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1 – 10 of 68Dilupa Nakandala, Henry Lau and Jingjing Zhang
Logistics practitioners must continually improve inventory management processes as they daily respond to the twin drivers of customer satisfaction and cost efficiency. The purpose…
Abstract
Purpose
Logistics practitioners must continually improve inventory management processes as they daily respond to the twin drivers of customer satisfaction and cost efficiency. The purpose of this paper is to investigate the scenario of sourcing goods through lateral transshipments in a periodic-review policy setting, against a backdrop of cost optimization objectives.
Design/methodology/approach
The authors develop decision rules that make cost-optimized selection between backordering and combined reactive and proactive lateral transshipment options possible. This necessarily takes account of the trade-off between purchasing, holding and backorder cost components. In addition, the authors use simulation studies to illustrate the superior performance of the proposed decision options.
Findings
According to results of the simulation studies, the proposed two-step decision rule generates the lower inventory cost than the alternative decisions rules. The outperformance of proposed two-step decision rule is valid in different scenario.
Practical implications
This study develops the decision rules to assist wholesaler logistics practitioners to make optimized decisions with regard to whether they should proactively lateral transshipments and if selected, the optimum size of the extra lateral transshipment.
Originality/value
This study has made a significant contribution to the existing knowledge base as it develops decision rules for a combined proactive and reactive approach using lateral transhipments to meet both urgent demand and a part of the demand expected during the supplier lead time in a cost-efficient way.
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Sebastian H.W. Stanger, Richard Wilding, Evi Hartmann, Nicola Yates and Sue Cotton
Are lateral transshipments an effective instrument to ensure the safe and efficient supply of blood? This paper will use the lens of institutional theory to determine how the…
Abstract
Purpose
Are lateral transshipments an effective instrument to ensure the safe and efficient supply of blood? This paper will use the lens of institutional theory to determine how the blood supply chain can benefit from lateral transshipments and what requirements are necessary for their implementation. The paper aims to discuss these issues.
Design/methodology/approach
The research design comprises two stages. First, 16 case studies clustered into two case groups were conducted with transfusion laboratories in UK hospitals resulting in the derivation of eight key themes which were tested using a follow-up survey.
Findings
The blood supply chain acts under the influence of significant institutional pressures. Coercive pressures result from regulations enforced to ensure the safe supply of blood, normative pressures are imposed by society, demanding wastage is minimized and mimetic pressure from other hospitals fosters efficient supply chain operation. Lateral transshipments offer a powerful organizational tool to allow the blood supply chain to conform to these pressures.
Research limitations/implications
This paper offers a novel institutional perspective on a complex supply chain issue where additional external pressures are seen to complicate the context. Due to the special characteristics of the blood supply chain, generalization of the findings to other industries must be done with care.
Practical implications
The paper confirms the benefits of lateral transshipments in a perishable product context. Special requirements for the blood supply chain/health care services are identified.
Originality/value
The key contributions of this paper are five propositions which offer an institutional theory perspective on the application of lateral transshipment relationships in the blood supply chain.
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Kaustav Kundu and Matteo Rossini
The purpose of this paper is to develop a simulation model to evaluate inventory and distribution decisions like lateral transshipments in a network with multiple products.
Abstract
Purpose
The purpose of this paper is to develop a simulation model to evaluate inventory and distribution decisions like lateral transshipments in a network with multiple products.
Design/methodology/approach
Data are collected from a company, and a discrete-event simulation in Python is developed to support the decision-making process of managers through different algorithms of lateral transshipments.
Findings
The numerical results show that the periodic delivery-continuous reorder policy is more robust than the others because the reorder process is not affected by the higher saturation that is achieved by periodic reorder–based policies. The new lateral transshipment algorithm will lead to huge savings in logistics costs for any company and increase truck saturation without causing a decrease in the service level.
Research limitations/implications
This paper provides a novel institutional perspective on a complex logistics issue where COVD-19 is believed to complicate the context.
Practical implications
This solution is devised for any company to achieve even greater benefits in terms of customer service improvement and logistics costs reduction.
Originality/value
The main contribution of this paper is the proposal of a new lateral transshipment algorithm that shows performance improvement by simulating distribution network processes according to different configurations.
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Dilupa Nakandala, Henry Lau and Andrew Ning
When making sourcing decisions, both cost optimization and customer demand fulfillment are equally important for firm competitiveness. The purpose of this paper is to develop a…
Abstract
Purpose
When making sourcing decisions, both cost optimization and customer demand fulfillment are equally important for firm competitiveness. The purpose of this paper is to develop a stochastic search technique, hybrid genetic algorithm (HGA), for cost-optimized decision making in wholesaler inventory management in a supply chain network of wholesalers, retailers and suppliers.
Design/methodology/approach
This study develops a HGA by using a mixture of greedy-based and randomly generated solutions in the initial population and a local search method (hill climbing) applied to individuals selected for performing crossover before crossover is implemented and to the best individual in the population at the end of HGA as well as gene slice and integration.
Findings
The application of the proposed HGA is illustrated by considering multiple scenarios and comparing with the other commonly adopted methods of standard genetic algorithm, simulated annealing and tabu search. The simulation results demonstrate the capability of the proposed approach in producing more effective solutions.
Practical implications
The pragmatic importance of this method is for the inventory management of wholesaler operations and this can be scalable to address real contexts with multiple wholesalers and multiple suppliers with variable lead times.
Originality/value
The proposed stochastic-based search techniques have the capability in producing good-quality optimal or suboptimal solutions for large-scale problems within a reasonable time using ordinary computing resources available in firms.
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Qi Sun, Yaya Gao, Qihui Lu and Yingyi Yan
Different external supply scenarios faced by the retailers will affect their choice of strategy when supply is disrupted and becomes far less than demand, urgently. This study…
Abstract
Purpose
Different external supply scenarios faced by the retailers will affect their choice of strategy when supply is disrupted and becomes far less than demand, urgently. This study focuses on analyzing both demand and supply side response strategies to meet customer demand and reduce the impact of the shortage during supply disruptions.
Design/methodology/approach
According to the quantity of products that the external market can provide, the external supply scenarios were divided into sufficient-type external supply and learning-type external supply. A two-echelon perishable goods supply chain was analyzed, and three kinds of contingency strategy models for downstream retailers were investigated. First, in the sufficient external supply scenario, the optimal price and transshipment quantity to maximize retailer's profits is discussed. Second, in the scenario of learning-type external supply, this study analyzes the optimal decision in three mechanisms of the hybrid strategy and their application: price priority mechanism, quantity priority mechanism and price–quantity balance mechanism. Furthermore, the influence of penalty cost and supply on the priority orders of different mechanisms was studied.
Findings
Results show that comparing the two pure strategies (pricing strategy and transshipment strategy)it was noted that the hybrid strategy produces the best results in sufficient-type external supply scenario. In the learning-type external supply scenario, a numerical study has shown the existence of three areas in case of penalty cost and supplier's capacity, and each areas has different priority orders of the three mechanisms. Under the situation of learning external supply, the retailer's optimal strategy is affected by parameters such as penalty cost and supply volume.
Originality/value
The main innovation of the work lies in the following: First; the external supply situation was divided into sufficiency type and learning type, which improves the external situation faced by retailers after the outbreak of emergencies, helps retailers understand the external situation, conforms to the actual situation and has certain practical application value. Second; in the context of learning external supply, there are three coping strategies for retailers, including: Price priority mechanism, Quantity priority mechanism and Pricing and transshipment balance mechanism. This will help retailers make strategic choices, make more scientific management decisions and improve the supply chain emergency management theory. Third; the demand side response was managed through the change of external supply during supply side recovery period and supply disruption. The proposed model enables managing and analyzing supply disruption efficiently and effectively via handling uncertainty by considering all aspects of decision-making process. The proposed model can be applied in various fields such as vegetable and fruit, fresh food, etc.
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Dilupa Nakandala, Meg Smith and Henry Lau
The purpose of this paper is to investigate supply chain relationships in an urban local fresh food system from a retailer perspective to examine the types of relationships and…
Abstract
Purpose
The purpose of this paper is to investigate supply chain relationships in an urban local fresh food system from a retailer perspective to examine the types of relationships and the factors underpinning the development of such relationships.
Design/methodology/approach
Using the multiple case study method, interview data from twelve urban local fresh food retailers in Sydney were analysed using the thematic analysis.
Findings
This study finds that balanced power relationships in the supply chain allow reasonable power to sit with growers in product price determination irrespective of the dependency of small-scale growers on relatively large local retailers. Trust-based relationships are developed over multiple transactions, where shared values across the supply chain and consistently low opportunistic behaviour in reward sharing are demonstrated to be the crucial factors underpinning close relationships. This study also found evidence of horizontal supply chain linkages among retailers in a competitive environment.
Practical implications
Findings of this study have implications for policymakers in designing urban fresh food systems and for practitioners in large urban retailers including supermarkets that attempt to integrate local food into their product portfolio.
Originality/value
This study extends the local food system literature dominated by rural studies to include new knowledge about the dynamics of collaborations in contemporary urban local fresh food supply chains. It provides the first empirical evidence of lateral inventory transshipment between retailers in a competitive environment confirming previous simulation studies.
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Shuguang Liu, Jun Lin and Karen A. Hayes
Recent trends of outsourcing in global competition make the firms vulnerable to operational risks. The purpose of this paper is to illustrate how firms implement supply chain…
Abstract
Purpose
Recent trends of outsourcing in global competition make the firms vulnerable to operational risks. The purpose of this paper is to illustrate how firms implement supply chain strategies to reduce operational risks, especially risk exposure involving catastrophic events.
Design/methodology/approach
Drawn on risk management and supply chain research, the concepts of operational risk and the underlying demand and supply uncertainties are delineated. Then, based on literature review and numerical demonstrations, the authors evaluate the effectiveness of supply chain strategies in reducing operational risks. The paper examines the benefit of these strategies and illustrate how to setup risk pooling and dual sourcing programs.
Findings
Employing the strategies of risk pooling and dual sourcing, an agile and diversified supply chain can be built to cope with the demand or supply uncertainties and in turn reduce the operational risks.
Practical implications
Leaders in any organization should consider operational and supply risk critically when planning their competitive strategy. They could foster creative solutions in supply chain strategies and essentially enhance competitiveness.
Originality/value
The paper highlights the tension between outsourcing trend in pursuit of competitive advantage and risk exposure to catastrophic events. This paper fulfils a practical need for better understanding of how supply chain strategies could be implemented to reduce operational risks.
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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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This paper posits that arm’s length buyer‐supplier relationship as the intermediate type between market exchange relations and strategic partnership might be advisable, and…
Abstract
This paper posits that arm’s length buyer‐supplier relationship as the intermediate type between market exchange relations and strategic partnership might be advisable, and information technology may have a role as a mechanism actualizing the effects of such arm’s length relationship by strategic supply‐line diversification. Based on the theoretical analysis on interactive feedback relationships among IT level, buyer‐supplier relationships, and supply chain structure, we suggest a set of advisable buyer‐ supplier relationship type for efficient supply chain management. Also, doing so would be helpful in suggesting a dynamic IT investment and adoption model appropriate for the establishment of productive buyer‐supplier relationship, and further in providing theoretical foundations and practical guidelines on the role and function of B‐to‐B E‐commerce for efficient SC integration.
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Daniel Taylor, Sebastian Brockhaus, A. Michael Knemeyer and Paul Murphy
Since the emergence of e-commerce uprooted traditional brick-and-mortar retail in the early 2000s, many retailers have reacted by first independently servicing both the online and…
Abstract
Purpose
Since the emergence of e-commerce uprooted traditional brick-and-mortar retail in the early 2000s, many retailers have reacted by first independently servicing both the online and in-store channels (multichannel retailing) and subsequently integrating both channels to provide a seamless front-end customer interface (omnichannel retailing). Accordingly, firms had to adjust their logistics and supply chain management (SCM) processes from fulfilling orders for each channel separately to integrating channels on the back-end (omnichannel fulfillment). This development is mirrored by an emerging stream of academic publications. The purpose of this paper is to provide a snapshot of the current state of omnichannel fulfillment research via a systematic literature review (SLR) in order to identify omnichannel fulfillment strategies and to establish an agenda for future inquiry.
Design/methodology/approach
This SLR is based on 104 papers published in peer-reviewed journals through December 2018. It employs a six-step process, from research question to the presentation of the insights.
Findings
All selected manuscripts are categorized based on demographics such as publication date, outlet, methodology, etc. Analysis of the manuscripts suggests that the integration of fulfillment channel inventory and resources is becoming an important objective of fulfillment management. Appropriate omnichannel strategies based on retailer attributes are not well understood. Industry specific research has been conducted necessitating generalized extension for retailers. These findings provide a clear opportunity for the academic community to take more of the lead in terms of knowledge creation by proposing paths for industry pursuit of channel integration to successfully implement omnichannel fulfillment. Opportunities for future inquiry are highlighted.
Originality/value
This manuscript proposes a definition of omnichannel fulfillment strategies and identifies fulfillment links that are used interchangeably across channels as the key delimiter between omnichannel fulfillment strategies and related concepts. Six omnichannel fulfillment strategies from the extant literature are identified and conceptualized. Future research opportunities around omnichannel fulfillment, potential interdependencies between the established strategies and their impact on related SCM issues such as distribution and reverse logistics are detailed.
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