scholarly journals Partial Coordination May Increase Overall Costs in Supply Chains

2008 ◽  
Vol 2 (2) ◽  
pp. 47-62 ◽  
Author(s):  
Waldemar Kaczmarczyk
Keyword(s):  
Supply Chain ◽  
Computational Study ◽  
Mixed Integer ◽  
Single Model ◽  
Sequential Method ◽  
Production And Distribution ◽  
Planning Methods ◽  
Production And Distribution Planning ◽  
The Right ◽  
The Impact

This paper presents a computational study to evaluate the impact of coordinating production and distribution planning in a two-level industrial supply chain. Three planning methods are compared. The first emulates the traditional way of planning. The two other coordinate plans of the supplier and of all the buyers according to the Vendor Managed Inventory (VMI) approach. The monolithic method solves a single model describing the entire optimization problem. The sequential method copies the imperfect VMI practice. All three methods are implemented by means of Mixed Integer Programming models. The results presented prove that the right choice of planning method is very important for overall cost of the supply chain. In contrast to the previous research, it turned out that information sharing without full coordination may even lead to increase in the overall cost. For some companies applying the VMI approach, developing exact models and solving them almost optimally may therefore be very important.

scholarly journals Modeling and Optimization Sustainable Forest Supply Chain Considering Discount in Transportation System and Supplier Selection under Uncertainty

Forests ◽  
2021 ◽  
Vol 12 (8) ◽  
pp. 964
Author(s):  
Komeyl Baghizadeh ◽  
Dominik Zimon ◽  
Luay Jum’a
Keyword(s):  
Supply Chain ◽  
Working Hours ◽  
Mixed Integer ◽  
Forest Industry ◽  
Northern Iran ◽  
Suggested Approach ◽  
Tactical Decisions ◽  
Environmental Goals ◽  
Forest Supply Chain ◽  
The Impact

In recent decades, the forest industry has been growingly expanded due to economic conditions, climate changes, environmental and energy policies, and intense demand changes. Thus, appropriate planning is required to improve this industry. To achieve economic, social and environmental goals, a supply chain network is designed based on a multi-period and multi-product Mixed-Integer Non-Linear Programming (MINLP) model in which the objective is to maximize the profit, minimize detrimental environmental effects, improve social effects, and minimize the number of lost demands. In addition, to improve forest industry planning, strategic and tactical decisions have been implemented throughout the supply chain for all facilities, suppliers and machinery. These decisions significantly help to improve processes and product flows and to meet customers’ needs. In addition, because of the presence of uncertainty in some parameters, the proposed model was formulated and optimized under uncertainty using the hybrid robust possibilistic programming (HRPP-II) approach. The -constraint technique was used to solve the multi-objective model, and the Lagrangian relaxation (LR) method was utilized to solve the model of more complex dimensions. A case study in Northern Iran was conducted to assess the efficiency of the suggested approach. Finally, a sensitivity analysis was performed to determine the impact of important parameters on objective functions. The results of this study show that increasing the working hours of machines instead of increasing their number, increasing the capacity of some facilities instead of establishing new facilities and expanding the transport fleet has a significant impact on achieving predetermined goals.

scholarly journals Optimizing a Reverse Supply Chain Network for Electronic Waste under Risk and Uncertain Factors

2021 ◽  
Vol 11 (4) ◽  
pp. 1946
Author(s):  
Linh Thi Truc Doan ◽  
Yousef Amer ◽  
Sang-Heon Lee ◽  
Phan Nguyen Ky Phuc ◽  
Tham Thi Tran
Keyword(s):  
Supply Chain ◽  
Electronic Waste ◽  
Decision Makers ◽  
Reverse Supply Chain ◽  
Satisfactory Solution ◽  
Level Of Satisfaction ◽  
Proposed Model ◽  
Objective Value ◽  
The Right ◽  
The Impact

Minimizing the impact of electronic waste (e-waste) on the environment through designing an effective reverse supply chain (RSC) is attracting the attention of both industry and academia. To obtain this goal, this study strives to develop an e-waste RSC model where the input parameters are fuzzy and risk factors are considered. The problem is then solved through crisp transformation and decision-makers are given the right to choose solutions based on their satisfaction. The result shows that the proposed model provides a practical and satisfactory solution to compromise between the level of satisfaction of constraints and the objective value. This solution includes strategic and operational decisions such as the optimal locations of facilities (i.e., disassembly, repairing, recycling facilities) and the flow quantities in the RSC.

Coordinating lot sizing and integrated production and distribution scheduling with batch delivery and holding cost

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maedeh Bank ◽  
Mohammad Mahdavi Mazdeh ◽  
Mahdi Heydari ◽  
Ebrahim Teimoury
Keyword(s):  
Supply Chain ◽  
Lot Sizing ◽  
Mixed Integer ◽  
Time Interval ◽  
Content Type ◽  
Integrated Production ◽  
Holding Costs ◽  
Integrated Production And Distribution ◽  
Distribution Scheduling ◽  
Production And Distribution

PurposeThe aim of this paper is to present a method for finding the optimum balance between sequence-dependent setup costs, holding costs, delivery costs and delay penalties in an integrated production–distribution system with lot sizing decisions.Design/methodology/approachTwo mixed integer linear programming models and an optimality property are proposed for the problem. Since the problem is NP-hard, a genetic algorithm reinforced with a heuristic is developed for solving the model in large-scale settings. The algorithm parameters are tuned using the Taguchi method.FindingsThe results obtained on randomly generated instances reveal a performance advantage for the proposed algorithm; it is shown that lot sizing can reduce the average cost of the supply chain up to 11.8%. Furthermore, the effects of different parameters and factors of the proposed model on supply chain costs are examined through a sensitivity analysis.Originality/valueAlthough integrated production and distribution scheduling in make-to-order industries has received a great deal of attention from researchers, most researchers in this area have treated each order as a job processed in an uninterrupted time interval, and no temporary holding costs are assumed. Even among the few studies where temporary holding costs are taken into consideration, none has examined the effect of splitting an order at the production stage (lot sizing) and the possibility of reducing costs through splitting. The present study is the first to take holding costs into consideration while incorporating lot sizing decisions in the operational production and distribution problem.

Conflict Analysis for MINLP

2021 ◽  
Author(s):  
Timo Berthold ◽  
Jakob Witzig
Keyword(s):  
Nonlinear Optimization ◽  
Branch And Bound ◽  
Computational Study ◽  
General Purpose ◽  
Conflict Analysis ◽  
Mixed Integer ◽  
Mixed Integer Program ◽  
Global Optimality ◽  
Nonlinear Programs ◽  
The Impact

The generalization of mixed integer program (MIP) techniques to deal with nonlinear, potentially nonconvex, constraints has been a fruitful direction of research for computational mixed integer nonlinear programs (MINLPs) in the last decade. In this paper, we follow that path in order to extend another essential subroutine of modern MIP solvers toward the case of nonlinear optimization: the analysis of infeasible subproblems for learning additional valid constraints. To this end, we derive two different strategies, geared toward two different solution approaches. These are using local dual proofs of infeasibility for LP-based branch-and-bound and the creation of nonlinear dual proofs for NLP-based branch-and-bound, respectively. We discuss implementation details of both approaches and present an extensive computational study, showing that both techniques can significantly enhance performance when solving MINLPs to global optimality. Summary of Contribution: This original article concerns the advancement of exact general-purpose algorithms for solving one of the largest and most prominent problem classes in optimization, mixed integer nonlinear programs (MINLPs). It demonstrates how methods for conflict analysis that learn from infeasible subproblems can be transferred to nonlinear optimization. Further, it develops theory for how nonlinear dual infeasibility proofs can be derived from a nonlinear relaxation. This paper features a thoroughly computational study regarding the impact of conflict analysis techniques on the overall performance of a state-of-the-art MINLP solver when solving MINLPs to global optimality.

Supply and Production/Distribution Planning in Supply Chain with Genetic Algorithm

2012 ◽  
Vol 1 (1) ◽  
pp. 38-54
Author(s):  
Babak Sohrabi ◽  
MohammadReza Sadeghi Moghadam
Keyword(s):  
Genetic Algorithm ◽  
Supply Chain ◽  
Minimum Cost ◽  
Industrial Firms ◽  
Distribution Planning ◽  
Supply Chain Costs ◽  
Production And Distribution ◽  
Holding Cost ◽  
Production And Distribution Planning ◽  
Effective Use

The present study, using genetic algorithm, tries to improve material flow management in supply chain. Consequently, in this paper, an integrated supply-production and distribution planning (SPDP) is considered despite the fact that in most of the Iranian industrial firms, SPDP is done independently. The effective use of integrated SPDP not only enhances the performance rather decreases inventory cost, holding cost, shortage cost and overall supply chain costs. A quantitative mathematical model is used to the problem articulation, and then it is solved by applying heuristic genetic algorithm (GA) method. The proposed model with genetic algorithm could provide the best satisfactory result with the minimum cost. The reliability test was carried by comparing the model results with that of the amount of variables.

Optimization and Performance Evaluation of an Integrated Production-Distribution Plan in Supply Chains

2009 ◽  
Author(s):  
Behnam Fahimnia ◽  
Lee Luong ◽  
Romeo Marian
Keyword(s):  
Supply Chain ◽  
Performance Evaluation ◽  
End Users ◽  
Mixed Integer ◽  
Multiple Time ◽  
Supply Network ◽  
Distribution Centers ◽  
Production Distribution ◽  
And Performance ◽  
The Right

Supply Chain Management is the process of integrating and utilizing suppliers, manufacturers, distribution centers, and retailers; so that products are produced and delivered to the end-users at the right quantities and at the right time, while minimizing costs and satisfying customer requirements. From this definition, a supply chain includes three sub-systems: procurement, production, and distribution. The overall performance of a supply-chain is influenced significantly by the decisions taken in its production-distribution plan. A production-distribution plan excludes the procurement activities and integrates the decisions in production, transport and warehousing as well as inventory management. Hence, one key issue in the performance evaluation of a supply network is the modeling and optimization of production-distribution plan considering its actual complexity. This paper develops a mixed integer formulation for a two-echelon supply network that expands the previously reported production-distribution models through the integration of Aggregate Production Plan and Distribution Plan as well as considering the real-world variables and constraints. A Genetic Algorithm is designed for the optimization of the developed model. The methodology will be then implemented to solve a real-life problem incorporating multiple time periods, multiple products, multiple manufacturing plants, multiple warehouses and multiple end-users. To demonstrate the capability of the approach, the validation and performance evaluation of this model will be finally studied for the presented case study.

scholarly journals Identification, analysis and improvement of red meat supply chain strategies considering the impact of COVID-19 pandemic: a hybrid SWOT-QSPM approach in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Farshid Riahi Dorcheh ◽  
Seyed Hossein Razavi Hajiagha ◽  
Misagh Rahbari ◽  
Vahid Jafari-Sadeghi ◽  
Hannan Amoozad Mahdiraji
Keyword(s):  
Supply Chain ◽  
Strategic Planning ◽  
Protein Product ◽  
Red Meat ◽  
Competitive Strategies ◽  
Content Type ◽  
The Right ◽  
The Impact ◽  
Beef Supply Chain

PurposeIn recent years, and especially during the coronavirus disease 2019 (COVID-19) pandemic, the significant role of agriculture, specifically red meat, in household consumption has been increased. On the other hand, the lack of proper policymaking in the production and pricing of red meat and the lack of a comprehensive study on the beef supply chain has led to a reduction in the role of this protein product in the household food basket. Thus, in this research, comprehensive strategic planning considering the effect of the COVID-19 pandemic has been illustrated to overcome the aforementioned problems.Design/methodology/approachTo study the intended objectives, first, using qualitative methods, the strengths, weaknesses, opportunities and threats (SWOT) to the studied company's supply chain in Iran were identified and then using the SWOT-Quantitative Strategic Planning Matrix (QSPM) technique, the surrounding strategies have been analysed.FindingsThe results indicate that the most important strength of the studied company is the “access to the red meat market of the retirement plan”; the most important weakness is the “lack of required and on-time funding, especially in the condition of the COVID-19 pandemic”; the highest-ranked opportunity is the “access to banking facilities” and the main threat to the company is the “COVID-19 pandemic limitations and health protocols”. In the same vein, by examining the attractiveness score of internal and external factors, it was observed that diversity and competitive strategies would have a higher priority. Finally, the QSPM illustrated that activating the full capacity of existing infrastructure has the highest priority.Originality/valueAccording to the red meat supply chain and the link amongst different market levels, identifying, analysing and improving the beef supply chain is of particular importance. One of the threats facing the international community is the emergence of events such as the COVID-19 pandemic, which requires businesses to choose the right strategy to deal with the issue. Therefore, the main distinction of this study is to identify, analyse and improve the red meat supply chain of a real case due to the condition of the COVID-19 pandemic.

scholarly journals IDENTIFICATION EXISTENCE OF BULLWHIP EFFECT ON SUPPLY CHAIN PT. ABC

2016 ◽  
Vol 9 (1) ◽  
pp. 91
Author(s):  
Yulie Megawati
Keyword(s):  
Supply Chain ◽  
Bullwhip Effect ◽  
Raw Material ◽  
Research Model ◽  
Model Data ◽  
Material Supply ◽  
The Right ◽  
High Level ◽  
The Impact ◽  
A Company

Bullwhip effect is the main evidence of inefficiency in the supply chain of a company. Bullwhip effect describes the tendency of increasing the number of purchases of raw material supply chain<br />as a result of the inability to predict the increase in the number of requests. This study is the high level of inventory, whether as a result of the bullwhip effect or was due to an increase in demand. The purpose of this study was to determine the contribution of each factor causes of the bullwhip effect, identify the factors that provide the greatest impact on supply chain performance and find solutions to reduce the impact caused. The approach of this research is done by collecting data for inventory movement in the period 2003-2007, analyzing the interaction between members in the supply chain. Theory - the theory was used to create a research model. Data analysis is done by analyzing graphs and statistical analysis for the right to draw conclusions from this research. Results from this study that the coordination of “end to end” supply chain to reduce the impact of<br />bullwhip effect in supply chain

scholarly journals Supply chain integration within mass customization: Tactical procurement, production and distribution modeling

2021 ◽  
Vol 14 (2) ◽  
pp. 250
Author(s):  
Mouad Benbouja ◽  
Achraf Touil ◽  
Abdelwahed Echchatbi ◽  
Abdelkabir Charkaoui
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Mass Customization ◽  
Programming Model ◽  
Exact Method ◽  
Raw Material ◽  
Mixed Integer ◽  
Dyadic Relationships ◽  
Distribution Modeling ◽  
Production And Distribution

Purpose: The actual market characteristic oriented toward customers’ requirements compels decision-makers to foresee customization abilities. Mass customization represents a valuable approach to combine customizable offers with mass production processes. From a supply chain standpoint, this paper attempts to develop an integrated procurement, production and distribution modeling to describe the generated framework structure formulation within tactical decision planning level.Design/methodology/approach: The paper provides a mixed integer linear programming model of a three echelon supply chain illustrated from the automotive industry with (a) customers: Original Equipment Manufacturers (OEMs) identified as leaders and (b) first-tier supplier: wiring harnesses manufacturer (c) second-tier supplier: raw material supplier, identified as followers. The model formulation is depicted through dyadic relationships between stakeholders considering the specific operation enablers of the environment such as make to order, modular approach in addition to the corresponding inventory management policy.Findings: The integrated model is solved by an exact method which illustrates the feasibility of the formulation in addition to the observance of the applied constraints. A sensitivity analysis is performed to highlight the interdependency across some key parameters to provide managerial insights within the studied framework while keeping the optimal solvability of the model.Research limitations/implications: The limitation of this study is the computational experiment study. An extensive experiment with a real-word case will outline the optimal solvability status of the exact method and the necessity for a performance benchmark through the approximate solving approaches.Originality/value: The present research aims to contribute as first studies toward mathematical modeling for supply chain decision planning endeavor operating within mass customization business model.

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