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Article
Publication date: 1 June 2021

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.

Article
Publication date: 1 April 2020

Binghai Zhou and Zhexin Zhu

This paper aims to investigate the scheduling and loading problems of tow trains for mixed-model assembly lines (MMALs). An in-plant milk-run delivery model has been formulated to…

Abstract

Purpose

This paper aims to investigate the scheduling and loading problems of tow trains for mixed-model assembly lines (MMALs). An in-plant milk-run delivery model has been formulated to minimize total line-side inventory for all stations over the planning horizon by specifying the departure time, parts quantity of each delivery and the destination station.

Design/methodology/approach

An immune clonal selection algorithm (ICSA) combined with neighborhood search (NS) and simulated annealing (SA) operators, which is called the NSICSA algorithm, is developed, possessing the global search ability of ICSA, the ability of SA for escaping local optimum and the deep search ability of NS to get better solutions.

Findings

The modifications have overcome the deficiency of insufficient local search and deepened the search depth of the original metaheuristic. Meanwhile, good approximate solutions are obtained in small-, medium- and large-scale instances. Furthermore, inventory peaks are in control according to computational results, proving the effectiveness of the mathematical model.

Research limitations/implications

This study works out only if there is no breakdown of tow trains. The current work contributes to the in-plant milk-run delivery scheduling for MMALs, and it can be modified to deal with similar part feeding problems.

Originality/value

The capacity limit of line-side inventory for workstations as well as no stock-outs rules are taken into account, and the scheduling and loading problems are solved satisfactorily for the part distribution of MMALs.

Details

Assembly Automation, vol. 40 no. 3
Type: Research Article
ISSN: 0144-5154

Keywords

Article
Publication date: 28 January 2020

Mohammad Saeid Atabaki, Seyed Hamid Reza Pasandideh and Mohammad Mohammadi

Lot-sizing is among the most important problems in the production and inventory management field. The purpose of this paper is to move one step forward in the direction of the…

Abstract

Purpose

Lot-sizing is among the most important problems in the production and inventory management field. The purpose of this paper is to move one step forward in the direction of the real environment of the dynamic, multi-period, lot-sizing problem. For this purpose, a two-warehouse inventory system, imperfect quality and supplier capacity are simultaneously taken into consideration, where the aim is minimization of the system costs.

Design/methodology/approach

The problem is formulated in a novel continuous nonlinear programming model. Because of the high complexity of the lot-sizing model, invasive weed optimization (IWO), as a population-based metaheuristic algorithm, is proposed to solve the problem. The designed IWO benefits from an innovative encoding–decoding procedure and a heuristic operator for dispersing seeds. Moreover, sequential unconstrained minimization technique (SUMT) is used to improve the efficiency of the IWO.

Findings

Taking into consideration a two-warehouse system along with the imperfect quality items leads to model nonlinearity. Using the proposed hybrid IWO and SUMT (SUIWO) for solving small-sized instances shows that SUIWO can provide satisfactory solutions within a reasonable computational time. In comparison between SUIWO and a parameter-tuned genetic algorithm (GA), it is found that when the size of the problem increases, the superiority of SUIWO to GA to find desirable solutions becomes more tangible.

Originality/value

Developing a continuous nonlinear model for the concerned lot-sizing problem and designing a hybrid IWO and SUMT based on a heuristic encoding–decoding procedure are two main originalities of the present study.

Details

Journal of Modelling in Management, vol. 15 no. 4
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 6 August 2018

Amir Hossein Niknamfar, Seyed Armin Akhavan Niaki and Marziyeh karimi

The purpose of this study is to develop a novel and practical series-parallel inventory-redundancy allocation system in a green supply chain including a single manufacturer and…

Abstract

Purpose

The purpose of this study is to develop a novel and practical series-parallel inventory-redundancy allocation system in a green supply chain including a single manufacturer and multiple retailers operating in several positions without any conflict of interests. The manufacturer first produces multi-product and then dispatches them to the retailers at different wholesale prices based on a common replenishment cycle policy. In contrast, the retailers sell the purchased products to customers at different retail prices. In this way, the manufacturer encounters a redundancy allocation problem (RAP), in which the solution subsequently enhances system production reliability. Furthermore, to emphasize on global warming and human health concerns, this paper pays attention both the tax cost of industrial greenhouse gas (GHG) emissions of all produced products and the limitation for total GHG emissions.

Design/methodology/approach

The manufacturer intends not only to maximize the total net profit but also to minimize the mean time to failure of his production system using a RAP. To achieve these objectives, the max-min approach associated with the solution method known as the interior point method is utilized to maximize the minimum (the worst) value of the objective functions. Finally, numerical experiments are presented to further demonstrate the applicability of the proposed methodology. Sensitivity analysis on the green supply chain approach is also performed to obtain more insight.

Findings

The computational results showed that increasing the number of products and retailers might lead into a substantial increase in the total net profit. This indicated that the manufacturer would feel adding a new retailer to the green supply chain strongly. Moreover, an increase in the number of machines provides significant improvement in the reliability of the production system. Furthermore, the results of the performed sensitivity analysis on the green approach indicated that increasing the number of machines has a substantial impact on both the total net profit and the total tax cost. In addition, not only the proposed green supply chain was more efficient than the supply chain without green but also the proposed green supply chain was very sensitive to the tax cost of GHG emission rather than the number of machines.

Originality/value

In summary, the motivations are as follows: the development of a bi-objective series-parallel inventory-RAP in a green supply chain; proposing a hybrid inventory-RAP; and considering the interior point solution method. The novel method comes from both theoretical and experimental techniques. The paper also has industrial applications. The advantage of using the proposed approach is to generate additional opportunities and cost effectiveness for businesses and companies that operate utilizing the green supply chain under an inventory model.

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: 1 August 2000

Richard J. Tersine and John G. Wacker

Traditionally, aggregate inventory realignment has tended to be a reactive response to crisis signals revealed by financial performance measurements. Symptoms and problems are…

5311

Abstract

Traditionally, aggregate inventory realignment has tended to be a reactive response to crisis signals revealed by financial performance measurements. Symptoms and problems are usually confounded, while corrective actions are localized with less than adequate customer connectivity. This article links inventory requirements to customer requirements for response, quality, and their benefit‐to‐cost ratio by focusing on reduction of valueless time, valueless activity, and valueless variance in business processes. Interestingly, what satisfies customers can also efficiently align inventory. Several maxims are introduced throughout the paper to align the purpose and significance of inventory to a customer context.

Details

International Journal of Agile Management Systems, vol. 2 no. 2
Type: Research Article
ISSN: 1465-4652

Keywords

Article
Publication date: 2 August 2013

Saurabh Chandra, Rajiv K. Srivastava and Yogesh Agarwal

The ocean transportation of automobiles is carried out by specialized Roll‐on/Roll‐off ships, which are designed to carry a large number of automobiles at a time. Many of these…

Abstract

Purpose

The ocean transportation of automobiles is carried out by specialized Roll‐on/Roll‐off ships, which are designed to carry a large number of automobiles at a time. Many of these shipping companies have vertically integrated or collaborated with other logistics services providers to offer integrated maritime logistics solution to car manufacturers. The purpose of this study is to develop an optimization model to address the tactical level maritime logistics planning for such a company.

Design/methodology/approach

The problem is formulated as a mixed integer linear program and we propose an iterative combined Ant colony and linear programming‐based solution technique for the same.

Findings

This paper can integrate the maritime transportation planning of internally managed cargoes with the inventory management at the loading and discharging ports to minimize supply‐chain cost and also maximize additional revenue through optional cargoes using same fleet of ships.

Research limitations/implications

The mathematical model does not consider the variability in production and consumption of products across various locations, travel times between different nodes, etc.

Practical implications

The suggested mathematical model to the supply‐chain planning problem and solution technique can be considered in the development of decision support system for operations planning.

Originality/value

This paper extends the maritime inventory routing model by considering simultaneous planning of optional cargoes with internally managed cargoes.

Details

Journal of Advances in Management Research, vol. 10 no. 2
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 17 July 2007

Jennifer Stacey, Malini Natarajarathinam and Charles Sox

This paper aims to describe the storage constrained, inbound inventory routeing problem and presents bounds and heuristics for solutions to this problem. It also seeks to analyze…

3263

Abstract

Purpose

This paper aims to describe the storage constrained, inbound inventory routeing problem and presents bounds and heuristics for solutions to this problem. It also seeks to analyze various characteristics of this problem by comparing the solutions generated by the two proposed heuristics with each other and with the lower bound solutions.

Design/methodology/approach

The proposed heuristics use a sequential decomposition strategy for generating solutions for this problem. These heuristics are evaluated on a set of problem instances which are based on an actual application in the automotive manufacturing industry.

Findings

The storage space clearly has a significant effect on both the routeing and inventory decisions, and there are complex and interesting interactions between the problem factors and performance measures.

Practical implications

Facility design decisions for the storage of inbound materials should carefully consider the impact of storage space on transportation and logistics costs.

Originality/value

This problem occurs in a number of different industrial applications while most of the existing literature addresses outbound distribution. Other papers that address similar problems do not consider all of the practical constraints in the problem or do not adequately benchmark and analyze their proposed solutions.

Details

International Journal of Physical Distribution & Logistics Management, vol. 37 no. 6
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 12 January 2024

Pengyun Zhao, Shoufeng Ji and Yuanyuan Ji

This paper aims to introduce a novel structure for the physical internet (PI)–enabled sustainable supplier selection and inventory management problem under uncertain environments.

Abstract

Purpose

This paper aims to introduce a novel structure for the physical internet (PI)–enabled sustainable supplier selection and inventory management problem under uncertain environments.

Design/methodology/approach

To address hybrid uncertainty both in the objective function and constraints, a novel interactive hybrid multi-objective optimization solution approach combining Me-based fuzzy possibilistic programming and interval programming approaches is tailored.

Findings

Various numerical experiments are introduced to validate the feasibility of the established model and the proposed solution method.

Originality/value

Due to its interconnectedness, the PI has the opportunity to support firms in addressing sustainability challenges and reducing initial impact. The sustainable supplier selection and inventory management have become critical operational challenges in PI-enabled supply chain problems. This is the first attempt on this issue, which uses the presented novel interactive possibilistic programming method.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 15 August 2018

Gia-Shie Liu and Kuo-Ping Lin

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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