Satya Prakash and Indrajit Mukherjee
This study primarily aims to develop and solve an enhanced optimisation model for an assembly product multi-period inbound inventory routing problem (IRP). The many-to-one…
Abstract
Purpose
This study primarily aims to develop and solve an enhanced optimisation model for an assembly product multi-period inbound inventory routing problem (IRP). The many-to-one (inbound) model considers the bill of materials (BOM), supply failure risks (SFR) and customer demand uncertainty. The secondary objective is to study the influence of potential time-dependent model variables on the overall supply network costs based on a full factorial design of experiments (DOE).
Design/methodology/approach
A five-step solution approach is proposed to derive the optimal inventory levels, best sourcing strategy and vehicle route plans for a multi-period discrete manufacturing product assembly IRP. The proposed approach considers an optimal risk mitigation strategy by considering less risk-prone suppliers to deliver the required components in a specific period. A mixed-integer linear programming formulation was solved to derive the optimal supply network costs.
Findings
The simulation results indicate that lower demand variation, lower component price and higher supply capacity can provide superior cost performance for an inbound supply network. The results also demonstrate that increasing supply capacity does not necessarily decrease product shortages. However, when demand variation is high, product shortages are reduced at the expense of the supply network cost.
Research limitations/implications
A two-echelon supply network for a single assembled discrete product with homogeneous vehicle fleet availability was considered in this study.
Originality/value
The proposed multi-period inbound IRP model considers realistic SFR, customer demand uncertainties and product assembly requirements based on a specific BOM. The mathematical model includes various practical aspects, such as supply capacity constraints, supplier management costs and target service-level requirements. A sensitivity analysis based on a full factorial DOE provides new insights that can aid practitioners in real-life decision-making.
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Seyed Mojtaba Taghavi, Vahidreza Ghezavati, Hadi Mohammadi Bidhandi and Seyed Mohammad Javad Mirzapour Al-e-Hashem
This paper aims to minimize the mean-risk cost of sustainable and resilient supplier selection, order allocation and production scheduling (SS,OA&PS) problem under uncertainty of…
Abstract
Purpose
This paper aims to minimize the mean-risk cost of sustainable and resilient supplier selection, order allocation and production scheduling (SS,OA&PS) problem under uncertainty of disruptions. The authors use conditional value at risk (CVaR) as a risk measure in optimizing the combined objective function of the total expected value and CVaR cost. A sustainable supply chain can create significant competitive advantages for companies through social justice, human rights and environmental progress. To control disruptions, the authors applied (proactive and reactive) resilient strategies. In this study, the authors combine resilience and social responsibility issues that lead to synergy in supply chain activities.
Design/methodology/approach
The present paper proposes a risk-averse two-stage mixed-integer stochastic programming model for sustainable and resilient SS,OA&PS problem under supply disruptions. In this decision-making process, determining the primary supplier portfolio according to the minimum sustainable-resilient score establishes the first-stage decisions. The recourse or second-stage decisions are: determining the amount of order allocation and scheduling of parts by each supplier, determining the reactive risk management strategies, determining the amount of order allocation and scheduling by each of reaction strategies and determining the number of products and scheduling of products on the planning time horizon. Uncertain parameters of this study are the start time of disruption, remaining capacity rate of suppliers and lead times associated with each reactive strategy.
Findings
In this paper, several numerical examples along with different sensitivity analyses (on risk parameters, minimum sustainable-resilience score of suppliers and shortage costs) were presented to evaluate the applicability of the proposed model. The results showed that the two-stage risk-averse stochastic mixed-integer programming model for designing the SS,OA&PS problem by considering economic and social aspects and resilience strategies is an effective and flexible tool and leads to optimal decisions with the least cost. In addition, the managerial insights obtained from this study are extracted and stated in Section 4.6.
Originality/value
This work proposes a risk-averse stochastic programming approach for a new multi-product sustainable and resilient SS,OA&PS problem. The planning horizon includes three periods before the disruption, during the disruption period and the recovery period. Other contributions of this work are: selecting the main supply portfolio based on the minimum score of sustainable-resilient criteria of suppliers, allocating and scheduling suppliers orders before and after disruptions, considering the balance constraint in receiving parts and using proactive and reactive risk management strategies simultaneously. Also, the scheduling of reactive strategies in different investment modes is applied to this problem.
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S.M. Taghavi, V. Ghezavati, H. Mohammadi Bidhandi and S.M.J. Mirzapour Al-e-Hashem
This paper proposes a two-level supply chain including suppliers and manufacturers. The purpose of this paper is to design a resilient fuzzy risk-averse supply portfolio selection…
Abstract
Purpose
This paper proposes a two-level supply chain including suppliers and manufacturers. The purpose of this paper is to design a resilient fuzzy risk-averse supply portfolio selection approach with lead-time sensitive manufacturers under partial and complete supply facility disruption in addition to the operational risk of imprecise demand to minimize the mean-risk costs. This problem is analyzed for a risk-averse decision maker, and the authors use the conditional value-at-risk (CVaR) as a risk measure, which has particular applications in financial engineering.
Design/methodology/approach
The methodology of the current research includes two phases of conceptual model and mathematical model. In the conceptual model phase, a new supply portfolio selection problem is presented under disruption and operational risks for lead-time sensitive manufacturers and considers resilience strategies for risk-averse decision makers. In the mathematical model phase, the stages of risk-averse two-stage fuzzy-stochastic programming model are formulated according to the above conceptual model, which minimizes the mean-CVaR costs.
Findings
In this paper, several computational experiments were conducted with sensitivity analysis by GAMS (General algebraic modeling system) software to determine the efficiency and significance of the developed model. Results show that the sensitivity of manufacturers to the lead time as well as the occurrence of disruption and operational risks, significantly affect the structure of the supply portfolio selection; hence, manufacturers should be taken into account in the design of this problem.
Originality/value
The study proposes a new two-stage fuzzy-stochastic scenario-based mathematical programming model for the resilient supply portfolio selection for risk-averse decision-makers under disruption and operational risks. This model assumes that the manufacturers are sensitive to lead time, so the demand of manufacturers depends on the suppliers who provide them with services. To manage risks, this model also considers proactive (supplier fortification, pre-positioned emergency inventory) and reactive (revision of allocation decisions) resilience strategies.
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Dwi Agustina Kurniawati, Asfin Handoko, Rajesh Piplani and Rianna Rosdiahti
This paper aims to optimize the halal product distribution by minimizing the transportation cost while ensuring halal integrity of the product. The problem is considered as a…
Abstract
Purpose
This paper aims to optimize the halal product distribution by minimizing the transportation cost while ensuring halal integrity of the product. The problem is considered as a capacitated vehicle routing problem (CVRP), based on the assumption that two different types of vehicles are used for distribution: vehicles dedicated for halal product distribution and vehicles dedicated for nonhalal products distribution. The problem is modeled as an integer linear program (ILP), termed CVRP-halal and nonhalal products distribution (CVRP-HNPD). It is solved using tabu-search (TS)-based algorithm and is suitable for application to real-life sized halal product distribution.
Design/methodology/approach
Two approaches are used in solving the problem: exact approach (integer-linear program) and approximate approach (TS). First, the problem is modeled as ILP and solved using CPLEX Solver. To solve life-sized problems, a TS-based algorithm is developed and run using MATLAB.
Findings
The experiments on numerical data and life-sized instances validate the proposed model and algorithm and show that cost-minimizing routes for HNPD are developed while ensuring the halal integrity of the products.
Practical implications
The proposed model and algorithm are suitable as decision support tools for managers responsible for distribution of halal products as they facilitate the development of minimum cost distribution routes for halal and nonhalal products while maintaining the integrity of halal products. The model and algorithm provide a low transportation cost strategy at the operational level of halal products distribution while fulfilling the halal logistics requirement.
Originality/value
To the best of the author’s knowledge, this is the first study that specifically deals with the CVRP of halal products distribution by proposing CVRP-HNPD model and TS-CVRP-HNPD algorithm. The proposed model and algorithm ensure the integrity of halal products along the distribution chain, from the warehouse (distribution center) to the retailer, while achieving lowest transportation cost.
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Mohsen Sadeghi-Dastaki and Abbas Afrazeh
Human resources are one of the most important and effective elements for companies. In other words, employees are a competitive advantage. This issue is more vital in the supply…
Abstract
Purpose
Human resources are one of the most important and effective elements for companies. In other words, employees are a competitive advantage. This issue is more vital in the supply chains and production systems, because of high need for manpower in the different specification. Therefore, manpower planning is an important, essential and complex task. The purpose of this paper is to present a manpower planning model for production departments. The authors consider workforce with individual and hierarchical skills with skill substitution in the planning. Assuming workforce demand as a factor of uncertainty, a two-stage stochastic model is proposed.
Design/methodology/approach
To solve the proposed mixed-integer model in the real-world cases and large-scale problems, a Benders’ decomposition algorithm is introduced. Some test instances are solved, with scenarios generated by Monte Carlo method. For some test instances, to find the number of suitable scenarios, the authors use the sample average approximation method and to generate scenarios, the authors use Latin hypercube sampling method.
Findings
The results show a reasonable performance in terms of both quality and solution time. Finally, the paper concludes with some analysis of the results and suggestions for further research.
Originality/value
Researchers have attracted to other uncertainty factors such as costs and products demand in the literature, and have little attention to workforce demand as an uncertainty factor. Furthermore, most of the time, researchers assume that there is no difference between the education level and skill, while they are not necessarily equivalent. Hence, this paper enters these elements into decision making.
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The purpose of this paper is to develop a decision support system to consider geographic information, logistics information and greenhouse gas (GHG) emission information to solve…
Abstract
Purpose
The purpose of this paper is to develop a decision support system to consider geographic information, logistics information and greenhouse gas (GHG) emission information to solve the proposed green inventory routing problem (GIRP) for a specific Taiwan publishing logistics firm.
Design/methodology/approach
A GIRP mathematical model is first constructed to help this specific publishing logistics firm to approximate to the optimal distribution system design. Next, two modified Heuristic-Tabu combination methods that combine savings approach, 2-opt and 1-1 λ-interchange heuristic approach with two modified Tabu search methods are developed to determine the optimum solution.
Findings
Several examples are given to illustrate the optimum total inventory routing cost, the optimum delivery routes, the economic order quantities, the optimum service levels, the reorder points, the optimum common review interval and the optimum maximum inventory levels of all convenience stores in these designed routes. Sensitivity analyses are conducted based on the parameters including truck loading capacity, inventory carrying cost percentages, unit shortage costs, unit ordering costs and unit transport costs to support optimal distribution system design regarding the total inventory routing cost and GHG emission level.
Originality/value
The most important finding is that GIRP model with reordering point inventory control policy should be applied for the first replenishment and delivery run and GIRP model with periodic review inventory control policy should be conducted for the remaining replenishment and delivery runs based on overall simulation results. The other very important finding concerning the global warming issue can help decision makers of GIRP distribution system to select the appropriate type of truck to deliver products to all retail stores located in the planned optimal delivery routes depending on GHG emission consumptions.
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Zhixiang Chen and Bhaba R. Sarker
The purpose of this paper is to study the impact of learning effect and demand uncertainty on aggregate production planning (APP), provide practitioners with some important…
Abstract
Purpose
The purpose of this paper is to study the impact of learning effect and demand uncertainty on aggregate production planning (APP), provide practitioners with some important managerial implications for improving production planning and productivity.
Design/methodology/approach
Motivated by the background of one labour-intensive manufacturing firm – a mosquito expellant factory – an APP model considering workforce learning effect and demand uncertainty is established. Numerical example and comparison with other two models without considering learning and uncertainty of demand are conducted.
Findings
The result shows that taking into account the uncertain demand and learning effect can reduce total production cost and increase flexibility of APP.
Practical implications
Managerial implications are provided for practitioners with four propositions on improving workforce learning effect, i.e. emphasizing employee training, combing individual and organizational learning and reduction of forgetting effect.
Originality/value
This paper has practice value in improving APP in labor-intensive manufacturing.
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Srikant Gupta, Sachin Chaudhary, Prasenjit Chatterjee and Morteza Yazdani
Logistics is the part of the supply chain (SC) that plans, executes and handles forward and reverse movement and storage of products, services and related information, in order to…
Abstract
Purpose
Logistics is the part of the supply chain (SC) that plans, executes and handles forward and reverse movement and storage of products, services and related information, in order to respond to customers' needs effectively and efficiently. The main concern for logistics is to ensure that the correct product is placed at the right time. This paper introduces a linear model of shipping focused on decision-making, which includes configuration of shipping network, choosing of transport means and transfer of individual customer shipments through a particular transport system.
Design/methodology/approach
In this study, authors try to address the problem of supply chain network (SCN) where the primary goal is to determine the appropriate order allocation of products from different sources to different destinations. They also seek to minimize total transportation cost and inventory cost by simultaneously determining optimal locations, flows and shipment composition. The formulated problem of getting optimal allocation turns out to be a problem of multi-objective programming, and it is solved by using the max-addition fuzzy goal programming approach, for obtaining optimal order allocation of products. Furthermore, the problem demand and supply parameters have been considered random in nature, and the maximum likelihood estimation approach has been used to assess the unknown probabilistic distribution parameters with a specified probability level (SPL).
Findings
A case study has also been applied for examining the effectiveness and applicability of the developed multi-objective model and the proposed solution methods. Results of this study are very relevant for the manufacturing sector in particular, for those facing logistics issues in SCN. It enables researchers and managers to cope with various types of uncertainty and logistics risks associated with SCN.
Research limitations/implications
The principal contribution of the proposed model is the improved modelling of transportation and inventory, which are affected by different characteristics of SCN. To demonstrate computational information of the suggested methods and proposed model, a case illustration of SCN is provided. Also, environmentalism is increasingly becoming a significant global concern. Hence, the concept proposed could be extended to include environmental aspects as an objective function or constraint.
Originality/value
Efficient integration of logistical cost components, such as transportation costs, inventory costs, with mathematical programming models is an important open issue in logistics optimization. This study expands conventional facility location models to incorporate a range of logistic system elements such as transportation cost and different types of inventory cost, in a multi-product, multi-site network. The research is original and is focused on case studies of real life.
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Ramesh Krishnan, Rohit G and P N Ram Kumar
Considering sustainability and resilience together is crucial in food supply chain (FSC) management, as it ensures a balanced approach that meets environmental, economic and…
Abstract
Considering sustainability and resilience together is crucial in food supply chain (FSC) management, as it ensures a balanced approach that meets environmental, economic and social needs while maintaining the system's capacity to withstand disruptions. Towards this, a multi-objective optimisation model is proposed in this study to create an integrated sustainable and resilient FSC. The proposed model employs four objective functions – each representing a dimension of sustainability and one for resilience and utilises an augmented ϵ-constraint method for solving. The findings highlight the interplay between sustainability aspects and resilience, illustrating that overemphasis on any single dimension can adversely affect others. Further, the proposed model is applied to the case of Indian mango pulp supply chain and several inferences are derived. The proposed model would assist decision-makers in making a well-balanced choice based on sustainability and resilience considerations.
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Behzad Karimi, Mahsa Ghare Hassanlu and Amir Hossein Niknamfar
The motivation behind this research refers to the significant role of integration of production-distribution plans in effective performance of supply chain networks under fierce…
Abstract
Purpose
The motivation behind this research refers to the significant role of integration of production-distribution plans in effective performance of supply chain networks under fierce competition of today’s global marketplace. In this regard, this paper aims to deal with an integrated production-distribution planning problem in deterministic, multi-product and multi-echelon supply chain network. The bi-objective mixed-integer linear programming model is constructed to minimize not only the total transportation costs but also the total delivery time of supply chain, subject to satisfying retailer demands and capacity constraints where quantity discount on transportation costs, fixed cost associated with transportation vehicles usage and routing decisions have been included in the model.
Design/methodology/approach
As the proposed mathematical model is NP-hard and that finding an optimum solution in polynomial time is not reasonable, two multi-objective meta-heuristic algorithms, namely, non-dominated sorting genetic algorithm II (NSGAII) and multi-objective imperialist competitive algorithm (MOICA) are designed to obtain near optimal solutions for real-sized problems in reasonable computational times. The Taguchi method is then used to adjust the parameters of the developed algorithms. Finally, the applicability of the proposed model and the performance of the solution methodologies in comparison with each other are demonstrated for a set of randomly generated problem instances.
Findings
The practicality and applicability of the proposed model and the efficiency and efficacy of the developed solution methodologies were illustrated through a set of randomly generated real-sized problem instances. Result. In terms of two measures, the objective function value and the computational time were required to get solutions.
Originality/value
The main contribution of the present work was addressing an integrated production-distribution planning problem in a broader view, by proposing a closer to reality mathematical formulation which considers some real-world constraints simultaneously and accompanied by efficient multi-objective meta-heuristic algorithms to provide effective solutions for practical problem sizes.