Comparing conventional and distributed approaches to simulation in complex supply-chain health systems

Decision making in modern supply chains can be extremely daunting due to their complex nature. Discrete-event simulation is a technique that can support decision making by providing what-if analysis and evaluation of quantitative data. However, modelling supply chain systems can result in massively large and complicated models that can take a very long time to run even with today's powerful desktop computers. Distributed simulation has been suggested as a possible solution to this problem, by enabling the use of multiple computers to run models. To investigate this claim, this paper presents experiences in implementing a simulation model with a 'conventional' approach and with a distributed approach. This study takes place in a healthcare setting, the supply chain of blood from donor to recipient. The study compares conventional and distributed model execution times of a supply chain model simulated in the simulation package Simul8. The results show that the execution time of the conventional approach increases almost linearly with the size of the system and also the simulation run period. However, the distributed approach to this problem follows a more linear distribution of the execution time in terms of system size and run time and appears to offer a practical alternative. On the basis of this, the paper concludes that distributed simulation can be successfully applied in certain situations

Strategies for dynamic appointment making by container terminals

We consider a container terminal that has to make appointments with barges dynamically, in real-time, and partly automatic. The challenge for the terminal is to make appointments with only limited knowledge about future arriving barges, and in the view of uncertainty and disturbances, such as uncertain arrival and handling times, as well as cancellations and no-shows. We illustrate this problem using an innovative implementation project which is currently running in the Port of Rotterdam. This project aims to align barge rotations and terminal quay schedules by means of a multi-agent system. In this\ud paper, we take the perspective of a single terminal that will participate in this planning system, and focus on the decision making capabilities of its intelligent agent. We focus on the question how the terminal operator can optimize, on an operational level, the utilization of its quay resources, while making reliable appointments with barges, i.e., with a guaranteed departure time. We explore two approaches: (i) an analytical approach based on the value of having certain intervals within the schedule and (ii) an approach based on sources of exibility that are naturally available to the terminal. We use simulation to get insight in the benefits of these approaches. We conclude that a major increase in utilization degree could be achieved only by deploying the sources of exibility, without harming the waiting time of barges too much

E-logistics of agribusiness organisations

Logistics is one of the most important agribusiness functions due to the idiosyncrasy of food products and the structure of food supply chain. Companies in the food sector typically operate with poor production forecasting, inefficient inventory management, lack of coordination with supply partners. Further, markets are characterised by stern competition, increasing consumer demands and stringent regulation for food quality and safety. Large agribusiness corporations have already turned to e-logistics solutions as a means to sustain competitive advantage and meet consumer demands. There are four types of e-logistics applications: (a) Vertical alliances where supply partners forge long-term strategic alliances based on electronic sharing of critical logistics information such as sales forecasts and inventory volume. Vertical alliances often apply supply chain management (SCM) which is concerned with the relationship between a company and its suppliers and customers. The prime characteristic of SCM is interorganizational coordination: agribusiness companies working jointly with their customers and suppliers to integrate activities along the supply chain to effectively supply food products to customers. E-logistics solutions engender the systematic integration among supply partners by allowing more efficient and automatic information flow. (b) e-tailing, in which retailers give consumers the ability to order food such as groceries from home electronically i.e. using the Internet and the subsequent delivery of those ordered goods at home. (c) Efficient Foodservice Response (EFR), which is a strategy designed to enable foodservice industry to achieve profitable growth by looking at ways to save money for each level of the supply chain by eliminating inefficient practices. EFR provides solutions to common logistics problems, such as transactional inefficiency, inefficient plant scheduling, out-of-stocks, and expedited transportation. (d) Contracting, a means of coordinating procurement of food, beverages and their associated supplies. Many markets and supply chains in agriculture are buyer-driven where the buyers in the market tend to set prices and terms of trade. Those terms can include the use of electronic means of communication to support automatic replenishment of goods, management of supply and inventory. The results of the current applications of e-logistics in food sector are encouraging for Greek agribusiness. Companies need to become aware of and evaluate the value-added by those applications which are a sustainable competitive advantage, optimisation of supply chain flows, and meeting consumer demands and food safety regulations. E-business diffusion has shown that typically first-movers gain a significant competitive advantage and the rest companies either eventually adopt the new systems or see a significant decline in their trading partners and perish. E-logistics solutions typically require huge investments in hardware and software and skilled personnel, which is an overt barrier for most Greek companies. Large companies typically are first-movers but small and medium enterprises (SMEs) need institutional support in order to become aware that e-logistics systems can be fruitful for them as well

COMPETITIVE ADVANTAGE BY INTEGRATED E-BUSINESS IN SUPPLY CHAINS: A STRATEGIC APPROACH

This paper reports findings of the competitive advantage of supply chain integration and the crucial role of integrated e-business to deliver those benefits. However, adoption of e-business in supply chains has been slower than expected, particularly in small to medium sized enterprises (SMEs). Differences between firms in supply chains and between supply chains are examined. Across industries, firms have adopted e-business initiatives to better manage their internal business processes as well as their interfaces with the environment. The authors’ findings provide the foundation for a more rigorous study of e-business.e-business, IT business value, supply chain management, value chain, competitive advantage

Effective medical surplus recovery

We analyze not-for-profit Medical Surplus Recovery Organizations (MSROs) that manage the recovery of surplus (unused or donated) medical products to fulfill the needs of underserved healthcare facilities in the developing world. Our work is inspired by an award-winning North American non-governmental organization (NGO) that matches the uncertain supply of medical surplus with the receiving parties’ needs. In particular, this NGO adopts a recipient-driven resource allocation model, which grants recipients access to an inventory database, and each recipient selects products of limited availability to fill a container based on its preferences. We first develop a game theoretic model to investigate the effectiveness of this approach. This analysis suggests that the recipient-driven model may induce competition among recipients and lead to a loss in value provision through premature orders. Further, contrary to the common wisdom from traditional supply chains, full inventory visibility in our setting may accelerate premature orders and lead to loss of effectiveness. Accordingly, we identify operational mechanisms to help MSROs deal with this problem. These are: (i) appropriately selecting container capacities while limiting the inventory availability visible to recipients and increasing the acquisition volumes of supplies, (ii) eliminating recipient competition through exclusive single-recipient access to MSRO inventory, and (iii) focusing on learning recipient needs as opposed to providing them with supply information, and switching to a provider-driven resource allocation model. We use real data from the NGO by which the study was inspired and show that the proposed improvements can substantially increase the value provided to recipients

'Smart' design: greening the Total Product System

About the book: Since the Rio summit in 1992, the paradigm of corporate environmental responsibility has gradually and consistently extended beyond complying with increasingly stringent environmental regulation and taking up the proactive initiatives of a few world-class companies. Research indicates that the business and financial performance of companies may depend directly on socially and environmentally responsible business practices. Many world-class companies now realize that customers and other stakeholders do not distinguish between a company and its suppliers. As a result, greening the supply chain is an innovative idea which is fast gaining attention in the industry. Greening the Supply Chain is a compilation of important chapters written by a diverse set of international authors which incorporates a broad variety of perspectives. Note: Smart car refers to Smart City coupe and Fortwo, and all terms are registered trademarks of MCC (micro compact car)

A Total Product System Concept - a case study of the smart (tm) automobile

Increasing demand from consumers plus EU legislation has raised awareness within the automotive production sector of the urgent need to reduce the environmental impacts from the three main stages in vehicle life – car manufacture, car use and end-of life vehicle processing. The paper reviews how the originator and manufacturer of the smart automobile has worked directly with its main system partners to address environmental issues in these three stages while optimizing performance across the parameters of commercial viability. This required the creation of strategic relationships within the supply chain. Overall, this innovative approach is viewed in the context of a total product system. The smart car highlights the following critical areas: use of modularity in product design and production facility layout; emphasis on partner participation from product creation to after-sales; and the use of highly customised build-to-order product system to 'green' the entire supply chain. In particular, the case study compares the process characteristics empoyed at the smart car factory, called 'smartville', with more traditional approaches to vehicle manufacture. It exmaines these issues in a preliminary attempt to establish the actual or potential reduction of environmental impact in the three stages of vehicle life, including the role of main suppliers in this process

LOGISTICS AND SUPPLY CHAIN STRATEGIES IN GRAIN EXPORTING

During the past decade, the grain shipping industry has become highly competitive and technologically advanced. These changes, along with the introduction of innovative shipping mechanisms, have made logistics management an important source of opportunity and risk for grain shippers. In this study, a stochastic simulation model was developed to evaluate the tradeoffs and effects of key variables on logistical performance in managing the grain supply chain. Average demurrage cost for the supply chain was $2.03 million with the greatest cost being for railcars and the least cost being for barges. Of the stochastic variables modeled, changes in export demand had the greatest impact on demurrage costs.Supply Chain, Grain Shipping, Logistics, Demurrage, Guaranteed Freight, Industrial Organization,

SUPPLY CHAIN INTEGRATION IN THE FOOD AND CONSUMER GOODS INDUSTRIES

The interorganizational structures necessary to implement and achieve the logistical performance improvements identified in the Efficient Consumer Response (ECR) initiative and related supply chain management concepts are difficult to develop. Firms continue to struggle to implement integrated programs and techniques, particularly with respect to changing operating structures, relationships, and mindsets to facilitate true supply chain integration. This research explores the logistical strategies and structures used by selected food and consumer goods firms to integrate their supply chains. It illustrates effective integration strategies and identifies critical success factors and barriers to successful ECR implementation. A framework is used to guide managers in developing the competencies essential to integrating the supply chain and to establishing the relationships necessary to operate in an ECR environment. The framework, entitled Supply Chain 2000, depicts supply chain value creation as achieving synchronization and coordination across four critical supply chain flows: product/service; market accommodation; information; and cash.Industrial Organization,