P.C. Jha, Remica Aggarwal and Surya Prakash Singh
The purpose of this research is to first explore various third party logistic service provider supply chain enablers. Thereafter the interrelationship amongst the various supply…
Abstract
Purpose
The purpose of this research is to first explore various third party logistic service provider supply chain enablers. Thereafter the interrelationship amongst the various supply chain enablers has been studied using ISM Methodology. Despite the complex relationships third party logistic service providers (3PLs) share with their clients or firms, they often attract a demand owing to the flexibility and competitive edge they provide to their client firms in adapting to the rapidly changing market conditions, focusing on their core competencies and developing long-term growth strategies for them. Choosing and evaluating the right third-party logistic service provider is an important responsibility for logistic managers. This largely depends on selecting appropriate 3PLs supply chain enablers that assess the 3PLs on different fronts.
Design/methodology/approach
This paper presents an ISM approach for studying the interrelationships between various 3PLs enablers and accordingly constructing a hierarchical structure of them.
Findings
The results suggest that delivery, service reliability and risk and uncertainty factors have the highest importance.
Research limitations/implications
Selection of the 3PLs is a critical issue when they are required to be selected by the company at the global level. This often requires doing a comparative study for both domestic as well as global service providers. Choosing appropriate supply chain enablers as the basis for selection of 3PLs therefore will serve as a research topic to be further explored both by researchers as well as company managers. Further studying the inter-relationships amongst various supply chain enablers will provide basis to managers to justify their choice.
Originality/value
The novelty of the research lies in the application of methodology to the case of third-party logistic service provider selection
Details
Keywords
Remica Aggarwal, Surya Prakash Singh and P.K. Kapur
In this paper, vendor selection and order allocation problem is considered for a buyer dealing in multiple products to be supplied by multiple vendors. Each product has an…
Abstract
Purpose
In this paper, vendor selection and order allocation problem is considered for a buyer dealing in multiple products to be supplied by multiple vendors. Each product has an associated lead time with stochastic demand having stochastic capacity for each vendor across entire time period. Uncertainties related to costs which are further influenced by the periodically changing incremental quantity discounts offered by various vendors. The purpose of this paper is to find an optimal trade-off of vendor selection and order allocation in the presence of uncertainties involving multiple conflicting objectives such as cost minimization, service level/quality level maximization and delivery lead time minimization concurrently.
Design/methodology/approach
Vendor selection problem considered here has a multi-objective optimization design subject to a set of demand, capacity and quantity discount based constraints. These constraints as well as uncertainty related to lead time have been handled using chance constraint approach. The problem is titled as “integrated dynamic vendor selection problem (IDVSP).” The proposed multi-objective IDVSP is solved using both non-pre-emptive goal programming (GP) and weighted sum aggregate objective function (AOF) technique.
Findings
Findings indicate goal achievement for different objectives from both non-pre-emptive GP and AOF procedure. While the goals are satisfactorily achieved as per the target values for cost and lead time, quality/service level was somewhat compromised in order to find an appropriate trade off.
Originality/value
The research work is original as it integrates dynamic as well as stochastic (uncertain) nature of supply chain simultaneously coupled with the concept of incremental quantity discounts on lot sizes.
Details
Keywords
Green supply chain management and new product innovation and diffusion have become quite popular and act as a rich source of providing competitive advantage for companies to trade…
Abstract
Purpose
Green supply chain management and new product innovation and diffusion have become quite popular and act as a rich source of providing competitive advantage for companies to trade without further deteriorating environmental quality. However, research on low-carbon footprint supply chain configuration for a new product represents a comparably new trend and needs to be explored further. Using relatively simple models, the purpose of this paper is to demonstrate how carbon emissions concerns, such as carbon emission caps and carbon tax scheme, could be integrated into an operational decision, such as product procurement, production, storage and transportation concerning new fast-moving consumer goods (FMCG) product introduction.
Design/methodology/approach
The situation titled “low-carbon footprint supply chain configuration problems” is mathematically formulated as a multi-objective optimization problem under the dynamic and stochastic phenomenon concerning receiver’s demand requirements and production plant capacity constraints. Further, the effects of demand and capacities’ uncertainties are modeled using the chance constraint approach proposed by Charnes and Cooper (1959, 1963).
Findings
Various cases have been validated using the case example of a new FMCG product manufacturer. To validate the proposed models, data are generated randomly and solved using optimization software LINGO 10.0.
Originality/value
The attempt is novel in the context of considering the dynamic and stochastic phenomenon with respect to demand center’s requirements and manufacturing plant’s capacity constraints with regard to the low-carbon footprints supply chain configuration of a new FMCG product.