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1 – 10 of 552Ting 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…
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.
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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.
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Dilupa Nakandala, Henry Lau and Andrew Ning
When making sourcing decisions, both cost optimization and customer demand fulfillment are equally important for firm competitiveness. The purpose of this paper is to develop a…
Abstract
Purpose
When making sourcing decisions, both cost optimization and customer demand fulfillment are equally important for firm competitiveness. The purpose of this paper is to develop a stochastic search technique, hybrid genetic algorithm (HGA), for cost-optimized decision making in wholesaler inventory management in a supply chain network of wholesalers, retailers and suppliers.
Design/methodology/approach
This study develops a HGA by using a mixture of greedy-based and randomly generated solutions in the initial population and a local search method (hill climbing) applied to individuals selected for performing crossover before crossover is implemented and to the best individual in the population at the end of HGA as well as gene slice and integration.
Findings
The application of the proposed HGA is illustrated by considering multiple scenarios and comparing with the other commonly adopted methods of standard genetic algorithm, simulated annealing and tabu search. The simulation results demonstrate the capability of the proposed approach in producing more effective solutions.
Practical implications
The pragmatic importance of this method is for the inventory management of wholesaler operations and this can be scalable to address real contexts with multiple wholesalers and multiple suppliers with variable lead times.
Originality/value
The proposed stochastic-based search techniques have the capability in producing good-quality optimal or suboptimal solutions for large-scale problems within a reasonable time using ordinary computing resources available in firms.
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Marisol S. Romero-Mancilla, Kenneth E. Hernandez-Ruiz and Diana L. Huerta-Muñoz
The purpose of this paper is to introduce a three-echelon multimodal transportation problem applied to a humanitarian logistic case study that occurred in Mexico.
Abstract
Purpose
The purpose of this paper is to introduce a three-echelon multimodal transportation problem applied to a humanitarian logistic case study that occurred in Mexico.
Design/methodology/approach
This study develops a methodology combining a transshipment problem and an adaptation of the multidepot heterogeneous fleet vehicle routing problem to construct a mathematical model that incorporates the use of land-based vehicles and drones. The model was applied to the case study of the Earthquake on September 19, 2017, in Mexico, using the Gurobi optimization solver.
Findings
The results ratified the relevance of the study, showing an inverse relationship between transportation costs and delivery time; on the flip side, the model performed in a shorter CPU time with medium and small instances than with large instances.
Research limitations/implications
While the size of the instances limits the use of the model for big-scale problems, this approach manages to provide a good representation of a transportation network during a natural disaster using drones in the last-mile deliveries.
Originality/value
The present study contributes to a model that combines a vehicle routing problem with transshipment, multiple depots and a heterogeneous fleet including land-based vehicles and drones. There are multiple models present in the literature for these types of problems that incorporate the use of these transportation modes; however, to the best of the authors’ knowledge, there are still no proposals similar to this study.
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Chao Wang, Shengchuan Zhou, Yang Gao and Chao Liu
The purpose of this paper is to provide an effective solution method for the truck and trailer routing problem (TTRP) which is one of the important NP-hard combinatorial…
Abstract
Purpose
The purpose of this paper is to provide an effective solution method for the truck and trailer routing problem (TTRP) which is one of the important NP-hard combinatorial optimization problems owing to its multiple real-world applications. It is a generalization of the famous vehicle routing problem (VRP), involving a group of geographically scattered customers served by the vehicle fleet including trucks and trailers.
Design/methodology/approach
The meta-heuristic solution approach based on bat algorithm (BA) in which a local search procedure performed by five different neighborhood structures is developed. Moreover, a self-adaptive (SA) tuning strategy to preserve the swarm diversity is implemented. The effectiveness of the proposed SA-BA is investigated by an experiment conducted on 21 benchmark problems that are well known in the literature.
Findings
Computational results indicate that the proposed SA-BA algorithm is computationally efficient through comparison with other existing algorithms found from the literature according to solution quality. As for the actual computational time, the SA-BA algorithm outperforms others. However, the scaled computational time of the SA-BA algorithm underperforms the other algorithms.
Originality/value
In this work the authors show that the proposed SA-BA is effective as a method for the TTRP problem. To the authors’ knowledge, the BA has not been applied previously, as in this work, to solve the TTRP problem.
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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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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.
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To describe how the well‐known Shapley Value concept from cooperative game theory can be used as an approach to solve the transshipment problem.
Abstract
Purpose
To describe how the well‐known Shapley Value concept from cooperative game theory can be used as an approach to solve the transshipment problem.
Design/methodology/approach
This paper provides a numerical example for a three‐person game in a non‐cooperative environment, a selected cooperative environment, and a fully cooperative environment. The well‐known Shapely Value concept from cooperative game theory is used as an approach to solve the transshipment problem and show “how” the pooling coalitions should be formed. The appurtenance of the Shapley Value is verified to ensure that a stable solution exists.
Findings
The primary focus of this paper is to describe how the well‐known Shapley Value concept from cooperative game theory can be used as an approach to solve the transshipment problem and show “how” the pooling coalitions should be formed.
Research limitations/implications
While pooling coalitions are presented, this paper does not discuss revenue sharing.
Practical implications
This paper helps students understand “how to” make the right decisions about where they want to position themselves with respect to supply chain strategies.
Originality/value
The principal contribution of this approach is for establishing a pooling coalition in order to provide a more stable and cooperative solution. This paper also presents application to recent supply chain management business scenarios found in industry.
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Mohsen Anvari, Alireza Anvari and Omid Boyer
This paper aims to examine the integration of lateral transshipment and road vulnerability into the humanitarian relief chain in light of affected area priority to address…
Abstract
Purpose
This paper aims to examine the integration of lateral transshipment and road vulnerability into the humanitarian relief chain in light of affected area priority to address equitable distribution and assess the impact of various parameters on the total average inflated distance traveled per relief item.
Design/methodology/approach
After identifying comprehensive critical criteria and subcriteria, a hybrid multi-criteria decision-making framework was applied to obtain the demand points’ weight and ranking in a real-life earthquake scenario. Direct shipment and lateral transshipment models were then presented and compared. The developed mathematical models are formulated as mixed-integer programming models, considering facility location, inventory prepositioning, road vulnerability and quantity of lateral transshipment.
Findings
The study found that the use of prioritization criteria and subcriteria, in conjunction with lateral transshipment and road vulnerability, resulted in a more equitable distribution of relief items by reducing the total average inflated distance traveled per relief item.
Research limitations/implications
To the best of the authors’ knowledge, this study is one of the first research on equity in humanitarian response through prioritization of demand points. It also bridges the gap between two areas that are typically treated separately: multi-criteria decision-making and humanitarian logistics.
Practical implications
This is the first scholarly work in Shiraz focused on the equitable distribution system by prioritization of demand points and assigning relief items to them after the occurrence of a medium-scale earthquake scenario considering lateral transshipment in the upper echelon.
Originality/value
The paper clarifies how to prioritize demand points to promote equity in humanitarian logistics when the authors have faced multiple factors (i.e. location of relief distribution centers, inventory level, distance, lateral transshipment and road vulnerability) simultaneously.
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Jasper Liao and Arabinda Acharya
As determined by the Financial Action Task Force, trade‐based money laundering (TBML) has become one of the three major money laundering methods used today. However, there has…
Abstract
Purpose
As determined by the Financial Action Task Force, trade‐based money laundering (TBML) has become one of the three major money laundering methods used today. However, there has been very limited acknowledgment of the risk and counter‐measures against TBML until recently. This is particularly problematic with ever increasing trade volumes through transshipment and container shipping which is getting larger by the day. This paper aims to examine the role of TBML as a vehicle for terrorism financing and laundering proceeds of other criminal activity. It also examines the practice of transshipment, analyzes the challenges that this particular phenomenon poses to detection of TBML activity, and looks at possible alternative policy responses to mitigate additional money laundering risks.
Design/methodology/approach
This paper analyzes reports made by international organizations and government bodies, particularly, the US Government, dealing with various aspects of financial crime, import/export activity, and world trade statistics, in order to identify major challenges and possible solutions to the problem. Interviews were also conducted with the same goals.
Findings
Efforts to monitor and staunch the flow of illicit money through trade would be enhanced through more widespread coverage of customs cooperation and standardization of information sharing procedures between national customs agencies. Also, measures should be taken to make free trade areas more transparent to regulatory scrutiny.
Originality/value
This paper serves to expand the limited amount of scholarship on TBML and to suggest a policy approach towards detection of this kind of money laundering activity to policymakers.
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