Decision support for build-to-order supply chain management through multiobjective optimization

This paper aims to identify the gaps in decision-making support based on multiobjective optimization for build-to-order supply chain management (BTOSCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting multiobjective optimization (MOO) techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted and future research directions to better exploit the decision support capabilities of MOO are proposed

Decision support for build-to-order supply chain management through multiobjective optimization

This is the post-print version of the final paper published in International Journal of Production Economics. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2010 Elsevier B.V.This paper aims to identify the gaps in decision-making support based on multiobjective optimization (MOO) for build-to-order supply chain management (BTO-SCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting MOO techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted. Future research directions to better exploit the decision support capabilities of MOO are proposed. These include: reformulation of the extant optimization models with a MOO perspective, development of decision supports for interfaces not involving manufacturers, development of scenarios around service-based objectives, development of efficient solution tools, considering the interests of each supply chain party as a separate objective to account for fair treatment of their requirements, and applying the existing methodologies on real-life data sets.Brunel Research Initiative and Enterprise Fund (BRIEF

Equilibrium Analysis of Channel Structure Strategies in Uncertain Environment

Abstract In this paper, we consider a pricing decision problem with two competing supply chains which distribute differentiated but competing products in the same market. Each chain can be vertically integrated or decentralized based on the choice of the manufacturer. The manufacturing costs, sales costs and consumer demands are characterized as uncertain variables, whose distributions are estimated by experienced experts. Meanwhile, uncertainty theory and game theory are employed to formulate the pricing decision problems. The equilibrium behaviors (how the supply chain members make their own pricing decisions on wholesale prices and retailer markups) at operational level under three possible scenarios are derived. Numerical experiments are also given to explore the impacts of the parameters’ uncertain degrees on supply chain members’ pricing decisions. The results demonstrate that the supply chain uncertain factors have great influences on equilibrium prices. In addition, we also evaluate the effects of competing intensity (substitutability) of the two products on the strategy behaviors, vertically integrated channel strategy versus decentralized strategy, of the manufacturers. It is found that the manufacturers are better off to distribute their products through a decentralized channel rather than an integrated one when the substitutability is greater than some value. Besides, the uncertain factors in the supply chain might reduce the value contrast to the one in deterministic case. Some other interesting managerial highlights are also provided in this paper

A taxonomy of supply chain innovations

In this paper, a taxonomy of supply chain and logistics innovations was developed and presented. The taxonomy was based on an extensive literature survey of both theoretical research and case studies. The primary goals are to provide guidelines for choosing the most appropriate innovations for a company, and help companies in positioning themselves in the supply of chain innovations landscape. To this end, the three dimensions of supply chain innovations, namely the goals, supply chain attributes, and innovation attributes were identified and classified. The taxonomy allows for the efficient representation of critical supply chain innovations information, and serves the mentioned goals, which are fundamental to companies in a multitude of industries

Supply Chain Joint Inventory Management and Cost Optimization Based on Ant Colony Algorithm and Fuzzy Model

With the advancement of the marketization process, inventory management has transformed from a single backup protection function to an essential function for enterprises, which helps to survive and develop. Inventory control in supply chain management is the important content of supply chain management. The new management mode makes inventory management present many new characteristics and problems compared with traditional inventory management. From the view of system theory and integration theory, it is imperative to re-examine the problem of inventory control, put forward new inventory management strategies adapted to integrated supply chain management, and improve the integration of the whole supply chain, which can enhance the agility and market response speed of enterprises. Based on the in-depth study of the joint inventory management model, this paper analyzed the current situation of the joint inventory management to optimize the inventory. In view of the achievements and shortcomings of the current research, a more systematic and improved optimization model of the supply chain inventory was proposed by using the basic ideas of ant colony algorithm and fuzzy model

Examining price and service competition among retailers in a supply chain under potential demand disruption

© 2017 Elsevier Ltd Supply chain disruptions management has attracted significant attention among researchers and practitioners. The paper aims to examine the effect of potential market demand disruptions on price and service level for competing retailers. To investigate the effect of potential demand disruptions, we consider both a centralized and a decentralized supply chain structure. To analyze the decentralized supply chain, the Manufacturing Stackelberg (MS) game theoretical approach was undertaken. The analytical results were tested using several numerical analyses. It was shown that price and service level investment decisions are significantly influenced by demand disruptions to retail markets. For example, decentralized decision makers tend to lower wholesale and retail prices under potential demand disruptions, whereas a proactive retailer needs to increase service level with an increased level of possible disruptions. This research may aid managers to analyze disruptions prone market and to make appropriate decision for price and service level. The manufacturer or the retailers will also be able to better determine when to close a market based on the proposed analysis by considering anticipated disruptions. The benefits and usefulness of the proposed approach are explained through a real-life case adopted from a toy supply chain in Bangladesh

Fuzzy Analytical Hierarchy Process for Supplier Selection: A Case Study in An Electronic Component Manufacturer

Supplier selection has become one of the essential effects on the entire electronic supply chain network to gain competitiveness. In the upstream supply chain, companies are able to achieve a high quality and value of products to reduce the potential risks from both internal and external stakeholders by selecting the right suppliers. The case study company produces a nano sim-card connector in which four different types of raw materials are processed into different parts. Currently, the case study company selects each raw material supplier based on its appraisal record. Nevertheless, the appraisal record is measured by the department of procurement. When candidate suppliers are categorized at the same level, the cost becomes the priority criteria to select the supplier, which increases the potential risks of, for example, the components defect rate, a penalty from clients, and a reduction in orders. This paper proposed a Fuzzy analytic hierarchy process (FAHP) model for the selection of raw material suppliers by collecting data from two of the company’s departments (procurement and engineering) and the clients to address qualitative and quantitative elements, uncertainty, and linguistic vagueness based on the company’s scenario in two parts. First, the main and sub-criteria can be weighted using a decision-maker (DM) to identify the level of importance. Second, the FAHP model also dealt with personal preferences and judgement so that the right supplier(s) for each raw material could be selected by collecting and computing the data from the respondents. Then, the sensitivity analysis is applied to observe how the decisions change when the model parameters in the top five sub-criteria change. The proposed model can offer better information and solutions for the DM in the case study company to differentiate the crucial main and sub-criteria and select the suitable raw material suppliers effectively