Modeling Overstock

Two main problems have been emerging in supply chain management: the increasing pressure to reduce working capital and the growing variety of products. Most of the popular indicators have been developed based on a controlled environment. A new indicator is now proposed, based on the uncertainty of the demand, the flexibility of the supply chains, the evolution of the products lifecycle and the fulfillment of a required service level. The model to support the indicator will be developed within the real options approach.overstock, stock management, real options

Differentiation vs. standardisation in supply chain segmentation: a quantitative study

The key value proposition of supply chain segmentation is to differentiate supply chains through a reasonable number of segments in order to gain a level of standardisation and avoid managerial complexity incurred in fully customised supplychains. The decision on how products are grouped into segments is at the core of a successful implementation. A fundamental trade-off in this decision-making process is between higher differentiation by having small group sizes and higher standardisation from a smaller number of groups. In this manuscript, we implement segmentation on supply chain configurations and investigate the trade-off by analysing several network scenarios. We use optimisation models for each scenarioto align decisions of segment formation and supply chain configurations. We show that divergences in demand characteristics, geographic difference, and cost synergy such as pooling effect have impacts on the balance of standardisation and differentiation

LOGISTICAL COSTS AND STRATEGIES FOR WHEAT SEGREGATION

Special segregations that provide unique qualities for end use products are being specified by buyers. As users of wheat become more specific about quality, the number of quality segregations that the logistical pipeline must accommodate increases. The additional cost of increased grain segregations will influence the optimal level of wheat variety segregations marketed in a supply chain. The primary objective of this research is to develop a model that captures the logistical costs of increased grain segregations in the marketing system. A simulation model was developed to add logistical uncertainty in demand, receipts, rail deliveries, and transit time. Sensitivities were conducted on certain variables to determine their effects on logistical costs. Logistical costs increase as more segregations are added. In addition, increasing uncertainty into the system raises logistical costs. Pipeline configuration also affects costs as the number of categories/storage bins present at origin may differ from the wheat categories demanded or the number of storage bins present at the export elevator.wheat, segregations, Crop Production/Industries,

Safety Stock Placement Pada Perusahaan Farmasi Menggunakan Pendekatan Guaranteed-Service Dalam Jaringan Fasilitas Produksi

This study aims to understand the supply chain strategy of pharmaceutical companies, logistics drivers (facilities, inventory, and transportation), and cross-functional drivers (information, sources, and prices), as well as the problem of placing safety stock for assembly, using an integer linear approximation program using CPLEX to get the results and perform a sensitivity analysis. In this way, the effect of various parameters on total safety stock and service time can be estimated. Pharmaceutical companies can find strategic ways to align their goals with this method. The company already has an optimal supply chain focused on product quality, short response times, and product availability. In addition, it can minimize the total cost of safety inventory by using a piecewise linearization approach with a total assembly cost of Rp. 6,161,120,000, where safety stock is stored in stages 2-4, 7-14, 16, and 22, where 22 has the highest stage costs. Then a sensitivity analysis is carried out by allowing the parameters to vary, the more segments' total cost becomes stable. Furthermore, the relationship between the factors of safety, storage costs, and standard deviation is linear

Relationship between ethics and Fair Trade supply chain organisation and performance: the case of Italian Alternative Trade Organisations (ATOs)

Fair Trade related import from developing countries is quickly growing although it still represents a small share of the total import. Its influence on the development of rural areas in developing countries is related to both quantitative growth and the respect of its ethical code. Large food multi-national companies are increasingly interested in Fair Trade; part of the Fair Trade movement considers the risk of a related loss in the products identity; others consider the refusal of a more "professional" approach to Fair Trade management as a constraint to its growth. This debate is particularly felt in Italy. The goal of this paper is to evaluate how the most important Italian Fair Trade importers (ATOs) business models influenced their growth strategies; transaction costs analyisis and logistics performance indicators were adopted to measure the supply chain coordination efficiency and performance. The results showed that the ATOs growth strategies, and logistics performances, seemed more influenced by their value propositions, than the lack of managerial skill.Fair Trade, Logistics, Alternative Trade Organisations, Agribusiness, International Relations/Trade,

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