Chemical industry supply chain optimisation using agent-based modelling

In this paper we present an application of Supply Chain Spread Sheet Simulator (SCSS) in a task dealing with chemical industry supply chain redesign and optimisation. SCSS uses principles of Agent-Based Modelling combining 4 types of agents with 3 algorithms to control their behaviour. Location Algorithm is used to place the logistics objects satisfying the demand of customers, Clarke&Wright's Savings Algorithm is applied to plan the routes and Past Stock Movement Simulation is used to control the stock levels. SCSS is developed in MS Excel using programming language Visual Basic for Applications. Its basic functionality is discussed simulating a real task dealing with the redesign of the distribution system for goods coming from chemical industry in the Czech Republic. We test 6 different structures of the distribution system differing in number of located logistics objects ranging from 1 to 6. Based on the outputs of SCSS recalculated to distribution costs we suggest decreasing the number of located warehouses from 6 to 1 estimating almost 33 % distribution costs savings per year

AI and OR in management of operations: history and trends

The last decade has seen a considerable growth in the use of Artificial Intelligence (AI) for operations management with the aim of finding solutions to problems that are increasing in complexity and scale. This paper begins by setting the context for the survey through a historical perspective of OR and AI. An extensive survey of applications of AI techniques for operations management, covering a total of over 1200 papers published from 1995 to 2004 is then presented. The survey utilizes Elsevier's ScienceDirect database as a source. Hence, the survey may not cover all the relevant journals but includes a sufficiently wide range of publications to make it representative of the research in the field. The papers are categorized into four areas of operations management: (a) design, (b) scheduling, (c) process planning and control and (d) quality, maintenance and fault diagnosis. Each of the four areas is categorized in terms of the AI techniques used: genetic algorithms, case-based reasoning, knowledge-based systems, fuzzy logic and hybrid techniques. The trends over the last decade are identified, discussed with respect to expected trends and directions for future work suggested

Impact of epidemic outbreaks (COVID-19) on global supply chains: A case of trade between Turkey and China

COVID-19 has negative impacts on supply chain operations between countries. The novelty of the study is to evaluate the sectoral effects of COVID-19 on global supply chains in the example of Turkey and China, considering detailed parameters, thanks to the developed System Dynamics (SD) model. During COVID-19 spread, most of the countries decided long period of lockdowns which impacted the production and supply chains. This had also caused decrease in capacity utilizations and industrial productions in many countries which resulted with imbalance of maritime trade between countries that increased the freight costs. In this study, cause and effect relations of trade parameters, supply chain parameters, demographic data and logistics data on disruptions of global supply chains have been depicted for specifically Turkey and China since China is the biggest importer of Turkey. Due to this disruption, mainly exports from Turkey to China has been impacted in food, chemical and mining sectors. This study is helpful to plan in which sectors; the actions should be taken by the government bodies or managers. Based on findings of this study, new policies such as onshore activities should consider to overcome the logistics and supply chain disruptions in global supply chains. This study has been presented beneficial implications for the government, policymakers and academia

A taxonomy of logistics innovations

In this paper we present a taxonomy of supply chain and logistics innovations, which is based on an extensive literature survey. Our primary goal is to provide guidelines for choosing the most appropriate innovations for a company, such that the company can outrun its competitors. We investigate the factors, both internal and external to the company, that determine the applicability and effectiveness of the listed innovations. We support our suggestions with real world cases reported in literature

Food supply chain network robustness : a literature review and research agenda

Today’s business environment is characterized by challenges of strong global competition where companies tend to achieve leanness and maximum responsiveness. However, lean supply chain networks (SCNs) become more vulnerable to all kind of disruptions. Food SCNs have to become robust, i.e. they should be able to continue to function in the event of disruption as well as in normal business environment. Current literature provides no explicit clarification related to robustness issue in food SCN context. This paper explores the meaning of SCN robustness and highlights further research direction

Modeling of Biorefinery Supply Chain Economic Performance with Discrete Event Simulation

As competition for fossil fuels accelerates, alternative sources of chemicals, fuels, and energy production become more appealing to researchers and the layman. Among the candidates to fill this growing niche is lignocellulosic biomass. Many researchers have examined supply chain design and optimization for biofuel and bioenergy production throughout the years. However, these models often fail to capture the variability and uncertainty inherent to the biomass supply chain. Multiple factors with high degrees of stochasticity can have major impacts on the performance of a biorefinery: weather, biomass quality, feedstock availability, and market demand for products are just a few. To begin to address this issue, a discrete event simulation model has been developed to examine the economic performance of a region specific, multifeedstock biorefinery supply chain. Probability distributions developed for product demand and feedstock supply begin to address the random nature of the supply chain. Model development is discussed in the context of a multidisciplinary framework for biorefinery supply chain design. A case study, sensitivity analysis, and scenario analysis, are utilized to examine the capabilities of the model

Overview and classification of coordination contracts within forward and reverse supply chains

Among coordination mechanisms, contracts are valuable tools used in both theory and practice to coordinate various supply chains. The focus of this paper is to present an overview of contracts and a classification of coordination contracts and contracting literature in the form of classification schemes. The two criteria used for contract classification, as resulted from contracting literature, are transfer payment contractual incentives and inventory risk sharing. The overview classification of the existing literature has as criteria the level of detail used in designing the coordination models with applicability on the forward and reverse supply chains.Coordination contracts; forward supply chain; reverse supply chain