market orientation on small and medium-sizedenterprises (SMEs) innovativeness in Yemen. Design/methodology/approach The study uses empirical data collected from 206 managers, owners and operators of SME in Sana'a. By using exploratory and quantitative methods, the collected data was examined using descriptive, correlation and regression analyses. Findings The results indicated that market orientation, as a whole, has a significant impact on SME innovativeness. Specifically, while the two dimensions – customer orientation and supplier orientation – have a significant impact on SME innovativeness, the other two dimensions – competitor and inter-functional coordination – do not have a significant impact on SME innovativeness. Research limitations/implications The study focuses only on four factors that have an influence over SME innovativeness based on the perspective of managers. Practical implications SMEs represent the largest portion of businesses in Yemen’s private sector. It is anticipated that the findings of this study will help SMEs’ owners and managers to better understand market orientation and the significant impact it has on SME innovativeness. Originality/value The value of this research work is evident from the fact that the market orientation models have neglected the part of suppliers (upstream supply chain) in generating superior value for customers, even though they have concentrated on the role of customers (downstream supply chain) and competitors.

Importance of innovation and flexibility in configuring supply network sustainability

2018 ◽  
Vol 25 (9) ◽  
pp. 3951-3985 ◽  
Author(s):  
Surajit Bag ◽  
Shivam Gupta ◽  
Arnesh Telukdarie
Keyword(s):  
Supply Chain ◽  
Latent Variables ◽  
Business Environment ◽  
Raw Material ◽  
Equation Modeling ◽  
Supply Network ◽  
Value Analysis ◽  
Content Type ◽  
Moderation Effect ◽  
The Impact

PurposeThe alignment of procurement strategy with overall business strategy is important for superior firm performance. It is also essential for firms’ purchasing structure to fit the purchasing strategy whether it is cost reduction; value analysis and/or improving delivery and increasing flexibility for achieving superior purchasing performance. The purpose of this paper is to scientifically examine the influence of organization culture (OC), green supplier development (GSD), supplier relationship management, flexibility and innovation on sustainability in supply network (SSN) under the moderation effect of institutional pressures and resources availability.Design/methodology/approachThe study is grounded by integrating institutional theory (IT) and resource-based view (RBV) theory. The study empirically tests the conceptual model through survey data gathered from 175 respondents in the KwaZulu-Natal province of Southern Africa using structural equation modeling which is a multivariate data analysis technique that permits to simultaneously examine many relationships among manifest and latent variables.FindingsIt was found that OC plays a crucial role in shaping the workforce behavior and responsible for enhancing GSDs and building good relationship with suppliers which ultimately results into increased flexibility and innovativeness. Coercive pressures (CPs) play a moderating role between the causal relationship of innovation and SSN. Therefore, CPs have got the ability to amplify or reverse the effect between innovation and SSNs.Research limitations/implicationsThe study suffers from few limitations. First, the study is restricted to one particular province in South Africa. Second, cross-sectional data were used for testing of model in the research study.Practical implicationsThe findings are of great importance for both the researchers and supply chain practitioners. Supply chain practitioners may use this knowledge for benchmarking the supply network configuration process and continuously improve the process. The tested model actually shows the mechanism for enhancing SSNs. In today’s dynamic and uncertain business environment, all firms in the supply network aims to minimize risks and maximize profitability. The findings show that CPs play a moderating effect on the relationship between innovation and SSN. Whenever government authorities and institutions pressurize firms for minimizing pollution levels, we see a trend of increased innovations in the form of new product developments, usage of eco-friendly raw material and application of eco-friendly technology which ultimately minimizes the carbon footprint. Through such initiatives steel and engineering firms conform to the government norms and regulations. However, innovations are possible through collaboration with specialist suppliers and sub-suppliers by adopting a common standard across the supply network. Through this overall process of innovation, the focal firm and sub-suppliers linked in the network will benefit and ultimately achieve a competitive edge. Therefore, firms can experience multiple benefits in terms of lower development costs, lower project cycle completion time, improvement in design for re-manufacturability, low downtime, low supply risks, reduction of greenhouse gas emissions and, ultimately, sustainable development.Originality/valueThe study is unique from dual perspective – both in terms of scope and contribution to supply chain management literature. First, the study integrates flexibility and innovation to study the impact on SSNs. Second, it integrates both IT and RBV theory of firm to test the moderation effect and the findings further opens up window for future research.

Application of integrated TOPSIS in ASC index: partners benchmarking perspective

2016 ◽  
Vol 23 (3) ◽  
pp. 540-563 ◽  
Author(s):  
Anoop Kumar Sahu ◽  
Nitin Kumar Sahu ◽  
Atul Kumar Sahu
Keyword(s):  
Supply Chain ◽  
Research Work ◽  
Business Environment ◽  
Mathematical Equation ◽  
Linguistic Terms ◽  
Content Type ◽  
Agile Supply Chain ◽  
Chain Architecture ◽  
Priority Weights ◽  
Ranking Order

Purpose – In the rapidly changing business environment, companies must align with suppliers to streamline operations, as well as working together to achieve a level of agility beyond individual companies (Lin et al., 2006). Today’s more dynamic business environment increases the need for greater agility in supply chains, which increases both the importance and frequency of supplier/partner evaluation and benchmarking decision making. The purpose of this paper is to develop a multiple criterion appraisement index (model/module) for supplier/partner alternative firm benchmarking perspective under similar agile supply chain architecture. Design/methodology/approach – In this reporting, evaluation information against subjectivity (uncertain environment) indices has been transformed mathematical dimensionless numbers by fuzzy-based computation module. A new interval-valued fuzzy number set conjunction with modified “technique for order preference by similarity to ideal solution” methodology has been explored from benchmarking (ranking order of firm under similar criterion) point of view of supplier firms. Findings – In this context, a novel “fuzzy mathematical equation” has been developed in perceptive to compute the priority weights and appropriateness ratings of first-level measures which reduced the acquisition of supplementary priority weights and appropriateness ratings assessment in linguistic terms from group decision makers (DMs) for first-level indices. An empirical case study has been carried to ranking order the candidate partner/supplier alternative via collective index (CI) value. Lower value of “CI” reflected higher degree of performance extent. The authors found out the effectiveness and validity of proposed methodology for constructed appraisement module. Originality/value – This research work shall be valuable for that organization which volunteer to obtain the ranking order of partner/supplier alternative (benchmark) under similar agile supply chain architecture in accordance to group DMs’ comprehensive information for select best one supplier for own firm. In this reporting, a novel fuzzy mathematical equation has been developed in order to compute the important weights as well as priority rating of first-level indices/measure which reduced the supplementary important weights and priority rating assessment from group DMs in linguistic terms in order to obtain the measures rating and weights.

Modeling and solving a five-echelon location–inventory–routing problem for red meat supply chain

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Misagh Rahbari ◽  
Seyed Hossein Razavi Hajiagha ◽  
Mahdi Raeei Dehaghi ◽  
Mahmoud Moallem ◽  
Farshid Riahi Dorcheh
Keyword(s):  
Supply Chain ◽  
Red Meat ◽  
Mixed Integer ◽  
Real Case ◽  
Inventory Routing ◽  
Routing Problem ◽  
Content Type ◽  
Inventory Routing Problem ◽  
The Real ◽  
The Impact

Purpose In this paper, multi-period location–inventory–routing problem (LIRP) considering different vehicles with various capacities has been investigated for the supply chain of red meat. The purpose of this paper is to reduce variable and fixed costs of transportation and production, holding costs of red meat, costs of meeting livestock needs and refrigerator rents. Design/methodology/approach The considered supply chain network includes five echelons. Demand considered for each customer is approximated as deterministic using historical data. The modeling is performed on a real case. The presented model is a linear mixed-integer programming model. The considered model is solved using general algebraic modeling system (GAMS) software for data set of the real case. Findings A real-world case is solved using the proposed method. The obtained results have shown a reduction of 4.20 per cent in final price of red meat. Also, it was observed that if the time periods changed from month to week, the final cost of meat per kilogram would increase by 43.26 per cent. Originality/value This paper presents a five-echelon LIRP for the meat supply chain in which vehicles are considered heterogeneous. To evaluate the capability of the presented model, a real case is solved in Iran and its results are compared with the real conditions of a firm, and the rate of improvement is presented. Finally, the impact of the changed time period on the results of the solution is examined.

scholarly journals The impact of Brexit on designing a material-based global supply chain network for Asian manufacturers

2019 ◽  
Vol 30 (5) ◽  
pp. 980-1000 ◽  
Author(s):  
Kengo Nakamura ◽  
Tetsuo Yamada ◽  
Kim Hua Tan
Keyword(s):  
Supply Chain ◽  
Global Supply Chain ◽  
Mixed Integer ◽  
Supply Chain Network ◽  
Content Type ◽  
Supply Chain Configuration ◽  
The Uk ◽  
The Impact ◽  
Local Sourcing ◽  
Chain Configuration

Purpose The purpose of this paper is to investigate effects on global supply chain reconfigured in the customs duty rate of parts and specific material types brought about by Brexit and the Trans-Pacific Partnership (TPP). Design/methodology/approach The supply chain network is modeled and formulated using mixed integer programming. Numerical experiments are conducted using bill of materials with information such as the procurement cost of each part, 3D-CAD and an industry census. Findings The experiments indicates that if the customs duty rate increases by Brexit, manufacturers would be necessary to restructure supply chain configuration and locate the domestic factory and market. Additionally, when the UK leaves the EU and joins the TPP, there is a case where the total cost decreases in the global supply chain network compared to the baseline without Brexit. Therefore, it is reasonable for the UK to join the TPP. Practical implications The study shows how new trading rules from non-partnership countries can critically disrupt existing global supply chain equilibrium. Asian manufacturers should evaluate a move to more local sourcing, opening new facilities and setting up warehouses to stock finished goods or raw materials in different trading areas to overcome any barriers to the goods movement. Originality/value This study enables us to quantitatively evaluate what there are opportunities or cost increasing risks by the selection of supply chain configuration for Asian manufacturers by political and economic factors of each country, such as Brexit and participation in TPP.

An empirical examination of firm financial performance along dimensions of supply chain resilience

2017 ◽  
Vol 40 (3) ◽  
pp. 254-269 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple ◽  
Thomas Goldsby
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Three Dimensions ◽  
Empirical Examination ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Critical Dimensions ◽  
Firm Financial Performance ◽  
Supply Chain Agility ◽  
The Impact

Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.

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