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1 – 10 of 43
Article
Publication date: 11 September 2017

Dilupa 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.

Details

Industrial Management & Data Systems, vol. 117 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 4 November 2013

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…

1541

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.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Content available
Article
Publication date: 10 December 2021

Jade F. Preston, Bruce A. Cox, Paul P. Rebeiz and Timothy W. Breitbach

Supply chains need to balance competing objectives; in addition to efficiency, supply chains need to be resilient to adversarial and environmental interference and robust to…

Abstract

Purpose

Supply chains need to balance competing objectives; in addition to efficiency, supply chains need to be resilient to adversarial and environmental interference and robust to uncertainties in long-term demand. Significant research has been conducted designing efficient supply chains and recent research has focused on resilient supply chain design. However, the integration of resilient and robust supply chain design is less well studied. The purpose of the paper is to include resilience and robustness into supply chain design.

Design/methodology/approach

The paper develops a method to include resilience and robustness into supply chain design. Using the region of West Africa, which is plagued with persisting logistical issues, the authors develop a regional risk assessment framework and then apply categorical risk to the countries of West Africa using publicly available data. A scenario reduction technique is used to focus on the highest risk scenarios for the model to be tractable. Next, the authors develop a mathematical model leveraging this framework to design a resilient supply network that minimizes cost while ensuring the network functions following a disruption. Finally, the authors examine the network's robustness to demand uncertainty via several plausible emergency scenarios.

Findings

The authors provide optimal sets of transshipment hubs with varying counts from 5 through 15 hubs. The authors determine there is no feasible solution that uses only five transshipment hubs. The authors' findings reinforce those seven transshipment hubs – the solution currently employed in West Africa – is the cheapest architecture to achieve resilience and robustness. Additionally, for each set of feasibility transshipment hubs, the authors provide connections between hubs and demand spokes.

Originality/value

While, at the time of this research, three other manuscripts incorporated both resilience and robustness of the authors' research unique solved the problem as a network flow instead of as a set covering problem. Additionally, the authors establish a novel risk framework to guide the required amount of redundancy, and finally the out research proposes a scenario reduction heuristic to allow tractable exploration of 512 possible demand scenarios.

Details

Journal of Defense Analytics and Logistics, vol. 5 no. 2
Type: Research Article
ISSN: 2399-6439

Keywords

Article
Publication date: 12 September 2023

Mohammad Hossein Dehghani Sadrabadi, Ahmad Makui, Rouzbeh Ghousi and Armin Jabbarzadeh

The adverse interactions between disruptions can increase the supply chain's vulnerability. Accordingly, establishing supply chain resilience to deal with disruptions and…

Abstract

Purpose

The adverse interactions between disruptions can increase the supply chain's vulnerability. Accordingly, establishing supply chain resilience to deal with disruptions and employing business continuity planning to preserve risk management achievements is of considerable importance. The aforementioned idea is discussed in this study.

Design/methodology/approach

This study proposes a multi-objective optimization model for employing business continuity management and organizational resilience in a supply chain for responding to multiple interrelated disruptions. The improved augmented e-constraint and the scenario-based robust optimization methods are adopted for multi-objective programming and dealing with uncertainty, respectively. A case study of the automotive battery manufacturing industry is also considered to ensure real-world conformity of the model.

Findings

The results indicate that interactions between disruptions remarkably increase the supply chain's vulnerability. Choosing a higher fortification level for the supply chain and foreign suppliers reduces disruption impacts on resources and improves the supply chain's resilience and business continuity. Facilities dispersion, fortification of facilities, lateral transshipment, order deferral policy, dynamic capacity planning and direct transportation of products to markets are the most efficient resilience strategies in the under-study industry.

Originality/value

Applying resource allocation planning and portfolio selection to adopt preventive and reactive resilience strategies simultaneously to manage multiple interrelated disruptions in a real-world automotive battery manufacturing industry, maintaining the long-term achievements of supply chain resilience using business continuity management and dynamic capacity planning are the main contributions of the presented paper.

Article
Publication date: 31 May 2022

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.

Details

Management Research Review, vol. 46 no. 4
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 17 March 2023

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.

Details

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

Keywords

Article
Publication date: 8 March 2021

Binghai Zhou and Shi Zong

The cross-docking strategy has a significant influence on supply chain and logistics efficiency. This paper aims to investigate the most suitable and efficient way to schedule the…

Abstract

Purpose

The cross-docking strategy has a significant influence on supply chain and logistics efficiency. This paper aims to investigate the most suitable and efficient way to schedule the transfer of logistics activities and present a meta-heuristic method of the truck scheduling problem in cross-docking logistics. A truck scheduling problem with products time window is investigated with objectives of minimizing the total product transshipment time and earliness and tardiness cost of outbound trucks.

Design/methodology/approach

This research proposed a meta-heuristic method for the truck scheduling problem with products time window. To solve the problem, a lower bound of the problem is built through a novel two-stage Lagrangian relaxation problem and on account of the NP-hard nature of the truck scheduling problem, the novel red deer algorithm with the mechanism of the heuristic oscillating local search algorithm, as well as adaptive memory programming was proposed to overcome the inferior capability of the original red deer algorithm in the aspect of local search and run time.

Findings

Theory analysis and simulation experiments on an industrial case of a cross-docking center with a product’s time window are conducted in this paper. Satisfactory results show that the performance of the red deer algorithm is enhanced due to the mechanism of heuristic oscillating local search algorithm and adaptive memory programming and the proposed method efficiently solves the real-world size case of truck scheduling problems in cross-docking with product time window.

Research limitations/implications

The consideration of products time window has very realistic significance in different logistics applications such as cold-chain logistics and pharmaceutical supply chain. Furthermore, the novel adaptive memory red deer algorithm could be modified and applied to other complex optimization scheduling problems such as scheduling problems considering energy-efficiency or other logistics strategies.

Originality/value

For the first time in the truck scheduling problem with the cross-docking strategy, the product’s time window is considered. Furthermore, a mathematical model with objectives of minimizing the total product transshipment time and earliness and tardiness cost of outbound trucks is developed. To solve the proposed problem, a novel adaptive memory red deer algorithm with the mechanism of heuristic oscillating local search algorithm was proposed to overcome the inferior capability of genetic algorithm in the aspect of local search and run time.

Details

Engineering Computations, vol. 38 no. 8
Type: Research Article
ISSN: 0264-4401

Keywords

Article
Publication date: 19 December 2023

Seda Özcan, Bengü Sevil Oflaç, Sinem Tokcaer and Özgür Özpeynirci

The criticality of late deliveries in transportation lies in the threat of considerable multi-level supply chain costs. This study aims to reveal the dynamic capabilities playing…

Abstract

Purpose

The criticality of late deliveries in transportation lies in the threat of considerable multi-level supply chain costs. This study aims to reveal the dynamic capabilities playing a facilitating role in preventing delay, thus providing timely delivery, as well as developing an understanding of how and when those capabilities are activated within the supply chain network.

Design/methodology/approach

An exploratory study was conducted involving 16 semi-structured expert interviews with the representatives of logistics service providers and shippers. Following an interpretive phenomenology framework, the prevention phenomenon was explained.

Findings

Findings revealed two preventive capability categories in delay prevention: (1) proactive capabilities, referring to the enabling actions planned before departure, and (2) reactive capabilities, referring to actions planned after departure. Findings pinpoint that, in addition to the proactive capabilities, reactive capabilities enabled by innovative problem-solving actions are crucial for adapting to a dynamically changing environment in prevention. Moreover, this study shows that prevention capabilities are characterized by tangible and intangible resources and integration of resources with external links which constitute a delay prevention network within a wider service ecosystem.

Originality/value

This study stands out with its specific focus on delay prevention capabilities and enabling actions from the perspectives of logistics service providers and shippers. The premises of the resource-based view are combined with dynamic capabilities theory, leading to a proposed time-based taxonomy of proactive and reactive capabilities in supply chains, aimed at creating value and strengthening resilience.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Open Access
Article
Publication date: 26 September 2023

Tobias Winkler, Manuel Ostermeier and Alexander Hübner

Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or…

1847

Abstract

Purpose

Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or donations). These options reduce waste after a surplus has emerged but do not prevent an emerging surplus in the first place. This paper aims to reveal how retailers can proactively prevent waste along the SC and why the options identified are impactful but, at the same time, often complex to implement.

Design/methodology/approach

The authors follow an exploratory approach for a nascent topic to obtain insights into measures taken in practice. Interviews with experts from retail build the main data source.

Findings

The authors identify and analyze 21 inbound, warehousing, distribution and store-related options applied in grocery retail. Despite the expected high overall impact on waste, prevention measures in inbound logistics and distribution and warehousing have not been intensively applied to date.

Practical implications

The authors provide a structured approach to mitigate waste within retailers' operations and categorize the types of barriers that need to be addressed.

Originality/value

This research provides a better understanding of prevention options in retail operations, which has not yet been empirically explored. Furthermore, this study conceptualizes prevention and reduction options and reveals implementation patterns.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 11
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 13 July 2023

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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