Dynamic supply chain decisions based on networked sensor data:An application in the chilled food retail chain

With large volume of product flows and complex supply chain processes, more data than ever before is being generated and collected in supply chains through various tracking and sensory technologies. The purpose of this study is to show a potential scenario of using a prototype tracking tool that facilitate the utilisation of sensor data, which is often unstructured and enormous in nature, to support supply chain decisions. The research investigates the potential benefits of the chilled food chain management innovation through sensor data driven pricing decisions. Data generated and recorded through the sensor network are used to predict the remaining shelf-life of perishable foods. Numerical analysis is conducted to examine the benefit of proposed approach under various operational situations and product features. The research findings demonstrate a way of modelling pricing and potential of performance improvement in chilled food chains to provide a vision of smooth transfer and implementation of the sensor data driven supply chain management. The research finding would encourage firms in the food industry to explore innovation opportunities from big data and develop proper data driven strategies to improve their competitiveness

Efficient inventory control for imperfect quality items

In this paper, we present a general EOQ model for items that are subject to inspection for imperfect quality. Each lot that is delivered to the sorting facility undertakes a 100 per cent screening and the percentage of defective items per lot reduces according to a learning curve. The generality of the model is viewed as important both from an academic and practitioner perspective. The mathematical formulation considers arbitrary functions of time that allow the decision maker to assess the consequences of a diverse range of strategies by employing a single inventory model. A rigorous methodology is utilised to show that the solution is a unique and global optimal and a general step-by-step solution procedure is presented for continuous intra-cycle periodic review applications. The value of the temperature history and flow time through the supply chain is also used to determine an efficient policy. Furthermore, coordination mechanisms that may affect the supplier and the retailer are explored to improve inventory control at both echelons. The paper provides illustrative examples that demonstrate the application of the theoretical model in different settings and lead to the generation of interesting managerial insights

Indian Organised Apparel Retail Sector and DSS (Decision Support Systems)

Indian apparel retail sector poses interesting challenges to a manager as it is evolving and closely linked to fashions. Appealing mainly to youth, the sector has typical information requirements to manage its operations. DSS (Decision Support Systems) provide timely and accurate information & it can be viewed as an integrated entity providing management with the tools and information to assist their decision making. The study exploratory in nature, adopts a case study approach to understand practices of organized retailers in apparel sector regarding applications of various DSS tools. Conceptual overview of DSS is undertaken by reviewing the literature. The study describes practices and usage of DSS in operational decisions in apparel sector and managerial issues in design and implementation of DSS. A multi brand local chain and multi brand national chain of apparel was chosen for the study. Varied tools were found to be used by them. It was also found that for sales forecasting and visual merchandising decisions, prior experience rather than any DSS tool was used. The benefits realized were; “help as diagnostic tool”, “accuracy of records and in billing”, “smooth operations”. The implementation issues highlighted by the store managers were; more initial teething problems rather than resistance on the part of employees of the store, need for investment of time & money in training, due to rapid technological advancements, time to time updation in DSS tools is required . Majority of operational decisions like inventory management, CRM, campaign management were handled by ERP (Enterprise Resource Planning) or POS (Point of Sale). Prioritization as well as quantification of benefits was not attempted. The issues of coordination, integration with other systems in case of ERP usage, training were highlighted. Future outlook of DSS seems bright as apparel retailers are keen to invest in technology.

Holistic Trinity of Services Sciences: Management, Social, & Engineering Sciences

Services industries comprise about 75% of the economy of developed nations. To design and operate services systems for today and tomorrow, we need to educate a new type of engineer who focuses not on manufacturing but on services. Such an engineer must be able to integrate 3 sciences - management, social and engineering – into her analysis of services systems. Within the context of a new research center at MIT – CESF (Center for Engineering Systems Fundamentals) – we show how newly emerging services systems require such a 3-way holistic analysis. We deliberately select some non-standard services, as many business services such as supply chains have been studied extensively

Perishable Food Waste Reduction Through Technological Implementation at the Retail Level of the Food Supply Chain

Food waste has become a disaster of global proportion that the world can no longer turn a blind eye to. This paper aims to reduce food waste at the retail level of the food supply chain by recommending and quantifying the effects of current technology that can be implemented in traditional supermarkets. This research recommends that retailers implement electronic shelf labels in stores and employ dynamic pricing of perishable products, leading to reduction of food waste. No prior research had considered the primary goal of reducing food waste while preserving retailer profit through technological implementation. This paper quantifies the effects of implementing this technology and provides economic justification of the required investment through the calculation of profitability metrics and discussion of environmental regulations retailers will soon have to abide by. Our results indicate, even in the most conservative of scenarios, that the payback period for full implementation of electronic shelf labels will be less than or slightly over one year and the return on investment is high in all situations discussed. Sensitivity analyses of labor costs, revenue, and profitability ratios are illustrated to provide a full breadth of these results

A replenishment policy for a perishable inventory system based on estimated aging and retrieval behavior

So far the literature on inventory control for perishable products has mainly focused on (near-) optimal replenishment policies for a stylized environment, assuming no leadtime, no lot-sizing, stationary demand, a first in first out retrieval policy and/or product life time equal to two periods. This literature has given fundamental insight in the behavior and the complexity of inventory systems for perishable products. In practice, many grocery retailers have recently automated the inventory replenishment for non-perishable products. They recognize they may need a different replenishment logic for perishable products, which takes into account e.g. the age of the inventory in the system. Due to new information technologies like RFID, it now also becomes more economically feasible to register this type of information. This paper suggests a replenishment policy for perishable products which takes into account the age of inventories and which requires only very simple calculations. It will be shown that in an environment, which contains important features of the real-life retail environment, this new policy leads to substantial cost reductions compared with a base policy that does not take into account the age of inventories

Strategies to Overcome Network Congestion in Infrastructure Systems

Networked Infrastructure systems deliver services and/or products from point to point along the network. They include transportation networks (e.g., rails, highways, airports, sea ports), telecommunication networks (by frequency-bounded airwaves or cables), and utilities (e.g., electric power, water, gas, oil, sewage). Each is a fixed capacity system having marked time-of-day and day-of-week patterns of demand. Usually, the statistics of demand, including hourly patterns (i.e., means and variances) are well known and often correlated with outside factors such as weather (short term) and the general economy (longer term)