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

Designing Enterprise Resources Planning Application for Integrating Main Activities in a Simulator Model of SCM Network Distribution

Collaborative supply chain is a specific topic in supply chain management and studied by industrial engineering students in supply chain management course. Unfortunately, conventional learning media cannot explain the phenomenon of collaborative supply chain to the students. This study aimed to design a dynamic learning media so that inter-company collaboration and information sharing on the activities of Supply Chain entities can be explained effectively to the students. The problem was solved using 3 (three) steps. First, the distribution network was described using mock up. It consists of miniature trucks, miniature network and miniature of the manufacturer-distributor-retailer embedded with tag and reader of RFID. Second, the Enterprise Resources Planning application was developed for supporting business activities. Third, we developed the integrator consists of monitor’s user interface and practice modules. The result of the research - an SCM-Simulator – will be able to improve learning skills of industrial engineering graduates, especially abilities to identify, formulate, and solve the activities of tactical plan & operational routines of Supply Chain entities. However, distribution module designed is for limited scale laboratory study of simple objects. Keywords: Distribution Network, Enterprise Resource Planning, Industrial Engineering Education, SCM Simulator,and Learning Media

Cooperative Longevity and Sustainable Development in a Family Farming System

This paper focuses on small holding, family farming in Southeast Spain where agricultural economic activity is predominantly organized around cooperative business models. A variety of diverse studies on the Almería agricultural and credit cooperative sector and the exploration of social-economic and eco-social indicators, in addition to economic-market indicators are presented. Each correspond to a cooperative “logic” that spans theoretical perspectives from the dominant economic-market model, new institutionalism, and an eco-social approach, echoing theories on collective coordination governance, and the avoidance of the “tragedy of the commons”. The latter is of particular importance given environmental challenges and scarce resources for agricultural activity. The cooperatives in Almería have increasingly relied on collective collaboration and coordination in order to meet social-economic and social-ecological challenges, transforming their role from that founded on a market dominant logic to that of cooperation as a coordination mechanism based on the mutual benefit of the community and environment. In turn, their ability to meet a wide range of needs and challenges of members and the community leads to their longevity. Cooperatives are able to act as both a market and non-market coordination mechanism, balancing the economic, social, and environmental dimensions, such that neither market nor non-market logics are dominant or exclusive

Response of Fresh Food Suppliers to Sustainable Supply Chain Management of Large European Retailers

This article analyses new supply chain management (SCM) strategies of the largest retail distribution chains in Europe within the context of differing sustainability concepts and approaches. An analysis is carried out of the strategic plans of such retailers, as well as recent developments in the sector. We begin by identifying the priority actions of retailers and then evaluating, by means of a survey, how small horticultural marketing firms (mainly cooperatives) in southeast Spain respond to the needs of these retailers. Subsequently, an analysis is carried out on these small marketing firm exporters to identify the relative weight which they assign to the variables assessed, while also considering the existing relationships between said weighted variables and business profits. Our results show that retailers tend to establish more simplified supply chains (that is, shorter and more vertical), essentially demonstrating their interpretation of a sustainable supply chain. In contrast, horticultural marketing firms have concentrated more on tactical and operational issues, thereby neglecting environmental, social and logistics management. Thus, their success rate in meeting the sustainability demands of their customers can be considered medium-low, requiring a more proactive attitude. Improved and collaborative relations, and the integration of sustainability concepts between suppliers (marketing firms) and their clients could contribute to successfully meeting sustainability demands. From the point of view of the consumer, close supplier–retail relationships have solved food safety issues, but the implementation of sustainability in other supply chain activities and processes is a pending issue. We propose strategic approximation and collaboration to bridge the gap between the varying sustainability demands in the supplier–retail relationship within perishable supply chains. Although this article specifically addresses fresh vegetable supply chains, the results may be extrapolated to other agri-food chains with a similar structure

SUPPLY CHAIN MANAGEMENT IN THE FRESH PRODUCE INDUSTRY: A MILE TO GO?

We investigate the factors that influence vertical coordination in the fresh produce industry. Elaborating on the concept of governance structure, price and non-price coordination systems will be distinguished. Under previous research, there is a specific consideration as to how market conditions and institutional considerations influence the coordination of supply chains. In my presentation for the Food Distribution Research Society in Monterey, California, I analyzed how retail companies in the United States, France, and the Netherlands coordinate their supply chains of fruits and vegetables. Differences in product category and institutional environments do not contribute directly to the explanation of differences found in supply chain coordination systems. Industry-specific factors and firm-resource-based factors may supply a better understanding of these differences.Agribusiness,

Vertical Coordination and Grower Organization in the Supermarket Fruit and Vegetables Supply Chain in Croatia

Abstract: The means by which fruit and vegetables growers are linked with the upstream partners in the supermarket supply chain are investigated in 15 semi-structured interviews with inter alia the managers of Croatia’s five major supermarket chains. Contrasting to existing literature we find that supermarkets vertically coordinate with larger growers directly through loose 1-year marketing contracts specifying the terms of payment, without giving financial or technical assistance to the farmers. An exception is the largest Croatian supermarket which has a dominant position in the market and sometimes provides comprehensive farm assistance or even fully vertically integrates farm production. Wholesalers more often provide farm assistance to FFV growers. Though, in the future it can be expected that the wholesalers drop out of the FFV supermarket supply chain. The major bottleneck for farmers to directly supply to the supermarket chains is the access to a distribution facility for grading, sorting and packaging of FFV. Also, farmers need to organize to meet the supermarkets’ minimum quantity requirements. Since bad experience with cooperatives in the communist era is widespread, farmers distaste cooperatives and the degree of organization of FFV growers in Croatia is very low. We present an innovative model for a producer organization which could overcome the main challenges growers face in the FFV supermarket supply chain and secure that even small farmers participate. Also, we outline policy measures for the Croatian government and the European Commission to foster this development.supermarket supply chain, vertical coordination, fruit and vegetables, farm assistance, producer organization, Agricultural and Food Policy,