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Article

Bo Yan, Xiao-hua Wu, Bing Ye and Yong-wang Zhang

The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this…

Abstract

Purpose

The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this paper is to make the three-level supply chain coordinate in IoT by considering the influence of FAP on market demand and costs of controlling freshness on the road.

Design/methodology/approach

A three-level FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT is regarded as the research object. This study improves the revenue-sharing contract, determines the optimal solution when the supply chain achieves maximum profit in three types of decision-making situations, and develops the profit distribution model based on the improved revenue-sharing contract to coordinate the supply chain.

Findings

The improved revenue-sharing contract can coordinate the FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT, as well as benefit all enterprises in the supply chain.

Practical implications

Resource utilization rate can be improved after coordinating the entire supply chain. Moreover, loss in the circulation process is reduced, and the circulation efficiency of FAPs is improved because of the application of IoT. The validity of the model is verified through a case analysis.

Originality/value

This study is different from other research in terms of the combination of supply chain coordination, FAPs, and radio frequency identification application in IoT.

Details

Industrial Management & Data Systems, vol. 117 no. 9
Type: Research Article
ISSN: 0263-5577

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Article

Sanjay Sehgal, B.S. Sahay and S.K. Goyal

The purpose of this paper is to outline the importance and benefits an organisation can achieve through supply chain integration. These benefits are primarily in the area…

Abstract

Purpose

The purpose of this paper is to outline the importance and benefits an organisation can achieve through supply chain integration. These benefits are primarily in the area of achieving superior customer service and operating with lower working capital.

Design/methodology/approach

A three level framework for achieving the integration has been proposed which is in the form of structural integration, process integration and performance integration. The paper also describes in detail the factors influencing an organisations working capital needs and how this integration mechanism allows the organisation to exercise control over these factors. The framework has been described in the form of a case study in a paints company.

Findings

The research findings reveal that most of the Indian organisations have aligned their supply chain objectives with their business objectives. They are now on course for aligning their processes and management focus. Enhanced levels of competitiveness would require Indian organisations to manage the three‐dimensional alignment of achieving the agenda set by the business strategy.

Research limitations/implications

Further research work should focus on assessing the current level of supply chain integration. It is essential that structure and strategy should be aligned to achieve the business objective of providing superior customer service at the lowest cost.

Practical implications

This paper provides a detailed study to help supply chain managers improve supply chain efficiency through reengineering. Dramatic improvements have been achieved with the improvement of service levels (OTIF) by more than 20 per cent across all regions. Planning orientation and organisational integration resulted in process optimisation across the supply chain.

Originality/value

The benefits of re‐engineering have increased company's commitment to the integration of the Supply Chain Organisation and it is driving further business improvement initiatives through this organisation. This framework can also be used as a guiding source to carry out organisational transformation process.

Details

International Journal of Productivity and Performance Management, vol. 55 no. 8
Type: Research Article
ISSN: 1741-0401

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Article

Ata Allah Taleizadeh and Mahtab Sherafati

This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between…

Abstract

Purpose

This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter.

Design/methodology/approach

Three-echelon supply chains with marketing and warranty services are studied. Game-theoretic approaches (non-cooperative and cooperative) are presented. The non-cooperative approaches are static (NE) and dynamic (Stakelberg) models. The cooperative approach is related to bargaining models (Nash bargaining games). The authors develop a sensitivity analysis of some parameters and their effect.

Findings

Based on the mentioned drawbacks (i.e. lack of a model containing warranty, marketing and pricing), despite their importance, a developed model is proposed in this research to cover one of the research gaps. In addition, main contributions of this paper that differentiate it from the existing papers are regarding inventory, lost sale and lost goodwill, which are significant in the comparison environment. Another advantage of this study is related to the solution approach, the game theory. Twofold of the games theoretical, i.e. cooperative (in three forms) and non-cooperative are considered, because of their importance. Three types of non-cooperative games are presented as follows: Nash equilibrium – each echelon decides respectively and simultaneously; manufacturer-Stackelberg – the manufacturer has more power than the agent and the agent has more power than the customer; and customer-Stackelberg – customer is leader of the agent and the agent is the leader of manufacturer. The involved cooperative game in this paper is the bargaining problem that the participants can determine how to share the additional profits.

Originality/value

In this paper, various three-level service contracts will be presented among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Several numerical examples are used to illustrate the models presented in this paper. Finally, the authors develop a sensitivity analysis of some parameters and their effects on the objective functions.

Details

Journal of Modelling in Management, vol. 14 no. 3
Type: Research Article
ISSN: 1746-5664

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Article

Usha Ramanathan

In general, demand for functional products is dependent on a range of promotions offered in various retail outlets. To improve promotional sales many retailers collaborate…

Abstract

Purpose

In general, demand for functional products is dependent on a range of promotions offered in various retail outlets. To improve promotional sales many retailers collaborate with manufacturers for planning, forecasting and replenishment. The purpose of this paper is to hypothesize that collaborative forecasting will improve the forecast accuracy if all the partners can relate their demand forecast with underlying demand factors.

Design/methodology/approach

In this paper, the author uses a case study approach to study various demand factors of soft drink products of the UK based company which offers frequent promotions in retail outlets. The paper represents the case study findings in a conceptual framework called Reference Demand Model (RDM). Further, the case study findings are validated empirically by means of multiple linear regression analysis using actual sales data of the case company.

Findings

Surprisingly, some of the demand factors specified as very important by the case company are not found to be highly significant for actual sales. The paper uses the identified demand factors to suggest levels of collaboration.

Practical implications

Understanding the importance of product specific demand factors through regression models and incorporating the same in managerial decision making will aid managers to identify the necessary information to make accurate demand forecasts.

Originality/value

This approach unveils the presence of three levels of collaboration namely preparatory, progressive and futuristic levels among supply chain partners based on the information exchange. The proposed method will aid decision making on information sharing and collaborative planning among manufacturer and retailers for future promotional sales.

Details

International Journal of Operations & Production Management, vol. 32 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

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Article

Amir Hossein Niknamfar

The production-distribution (P-D) problems are two critical problems in many industries, in particular, in manufacturing systems and the supply chain management. In…

Abstract

Purpose

The production-distribution (P-D) problems are two critical problems in many industries, in particular, in manufacturing systems and the supply chain management. In previous researches on P-D planning, the demands of the retailers and their inventory levels have less been controlled. This may lead into huge challenges for a P-D plan such as the bullwhip effects. Therefore, to remove this challenge, the purpose of this paper is to integrate a P-D planning and the vendor-managed inventory (VMI) as a strong strategy to manage the bullwhip effects in supply chains. The proposed P-D-VMI aims to minimize the total cost of the manufacturer, the total cost of the retailers, and the total distribution time simultaneously.

Design/methodology/approach

This paper presents a multi-objective non-linear model for a P-D planning in a three-level supply chain including several external suppliers at the first level, a single manufacturer at the second level, and multi-retailer at the third level. A non-dominated sorting genetic algorithm and a non-dominated ranking genetic algorithm are designed and tuned to solve the proposed problem. Then, their performances are statistically analyzed and ranked by the TOPSIS method.

Findings

The applicability of the proposed model and solution methodologies are demonstrated under several problems. A sensitivity analysis indicates the market scale and demand elasticity have a substantial impact on the total cost of the manufacturer in the proposed P-D-VMI.

Originality/value

Although the P-D planning is a popular approach, there has been little discussion about the P-D planning based on VMI so far. The novelty comes from developing a practical and new approach that integrates the P-D planning and VMI.

Details

Industrial Management & Data Systems, vol. 115 no. 6
Type: Research Article
ISSN: 0263-5577

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Article

Kazim Sari

The purpose of this paper is to investigate the value of reducing errors in inventory information from a supply chain perspective. To this end, the benefits of reducing…

Abstract

Purpose

The purpose of this paper is to investigate the value of reducing errors in inventory information from a supply chain perspective. To this end, the benefits of reducing errors in inventory information are compared with those of lead time reduction and supply chain collaboration.

Design/methodology/approach

A simulation model is constructed to perform the analysis.

Findings

Results show that lead time reduction is the most important strategy for a supply chain in reducing total supply chain cost. In terms of customer service level, on the other hand, strategy of reducing errors in inventory information is observed as the most considerable strategy. However, the results for supply chain collaboration are somewhat unexpected. Namely, in spite of its popularity, supply chain collaboration provides very limited contribution to the supply chain.

Practical implications

This research provides useful knowledge for the managers of a business enterprise in prioritizing various supply chain strategies.

Originality/value

In supply chain management literature, greater emphasis is given to lead time reduction and supply chain collaboration than dealing with errors in inventory information. This research makes it clear that errors in inventory information should not be underestimated.

Details

Kybernetes, vol. 44 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

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Article

Ketong Zhao and Bingzhen Sun

The purpose of this paper is to present a new method and model for constructing a new decision-making paradigm of Medicare, which can not only satisfy the needs of the…

Abstract

Purpose

The purpose of this paper is to present a new method and model for constructing a new decision-making paradigm of Medicare, which can not only satisfy the needs of the sick people but also reduce the possibility of people slipping back to poverty due to diseases under the policy of Targeted Poverty Alleviation (TPA) of China.

Design/methodology/approach

This paper uses the traditional supply chain theory to analyze the Medicare of impoverished people with the policy of TPA of China and transforms it into a multi-layer supply chain optimization decision-making problem. First, a nonlinear integer programming model for poor people’s Medicare decision with opportunity constraints is constructed. To facilitate the solution of the optimal decision scheme, the abovementioned model is transformed into a linear integer programming model with opportunity constraints by using the Newsvendor model for reference. Meanwhile, the scope of the inventory model is discussed, for it can be combined with the construction of the medical insurance system better. Second, the theoretical model is applied to the practical problem. Finally, based on the results of the theoretical model applying the practical problem, we give further improvement and modification of the theoretical model applies it to the actual situation further.

Findings

This paper presents a theoretical model about determine the optimal the inventory, under the framework of traditional supply chain decision-making, for it can be combined with the construction of the medical insurance system better. The theoretical model is applied to the practical problem of the fight against poverty in XX County, China. By using the actual data and MATLAB, optimal decision scheme is obtained.

Originality/value

There are two aspects of value. On the one hand, this paper provides a new way to construct a Medicare system of impoverished people with TPA of China. On the other hand, this paper tries making a new way to handle the storage of medicines and related medical devices at basic standard clinics decision-making problems based on above mentioned Medicare system.

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Article

Behzad Karimi, Amir Hossein Niknamfar, Babak Hassan Gavyar, Majid Barzegar and Ali Mohtashami

Today’s, supply chain production and distribution of products to improve the customer satisfaction in the shortest possible time by paying the minimum cost, has become the…

Abstract

Purpose

Today’s, supply chain production and distribution of products to improve the customer satisfaction in the shortest possible time by paying the minimum cost, has become the most important challenge in global market. On the other hand, minimizing the total cost of the transportation and distribution is one of the critical items for companies. To handle this challenge, this paper aims to present a multi-objective multi-facility model of green closed-loop supply chain (GCLSC) under uncertain environment. In this model, the proposed GCLSC considers three classes in case of the leading chain and three classes in terms of the recursive chain. The objectives are to maximize the total profit of the GCLSC, satisfaction of demand, the satisfactions of the customers and getting to the proper cost of the consumers, distribution centers and recursive centers.

Design/methodology/approach

Then, this model is designed by considering several products under several periods regarding the recovery possibility of products. Finally, to evaluate the proposed model, several numerical examples are randomly designed and then solved using non-dominated sorting genetic algorithm and non-dominated ranking genetic algorithm. Then, they are ranked by TOPSIS along with analytical hierarchy process so-called analytic hierarchy process-technique for order of preference by similarity to ideal solution (AHP-TOPSIS).

Findings

The results indicated that non-dominated ranked genetic algorithm (NRGA) algorithm outperforms non-dominated sorting genetic algorithm (NSGA-II) algorithm in terms of computation times. However, in other metrics, any significant difference was not seen. At the end, to rank the algorithms, a multi-criterion decision technique was used. The obtained results of this method indicated that NSGA-II had better performance than ones obtained by NRGA.

Originality/value

This study is motivated by the need of integrating the leading supply chain and retrogressive supply chain. In short, the highlights of the differences of this research with the mentioned studies are as follows: developing multi-objective multi-facility model of fuzzy GCLSC under uncertain environment and integrating the leading supply chain and retrogressive supply chain.

Details

Assembly Automation, vol. 39 no. 1
Type: Research Article
ISSN: 0144-5154

Keywords

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Article

Herbert Kotzab, Niels Skjoldager and Thorkil Vinum

Examines the formulation of supply chain strategies in complex environments. Argues that current state‐of‐the‐art e‐business and supply chain management, combined into the…

Abstract

Examines the formulation of supply chain strategies in complex environments. Argues that current state‐of‐the‐art e‐business and supply chain management, combined into the concept of e‐SCM, as well as the use of transaction cost theory, network theory and resource‐based theory, altogether can be used to form a model for analyzing supply chains with the purpose of reducing the uncertainty of formulating supply chain strategies. Presents e‐supply chain strategy optimization model (e‐SOM) as a way to analyze supply chains in a structured manner as regards strategic preferences for supply chain design, relations and resources in the chains with the ultimate purpose of enabling the formulation of optimal, executable strategies for specific supply chains. Uses research results for a specific supply chain to validate the usefulness of the model.

Details

Industrial Management & Data Systems, vol. 103 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Seamus O'Reilly and Anita Kumar

Increased economic development in emerging economies has spurred the growth of “fast fashion” and this in turn has led to not only an opportunity for recycling activity…

Abstract

Purpose

Increased economic development in emerging economies has spurred the growth of “fast fashion” and this in turn has led to not only an opportunity for recycling activity but also a need to do so from a sustainability perspective. The purpose of this paper is to consider the emergence of such recycling activity in a developing economy.

Design/methodology/approach

A process flow approach guides identification of stakeholders and an analysis of reverse supply chain structure and processes. An adapted and extended theory of planned behaviour (TPB) model is employed to explore recycling behaviour at the household level.

Findings

The authors find rather haphazard garment recycling channels in Delhi NCR. In particular product acquisition processes are characterised by poor value appropriation and provide a limited service to households. This is supported by the householder survey that finds poor satisfaction levels with most recycling channels. PLS path modelling tested hypotheses that each of the four constructs (attitudes, subjective norm, perceived control and sense of duty) are significant determinants of “intention to plan to recycle”. Having tested for various possible meditating effects, sense of duty was found to act as a precursor to attitude. In this model all other constructs were significant determinants of intention to recycle garments. Thus the study highlights the role of “sense of duty” in attitude formation, a key determinant of intention to recycle garments. This highlights the importance of adherence to sustainable practices and the need for associated governance and regulation. Subjective norm points to the impact of a range of people, including experts. While perceived control points to difficulties encountered both from a self-efficacy and external (opportunity) perspectives.

Practical implications

The findings suggest that reverse supply chain design should address the limitations of the product acquisition process (especially poor value appropriation and limited collection services) and respond to household motivational factors and perceived difficulties.

Originality/value

The study considers the impact of the garment product lifecycle on household behaviour. In this context the adapted TPB model addressed the role of conscious planning. The model is extended to include sense of duty, this contributes to emerging work in this field.

Details

The International Journal of Logistics Management, vol. 27 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

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