scholarly journals A Novel Approach for Optimizing the Supply Chain: A Heuristic-Based Hybrid Algorithm

2020 ◽  
Vol 2020 ◽  
pp. 1-24
Author(s):  
Yasemin Kocaoglu ◽  
Emre Cakmak ◽  
Batuhan Kocaoglu ◽  
Alev Taskin Gumus
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Hybrid Algorithm ◽  
Minimum Cost ◽  
Computational Time ◽  
Strategy Selection ◽  
Distribution Strategy ◽  
Network Problem ◽  
Milk Run ◽  
Delivery Network

Managing the distribution of goods is a vital operation for many companies. A successful distribution system requires an effective distribution strategy selection and optimum route planning at the right time and minimum cost. Furthermore, customer’s demand and location can vary from order to order. In this situation, a mixed delivery system is a good solution for it and allows the use of different strategies together to decrease delivery costs. Although the “distribution strategy selection” is a critical issue for companies, there are only a few studies that focus on the mixed delivery network problem. There is a need to propose an efficient solution for the mixed delivery problem to guide researchers and practitioners. This paper develops a new “modified” savings-based genetic algorithm which is named “distribution strategy selection and vehicle routing hybrid algorithm (DSSVRHA).” Our new algorithm aims to contribute to the literature a new hybrid solution to solve a mixed delivery network problem that includes three delivery modes: “direct shipment,” “milk run,” and “cross-docking” efficiently. It decides the appropriate distribution strategy and also optimal routes using a heterogeneous fleet of vehicles at minimum cost. The results of the hybrid algorithm are compared with the results of the optimization model. And the performance of the hybrid algorithm is validated with statistical analysis. The computational results reveal that our developed algorithm provides a good solution for reducing the supply chain distribution costs and computational time.

A hybrid fix-and-optimize heuristic for integrated inventory-transportation problem in a multi-region multi-facility supply chain

2020 ◽  
Vol 54 (3) ◽  
pp. 749-782
Author(s):  
Ajinkya Tanksale ◽  
J.K. Jha
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Transportation Problem ◽  
Mixed Integer ◽  
Computational Time ◽  
Solution Approach ◽  
Mip Model ◽  
Integrated Inventory ◽  
Problem Instances ◽  
Decomposition Schemes

In this work, we study an integrated inventory-transportation problem in a supply chain consisting of region-bound warehouses located in different regions. The supply chain deals with multiple items that compete for storage space and transportation capacity with multi-modal transportation considering regional capacity constraint for each mode of transportation. The objective is to determine an optimal storage and transportation plan to satisfy the demand of all regions without shortages for known procurement plan for all items. The problem is formulated as a mixed integer programming (MIP) model for minimizing the total costs over a finite planning horizon. An MIP-based fix-and-optimize (F&O) heuristic with several decomposition schemes is proposed to solve the problem efficiently. The performance of the decomposition schemes is investigated against the structure of the sub-problems obtained. To enhance the performance, F&O is crossbred with two metaheuristics – genetic algorithm (GA) and iterated local search (ILS) separately, which lead to hybrid heuristic approach. Extensive numerical experiments are carried out to analyze the performance of the proposed solution methodology by randomly generating several problem instances built using data collected from the Indian Public Distribution System. The proposed solution approach is found to be computationally efficient and effective, and outperforming state of the art MIP solver Cplex for practical size problem instances. Also, the hybridization of F&O heuristic with GA and ILS boosts its performance although with a justified increase in the computational time.

Case Study: Maximizing Business Performance by Optimizing Supply Chain Of LNG-C Distribution of 9 Gas Power Plants with A Capacity of 780 MW in Eastern Indonesia

2020 ◽  
Author(s):  
A. D. Wara
Keyword(s):  
Supply Chain ◽  
Business Performance ◽  
Power Plants ◽  
Total Power ◽  
First Year ◽  
Eastern Region ◽  
Transport Costs ◽  
Logistics Optimization ◽  
The Government ◽  
Milk Run

The Government of Indonesia plans to build 9 gas power plants in South Kalimantan, South Sulawesi and Southeast Nusa Tenggara with a total power capacity of 780 MW with an estimated actual gas demand of 46.56 MMSCFD which are planned to be supplied by the Bontang terminal, DS-LNG, Masela LNG, and Tangguh LNG. LNG-C logistics optimization is needed to get the best transportation scenario regarding the eastern region which consists of scattered islands and inadequate infrastructure. This study analyzes and evaluates the best-case scenarios by comparing the time and cost variables. The process of planning the supply chain starts from determining the upstream-downstream distribution scheme and then calculates the shipping distance which results in the determination of the quantity, capacity and shipping of the LNG-C. Based on the analysis and calculation of the logistics, it is concluded that there are 3 divisions of clusters of Kalimantan-Sulawesi, NTT and NTB having estimated needs in a row of 18.06, 18.8, and 9.7 MMSCFD with the Milk-Run transportation method. Logistics optimization results show that scenario 1 has an efficiency value of 87% with an LNG-C transport capacity of 0.35 MMSCF, a roundtrip cruise time of 8.6 days and the number of shipments is 36 / year. The detailed analysis of costs in scenario A is 1-2 USD / MMBTU for the milk and run transportation method, 1.49-1.73 USD / MBTU for LNG-C transport costs, and regasification costs which are 1.0-3.7 USD / MMBTU. Based on the above results it can be calculated that the price of gas in the first year of implementation was 13.4 USD / MMBTU, so the total value below this supply chain was Rp.8,812,876,800.00. Therefore, this idea was created as a solution for the initial steps for the utilization of the domestic natural gas distribution

Enterprise Inventory Control Based on Supply Chain Management

2012 ◽  
Vol 472-475 ◽  
pp. 3273-3276
Author(s):  
Qing Ying Zhang ◽  
Ying Chi ◽  
Yu Liu ◽  
Qian Shi
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Inventory Control ◽  
Control Strategies ◽  
Minimum Cost ◽  
Chain Management ◽  
Main Target ◽  
The Cost

The main target of supply chain management is to control inventory of each node enterprise effectively with the minimum cost. In this paper, the control strategies and methods of inventory based on supply chain management are put forward, which are significant for saving the cost of supply chain and improving the overall benefits of the whole chain.

Decision Support System for Real Time Vehicle Routing in Indian Dairy Industry: A Case Study

2013 ◽  
Vol 6 (4) ◽  
pp. 77-101 ◽  
Author(s):  
R. A. Malairajan ◽  
K. Ganesh ◽  
M. Punnniyamoorthy ◽  
S. P. Anbuudayasankar
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Supply Chain Management ◽  
Decision Support System ◽  
Vehicle Routing ◽  
Support System ◽  
Distribution System ◽  
Physical Distribution ◽  
Chain Management ◽  
Distribution Logistics

In today’s highly competitive and demanding environment, the pressure on both public and private organizations is to achieve a better way to deliver values to end customers. There has been a growing recognition that the two goals, cost reduction and customer service are achieved through Logistics and Supply Chain Management (SCM). Transportation of goods continues an important part of in-bound as well as outbound logistics of Supply Chain Management (SCM). Efficient distribution of goods and services is of great importance in today’s competitive market, because transportation constitutes a considerable portion of the purchase price of most products or services. Vehicle routing is considered as an important resource in a distribution logistics management system. Effective plan and control of vehicle operation can significantly reduce the cost of physical distribution system. To overcome the challenges of changing environment, the scheme of vehicle control of a physical distribution system should be dynamic. Thus India has become the top milk producing country in the world. This study addresses the vehicle routing aspect of distribution logistics in Sangam dairy supply chain of Guntur district in Andhra Pradesh. The problem is viewed as Vehicle Routing Problem with Backhauls (VRPB) and a mathematical model is developed with the consideration of various practical constraints. Moreover, a decision support system is developed for dynamic VRPB, which would help the manager in making operational and tactical decisions.

scholarly journals Analisis Bullwhip Effect pada Rantai Supply dengan Model Q Menggunakan Pendekatan Hadley-Within di PT. XYZ Medan

2019 ◽  
Vol 2 (4) ◽  
Author(s):  
Martha Purnama Sari Panggabean ◽  
Dimas Akmarul Putera ◽  
Nursafwah
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Distribution System ◽  
Control Policy ◽  
Bullwhip Effect ◽  
Product Distribution ◽  
Soft Drinks ◽  
Inventory Cost ◽  
Inventory Control Policy ◽  
Q Model

PT. XYZ adalah perusahaan yang bergerak didalam pembuatan kemasan botol minum. Pendistribusian produk dilakukan PT XYZ menggunakan data historis berdasarkan jumlah permintaan pada tahun 2013 dan 2014. Data tersebut menunjukkan bahwa terjadinya perbedaan hasil. Tahun 2013 memiliki jumlah permintaan yang lebih rendah dari tahun 2014. Informasi terdapat bahwa perlu dilakukan pengevaluasian karena didalam rantai produksi terdapat bullwhip effect. Terdapat nilai bullwhip Effect menujukan bahwa nilai bullwhip effect untuk distributor Indomaret, Carrefour, dan rantai manufakturnya masing-masing sebesar 0,5303; 0,2967, dan 0,5114. Usulan perbaikan dapat diatasi yaitu dengan model Q yang berfungsi menggendalikan persediaan pada rantai pasok dengan metodeHadley-Within. Perhitungan pengendalian persediaan untuk distributor Indomaret, Carrefour, dan rantai manufakturnya masing-masing sebesar 1,0721; 1,100; dan 1,0714. Hasil dari perhitungan menujukan bahwa terjadi keseimbangan antara penjual dan pembeli sehingga biaya pun dapat dihematkan pada PT XYZ.   PT. XYZ Medan is manufacturing company that produce soft drinks of beverages in containers. In the product distribution system at PT. XYZ Medan, found that the number of orders based on the result of forecasting in 2013 lower than actual orders at distrbutor and manufacturer in 2014. Distorsion of information on this order can evaluate the indication of bullwhip effect in supply chain. Based on the result calculation of bullwhip effect, found that the value of bullwhip effect for Indomaret distributor, Carrefour, and supply chain of manufacturer each of 0,5303; 0,2967, and 0,5114. Proposed improvements to predominate bullwhip effect that is by doing inventory control policy with Q model using Hadley-Within approach. The value of bullwhip effect aftre doing inventory control policy for Indomaret distributor, Carrefour, and supply chain of manufacturer each of 1,0721; 1,100; dan 1,0714. The value of bullwhip effect which is close to one shows that the variance between the number of the order and the number of the demand nearly balanced so as to save the inventory cost at PT. XYZ Medan.

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