Supply chain management: An opportunity for metaheuristics

In today’s highly competitive and global marketplace the pressure on organizations to find new ways to create and deliver value to customers grows ever stronger. In the last two decades, logistics and supply chain has moved to the center stage. There has been a growing recognition that it is through an effective management of the logistics function and the supply chain that the goal of cost reduction and service enhancement can be achieved. The key to success in Supply Chain Management (SCM) require heavy emphasis on integration of activities, cooperation, coordination and information sharing throughout the entire supply chain, from suppliers to customers. To be able to respond to the challenge of integration there is the need of sophisticated decision support systems based on powerful mathematical models and solution techniques, together with the advances in information and communication technologies. The industry and the academia have become increasingly interested in SCM to be able to respond to the problems and issues posed by the changes in the logistics and supply chain. We present a brief discussion on the important issues in SCM. We then argue that metaheuristics can play an important role in solving complex supply chain related problems derived by the importance of designing and managing the entire supply chain as a single entity. We will focus specially on the Iterated Local Search, Tabu Search and Scatter Search as the ones, but not limited to, with great potential to be used on solving the SCM related problems. We will present briefly some successful applications.Supply chain management, metaheuristics, iterated local search, tabu search and scatter search

E-Fulfillment and Multi-Channel Distribution – A Review

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research. One of the recurrent patterns in today’s e-commerce operations is the combination of ‘bricks-and-clicks’, the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.Distribution;E-fulfillment;Literature Review;Online Retailing

Integrated Production-Distribution Planning with Considering Preventive Maintenance

The preventive maintenance activity is important thing in production system especially for a continuous production process, for example in fertilizer industry. Therefore, it has to be considered in production-distribution planning. This paper considers the interval of production facility’s preventive maintenance in production-distribution planning of multi echelon supply chain system which consists of a manufacturer with a continuous production process, a distribution center, a number of distributors and a number of retailers. The problem address in this paper is how to determine coordinated productiondistribution policies that considers the interval of production facility’s preventive maintenance, and customer demand only occurred at retailers and it fluctuates by time. Based on model of Santoso, et al. (2007), using the periodic review inventory model and a coordinated production and replenishment policies that are decided by central planning office and it must be obeyed by all entities of multi-echelon supply chain, the integrated production-distribution planning model is developed to determine the production and replenishment policies of all echelon in the supply chain system in order to minimize total system cost during planning horizon. Total system cost consists of set-up/ordering cost, maintenance cost, holding cost, outsourcing cost and transportation cost at all of entities. With considering preventive maintenance and there is one production run over the planning horizon, the replenishment cycle at distribution center, distributors and retailers that are found out are greater than the basic model. Also, the multiplication of replenishment cycle at distribution center in production cycle that is found out is greater than the basic model but the multiplication of replenishment cycle at retailers in its distributor are smaller than the basic model

Robust Multi-Objective Sustainable Reverse Supply Chain Planning: An Application in the Steel Industry

In the design of the supply chain, the use of the returned products and their recycling in the production and consumption network is called reverse logistics. The proposed model aims to optimize the flow of materials in the supply chain network (SCN), and determine the amount and location of facilities and the planning of transportation in conditions of demand uncertainty. Thus, maximizing the total profit of operation, minimizing adverse environmental effects, and maximizing customer and supplier service levels have been considered as the main objectives. Accordingly, finding symmetry (balance) among the profit of operation, the environmental effects and customer and supplier service levels is considered in this research. To deal with the uncertainty of the model, scenario-based robust planning is employed alongside a meta-heuristic algorithm (NSGA-II) to solve the model with actual data from a case study of the steel industry in Iran. The results obtained from the model, solving and validating, compared with actual data indicated that the model could optimize the objectives seamlessly and determine the amount and location of the necessary facilities for the steel industry more appropriately.This article belongs to the Special Issue Uncertain Multi-Criteria Optimization Problem

A Reverse Logistics Network Model for Handling Returned Products

58827Due to the emergence of e-commerce and the proliferation of liberal return policies, product returns have become daily routines for many companies. Considering the significant impact of product returns on the company’s bottom line, a growing number of companies have attempted to streamline the reverse logistics process. Products are usually returned to initial collection points (ICPs) in small quantities and thus increase the unit shipping cost due to lack of freight discount opportunities. One way to address this issue is to aggregate the returned products into a larger shipment. However, such aggregation increases the holding time at the ICP, which in turn increases the inventory carrying costs. Considering this logistics dilemma, the main objectives of this research are to minimize the total cost by determining the optimal location and collection period of holding time of ICPs; determining the optimal location of a centralized return centre; transforming the nonlinear objective function of the proposed model formulation by Min et al. (2006a) into a linear form; and conducting a sensitivity analysis to the model solutions according to varying parameters such as shipping volume. Existing models and solution procedures are too complicated to solve real-world problems. Through a series of computational experiments, we discovered that the linearization model obtained the optimal solution at a fraction of the time used by the traditional nonlinear model and solution procedure, as well as the ability to handle up to 150 customers as compared to 30 in the conventional nonlinear model. As such, the proposed linear model is more suitable for actual industry applications than the existing models.S

Design of Closed Loop Supply Chains

Increased concern for the environment has lead to new techniques to design products and supply chains that are both economically and ecologically feasible. This paper deals with the product - and corresponding supply chain design for a refrigerator. Literature study shows that there are many models to support product design and logistics separately, but not in an integrated way. In our research we develop quantitative modelling to support an optimal design structure of a product, i.e. modularity, repairability, recyclability, as well as the optimal locations and goods flows allocation in the logistics system. Environmental impacts are measured by energy and waste. Economic costs are modelled as linear functions of volumes with a fixed set-up component for facilities. We apply this model using real life R&D data of a Japanese consumer electronics company. The model is run for different scenarios using different parameter settings such as centralised versus decentralised logistics, alternative product designs, varying return quality and quantity, and potential environmental legislation based on producer responsibility.supply chain management;reverse logistics;facility location;network design;product design

E-Fulfillment and Multi-Channel Distribution – A Review

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research. One of the recurrent patterns in today’s e-commerce operations is the combination of ‘bricks-and-clicks’, the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering

Extending the supply chain to address sustainability

© 2019 Elsevier Ltd In today's growing economy, overconsumption and overproduction have accelerated environmental deterioration worldwide. Consumers, through unsustainable consumption patterns, and producers, through production based on traditional resource depleting practices, have contributed significantly to the socio-environmental problems. Consumers and producers are linked by supply chains, and as sustainability became seen as a way to reverse socio-environmental degradation, it has also started to be introduced in research on supply chains. We look at the evolution of research on sustainable supply chains and show that it is still largely focused on the processes and networks that take place between the producer and the consumer, hardly taking into account consumer behavior and its influence on the performance of the producer and the supply chain itself. We conclude that we cannot be talking about sustainability, without extending the supply chains to account for consumers' behavior and their influence on the overall system performance. A conceptual framework is proposed to explain how supply chains can become sustainable and improve their economic and socio-environmental performance by motivating consumer behavior toward green consumption patterns, which, in turn, motivate producers and suppliers to change their operations

Decision Support System for Managing Reverse Supply Chain

Reverse logistics are becoming more and more important in the overall Industry area because of the environment and business factors. Planning and implementing a suitable reverse logistics network could bring more profit, customer satisfaction, and an excellent social picture for companies. But, most of the logistics networks are not equipped to handle the return products in reverse channels. Reverse logistics processes and plans rely heavily on reversing the supply chain so that companies can correctly identify and categorize returned products for disposition, an area that offers many opportunities for additional revenue. The science of reverse logistics includes return policy administration, product recall protocols, repairs processing, product repackaging, parts management, recycling, product disposition management, maximizing liquidation values and much more. The focus of this project is to develop a reverse logistics management system/ tools (RLMS). The proposed tools are demonstrated in the following order. First, we identify the risks involved in the reverse supply chain. Survey tool is used to collect data and information required for analysis. The methodologies that are used to identify key risks are the six sigma tools, namely Define, Measure, Analyse, Improve and Control (DMAIC), SWOT analysis, cause and effect, and Risk Mapping. An improved decision-making method using fuzzy set theory for converting linguistic data into numeric risk ratings has been attempted. In this study, the concept of ‘Left and Right dominance approach’(Chen and Liu, 2001) and Method of ‘In center of centroids’ (Thoran et al., 2012a,b) for generalized trapezoidal fuzzy numbers has been used to quantify the ‘degree of risk’ in terms of crisp ratings. After the analysis, the key risks are identified are categorized, and an action requirement plan suggested for providing guidelines for the managers to manage the risk successfully in the context of reverse logistics. Next, from risk assessment findings, information technology risk presents the highest risk impact on the performance of the reverse logistics, especially lack of use of a decision support system (DSS). We propose a novel multi-attribute decision (MADM) support tool that can categorizes return products and make the best alternative selection of recovery and disposal option using carefully considered criteria using MADM decision making methodologies such as fuzzy MOORA and VIKOR. The project can be applied to all types of industries. Once the returned products are collected and categorized at the retailers/ Points of return (PoR), an optimized network is required to determine the number of reprocessing centres to be opened and the optimized optimum material flow between retailers, reprocessing, recycling and disposal centers at minimum costs. The research develops a mixed integer linear programming model for two scenarios, namely considering direct shipping from retailer/ PoR to the respective reprocessing centers and considering the use of centralized return centers (CRC). The models are solved using LINGO 15 software and excel solver tools respectively. The advantage of the implementation of our solution is that it will help improve performance and reduce time. This benefits the company by having a reduction in their cost due to uncertainties and also contributes to better customer satisfaction. Implementation of these tools at ABZ computer distributing company demonstrates how the reverse logistics management tools can used in order to be beneficial to the organization. The tool is designed to be easily implemented at minimal cost and serves as a valuable tool for personnel faced with significant and costly decisions regarding risk assessment, decision making and network optimization in the reverse supply chain practices