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Article

Huthaifa AL-Khazraji, Colin Cole and William Guo

The purpose of this study is to propose a new dynamic model of a production-inventory control system. The objective of the new model is to maximise the flexibility of the…

Abstract

Purpose

The purpose of this study is to propose a new dynamic model of a production-inventory control system. The objective of the new model is to maximise the flexibility of the system so that it can be used by decision makers to design inventory systems that adopt various strategies that provide a balance between reducing the bullwhip effect and improving the responsiveness of inventory performance.

Design/methodology/approach

The proposed production-inventory control system is modelled and analysed via control theory and simulations. The production-inventory feedback control system is modelled through continuous time differential equations. The simulation experiments design is conducted by using the state-space model of the system. The Automatic Pipeline Inventory and Order-Based Production Control System (APIOBPCS) model is used as a benchmark production-inventory control system.

Findings

The results showed that the Two Automatic Pipelines, Inventory and Order-Based Production Control System (2APIOBPCS) model outperforms APIOBPCS in terms of reducing the bullwhip effect. However, the 2APIOBPCS model has a negative impact on Customer Service Level. Therefore, with careful parameter setting, it is possible to design control decisions to be suitably responsive while generating smooth order patterns and obtain the best trade-off of the two objectives.

Research limitations/implications

This research is limited to the dynamics of single-echelon production-inventory control systems with zero desired inventory level.

Originality/value

This present model is an extension and improvement to Towill’s (1982) and John et al.’s (1994) work, since it presents a new dynamic model of a production-inventory control system which utilises an additional flow of information to improve the efficiency of order rate decisions.

Details

Kybernetes, vol. 46 no. 10
Type: Research Article
ISSN: 0368-492X

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Book part

Mohammad Shamsuddoha

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from…

Abstract

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78560-707-3

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Book part

Md Nuruzzaman

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in…

Abstract

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.

This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78441-764-2

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Article

D.R. Towill

The learning effect is well established in the repetitive performance of industrial tasks and it is essential that production management be aware of the potential for…

Abstract

The learning effect is well established in the repetitive performance of industrial tasks and it is essential that production management be aware of the potential for improved performance (measured by dynamic gain) and the rate at which this may be achieved/measured by the time constraint. Performance and contingency logging and trend modelling should be part of the management information system so that the appropriate learning curve can be established and stored in the databank for future planning purposes. The application of the learning curve to batch production shows that performance slippage caused by elapsed time between batch completions is a significant factor in manufacturing time increase, and, hence, labour costs. This should be allowed for when optimising batch production policy, forecasting deliveries, and

Details

International Journal of Operations & Production Management, vol. 5 no. 2
Type: Research Article
ISSN: 0144-3577

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Article

D.R. Towill, M.M. Naim and J. Wikner

Reviews the dynamic operation of supply chains and reaches somesimple conclusions for reducing demand amplification, which consequentlyattenuates swings in both production…

Abstract

Reviews the dynamic operation of supply chains and reaches some simple conclusions for reducing demand amplification, which consequently attenuates swings in both production rates and stock levels. The results are based on one particular supply chain, for which the use of systems simplification techniques has generated valuable insight into supply chain design. Although different strategies are compared for reducing demand amplification as witnessed by one particular supply chain model, the conclusions are nevertheless thought to have wide application and, indeed, implication. Comments in depth on the significance of the simulation results for the demand chain as a whole, and for the role of an individual business within the chain. In the first instance, supply chain integration, and in particular free exchange of information, is a prerequisite for progress. In the second case, shows that reduction in lead times throughout the supply chain via JIT is similarly beneficial. Clearly pinpoints the limitation to supply chain improvement which can be obtained as a result of using JIT alone. This can be an expensive and ongoing process of improvement with many spin‐off benefits. Nevertheless, shows that the improvement possible by JIT operation of an individual business can be negated by the failure to design and manage the supply chain dynamics as a total system. The message for an individual business is thus quite specific. Not only must lead times be reduced via JIT, but also the business must seek to be part of the right supply chain, if it is to remain competitive and stable.

Details

International Journal of Physical Distribution & Logistics Management, vol. 22 no. 5
Type: Research Article
ISSN: 0960-0035

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Article

Moon and Seong‐Am

Aims to discuss the basic strategy taken by a specific manufacturer. States supply chain structures influence, directly, the supply chain inventory as a measure of…

Abstract

Aims to discuss the basic strategy taken by a specific manufacturer. States supply chain structures influence, directly, the supply chain inventory as a measure of performance. Examines the difference in the supply chain in relation to the manufacturer’s strategy to the product.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 16 no. 2
Type: Research Article
ISSN: 1355-5855

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Article

G.N. Evans, M.M. Naim and D.R. Towill

Outlines cost benefits for information system implementation usingelectronic data interchange as the enabling tool. Highlights rarelycited on‐cost benefits through the…

Abstract

Outlines cost benefits for information system implementation using electronic data interchange as the enabling tool. Highlights rarely cited on‐cost benefits through the examination of supply chain dynamics, and their relative reductions created through increased stability. Examines two business re‐design strategies, namely lead time reduction via information systems implementation and information integration in the form of actual customer demand fed forward to all supply chain members. Highlights global integrated logistics information systems and describes their role in overall supply chain system optimization.

Details

Logistics Information Management, vol. 6 no. 4
Type: Research Article
ISSN: 0957-6053

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Abstract

Details

Strategic Information System Agility: From Theory to Practices
Type: Book
ISBN: 978-1-80043-811-8

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Article

Seyed Hamid Reza Pasandideh, Seyed Taghi Akhavan Niaki and Pejman Ahmadi

In this paper, the joint replenishment problem is modeled for a two-level supply chain consisting of a single supplier and multiple retailers that use the vendor-managed…

Abstract

Purpose

In this paper, the joint replenishment problem is modeled for a two-level supply chain consisting of a single supplier and multiple retailers that use the vendor-managed inventory (VMI) policy for several products. This paper aims to find the optimal number of products to order in both policies, the optimal times at which each retailer orders the products in the traditional policy and the optimal times at which the supplier orders the product in the VMI policy.

Design/methodology/approach

The problem is first formulated into the framework of a constrained integer nonlinear programming model; then, the problem is solved using a teacher-learner based optimization algorithm. As there are no benchmarks available in the literature, a genetic algorithm is used as well to validate the results obtained.

Findings

The solutions obtained using both the algorithms for several numerical examples are compared to the ones of a random search procedure for further validation. A real case is solved at the end to demonstrate the applicability of the proposed methodology and to compare both the policies.

Research limitations/implications

The paper does not have any special limitations.

Practical implications

The study has significant practical implications for the sellers and for the suppliers who have to get the most profit. Also, satisfying the constraints make decision more complicated.

Originality/value

This paper has two main originalities. The authors have developed the model of the joint replenishment problem and have contributed in the problem-solving process. They have used a new meta-heuristic and then compared it to a classic one.

Details

Journal of Modelling in Management, vol. 13 no. 1
Type: Research Article
ISSN: 1746-5664

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Article

P. Childerhouse and D.R. Towill

The purpose of this paper is to discuss the theoretical foundations, development, and application of the quick scan audit methodology (QSAM) for comparative evaluation of…

Abstract

Purpose

The purpose of this paper is to discuss the theoretical foundations, development, and application of the quick scan audit methodology (QSAM) for comparative evaluation of supply chains via uncertainty codification and material flow assessment.

Design/methodology/approach

Charts the evolution of QSAM via the Parnaby concept of a manufacturing system leading to a control model representation of a value stream. Monitoring in process and critical interface material and information flows provide the substantive data to evaluate supply chain health. The authors show how QSAM satisfies the six desirable attributes previously established as advantageous when value stream auditing.

Findings

Basing QSAM on this particular systems approach readily leads to transferability of approach to new market sectors and new companies within the same sector. It ensures comparability via uncertainty levels to be established. Hence, using statistical cluster analysis “best practice” may be identified and annotated.

Research limitations/implications

There may yet be specific supply chain regimens where uncertainty codification is insufficient to reach a definitive conclusion. However, QSAM is now sufficiently mature that it has been applied successfully and widely beyond its original systems‐friendly European automotive sector.

Practical implications

A systematic, non‐industry‐specific audit method based on systems modelling builds confidence into comparability studies and identification of “exemplars” exhibiting best practice. The importance of understanding and satisfying the expectations of the four “players” in the QSAM balanced scorecard is discussed and exemplified.

Originality/value

QSAM is an original contribution which fits well into the spectrum of excellence measurement techniques. The two established extremes are vertical case studies (European style) and horizontal surveys (US style). QSAM brings together certain strengths of each so that the whole is greater than the sum of the parts.

Details

Journal of Manufacturing Technology Management, vol. 22 no. 5
Type: Research Article
ISSN: 1741-038X

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