A Parallelizable Heuristic for Solving the Generic Materials and Operations Planning in a Supply Chain Network: A Case Study from the Automotive Industry

[EN] A trend in up-to date developments in multi-site operations planning models is to consider in details the different ways to produce, buy or transport products and the distributed decision-making process for operations planning. One of the most generic approaches to support global optimization in those supply chain networks by considering all the different operations alternatives and product structures is the Generic Materials & Operations Planning Problem. This problem can be modelled by a Mixed Integer Linear Programming model capable of considering production, transportation, procurement tasks and their alternatives and other relevant issues such as packaging. The aim of this paper is to introduce the implementation of a parallelizable heuristic method for materials and operations planning and its application to a case of a Supply Chain Network of the automotive industry. The approach uses variants of the GMOP model to overcome traditional MRP systems' limitations.Maheut ., JP.; García Sabater, JP. (2013). A Parallelizable Heuristic for Solving the Generic Materials and Operations Planning in a Supply Chain Network: A Case Study from the Automotive Industry. IFIP Advances in Information and Communication Technology. 397:151-157. doi:10.1007/978-3-642-40352-1_20S151157397Maheut, J., Garcia-Sabater, J.P.: La Matriz de Operaciones y Materiales y la Matriz de Operaciones y Recursos, un nuevo enfoque para resolver el problema GMOP basado en el concepto del Stroke. Dirección y Organización 45, 46–57 (2011)Garcia-Sabater, J.P., Maheut, J., Marin-Garcia, J.A.: A new formulation technique to model Materials and Operations Planning: the Generic Materials and Operations Planning (GMOP) Problem. European J. Industrial Engineering 7, 119–147 (2013)Mula, J., Maheut, J., Garcia-Sabater, J.P.: Supply Chain Network Design. Journal of Marketing and Operations Management Research 1, 378–383 (2012)Dudek, G., Stadtler, H.: Negotiation-based collaborative planning between supply chains partners. European Journal of Operational Research 163, 668–687 (2005)Torabi, S.A., Hassini, E.: Multi-site production planning integrating procurement and distribution plans in multi-echelon supply chains: an interactive fuzzy goal programming approach. International Journal of Production Research 47, 5475–5499 (2009)Kanyalkar, A.P., Adil, G.K.: Aggregate and detailed production planning integrating procurement and distribution plans in a multi-site environment. International Journal of Production Research 45, 5329–5353 (2007)de Kok, T.G., Fransoo, J.C.: Planning Supply Chain Operations: Definition and Comparison of Planning Concepts. In: Graves, S.C. (ed.) Handbooks in Operations Research and Management Science Supply Chain Management: Design, Coordination and Operation, vol. 11, pp. 597–675. Elsevier (2003)Buschkühl, L., Sahling, F., Helber, S., Tempelmeier, H.: Dynamic capacitated lot-sizing problems: a classification and review of solution approaches. OR Spectrum (2009)Maheut, J., Garcia-Sabater, J.P., Mula, J.: A supply Chain Operations Lot-Sizing and Scheduling Model with Alternative Operations. In: Sethi, S.P., Bogataj, M., Ros-McDonnell, L. (eds.) Proceedings of the Industrial Engineering: Innovative Networks, 5th International Conference on Industrial Engineering and Industrial Management "CIO 2011", Cartagena, Spain, pp. 309–316. Springer, London (2012)Garcia-Sabater, J.P., Maheut, J., Garcia-Sabater, J.J.: A two-stage sequential planning scheme for integrated operations planning and scheduling system using MILP: the case of an engine assembler. Flexible Services and Manufacturing Journal 24, 171–209 (2012)Pinto, J.M., Chen, P., Papageorgiou, L.G.: A discrete/continuous time MILP model for medium term planning of single stage multiproduct plants, pp. 1–6. Elsevier, B.V. (2007)Scheer, A.W.: Business Process Engineering - Reference Models for Industrial Enterprises. Springer (1994)Lin, J.T., Chen, T.L., Lin, Y.T.: Critical material planning for TFT-LCD production industry. International Journal of Production Economics 122, 639–655 (2009)Escudero, L.F.: CMIT, capacitated multi-level implosion tool. European Journal of Operational Research 76, 511–528 (1994)Maheut, J., Garcia-Sabater, J.P., Valero-Herrero, M.: MILP model for solving the supply chain operations scheduling problem with alternative operations considering delay penalization: a case study of a mass customization company. In: Proceedings of the 41st International Conference on Computers & Industrial Engineering, pp. 289–294 (2011

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

INFORMATION DISSEMINATION IN SUPPLY CHAIN: FACTORS AND MODELS INFLUENCING WAREHOUSING EFFICIENCY.

Purpose: Based on relationship-specific perspective and the systems of information dissemination in supply chain, this paper explores how these models facilitate the warehousing efficiency in a company that has more than two suppliers in different countries. The study examines how information flow and functioning supply chain could develop a relationship with suppliers and how those specific models and factors contribute to the firm`s inventory management. Current study is conducted from company’s point of view on supply chain management in comparison to the supplier specific requests for logistics operations. Design/methodology/approach: In order to link theoretical part with empirical research, current study uses exploratory design and due to direct number of survey participants, research method is considered as qualitative survey method with semistructured interviews. Deductive and inductive approaches were applied in the thesis. Findings: The result shows that factors of trust and collaboration along with implementation of information dissemination models between company and suppliers have significant importance in supply chain and might reduce the need for inventory. Improving information flow between parties in supply chain contributes to warehousing efficiency through more frequent deliveries and appropriate logistics planning. Research limitations/implications: Study scope is limited to a single case company as well as from companies’ suppliers were chosen only five operating in different countries. Furthermore, the research focuses on one country of the case company: Finland. However, survey was conducted with suppliers from different countries and different background; the findings cannot be generalized to all the companies working in a wide supply chain. Implications of the study are presenting that information flow and such factors as trust and collaboration should be recognized as a crucial part of developing supply chain and increasing the warehousing efficiency.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format

Strategic Planning and Design of Supply Chains: a Literature Review

In this paper, a literature review of the mathematical models for supply chain design is proposed. The research is based on the study and analysis of publications of the last twelve years from the most widespread international journal about operations management and logistics. The aim of the work lies in identifying tendencies in the literature and related open issues about the strategic decisions, economic parameters, constraints and model features considered in the strategic planning and design of supply chains. After a description of the review methodology, comparison parameters and paper exhaustiveness, some guidelines are given in order to support future works in this field

Impact of reverse logistics on supply chain performance

Purpose The purpose of this paper is to analyse the impact of reverse logistics on order and inventory variance amplification in a single-echelon supply chain and to propose a new order policy for dampening such amplification. Design/Methodology/Approach A general review of the literature on sustainable operations and on the impact of reverse logistics on SC performance provides the foundation for the study. We use difference equation math approach for modelling and analysing a closed supply chain. A proper design of experiment and data collected from the European Union statistics validate the obtained numerical results. Findings The variability of reverse flow in a closed loop supply chain increases the serviceable inventory variance. However, a proper design of the reverse flow considerably improves the global performance. To this purpose, we propose a new order policy, namely R-APIOBPCS, which explicitly considers the reverse flow of products. Research limitations/Implications The paper presents a math model describing a closed loop supply chain. No empirical analysis is provided. Future researches should evaluate the impact of the proposed R-APIOBPCS on more realistic closed loop supply chain models. Practical implications Our findings may motivate logistics and supply chain managers to implement CLSC when supported by innovative, suitable tools for the proper management of the information and material flow in the chain. Managers should be well acquainted that, by doing so, they not only satisfy National and International legislations but also achieve improvements in logistics performance. Originality/Value We propose a novel replenishment rule that accurately coordinates the upstream and downstream flows in a SC. The proposed order policy can be reasonably considered one of the advocated managerial tools for the proper management of reverse logistics: it allows reducing inventory and limiting the variability of the orders placed to suppliers in supply chain with reverse logistics

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

Operations research in disaster preparedness and response: The public health perspective

Operations research is the scientific study of operations for the purpose of better decision making and management. Disasters are defined as events whose consequences exceed the capability of civil protection and public health systems to provide necessary responses in a timely manner. Public health science is applied to the design of operations of public health services and therefore operations research principles and techniques can be applied in public health. Disaster response quantitative methods such as operations research addressing public health are important tools for planning effective responses to disasters. Models address a variety of decision makers (e.g. first responders, public health officials), geographic settings, strategies modelled (e.g. dispensing, supply chain network design, prevention or mitigation of disaster effects, treatment) and outcomes evaluated (costs, morbidity, mortality, logistical outcomes) and use a range of modelling methodologies. Regarding natural disasters the modelling approaches have been rather limited. Response logistics related to public health impact of disasters have been modelled more intensively since decisions about procurement, transport, stockpiling, and maintenance of needed supplies but also mass vaccination, prophylaxis, and treatment are essential in the emergency management. Major issues at all levels of disaster response decision making, including long-range strategic planning, tactical response planning, and real-time operational support are still unresolved and operations research can provide useful techniques for decision management.-JRC.G.2-Global security and crisis managemen

A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain

[EN] The challenges of global economies foster supply chains to have to increase their processes of collaboration and dependence between their nodes, generating an increase in the level of vulnerability to possible impacts and interruptions in their operations that may affect their sustainability. This has developed an emerging area of interest in supply chain management, considering resilience management as a strategic capability of companies, and causing an increase in this area of research. Additionally, supply chains should deal with the three dimensions of sustainability (economic, environmental, and social dimensions) by incorporating the three types of objectives in their strategy. Thus, there is a need to integrate both resilience and sustainability in supply chain management to increase competitiveness. In this paper, a systematic literature review is undertaken to analyze resilience management and its connection to increase supply chain sustainability. In the review, 232 articles published from 2000 to February 2020 in peer-reviewed journals in the Scopus and ScienceDirect databases are analyzed, classified, and synthesized. With the results, this paper develops a conceptual framework that integrates the fundamental elements for analyzing, measuring, and managing resilience to increase sustainability in the supply chain. Finally, conclusions, limitations, and future research lines are exposed.This study was supported by the Valencian Government in Spain (Project AEST/2019/019).Zavala-Alcívar, A.; Verdecho Sáez, MJ.; Alfaro Saiz, JJ. (2020). A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain. Sustainability. 12(16):1-38. https://doi.org/10.3390/su12166300S1381216Roberta Pereira, C., Christopher, M., & Lago Da Silva, A. (2014). Achieving supply chain resilience: the role of procurement. Supply Chain Management: An International Journal, 19(5/6), 626-642. doi:10.1108/scm-09-2013-0346Pettit, T. J., Fiksel, J., & Croxton, K. L. (2010). ENSURING SUPPLY CHAIN RESILIENCE: DEVELOPMENT OF A CONCEPTUAL FRAMEWORK. Journal of Business Logistics, 31(1), 1-21. doi:10.1002/j.2158-1592.2010.tb00125.xPettit, T. J., Croxton, K. L., & Fiksel, J. (2013). Ensuring Supply Chain Resilience: Development and Implementation of an Assessment Tool. Journal of Business Logistics, 34(1), 46-76. doi:10.1111/jbl.12009Ponis, S. T., & Koronis, E. (2012). Supply Chain Resilience: Definition Of Concept And Its Formative Elements. Journal of Applied Business Research (JABR), 28(5), 921. doi:10.19030/jabr.v28i5.7234Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699-1710. doi:10.1016/j.jclepro.2008.04.020Qorri, A., Mujkić, Z., & Kraslawski, A. (2018). A conceptual framework for measuring sustainability performance of supply chains. Journal of Cleaner Production, 189, 570-584. doi:10.1016/j.jclepro.2018.04.073Verdecho, M.-J., Alarcón-Valero, F., Pérez-Perales, D., Alfaro-Saiz, J.-J., & Rodríguez-Rodríguez, R. (2020). A methodology to select suppliers to increase sustainability within supply chains. Central European Journal of Operations Research, 29(4), 1231-1251. doi:10.1007/s10100-019-00668-3Edgeman, R., & Wu, Z. (2016). Supply chain criticality in sustainable and resilient enterprises. Journal of Modelling in Management, 11(4), 869-888. doi:10.1108/jm2-10-2014-0078Marchese, D., Reynolds, E., Bates, M. E., Morgan, H., Clark, S. S., & Linkov, I. (2018). Resilience and sustainability: Similarities and differences in environmental management applications. Science of The Total Environment, 613-614, 1275-1283. doi:10.1016/j.scitotenv.2017.09.086Ahern, J. (2012). Urban landscape sustainability and resilience: the promise and challenges of integrating ecology with urban planning and design. 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Managing Disruption Risks in Supply Chains. Production and Operations Management, 14(1), 53-68. doi:10.1111/j.1937-5956.2005.tb00009.xChristopher, M., & Peck, H. (2004). Building the Resilient Supply Chain. The International Journal of Logistics Management, 15(2), 1-14. doi:10.1108/09574090410700275Wu, T., Huang, S., Blackhurst, J., Zhang, X., & Wang, S. (2013). Supply Chain Risk Management: An Agent-Based Simulation to Study the Impact of Retail Stockouts. IEEE Transactions on Engineering Management, 60(4), 676-686. doi:10.1109/tem.2012.2190986Fang, H., & Xiao, R. (2013). Resilient closed-loop supply chain network design based on patent protection. International Journal of Computer Applications in Technology, 48(1), 49. doi:10.1504/ijcat.2013.055566Gong, J., Mitchell, J. E., Krishnamurthy, A., & Wallace, W. A. (2014). An interdependent layered network model for a resilient supply chain. Omega, 46, 104-116. doi:10.1016/j.omega.2013.08.002Mari, S., Lee, Y., & Memon, M. (2014). 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Measuring the Resilience of Supply Chain Systems Using a Survival Model. IEEE Systems Journal, 9(2), 377-381. doi:10.1109/jsyst.2014.2339552LOH, H. S., & THAI, V. V. (2015). Cost Consequences of a Port-Related Supply Chain Disruption. The Asian Journal of Shipping and Logistics, 31(3), 319-340. doi:10.1016/j.ajsl.2015.09.001Torabi, S. A., Baghersad, M., & Mansouri, S. A. (2015). Resilient supplier selection and order allocation under operational and disruption risks. Transportation Research Part E: Logistics and Transportation Review, 79, 22-48. doi:10.1016/j.tre.2015.03.005Cardoso, S. R., Paula Barbosa-Póvoa, A., Relvas, S., & Novais, A. Q. (2015). Resilience metrics in the assessment of complex supply-chains performance operating under demand uncertainty. Omega, 56, 53-73. doi:10.1016/j.omega.2015.03.008Salehi Sadghiani, N., Torabi, S. A., & Sahebjamnia, N. (2015). Retail supply chain network design under operational and disruption risks. 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Effective supply chain management in the furniture retail industry

The thesis "Supply Chain Management in Furniture Retail Industry" tries to determine the current status of an integrated supply chain management in the furniture industry. The importance of the supply chain in the modern economy is discussed as well as the difficult economical conditions for furniture dealers, with consumers spending more on cellphones, the national lottery and transport. The importance of the supply chain as a vehicle to optimize shareholder funds is stressed. The literature study sets out to prove that as a result of the new paradigm that exists within the organisational system, that the supply chain system needs new ideas, thought process and structures to ensure that the full potential is realised. In order to maximise returns from the supply chain business process, re-engineering and design will have to take place. Organisations must be willing and able to radically re- think and re-design the existing process. A paradigm shift is absolutely essential to obtain the maximum returns for the organisation. Certain pre-designed supply chain models are discussed and advantages and disadvantages are analysed. The models are the, the Growth Model, the Supply Chain Management Systems Framework, the Semantic Model for Internet Supply Chain Collaboration and the Supply Chain Operations Model. The models differ in their approaches and is an effort to expose the reader to current best practises in integrated supply chain management. Thirdly, key factors for supply chain success are discussed. Research has shown that if organisations fail to meet certain basic requirements, any attempts at influencing or improving the process are doomed. Internal excellence is a basic requirement followed by external integration and excellence. Two other important issues are supplier relationships, and the critical importance of information technology in assisting organisations to obtain supremacy. The literature study ends with the discussion of a financial model for measuring the success of supply chain interventions. The final word in any change process is financial. If Economic Value is not added, then the process can be seen as a failure. Chapter Three discusses the methodology that was followed in conducting the research. Chapter four analysis the findings and make certain recommendations for the furniture industry in South Africa that will assist in improving supply chain management.Thesis (MBA)--University of Pretoria, 2004.Graduate School of Managementunrestricte

Reinterpreting Fisher's coordinated strategies: a longitudinal case study

Purpose: Much has been written about the need to align the supply chain with the product/market but it has proved, elusive especially in response to a supply change transitions. This paper reviews the established theoretical models before considering how the realignment process can be better supported in the light of a longitudinal study. Design/methodology/approach: This paper uses a single apparel case where data was gathered over a five year period involving multiple site visits, management interviews and archival data across three echelons of the supply chain. Repeated visits enabled the collection of contemporary evidence and the development and testing of the causal relationships. This case was part of a multi case research project that explored the causal relationship between variation, uncertainty, performance trade offs and buffering mechanisms (time, capacity and inventory). Findings: The case analysis demonstrates how established theory and causal reasoning can be used to explain the trade off oscillations that characterized this case. As with earlier studies, local cost considerations predominated, interspersed with strategic countermeasures. Fisher's (1997) concept of coordinated strategies is shown to provide an effective means of clarifying the trade off implications of the transition in support of proactive realignment. This concept is discussed in relation to other cases and literature before proposing how this could be developed and used as a basis for further research. Practical implications: Supply chain redesign is of growing importance and with it the need to more effectively manage such transitions. This paper clarifies the need for supply chain orientation and offers means of clarifying the implications of such transitions to management. Originality/value: This paper provides case evidence of the underlying operations management issues and the associated analysis