scholarly journals Vendor Managed Inventory for Multi-Vendor Single-Manufacturer Supply Chain: A Case Study of Instant Noodle Industry

2020 ◽  
Vol 24 (6) ◽  
pp. 91-107
Author(s):  
Huynh Tan Phong ◽  
Pisal Yenradee
Keyword(s):  
Supply Chain ◽  
Raw Materials ◽  
Transportation Cost ◽  
Inventory Level ◽  
Vendor Managed Inventory ◽  
Penalty Cost ◽  
Proposed Model ◽  
High Level ◽  
Instant Noodle

This paper develops a vendor-managed inventory (VMI) model for a multiple-vendor, single-manufacturer supply chain, in which the first stage members can be traders and/or producers and the second stage member is a manufacturer. The model utilizes a realistic transportation cost which is dependent on the sizes (small- or medium-sized) of trucks. It can determine suitable sizes and numbers of trucks that minimize the transportation cost. A genetic algorithm (GA) technique, implemented in MATLAB software, is used to determine the best solution to the problem. A case study in the instant noodle industry is conducted to demonstrate the usefulness of the proposed model. Based on the experimental results, the VMI model has reasonable behaviors using sensitivity analysis. To reduce the inventory level of raw materials, the penalty cost may be set at a relatively high level or the upper inventory limits may be set at relatively low levels, without significantly affecting the average total cost per period of the entire supply chain. When the vendors are allowed to make decision independently, the solution is still the same as the solution from the proposed VMI model, which means that the manufacture does not take advantage of the vendors.

scholarly journals Methodology for Supply Chain Integration: A Case Study in the Artisan Industry of Footwear

2014 ◽  
Vol 2014 ◽  
pp. 1-15 ◽  
Author(s):  
Jorge Raúl Pérez-Gallardo ◽  
Beatriz Hernández-Vera ◽  
Constantino Gerardo Moras Sánchez ◽  
Alberto Alfonso Aguilar Lasserre ◽  
Rubén Posada-Gómez ◽  
...  
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Raw Materials ◽  
Demand Forecasting ◽  
Global Market ◽  
Supply Chain Integration ◽  
Delivery Time ◽  
Efficient Calculation ◽  
High Level

The supply chain is a major issue in a global market. The efficient relationship between supplier-producer-retailer conforms the perfect combination to achieve a high level of competitiveness according to the needs of increasingly demanding and changing markets. The difficulty of synchronizing the members within the SC is related to the inherent uncertain factors. This paper proposes a methodology for integrating the supply chain that can be applied in any type of business. To demonstrate its relevance, a case study is performed at a handmade shoe company. An improved demand forecasting, an optimal balanced production line, a proper inventory management of raw materials, and an efficient calculation of the delivery time to the customer represent some of the main results.

A practical supply-demand hub in industrial clusters: a new perspective

2019 ◽  
Vol 42 (1) ◽  
pp. 68-101 ◽  
Author(s):  
Vahid Kayvanfar ◽  
S.M. Moattar Husseini ◽  
Zhang NengSheng ◽  
Behrooz Karimi ◽  
Mohsen S. Sajadieh
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Raw Materials ◽  
Industrial Clusters ◽  
Computational Time ◽  
Heuristic Procedure ◽  
Content Type ◽  
Proposed Model ◽  
Practical Implications

PurposeThis paper aims to optimize the interactions of businesses located within industrial clusters (ICs) by using a supply-demand hub in ICs (SDHIC) as a conjoint provider of logistics and depository facilities for small- and medium-sized enterprises (SMEs) as producers, where all of these interactions are under supervision of a third-party logistics provider (3PL).Design/methodology/approachTo evaluate the values of SDHIC, three mathematical models are proposed, optimally solved via GAMS and then compared. Also, a “linear relaxation-based heuristic” procedure is proposed to yield a feasible initial solution within a significant shorter computational time. To illustrate the values of SDHIC, comprehensive calculations over a case study and generated sets of instances are conducted, including several sensitivity analysis.FindingsThe experimental results demonstrate the efficiency of SDHIC for SMEs via combining batches and integrating the holding space of inventories, while the outcomes of the case study are aligned with those obtained from random sample examples, which confirms the trueness of used parameters and reveals the applicability of using SDHIC in real world. Finally, several interesting managerial implications for practitioners are extracted and presented.Practical implicationsSome of the managerial and practical implications are optimizing interactions of businesses involved in a supply chain of an IC containing some customers, suppliers and manufacturers and rectifying the present noteworthy gaps pertaining to the previously published research via using real assumptions and merging upstream and downstream of the supply chain through centralizing on storage of raw materials (supply echelon) and finished products (demand echelon) at the same place simultaneously to challenge a classic concept in which supply and demand echelons were being separately planned regarding their inventory management and logistics activities and showing the positive consequences of such challenge, showing the performance improvement of the proposed model compared to the classic model, by increasing the storing cost of raw materials and finished products, considering some disadvantages of using SDHIC and showing the usefulness of SDHIC in total, presenting some applied findings according to the obtained results of sensitivity analysis.Originality/valueThe key contributions of this paper to the literature are suggesting a new applied mathematical methodology to the supply chain (SC) of ICs by means of a conjoint provider of warehousing activities called SDHIC, comparing the new proposed model with the two classic ones and showing the proposed model’s dominancy, showing the helpful outcomes of collaborating 3PL with the SMEs in a cluster, proposing a “linear relaxation-based heuristic” procedure to yield a feasible initial solution within a significant shorter computational time and minimizing total supply chain costs of such IC by optimum application of facilities, lands and labor.

scholarly journals Az alapanyagkészlet csökkentésére irányuló folyamatok bemutatása az ellátási láncban

2017 ◽  
Vol 16 (4) ◽  
pp. 61
Author(s):  
Judit Dr. Oláh ◽  
Péter Balogh ◽  
Zoltán Lakner ◽  
József Popp
Keyword(s):  
Raw Materials ◽  
Cost Effective ◽  
Future Application ◽  
Inventory Level ◽  
Vendor Managed Inventory ◽  
The North ◽  
Role Of Information ◽  
Minimize Costs

Minden termelő szervezet törekszik arra, hogy folyamatait minél gazdaságosabb módon végezze a kiadások csökkentése és a profit maximalizálása érdekében. Az egyik fő irány a kiadások csökkentése céljából a készletérték minél alacsonyabb szinten tartása. Ennek eléréséhez több folyamatot is működtet a vizsgált vállalat, nevezetesen az úgynevezett beszállítók által vezérelt raktárkészlet ellenőrzési folyamatot (Vendor Managed Inventory –VMI), amikor a beszállító kezeli a vállalat készleteit és a konszignációs eljárást, ahol a beszállító kihelyezi a gyár területére a készletet. Ennek a két eljárásnak a bemutatása és elemzése a kutatásunk célja. Arra a kérdésre keresünk választ, hogy ezek alkalmazásával valóban csökken-e a készletben lekötött tőke a vizsgált vállalat számára, és ha igen, akkor milyen mértékben? További kérdés, hogy elégséges-e a készletben lekötött tőkecsökkentés szintje ahhoz, hogy ezeket a jövőben is alkalmazzák vagy újra bevezessék? A kutatást esettanulmány jelleggel valósítottuk meg az Észak-alföldi régióban található termelő vállalatnál figyelembe véve az információs technológiai rendszerek szerepét. --- Processes to Minimize Raw Materials Inventory Level in the Supply Chain Producers are eager to implement their processes more effectively in order to minimize costs and to maximize profit. The primary purpose is to keep inventory value at the lowest possible rate to minimize costs. To this end, the investigated organization operates several processes. One of them is the so-called Vendor Managed Inventory (VMI), in which the supplier manages the inventory of the customer and the second is the consignment inventory processing, in which suppliers store goods at the customer location. The principal goal of this paper is to examine whether the application of these methods may result in cost-effective savings for the examined organization and if yes, to what extent. Is the level of cost saving sufficient to enable future application or re-introduction? Research was carried out within the framework of a case study at a producing organization in the North-Great Plain Region taking into consideration the role of information technology systems.

scholarly journals Satchain: Secured Autonomous Transactions in Supply Chain using Block Chain

2020 ◽  
Vol 9 (4) ◽  
pp. 1661-1669
Keyword(s):  
Supply Chain ◽  
Textile Industry ◽  
Business Models ◽  
Raw Materials ◽  
Operating Mode ◽  
Proposed Model ◽  
Wide Range ◽  
Block Chain ◽  
Non Destructive

With the increasing of digitization and massive adoption of advanced technologies in the various industries such as automotive, food, electronic goods etc. not only transform the equipment manufacturer’s operating mode, but also changing the business models. In particular textile industry, the raw materials are collected from different other industries, end products are manufactured, distributed and sold globally. Supply chain and logistics, in particular, are considered as fertile ground for a blockchain implementation due to the several parties involved in the logistic processes and the lack of trust that usually characterize the industry. In this paper, we addressed the automatic textile industry supply chain as case study, in which we present a non – destructive way of ensuring the traceability of different operational modes of supply chain. We have implemented automatic block chain-based framework, which helps track and trace every mode of operation in supply chain. The proposed framework is simulated in Ethereum platform and the result shows the proof – of – concept of proposed model that can be used for wide range of future smart applications.

scholarly journals A Case Study of Supply Chain Management in a Manufacturing Company in China

2018 ◽  
Vol 6 (1) ◽  
pp. 1-20
Author(s):  
Renfei Luo ◽  
Jiedan Huang ◽  
Jimmy Lee ◽  
Philip Pun
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Production Efficiency ◽  
Raw Materials ◽  
Inventory Level ◽  
Manufacturing Companies ◽  
Key Factors ◽  
Chain Management ◽  
Optimal Ordering

Abstract How to manage inventory is becoming an increasingly crucial issue for most manufacturing companies. R&D, the pseudonymous case study considered here, is a foreign direct investment (FDI) company engaged in producing electronic components. As the prices of raw materials and operation costs increased, R&D was challenged to maintain a smooth relationship among several factors: level of inventory, customer satisfaction and production efficiency. This paper first discusses the key factors that affect R&D’s inventory level. It then combines recent supply chain management theories and quantitative data into a framework for identifying how R&D might determine optimal ordering policies and strategies to reduce overall costs, while at the same time satisfying customers in terms of service.

Measuring Performance of a Three-Stage Network Structure Using Data Envelopment Analysis and Nash Bargaining Game: A Supply Chain Application

2018 ◽  
Vol 17 (05) ◽  
pp. 1429-1467 ◽  
Author(s):  
Mohammad Amirkhan ◽  
Hosein Didehkhani ◽  
Kaveh Khalili-Damghani ◽  
Ashkan Hafezalkotob
Keyword(s):  
Supply Chain ◽  
Data Envelopment Analysis ◽  
Nash Bargaining ◽  
Data Envelopment ◽  
Second Stage ◽  
Proposed Model ◽  
Nash Bargaining Game ◽  
Dea Models ◽  
Overall Efficiency

The issue of efficiency analysis of network and multi-stage systems, as one of the most interesting fields in data envelopment analysis (DEA), has attracted much attention in recent years. A pure serial three-stage (PSTS) process is a specific kind of network in which all the outputs of the first stage are used as the only inputs in the second stage and in addition, all the outputs of the second stage are applied as the only inputs in the third stage. In this paper, a new three-stage DEA model is developed using the concept of three-player Nash bargaining game for PSTS processes. In this model, all of the stages cooperate together to improve the overall efficiency of main decision-making unit (DMU). In contrast to the centralized DEA models, the proposed model of this study provides a unique and fair decomposition of the overall efficiency among all three stages and eliminates probable confusion of centralized models for decomposing the overall efficiency score. Some theoretical aspects of proposed model, including convexity and compactness of feasible region, are discussed. Since the proposed bargaining model is a nonlinear mathematical programming, a heuristic linearization approach is also provided. A numerical example and a real-life case study in supply chain are provided to check the efficacy and applicability of the proposed model. The results of proposed model on both numerical example and real case study are compared with those of existing centralized DEA models in the literature. The comparison reveals the efficacy and suitability of proposed model while the pitfalls of centralized DEA model are also resolved. A comprehensive sensitivity analysis is also conducted on the breakdown point associated with each stage.

Wills Lifestyle in India

2017 ◽  
pp. 1-16
Author(s):  
Sunil Chopra
Keyword(s):  
Supply Chain ◽  
Raw Materials ◽  
Supply And Demand ◽  
Third Parties ◽  
The Past ◽  
Relative Value ◽  
High Level

In 2003, ITC responded to the high level of obsolete inventory by shifting risk from finished products to manufacturing and raw materials. This required that their supply chain be much more flexible and responsive than it was in the past. By 2006, changes in the supply chain that included moving manufacturing in-house improved flexibility and responsiveness. Obsolete inventory was significantly reduced and the company was much better at matching supply and demand. Cost, however, continued to be higher than that at third parties. The company had to decide on the appropriate tradeoff between cost and responsiveness when structuring its supply chain.The case illustrates how Wills has changed its supply chain to become more flexible and responsive. This change, however, has come at a cost. The case requires the students to analyze the tradeoff between cost and responsiveness/flexibility to decide on an appropriate level of flexibility/responsiveness. The case also requires the student to understand the relative value of increased flexibility versus increased responsiveness.

AHP Approach for Supplier Selection in a Polyamide Fiber Plant in Supply Chain Management

2011 ◽  
Vol 299-300 ◽  
pp. 1252-1255
Author(s):  
Hui Jin ◽  
Chun Ling Liu ◽  
Xing Yu Wang
Keyword(s):  
Supply Chain ◽  
Supplier Selection ◽  
Supplier Evaluation ◽  
Proposed Model ◽  
Polyamide Fiber ◽  
Fiber Plant ◽  
And Performance ◽  
Supplier Selection Problem

Supplier evaluation and selection is one of the most important components of supply chain, which influence the long term commitments and performance of the plant. Supplier selection is a complex multi-criteria problem which includes both qualitative and quantitative factors. In order to select the best suppliers it is essential to make a trade off between these tangible and intangible factors some of which may conflict. In this paper, an AHP-based supplier selection model is formulated and then applied to a real case study for a polyamide fiber plant in China. The use of the proposed model indicates that it can be applied to improve and assist decision making to resolve the supplier selection problem in choosing the optimal supplier combination.

scholarly journals Sustainable Ship Loading Planning for Prefabricated Products in the Construction Industry

2020 ◽  
Vol 12 (21) ◽  
pp. 8905
Author(s):  
Wen Yi ◽  
Robyn Phipps ◽  
Hans Wang
Keyword(s):  
Construction Industry ◽  
Large Scale ◽  
Transportation Cost ◽  
Sustainable Transportation ◽  
Construction Site ◽  
Integer Optimization ◽  
Construction Sites ◽  
Capacity Limits ◽  
Proposed Model

This paper focuses on sustainable transportation of prefab products from factories to construction sites by ship. Since the transportation cost for all the prefab products of a construction site is mainly dependent on the number of cargo holds used on ships, a loading plan for prefab products that minimizes the number of holds required is highly desirable. This paper is therefore devoted to the development of an optimal loading plan that decides which prefab products are loaded into each cargo hold and how to pack these prefab products into the holds so that as few holds as possible are used. We formulate the problem as a large-scale integer optimization model whose objective function is to minimize the total number of cargo holds used and whose constraints represent the cargo hold capacity limits. We develop a heuristic to solve the problem and obtain a high-quality solution. We have tested the model and algorithm on a case study that includes 20 prefab products. We find that different cargo holds carry prefab products that have quite different densities. Moreover, the orientations of many prefab products are different from their default orientations. The results demonstrate the applicability of the proposed model and algorithm.

scholarly journals Benchmarking supply chain management practices in a South African confectionery manufacturing organisation

2015 ◽  
Vol 9 (1) ◽  
Author(s):  
Orestes Peristeris ◽  
Peter J. Kilbourn ◽  
Jacobus Walters
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
South African ◽  
Best Practice ◽  
Management Practices ◽  
Business World ◽  
Chain Management ◽  
High Level ◽  
Practice Framework

Background: In an increasingly competitive business world, businesses need to be able to measure the effectiveness of their supply chain management process practices against proven best practice frameworks. A number of these frameworks exist internationally but have to be used within the context of knowing the relative strengths and weaknesses of potential benchmarking frameworks. Two such frameworks were identified in the research and a case was made to use one such framework, the Global Supply Chain Forum (GSCF) framework, to measure the effectiveness of the supply chain practices of a leading confectionery manufacturing company in South Africa.Objective of the research: The purpose of the research was to identify an international best practice framework, which could be used by South African manufacturing organisations to benchmark their supply chain management (SCM) practices.Methodology: The methodology followed was a literature review of the existing SCM frameworks to identify a framework, which would be the most suited to the objective of the study, followed by a case study of a leading manufacturing organisation’s SCM practices benchmarked against those found in the framework.Results and conclusions: The main finding of the case study was that there is a high degree of adherence between the case study organisation’s SCM practices and those found in the SCM framework. There was also generally a high level of importance ascribed by respondents to the best practices contained by the GSCF framework. It was therefore concluded that the GSCF framework proved to be a useful instrument for a comprehensive analysis of supply chain management processes and practices for a manufacturer in the fast moving consumer goods industry, with potential for applications by organisations in the supply chains of other industries.

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