scholarly journals Misplaced Inventory and Lead-Time in the Supply Chain: Analysis of Decision-Making on RFID Investment with Service Level

2014 ◽  
Vol 2014 ◽  
pp. 1-17
Author(s):  
Li-Hao Zhang ◽  
Ti-Jun Fan ◽  
Wen-Chyuan Chiang ◽  
Feng Tao
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Lead Time ◽  
Service Level ◽  
Transfer Payment ◽  
Rfid Technology ◽  
Widespread Application ◽  
Service Levels ◽  
Rfid Tag ◽  
The Cost

Radio-frequency identification (RFID), as the key technology of Internet of Things (IoT), has been hailed as a major innovation to solve misplaced inventory and reduce lead-time. Many retailers have been pushing their suppliers to invest this technology. However, its associated costs seem to prohibit its widespread application. This paper analyzes the situation of service level in a retail supply chain, which has resulted from misplaced inventory and lead-time. By newsvendor model, we analyze the difference between with- and without-RFID technologies in service level of centralized and decentralized supply chains, respectively. Then with different service levels, we determine the tag cost thresholds at which RFID technology investment becomes profitable in centralized and decentralized supply chains, respectively. Furthermore, we apply a linear transfer payment coefficient strategy to coordinate with the decentralized supply chain. It is found that whether the adoption of RFID technology improves the service level depends on the cost of RFID tag in the centralized system, but it improves the service level in the decentralized system when only the supplier bears the cost of RFID tag. Moreover, the same cost thresholds of RFID tag with different service levels exist in both the centralized and the decentralized cases.

scholarly journals Optimal Decision for Fashion Supply Chains with Service Level Constraint and Controllable Lead Time

2015 ◽  
Vol 2015 ◽  
pp. 1-9 ◽  
Author(s):  
Guo Li ◽  
Yu-chen Kang ◽  
Guan Xu
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Exponential Distribution ◽  
Lead Time ◽  
Unit Cost ◽  
Service Level ◽  
Safety Factors ◽  
Controllable Lead Time ◽  
Production Quantity ◽  
Ordering Quantity

We study a two-echelon supply chain inventory model with controllable lead time and service level constraint in fashion supply chains, in which we assume that the unit cost of compressing lead time follows exponential distribution. Under these conditions we investigate the optimal ordering quantity and production quantity in the fashion supply chain by minimizing the joint total cost. Simultaneously, we work out the boundaries of ordering quantity and production quantity, which simplify the computation. Furthermore, numerical examples are presented to test the feasibility of the model. The results show that assuming the unit cost of compressing lead time in accordance with exponential distribution is realistic. It also notices that the optimal order and production decision for fashion supply chains are constrained obviously by the service level and safety factors. What is more, the holding cost rate of both the service level and safety factors has a certain influence on it. And by further analyzing on some references in the last part, we have done some extensions and found some interesting results.

scholarly journals Research of material and technical resources inventory management in projects supply chains

2021 ◽  
Vol 2 (2(58)) ◽  
pp. 26-32
Author(s):  
Kateryna Semenchuk ◽  
Tetiana Shutenko
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Inventory Management ◽  
Product Life Cycle ◽  
Service Level ◽  
Project Managers ◽  
Chain Management ◽  
The Face ◽  
The Cost

The object of research is the processes of material and technical support of projects in the field of supply chain management. One of the most challenging areas faced by logistics and project managers is determining the appropriate level of supply chain inventory management when implementing projects. Today, there is a demand for the development and implementation of dynamic supply chains, the essence of which is to increase the service level by increasing the speed of response to customer requests and flexibility in excess components (high stock levels, unbalanced duration of supply cycles), taking into account the uncertainty of demand.The analysis of the justification of the value of the supply chain, namely of such components as logistics costs, the cost of storing inventories and deficit costs, is carried out. Models of inventory management in the supply chain with centralized and decentralized service are presented. Calculations of the indicators of the standard deviation of demand and the duration of the supply cycle, the values of the cyclic and safety stock are presented. For the situation of centralized service of the resource flow, the influence of the demand dependence on the stock level was investigated.The study used the theory of supply chain management and project management, which made it possible to take into account the variability of demand and the duration of supply. As a result of the work, models of the volume of insurance stocks in conditions of uncertainty in demand and the duration of the supply cycle of resources are proposed. In order to ensure the optimal strategy of resource provision, the concept of «service level» was investigated. The service level of the first kind (cyclical service level) and the service level of the second kind (saturated demand) are considered.The results of this research provide an opportunity to improve project efficiency in the face of volatile demand, reduced product life cycle and increased competition. Such changes require supply chains to develop strategies that are focused on the end user, that is, an integrated supply chain management strategy is required.

Pricing and service decision of dual-channel operations in an O2O closed-loop supply chain

2017 ◽  
Vol 117 (8) ◽  
pp. 1567-1588 ◽  
Author(s):  
Lingcheng Kong ◽  
Zhiyang Liu ◽  
Yafei Pan ◽  
Jiaping Xie ◽  
Guang Yang
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Service Level ◽  
Return Rate ◽  
Transfer Payment ◽  
Channel Conflict ◽  
Content Type ◽  
Dual Channel

Purpose The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop supply chain (CLSC) changed the relationship between manufacturers and retailers, thus resulting in channel conflict. The purpose of this paper is to take a dual-channel operations of CLSC as the research target, where a manufacturer sells a single product through a direct e-channel as well as a conventional retail channel; the retailer are responsible for collecting used products in the reverse supply chain and the manufacturer are responsible for remanufacturing. Design/methodology/approach The authors build a benchmark model of dual-channel price and service competition and take the return rate, which is considered to be related to the service level of the retailer, as the function of the service level to extend the model in the reverse SC. The authors then analyze the optimal pricing and service decision under centralization and decentralization, respectively. Finally, with the revenue-sharing factor, wholesale price and recycling price transfer payment coefficient as contract parameters, the paper also designs a revenue-sharing contract led by the manufacturer and explores in what situation the contract could realize the Pareto optimization of all players. Findings In the baseline model, the results show that optimal price and service level correlate positively in centralization; however, the relation relies on consumers’ price sensitivity in decentralization. In the extension model, the relationship between price and service level also relies on the relative value of increased service cost and remanufacturing saved cost. When the return rate correlates with the service level, a recycling transfer payment can elevate the service level and thus raise the return rate. Through analyzing the parameters in revenue-sharing contract, a point can be reached where lowering the wholesale price and raising the transfer payment coefficient will promote retailers to share revenue. Practical implications Many enterprises establish the dual-channel distribution system both online and offline, which need to understand how to resolve their channel conflict. The conflict is especially strong in CLSC with remanufacturing. The result helps the node enterprises realize the coordination of the dual-channel CLSC. Originality/value It takes into account the fact that there are two complementary relationships, such as online selling and offline delivery; used product recycling and remanufacturing. The authors optimize the strategy of product pricing and service level in order to solve channel conflict and double marginalization in the closed-loop dual-channel distribution network.

A Machine Learning-Based System for Predicting Service-Level Failures in Supply Chains

2021 ◽  
Author(s):  
Gabrielle Gauthier Melançon ◽  
Philippe Grangier ◽  
Eric Prescott-Gagnon ◽  
Emmanuel Sabourin ◽  
Louis-Martin Rousseau
Keyword(s):  
Machine Learning ◽  
Supply Chain ◽  
Service Level ◽  
Learning System ◽  
Safety Stock ◽  
Service Levels ◽  
Sources Of Uncertainty ◽  
Supply Chain Efficiency ◽  
Percentage Points ◽  
Different Sources

Despite advanced supply chain planning and execution systems, manufacturers and distributors tend to observe service levels below their targets, owing to different sources of uncertainty and risks. These risks, such as drastic changes in demand, machine failures, or systems not properly configured, can lead to planning or execution issues in the supply chain. It is too expensive to have planners continually track all situations at a granular level to ensure that no deviations or configuration problems occur. We present a machine learning system that predicts service-level failures a few weeks in advance and alerts the planners. The system includes a user interface that explains the alerts and helps to identify failure fixes. We conducted this research in cooperation with Michelin. Through experiments carried out over the course of four phases, we confirmed that machine learning can help predict service-level failures. In our last experiment, planners were able to use these predictions to make adjustments on tires for which failures were predicted, resulting in an improvement in the service level of 10 percentage points. Additionally, the system enabled planners to identify recurrent issues in their supply chain, such as safety-stock computation problems, impacting the overall supply chain efficiency. The proposed system showcases the importance of reducing the silos in supply chain management.

Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time

2016 ◽  
Vol 7 (2) ◽  
pp. 84-106 ◽  
Author(s):  
Prashant Jindal ◽  
Anjana Solanki
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Cost Allocation ◽  
Optimal Solution ◽  
Service Level ◽  
Decision Variable ◽  
Allocation Model ◽  
Controllable Lead Time ◽  
Ordering Cost Reduction

This paper investigates the coordination issue in a decentralized supply chain having a vendor and a buyer for a defective product. The authors develop two inventory models with controllable lead time under service level constraint. The first one is propose under decentralized mode based on the Stackelberg model, the other one is propose under centralized mode of the integrated supply chain. Ordering cost reduction is also including as a decision variable along with shipping quantity, lead time and number of shipments. Computational findings using the software Matlab 7.0 are provided to find the optimal solution. The results of numerical examples show that centralized mode is better than that of decentralized mode, and to induce both vendor and buyer for coordination, proposed cost allocation model is effective. The authors also numerically investigate the effects of backorder parameter on the optimal solutions. Benefit of ordering cost reduction in both models is also provided.

scholarly journals Comparison of particular logistic models’ adoption in the Czech Republic

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Petra Vrbová ◽  
Václav Cempírek
Keyword(s):  
Supply Chain ◽  
Czech Republic ◽  
Lead Time ◽  
Logistic Model ◽  
Logistic Models ◽  
Service Level ◽  
Time Service ◽  
The Czech Republic ◽  
Total Cost ◽  
Challenging Tasks

Abstract Managing inventory is considered as one of the most challenging tasks facing supply chain managers and specialists. Decisions related to inventory locations along with level of inventory kept throughout the supply chain have a fundamental impact on the response time, service level, delivery lead-time and the total cost of the supply chain. The main objective of this paper is to identify and analyse the share of a particular logistic model adopted in the Czech Republic (Consignment stock, Buffer stock, Safety stock) and also compare their usage and adoption according to different industries. This paper also aims to specify possible reasons of particular logistic model preferences in comparison to the others. The analysis is based on quantitative survey held in the Czech Republic.

Comparative multi criteria analysis and dependent optimisation through integrated supply chain

2014 ◽  
Vol 63 (8) ◽  
pp. 1046-1069 ◽  
Author(s):  
Sanjay Sharma ◽  
Akshat Sisodia
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Service Level ◽  
Inventory Level ◽  
Inventory Policies ◽  
Inventory Cost ◽  
Content Type ◽  
Customer Service Level ◽  
Integrated Supply Chain ◽  
Different Levels

Purpose – The purpose of this paper is to compare various inventory policies and their effect on various performance metrics at different levels of a multi stage supply chain. Later the model is integrated to include optimization of entire supply chain through implementation of collaborative supply chain model. Design/methodology/approach – Alternative inventory policies have been developed at different echelons and a comparison reflecting the usability on various factors such as inventory level, inventory cost and service level is presented so as to support the decision-making process. Various inventory policies such as economic order quantity, periodic ordering (T, M) and stock to demand have been considered. Along with the basic assumptions; lead time, demand variability, variability in demand during lead time, stock out costs have also been included to make the model more applicable to practical situations. Findings – After the selection of most appropriate inventory policy at each level through a decision matrix, the total cost of operating such a supply chain is calculated along with other parameters such as service level and inventory turns. The approach is of aggregating the optimized value at each echelon referred to as aggregated supply chain in the paper. Then the concept of integrated supply chain is introduced which optimizes the supply chain as a whole, rather than aggregating local optima. The comparison is made between the two approaches that prove the integrated supply chain's superiority. Furthermore, dependent optimization is run as it is not practically possible for each echelon to optimize at the same time. Originality/value – Each echelon is allowed to optimize at a time and other echelons assume corresponding values. This final comparative multi criterion analysis is based on the three factors, i.e. inventory cost, customer service level and inventory turnover with different weights assigned to each factor at different levels of a supply chain. Finally a consolidation of results is made to reflect the overall preference which proves that an integrated supply chain best serves all the parameters combined together.

Procurement Approaches in Different Supply Chains

2013 ◽  
Vol 436 ◽  
pp. 551-556
Author(s):  
Stefan Pap ◽  
Liviu Morar
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Supply Chains ◽  
Product Life Cycle ◽  
Point Of View ◽  
Complex Environment ◽  
Supplier Relationships ◽  
Product Life ◽  
Supply Chain Efficiency ◽  
The Cost

From a purchasing point of view, it can be argued that in order for a supply chain to be efficient the cost of purchasing must be balanced with risk pertaining to the supply market and the purchased product. To decide on the appropriate forms of supplier relationships today, we argue that there are three main dimensions to be considered: A more complex environment. Supply chain efficiency. Product life cycle.

A simulation–optimization approach for a multi-period, multi-objective supply chain with demand uncertainty and an option contract

SIMULATION ◽  
2018 ◽  
Vol 94 (7) ◽  
pp. 649-662 ◽  
Author(s):  
M Hajian Heidary ◽  
A Aghaie ◽  
A Jalalimanesh
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Demand Uncertainty ◽  
Risk Attitude ◽  
Service Level ◽  
Complex Problem ◽  
Optimization Approach ◽  
Option Contract ◽  
Risk Sensitive ◽  
Objective Model

One of the main challenges in global procurement problems is the uncertainty in the demand and supply sides of supply chains. Besides, decision making in the stochastic supply chains is a complex problem. A powerful technique for decision analysis in complex stochastic problems is simulation. In this paper we propose a simulation-based optimization approach to solve a bi-objective (profit and service level) supply chain with uncertain customer demands and disruption events in the suppliers. The basic assumptions used in this paper are adopted from the multi-period newsvendor problem. In addition, based on the risk attitude of the buyers (retailers), to cope with the uncertainties, they can sign an option contract, reserving additional capacity in the secondary suppliers. Hence, a simulation approach is used to model the behavior (risk attitude) of the buyers. Indeed, because of the demand uncertainty, at the beginning of each contract period, buyers should decide on the amount of ordering from the primary suppliers. The risk attitude of the retailer (as a spectrum) is defined based on the amount of ordering from the primary supplier. Also, we use the Non-dominated Sorting Genetic Algorithm to optimize the bi-objective model. Finally, a numerical example has been solved with the proposed algorithm and the results are reported. The results showed that if the profit is more important than service level, the risk sensitive retailer prefers to show more risk averse behavior.

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