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Article
Publication date: 7 September 2020

Balan Sundarakani, Vijay Pereira and Alessio Ishizaka

Facility location and re-location decisions are critical managerial decisions in modern supply chains. Such decisions are difficult in this environment as managers encounter…

1863

Abstract

Purpose

Facility location and re-location decisions are critical managerial decisions in modern supply chains. Such decisions are difficult in this environment as managers encounter uncertainty and risks. The study investigates establishing or moving distribution facilities in the global supply chain by considering costs, fulfilment, trade uncertainties, risks under environmental trade-offs and disruptive technologies.

Design/methodology/approach

This paper combines the possibilities and probabilistic scenarios for a supply chain network by proposing the novel Robust Optimisation and Mixed Integer Linear Programming (ROMILP) method developed under the potential uncertainty of demand while considering the costs associated with a four-tier supply chain network. ROMILP has been solved in a real-time logistics environment by applying a case study approach.

Findings

The solution is obtained using an exact solution approach and provides optimality in all tested market scenarios along the proposed global logistics corridor. A sensitivity analysis examines potential facility location scenarios in a global supply chain context.

Research limitations/implications

Logistics managers can apply the ROMILP model to test the cost-benefit trade-offs against their facility location and relocation decisions while operating under uncertainty. Future research is proposed to extend the literature by applying data from the OBOR logistics corridor.

Originality/value

This study is the first to examine sustainable dimensions along the global logistics corridor and investigate the global container traffic perspective. The study also adds value to the Middle East logistics corridor regarding facility location decisions.

Details

The International Journal of Logistics Management, vol. 32 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 26 July 2021

Ehsan Mohebban-Azad, Amir-Reza Abtahi and Reza Yousefi-Zenouz

This study aims to design a reliable multi-level, multi-product and multi-period location-inventory-routing three-echelon supply chain network, which considers disruption risks…

Abstract

Purpose

This study aims to design a reliable multi-level, multi-product and multi-period location-inventory-routing three-echelon supply chain network, which considers disruption risks and uncertainty in the inventory system.

Design/methodology/approach

A robust optimization approach is used to deal with the effects of uncertainty, and a mixed-integer nonlinear programming multi-objective model is proposed. The first objective function seeks to minimize inventory costs, such as ordering costs, holding costs and carrying costs. It also helps to choose one of the two modes of bearing the expenses of shortage or using the excess capacity to produce at the expense of each. The second objective function seeks to minimize the risk of disruption in distribution centers and suppliers, thereby increasing supply chain reliability. As the proposed model is an non-deterministic polynomial-time-hard model, the Lagrangian relaxation algorithm is used to solve it.

Findings

The proposed model is applied to a real supply chain in the aftermarket automotive service industry. The results of the model and the current status of the company under study are compared, and suggestions are made to improve the supply chain performance. Using the proposed model, companies are expected to manage the risk of supply chain disruptions and pay the lowest possible costs in the event of a shortage. They can also use reverse logistics to minimize environmental damage and use recycled goods.

Originality/value

In this paper, the problem definition is based on a real case; it is about the deficiencies in the after-sale services in the automobile industry. It considers the disruption risk at the first level of the supply chain, selects the supplier considering the parameters of price and disruption risk and examines surplus capacity over distributors’ nominal capacity.

Details

Journal of Modelling in Management, vol. 17 no. 2
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 2 March 2015

Alireza Ebrahim Nejad and Onur Kuzgunkaya

The purpose of this paper is to provide a decision-making tool achieving robust supply flow by incorporating strategic stock and contingent sourcing in mitigating minor and major…

Abstract

Purpose

The purpose of this paper is to provide a decision-making tool achieving robust supply flow by incorporating strategic stock and contingent sourcing in mitigating minor and major disruptions.

Design/methodology/approach

The authors consider a firm with two suppliers where the main supplier is cost-effective but prone to disruptions and the back-up supplier is reliable but expensive due to built-in volume flexibility. In order to incorporate the randomness associated with disruptions and the available capacity during response time in the decision-making stage, the authors present a multi-stage robust optimization (RO) model. The design problem is to determine optimal strategic stock level and response speed of volume-flexible back-up supplier in order to achieve a robust supply flow.

Findings

The results show that the quality of optimal solution is improved by considering the randomness associated with available capacity. In addition, incorporating congestion effects allows identifying the appropriate level of supply chain responsiveness, thus improving the overall performance.

Originality/value

The novelty of the proposed model is the consideration of both strategic stock and volume flexibility in maintaining a robust supply performance while incorporating response capability and congestion effects.

Details

Journal of Manufacturing Technology Management, vol. 26 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 31 May 2013

Andreas Wieland

The purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on risk probability p (measure of how likely/often a detrimental…

3111

Abstract

Purpose

The purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on risk probability p (measure of how likely/often a detrimental event occurs) and risk impact i (expression of the significance of a loss when that event occurs).

Design/methodology/approach

This paper discusses four supply chain strategies: agility, robustness, resilience and rigidity. Mathematical models are used for the strategies' cost functions, which reveal optimal solutions and break‐even points in dependence of p and i.

Findings

This paper proposes that resilience is appropriate in the case of high supply chain risk probability and impact, and rigidity if both values are low. When only risk impact is low, robustness is optimal, whereas agility is optimal when only risk probability is low.

Research limitations/implications

This research extends existing models for selecting the appropriate supply chain strategy.

Practical implications

Knowledge of the interplay between the strategies' cost functions and risk probability and risk impact is vital for companies. This may encourage managers to become more familiar with their strategy costs and supply chain risks.

Originality/value

To the author's knowledge, no corresponding model exists so far that links risk impact and risk probability to the four supply chain strategies.

Details

Journal of Manufacturing Technology Management, vol. 24 no. 5
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 2 November 2012

Andreas Wieland and Carl Marcus Wallenburg

The effects of supply chain risk management (SCRM) on the performance of a supply chain remain unexplored. It is assumed that SCRM helps supply chains to cope with vulnerabilities…

15504

Abstract

Purpose

The effects of supply chain risk management (SCRM) on the performance of a supply chain remain unexplored. It is assumed that SCRM helps supply chains to cope with vulnerabilities both proactively by supporting robustness and reactively by supporting agility. Both dimensions are assumed to have an influence on the supply chain's customer value and on business performance. The aim of this research is to provide clarity by empirically testing these hypotheses and scrutinizing the findings by the means of case studies.

Design/methodology/approach

The research is empirical. Survey data were collected from 270 manufacturing companies for hypotheses testing via structural equation modeling. Additionally, qualitative data were collected to explore the nature of non‐hypothesized findings.

Findings

It is found that SCRM is important for agility and robustness of a company. Both agility and robustness show to be important in improving performance. While agility has a strong positive effect only on the supply chain's customer value, but not directly on business performance, robustness has a strong positive effect on both performance dimensions. This important finding directs the strategic attention from agility‐centered supply chains to ones that are both robust and agile. The case studies provide insights to the fact that robustness can be considered a basic prerequisite to deal with supplier‐side risks, while agility is necessary to deal with customer‐side risks. The amount of agility and robustness needs to fit to the competitive strategy.

Practical implications

Since volatility has increasingly become a prevalent state of supply chains, companies need to consider robustness to be of primary importance to withstand everyday risks and exceptions.

Originality/value

This is the first study to view the relationship between SCRM, agility/robustness, and performance.

Details

International Journal of Physical Distribution & Logistics Management, vol. 42 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 14 May 2024

Raja Usman Khalid, Muhammad Shakeel Sadiq Jajja and Muhammad Bilal Ahsan

This article aims to evaluate published food cold chain (FCC) literature against risk management and supply chain sustainability concepts.

Abstract

Purpose

This article aims to evaluate published food cold chain (FCC) literature against risk management and supply chain sustainability concepts.

Design/methodology/approach

The article uses the theory refinement logic proposed by Seuring et al. (2021) to analyze the contents of FCC management-related literature published over the past 20 years. A sample of 116 articles was gathered using Web of Science and subsequently analyzed. The respective articles were then systematically coded against the frameworks of Beske and Seuring (2014) and Vlajic et al. (2012), which focused on building sustainable and robust supply chains, respectively.

Findings

The literature review revealed that debates around managing contemporary sources of disruptions/vulnerability and making FCCs more sustainable and resilient are gradually developing. However, an overarching risk management perspective along with incorporating social and environmental dimensions in managing FCCs still needs the adequate attention of the respective research community.

Research limitations/implications

The deductive internal logic of theory refinement approach used in this paper could have been further strengthened by using additional frameworks. This limitation, however, opens avenues for further research. The findings of the paper will stimulate the interest of future researchers to work on expanding our understanding related to sustainability and risk management in FCCs.

Originality/value

The paper is the first attempt to organize published FCC literature along dimensions of supply chain sustainability and risk management. The paper thus provides the respective researchers with a foundation that will help them adopt a focused approach to addressing the research gaps.

Details

Modern Supply Chain Research and Applications, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 28 November 2023

Shikha Singh, Sameer Kumar and Adarsh Kumar

The outset of the COVID-19 pandemic caused disruptions of all forms in the supply chain globally for almost two and a half years. This study identifies various challenges in the…

Abstract

Purpose

The outset of the COVID-19 pandemic caused disruptions of all forms in the supply chain globally for almost two and a half years. This study identifies various challenges in the effective functioning of the existing supply chain during COVID-19. The focus is to see the disruptions impacting the energy storage supply chains.

Design/methodology/approach

The procedure entails a thorough analysis of scholarly literature pertaining to various supply chain interruptions, confirmed and verified by experts working in an energy storage company in India. These experts also confirmed the occurrence of more disruptive factors during their interviews and questionnaire survey. Moreover, this process attempts to filter out the relevant causal disruption factors in an energy storage company by using the integrated approach of qualitative and quantitative methodologies.

Findings

The results provide practical insights for the company management in planning and devising new strategies to manage supply chain disruptions. Supply chains for companies in other industry sectors can also benefit from the proposed framework and results in making them more robust to counter future disastrous events.

Originality/value

The study provides an easily adaptable decision framework to different industries by closely examining supply chain disruptions and identifying associated causes for building a robust supply chain focused on the energy storage sector. It examines four disruption dimensions and investigates possible outcomes and impacts of disruptions.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Content available
Article
Publication date: 10 December 2021

Jade F. Preston, Bruce A. Cox, Paul P. Rebeiz and Timothy W. Breitbach

Supply chains need to balance competing objectives; in addition to efficiency, supply chains need to be resilient to adversarial and environmental interference and robust to…

Abstract

Purpose

Supply chains need to balance competing objectives; in addition to efficiency, supply chains need to be resilient to adversarial and environmental interference and robust to uncertainties in long-term demand. Significant research has been conducted designing efficient supply chains and recent research has focused on resilient supply chain design. However, the integration of resilient and robust supply chain design is less well studied. The purpose of the paper is to include resilience and robustness into supply chain design.

Design/methodology/approach

The paper develops a method to include resilience and robustness into supply chain design. Using the region of West Africa, which is plagued with persisting logistical issues, the authors develop a regional risk assessment framework and then apply categorical risk to the countries of West Africa using publicly available data. A scenario reduction technique is used to focus on the highest risk scenarios for the model to be tractable. Next, the authors develop a mathematical model leveraging this framework to design a resilient supply network that minimizes cost while ensuring the network functions following a disruption. Finally, the authors examine the network's robustness to demand uncertainty via several plausible emergency scenarios.

Findings

The authors provide optimal sets of transshipment hubs with varying counts from 5 through 15 hubs. The authors determine there is no feasible solution that uses only five transshipment hubs. The authors' findings reinforce those seven transshipment hubs – the solution currently employed in West Africa – is the cheapest architecture to achieve resilience and robustness. Additionally, for each set of feasibility transshipment hubs, the authors provide connections between hubs and demand spokes.

Originality/value

While, at the time of this research, three other manuscripts incorporated both resilience and robustness of the authors' research unique solved the problem as a network flow instead of as a set covering problem. Additionally, the authors establish a novel risk framework to guide the required amount of redundancy, and finally the out research proposes a scenario reduction heuristic to allow tractable exploration of 512 possible demand scenarios.

Details

Journal of Defense Analytics and Logistics, vol. 5 no. 2
Type: Research Article
ISSN: 2399-6439

Keywords

Article
Publication date: 5 July 2022

Mahesh Babu Mariappan, Kanniga Devi, Yegnanarayanan Venkataraman and Samuel Fosso Wamba

The purpose of this study is to present a large-scale real-world comparative study using pre-COVID lockdown data versus post-COVID lockdown data on predicting shipment times of…

Abstract

Purpose

The purpose of this study is to present a large-scale real-world comparative study using pre-COVID lockdown data versus post-COVID lockdown data on predicting shipment times of therapeutic supplies in e-pharmacy supply chains and show that our proposed methodology is robust to lockdown effects.

Design/methodology/approach

The researchers used organic data of over 5.9 million records of therapeutic shipments, with 2.87 million records collected pre-COVID lockdown and 3.03 million records collected post-COVID lockdown. The researchers built various Machine Learning (ML) classifier models on the two datasets, namely, Random Forest (RF), Extra Trees (XRT), Decision Tree (DT), Multi-Layer Perceptron (MLP), XGBoost (XGB), CatBoost (CB), Linear Stochastic Gradient Descent (SGD) and the Linear Naïve Bayes (NB). Then, the researchers stacked these base models and built meta models on top of them. Further, the researchers performed a detailed comparison of the performances of ML models on pre-COVID lockdown and post-COVID lockdown datasets.

Findings

The proposed approach attains performance of 93.5% on real-world post-COVID lockdown data and 91.35% on real-world pre-COVID lockdown data. In contrast, the turn-around times (TAT) provided by therapeutic supply logistics providers are 62.91% accurate compared to reality in post-COVID lockdown times and 73.68% accurate compared to reality pre-COVID lockdown times. Hence, it is clear that while the TAT provided by logistics providers has deteriorated in the post-pandemic business climate, the proposed method is robust to handle pandemic lockdown effects on e-pharmacy supply chains.

Research limitations/implications

The implication of the study provides a novel ML-based framework for predicting the shipment times of therapeutics, diagnostics and vaccines, and it is robust to COVID-19 lockdown effects.

Practical implications

E-pharmacy companies can readily adopt the proposed approach to enhance their supply chain management (SCM) capabilities and build resilience during COVID lockdown times.

Originality/value

The present study is one of the first to perform a large-scale real-world comparative analysis on predicting therapeutic supply shipment times in the e-pharmacy supply chain with novel ML ensemble stacking, obtaining robust results in these COVID lockdown times.

Details

International Journal of Physical Distribution & Logistics Management, vol. 52 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 19 May 2022

Atul Kumar Sahu, Mahak Sharma, Rakesh D. Raut, Anoop Kumar Sahu, Nitin Kumar Sahu, Jiju Antony and Guilherme Luz Tortorella

Today, proficient practices are required to stimulate along various boundaries of the supply chain (SC) to exploit manufacturing resources economically, effectually and gracefully…

1223

Abstract

Purpose

Today, proficient practices are required to stimulate along various boundaries of the supply chain (SC) to exploit manufacturing resources economically, effectually and gracefully for retaining operational excellence. Accordingly, varieties of paramount practices, i.e. Lean, Agile, Resilient and Green practices, are integrated in present study with the objective to develop a Decision Support Framework (DSF) to select robust supplier under the extent of Lean-Agile-Resilient-Green (LARG) practices for a manufacturing firm. The framework is developed and validated in the Indian automotive sector, where the primary data is collected based on perceptions of the respondents working in an automotive company.

Design/methodology/approach

LARG metrics can ponder ecological balance, customer satisfaction, associations, effectiveness and sustainability and thus, the study consolidated LARG practices in one umbrella to develop a DSF. The analytical approach under DSF is developed by the integration AHP, DEMATEL, ANP, Extended MOORA and SAW techniques in present study to evaluate a robust supplier under the aegis of LARG practices in SC. DSF is developed by scrutinizing and categorizing LARG characteristics, where the selected LARG characteristics are handled by fuzzy sets theory to deal with the impreciseness and uncertainty in decision making.

Findings

The study has identified 63 measures (15 for Lean, 15 for Agile, 14 for resilient and 19 for Green) to support the robust supplier selection process for manufacturing firms. The findings of study explicate “Internal communication agility”, “Interchangeability to personnel resources”, “Manufacturing flexibility”, “degree of online solution”, “Quickness to resource up-gradation”, “Manageability to demand and supply change”, “Overstocking inventory practices” as significant metrics in ranking order. Additionally, “Transparency to share information”, “Internal communication agility”, “Manufacturing Flexibility”, “Green product (outgoing)” are found as influential metrics under LARG practices respectively.

Practical implications

A technical DSF to utilize by the managers is developed, which is connected with knowledge-based theory and a case of an automobile manufacturing firm is presented to illustrate its implementation. The companies can utilize presented DSF to impose service excellence, societal performance, agility and green surroundings in SC for achieving sustainable outcomes to be welcomed by the legislations, society and rivals. The framework represents an important decision support tool to enable managers to overcome imprecise SC information sources.

Originality/value

The study presented a proficient platform to review the most significant LARG alternative in the SC. The study suggested a cluster of LARG metrics to support operational improvement in manufacturing firms for shifting gear toward sustainable SC practices. The present study embraces its existence in enrolling a high extent of collaboration amongst clients, project teams and LARG practices to virtually eradicate the likelihood of absolute project failure.

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