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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. 53 no. 6
Type: Research Article
ISSN: 0368-492X

Keywords

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: 17 August 2012

Albert Wee Kwan Tan and Olli‐Pekka Hilmola

Transshipment points in container transport are a vital part of the functioning and competitiveness of global logistics systems. However, competition between different…

3428

Abstract

Purpose

Transshipment points in container transport are a vital part of the functioning and competitiveness of global logistics systems. However, competition between different geographical locations is ongoing and therefore competitive landscape and leading actors are continuously changing. The purpose of this paper is to understand one of world's leading transshipment points, Singapore, and its competitiveness in the future as lower‐cost alternative locations try to challenge its position.

Design/methodology/approach

Observations are based and mostly drawn upon qualitative case study interviews among 11 key companies involved in Singapore's transshipment business. Along with this, second‐hand national statistics are used to support the findings.

Findings

As Singapore is the largest container sea port in the world, it has several advantages at its disposal to defend its position against the others. These are mainly due to connectivity around the world, and second, the high frequency of these connections. However, even though the customs procedures are generally argued to be smooth and state of the art, in some comments from real life actors, problematic areas and further room for improvement were inferred. Longitudinal statistics from national consensus also show, for example, that the electronics industry transshipment volumes are on the decline, and the main reason could possibly be due to the relocation of manufacturing sites to China or Vietnam, changing in turn the transshipment point in Asia. For future consideration, Singapore should enhance its capabilities in localization of value‐added services or manufacturing while goods are in‐transit, and also invest in technologies enabling higher container fill rates for airline shipments.

Research limitations/implications

In most qualitative research, amount of observations is always limited and this work is not an exception with this regard. However, reliability caveat is tried to be covered with careful selection of interviewed organizations and using second‐hand national statistics to verify the interviewees' inputs.

Practical implications

This research has value for all countries with high‐cost transshipment points, in building their operations to sustain against new lower‐cost entrants. Also, the functioning of global supply chains with respect to cost, lead time and technical capability are better understood through this case study, as all the examples are drawn from real life.

Originality/value

The paper shows how global logistics networks have changed significantly in recent decades, and it is increasingly in line with case study findings after major sea ports such as Dubai and Shanghai have grown into leading position throughout the world.

Details

Industrial Management & Data Systems, vol. 112 no. 7
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…

1567

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

Book part
Publication date: 18 September 2024

M. Bina Celine Dorathy

India should hold a privileged position in maritime transportation due to its extensive coastline and advantageous location. However, the country heavily relies on other maritime…

Abstract

India should hold a privileged position in maritime transportation due to its extensive coastline and advantageous location. However, the country heavily relies on other maritime nations like Singapore and Colombo for transshipment due to insufficient infrastructure and policy framework, and this has created disadvantage to Indian goods in the international market. The government has launched a significant drive to promote three transshipment ports in southern India with top-notch amenities in response to this worrying circumstance. It is anticipated that these ports would compete with the existing transshipment ports, particularly with Colombo, and divert the transshipped goods back to India. The move is expected to make Indian exports more competitive besides making India less prone to geopolitical and economic disturbances in the region. However, these initiatives have been met with many challenges. In fact, the first attempt of the Indian government to set up an International Container Transshipment Terminal (ICTT) at Vallarpadam in Cochin Port has met with failure despite its best infrastructure and connectivity. High-cost structure seems to deter the competitiveness of this port. Furthermore, the development of Vizhinjam into a transshipment hub in the same region has put additional pressure on Vallarpadam. This chapter draws attention to certain factors that might be considered to enhance the competitiveness of Cochin Port. Also, the study highlights the snags that could have well been avoided while implementing the project and might as well be avoided while implementing other projects in line.

Details

The Emerald Handbook of Tourism Economics and Sustainable Development
Type: Book
ISBN: 978-1-83753-709-9

Keywords

Article
Publication date: 18 May 2012

Ting He, William Ho, Carman Lee Ka Man and Xiaofei Xu

The purpose of this research is to develop a holistic approach to maximize the customer service level while minimizing the logistics cost by using an integrated multiple criteria…

1924

Abstract

Purpose

The purpose of this research is to develop a holistic approach to maximize the customer service level while minimizing the logistics cost by using an integrated multiple criteria decision making (MCDM) method for the contemporary transshipment problem. Unlike the prevalent optimization techniques, this paper proposes an integrated approach which considers both quantitative and qualitative factors in order to maximize the benefits of service deliverers and customers under uncertain environments.

Design/methodology/approach

This paper proposes a fuzzy‐based integer linear programming model, based on the existing literature and validated with an example case. The model integrates the developed fuzzy modification of the analytic hierarchy process (FAHP), and solves the multi‐criteria transshipment problem.

Findings

This paper provides several novel insights about how to transform a company from a cost‐based model to a service‐dominated model by using an integrated MCDM method. It suggests that the contemporary customer‐driven supply chain remains and increases its competitiveness from two aspects: optimizing the cost and providing the best service simultaneously.

Research limitations/implications

This research used one illustrative industry case to exemplify the developed method. Considering the generalization of the research findings and the complexity of the transshipment service network, more cases across multiple industries are necessary to further enhance the validity of the research output.

Practical implications

The paper includes implications for the evaluation and selection of transshipment service suppliers, the construction of optimal transshipment network as well as managing the network.

Originality/value

The major advantages of this generic approach are that both quantitative and qualitative factors under fuzzy environment are considered simultaneously and also the viewpoints of service deliverers and customers are focused. Therefore, it is believed that it is useful and applicable for the transshipment service network design.

Details

The International Journal of Logistics Management, vol. 23 no. 1
Type: Research Article
ISSN: 0957-4093

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: 1 May 1992

Dick Chan Cheung Ho

Studies the marketing system of the Manila International ContainerTerminal (MICT) in the Philippines. The data collection methodscomprised overseas trips to carry out unstructured…

Abstract

Studies the marketing system of the Manila International Container Terminal (MICT) in the Philippines. The data collection methods comprised overseas trips to carry out unstructured field observation and interviews, a nine‐item structured questionnaire, and unobtrusive measures from Government statistical publications in four different countries. In the data‐analysis process, the questionnaire data were used to rank the importance of services required by major shipping lines in order to formulate the appropriate marketing strategy. The Government statistics data were used to test a hypothesis that Manila is more cost‐effective as a transshipment centre compared with three other major Asian ports. Testing of the hypothesis was based on the theory of General Equilibrium. A response rate of 60 per cent was obtained from the 30 mailed questionnaires. Finds that the most important services required by the major shipping lines were: (1) berth availability, (2) efficient operation, (3) cost. On the transshipment economics analysis, the alternative hypothesis: It is more cost‐effective to use Manila as a transshipment centre compared with Hong Kong, Kaohsiung and Singapore, was found to be sustained. Notes, however, that, although Manila is found to be the most cost‐effective on the whole system, Singapore is the cheapest, when considering stevedoring cost only, while Hong Kong is the cheapest when considering port charges and vessel‐steaming cost. On the whole, the existing marketing strategy of MICT, as observed during the various trips, was found to be sound and well‐justified. Nevertheless, makes recommendations, based on the findings in this study, aimed at increasing berth availability, ensuring efficient operation and being cost‐competitive and effective.

Details

International Journal of Physical Distribution & Logistics Management, vol. 22 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 17 February 2023

Esen Andiç-Mortan and Cigdem Gonul Kochan

This study aims to focus on building a conceptual closed-loop vaccine supply chain (CLVSC) to decrease vaccine wastage and counterfeit/fake vaccines.

1419

Abstract

Purpose

This study aims to focus on building a conceptual closed-loop vaccine supply chain (CLVSC) to decrease vaccine wastage and counterfeit/fake vaccines.

Design/methodology/approach

Through a focused literature review, the framework for the CLVSC is described, and the system dynamics (SD) research methodology is used to build a causal loop diagram (CLD) of the proposed model.

Findings

In the battle against COVID-19, waste management systems have become overwhelmed, which has created negative environmental and extremely hazardous societal impacts. A key contributing factor is unused vaccine doses, shown as a source for counterfeit/fake vaccines. The findings identify a CLVSC design and transshipment operations to decrease vaccine wastage and the potential for vaccine theft.

Research limitations/implications

This study contributes to establishing a pandemic-specific VSC structure. The proposed model informs the current COVID-19 pandemic as well as potential future pandemics.

Social implications

A large part of the negative impact of counterfeit/fake vaccines is on human well-being, and this can be avoided with proper CLVSC.

Originality/value

This study develops a novel overarching SD CLD by integrating the epidemic model of disease transmission, VSC and closed-loop structure. This study enhances the policymakers’ understanding of the importance of vaccine waste collection, proper handling and threats to the public, which are born through illicit activities that rely on stolen vaccine doses.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 13 no. 2
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 3 June 2021

Parviz Fattahi and Mehdi Tanhatalab

This study aims to design a supply chain network in an uncertain environment while exists two options for distribution of the perishable product and production lot-sizing is…

Abstract

Purpose

This study aims to design a supply chain network in an uncertain environment while exists two options for distribution of the perishable product and production lot-sizing is concerned.

Design/methodology/approach

Owing to the complexity of the mathematical model, a solution approach based on a Lagrangian relaxation (LR) heuristic is developed which provides good-quality upper and lower bounds.

Findings

The model output is discussed through various examples. The introduction of some enhancements and using some heuristics results in better outputs in the solution procedure.

Practical implications

This paper covers the modeling of some real-world problems in which demand is uncertain and managers face making some concurrent decisions related to supply chain management, transportation and logistics and inventory control issues. Furthermore, considering the perishability of product in modeling makes the problem more practically significant as these days there are many supply chains handling dairy and other fresh products.

Originality/value

Considering uncertainty, production, transshipment and perishable product in the inventory-routing problem makes a new variant that has not yet been studied. The proposed novel solution is based on the LR approach that is enhanced by some heuristics and some valid inequalities that make it different from the current version of the LR used by other studies.

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