Kuntal Bhattacharyya, Alfred L. Guiffrida, Milton Rene Soto-Ferrari and Paul Schikora
Untimely delivery of goods and services, especially in a post-COVID landscape, is a critical harbinger of end-to-end fulfillment. Existing literature in supplier delivery modeling…
Abstract
Purpose
Untimely delivery of goods and services, especially in a post-COVID landscape, is a critical harbinger of end-to-end fulfillment. Existing literature in supplier delivery modeling is focused on penalizing suppliers for late deliveries built into a contractual transaction, which eventually erodes trust. As such, a holistic modeling technique focused on long-term relationship building is missing. This study aims to design a supplier evaluation model that analytically equates supplier delivery performance to cost realization while replicating a core attribute of successful supply chains – alignment, leading to long-term supplier relationships.
Design/methodology/approach
The supplier evaluation model designed in this paper uses delivery deviation as a unit of measure as opposed to delivery duration to enhance consistency with enterprise resource planning protocols. A one-sided modified Taguchi-type quality loss function (QLF) models delivery lateness to construct a multinomial probability penalty cost function for untimely delivery. Prescriptive analytics using simulation and optimization of the proposed mathematical model supports buyer–supplier alignment.
Findings
The supplier evaluation model designed herein not only optimizes likelihood parameters for early and late deliveries for competing suppliers to enhance total landed cost comparisons for on-shore, near-shore and off-shore suppliers but also allows for the creation of an efficient frontier toward supply base optimization.
Research limitations/implications
At a time of systemic disruptions such as the COVID pandemic, global supply chains are at risk of business continuity. Supplier evaluation models need to focus on long-term relationship modeling as opposed to short-term contractual penalty-based modeling to enhance business continuity. The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre.
Practical implications
The results from this analytical approach offer flexibility to a supply manager toward building redundancies in the supply chain using an efficient frontier within the supply landscape, which also helps to manage disruption and maintain end-to-end fulfillment.
Originality/value
The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre. The authors offer a rational solution by creating an evaluation model that uses penalty cost modeling as an internal quality measure to rate suppliers and uses the outcome as a yardstick for negotiations instead of imposing penalties within contracts.
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Kelly Weeks, Alfred Guiffrida and Mahdi Safa
The purpose of this paper is to extend the developing body of knowledge on supply chain performance by addressing the impact of resource commitment (RC), product route efficiency…
Abstract
Purpose
The purpose of this paper is to extend the developing body of knowledge on supply chain performance by addressing the impact of resource commitment (RC), product route efficiency (PRE), and manufacturing flexibility (MF) on a firm’s financial performance (FP) has a direct impact on supply chain operations.
Design/methodology/approach
Survey questionnaires were developed in conjunction with literature guidance. Exploratory and confirmatory factor analysis was used in conjunction with structural equation modeling to give a robust analysis of the problem setting.
Findings
Discoveries herein indicate that committing resources in itself is insufficient to adequately increase FP over the long term. However, the mediating variables of MF and PRE were found to significantly improve a firm’s bottom line.
Originality/value
Prior research has been somewhat lacking and inconsistent with regards to the nature of causal and mediating relationships found between RC, PRE, MF, and a firm’s financial performance. Given the increasing global nature of competition, understanding the relationships between potential factors that could positively impact a firm’s FP has a large potential direct impact and benefit on supply chain operations.
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Maxim A Bushuev, Alfred Guiffrida, M. Y. Jaber and Mehmood Khan
This paper aims to give a comprehensive review, summary, and discussion on inventory models that have appeared in the literature. During these past ten decades, no seminal paper…
Abstract
Purpose
This paper aims to give a comprehensive review, summary, and discussion on inventory models that have appeared in the literature. During these past ten decades, no seminal paper reviewing the field of inventory lot sizing has even been published. This limitation has been identified in the literature by several researchers over the years, with the sheer volume of the number of published inventory lot sizing models acting as a factor which has limited a research endeavor to review the literature on inventory lot sizing models.
Design/methodology/approach
This article reviews research on inventory lot size models and provides a review of previously published literature review papers on inventory models. Based on this initial review, the literature extending current research practices on inventory modeling in supply chains and in sustainable practices is presented. Directions for expanding research in these two areas are examined in light of concerns expressed in the historical use of inventory models and in light of a new inventory research paradigm.
Findings
In our paper, we have adopted a novel strategy to overcome this limitation by focusing our review on a review of inventory lot sizing review papers.
Originality/value
By adopting the methodology of reviewing published inventory review papers, we can contribute a comprehensive review of the inventory lot sizing literature that serves to provide in one paper a consolidation of inventory research that can serve as a single source to keep researchers up to date with the research developments in inventory lot sizing models. We also identify gaps in the field which could stimulate new research agendas in the areas of supply chain management and sustainable inventory practices.
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This paper aims to explore possible internal and external challenges of foreign multinational enterprises (MNEs) from developed countries to develop sustainable environmental…
Abstract
Purpose
This paper aims to explore possible internal and external challenges of foreign multinational enterprises (MNEs) from developed countries to develop sustainable environmental development programs in China.
Design/methodology/approach
The research is based on the author's five years' field work (2006‐2010) in China. A total of 30 Chinese executives from 20 different foreign MNEs were interviewed about their companies' corporate social responsibility (CSR) programs.
Findings
The focus of 19 companies' environmental programs (95 percent) is internal production and operation efficiency. Only one of 20 companies is committed to increasing the capacity of local Chinese suppliers to comply with the environmental code of conducts listed in their CSR programs and to enable the entire global supply chain to fulfill the international environment standards. The key challenges for foreign companies not to have “holistic and integrated” approaches in their environmental programs are many: keen price competition among Chinese suppliers that are at the low end of global supply chains, some local governments prefer to have economic growth at the expense of environmental welfare, some companies prefer to pay an environmental fee for polluting the local environment as the fee is not high enough to reflect the cost, and the message given by CSR managers to Chinese suppliers are not implemented by their companies' purchasers.
Originality/value
This paper is the first attempt to examine how foreign MNEs balance their CSR requirements internally while managing the performance of their Chinese suppliers to be up to the CSR standards in the global supply chain.
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Asoke Dey, Paul LaGuardia and Mahesh Srinivasan
The purpose of this study is to examine the current state of sustainability efforts within the field of supply chain management, more specifically supply chain logistics…
Abstract
Purpose
The purpose of this study is to examine the current state of sustainability efforts within the field of supply chain management, more specifically supply chain logistics operations, and to identify opportunities and provide recommendations for firms to follow sustainable operations. This study also aims to stimulate further research within the area of sustainable logistics operations.
Design/methodology/approach
The reasons why it is important to implement sustainability into supply chain operations is discussed. Based on a review of the extant literature, various areas within the logistics function where sustainability can be implemented are then presented. Some short‐term and long‐term recommendations for the successful implementation of sustainability in the logistics function of supply chains are provided.
Findings
There has been very little work done to understand the role and importance of logistics in an organization's quest towards sustainability. For firms to implement a sustainability strategy in their supply chain operations, the logistics function needs to play a prominent role because of the magnitude of costs involved and the opportunity to identify and eliminate inefficiencies and reduce the carbon footprint.
Practical implications
Firms in their quest for sustainable logistics operations must start early and start simple. A top management commitment is required for such efforts to be successful. Also, firms need to be able to visualize and map out their supply chains and benchmark their sustainability efforts with other firms in their industry.
Social implications
Firms need to follow sustainable practices in their overall operations and in their logistics operations in particular because not only does it have financial and other intangible benefits, but it is also the right thing to do. Firms have a great social responsibility especially with respect to use of non‐renewable sources of energy and materials and also with respect to how their products are used and handled once they reach the end of their life cycles.
Originality/value
This paper is the first of its kind which examines the state of sustainability within the field of supply chain logistics operations and identifies areas and sets the agenda for future research in this field.
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This paper aims to provide information about which conditions green supply chains have to fulfil in order to attain an environmentally sustainable situation.
Abstract
Purpose
This paper aims to provide information about which conditions green supply chains have to fulfil in order to attain an environmentally sustainable situation.
Design/methodology/approach
The paper describes a macro economic analysis in which, first, the non‐human – made physical surroundings is described as a collection of possible uses, or environmental functions, on which human life is entirely dependent. Second, the possibilities and impossibilities of evaluating environmental functions are described. Third, it is stated that competing functions are by definition economic goods. Fourth, the concepts of national income (NI) ex asymmetric entries and the environmentally sustainable national income (eSNI) are formulated. Fifth it is shown why the estimate of eSNI has to be realised with the aid of an economic model. Sixth, it is argued why there is no conflict between environmental conservation and employment. Finally, the relation of this analysis and supply chains is given.
Findings
The results of an environmentally sustainable production level (the eSNI) is given, both for The Netherlands and for the world. It is found that a series NIs ex asymmetric entries and a series of eSNIs alongside the standard NI would greatly ameliorate the information about the inevitable choices between the growth of production and safeguarding vital environmental functions for future generations.
Originality/value
Both the concepts presented and the results of the estimates are original.
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A. Mazeika Bilbao, A.L. Carrano, M. Hewitt and B.K. Thorn
This paper seeks to frame and model the environmental issues and impacts associated with the management of pallets throughout the entire life cycle, from materials to…
Abstract
Purpose
This paper seeks to frame and model the environmental issues and impacts associated with the management of pallets throughout the entire life cycle, from materials to manufacturing, use, transportation to end‐of‐life disposal.
Design/methodology/approach
A linear minimum cost multi‐commodity network flow problem is developed to make pallet‐related decisions based on both environmental and economic considerations.
Findings
This paper presents a review of the environmental impacts associated with pallets by life cycle stage. The types of materials used to fabricate pallets, the methods by which they are treated for specific applications, and various pallet management models are described with respect to embodied energies, toxicity and emissions. The need for companies to understand the cost, durability, and environmental impact tradeoffs presented by pallet choices is highlighted. The paper introduces a model to assist in choosing both how pallets are managed and the material they are constructed of that balances these tradeoffs.
Originality/value
There is limited research on the environmental impact of different management approaches of large‐scale pallet operations. The proposed model and approach will provide companies seeking to engage in more sustainable practices in their supply chains and distribution with insights and a decision‐making tool not previously available.
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This paper aims to examine whether some countries achieve logistics efficiency at the cost of undermining environmental quality. In so doing, a hybrid index, the green logistics…
Abstract
Purpose
This paper aims to examine whether some countries achieve logistics efficiency at the cost of undermining environmental quality. In so doing, a hybrid index, the green logistics performance index (GLPI) combining both the LPI and the environmental performance index (EPI), is constructed.
Design/methodology/approach
Being a macro analysis measuring the green supply chain efficiency of a country, this paper utilizes the secondary data compiled by the World Bank and the World Economic Forum. A series of simple regression analyses were conducted in order to find out the varying degrees of association between the LPI, the EPI, the GLPI and the national income level.
Findings
As active logistics activities can have an impact on carbon footprints such as greenhouse gas emissions, it was found that some countries chose to increase their income level at the expense of the environment degradation. Consequently, the GLPI is suggested as a good indicator of a country's green logistics efficiency, showing what impact the country's logistics competitiveness has on its environment.
Originality/value
This paper is the first attempt to measure the efficiency of the supply chain of a country from a green perspective by proposing the GLPI combining the LPI and the EPI. It is also the first literature in the supply chain management academia to utilize both the LPI and the EPI.
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A.M.A. El Saadany, M.Y. Jaber and M. Bonney
The paper seeks to develop an analytical decision model that is used to investigate the performance of a supply chain when product, process, and environmental quality…
Abstract
Purpose
The paper seeks to develop an analytical decision model that is used to investigate the performance of a supply chain when product, process, and environmental quality characteristics are considered.
Design/methodology/approach
Environmental performance measures and methods to quantify quality are reviewed and then used to develop a method to measure environmental quality and its associated costs. This was translated into a two‐level supply chain coordination model that captures most aspects of green supply chains. Numerical examples are provided and solved using Excel Solver enhanced with VBA codes.
Findings
The results confirmed some findings in the literature that investing to reduce environmental costs improves environmental performance and increases total profits.
Research limitations/implications
The environmental quality cost function that was used was of a form that guarantees a global optimal solution. A limitation is that the function may take more complex forms where different analytical and solution methods would be needed.
Originality/value
The model fills a gap in the literature where there is a lack of models to help managers implement environmentally acceptable coordinated two‐level supply chains.