scholarly journals Impact of Variable Deterioration Rate of Perishable Food Items on Multi-Echelon Distribution Chains

2021 ◽  
Vol 11 (1) ◽  
pp. 189-194
Author(s):  
Dileep M V ◽  
◽  
Dr. Regi Kumar V ◽  
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Inventory Control ◽  
Transportation Cost ◽  
Optimization Methods ◽  
Service Level ◽  
Vital Role ◽  
Supply Chain Optimization ◽  
Deterioration Rate ◽  
Study Results

Customer satisfaction is the backbone of any business entity and supply chain optimization plays a vital role in customer satisfaction efforts. Supply chain inventory control is one of the scientific supply chain optimization methods for determining proper inventory levels at different stages or echelons of the supply chain to meet the requirements of the customers. The intention is to supply right type of material at exact time in appropriate quantities and at competitive rates. Supply chain inventory costs consist of costs to store, track and insure materials. Inventories that mishandled create substantial financial problems for a business, whether the mismanagement results in an inventory accumulation or an inventory shortage. Therefore, an examination of the right quantities to be kept in stock to meet the requirements, the strategic location, storage facilities and recordings of the goods or items should be done systematically such that the desired degree of service can be provided at competitive prices or at minimum ultimate cost. Major objective of inventory control in a multi echelon supply chain is to optimize inventory cost elements like transportation cost, carrying cost, holding cost and all other inventory related costs at all supply chain stages with an elevated service level at the end customer point. The supply chain inventory control becomes tough when the handling material is a perishable one as its deterioration rate is variable rather than constant. This article provides the study results of the deterioration rate of a perishable edible inventory at different selected environmental conditions. The focus of this article is to introduce a mathematical equation for the deterioration rate of the selected perishable inventory which is inevitable for the formulation of inventory models for its supply chain echelons.

scholarly journals Development of Marketing and Distribution Channel to Ensure Fair Price in Bangladesh

2019 ◽  
Vol 6 (6) ◽  
Author(s):  
Md. Anowarul Arif Khan ◽  
Mohammad Hafizul Haider ◽  
Md Sahariar Hasan ◽  
Md. Parvez Hasan ◽  
Md. Ashraful Islam
Keyword(s):  
Supply Chain ◽  
Sampling Method ◽  
Distribution Channel ◽  
Transportation Cost ◽  
Vital Role ◽  
Local Market ◽  
Fair Price ◽  
Agricultural Producers ◽  
Cooperative Society

Bangladesh is a developing country and agriculture is the largest sector of the economy. Agricultural producers, food producers, and handicrafts producers are not getting the proper price. Because, Bangladesh fully depends on the intermediaries because of improper infrastructure in supply chain of their product and shortage of capital as well literacy. A baseline study entitled “Development of marketing and distribution channel to ensure fair price for the products of Cooperative Societies under Department of Cooperatives” was conducted primarily to find out the present scenario of producing, selling, and supply chain of products of producers under cooperative society which would examine the challenges in productions, selling and supply chain for the producers of cooperative society, also analyze Time, Cost and Visit (TCV) regarding selling of produced goods and finally to find a way to mitigate these challenges. In this study, purposive sampling method was used for determining the sample where more than 160 respondents were selected as sample size. 34% people had to give commission to the whole seller and there was higher transportation cost. 34% of producers said that they sold their products at lower price; some people (40%) got their products price lately. There was also money collection problem (33%). Most of the farmers were illiterate and for that reason, they did not have the ability to sell their products in the international market and also nationwide, they just only sold to local market. Ministry of local Government & Cooperative Society could play a vital role to bring formation within the framework of Cooperative Society and could minimize the role of middlemen of marketing agricultural products of Bangladesh.

A neoteric approach to geometric shipment policy in an integrated supply chain with setup cost reduction and freight cost using service level constraint

2020 ◽  
Vol 54 (3) ◽  
pp. 653-673
Author(s):  
Selvaraj Hemapriya ◽  
Ramasamy Uthayakumar
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Transportation Cost ◽  
Service Level ◽  
Setup Cost ◽  
Transportation Modes ◽  
Controllable Lead Time ◽  
Integrated Supply Chain ◽  
The Impact ◽  
Setup Cost Reduction

This paper explores a neoteric approach to geometric shipment policy and concerns the impact of controllable lead time, setup cost reduction, lost sales caused by stock-out and freight cost within an integrated vendor–buyer supply chain configuration using service-level constraint. In particular, the transportation cost is a function of shipping weight, distance and transportation modes. In other words, truckload (TL) and less-than-truckload (LTL) shipments. A heuristic model is developed to minimize the joint expected total cost (JETC), when the mode of transportation is limited to TL and LTL shipments. Numerical examples including the sensitivity analysis with some managerial insights of system parameters is implemented to endorse the outcome of the supply chain models.

scholarly journals Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains

2021 ◽  
Vol 13 (11) ◽  
pp. 6309
Author(s):  
Yingying Zhang ◽  
Yi Chai ◽  
Le Ma
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Inventory Management ◽  
Fitness Function ◽  
Optimal Solution ◽  
Control Model ◽  
Practical Significance ◽  
Deterioration Rate ◽  
Inventory Control Model ◽  
Fresh Products

Fresh products are perishable and fragile, which easily leads to higher inventory costs and requires reasonable planning of inventory management. Therefore, it is very important for fresh product supply chain systems to have multi-echelon inventory control. However, in past studies, few control models of the multi-echelon inventory considered the deterioration rate of perishable products as the variable factor. In this paper, on the basis of considering the perishable characteristics of fresh products, combining the deterioration rate with the inventory control model, a multi-echelon inventory control model for fresh products is designed and optimized, and the optimal solution from the whole supply chain is obtained through the optimal fitness function by genetic algorithm. Finally, Flexsim is used to simulate the two inventory strategies before and after optimization. After simulation comparison and analysis, it is verified that the optimized inventory control strategy has lower costs. The research results can help supply chain managers of fresh products to make inventory management decisions and save costs, which is of practical significance.

Research on Multilevel Inventory Control of FMCG Industry Based on System Dynamics

2012 ◽  
Vol 157-158 ◽  
pp. 1212-1219
Author(s):  
Bin Yang ◽  
Shu Qin Li ◽  
Chao Zhang
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Inventory Control ◽  
Inventory Management ◽  
Dynamic Models ◽  
Service Level ◽  
System Dynamic ◽  
Good Prospect ◽  
Control Loop ◽  
Model And Simulation

In this paper, the method of system dynamics is applied for the supply chain inventory management in FMCG industry. Based on the analysis of three-level supply chain inventory control loop, this paper establishes system dynamic models related profits and the service level of 2&3-level supply chain. After testing the validity of the model, the writer does some simulation through the system dynamics software Vensim．In addition, the model and simulation described in the paper are highly understandable and practicable, and thus have a very good prospect of application.

scholarly journals The impact of inventory holding costs on the strategic design of supply chains

2020 ◽  
Author(s):  
Liliana Bolaños-Zúñiga ◽  
Carlos Julio Vidal-Holguin
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Inventory Control ◽  
Potential Functions ◽  
Supply Chain Optimization ◽  
Holding Costs ◽  
Inventory Costs ◽  
Strategic Design ◽  
Supply Chain Configuration ◽  
Inventory Holding

The explicit consideration of inventory holding costs for the strategic design of supply chains has not been sufficiently addressed in scientific literature. A possible cause is that usually supply chain optimization models are deterministic and linear or mixed-integer linear, while forecasting methods and inventory control systems are stochastic and non-linear. It is clear, however, that inventory costs might have a significant impact on optimal supply chain configuration and on distribution systems expansion or contraction. This article presents a practical strategy that considers an item-by-item inventory control system by means of a Monte Carlo simulation model as a starting point to include inventory holding costs in a supply chain optimization model. Three strategies to include inventory costs in the objective function were analyzed: The Square Root Law (SRL), the potential functions that relate average inventory with warehouse throughput, and the estimation of average inventories by simulation. The results suggest that the SRL should not be used unless unusual assumptions hold and that potential functions are a very good approximation to consider inventory costs for supply chain configuration.

Centralized supply chain – Food Lord

2019 ◽  
Vol 9 (2) ◽  
pp. 1-19
Author(s):  
Abdul Rehman Shaikh ◽  
Asad Ali Qazi
Keyword(s):  
Supply Chain ◽  
Learning Outcomes ◽  
Minimum Cost ◽  
Service Level ◽  
Vital Role ◽  
Content Type ◽  
Decentralized Supply Chain ◽  
Academic Level ◽  
Cost And Benefit Analysis ◽  
The Impact

Learning outcomes The learning outcomes are as follows: to understand the impact of external factors in supply chain operations planning; to understand the role of quantitative and qualitative data in supply chain decision-making especially in the restaurant industry; to assess the pros and cons of centralized and decentralized supply chain operations; and to evaluate different alternatives in supply chain planning, for best service level at minimum cost. Case overview/synopsis This case visualizes the planning of supply chain drivers and process improvement to enhance supply chain speed and flexibility. Asim Rizvi has recently joined as senior supply chain manager at Food Lord, a renowned chain of restaurants in Pakistan. As instructed by his CEO, Rizvi has to take a decision for centralization, or to continue the decentralization of supply chain operations at two of their highest selling branches. These two branches were located at a distance of 125 km from each other. The objective of supply chain operations’ consolidation was to minimize cost and further improve the service level. Rizvi was confused about the decision because any decision cannot be taken on the basis of cost and benefit analysis only. A 360-degree analysis and future requirements also play a vital role to decide about supply chain operations. The CEO was very excited to take this decision; that is why newly hired manager Rizvi was analyzing all the facts to reach a decision that would be best for their business. Centralized or decentralized supply chain decision was not easy because normally the business dynamics completely change due to unpredictable customer demand, unavailability of professional suppliers and unavailability of a strong information system, etc. Complexity academic level BBA and MBA Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 9: Operations and Logistics.

scholarly journals Supply Chain Optimization Considering Sustainability Aspects

2021 ◽  
Vol 13 (21) ◽  
pp. 11873
Author(s):  
Mohammad Ali Beheshtinia ◽  
Parisa Feizollahy ◽  
Masood Fathi
Keyword(s):  
Supply Chain ◽  
Real Life ◽  
Transportation Cost ◽  
Mixed Integer ◽  
Test Problems ◽  
Improved Genetic Algorithm ◽  
Supply Chain Optimization ◽  
Environmental Aspect ◽  
Use Of Resources ◽  
Milp Model

Supply chain optimization concerns the improvement of the performance and efficiency of the manufacturing and distribution supply chain by making the best use of resources. In the context of supply chain optimization, scheduling has always been a challenging task for experts, especially when considering a distributed manufacturing system (DMS). The present study aims to tackle the supply chain scheduling problem in a DMS while considering two essential sustainability aspects, namely environmental and economic. The economic aspect is addressed by optimizing the total delivery time of order, transportation cost, and production cost while optimizing environmental pollution and the quality of products contribute to the environmental aspect. To cope with the problem, it is mathematically formulated as a mixed-integer linear programming (MILP) model. Due to the complexity of the problem, an improved genetic algorithm (GA) named GA-TOPKOR is proposed. The algorithm is a combination of GA and TOPKOR, which is one of the multi-criteria decision-making techniques. To assess the efficiency of GA-TOPKOR, it is applied to a real-life case study and a set of test problems. The solutions obtained by the algorithm are compared against the traditional GA and the optimum solutions obtained from the MILP model. The results of comparisons collectively show the efficiency of the GA-TOPKOR. Analysis of results also revealed that using the TOPKOR technique in the selection operator of GA significantly improves its performance.

scholarly journals STRATEGIC APPROACH TO SUPPLY CHAIN MANAGEMENT IN LOGISTICS

10.26458/1626 ◽  
2016 ◽  
Vol 16 (2) ◽  
pp. 81
Author(s):  
Sebastian CHIRIMBU ◽  
Alexandru BURDA
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Customer Satisfaction ◽  
Service Level ◽  
Level Of Service ◽  
Chain Management ◽  
Time Value ◽  
Strategic Approach ◽  
Optimal Service ◽  
Customer Services

According to its mission, the fundamental purpose of logistics is to contribute to the achievement of customer services in terms of efficiency. Company's performance in the supply chain is given by the delivery service. It must be established from the way the company responds to every order received from the customer as a result of implementing a strategy consisting of a series of specific decisions. A higher level of service requires those decisions to permit the firm to meet an optimal service level and a complete customer satisfaction in terms of price, time value of the invoice, goods arrived safely at their destination. The level at which an order is satisfied is a measure of the performance of the supply chain of the company and of the strategy applied by the company for its management.

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