scholarly journals Integrating Mathematical and Simulation Approach for Optimizing Production and Distribution Planning With Lateral Transshipment in a Supply Chain

2022 ◽  
Vol 15 (1) ◽  
pp. 0-0
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Optimal Solution ◽  
Integrated Approach ◽  
Service Level ◽  
Computational Time ◽  
Customer Service Level ◽  
Simulation Based ◽  
Production And Distribution ◽  
Lateral Transshipment

Supply chain planning aims to maximize the chain's profit and find an effective way to integrate production and distribution. A mathematical and simulation-based optimizations are two common disciplines in which this study integrates both of them together to consolidate their advantages. A mathematical model is formulated to find an optimal production-distribution plan. Then, the result is fed into a simulation model operating under uncertainty to verify the feasibility of the plan. Our integrated approach tries to find a feasible plan that satisfies both required customer service level and makespan limitation where safety stock is used to hedge against uncertainties, and lateral transshipment is used for emergency measures against excessive fluctuation of customer demand. A case study that optimizes the profit of an entire chain is used to demonstrate the algorithm. The outcomes of the study show that our proposed approach can yield feasible results (with near or even optimal solution) with much faster computational time as compared to the traditional simulation-based optimization.

scholarly journals A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain

2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Inventory Management ◽  
Raw Materials ◽  
Integrated Approach ◽  
Service Level ◽  
Pharmaceutical Products ◽  
Management Problem ◽  
Pharmaceutical Supply Chain ◽  
Customer Service Level

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.

scholarly journals Risk Management in Supply Chain Management: Case Study of a Brazilian Automotive Distribution Process

2015 ◽  
Vol 7 (5) ◽  
pp. 109 ◽  
Author(s):  
Diego A Wolfs ◽  
Franco Takakura ◽  
Maysa Rezende ◽  
Mauro Vivaldini ◽  
Pedro Domingos Antoniolli
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Customer Service ◽  
Product Distribution ◽  
Service Level ◽  
Added Value ◽  
Chain Management ◽  
Customer Service Level ◽  
Distribution Process ◽  
Management Case Study

<p>Globalisation requires from companies greater flexibility and adaptability of its internal processes, to allow them be aligned to market requirements. This flexibility results in new forms of relationships between partners, supply chains. For these chains differentiate themselves from their competitors, they should add value to products and services that they deliver to the end customer, while being profitable from the standpoint of its processes and operations. In this sense, would be needed effective supply chain management, which is constituted by collaboration and cooperation among partners, strategic and processes integration, to result in a profitable operation, and products and services with added value to the customer. Additionally, because logistics is a key element for the integration and collaboration among SC members, and due the fact that, depending of the scope of these chains, there are potentially more risks happening, which may have negative impacts on the customer service level, and consequently, loss of effectiveness of their logistics processes. This study aims to analyze the risks in a product distribution process in the Brazilian automotive sector, considering the operations performed by a logistics operator of this automaker.</p><strong>Keywords: </strong>Automotive Industry; Logistics Operator; Supply Chain; Supply Chain Management; Risks Management.

scholarly journals Dynamic Complexities in a Supply Chain System with Lateral Transshipments

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Yongchang Wei ◽  
Fangyu Chen ◽  
Feng Xiong
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
State Space Model ◽  
Bullwhip Effect ◽  
Performance Measurements ◽  
Supply Chain System ◽  
Chain System ◽  
Customer Service Level ◽  
Lateral Transshipment ◽  
The Stability

The horizontal interaction between retailers, coupled with replenishment rules and time delays, makes the dynamics in supply chain systems highly complicated. This paper aims to explore the impacts of lateral transshipments on the stability, bullwhip effect, and other performance measurements in the context of a two-tiered supply chain system composed of one supplier and two retailers. In particular, we developed a unified discrete-time state space model to address two different scenarios of placing orders. Analytical stability results are derived, through which we found that inappropriate lateral transshipment policies readily destabilize the supply chain system. Moreover, the lead time of lateral transshipments further complicates the stability problem. Theoretical results are validated through simulation experiments and the influences of system parameters on performance measures are investigated numerically. Numerical simulations show that lateral transshipments help improve the customer service level for both retailers. It is also interesting to observe that the demand of the two retailers can be satisfied even if only one retailer places orders from the upstream supplier.

scholarly journals A Multiobjective Fuzzy Aggregate Production Planning Model Considering Real Capacity and Quality of Products

2014 ◽  
Vol 2014 ◽  
pp. 1-15 ◽  
Author(s):  
Najmeh Madadi ◽  
Kuan Yew Wong
Keyword(s):  
Production Planning ◽  
Customer Service ◽  
Optimal Solution ◽  
Service Level ◽  
Aggregate Production Planning ◽  
Production Lines ◽  
Aggregate Production ◽  
Customer Service Level ◽  
Quality Of Products ◽  
Parts Manufacturing

In this study, an attempt has been made to develop a multiobjective fuzzy aggregate production planning (APP) model that best serves those companies whose aim is to have the best utilization of their resources in an uncertain environment while trying to keep an acceptable degree of quality and customer service level simultaneously. In addition, the study takes into account the performance and availability of production lines. To provide the optimal solution to the proposed model, first it was converted to an equivalent crisp multiobjective model and then goal programming was applied to the converted model. At the final step, the IBM ILOG CPLEX Optimization Studio software was used to obtain the final result based on the data collected from an automotive parts manufacturing company. The comparison of results obtained from solving the model with and without considering the performance and availability of production lines, revealed the significant importance of these two factors in developing a real and practical aggregate production plan.

scholarly journals An Agent-Based Model Driven Decision Support System for Reactive Aggregate Production Scheduling in the Green Coffee Supply Chain

2019 ◽  
Vol 9 (22) ◽  
pp. 4903
Author(s):  
María Pérez-Salazar ◽  
Alberto Aguilar-Lasserre ◽  
Miguel Cedillo-Campos ◽  
Rubén Posada-Gómez ◽  
Marco del Moral-Argumedo ◽  
...  
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Customer Service ◽  
Service Level ◽  
Production Plan ◽  
Agent Based ◽  
Model Driven ◽  
Demand Pattern ◽  
Customer Service Level ◽  
Demand Patterns

The aim of this paper is to contribute to the thread of research regarding the need for logistic systems for planning and scheduling/rescheduling within the agro-industry. To this end, an agent-based model driven decision support system for the agri-food supply chain is presented. Inputs in this research are taken from a case example of a Mexican green coffee supply chain. In this context, the decision support agent serves the purposes of deriving useful knowledge to accomplish (i) the decision regarding the estimation of Cherry coffee yield obtained at the coffee plantation, and the Parchment coffee sample verification decision, using fuzzy logic involving an inference engine with IF-THEN type rules; (ii) the production plan establishment decision, using a decision-making rule approach based upon the coupling of IF-THEN fuzzy inference rules and equation-based representation by means of mixed integer programming with the aim to maximize customer service level; and (iii) the production plan update decision using mathematical equations once the customer service level falls below the expected level. Three scenarios of demand patterns were considered to conduct the experiments: increasing, unimodal and decreasing. We found that the input inventory and output inventory vary similar over time for the unimodal demand pattern, not the case for both the increasing and decreasing demand patterns. For the decreasing demand pattern, ten tardy orders for the initial production schedule, an 88% service level, and nineteen tardy orders from the estimated production results, a 77% service level. This value falls below the expected level. Consequently, the updated aggregate production schedule resulted in ten tardy orders and an 88% service level.

Optimizing Service Parts Inventory in a Multiechelon, Multi-Item Supply Chain with Time-Based Customer Service-Level Agreements

2007 ◽  
Vol 55 (2) ◽  
pp. 303-318 ◽  
Author(s):  
Kathryn E. Caggiano ◽  
Peter L. Jackson ◽  
John A. Muckstadt ◽  
James A. Rappold
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Service Level ◽  
Service Level Agreements ◽  
Service Parts ◽  
Customer Service Level

scholarly journals Simulation-Based Assessment of Parking Constraints for Automated Mobility on Demand: A Case Study of Zurich

Vehicles ◽  
2021 ◽  
Vol 3 (2) ◽  
pp. 272-286
Author(s):  
Claudio Ruch ◽  
Roman Ehrler ◽  
Sebastian Hörl ◽  
Milos Balac ◽  
Emilio Frazzoli
Keyword(s):  
Customer Service ◽  
Waiting Times ◽  
Service Level ◽  
Demand System ◽  
Future Research ◽  
Parking Space ◽  
On Demand ◽  
System A ◽  
Customer Service Level ◽  
Simulation Based

In a coordinated mobility-on-demand system, a fleet of vehicles is controlled by a central unit and serves transportation requests in an on-demand fashion. An emerging field of research aims at finding the best way to operate these systems given certain targets, e.g., customer service level or the minimization of fleet distance. In this work, we introduce a new element of fleet operation: the assignment of idle vehicles to a limited set of parking spots. We present two different parking operating policies governing this process and then evaluate them individually and together on different parking space distributions. We show that even for a highly restricted number of available parking spaces, the system can perform quite well, even though the total fleet distance is increased by 20% and waiting time by 10%. With only one parking space available per vehicle, the waiting times can be reduced by 30% with 20% increase in total fleet distance. Our findings suggest that increasing the parking capacity beyond one parking space per vehicle does not bring additional benefits. Finally, we also highlight possible directions for future research such as to find the best distribution of parking spaces for a given mobility-on-demand system and city.

scholarly journals Socially concerned periodic review replenishment system with customer service level and supply chain contracting

2021 ◽  
Author(s):  
Maryam Johari ◽  
Seyyed-Mahdi Hosseini-Motlagh ◽  
Mohammadreza Nematollahi ◽  
Mark Goh ◽  
Joshua Ignatius
Keyword(s):  
Supply Chain ◽  
Social Responsibility ◽  
Customer Service ◽  
Demand Uncertainty ◽  
Service Level ◽  
Benefit Sharing ◽  
Periodic Review ◽  
Customer Service Level ◽  
Sharing Strategy ◽  
Supply Chain Contracting

This study contributes to the periodic review inventory system literature by: (1) investigating customer service level (CSL) as a social responsibility in pharmaceutical supply chains (PSCs) and (2) proposing supply chain contracting to achieve win-win coordination and guarantee a satisfied CSL. Specifically, considering the demand uncertainty as one of the main challenges faced by pharmacies, we analyze how applying contracts to coordinate the inventory policy of a pharmacy with that of its supplier can affect their profits and the CSL offered to society. Having shown the advantages of the centralization compared to the decentralization, we design a coordination scheme based on the quantity discount contract to encourage the players move towards centralization. Under the proposed scheme, we first obtain the minimum and maximum acceptable amounts of discount from each actor’s viewpoint. Then, we propose a benefit-sharing strategy in order to make the plan interesting to both sides. The proposed discount contract and benefit-sharing strategy distribute the extra profits equitably between the two participants according to their bargaining power, which can make a win-win condition for two actors. Our results suggest that coordinating review period and order-up-to-level of the retailer and replenishment multiplier of the supplier will be of benefit in terms of both economic profitability and social responsibility.

Modeling Accuracy of Promised Ship Date and IT Costs in a Supply Chain

2010 ◽  
pp. 1-15
Author(s):  
Young M. Lee
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Service Level ◽  
Business Environment ◽  
Management Process ◽  
Refresh Rate ◽  
It Systems ◽  
Availability Management ◽  
Customer Service Level ◽  
Modeling Accuracy

In the current dynamic, competitive business environment, customers expect to see products they purchase to be shipped on the date it is promised. However, accurate calculation of promised ship date by suppliers can only be obtained at expense of corporate IT systems that provide accurate availability data. Our study indicates that refresh frequency of availability data in IT system substantially impacts accuracy of the ship date that is promised to customer. The value of customer service level corresponding to accuracy of promised ship date needs to be estimated against the costs of having necessary IT system. The estimation requires a simulation model of availability management process. In this paper, we describe how to model and simulate the availability management process, and quantify the customer service level resulting from various availability refresh rate.

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