Environmentally sustainable stochastic procurement model

2018 ◽  
Vol 29 (3) ◽  
pp. 472-498 ◽  
Author(s):  
Harpreet Kaur ◽  
Surya Prakash Singh
Keyword(s):  
Carbon Emissions ◽  
Environmental Sustainability ◽  
Lot Sizing ◽  
Planning Horizon ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Mixed Integer ◽  
Content Type ◽  
Environmentally Sustainable ◽  
Procurement Planning

Purpose Procurement planning has always been a huge and challenging activity for business firms, especially in manufacturing. With government legislations about global concern over carbon emissions, the manufacturing firms are enforced to regulate and reduce the emissions caused throughout the supply chain. It is observed that procurement and logistics activities in manufacturing firms contribute heavily toward carbon emissions. Moreover, highly dynamic and uncertain business environment with uncertainty in parameters such as demand, supplier and carrier capacity adds to the complexity in procurement planning. The paper aims to discuss these issues. Design/methodology/approach This paper is a novel attempt to model environmentally sustainable stochastic procurement (ESSP) problem as a mixed-integer non-linear program. The ESSP optimizes the procurement plan of the firm including lot-sizing, supplier and carrier selection by addressing uncertainty and environmental sustainability. The model applies chance-constrained-based approach to address the uncertain parameters. Findings The proposed ESSP model is solved optimally for 30 data sets to validate the proposed ESSP and is further demonstrated using three illustrations solved optimally in LINGO 10. Originality/value The ESSP model simultaneously minimizes total procurement cost and carbon emissions over the entire planning horizon considering uncertain demand, supplier and carrier capacity.

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.

Dynamic supplier selection approach for mining equipment company

2019 ◽  
Vol 14 (1) ◽  
pp. 77-105 ◽  
Author(s):  
Md. Tanweer Ahmad ◽  
Sandeep Mondal
Keyword(s):  
Sensitivity Analysis ◽  
Supplier Selection ◽  
Business Environment ◽  
Spare Parts ◽  
Mixed Integer ◽  
Optimal Order ◽  
Mining Equipment ◽  
Order Allocation ◽  
Managerial Implication ◽  
Content Type

PurposeThis paper aims to address the supplier selection (SS) problem under dynamic business environments to optimize the procurement cost of spare-parts in the context of a mining equipment company (MEC). Practically, involved parameters’ value does not remain constant as planning periods due to fluctuation in the demand and their market dynamics. Therefore, dynamicity in the parameter is considered as an important factor when a company forms a responsive chain through most eligible suppliers with respect to planning periods. This area of study may be considered for their complexities to the approaches toward order-allocations with bi-products of unused and repair spare-parts.Design/methodology/approachAn integrated methodology of analytic hierarchy process (AHP) and mixed-integer non-linear programming (MILP) is implemented in the two stages during each planning periods. In the first stage, AHP is used to obtain the relative weights with respect to each spare-parts of each criterion and based on that, the ranking is evaluated in accordance with case considered. And in the second stage, MILP is formulated to find the allocations of each spare-part with two distinct approaches through Model-1 and Model-2 separately. Moreover, Model-1 and Model-2 are outlined based on the ranking and efficient parameters-value under cost, limited capacities, quality level and delay lead time respectively.FindingsThe ranking and their optimal order-allocation of potential suppliers are obtained during consecutive planning periods for both unused and repair spare-parts. Subsequently, sensitivity analysis is conducted to deduce the key nuggets with the comparison of Model-1 and Model-2 in the changing of capacity, demand and cost per spare-parts. From this analysis, it is found that suppliers who have optimal parameter settings would be better for order-allocations than ranking during the changing planning period.Practical implicationsThis paper points out the situation-specific approach for SS problem for a mining industry which often faces disruptive supplying environments. The managerial implication between ranking and parameters are highlighted through Model-1 and Model-2 by sensitivity analysis.Originality/valueIt provides useful directions for managers who are involved in the procurement of spare-parts in the mining environment. For this, suppliers are selected for order-allocation by using Model-1 and Model-2 in the dynamic business environment. The solvability of the model is presented using LINGO 17. Furthermore, the case company selected in this study can be extended to other sectors.

AN EMPIRICAL STUDY ON THE IMPACT OF SUSTAINABLE MANUFACTURING PRACTICES AND INNOVATION PERFORMANCE ON ENVIRONMENTAL SUSTAINABILITY

2015 ◽  
Vol 77 (4) ◽  
Author(s):  
N. Hami ◽  
M.R. Muhammad ◽  
Z. Ebrahim
Keyword(s):  
Environmental Sustainability ◽  
Structural Equation ◽  
Sustainable Manufacturing ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Equation Modeling ◽  
The Impact ◽  
The Relationship

This study analyzes the causal relationship between sustainable manufacturing practice (SMP) and environmental sustainability as well as determines the mediating effect of innovation performance (IP) on the relationship between SMP and environmental sustainability. Adaptation from the changing business environment, manufacturing firms are facing great challenge on producing more products with less resource consumption, pollution emitted and waste generated. Using structural equation modeling, the survey data collected from 150 Malaysian manufacturing firms has been analyzed in this study. The empirical results show that both types of SMP have a positive and significant impact on environmental sustainability with external SMP is greater than internal SMP. However, there is no significant evidence to prove IP as a mediator for SMP-environmental sustainability linkage. The findings of this paper have important implication in both theoretical and practical perspectives. While provide better understanding of the phenomena by simultaneously analyzing a series of dependence relationships among SMP, IP and environmental sustainability, these results could help managers to understand the types of practices that would improve their environmental performance.  

A quantile regression approach to trail financial performance of manufacturing firms

2019 ◽  
Vol 20 (3) ◽  
pp. 290-310
Author(s):  
Swagatika Nanda ◽  
Ajaya Kumar Panda
Keyword(s):  
Quantile Regression ◽  
Financial Performance ◽  
Large Scale ◽  
Service Sector ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
Content Type ◽  
Regression Approach ◽  
Different Levels

Purpose The purpose of this paper is to track the financial performance of manufacturing firms at different levels of their conditional quantiles. It also analyzes the relevance of revenue and cost channels along with key firm-specific parameters that influence firm’s profitability. Design/methodology/approach The study analyses a sample of 1,000 manufacturing firms over a study period spanning from 2000 to 2016. It uses both quantile regression and panel ordinary linear square (OLS) models to analyze the financial performance of the firms. Findings The study finds large scale of heterogeneity among the firms under different quantiles of profitability. Export earnings, firm size, asset turnover and volatility of exchange rate are the decisive determinants of financial performance across all quantiles. Financing assets by current debt is negatively impacting return on assets and return on capital employed of firms from lower quantile whereas profitability is positively impacted if they are financed by long term debt. Debt financing of assets does not make any sense for firms with high quantile of profitability. The study also finds that quantile regression approach is a better method than panel OLS models in the presence of highly heterogeneous and non-normal distributions. Research limitations/implications This study is limited to the financial performance of manufacturing firms and does not consider service sector which is also equally competitive. However, a sector wise analysis of firm’s profitability could be more meaningful than comparing all the firms in one basket of manufacturing domain. Practical implications The research findings have both practical as well as policy implications. Practically, the study helps the firm managers to identify critical success factors that significantly influence firm’s financial performance at different levels of profitability. It also helps the policy makers to align policy focus to stabilize firms at lower level of profitability and also to manage conducive business environment for all firms at different levels of their profitability. Originality/value The study provides a deep theoretical underpinning of literatures on firm’s financial performance and empirically investigates it using advanced methodology. The robust estimates of the study ensure to analyze financial performance under revenue and cost channels at diverse level of their profitability.

What influences intention to purchase sustainable products? impact of advertising and materialism

2020 ◽  
Vol 69 (8) ◽  
pp. 1647-1669
Author(s):  
Anshul Mandliya ◽  
Vartika Varyani ◽  
Yusuf Hassan ◽  
Anuja Akhouri ◽  
Jatin Pandey
Keyword(s):  
Environmental Sustainability ◽  
Business Students ◽  
Moderated Mediation ◽  
Survey Method ◽  
Content Type ◽  
Environmentally Sustainable ◽  
Moderated Mediation Model ◽  
Sustainable Products ◽  
Intention To Purchase ◽  
The Relationship

PurposeThe purpose of the present study is to examine the relationship between Social and Environmental Accountability (SEA), Attitude towards Environmental Advertising (AEA), Materialism, and Intention to purchase Environmentally Sustainable Products (IPESP).Design/methodology/approachThe study sample consists of 205 business students from two B schools in India. Data was collected through the survey method, and the moderated-mediation model was statistically tested using SPSS Process Macro software.FindingsThe findings of the study suggest that the attitude towards social and environmental accountability (SEA) is positively associated with the intention to purchase environmentally sustainable products (IPESP). Moreover, this relationship is mediated and moderated by AEA and materialism, respectively.Practical implicationsThe findings of the study reveal that a consumer with low materialism and a positive attitude for both environmental sustainability and environmental advertising has higher chances of purchasing environmentally sustainable products.Originality/valueThis study contributes to the existing literature on sustainability by providing a basis for understanding the moderated-mediation mechanism, which affects the relationship between SEA and IPESP; two key variables that have not been examined in combination.

Optimization Methods for Lot-Sizing Problem in an Automated Foundry

2013 ◽  
Vol 58 (3) ◽  
pp. 863-866 ◽  
Author(s):  
J. Duda ◽  
A. Stawowy
Keyword(s):  
Production Planning ◽  
Lot Sizing ◽  
Planning Horizon ◽  
Optimization Methods ◽  
Mixed Integer ◽  
Planning Problem ◽  
Lot Size ◽  
Mip Model ◽  
Production Planning Problem ◽  
Problem Instances

Abstract In the paper we studied a production planning problem in a mid-size foundry that provides tailor-made cast products in small lots for a large number of clients. Assuming that a production bottleneck is the furnace, a mixed-integer programming (MIP) model is proposed to determine the lot size of the items and the required alloys to be produced during each period of the finite planning horizon that is subdivided into smaller periods. As using an advanced commercial MIP solvers may be impractical for more complex and large problem instances, we proposed and compared a few computational intelligence heuristics i.e. tabu search, genetic algorithm and differential evolution. The examination showed that heuristic approaches can provide a good compromise between speed and quality of solutions and can be used in real-world production planning.

scholarly journals Exploring logistics-related environmental sustainability in large retailers

2016 ◽  
Vol 44 (1) ◽  
pp. 38-57 ◽  
Author(s):  
Maria Björklund ◽  
Helena Forslund ◽  
Maria Persdotter Isaksson
Keyword(s):  
Environmental Sustainability ◽  
Environmental Indicators ◽  
Global Reporting Initiative ◽  
Classification Models ◽  
Content Type ◽  
Environmentally Sustainable ◽  
Sustainable Logistics ◽  
Indicator Framework ◽  
Environmental Considerations ◽  
Practical Implications

Purpose – The purpose of this paper is to explore and illustrate ways in which the world’s largest retailers describe their logistics-related environmental considerations, their environmental indicators applied to measure the effects of these considerations and their environmental consciousness in their CSR reports. Design/methodology/approach – Classification models are developed via a literature review on logistics-related environmental considerations, indicators and consciousness. A content analysis approach is then applied to examine CSR reports from 12 of the world’s largest retailers. Findings – Few retailers show environmental considerations in all logistics activities, but purchasing is especially well described. Even if many retailers claim to use the Global Reporting Initiative (GRI) framework, no one uses is completely. Judging consciousness from CSR reports raised a number of questions. Research limitations/implications – A contribution to theory is the development of two classification models. The first provides a description structure for environmental considerations related to logistics activities. The second expands the GRI indicator framework by incorporating a structure for logistics activities. Practical implications – The classification models developed can be an important mean for managers and also consumers to judge the environmental sustainability of retailers by their CSR reports. Social implications – The study makes a social contribution with its input on sustainability and especially environmental issues. Originality/value – Few studies have focused upon environmentally sustainable logistics in retail chains, and even fewer address how to measure environmental sustainability in this context.

Multi-period reverse logistics network design with emission cost

2017 ◽  
Vol 28 (1) ◽  
pp. 127-149 ◽  
Author(s):  
Sajan T. John ◽  
Rajagopalan Sridharan ◽  
P.N. Ram Kumar
Keyword(s):  
Mathematical Model ◽  
Network Design ◽  
Reverse Logistics ◽  
Planning Horizon ◽  
Mixed Integer ◽  
Single Type ◽  
Reverse Supply Chain ◽  
Design Decisions ◽  
Content Type ◽  
Total Cost

Purpose The purpose of this paper is to develop a mathematical model for the network design of a reverse supply chain in a multi-product, multi-period environment. The emission cost due to transportation activities is incorporated into the model to reduce the total cost of emission and study the significance of inclusion of emission cost on the network design decisions. Design/methodology/approach Mixed integer linear programming formulation is used to model the network. The developed model is solved and analysed using the commercial solver LINGO. Findings The mathematical model provides a unified design of the network for the entire planning horizon comprising of different periods. A reduction in the total cost of emission is achieved. The analysis of the problem environment shows that the network design decisions significantly vary with the consideration of emission cost. Research limitations/implications A single mode of transportation is considered in this study. Also, a single type of vehicle is considered for the transportation purpose. Practical implications The developed model can aid the decision makers in making better decisions while reducing the total emission cost. The quantification of the emission cost due to transportation activities is presented in an Indian context and can be used for future studies. Originality/value An all-encompassing approach for the design of reverse logistics networks with explicit consideration of product structure and emission cost.

Lean manufacturing practices in Indian manufacturing SMEs and their effect on sustainability performance

2017 ◽  
Vol 28 (6) ◽  
pp. 772-793 ◽  
Author(s):  
Sajan M.P. ◽  
Shalij P.R. ◽  
Ramesh A. ◽  
Biju Augustine P.
Keyword(s):  
Environmental Sustainability ◽  
Lean Manufacturing ◽  
Structural Equation ◽  
Large Scale ◽  
Business Environment ◽  
Equation Modeling ◽  
Cross Sectional Survey ◽  
Bottom Line ◽  
Content Type ◽  
Sustainability Performance

Purpose The relevance of small and medium enterprises (SMEs) in contributing to the economy and social development is increasingly felt in the current business environment. Focusing on sustainable development, SMEs have also implemented many acting strategies of large-scale enterprises such as lean and green practices. The purpose of this paper is to investigate the linkage between lean manufacturing practices (LMPs) in SMEs and their sustainability performances. Further, this study explores the relationship between the triple bottom line sustainability performances. Design/methodology/approach The study is based on a survey conducted and data collected from 252 manufacturing SMEs in India. The hypothesized relationships are then analyzed with structural equation modeling. Findings The outcome of the analysis shows that LMPs are positively associated with various sustainability performances categorized as economic, environmental, and social performances. Further, this study shows that environmental sustainability is correlated with economic and social sustainability performances. Research limitations/implications The study conducted was limited to a particular state in India. Moreover, the study uses the data from a cross-sectional survey from single respondents. Practical implications The findings of the study become an added advantage for the managers to convince their various stakeholders for implementing LMPs in SMEs. Originality/value The research findings provide theoretical and practical insights to derive the importance of LMPs in maximizing sustainability performances. It gives an enhanced perspective of the importance of LMPs on the sustainability performance of SMEs.

scholarly journals Optimizing Inventory Replenishment for Seasonal Demand with Discrete Delivery Times

2021 ◽  
Vol 11 (23) ◽  
pp. 11210
Author(s):  
Mohammed Alnahhal ◽  
Diane Ahrens ◽  
Bashir Salah
Keyword(s):  
Lot Sizing ◽  
Planning Horizon ◽  
Service Level ◽  
Mixed Integer ◽  
Lot Size ◽  
Dynamic Planning ◽  
Holding Costs ◽  
Delivery Times ◽  
Mip Model ◽  
Total Inventory

This study investigates replenishment planning in the case of discrete delivery time, where demand is seasonal. The study is motivated by a case study of a soft drinks company in Germany, where data concerning demand are obtained for a whole year. The investigation focused on one type of apple juice that experiences a peak in demand during the summer. The lot-sizing problem reduces the ordering and the total inventory holding costs using a mixed-integer programming (MIP) model. Both the lot size and cycle time are variable over the planning horizon. To obtain results faster, a dynamic programming (DP) model was developed, and run using R software. The model was run every week to update the plan according to the current inventory size. The DP model was run on a personal computer 35 times to represent dynamic planning. The CPU time was only a few seconds. Results showed that initial planning is difficult to follow, especially after week 30, and the service level was only 92%. Dynamic planning reached a higher service level of 100%. This study is the first to investigate discrete delivery times, opening the door for further investigations in the future in other industries.

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