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Open Access
Article
Publication date: 9 March 2023

Rahmi Yuniarti, Ilyas Masudin, Ahmad Rusdiansyah and Dwi Iryaning Handayani

This study aimed to develop the integration of the multiperiod production-distribution model in a closed-loop supply chain involving carbon emission and traceability. The…

1151

Abstract

Purpose

This study aimed to develop the integration of the multiperiod production-distribution model in a closed-loop supply chain involving carbon emission and traceability. The developed model was for agricultural food (agri-food) products, considering the reverse flow of food waste from the disposal center (composting center) to producers.

Findings

The results indicate that integrating the production and distribution model considering food waste recycling provides low carbon emissions in lower total costs. The sensitivity analysis also found that there are trade-offs between production and distribution rate and food waste levels on carbon emission and traceability.

Research limitations/implications

This study focuses on the mathematical modeling of a multiperiod production-distribution formulation for a closed-loop supply chain.

Originality/value

The model of the agri-food closed-loop supply chain in this study that considers food recycling and carbon emissions would help stakeholders involved in the agri-food supply chain to reduce food waste and carbon emissions.

Details

International Journal of Industrial Engineering and Operations Management, vol. 5 no. 3
Type: Research Article
ISSN: 2690-6090

Keywords

Article
Publication date: 17 January 2022

Hanieh Shambayati, Mohsen Shafiei Nikabadi, Seyed Mohammad Ali Khatami Firouzabadi, Mohammad Rahmanimanesh and Sara Saberi

Supply chains (SCs) have been growingly virtualized in response to the market challenges and opportunities that are presented by new and cost-effective internet-based technologies…

Abstract

Purpose

Supply chains (SCs) have been growingly virtualized in response to the market challenges and opportunities that are presented by new and cost-effective internet-based technologies today. This paper designed a virtual closed-loop supply chain (VCLSC) network based on multiperiod, multiproduct and by using the Internet of Things (IoT). The purpose of the paper is the optimization of the VCLSC network.

Design/methodology/approach

The proposed model considers the maximization of profit. For this purpose, costs related to virtualization such as security, energy consumption, recall and IoT facilities along with the usual costs of the SC are considered in the model. Due to real-world demand fluctuations, in this model, demand is considered fuzzy. Finally, the problem is solved using the Grey Wolf algorithm and Firefly algorithm. A numerical example and sensitivity analysis on the main parameters of the model are used to describe the importance and applicability of the developed model.

Findings

The findings showed that the Firefly algorithm performed better and identified more profit for the SC in each period. Also, the results of the sensitivity analysis using the IoT in a VCLSC showed that the profit of the virtual supply chain (VSC) is higher compared to not using IoT due to tracking defective parts and identifying reversible products. In proposed model, chain members can help improve chain operations by tracking raw materials and products, delivering products faster and with higher quality to customers, bringing a new level of SC efficiency to industries. As a result, VSCs can be controlled, programmed and optimized remotely over the Internet based on virtual objects rather than direct observation.

Originality/value

There are limited researches on designing and optimizing the VCLSC network. This study is one of the first studies that optimize the VSC networks considering minimization of virtual costs and maximization of profits. In most researches, the theory of VSC and its advantages have been described, while in this research, mathematical optimization and modeling of the VSC have been done, and it has been tried to apply SC virtualization using the IoT. Considering virtual costs in VSC optimization is another originality of this research. Also, considering the uncertainty in the SC brings the issue closer to the real world. In this study, virtualization costs including security, recall and energy consumption in SC optimization are considered.

Highlights

  1. Investigates the role of IoT for virtual supply chain profit optimization and mathematical optimization of virtual closed-loop supply chain (VCLSC) based on multiperiod, multiproduct with emphasis on using the IoT under uncertainty.

  2. Considering the most important costs of virtualization of supply chain include: cost of IoT information security, cost of IoT energy consumption, cost of recall the production department, cost of IoT facilities.

  3. Selection of the optimal suppliers in each period and determination of the price of each returned product in virtual supply chain.

  4. Solving and validating the proposed model with two meta-heuristic algorithms (the Grey Wolf algorithm and Firefly algorithm).

Investigates the role of IoT for virtual supply chain profit optimization and mathematical optimization of virtual closed-loop supply chain (VCLSC) based on multiperiod, multiproduct with emphasis on using the IoT under uncertainty.

Considering the most important costs of virtualization of supply chain include: cost of IoT information security, cost of IoT energy consumption, cost of recall the production department, cost of IoT facilities.

Selection of the optimal suppliers in each period and determination of the price of each returned product in virtual supply chain.

Solving and validating the proposed model with two meta-heuristic algorithms (the Grey Wolf algorithm and Firefly algorithm).

Open Access
Article
Publication date: 28 November 2022

Elena Stefana, Paola Cocca, Federico Fantori, Filippo Marciano and Alessandro Marini

This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.

1401

Abstract

Purpose

This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.

Design/methodology/approach

The authors conducted a literature review about the studies focusing on approaches combining OEE with monetary units and/or resource issues. The authors developed an approach based on Overall Equipment Cost Loss (OECL), introducing a component for the production resource consumption of a machine. A real case study about a smart multicenter three-spindle machine is used to test the applicability of the approach.

Findings

The paper proposes Resource Overall Equipment Cost Loss (ROECL), i.e. a new KPI expressed in monetary units that represents the total cost of losses (including production resource ones) caused by inefficiencies and deviations of the machine or equipment from its optimal operating status occurring over a specific time period. ROECL enables to quantify the variation of the product cost occurring when a machine or equipment changes its health status and to determine the actual product cost for a given production order. In the analysed case study, the most critical production orders showed an actual production cost about 60% higher than the minimal cost possible under the most efficient operating conditions.

Originality/value

The proposed approach may support both production and cost accounting managers during the identification of areas requiring attention and representing opportunities for improvement in terms of availability, performance, quality, and resource losses.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 11
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 20 June 2022

Luis Alejandro Gólcher-Barguil, Simon Peter Nadeem, Jose Arturo Garza-Reyes, Ashutosh Samadhiya and Anil Kumar

Equipment performance helps the manufacturing sector achieve operational and financial improvements despite process variations. However, the literature lacks a clear index or…

Abstract

Purpose

Equipment performance helps the manufacturing sector achieve operational and financial improvements despite process variations. However, the literature lacks a clear index or metric to quantify the monetary advantages of enhanced equipment performance. Thus, the paper presents two innovative monetary performance measures to estimate the financial advantages of enhancing equipment performance by isolating the effect of manufacturing fluctuations such as product mix price, direct and indirect characteristics, and cost changes.

Design/methodology/approach

The research provides two measures, ISB (Improvement Saving Benefits) and IEB (Improvement Earning Benefits), to assess equipment performance improvements. The effectiveness of the metrics is validated through a three stages approach, namely (1) experts' binary opinion, (2) sample, and (3) actual cases. The relevant data may be collected through accounting systems, purpose-built software, or electronic spreadsheets.

Findings

The findings suggest that both measures provide an effective cost–benefit analysis of equipment performance enhancement. The measure ISB indicates savings from performance increases when equipment capacity is greater than product demand. IEB is utilised when equipment capacity is less than product demand. Both measurements may replace the unitary cost variation, which is subject to manufacturing changes.

Practical implications

Manufacturing businesses may utilise the ISB and IEB metrics to conduct a systematic analysis of equipment performance and to appreciate the financial savings perspective in order to emphasise profitability in the short and long term.

Originality/value

The study introduces two novel financial equipment performance improvement indicators that distinguish the effects of manufacturing variations. Manufacturing variations cause cost advantages from operational improvements to be misrepresented. There is currently no approach for manufacturing organisations to calculate the financial advantages of enhancing equipment performance while isolating production irregularities.

Details

Benchmarking: An International Journal, vol. 30 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Open Access
Article
Publication date: 12 October 2023

Jianchang Fan, Zhun Li, Fei Ye, Yuhui Li and Nana Wan

This study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint…

Abstract

Purpose

This study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint, financing cost, channel power structure and cost-reducing efficiency on green R&D and supply chain profitability.

Design/methodology/approach

A two-echelon supply chain is considered. The upstream firm engages in green R&D but has capital constraints that can be overcome by external financing. Green R&D is beneficial to reduce production costs and increase consumer demand. Based on whether or not the upstream firm is capital constrained and dominates the supply chain, four models are developed.

Findings

Capital constraints significantly lower green R&D and supply chain profitability. Transferring leadership from the upstream to the downstream firms leads to higher green R&D levels and downstream firm profitability, whereas the upstream firm's profitability is increased (decreased) if green R&D investment efficiency is high (low) enough. Greater financing costs reduce green R&D and downstream firm profitability; however, the upstream firm's profitability under the model in which it functions as the follower increases if the initial capital is sufficient. More importantly, empirical analysis based on practice data is used to verify the theoretical results reported above.

Practical implications

This study reveals how upstream firms in supply chains decide green R&D decisions in situations with capital constraints, providing managers and governments with an understanding of the impact of capital constraint, channel power structure, financing cost and cost-reducing efficiency on supply chain green R&D and profitability.

Originality/value

The major contributions are the exploration of supply chain green R&D by taking into consideration channel power structures and cost-reducing efficiency and the validation of theoretical results using practice data.

Details

Modern Supply Chain Research and Applications, vol. 5 no. 3
Type: Research Article
ISSN: 2631-3871

Keywords

Book part
Publication date: 17 November 2023

Virve Marionneau and Janne Nikkinen

Horse racing occupies a significant but separate part of sports gambling provision. The historical importance of horse breeding as well as employment effects have been used to…

Abstract

Horse racing occupies a significant but separate part of sports gambling provision. The historical importance of horse breeding as well as employment effects have been used to justify the necessity of betting revenue in the horse sector. In the Nordic countries, these arguments are used to organise horse racing separately from other sports betting. In this context, horse racing, and particularly trotting, remains a lucrative sector for horse owners and producers of racing. The current study focuses on the production chains and financial interests behind horse racing in the Nordic countries. We use financial statements and annual reporting of Finnish, Norwegian and Swedish horse betting companies to determine who benefits financially from racing, what kind of production-related interests are involved and whether horse racing produces surplus to societies or merely maintains its own function. The results are discussed in light of the intertwined organisation of horse racing in the Nordics and the role of horses and animal welfare in the production of racing.

Details

Gambling and Sports in a Global Age
Type: Book
ISBN: 978-1-80117-304-9

Keywords

Article
Publication date: 29 November 2022

Xiaofang Jia and Xingan Wang

This study intends to explore the relationship between digital finance and the vertical specialization of firms. The following questions are discussed: (1) As a representative new…

Abstract

Purpose

This study intends to explore the relationship between digital finance and the vertical specialization of firms. The following questions are discussed: (1) As a representative new financial development model, what is the role of digital finance in the vertical specialization of firms? (2) If digital finance improves the level of vertical specialization of firms, what is the mechanism behind such improvement? (3) How does digital finance impact the vertical specialization of firms in different regions, industries, and firms?

Design/methodology/approach

A two-way fixed-effect model of panel data is proposed to verify the relationship between digital finance and the vertical specialization of firms. This model is constructed by matching the city-level data of digital finance with the data of China's A-share listed companies from 2011 to 2018. Meanwhile, the instrumental variable (IV) method and difference-in-difference (DID) method are adopted to deal with the endogeneity problem of the model.

Findings

The authors' study finds that digital finance has significantly improved the level of vertical specialization of firms. The result is robust under the endogeneity consideration and a series of robustness tests. After the dimensionality of the index is reduced, the depth of digital finance usage is more conducive to the improvement of the vertical specialization of firms compared with the width of digital finance coverage and the level of financial digitization. Digital finance mainly improves the level of vertical specialization of firms by reducing transaction costs and increasing the market thickness of the intermediate products. Moreover, digital finance has certain heterogeneity in promoting the vertical specialization of firms, an effect that is more significant in the eastern region, manufacturing industry and state-owned enterprises (SOEs).

Research limitations/implications

The first limitation is the mechanism test. This research only analyzes the mechanism from transaction cost and the market thickness of the intermediate products. With the rapid development of information technology, digital finance will be further integrated into people's production and life. There will then be more mechanisms that should be explored between digital finance and the vertical specialization of firms. Another limitation is the data sample of this paper. The conclusions of this research are based only on the data of listed companies. However, in the authors' opinion, the specialization level of small and medium-sized enterprise (SMEs) should be higher. Therefore, the conclusions of this work are underestimated, which can be considered as the lower limit of digital finance for enterprise specialization.

Social implications

As a favorable financing channel to supplement traditional financial service functions, digital finance plays a critical role in the operating efficiency of enterprises and the effective allocation of macro resources. The authors' research shows that digital finance has significantly improved the vertical specialization of firms. This conclusion provides guides to improve the production efficiency of enterprises and the quality of economic development.

Originality/value

This paper has three main contributions. (1) The relationship between financial development and the vertical specialization of firms is innovatively discussed from the perspective of digital finance, which implies that digital finance can effectively promote the level of vertical specialization of firms. (2) This paper provides new perspectives and ideas to reveal the impact mechanism of digital finance on the real economy by systematically analyzing the mechanism of digital finance on the vertical specialization of firms from the perspectives of transaction costs and financing constraints. (3) The regional differences in the development of digital finance, industry differences in the vertical specialization of firms and differences in the nature of enterprise property rights are all under consideration, which improves the effectiveness and pertinence of digital finance in promoting the vertical specialization of firms.

Details

Kybernetes, vol. 53 no. 1
Type: Research Article
ISSN: 0368-492X

Keywords

Open Access
Article
Publication date: 3 May 2023

Lars Stehn and Alexander Jimenez

The purpose of this paper is to understand if and how industrialized house building (IHB) could support productivity developments for housebuilding on project and industry levels…

Abstract

Purpose

The purpose of this paper is to understand if and how industrialized house building (IHB) could support productivity developments for housebuilding on project and industry levels. The take is that fragmentation of construction is one explanation for the lack of productivity growth, and that IHB could be an integrating method of overcoming horizontal and vertical fragmentation.

Design/methodology/approach

Singe-factor productivity measures are calculated based on data reported by IHB companies and compared to official produced and published research data. The survey covers the years 2013–2020 for IHB companies building multi-storey houses in timber. Generalization is sought through descriptive statistics by contrasting the data samples to the used means to control vertical and horizontal fragmentation formulated as three theoretical propositions.

Findings

According to the results, IHB in timber is on average more productive than conventional housebuilding at the company level, project level, in absolute and in growth terms over the eight-year period. On the company level, the labour productivity was on average 10% higher for IHB compared to general construction and positioned between general construction and general manufacturing. On the project level, IHB displayed an average cost productivity growth of 19% for an employed prefabrication degree of about 45%.

Originality/value

Empirical evidence is presented quantifying so far perceived advantages of IHB. By providing analysis of actual cost and project data derived from IHB companies, the article quantifies previous research that IHB is not only about prefabrication. The observed positive productivity growth in relation to the employed prefabrication degree indicates that off-site production is not a sufficient mean for reaching high productivity and productivity growth. Instead, the capabilities to integrate the operative logic of conventional housebuilding together with logic of IHB platform development and use is a probable explanation of the observed positive productivity growth.

Details

Construction Innovation , vol. 24 no. 7
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 4 July 2023

Binghai Zhou and Mingda Wen

In a kitting supply system, the occurrence of material-handling errors is unavoidable and will cause serious production losses to an assembly line. To minimize production losses…

Abstract

Purpose

In a kitting supply system, the occurrence of material-handling errors is unavoidable and will cause serious production losses to an assembly line. To minimize production losses, this paper aims to present a dynamic scheduling problem of automotive assembly line considering material-handling mistakes by integrating abnormal disturbance into the material distribution problem of mixed-model assembly lines (MMALs).

Design/methodology/approach

A multi-phase dynamic scheduling (MPDS) algorithm is proposed based on the characteristics and properties of the dynamic scheduling problem. In the first phase, the static material distribution scheduling problem is decomposed into three optimization sub-problems, and the dynamic programming algorithm is used to jointly optimize the sub-problems to obtain the optimal initial scheduling plan. In the second phase, a two-stage rescheduling algorithm incorporating removing rules and adding rules was designed according to the status update mechanism of material demand and multi-load AGVs.

Findings

Through comparative experiments with the periodic distribution strategy (PD) and the direct insertion method (DI), the superiority of the proposed dynamic scheduling strategy and algorithm is verified.

Originality/value

To the best of the authors’ knowledge, this study is the first to consider the impact of material-handling errors on the material distribution scheduling problem when using a kitting strategy. By designing an MPDS algorithm, this paper aims to maximize the absorption of the disturbance caused by material-handling errors and reduce the production losses of the assembly line as well as the total cost of the material transportation.

Details

Engineering Computations, vol. 40 no. 5
Type: Research Article
ISSN: 0264-4401

Keywords

Article
Publication date: 23 December 2022

Enrico Baraldi, Francesco Ciabuschi and Luciano Fratocchi

Antibiotics shortages have become an increasingly common problem in Europe because of several reasons, including the offshoring of the production of active pharmaceutical…

Abstract

Purpose

Antibiotics shortages have become an increasingly common problem in Europe because of several reasons, including the offshoring of the production of active pharmaceutical ingredients for many of these products to low production cost countries, such as China and India. The problem has deteriorated because of the Covid-19 crisis that has put most global value chains (GVCs) under great stress. This situation has boosted extensive discussions among academics, practitioners and policymakers on possible changes to the configuration of GVCs. This paper aims to focus specifically on antibiotics supply chains from the perspective of a small country (Sweden), and analyse the pros and cons of backshoring and nearshoring alternatives, as a means to reduce drug shortages.

Design/methodology/approach

This work adopts a systemic perspective to capture the implications of reshoring for the different stakeholders involved in the antibiotics field. The present meso-analysis, focusing at the industry level, is based on multiple sources of primary data collected between 2014 and 2021, including participation in policy-related projects and interviews with over 100 representatives of key stakeholders in the antibiotics field.

Findings

This paper shows how reshoring can address the problems of drug shortages and reduce availability risk in antibiotics’ GVCs. However, the authors show that no simple and best solution exists because both alternatives of reshoring, i.e. backshoring and nearshoring, entail pros and cons for different stakeholders. The authors conclude with implications for policymakers and managers.

Research limitations/implications

The analysis of pros and cons of both backshoring and nearshoring for various stakeholders offers relevant implications for research on operations and supply management, international business and economics/political science.

Originality/value

This paper looks at reshoring as a policy-driven decision and provides an innovative systemic perspective to analyse the implications for different stakeholders of two reshoring options concerning the antibiotics supply chain.

Details

Journal of Global Operations and Strategic Sourcing, vol. 16 no. 3
Type: Research Article
ISSN: 2398-5364

Keywords

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