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1 – 4 of 4Vahid Kayvanfar, S.M. Moattar Husseini, Zhang NengSheng, Behrooz Karimi and Mohsen S. Sajadieh
This paper aims to optimize the interactions of businesses located within industrial clusters (ICs) by using a supply-demand hub in ICs (SDHIC) as a conjoint provider of logistics…
Abstract
Purpose
This paper aims to optimize the interactions of businesses located within industrial clusters (ICs) by using a supply-demand hub in ICs (SDHIC) as a conjoint provider of logistics and depository facilities for small- and medium-sized enterprises (SMEs) as producers, where all of these interactions are under supervision of a third-party logistics provider (3PL).
Design/methodology/approach
To evaluate the values of SDHIC, three mathematical models are proposed, optimally solved via GAMS and then compared. Also, a “linear relaxation-based heuristic” procedure is proposed to yield a feasible initial solution within a significant shorter computational time. To illustrate the values of SDHIC, comprehensive calculations over a case study and generated sets of instances are conducted, including several sensitivity analysis.
Findings
The experimental results demonstrate the efficiency of SDHIC for SMEs via combining batches and integrating the holding space of inventories, while the outcomes of the case study are aligned with those obtained from random sample examples, which confirms the trueness of used parameters and reveals the applicability of using SDHIC in real world. Finally, several interesting managerial implications for practitioners are extracted and presented.
Practical implications
Some of the managerial and practical implications are optimizing interactions of businesses involved in a supply chain of an IC containing some customers, suppliers and manufacturers and rectifying the present noteworthy gaps pertaining to the previously published research via using real assumptions and merging upstream and downstream of the supply chain through centralizing on storage of raw materials (supply echelon) and finished products (demand echelon) at the same place simultaneously to challenge a classic concept in which supply and demand echelons were being separately planned regarding their inventory management and logistics activities and showing the positive consequences of such challenge, showing the performance improvement of the proposed model compared to the classic model, by increasing the storing cost of raw materials and finished products, considering some disadvantages of using SDHIC and showing the usefulness of SDHIC in total, presenting some applied findings according to the obtained results of sensitivity analysis.
Originality/value
The key contributions of this paper to the literature are suggesting a new applied mathematical methodology to the supply chain (SC) of ICs by means of a conjoint provider of warehousing activities called SDHIC, comparing the new proposed model with the two classic ones and showing the proposed model’s dominancy, showing the helpful outcomes of collaborating 3PL with the SMEs in a cluster, proposing a “linear relaxation-based heuristic” procedure to yield a feasible initial solution within a significant shorter computational time and minimizing total supply chain costs of such IC by optimum application of facilities, lands and labor.
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Keywords
Vahid Kayvanfar, Mohsen S. Sajadieh, S.M. Moattar Husseini and Behrooz Karimi
In this paper, a multi-objective multi-echelon supply-distribution model is proposed to optimize interactions of entities located within an Industrial Cluster (IC) including…
Abstract
Purpose
In this paper, a multi-objective multi-echelon supply-distribution model is proposed to optimize interactions of entities located within an Industrial Cluster (IC) including small- and medium-sized enterprises (SMEs), using a third-party logistics provider (3PL)-managed supply-demand hub in industrial cluster (SDHIC) as a specific public provider of warehousing and logistics services.
Design/methodology/approach
The three considered objectives are minimizing the total logistics costs, maximizing the rate of demand satisfaction and maximizing the quality of delivery. Because some parameters such as “demand of customers” are naturally fuzzy because of incompleteness and/or inaccessibility of the needed information, the triangular fuzzy number is applied for all fuzzy parameters to handle this difficulty. The proposed model is primarily changed into a correspondent supplementary crisp model. To solve such a model, a revised multi-choice goal programming (RMCGP) approach is then used with the purpose of finding a compromise solution.
Findings
Experimental results demonstrate that all enterprises involved in such a supply chain benefit with several advantages using SDHIC by consolidating shipments and merging the storage space of inventories. The applicability of the presented model is shown by conducting these experiments over an applied industrial case study.
Originality/value
The main contributions of this research are proposing a practical mathematical approach to the supply chain of ICs using a specific public warehouse managed by a 3PL, called SDHIC, bridging the existing gaps with respect to the already published researches in this area by applying real-world assumptions such as uncertainty; optimizing the interactions of involved entities in the supply chain of an IC, comprising suppliers, SMEs as manufacturers and customers; minimizing the total incurred logistics costs to such a system through optimum usage of lands, facilities, labors, etc. and boosting the satisfaction of customers through maximizing the service level criteria, illustrating the positive consequences of cooperation of 3PL with the SMEs/manufacturers in an IC, showing the applicability of the adopted approach by implementing it on an applied industrial instance.
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Amin Zaheri, Majid Rafiee and Vahid Kayvanfar
This paper aims to study the impact of existence and lack of discount on the relationships between one manufacturer and one retailer under the cooperative and the non-cooperative…
Abstract
Purpose
This paper aims to study the impact of existence and lack of discount on the relationships between one manufacturer and one retailer under the cooperative and the non-cooperative games and the members’ profits are compared.
Design/methodology/approach
In the first approach, the manufacturer’s price function is constant, and in the second approach, this price function is a decreasing function with respect to lot size. These approaches are modeled through three games structure, including two Stackelberg games and one cooperative game.
Findings
Some numerical instances comprising sensitivity analysis are provided, and then the members’ profits in different scenarios are compared. This paper reveals that in the presented models, whether the members are inclined to change their profits.
Practical implications
This paper presents a tool of decision-making for the type of relationships of members in two different circumstances, and an approach is also presented to maximize the members’ profit.
Originality/value
In this paper, the relationships between one manufacturer and one retailer are studied under six different circumstances, where pricing, cooperative advertising and inventory cost are considered simultaneously. Also, a different model is presented to make a balance in individual profits and gain more profit for each member compared to the cooperative and non-cooperative game.
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Mohsen Rajabzadeh, Seyed Meysam Mousavi and Farzad Azimi
This paper investigates a problem in a reverse logistics (RLs) network to decide whether to dispose of unsold goods in primary stores or re-commercialize them in outlet centers…
Abstract
Purpose
This paper investigates a problem in a reverse logistics (RLs) network to decide whether to dispose of unsold goods in primary stores or re-commercialize them in outlet centers. By deducting the costs associated with each policy from its revenue, this study aims to maximize the profit from managing unsold goods.
Design/methodology/approach
A new mixed-integer linear programming model has been developed to address the problem, which considers the selling prices of products in primary and secondary stores and the costs of transportation, cross-docking and returning unwanted items. As a result of uncertain nature of the cost and time parameters, gray numbers are used to deal with it. In addition, an innovative uncertain solution approach for gray programming problems is presented that considers objective function satisfaction level as an indicator of optimism.
Findings
According to the results, higher costs, including transportation, cross-docking and return costs, make sending goods to outlet centers unprofitable and more goods are disposed of in primary stores. Prices in primary and secondary stores heavily influence the number of discarded goods. Higher prices in primary stores result in more disposed of goods, while higher prices in secondary stores result in fewer. As a result of the proposed method, the objective function satisfaction level can be viewed as a measure of optimism.
Originality/value
An integral contribution of this study is developing a new mixed-integer linear programming model for selecting the appropriate goods for re-commercialization and choosing the best outlet center based on the products' price and total profit. Another novelty of the proposed model is considering the matching percentage of boxes with secondary stores’ desired product lists and the probability of returning goods due to non-compliance with delivery dates. Moreover, a new uncertain solution approach is developed to solve mathematical programming problems with gray parameters.
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