Sustainability and the Future of Supply Chain Management Benita Beamon (University of Washington, Seattle, Washington, USA)
Abstract: The global supply chain is embarking upon a new era of challenges and opportunities. Environmental protection, energy availability, and dramatic population increases are placing unprecedented pressure on the abilities of worldwide supply chains to efficiently and effectively provide goods and services. However, modern supply chains and the supply chain of the future also have unprecedented access to technology, particularly communication technology, enabling real-time connectivity to virtually anyone on earth. This paper describes the challenges and opportunities facing the supply chain of the future and describes the various effects these issues have on supply chain design, management, and integration.
Is the East Following the West or its own Destiny for Industrial Development? A Research Agenda based on Supply-Chain Integration ManMohan S. Sodhi (Cass Business School, City University of London, UK) Christopher S. Tang (UCLA Anderson School, USA)
Abstract: We seek to set up a research agenda around the question of whether companies in emerging economies in Asia are following the same industrial development path as those in developed countries. In particular, we compare supply chain integration in these economies through examples of companies known for their supply chain expertise and explore if and how supply-chain integration is different for these companies. These examples indicate that companies in emerging economies in Asia might be focusing on the customer or the front end of the supply chain for integration efforts while those in developed economies might be focusing on the supply or the back end of the supply chain. To explain these or other differences, we provide alternative research hypothesis based on the notion of development cycle and on region-specific development, along with related research questions for further research and their different policy implications.
Adoption of Supply Chain Management Enabling Technologies: Comparing Small, Medium and Larger Organizations Damien Power (University of Melbourne, Australia)
Abstract: This paper aims to extend understanding of adoption drivers and outcomes for supply chain management enabling technologies. In order to achieve this data has been collected from two surveys within the Australian Fast Moving Consumer Goods (FMCG) sector two years apart. The focus of this study is to understand how adoption differs for large, medium and small organizations within this sector. Although use of these technologies has been previously researched in FMCG supply chains, few of these studies have focused on why organization size appears to moderate adoption, particularly for Internet based technologies. This study also aims to broaden the analysis to include smaller firms that make up the majority of players in this group, and for whom reduced costs of access and use should provide incentives to adopt. The evidence indicates that although the adoption and use of supply chain management enabling technologies is more attractive to large and medium sized organizations, these same organizations appear to be inherently more susceptible to common impediments to extended adoption. At the same time, however, small organizations do not appear to be as encumbered by outdated processes and cultural inertia yet they do not adopt these technologies readily. There is also evidence found indicating that SME’s should not be treated as a homogeneous group, and that there are significant differences recorded between small and medium sized firms traditionally defined as being SME’s.
Modeling and Analysis of a Reverse Supply Chain Network for Lead-Acid Battery Manufacturing Reza S. Lashkari (University of Windsor, Windsor, Canada) Hailun (Helen) Zhang (University of Windsor, Windsor, Canada)
Abstract: This paper describes the design of a closed-loop supply chain network for a lead-acid battery manufacturing operation. The planning model encompasses the entire closed-loop business process including purchasing, production, and end-of-life dead product collection and recycling. The model is a multi-objective, multi-echelon mixed integer linear program, which minimizes the total cost of the operations and the total pollution emissions related to transportation, subject to structural and functional constraints. Numerical examples have been provided to present the results regarding raw material procurement, production, recycling and inventory levels, and the transportation activities between the various echelons.
Applying Design Structure Matrix (DSM) Method in Mass Customizations AHM Shamsuzzoha (University of Vaasa, Vaasa, Finland) Petri Helo (University of Vaasa, Vaasa, Finland) Tauno Kekale (University of Vaasa, Vaasa, Finland)
Abstract: Growing demand on product individualization forces manufacturing organizations to react quickly and reducing the cost at the same time. To meet individual customers’ need, competitive enterprises have to adopt both strategies of customer-driven and cost efficient product development. This can only be achieved by raising designers’ awareness of market information, which includes both customer, and competitors’ information. Sharing market situation among concurrent design teams is critical to provide customized products. This paper discusses mass customization approach using Design Structure Matrix (DSM) methodology, which is a valuable tool for producing different product variety quickly and economically. Our focus in this paper is to demonstrate how product-customization could be done efficiently by using DSM. A case example taken from Volvo Company trucks is also included with this paper in order to show how different design rules could be implemented successfully by using DSM, which may be helpful for customization process too.
Capability and Practice in Procurement Collaboration: A Vendor’s Perspective of Benefits Damien Power (University of Melbourne, Australia)
Abstract: This paper is based on a study of 105 Australian manufacturing companies focusing on their relationships as vendors with customers. In particular, the focus of the paper was on determining the extent to which collaboration through both Internet based technological capability and collaborative practices involving partnering with customers influenced three separate aspects of firm performance: operational, quality and financial. The results show that vendors perceive collaboration with customers to directly influence operational performance and quality performance. They do not see any direct link with financial outcomes. There is evidence, however, suggesting that financial performance is influenced by operational and quality performance. The findings indicate that vendors may find it difficult to see the real benefits of collaboration due to the nature of the relationship with customers. The results are explained in terms of both transaction cost theory and the knowledge based view of the firm.
Factors Influencing the Effectiveness of Operational Information Sharing within Supply Chain Channels in Malaysia Suhaiza Zailani (Universiti Sains Malaysia, Malaysia) R. Premkumar (AIMST University, Malaysia) Yudi Fernando (Universiti Sains Malaysia, Malaysia)
Abstract: The literature on supply chain and information has grown consistently over the past few years. This scenario reflects that that academics and practitioners have realized that in order for firms to become flexible, adaptable and efficient, they must focus their resources on managing the information throughout the supply chain channel. On the other hand, the competitive global marketplace requires firms to be flexible, for example they need to be able to share the information so that they can deliver materials with rapid cycle, or driving towards operational excellence. Although information sharing among trading partners is consistently mentioned as a key requirement of effectiveness supply chain management, research on information sharing is scarce particularly in Malaysian cases. This lack of research provides little guidance and support for those managers interested in improving their information sharing with the suppliers and customers. The main aim of this paper is to identify what are the factors influencing the effectiveness of operational information sharing. Questionnaires were sent to supply chain managers at E&E firms in several industries in Malaysia. Five independent variables namely, information quality, IT commitment, SCM commitment, organizational size and trust were significantly related to operational information sharing. This finding indicates that it is extremely important to consider the quality of the information and the ability of the recipients to utilize the information based on differences in technologies being used, apart from their commitment on SCM, size of their organizations and trust among the partners. With the critical role that operational information plays in increasing the collaboration among supply chain partners, these factors are believed can facilitate the effectiveness of operational information sharing by supporting the practitioners to build capabilities to compete globally.
Advanced Available-To-Promise for Order Management in Stock-out Situation Uche Okongwu (Toulouse Business School, France) Matthieu Lauras (University of Toulouse, France) Vérane Humez (University of Toulouse, France) Lionel DuPont (University of Toulouse, France)
Abstract: Many authors have highlighted the gap between the supply side and the demand side of the order fulfilment process. Generally, the latter tends primarily to be “agile” by maximising responsiveness and flexibility while the former tends to be “lean” by maximising efficiency. However, the most fundamental trade-offs in supply chain management are between these two properties. This is the “leagile” objective. In stock-out situation, the delivery options that would minimize the customers’ dissatisfaction while reconciling the conflicting objectives of the different actors of the supply network must be defined. Today, no particular method seems to allow managing bulk within this leagile ambition. This paper proposes a non-sequential Advanced Available-to-promise model to tackle this question. The model is applied to a numerical example and the results obtained are used to illustrate the most representative delivery strategies.
Selecting Green Suppliers with Analytic Hierarchy Process for Biotechnology Industry Shui-Shun Lin (National Chin-Yi University of Technology, Taiwan, ROC) Ying-Shen Juang (National Chin-Yi University of Technology, Taiwan, ROC)
Abstract: The biotechnology industry is recognized as one of the industries of the 21st century with the most potential. The Taiwanese government accordingly has included the biotechnology industry as part of the project entitled “Two-Trillion-Twin-Stars”. Under current environmental protection regulations, the pressures related to the green industrial revolution are being intensified. Enterprises collaboratively executing green supply chain management with suppliers are urgently needed. One crucial step of supply chain management is to select appropriate partners. Green supplier selection is conducted by embedding the environmental protection concept within supplier evaluation processes. The primary intention of this study is to investigate the selection process for green suppliers in the biotechnology industry via utilization of the analytic hierarchy process (AHP). The research study collaboratively establishes a set of green supplier evaluation criteria and designs the evaluation processes. In short, the objectives are twofold: (1) to establish collaborative evaluation criteria of green suppliers utilizing AHP; and (2) to construct evaluation processes according to the aforementioned set of criteria. The findings of this research suggest that the major concerns in terms of green supplier selection for biotechnology companies are currently cGMP certification, established environmental policies, and product acknowledgement. Also, an evaluation form consisting of green criteria and weights is constructed to facilitate the selection process.
Collaborative Supply Chain Management: The Hybrid Knowledge-Based Development Approach of Suppliers-Customers Perspective Zulkifli Mohamed Udin (Universiti Utara Malaysia, Malaysia) Shahimi Mohtar (Universiti Utara Malaysia, Malaysia) Abdul Aziz Othman (Universiti Utara Malaysia, Malaysia)
Abstract: Using a hybrid (Knowledge Based, GAP analysis and AHP approach) methodology, the Knowledge-Based CSCM (KBCSCM) system was developed to assist in planning and designing a Collaborative Supply Chain Management (CSCM). The KBCSCM system has a capability to identify variables or factors that need to be improved immediately for supply chain collaboration development. The purpose of this paper is to discuss the approach / methodology that used to identify the key components that are need to be improved in developing a CSCM from the supplier and customer perspective. This paper also demonstrates the use of The Gauging Absence of Prerequisites (GAP) analysis and Analytic Hierarchy Process (AHP) technique that are embedded in the KBCSCM system, which is used to support the CSCM development. This paper deals with the perspective of auto parts suppliers and customers in the automotive industry on the ability to work together among suppliers, Original Equipment Manufacturers (OEMs) and customers in supply chain management (SCM). A case study approach has been used to gather data from 150 respondents in 8 different organisations through KBCSCM system. Series of questions have been asked and followed by interview to confirm the answers from respondents. By utilising GAP analysis and AHP technique, management could use the result to design the supply chain collaboration environment. The GAP analysis technique, which embedded in the knowledge-based system, is proposed to analyse the gap between the current and the desirable position (benchmark) for an effective implementation. The proposed framework enables suppliers and customers to identify key factors or issues that have greater improvement priority for supply chain collaboration development.
Application of Numerical Design Structure Matrix Method in Engineering Projects Management Indra Gunawan (Auckland University of Technology, Auckland, New Zealand)
Abstract: In this paper, ways of improving planning, execution and management of projects using Numerical Design Structure Matrix (NDSM) method are presented to address interdependency of feedback and iteration, which is common in engineering projects management. The NDSM is an alternative approach to traditional project management tools such as Program Evaluation and Review Technique (PERT), Critical Path Method (CPM), and Gantt chart that can only allow the modelling of sequential and parallel processes in projects. As a case study, the model is tested on a set of tasks in a complex petroleum oil field development project, where task sensitivity and information variability attributes are derived. By applying the NDSM method, project duration is optimized and hence total cost of the project is reduced significantly.
Business Environment Factors, Incoterms Selection and Export Performance Nicolas Hien (Groupe 4L2 Inc, Canada) Gilbert Laporte (HEC Montreal, Canada) Jacques Roy (HEC Montreal, Canada)
Abstract: The objective of this study is to identify the main factors taken into consideration when deciding which Incoterms to use and to analyze the impact of the choices of Incoterms on export performance. The results highlight the importance of considering both the internal and external business environments in the selection process for Incoterms and its contribution to improved export performance. In addition, this article shows the importance of training to increase the awareness of the strategic dimension of Incoterms and to promote the utilization of Incoterms which also enhance export performance.
A Study of Supply chain Management Practices in Finland and the United States Karen Spens (Hanken School of Economics, Finland) Joel Wisner (University of Nevada, Las Vegas, USA)
Abstract: Although for the past ten years there has been an abundance of research generally investigating various aspects of supply chain management (SCM), a lack of globally-based empirical studies examining actual SCM practices still exists. In this study, the overall objective was to identify, compare, and assess a number of SCM implementation and operating practices among firms in Finland and the United States. A survey identifying SCM experiences and practices in use among several industries was conducted and similarities and differences in supply chain management implementation experiences and operating practices were discovered. This research thereby develops a deeper understanding of the practice of SCM by looking at SCM attitudes and experiences among managers in firms from two advanced yet geographically dispersed economies. An associated practical objective of the study was to identify a set of supply chain management-oriented activities that will allow firms and their trading partners to enhance their overall effectiveness and value.
Going Green through Green Supply Chain Initiatives Toward Environmental Sustainability Tarig Khidir Eltayeb (School of Management, Universiti Sains Malaysia, Malaysia) Suhaiza Zailani (School of Management, Universiti Sains Malaysia, Malaysia)
Abstract: Recently, the environment has emerged as a hot issue for governments, societies, as well as business organizations. This importance emanates from increasing environmental problems such as global warming, ozone depletion, solid wastes, and air pollution. Business organizations are considered to be the source of most of the environmental problems. This paper is an attempt to clarify the path towards that end and highlight steps to be taken by business organizations through green supply chain to make sustainable development a reality. Specifically the paper is interested to investigate the adoption of green supply chain initiatives e.g. green purchasing, eco-design, and reverse logistics. The survey data was obtained from ISO 14001 certified manufacturing firms in Malaysia. The results showed that eco-design is the most adopted green supply chain initiative followed by green purchasing, while reverse logistics showed the lowest level of adoption. The result of the t-test revealed that there are no significant differences in green supply chain initiatives between firm ages and type of product. The result of the t-test disclosed also that firms that participate in green-interested associations have significantly higher level of adoptions of green supply chain initiatives than firms that do not participate. Green supply chain initiatives can play significant role in achieving the “triple bottom line” of social, environmental, and economic benefits and, therefore, contributing to sustainable development of the society.
The Influence of Production Management Practices and Systems on Business Performance: From the Perspective of the Push-pull Production Systems Hui-Ming Wee (Chung Yuan Christian University, Chungli, Taiwan, R.O.C) Shu-Yun Peng (Chung Yuan Christian University, Chungli, Taiwan, R.O.C) Ching-Chow Yang (Chung Yuan Christian University, Chungli, Taiwan, R.O.C) Paul KP Wee (Macquarie University, Sydney, New South Wales, Australia)
Abstract: This study develops a conceptual model: Customer Output Process Integrated System (COPIS) with hybrid push-pull strategy. We seek to investigate the performance and critical success factors of a Taiwanese enterprise. The COPIS conceptual model provides managerial insights to enterprises to achieve their objectives as well as to improve customer relationship. Through an appropriate process design, the Taiwanese enterprise is able to control critical factors and performance indices to maintain flexibility and robustness. Enterprises should design and plan their process based on the characteristic of the business, the processing design, the flow design and the load leveling system.
A Theory and Tools for Collaborative Demand-to-Supply Management in SCM Age Akihiko Hayashi (The University of Electro-Communication, Japan) Nobuaki Ishii (Bunkyo University, Japan) Masayuki Matsui (The University of Electro-Communication, Japan)
Abstract: In recent years, collaborative demand-to-supply management, which strategically supplies products to the market in order to maximize profit, has played a critical role in establishing a sustainable company. However, the sales function and the production function do not always work together for profit optimization. In most cases, the sales function is responsible for maximizing sales. On the other hand, the production function is responsible for minimizing production cost. In the SCM age, this situation causes production of excess inventory as well as long order fulfillment time. For the collaboration of both functions, a strategic demand-to-supply map has been developed. The strategic map consists of a row and a column indicating the demand speed and the smoothing factor for demand forecasting. This paper presents a theory and a planning tool, called the planner, for collaborative demand-to-supply management based on the strategic map. The planner consists of demand forecasting, aggregate planning, the strategic map, the scheduler, and progressive analysis. The effectiveness of the planner is demonstrated with a numerical example. In addition, this paper shows that the planner is a useful tool for staff in the sales department and the production department for training or understanding collaborative demand-to-supply management. This paper also presents the potential areas of future research and development of collaborative demand-to-supply management and the planner.
Editorial Joel D. Wisner (University of Nevada, Las Vegas, USA)
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Banneker Industries, Inc. Christopher J. Roethlein (Bryant University, USA) Cheryl W. Snead (Banneker Industries, Inc. ) John K. Visich (Bryant University, USA)
Abstract: The case details the quality-minded management style that was used to transform a failing machine shop into an innovative company whose core strengths focus on the strategic sourcing of supply chain management (SCM) services. Banneker Industries is a minority and woman-owned company that has received dozens of awards for their leadership and abilities as a dynamic supply chain service provider. As Banneker’s list of value added services grew, so did their customer bases and revenue from those customers. But, as their relationship and amount of business with their leading (and mentoring) customer grew, Banneker was increasingly concerned that they were getting too dependent on them. In order to position themselves for growth through larger contracts and new customers, Banneker is considering joining forces with three other minority owned businesses in order to collectively add value to larger contracts. In addition to this collaboration, Banneker is considering plans to open satellite warehouses throughout the United States using a business model that has both profit and not-for-profit goals. A vibrant and thriving culture exists at Banneker and there are concerns that growth may moderate the Team Banneker spirit and work ethic.
Heartland & Company Michael A. McGinnis (The Pennsylvania State University, USA)
Abstract: Industrial buyers face a number of apparently routine challenges when making sourcing decisions. Some of these decisions include supplier evaluation processes, the allocation of business between two or more suppliers, how the evaluation process affects the allocation decision, and how these decisions are affected by the organization’s goals. The case presented in this paper describes the challenges faced by a buyer of one industrial product. The case’s thought provoking questions encourage student thinking and provide the basis for stimulating class discussion. This case has been classroom tested.
Insights into Corporate Social Responsibility Practices in Supply Chains: A Multiple Case Study of SMEs in the UK Francesco Ciliberti (Polytechnic of Bari, Italy) Denise Baden (University of Southampton, UK) Ian A. Harwood (University of Southampton, UK)
Abstract: The aim of this paper is to investigate the pressure exerted by supply chain partners, especially large-scale business customers and public authorities, on small- and medium-sized enterprises (SMEs) to adopt corporate social responsibility (CSR) practices. More specifically, we analyze how SME suppliers perceive and respond to supply chain pressure and then we investigate if such pressure is effective. The analysis is carried out through four case studies within SMEs in the UK. These cases are deliberately chosen to illustrate to students and CSR practitioners the potential range of different viewpoints in relation to CSR and supply chain management. The article suggests that, in order to enhance the perception of supply chain pressure as a CSR driver by SMEs, derived benefits should be more clearly identified (including moral, rational, as well as economic). There is also the risk that, when CSR requirements are imposed by large-scale business customers and public authorities, SMEs have difficulties in implementing CSR and consequently are tempted to behave opportunistically. An opportunistic behaviour can be associated to the large-scale business customers and the public authorities as well, when their commitment in CSR is perceived as only superficial. Thus there seems to be the need for a higher level of trust in such actors in order to share the potential benefits and costs related to CSR among all supply chain partners. In some cases, supply chain pressure can be detrimental to the existing initiatives voluntarily carried out by SMEs, which can consequently decrease their intrinsic motivation to engage.
Managing Supply Chain Complexity in a Tea Manufacturing Company I Nyoman Pujawan (Sepuluh Nopember Institute of Technology, Indonesia) Mahendrawathi Er (Sepuluh Nopember Institute of Technology, Indonesia)
Abstract: In this case we present issues facing supply chain management in a tea manufacturing company. The company manages two types of products, ready-to-drink jasmine tea and ready-to-drink fruity tea, each having different complexity issues in their supply chain management processes. The case explains characteristics of the products, the supply chain structures, and the nature of demand. The case is expected to facilitate discussions of various supply chain concepts such as the bullwhip effect, supply chain coordination, and vertical integration versus outsourcing.
Reading the Tea Leaves at Tea and More: Resolving Complex Supply Chain Issues Barry Doyle (University of San Francisco, USA) Arthur H. Bell (University of San Francisco, USA)
Abstract: Tea and More is facing growing pains from its rapid expansion over the last decade and more. The case provides a summary of the challenges faced by the company in the areas of supply chain management, marketing plans, the creation of economic value, and the development of a long term strategy for profitable growth.
Trade Barter, the Rimzi Chamber of Commerce and the Rimzi University of Economics Eyal Eckhaus (Bar Ilan University, Israel) Frank Bates (Bar Ilan University, Israel; Izmir University of Economics, Turkey)
Abstract: In times of recession buyers may need to make difficult decisions and to prioritize purchases. One of the more appealing strategies taken is trade barter, which enables the exchange of goods or services with a minimum need for cash. The case presented in this paper describes the challenges faced by a Turkish Chamber of Commerce and Rimzi University, when trying to maintain funding levels during lean economic times. The case’s thought provoking questions encourage student thinking and provide the basis for stimulating class discussion.
Ranking Operations Management Conferences Harm-Jan Steenhuis (Eastern Washington University, USA) Erik-Joost de Bruijn (University of Twente, The Netherlands)
Abstract: The purpose of this paper is to present a ranking of operations management conferences. Several publications have appeared in the field of Operations Management which rank related journals. Many academics also publish at conferences but we have not come across publications that rank conferences. Several ranking systems exist for journals based on, for example, perceived relevance and quality, citation, and author affiliation. . In this paper the first attempt is made in developing an operations management conference ranking based upon author affiliation. This is done in two steps. First, based on an analysis of contributions to operations management journals a ranking of affiliations is established. Then, this ranking is used to determine the author affiliation index for several conferences such as from the Production and Operations Management Society (POMS), European Operations Management Association (EurOMA), Operations and Supply Chain Management (OSCM), and the Operations Management Division of the Academy of Management (AoM). The results provide information for authors that help in deciding which operations management oriented conferences to attend. It was found that the AoM conference is on average the conference with the highest First Author Affiliation Index (FAAI) scores. It also scores the highest for the six journals combined in four of the six years. The POMS conference scored highest in three of the six years for the three US-based journals while the EurOMA conference scored highest in four of the six years for European-based journals. The findings can be used to make more informed decisions related to which operations management conference to attend based upon the assumption of quality of presented papers.
Environmentally-Conscious Supply Chain Design in Support of Food Security Caroline C. Krejci (University of Washington, USA) Benita M. Beamon (University of Washington, USA)
Abstract: This paper seeks to design food supply chain structures that can provide food security for every person in the world while supporting long-term environmental sustainability. In particular, we provide alternatives to the current food supply chain structure and analyze their potential for providing food security, in terms of productive capacity and long-term environmental sustainability. Given the current world population and expected continued growth, our analysis suggests that environmentally-sustainable food supply chains would be most effectively supported by local and organic agriculture, while maintaining a parallel industrial agricultural system. This hybrid system would adopt environmentally-sustainable principles whenever possible, seeking to increase reliance on renewable inputs, reduce toxic outputs and maintain biodiversity.
Extension of a Bernoulli Demand Inventory Model Pritibhushan Sinha (West Bengal, India)
Abstract: In this article a single-item, continuous monitoring (s, Q) inventory model with probabilistic demand following Bernoulli distribution and probabilistic lead time of order replenishment is considered. The model extends a Bernoulli demand inventory model, available in the literature. We allow a non-zero reordering inventory position. Some properties are shown for the model and a search method is given to find the optimal values of the policy parameters. A numerical experiment is done for the model and some observations are made.
An Alternative Approach using Genetic Algorithm Based Heuristics for Capacitated Maximal Covering Location Allocation Problem S. Sarifah Radiah Shariff (Universiti Teknologi MARA, Malaysia) Noor Hasnah Moin (University of Malaya, Malaysia) Mohd Omar (University of Malaya, Malaysia)
Abstract: The Maximal Covering Location Problem (MCLP) has the objective of maximizing the total demand volume covered by a facility within a maximum allowable travel distance, S. In this paper, three sets of data 30-node, 324-node and 818-node networks with no existing facilities are analyzed as the capacitated model of MCLP (CMCLP) and first solved by the commercial optimization software, CPLEX. As the software produces results which violate the capacity constraint when the constraints are tight, an alternative approach of Genetic Algorithm based heuristics is used to solve the problem for more competitive results. Combination of the best number of facilities to open and the random node order assignment is used to maximize the percentage of total demand covered. The approach is found to solve all the capacitated MCLP in shorter time and in more promising result compared to CPLEX. Finally, the result of the approach is presented and applied to analyze a “real-world” example on a selected area, Telok Panglima Garang, Selangor which is currently served by 5 public health care facilities. This is to explore the implications of the model as the area already has existing facilities and to provide insight on future decisions that can be made on the expansion and development of current facilities.
Effectiveness of Case Study in Enhancing Student Learning in Operations and Supply Chain Management Mahour Mellat-Parast (University of North Carolina-Pembroke, USA)
Abstract: The purpose of this study is to investigate the effectiveness of case study on student learning using Laboratory for Innovative Technology and Engineering Education (LITEE) case study. It has been proposed that student learning outcomes will be improved after using the case analysis. Seven constructs have been developed to measure different aspects related to student learning. Pre-assessment and post-assessment of student learning outcomes has been conducted to determine the effectiveness of case study approach in enhancing student learning. The results show that using case analysis significantly improves students’ higher-order cognitive domain of learning (HC) and self-efficacy (SE). The paper makes contribution to our understanding of the effectiveness of case study on improving learning outcomes of undergraduate students in operations management. Implications for educators and future research have been outlined.
Dyadic Relationships and Power within a Supply Network Context Anni-Kaisa Kahkonen (Lappeenranta University of Technology, Finland) Katrina Lintukangas (Lappeenranta University of Technology, Finland)
Abstract: Recently in supply management research, the power theme has gained growing interest. The analysis of power in the context of dyadic relationship between a buyer and supplier has been criticized for having a limited viewpoint because it fails to explain multiple interactions. Power is a socially embedded phenomenon and, therefore, the transactions and relationships included in supply networks should also be taken under scrutiny. Thus, the aim of this study is to analyze the impact of network effects and the influence of power on the nature of collaboration between buyers and suppliers within a supply network. The case study analyzes the issue in the Finnish food industry. The results show that the power relations have an influence on the nature of the relationship, and the sources of power that are based on the network effects may crucially determine the power position of the network actor and, moreover, the power relation between two actors.
Building Competitive Advantage Through Innovative Reverse Logistics Capabilities Ju-Miao Melody Hsiao (Ling Tung University, Taiwan)
Abstract: The recent global economic recession has forced many business firms to increase efficiency, cut waste and invest in innovation in order to sustain competitiveness. The purpose of this study is to explore how firms handle their returns processes, an area which can impact on competitive advantage. The research focuses on short life-cycle products. The study used case study methodology, conducting in-depth interviews with key logistics managers in four companies. The findings revealed that, although each company had different emphasis in handling product returns, three key drivers, namely information technology, knowledge sharing and relationship networks, had positive impacts on its reverse logistics capabilities and consequently on their competitive advantage.
Supplier Selection in JIT Automotive Industry: A Multivariate Approach Isti Surjandari (University of Indonesia, Indonesia) Sumarsono Sudarto (University of Indonesia, Indonesia) Santi Anggarini (University of Indonesia, Indonesia)
Abstract: In this globalization era, manufacturing industries have experienced many significant changes, indicated by highly-innovated and short-aged product emerging today. This condition has forced manufacturing industries to put more consideration to their core capability, thus consequently has made outsourcing activities become an important and strategic decision. A company’s efforts in achieving competitive benefits begin with managing its suppliers. In real conditions, selecting suppliers is not an easy thing to decide, yet it needs a correct strategic way in order to get potential suppliers. Furthermore in Just-In-Time (JIT) manufacturer, supplier selection is an important strategic issue for the company, because it is a long-term investment and success key to the JIT philosophy implementation. The objective of this paper is to design a framework for supplier selection in JIT manufacturing based on multivariate approach. This paper is based on a study in the largest JIT automotive manufacturer in Indonesia. The design begins by applying factor analysis to settle attributes used in the supplier selection process. Afterward, a conjoint analysis is used to find out the company’s preferences of its suppliers through the assessment of profiles, which are the combinations of attributes and levels used in the selection process. Selecting potential supplier can be established using Multidimensional Scaling (MDS) method. This method would specify company’s preferences visually in a multidimensional space, and in the end it would set the Euclidean distance for each supplier compared to the ideal point. Eventually, this perception map would help the company in choosing suppliers which are located within their ideal point.
Distribution of Customer Perception Information within the Supply Chain Robert Schmitt (RWTH Aachen University, Germany) Bastian Quattelbaum (RWTH Aachen University, Germany) Björn Falk (RWTH Aachen University, Germany)
Abstract: The purpose of the paper is the elicitation of customers’ perception information regarding consumer goods within different levels of accuracy. In the industry for consumer goods many efforts are carried out for the elicitation of customer information, but a systematic preparation and distribution of the gathered information is missing. Information with different level of accuracy circulates within a company but is not centralized for corporate use. Based on a proposed holistic framework for objectifying customer information for supply chains’ product specifications study procedures have been developed and corresponded studies were conducted. The results show that a gradual approach objectifies customers’ perception. Products can be divided into sub-elements by identifying perception clusters and quality attributes. First correlations between customers’ judgment and characteristics of quality attributes can be shown.
Multi-period Supply Network of Food Products Based on Time-Windows with Sensitivity Analysis Zeynab Raftani-Amiri (Sari Agricultural Sciences and Natural Resources University, Iran ) Hamed Fazlollahtabar (Mazandaran University of Science and Technology, Iran) Nezam Mahdavi-Amiri (Sharif University of Technology, Iran)
Abstract: Supply chain management is a cross-function approach to manage the movement of products toward consumers. Here, we propose a supply network which considers multiple food products with time windows. The proposed model considers different customers who are serviced by one supplier. The supplier provides various products being kept in different depots. Each depot uses different types of vehicles to satisfy the orders. Initially, all depots are stationed at the designated locations. The applicability of the model is illustrated using a numerical experiment. A comprehensive sensitivity analysis is worked out to show the flexibility of the proposed mathematical model.
Perceived Environmental Uncertainty Along the Thai Rice Supply Chain: An Empirical Approach Phatcharee Toghaw Thongrattana (University of Wollongong, Australia) Nelson Perera (University of Wollongong, Australia)
Abstract: Uncertainty generates unstable processes along supply chains, which in the end worsen their performance. Some sources of uncertainty in agri-food supply chains are distinct from those affecting general supply chains. These include issues such as variable harvest and production yields, and the huge impact of climate conditions. Thus, a deep understanding of which uncertainty factors mostly affect on agri-food supply chain management and its performance is vital for allow agribusiness to deal with them effectively. The purpose of this study is to discuss the perceived environmental uncertainties in the context of the rice supply chain in Thailand. A review of the literature indicates that perception of seven factors --supply, demand, process, planning and control, competitor behavior, government policy, and climate uncertainty-- are all potential causes of uncertainty and hence instability in the Thai rice supply chain. The research method used in order to confirm these factors is a survey with mail-out questionnaires to rice millers and rice exporters in Thailand. Descriptive statistics are employed to review which uncertainty factors within the rice supply chain are perceived as the greatest. Major findings show that planning and control, competitor behavior, government policy and climate uncertainties are the most influential factors. Because they depend upon information availability, accuracy, and throughput times, planning and control remain highly uncertain because information technology is rarely used in the Thai rice industry. Thus, lack of appropriate IT tools means that environmental uncertainties cannot be dealt with effectively. In addition, there is high competition in both the domestic and international rice market, leading to highly unpredictable competitor behaviors. As is the case in many developing countries, Thai government policies are turbulent, and the new factor of climate uncertainty in agri-food supply chain management is becoming more and more important in the Thai rice industry.
Moderating Role of Logistics Information Technology on the Logistics Relationships and Logistics Service Quality Hasnida Zakaria (University Sains University Sains Malaysia, University Sains Malaysia) Suhaiza Zailani (University Sains University Sains Malaysia, University Sains Malaysia) Yudi Fernando (University Sains University Sains Malaysia, University Sains Malaysia)
Abstract: An amount of research has shown that the adoption of technological innovations is the most important tool for enterprises to keep their competitive advantage. Recently, a body of evidence shows that logistics companies can increase their performance by employing new technologies. Many logistics companies began to improve their operation efficiency by continuous implementation of information or automation technologies according to their business characteristics. Logistics companies should employed new information technologies to raise their service capability in the e-commerce age. The main purpose of this study was to examine the impact of logistics relationships on logistics service quality with logistics information technology as moderator. A total of 109 feedbacks received from the 250 questionnaires distributed. Analysis was done to determine the most significant domain influencing logistics service quality. Results revealed that trust, commitment, communication and satisfactions influence the service quality except for bonding which showed no influence on the logistics service quality. The logistics information technology had no moderate effects on the relationship between logistics relationships and logistics service quality; however, the existence of trust and communication has made the moderation effect viable. The present study makes contribution to the logistics practitioners in practicing harmonized business strategy and suggestion for future studies. This study explore the relationships marketing in developing new construct for relationships dimension, which to explain the significant influence to the logistics industry and also to look for empirical evidence, on the relationships constructs, and contribution to the logistics industry.
Added Value and Performance Analyses of Edamame Soybean Supply Chain: A Case Study Marimin Marimin (Bogor Agricultural University, Indonesia ) Defni Feifi (Bogor Agricultural University, Indonesia ) Sri Martini (Bogor Agricultural University, Indonesia ) Retno Astuti (Bogor Agricultural University, Indonesia )
Abstract: This paper describes a conceptual framework for the added value and performance analyses of Edamame supply chain management with a company as a buyer and farmers as its suppliers. The main objective of this paper was to illustrate how XCo, as the company of fresh Edamame, can analyze as well as assess the added value and performance in each supply chain members. Data in this case study were collected through in-depth interviews with the supply chain members and from secondary data records available at the supply chain members. The supply chain structure and two main supply chain issues, i.e. added value and business performance at each supply members, were described, analyzed and compared. The supply chain added value was described and analyzed using Hayami method, while the supply chain performance was analyzed using the combination of Data Envelopment Analysis with pairwise comparison of Analytical Hierarchy Process. The results show that XCo obtained the highest added value, however about 50% of farmer groups still had negative added values. Based on the performance analysis, it was known that failures to comply with the order quantity and time delivery schedule were major factors that decrease the farmers’group-efficiency. XCo together with farmers’ group members should collaborate in scheduling the planting and harvesting.
Lead Logistics Provider and its Effect on Supply Chain Alliances - A Case Study on Taiwan Motor Industry Jheng-Dan Huang (Yuan Ze University, Taiwan ) Michael H. Hu (Yuan Ze University, Taiwan ) H. M. Wee (Chung Yuan Christian University, Taiwan)
Abstract: The increasing competition due to globalization and e-Business development has stimulated manufacturers to pursue supply chain alliances more aggressively. The primary motivation for this is to minimize overall costs and gain mutual benefits through supplier-manufacturer integration. Supply chain alliance is one of the key strategic co-operations adopted by manufacturers to simultaneously reduce costs and improve service. The advancement of supply chain alliance is moving from a Third-Party Logistics System to a Lead Logistics Provider Management System. The Lead Logistics Provider plays the role of logistics manager who lead the logistics operations across the entire supply chain with the ability to provide superior expertise in transportation services, warehousing capabilities, information technology, and materials replenishment among the other logistics activities. A Lead Logistics Provider system framework is composed of three components that include Resources Management, Information Central System, and Logistics Synchronization. This study presents a case of a Taiwanese automotive supply chain illustrating the application of supply chain alliances via the Lead Logistics Provider system. Significant improvement on inventory costs and improvement on the transportation performance is reported resulting from the application of this system. This scheme also showed enhanced service quality that creates business opportunities among the supply chain partners.
Sustainable Supply Chain Based Scenarios for Optimizing Trade-off Between Indonesian Furniture and Crude-Palm-Oil Industries Kuncoro Harto Widodo (Universitas Gadjah Mada, Indonesia)
Abstract: Trade-off, as the consequences of using the same resources, often occurs in the development of two or more business activities, e.g. between the supply chain of Indonesian furniture and crude-palm-oil (CPO) industries. The two industries use the land area to get supply of raw material. The furniture industries need wide area of forest to obtain an adequate wood supply while the CPO industries need wide land area to open new palm plantations. The previous research has identified the relationship of the two industries and the trade-off between them using a dynamic model approach. This research aims to modify the model and to propose some scenarios that may optimize the trade-off based on the previous results. We provide scenarios based on the development policy of Indonesian government. The scenarios are simulated using the modified of dynamic model. We obtain that the best scenario is scenario 3 which can optimize the trade-off between the supply chain of furniture and CPO industries in line with long term sustainable development. The scenario is set by increasing the productivity of palm plantations to change the pattern from extension into intensification by using robust palm plants.
Partner Selection in Supplier-Buyer Relationship with Integration of Leadtime Decisions under Demand Uncertainty Situation Yosi A. Hidayat (Bandung Institute of Technology, Indonesia) Katsuhiko Takahashi (Hiroshima University, Japan) Katsumi Morikawa (Hiroshima University, Japan) Kunihiro Hamada (Hiroshima University, Japan)
Abstract: We developed a procurement decision model, which takes into account partner selection and optimal order quantity with the integration of a planned production leadtime operational decision. Leadtime is taken into account in time and cost performance to achieve on-time delivery of a supply chain (SC) system. We contrast the three following original equipment manufacturer (OEM) conditions, (1) longer leadtime to the buyer but at a lower cost for the supplier, so the buyer has to add crashing cost to reduce the leadtime; (2) less leadtime to the buyer but at a higher cost for the supplier; (3) shorter leadtime to the buyer by adding crashing cost to reduce the inventory cost. Taking into consideration the impact of demand uncertainty directly to the buyers, we focus on simultaneous procedures in achieving an optimal solution. Our model considers an objective function consisting of operational costs and lead time decision under integrated supply chain entities (suppliers, sub-assembly manufacturers (OEMs), and buyers). Based on our numerical results, by trading-off inventory cost and leadtime crashing cost, the best possible combinations of partners in fulfilling demand from the market are B1-A2-S2 and B2-A1-S3. We found that these two combinations give $141,102.95 total profit per year to the SC system. We proposed appropriate strategies that could be applied at OEM by considering order arrival timing and leadtime.
Lean Manufacturing Implementation in Malaysian Automotive Industry: An Exploratory Study Norani Nordin (Universiti Utara Malaysia, Malaysia) Baba Md Deros (Universiti Kebangsaan Malaysia, Malaysia) Dzuraidah Abdul Wahab (Universiti Kebangsaan Malaysia, Malaysia)
Abstract: This paper presents an exploratory study of lean manufacturing implementation in Malaysian automotive industries. A questionnaire survey is used to explore the extent of lean manufacturing implementation. This paper also examines the drivers and barriers that influence the implementation of lean manufacturing. The survey was performed on sixty Malaysian automotive components manufacturing firms. The respondents were chosen from those who are directly involved with lean manufacturing practices such as production and quality personnel. The findings show that most of the respondent firms are classified as in-transition towards lean manufacturing practice. These in-transition firms have moderate mean values for each of the five lean manufacturing practice categories. It is also found that these firms spend more attentions and resources in internal areas such as firms’ operation and management, compared to external relationships with suppliers and customers. These firms believe that the factors that urged the implementation of lean manufacturing are the desire to focus on customers and to achieve the organisation’s continuous improvement. The results from this survey also revealed the main barriers that prevent or delay the lean implementation. The main barriers to implement lean manufacturing system are the lack of understanding lean concepts and shop floor employees’ attitude.
Conducting a Case Study in Supply Management Anni-Kaisa Kahkonen (Lappeenranta University of Technology, Finland)
Abstract: The aim of this article is to enhance the understanding about case studies as one of the research methods used in qualitative research especially in the research field of supply management. By using an example case study this article illustrates how a case study can be conducted successfully and how the validity and reliability of the research should be evaluated. The study shows that a case study as a research method is suitable for the research of supply chain management and purchasing and supply management. Because case study enables the collection of rich and profound data, an in-depth analysis of the phenomenon in question can be reached which can be highly critical for example in the development of supply relationships. The article has practical relevance especially for academic researchers in the fields of supply chain management, logistics, supply management and operations management by offering initial insights into the importance of the research process in case studies. Case studies have been criticized for the lack of rigor and thus it is important to highlight the significance of the accuracy and systematic way of action in the case research.
Changing Myopic View on Outsourcing Decision in the Manufacturing Industry: A Case from Malaysia Shankar Chelliah (Universiti Sains Malaysia, Malaysia) Jenny Teoh Aui Meng (Open University of Malaysia, Malaysia) Jayaraman Munusamy (LimKokWing University, Malaysia)
Abstract: The purpose of this study is to understand the factors influencing outsourcing decision in the manufacturing industry. Existing literature reveals that manufacturing industry face with challenges in the competitive environment with expectation to produce products at the lowest cost possible yet meet customer specification without affecting the quality and delivery schedules. Thus, outsourcing has become one of the alternative opportunities among the manufacturing firms. The theoretical framework is developed to understand four components namely operating cost, new product development, internal resources and technology, and as well as management competency as the determinants of outsourcing decision. This is a quantitative research and survey instrument was used. The questionnaire was distributed to 150 firms in Northern region of Malaysia with a response rate of 45%. The data was analyzed using regression to test the hypotheses. The findings showed that capital investment, latest technology and high efficiency becomes the key determinants for outsourcing decision among the manufacturing firms. It poses some implications for managers and policy makers.
Virtual Network for Diamond Supply Chain in Thailand Duangpun Kritchanchai (Mahidol University, Thailand) Tuanjai Somboonwiwat (King Mongkuts University of Technology Thonburi, Thailand)
Abstract: Gems and Jewelry industry is one of the growing industries in Thailand. Not less than 17.7% of the exporting value from this industry is from diamond. Approximately 70% of total exporting diamonds are polished diamond. With the reputation of “Bangkok Cut”, the exporting rate seems to grow rapidly. However while we enjoy the export growth of these gems, the value add to diamond jewelry is still low. An attempt is made in this study to investigate the whole supply chain from rough cut diamond to polished diamond and to diamond jewelry. The diamond supply chain is modeled by SCOR model. Problems in the chain are reflected. It is found that Thailand has a potential to become the diamond exchange centre of the region. Surprisingly, the idea of value chain for gems to jewelry cannot be achieved. Instead, we test the solution of Virtual supply chain via E-marketplace. The architecture of this virtual exchange network is proposed. The strategy enforcing this network is then positioned.
Operations and Supply Chain Management: An International Journal - Editorial of Special Issue Dimitris Folinas (Alexander Technological Educational Institute of Thessaloniki, Branch of Katerini, Greece) Dimitris Aidonis (Alexander Technological Educational Institute of Thessaloniki, Branch of Katerini, Greece)
Abstract: This special issue has followed up the 1st International Conference on Supply Chains held at October 1-2, 2010, in Katerini, Greece. More than 400 attendances, 100 presenters of research papers, and 6 keynote invited speakers, have participated in the 2-Days Conference that it has been embraced positively by the academic and business community. 80 research papers of them went into the review process (20 had to be either rejected at an early stage, because of a lack of relevancy to the conference topics or presented as posters). Then, each of the 80 papers was reviewed by a minimum of two reviewers. In total 160 reviews were collected in a double-blind review process. Finally, 10 papers were accepted and submitted for the final review process in order to be published at the OSCM International Journal.
A Decision-Making Framework for the Optimal Selection of Suppliers C. Keramydas (Aristotle University of Thessaloniki, Greece) A. Xanthopoulos (Aristotle University of Thessaloniki, Greece) D. Aidonis (Alexander Technological Educational Institute of Thessaloniki, Branch of Katerini, Greece)
Abstract: As supply chains continue to globalize, the need for robust supplier qualification and supplier selection and evaluation programs becomes increasingly critical. In this context, this paper aims to present a methodological approach for the optimization of the procurement processes in today’s globalized supply chains. More specifically, we first provide a categorization of the relevant past research efforts, and then propose a generic methodological framework for the supplier selection and supplier evaluation problem. This framework is constituted by a five phased conceptual decision-making methodology that outlines the whole life cycle of the supplier selection and evaluation processes. In addition, we provide a new analytical goal-programming model for the initial selection and the periodic re-evaluation of suppliers in today’s globalized environment. This mathematical programming model is based on newly developed and integrated real world supplier quality indices.
Base-Stock Policies for Two and Three Stages Serial Inventory Systems with Stochastic Demand and Replenishments D.D. Ntio (University of Aegean, Chios island, Greece ) M.J. Vidalis (University of Aegean, Chios island, Greece )
Abstract: In this paper the impact of pure base-stock replenishment policies on performance of multi-echelon supply chain networks is being examined. Specifically, we try to evaluate cycle inventory, service level, fill rate, work in process, given the replenishment policy. Serial supply chain systems are being studied; such inventory systems receive inventories from only one source and send inventories only to one receiver. The demand and the replenishment process are stochastic. The replenishment processes follow the Erlang distribution. The external demand is distributed by pure Poisson process which means that the amount that each customer asks is one unit. The supply network is modeled as continuous Markov processes with discrete states. The structures of the transition matrices of those systems are explored and computational algorithms are developed to generate them for different values of systems parameters. Mat lab software is used for any computation.
Examination of the Interrelation Among the Price of the Fuel, the Cost of Transport Freight and the Profit Margin A. Papana (Alexander Technological Educational Institute of Thessaloniki, Branch of Katerini, Greece) A. Papana (Cleveland State University, USA) M. Dagiasis (Phalanx Logistics Solutions, Logistics and Supply Chain, Cleveland, USA ) D. Folinas (Alexander Technological Educational Institute of Thessaloniki, Branch of Katerini, Greece)
Abstract: The investigation of the variation of the prices of fuel and their interrelation with the cost of hauling freight and how this effects profit margins for various freight transports (ie. carriers), is of great interest for all players in the supply chain (suppliers, manufacturers and carriers). Although supply chains may vary from country to country, the end result will help establish trends that can be used to further identify links between various markets both domestically and internationally. This paper aims to examine the interrelation of the daily price of fuel, the cost of hauling freight from various US geographic locations and the profit margin that various freight haulers may have thereof. Data for the three aforementioned variables will be analyzed over a period of 4 years. The conclusions of this work can be helpful in the cost accounting of provided logistic services from a company concerning the prices of oil, aiming to help the company check the costs and the margin of profit. The conclusion of this work will help various players in the supply chain determine how the chosen variables affect net profit.
Optimization of Recyclables Collection Processes Milorad Vidovic (University of Belgrade, Serbia) Branislava Ratkovic (University of Belgrade, Serbia) Nenad Bjelic (University of Belgrade, Serbia) Drazen Popovic (University of Belgrade, Serbia)
Abstract: In the last decade environmental concerns, legislative measures and growing public awareness about the environmental consequences of waste disposal and extraction of natural resources have led to an increase in recycling and reuse efforts. However, both recycling and reuse require appropriate reverse logistics network structure, as well as adequate realization of logistics processes in such a network. The focus of this paper is to consider the problem of waste materials collection processes, which comprises pick-up recyclables from collection points and transferring them to a recycling facility. Because the recyclables value is relatively low, realization of reverse logistics processes, particularly those related to its collection, introduces the relatively high costs. On the other side, efficient and cost effective recycling in treatment facilities requires adequate supply with collected recyclables. Therefore, having in mind experience from forward supply chain management, and potentials of joint coordination of transportation and inventory decisions, this research introduces planning methodology to optimization of recyclable collection processes. That is, our intention is to propose modeling approach that simultaneously considers collection vehicles scheduling, and recyclables inventories optimization. Furthermore, as some of recyclables could be hazardous materials, risk minimizing criterion has been also considered.
Trade Facilitation and Supply Chain Network Design Maria Chatzipanagioti (Aristotle University of Thessaloniki, Greece) Eleftherios Iakovou (Aristotle University of Thessaloniki, Greece) Dimitrios Vlachos (Aristotle University of Thessaloniki, Greece) Yannis A. Hajidimitriou (University of Macedonia, Thessaloniki, Greece)
Abstract: World trade has expanded rapidly over the past decades. Low production costs in developing countries, along with cost efficient logistics networks have led to the allocation of manufacturing plants in offshore industrial sites. However, lengthy customs’ clearance and service time delays and thus lengthy and highly variable lead times can undermine the efficiency of offshoring within global supply chain networks. Nearshoring, namely the practice of allocating manufacturing capacity next to the demand points, is a corporate response to such concerns. The purpose of this paper is to provide a quantitative strategic decision support methodology that captures the impact of the variability of order lead time demand on supply chain network design while further identifying: (i) the optimal mixture of nearshore/offshore production allocation capacity and (ii) the radius in the hinterland within which a global company can penetrate markets according to the entry point’s customs efficiency. Various "what-if" analyses are conducted in order to explore the sensitivity of the production allocation mixture and the trade-off between travel distance and customs efficiency. The usage of the proposed methodology is demonstrated through its application on an appropriately simplified problem instance, while obtained managerial insights are discussed.
Environmental Sustainability through Clothing Recycling S. Cuc (University of Oradea, Romania ) M. Vidovic (University of Belgrade, Serbia)
Abstract: This paper examines the process of achieving environmental sustainability through recycling of textile wastes. The recycling of textile waste can serve as a mean of providing solutions to many financial and environmental problems such as high cost of waste disposal and diminution of natural resources. The benefits and problems of this exercise are also highlighted. There are benefits to all three aspects that define sustainability: economical, social and environmental but there are also negative aspects too. The conclusion drawn is that the recycling of waste is of huge benefits especially in solving the numerous environmental problems and boosting the nation’s economy. To quantify potential ecological benefits and economical effects of textiles waste recycling, the paper proposes modeling framework which makes trade off between costs of reverse network for textiles waste establishing and operating, and its effects on the virgin materials consumption, land use reduction, employment increase, and resold wearable textiles earnings.
Costing Logistics Services A. Hatzis (Alexander Technological Educational Institute of Thessaloniki, Greece) A. Koulidou (Alexander Technological Educational Institute of Thessaloniki, Greece) D. Folinas (Alexander Technological Educational Institute of Thessaloniki, Greece)
Abstract: Third Party Logistics (3PL) providers’ paradigm has grown into a critical and common strategic approach, due to the benefits of the outsourcing model. Over the past two decades, 3PL’s sector has played a critical role in the Greek economy. Logistics providers have extended their scope beyond traditional transportation and warehousing activities to also include many other main logistics services such as procurement, distribution, inventory management, packaging, and order processing services. In the services-oriented business sector (in general) the realization of the true costs of the provided services is a critical success factor. Specifically, a 3PL company by assessing the costs of services can confidently pursue the logistics objective of providing desired customer service at the least total cost. This paper presents and evaluates the costing systems that the 3PL’s companies have used. It is based on a survey that is focused on logistics providers in Northern Greece. This survey aimed at first to identify the adopted costing system, to assess its significance for both the provision of services and the designing - redesigning of services’ portfolio, to estimate the degree of satisfaction by top managers, and to recognize the problems regarding the existing costing system such as the non-value added logistics services.
City of London 2007-2010 Green Public e-Procurement Project-Results & Perspectives R.N. Lacroix (National School of Public Administration, Athens, Greece) L. Laios (University of Piraeus, Greece) S. Moschuris (University of Piraeus, Greece)
Abstract: After years lagging behind Scandinavian and other European Cities, in 2007, the city of London took the courageous initiative to transform itself from a follower to a leader and advocate of Green Public Procurement. In this paper, now that enough data is available, we present how the 2007-2010 Green Public e-procurement project was structured; the goals, accountabilities, results of the procurement portfolio-analysis, the significance of business transformation with e-procurement, the local performance Indicators which were used and the initial spend results of the project. Looking forward, reference is made to planed actions since 2009, regarding the future implementation of European Green Procurement directives and best practices from the supply-chain domain. Today, Green Procurement is the central core of the new centrally managed public e-procurement strategy of the city of London which promises to yield significant cost savings and improved efficiencies in the 2010-2013 timeframe.
Simulating the Effects of Risk Occurrences on a Hazardous Material Transportation Model Vasiliki Kazantzi (Technological Education Institute of Larissa, Greece ) Nikolas Kazantzis (Worcester Polytechnic Institute, Worcester, MA, USA) Vassilis Gerogiannis (Technological Education Institute of Larissa, Greece )
Abstract: The present paper explores the effects of different risk incidents on a Transportation Model developed for HazMat (Hazardous Materials) shipments. The particular objective of this study is to elucidate the effects of occurrence probabilities of the different risk events on the transportation model featuring total transportation cost. First, the present research study addresses the problem of identifying and evaluating various risk factors that influence the HazMat transportation network. Next, a modeling framework for HazMat transportation is proposed as a special case of the traditional transportation network in the presence of risk-informed safety constraints that need to be satisfied. A comprehensive characterization of the underlying risk profile that is probabilistically realized through appropriately conducted Monte Carlo simulations that capture the effect of underlying irreducible uncertainties associated with the main risk-drivers is followed by the proposed solution approach to the corresponding minimum cost flow network problem while reducing risks at the desired levels. In order to examine the impact of the occurrence possibilities of different risk events on the transportation model, appropriate parameterized simulation work is carried out, resulting in identifying release probability zones and safe network configurations that correspond to certain low-risk levels and degrees of risk-related uncertainties. These simulation studies help making informed decisions on optimal transportation configurations for ensuring safety in hazardous material shipments. Finally, the presented methodological framework demonstrates its potential usefulness in making risk-informed decisions while transporting goods and classes of materials that can be potentially proven dangerous to public health and ecosystem functions.
The Impact of 360o Supply Chain Integration on Operational and Business Performance D. Chatzoudes (Democritus University of Thrace, Greece) P. Chatzoglou (Democritus University of Thrace, Greece)
Abstract: Supply chain integration has been a topic of significant academic interest in the operational research discipline for the last few decades. Several scientists have conducted surveys investigating its relationship with operational and / or business performance. The present paper aims to explore supply chain integration on a 360 degree radius, thus, suggesting a Conceptual Framework that accounts for all aspects that have been neglected by most researchers. The introduction of the terminology “3600 supply chain integration” is being attempted on the basis of a literature review that accumulated measures and concepts used in the past into a holistic Conceptual Framework that aims to provide a guideline towards integrating the supply chain processes of a company. The examination of the proposed Conceptual Framework was made with the use of a structure questionnaire. The questionnaire was distributed to a group of Greek manufacturing companies. The empirical data were analyzed using the “Structural Equation Modelling” technique. Results offer both theoretical and empirical evidence.
Factors Affecting International Transfer of Kaizen Kodo Yokozawa (University of Twente, The Netherlands) Harm-Jan Steenhuis (Eastern Washington University, USA) Erik-Joost de Bruijn (University of Twente, The Netherlands)
Abstract: So far, the literature on the international transfer of kaizen is inconclusive with regard to what influences successful transfer. The purpose of this study is to contribute to the literature by studying the influence of organization structure and culture. Furthermore, since kaizen is ambiguously used, another purpose it to determine whether personal initiative is related to kaizen. The study was interview oriented and conducted at Japanese subsidiaries in the Netherlands. The results indicate that organic structures and clan-oriented cultures are the best for kaizen transfer whereas hierarchical cultures are not conducive to successful kaizen transfer. Furthermore, it was found that personal initiative is positively correlated with kaizen.
An Exploratory Study on the Critical Success Factors for Design Capabilities Development Ana Sakura Zainal Abidin (Universiti Malaysia Sarawak) Rasli Muslimen (Universiti Malaysia Sarawak) Rosnah Mohd Yusuff (Universiti Putra Malaysia) Norzima Zulkifli (Universiti Putra Malaysia)
Abstract: Involvement of suppliers in product development (PD) has made the process leaner and contribute significant impact on the quality, cost and time to market. The suppliers have major influence on the cost and quality of the products, since suppliers account for more than half of the total cost of production. The roles of suppliers have become more important especially those who are involved in PD. The suppliers are able to improve business performance results, productivity, and reputation, thus increasing companies’ competitive advantage. To be successful in PD requires certain level of design capabilities (DC), thus huge investment is needed. However, Malaysian automotive market size is considered small and vendors’ capabilities are also limited. Since, studies on vendors’ DC, particularly, in Malaysia are very limited. An empirical study was conducted to explore on the critical success factors (CSFs) in enhancing vendors DC for Malaysian automotive industry. A series of interviews were conducted on selected automaker and vendors to identify critical success factors (CSFs) that are able to enhance the DC development for Malaysian vendors. There are 10 significant CSFs have been highlighted namely human resource, technology and tools, established processes, financial, culture, technical assistance, prospect market, proximity, top management and focus. The identified CSFs will be considered in developing model of DC development for Malaysian automotive vendors.
Nurturing Internal Supply Chain Integration Chuda Basnet (The University of Waikato, New Zealand) Joel Wisner (University of Nevada, Las Vegas, USA)
Abstract: A firm’s internal supply chain refers to the specific value-creating functions within the organisation, such as production, sales and distribution. Previous research has shown that these functions need to work together to achieve high levels of firm performance. However, the means to achieve this integration of internal supply chain functions have not received much attention in the current literature. In this paper, we review the published literature on internal supply chain integration and report on empirical research, which we conducted to test various antecedents of integration. Results from our survey indicate that line managers are able to improve functional integration by fostering a positive attitude towards other departments. Integration appears also to be enhanced by making departments jointly accountable for achieving company goals.
Strategic Positioning of the Push-Pull Boundary within a Supply Chain: An Ordering Policy Co-ordination Perspective N. K. Dev (Dayalbagh Educational Institute, India) R. Caprihan (Dayalbagh Educational Institute, India) S. Swami (Dayalbagh Educational Institute, India)
Abstract: The rapid advancement in IT communication enables the availability of demand data in a seamless manner. One manifestation of this technological advancement within the supply chain (SC) domain has been the emergence of a push-pull boundary (PPB). Push-pull boundary is a virtual demarcation point separating the portion of the SC under decentralized from that operating under centralized information sharing. However, the impact of key issues like adoption of inventory ordering policy characterized by the various echelons of a SC network structure while positioning the push-pull boundary need to be investigated comprehensively (Ahn and Kaminsky, 2005). This paper is concerned with the ‘Average Fill Rate’ and ‘Average Total Inventory Cost’ performance behaviour of a SC network structure. These performances typically results from different parameters that involves: (i) inventory ordering policy, (ii) push-pull boundary under the influence of information sharing, (iii) forecasting error, and (iv) lead time and their standard deviations. The study is accomplished via Taguchi experimental design framework and simulation analysis. The results suggest the effect of various factors on SC network system wide performance and identify the appropriate combinations of these factors for optimal performance concerned.
A Note on Extension of a Bernoulli Demand Inventory Model Pritibhushan Sinha (Consultant (Operations Management & Research), India)
Abstract: We consider the inventory model with Bernoulli demand pattern that has been discussed in this journal earlier (Sinha, P. (2010). Extension of a Bernoulli Demand Inventory Model. Operations & Supply Chain Management: An International Journal 3(1), pp. 30-35). We give a correct analysis for the model, removing the mistakes in that article. We give a search method to obtain an optimal solution exactly. The method is verified in a numerical experiment.
Developing a Framework for the Identification and Analysis of the Strategic Resources and Capabilities in Supply Chains Javad Feiz Abadi (Malaysia Institute for Supply Chain Innovation, Malaysia) Carlos Cordon (International Management Development, Switzerland)
Abstract: A fundamental challenge in the resource-based view (RBV) research is the identification of strategic resources and capabilities, whether they lie within a firm’s boundaries or in its supply chain. RBV theorists regarded the identification of the strategic resources as the first step in the analysis of the resources, followed by development/maintenance of the resources and finally their deployment. Some authors developed frameworks for the analysis of strategic resources within a firm’s boundaries. Many believe that a firm’s strategic resources and capabilities are not limited to the firm’s boundaries, extend its network. In this paper, we classify supply chain resources and capabilities into two categories: internal resources and capabilities (based on RBV) and relational ones (based on RV). We then develop a framework for the identification and analysis of these resources and capabilities and apply it to the supply chain resources and capabilities of two automobile manufacturing companies in Iran.
Multi Attribute Decision Making Based on Fuzzy Logic and Its Application in Supplier Selection Problem Supratim Mukherjee (National Institute of Technology, Durgapur, India) Samarjit Kar (National Institute of Technology, Durgapur, India)
Abstract: It is a complex situation when a decision is to be made under uncertainty. The uncertain information has been treated mathematically in the literature from different angles. This paper presents a novel method towards this problem based on fuzzy sets. The approach is constituted using distance between triangular fuzzy numbers. The proposed approach allows decision makers (DMs) to evaluate and improve supplier selection decisions in an uncertain situation. Finally, a numerical example on the supplier selection problem is proposed to illustrate an application of the methodology.
Order Acceptance Decision in Make-to-Order System: Satisfaction Level Based Approach Piya Sujan (Sultan Qaboos University, Sultanate of Oman) Takahashi Katsuhiko (Hiroshima University, Japan) Morikawa Katsumi (Hiroshima University, Japan)
Abstract: In make-to-order (MTO) system, deciding which order to accept and which to reject from an incoming orders is one of the most challenging tasks for the decision maker (DM) of manufacturer. When the new order arrives, order acceptance (OA) decision is affected by two kinds of satisfaction level. One is the satisfaction level expected by the DM. This level indicates the acceptance threshold of DM. Next is the satisfaction level that will be generated by the order. In this paper, we propose a method that reflects OA decision as interplay between the DM’s acceptance threshold and satisfaction level generated by the order. We investigate this less researched topic in a job shop environment with uncertain scenario. In the proposed method, the DM’s acceptance threshold is shown to be the function of workload in the production system and their aggressiveness. While, we consider four criteria to access the satisfaction level generated by the order. They are reputation in terms of delivery reliability, profit both at present and in the future and the utilization of available capacity. We present a numerical analysis by considering various parameters under two different cases of due dates to demonstrate the working mechanism and effectiveness of proposed method.
A Note on Non-linear Profit-Maximization Entropic Order Quantity (EnOQ) Model for Deteriorating Items with Stock Dependent Demand Rate Monalisha Pattnaik (Utkal University, India)
Abstract: A new type of non-linear profit maximization replenishment policy is suggested in an entropy order quantity model for deteriorating items with stock dependent demand rate. This model represents an appropriate combination of two component demand with entropy cost, particularly over a finite time horizon. Its main aim lies in the need for an entropic cost of the cycle time is a key feature of specific perishable products like fruits, vegetables, food stuffs, fishes etc. To handle this multiplicity of objectives in a pragmatic approach, entropic ordering quantity model with two component demand of perishable items to optimize its payoff is proposed. Two non-linear profit-maximization models are formulated by considering the effects of entropy cost and without entropy cost. Finally to clearly illustrate the non-linear profit maximization EnOQ model a numerical example and the sensitivity analysis are also conducted in the optimal solutions when different parameters are changed. It is considered that if the entropy is allowed in the model, the profit is approximately less in comparison to the non entropic model but the order quantity is more in EnOQ model. In addition, a comparative analysis between the profit-maximization models is conducted.
A Framework for Healthcare Supply Chain Improvement in Thailand Duangpun Kritchanchai (Mahidol University, Thailand)
Abstract: Logistics and supply chain management has become a competitive tool in many industries in Thailand. Supply chain perspective has led the industry to see through the process integration from upstream to downstream. In Thailand, healthcare supply chain has only been introduced to hospitals. Operations and co-ordinations across players have still been neglected. The supply chain concept for this industry is in a very early stage. It is evidenced that healthcare industry in Thailand still suffers from inefficient process, inconsistent and inaccurate data information. Lacking of transparency throughout the chain makes it difficult to track and trace patient data and product data. Furthermore, each player in healthcare supply chain, manufacturers, wholesalers, distributors, healthcare providers, tends to develop its own data communicating language. Therefore it discourages the player to communicate and share information with its partner. The lack of integrity in supply chain has become a facilitating factor for the growing problem of counterfeiting. It is undeniable that an influx of counterfeit drug affects both public and private sectors negatively. This problem not only leads to economic loss but also has a negative impact on patient safety in Thailand. The purpose of this paper is to review problems that occurred in healthcare area regarding to supply chain management and identify challenges. It is found that standardised drug coding, operational re-engineering and implementing information technology are promising performance improvement in healthcare supply chain. The paper develops a framework for healthcare supply chain improvement in Thailand. It urges both policy makers and implementers to realize national health problems as well as identify rooms for further research and improvement.
International Outsourcing of Research and Development: A Model of Leadership and Culture Cliff Allen (Portland State University, USA) Harm-Jan Steenhuis (Eastern Washington University, USA)
Abstract: As innovation has been outsourced globally, it has joined manufacturing organizations consisting of diverse cultures, geographies, and partnerships. The use of third-party resources to manage design and innovation has resulted in a new system of knowledge management. As the industry’s organizational and financial boundaries have attenuated, a new type of leadership challenge has emerged, creating the research question: Are there leadership practices or styles that effectively guide organizations that rely on the outsourcing of innovation and manufacturing to Taiwan and China in the computing industry? A qualitative case study method was used to investigate the differing leadership practices applied within a dialectic global production network in which a system of innovation and manufacturing has emerged. The analysis considers a full range of leadership behaviours used when facing the challenges of outsourcing R&D.
Risks and Risks Mitigations in the Supply Chain of Mangosteen: A Case Study Retno Astuti (University of Brawijaya, Indonesia) Marimin Marimin (Bogor Agricultural University, Indonesia) Machfud Machfud (Bogor Agricultural University, Indonesia) Yandra Arkeman (Bogor Agricultural University, Indonesia)
Abstract: Mangosteen (Garcinia mangostana L.) is the highly demanded fruit for export commodity from Indonesia. The biggest mangosteen production center in Indonesia is West Java Province. The development of the mangosteen supply chain in Indonesia, particularly in West Java Province is heavily affected by uncertain potential risks for the chain. This paper identifies potential risks of the supply chain and studies the interrelationships between strategies for mitigating those risks. Fuzzy Analytical Hierarchy Process (AHP) was utilized to identify the main risks then Interpretive Structural Modeling (ISM) was used to illustrate the interrelationship of those risks mitigations. Data were gathered through questionaires guided interviewing the experts of mangosteen business. Results show that the main risks of the chain to reach its goal are business relationships between partners and return on investment uncertainty. Horizontal coordination and trust building between partners should be considered to mitigate those risks as these strategies are found to have a strong driving power to influence others risks mitigation strategies. Improved coordination and trust building may advocate the Indonesian government to facilitate the provision of soft loans to agricultural businesses, which enables the farmers’ cooperative to buy mangosteen in cash therewith improving their return on investment.
Evaluation of Lead Logistics Provider Using the SMART Process: A Case Study in a Taiwan Automotive Industry Jheng-Dan Huang (Yuan Ze University, Taiwan) Michael H. Hu (Yuan Ze University, Taiwan) Hui-Ming Wee (Chung Yuan Christian University, Taiwan)
Abstract: Taiwan’s automotive industry has undergone tremendous changes during the past decades as a result of joining the World Trade Organization (WTO) in 2002. This membership has affected the operating costs and the competitive advantage of automotive companies. The selection of an effective logistics service provider is a key strategy to reinforce competitiveness. This type of selection is a multi-attributes decision-making problem that includes both qualitative and quantitative attributes. This study presents a comprehensive methodology for evaluating a lead logistics provider (LLP). The evaluation of an LLP is the precondition and foundation of logistics operation; it is the important task of choosing the best logistics service provider for logistics management. The proposed methodology consists of 2 parts: (a) using a decision-making analysis framework to structure the objective hierarchy and to identify the evaluation attributes; and (b) applying the simple multi-attribute rating technique-rank order centric (SMART-ROC) method to drive the weights by ranking and rating. After they are identified, the evaluation attributes are used to construct a SMART model. This SMART model is subsequently applied for the final evaluation of a provider, as demonstrated in the case study presented here. The results of this case study indicate that quality is the most important criterion for the user and the provider companies because this factor influences the final evaluation process. The proposed method also enables decision makers to understand the complex relationships between relevant attributes, thereby improving the reliability of their decisions.
Investigating Supply Chain Management Practices in Iranian Manufacturing Organizations Changiz Valmohammadi (Islamic Azad University-South Tehran Branch, Iran)
Abstract: The aim of this article is threefold, firstly to investigate the extent of supply chain management (SCM) practices implementation in Iranian manufacturing organizations, secondly, given contextual factors of the country to identify benefits and barriers of SCM implementation and thirdly, to survey if there is any relationship between SCM practices and organizational performance of Iranian manufacturing organizations, mainly based on a descriptive analysis. Based on the review of literature main practices and also benefits and barriers of SCM implementation was identified. A self administered questionnaire was designed and distributed among 127 logistics and manufacturing managers of Iranian manufacturing organizations, of which 97 complete questionnaires returned, yielding a response rate of about 76 percent. Through descriptive statistical analysis the extent of SCM practices, main benefits and barriers in the surveyed organizations and their ranking orders were determined. Results revealed that holding safety stock is the most implemented practice of SCM. Also, increased customer satisfaction and inadequate information sharing in the chain were ranked as the major benefit and barrier of SCM implementation respectively. The result of chi-square test showed that the implementation of SCM practices is positively and significantly related to organizational performance of Iranian manufacturing companies.
Truck Drivers – The Under-Respected Link in the Supply Chain : A Quasi-Ethnographic Perspective Using Qualitative Appreciative Inquiry Alvin J. Williams (University of South Alabama, USA) Babu P. George (NITTE, India)
Abstract: Long-distance truckers are the lifeblood of complex supply chain networks. Thus, it is important to analyze ways to enhance the efficiency and effectiveness of these professionals. In particular, what factors contribute to their job satisfaction, quality of life, and overall success? These questions are partially answered in this study using the framework of appreciative inquiry to construct a comprehensive sketch of the day-to-day lives of long-distance truckers. While other aspects of the supply chain have been studied extensively, relatively less research has been directed toward understanding the nuances of the trucking way of life. The current paper offers some partial solutions, research directions, and managerial guidance.
To Evaluate Cost Savings in a Supply Chain : Two Examples from Ericsson in the Telecom Industry Annelie I. Pettersson (Lulea University of Technology, Sweden) Anders Segerstedt (Lulea University of Technology, Sweden)
Abstract: An accurate cost analysis is necessary to evaluate changes in a supply chain; this article shows how a rather simple framework can be used when evaluating changes in a supply chain. The framework is built on a Supply Chain Cost (SCC) model and customer service measurements, delivery precision and lead-time. Both suggested changes in a supply chain and already executed changes can be evaluated by the framework. Two different examples from the company Ericsson are presented to illustrate the framework, which is a 5 step analysis model. The existing, or pre-existing, supply chain is analysed, described and defined. The SCC and performance measures are mea-sured and/or estimated. Improvements are designed and defined. The same measures as before are measured again. The measures from before and after the change of the supply chain are evaluated to decide if the changes are improvements or not. Cutting costs in one area of the supply chain can be a mistake if not the total supply chain is considered and the total SCC. Considering both the SCC part and customer service measures present a wider understanding of the change. It is shown that SCC can be used as a tool to identify cost savings and evaluate if a change project will, or has, resulted in the cost savings the project aims for. Rough standard costs measures should be avoided instead actual costs should be used as much as possible. The used framework hopefully stimulate to similar analyses in other companies with other supply chains.
Stock Pre-positioning Model with Unsatisfied Relief Demand Constraint to Support Emergency Response Prudensy Febreine Opit (Nagoya Institute of Technology, Japan) Woon-Seek Lee (Pukyong National University, Korea) Byung Soo Kim (Incheon National University, Korea) Koichi Nakade (Nagoya Institute of Technology, Japan)
Abstract: Stock prepositioning is one of the most important issues in preparedness stage of emergency logistics response. In a previous research, a stock prepositioning model to support an emergency disaster relief response in the event of earthquake has been proposed. Since the results contained zero proportion of some type of item, which is not allowed in a real system, an improvement of the model is needed. Hence, in this paper we focus on how to prevent the result of zero proportion of a single item type stored in distribution centers, which is the proportion of relief demand satisfied of disaster areas. We propose a new model by adding new variable of proportion of unsatisfied relief demand. Thus, we apply this model to a real case with 33 disaster areas and 16 distribution centers in Indonesia. Finally, the sensitivity analysis is performed to show the effect of different upper bound of the proportion of unsatisfied relief demand.
Joint Replenishment Problem in Multi-Item Inventory Control with Carrier Capacity and Receiving Inspection Cost Keisuke Nagasawa (Sophia University, Tokyo, Japan) Takashi Irohara (Sophia University, Tokyo, Japan) Yosuke Matoba (Fairway Solutions Inc.) Shuling Liu (Fairway Solutions Inc.)
Abstract: In the present paper, a multi-item inventory problem with the capacity to replenish carriers is considered. In the present study, we propose a model that considers truck capacity, truck cost, and receiving inspection cost with inventories and shortages in inventory management simultaneously. A number of studies have examined the minimum total cost while considering the ordering cost as fixed and not considering the carrier capacity or receiving inspection cost. However, we consider the stepwise ordering cost, which changes in a stepwise manner according to the ordered quantity and the capacity of the carrier. In addition, we consider a receiving inspection cost that is defined not only by ordered quantity but also by ordered item variety. The problem considered herein was formulated as a mathematical programming problem in a finite planning period, and valid inequalities were considered. We could consider individual objective functions for ordering, holding, lost sales, and receiving inspection cost together. We can observe that the receiving inspection cost could be reduced by aggregating the order quantity.
Supply Chain Collaboration and Trust in the Philippines Ma. Gloria V. Talavera (University of the Philippines )
Abstract: This paper presents the relationship between supply chain collaboration and trust, two important concepts in supply chain management. The transaction costs and stakeholder theories were used as frameworks in analyzing supply chain collaboration and trust. These constructs were developed through literature review and in consultation with industry experts. Factor analysis was conducted to identify the underlying dimensions of these constructs while correlation analysis was done to determine their association. A total of 57 companies from Philippine manufacturing and service sectors participated in the study. From the factor analyses, two important dimensions of supply chain collaboration emerged: (1) joint planning and decision making and (2) information sharing. The trust construct, on the other hand, revealed two important perspectives: (1) relational perspective (the long-term relationship of the supply chain partners and their familiarity with their respective organizations) and (2) risk perspective (the propensity and willingness to take risk under conditions of uncertainty). Correlation analyses reveal that information sharing, a measure of supply chain collaboration, is significantly correlated with the relational perspective of trust. The study contributes to the supply chain management (SCM) literature by providing comprehensive and pragmatic definitions of supply chain collaboration and trust. It also provides practitioners with a listing of SCM strategies that they can employ to achieve better collaboration.
Remanufacturing of Short Life-cycle Products Shu San Gan (Petra Christian University, Indonesia) I Nyoman Pujawan (Sepuluh Nopember Institute of Technology, Indonesia)
Abstract: Rapid development and innovation in science and technology have resulted in shorter product life-cycle, especially in technology-based commodities like mobile phones and computers. Mounting wastes from such products have received increasing attentions from government, society, as well as industries for sustainability concerns. Numerous studies on remanufacturing have been found on durable goods, but only a few focusing on short life-cycle products. Even though several studies implied that successful remanufacturing requires products to have long useful life and stable technology, there are other findings that support remanufacturing of short life-cycle products. It is our intention to investigate remanufacturing of short life-cycle product. A literature review is conducted to study the pros and cons, life-cycle implication, and remanufacturing aspects of short life-cycle products. Then we propose a framework that can be used to decide and plan the remanufacturing system. Furthermore, we conduct a survey to obtain descriptive analysis about the market potential for remanufactured short life-cycle products. The factors investigated are existence of demand, customer’s willingness to pay (WTP), and existence of green segment. The survey results show that low-end customers are the potential market segment for short life-cycle remanufactured product, because they have the highest preference toward remanufacturing and 95% of them chose remanufactured product when the price is less than 40% of new product. It is also shown that green segment exists since 42%, 65%, and 47% of customers from high-end, low-end, and student sub-group respectively consider buying remanufactured products over new ones driven by their concern for the environment.
Supply Chain Management Integration: Critical Problems and Solutions Kabossa A.B. Msimangira (Northern Melbourne Institute of TAFE , Australia) Sitalakshmi Venkatraman (Northern Melbourne Institute of TAFE , Australia)
Abstract: Over the last decade, supply chain management (SCM) has been studied extensively, and its importance to practitioners and academics has received a high level of recognition. However, despite major investments in SCM and supply chain integration (SCI), recent surveys indicate that businesses are struggling to achieve competitive advantage due to SCI silos. This urges us to investigate the emerging concept of SCM integration (SCMI) that is aimed to integrate various traditional supply chains (SC) across intra and inter-organisational processes in practice. While there is enormous information on SCM, little is known about the supply chain management integration (SCMI) problems and possible solutions that could be identified through open discussions and brainstorming among management executives of various organisations. This paper presents the results of an exploratory study of SCMI practices via an on-line forum conducted with supply chain personnel in New Zealand. This study identified the organisations’ SCM integration problems and possible solutions. The analysis reveals the major problems that are critical to be addressed and the recommended solutions, including: SCMI requires a holistic approach; two-way communication; written service level agreements; relationship management; use of new technologies and integrated software systems; strategic alliances and trust; integrated processes; effective partnership; and predictive cost/benefit analysis of SCM. The insights on the critical problems and solutions provide valuable information on business risks and uncertainty as well as recommendations to effectively employ SCM analytics for sustainability in the global market environment. We developed a SCM analytics framework for SCM integration.
Optimization of Inventory for Two Level Multiple Retailers-Single Manufacturer Reverse Supply Chain P. Chandiran (Loyola Institute of Business Administration, India)
Abstract: This paper deals with modelling of deteriorating used products inventory in a two level reverse supply chain. A time dependent optimisation model is developed for multi-retailer single manufacturer reverse supply chain involving collection and disposal of used products from customers. Collection rate or supply is assumed to exponential with time and time dependent deterioration of items is considered. Two cases are presented with one on decentralised policy optimizing retailers and manufacturer’s cost separately and another on centralised policy optimizing system wide cost. The optimal collection and disposal cycle times are derived and discussed with numerical example. The model has potential to be used in industries where existing distribution system is used for end-of life products collection and disposal.
Supply Chain Management Practices in Printing Industry G.V.R.K. Acharyulu (University of Hyderabad,India)
Abstract: The Indian Printing Industry is well established and presently growing at 12% per annum. According to NPES/PRIMIR (2006) report, there are more than 8000 daily newspapers published in India, besides a large number of weekly and fortnightly periodicals published in all Indian languages. The Indian Printing Industry today comprises more than 250,000 big, small and medium printers. Business models and technology strategies of SCM need to be monitored very closely to adopt changes in the print supply chain environment. This paper is to examine supply chain management practices, issues, role of information technology in printing industry. A convenient sample of 70 companies/individuals from operations department was selected with a questionnaire for conducting survey. This sample ranges across printing companies, publishers, material suppliers like paper, ink, etc., from the population of around 2500 companies in around Hyderabad. In addition to data collection through a questionnaire, inter-actions carried out with material suppliers and the customers or the print-buyers to find out how they operate, and seek their opinion on the practices being followed and to know their expectations in efficiently managing the operations of print supply chain. The paper is to make a small attempt to understand the advantage of adopting information technology solutions in printing industry for a seamless information flow across entire value chain, so as to operate efficiently by reducing cost.
A Fuzzy AHP Approach for Supplier Selection Abhijeet K. Digalwar (BITS Pilani, India) Atul Borade (JDIET Yavatmal, India) Bhimaraya Metri (IMI New Delhi, India)
Abstract: Supplier selection is an integral part of supply chain management in any organization which is directly responsible for its success in market and if we see today’s highly competitive environment then it is pretty much difficult to find an effective and efficient supplier which can fulfill all organization’s need as required. Though there has been extensive research in supplier selection and quality management, but there has been less research in supplier selection/ evaluation under various conflicting/dependent criteria and sub criteria. To overcome this issue, Fuzzy-AHP a multi criteria decision making approach is proposed. This allows the decision making in fuzzy environment to rule out the error caused due to vagueness in human thoughts.
Development of HospitalQual: A Service Quality Scale for Measuring In-patient Services in Hospital Ramaiah Itumalla (University of Hyderabad, Hyderabad, Telangana State, India) G.V.R.K Acharyulu (University of Hyderabad, Hyderabad, Telangana State, India) B. Raja Shekhar (University of Hyderabad, Hyderabad, Telangana State, India)
Abstract: Service quality has become a major concern for both the hospitals and the patients. The increase in competition coupled with the increased patients’ perception of service quality makes it difficult for hospitals to provide services that meet patient satisfaction. Recognition of the importance of service quality is the need of the hour in order to provide better services to the patients. The objectives of the present study are to identify the critical factors of inpatient service quality in a hospital and to develop the HospitalQual theoretical model to measure inpatient service quality. The present study was explorative and descriptive in its nature. An empirical study was conducted in a public hospital located in Hyderabad, India. The data was collected through a self administered questionnaire from 246 in-patients with a purposive sampling technique. The statistical techniques such as factor analysis and the multiple regression were used in the data analysis. The study has identified the factors to measure the inpatient service quality and developed a comprehensive instrument i.e. “HospitalQual” with seven dimensions, namely; medical, nursing, support, administrative services, patient safety, communication and hospital infrastructure. In addition, the supportive services are found to be the most important factor to predict the overall inpatient service quality, followed by nursing services, administrative services, medical services, patient communication patient safety and hospital infrastructure. The application of HospitalQual would help to identify the gaps in each of the dimensions over a period of time and enable hospital administrators to monitor, control and improve the inpatient service quality in a hospital.
An AHP Model Approach to Supply Chain Flexibility: A Case Study of Indian FMCG Firm Rohit Kr Singh (ABV Indian Institute of Information Technology & Management, Gwalior, India) P. Acharya (ABV Indian Institute of Information Technology & Management, Gwalior, India)
Abstract: The current business environment is becoming increasingly uncertain, unpredictable and turbulent. Organizations always keep themselves ready to face any eventuality. Flexibility is one of the ways to cope up with uncertainty. Supply chain flexibility refers to the ability to change the supply chain system as per the current business need. The purpose of this paper is to identify the stage of supply chain which can help enhance its overall flexibility. Dimensions of supply chain flexibility are extracted from extant literature and their importance in the three stages of supply chain has been analysed based on the responses received during a survey carried out in an FMCG firm. An analytic hierarchy process (AHP) model has been developed. In this study 14 dimensions of supply chain flexibility are considered and these are grouped under the inbound, in-house and outbound stages of supply chain.
Examining the Structural Relationships of Service Recovery, Customer Satisfaction and Image in Online Retailing Suresh Kandulapati (School of Management Studies, University of Hyderabad, India) Raja Shekhar Bellamkonda (School of Management Studies, University of Hyderabad, India)
Abstract: This study proposes and tests a structural model to examine the interrelationships among service recovery, customer satisfaction and image in the context of online retailing in India. The study adopts and validates E-RecS-QUAL scale to measure online service recovery. Factor analysis and structural equation modelling (using SPSS and Amos) are applied to test application of the proposed model. Analysis of an online survey data from 140 online retail customers reveals that the service recovery has a significant direct and indirect effect on both customer satisfaction and image. The study highlights mediating role of customer satisfaction in the relationship between online service recovery and image. The study helps e-retailers/e-commerce industry to understand customer perception of e-service recovery in India.
Knowledge Management and Supply Chain – A study in Indian Perspective Viqar Ali Baig (Lingayas University, Faridabad, Haryana, India) Javaid Akhter (Management Studies and Research AMU Aligarh, India) Mohd Shahid (Mewat Engineering College Haryana, India ) Akeel ur Rehman (Department of Commerce AMU Aligarh, India )
Abstract: SC management has assumed a leading operations strategy position in both manufacturing and service industries, and over the years enterprises have sincerely implemented SC management strategies in their enterprises. Knowledge Management (KM) is a major source of empowerment of SC management, and is a vital element in information intensive and multi-cultured enterprise environments. Realizing the importance of KM in Supply Chain (SC), an effort has been made in this paper to suggest a theoretical framework for KM in SC and to authenticate the frame with the help of an experiential study conducted with Indian enterprises. The majority of participants solicited for this study work in the private sector (medium and large enterprises in the Delhi/NCR region of India). The respondents in this survey are: logistics managers, SC managers and engineers. There is a need to clearly integrate SC network parameters and variables into any final KM model or framework. The results then would supply a more suitable KM framework for improving SC competitiveness.
The Measurement Model of Supply Chain Uncertainty and Risk in the Australian Courier Industry Michael Wang (RMIT University, Melbourne, Australia) Ferry Jie (RMIT University, Melbourne, Australia) Ahmad Abareshi (RMIT University, Melbourne, Australia)
Abstract: Courier is a booming industry in today’s world. Courier company is one of the most significant 3PLs modules. With the development of globalisation, e-business, shorter product and technology life cycles and higher customer expectations, courier service providers face more supply chain uncertainty and risk than ever before. The supply chain uncertainty and risk has significant impacts on logistics performance in the courier service providers. Uncertainties and risks are interchangeable and inseparable. Moreover, in a real world environment, managers have to face and manage both supply chain uncertainty and risk simultaneously. The purpose of this paper is to present the results for development of an empirically validated measurement of supply chain uncertainty and risk in the Australian courier industry. The empirical data was collected in the Australian courier industry. A measurement model of structural equation modelling is used to identify the underlying factors of supply chain uncertainty and risk in the Australian courier industry. They are (1) company-side uncertainty and risk, (2) customer-side uncertainty and risk, and (3) environment uncertainty and risk. The results indicate high levels of reliability and validity of the measurement. This measurement model contributes to the supply chain uncertainty and risk literature. In addition, it provides an insight into assess supply chain uncertainty and risk in an industry.
Analysis of Product Recalls: Identification of Recall Initiators and Causes of Recall Kamrul Ahsan (Victoria University, Australia) Indra Gunawan (Federation University, Australia)
Abstract: Nowadays, product recalls have become an inevitable problem striking companies and manufacturers. If no sufficient preparation is made, product recalls can easily affect the bottom line. The objective of this paper is to analyse product recall notices and identify major issues of recall such as types of recalled products, causes of recall, recall initiators, and the relationship between products, recall initiators and causes of recall. This research provides an in depth analysis of recalls patterns through content analysis of historical recall notices. Analysis shows most food items are recalled due to manufacturing fault, for electrical appliances major causes of recall are design fault, and kids’ products are recalled due to design and manufacturing faults, and for all types of products most recalls are initiated by the manufacturer. The result of this research will help manufacturers look at the root causes of recall and find solution to the quality issues of product design and manufacturing. This research can be further extended to incorporate data from various countries.
Buyer-Supplier Collaboration in New Product Development Between Two Equally Powerful Firms: A Case Study of ABB and SKF Lisa Melander (Linkoping University, Sweden)
Abstract: Collaboration in new product development (NPD) is becoming ever more important as firms specialize and rely on suppliers to provide the latest technology. Most studies on supplier involvement are of collaborations between a powerful buyer and a less powerful supplier, and taking the buying firm’s perspective. In contrast, this study focuses on a collaborative NPD project between two equally powerful firms, including both firms’ perspectives. A case study of a project between ABB and SKF was conducted. It is shown that not only is the supplier selection important, but it is also important for the buying firm to have an attractive project to motivate the supplier to join the project. Such attractions include business opportunities and learning possibilities. However, these learning possibilities could be viewed as harmful by the buying firm. Particularly when considering that the supplier was equally powerful. Fear of knowledge spillover that could make it possible for the supplier to become a future competitor could hinder the collaboration. These fears were avoided mainly through trust built during prior history with the supplier project.
Service Supply Chain Risk Management Jyri Vilko (Lappeenranta University of Technology, Finland) Paavo Ritala (Lappeenranta University of Technology, Finland)
Abstract: Services are increasing in importance in international business and understanding the characteristics of services in the supply chain context can provide crucial information for enabling efficient and effective implementation of risk management. Service literature has in general suggested that the distinctive nature of services—in contrast to products—can be connected to the so-called IHIP attributes (intangibility, heterogeneity, inseparability of production and consumption, and perishability). In this study, we utilize these attributes in the task of identifying the distinctive features and dynamics of service supply chains in a risk management context. The study provides an important, yet sparsely addressed, viewpoint of the supply chain risk management literature by illustrating the special characteristics of services in this context. We develop a conceptual framework and a set of propositions to highlight our arguments. The findings of the study suggest that service supply chain risk management requires special attention in terms of the IHIP attributes, which include issues the traditional supply chain risk management tools can easily miss. The presented viewpoint is a novel one and provides a new perspective to supply chain risk management theory by linking the service theories to supply chain risk management.
Managing Spares Inventory Through Life Time Value Assessment Mohita Gangwar Sharma (FORE School of Management, New Delhi, India) Kashi N. Singh (Indian Institute of Management, Lucknow, India )
Abstract: Spare Parts Management in capital equipment intensive industries is a critical differentiating factor. As we work in a resource crunch environment, we have changed the vantage point for spares management system in this study. Determining the value and usefulness of the spare parts and understanding which spare part is more valuable should guide us in committing resource. Instead of looking from the vantage point of the equipment where the spare is used this spare considers spare part as an investment based on its value. Real Option Analysis has been identified in the literature as a quantitative means to evaluate the flexibility inherent in the decision making process. By adopting a real options framework we develop a model that incorporates the demand uncertainty and the financial implications involved. The value derived in terms of asset utilization determines the viability of this investment. Thus, the concept of ‘Spares Life Time Value’ has been proposed based on an analogy from ‘Customer life time value’. In this model the contribution of spare part reduces to an argument which can be used for strategic insights and decision making. The concept has been illustrated through a case study on the issue of spare resource allocation.
Global Supply Chain Practices and Problems Facing Developing Countries: A Study in Tanzania Kabossa A.B. Msimangira (Melbourne Polytechnic, Australia) Clemence P. Tesha (Procurement and Supplies Professionals and Technicians Board, Tanzania)
Abstract: Although global supply chain is widely discussed by practitioners and academics, and the widespread international recognition of global supply chain practices and problems, little is known in the literature concerning the global supply chain problems facing developing countries. This study aims to identify key problems affecting global sourcing processes in the global supply chain, with reference to the transport sector in Tanzania. We used a case-based research approach by conducting in-depth interviews with senior procurement and supplies managers. Secondary data were collected from the companies’ websites and annual reports. Also, direct observation on the companies’ operations helped to make the study empirically grounded. We used cross-case analysis to analyse the data. The findings reveal that the local end component of the global supply chain in Tanzania faces many problems compared to that of developed countries; for example, key problems facing Tanzania are: the use of out-dated technology in the domestic market, lack of trust, documentation problems, procurement of counterfeit products (e.g., spare parts), and lack of integrated computerised systems to link with the overseas suppliers in the global supply chain, and so on. The insights on problems and practices provide valuable information to researchers and practitioners on the challenges and opportunities in the global supply chain sourcing processes in developing countries. We provide recommendations to solve some of the global supply chain problems.
An Integrated Forecasting DSS Architecture in Supply Chain Management Tien-You Wang (Tainan University of Technology, Taiwan R.O.C) Din-Horng Yeh (National Chung Cheng University, Taiwan R.O.C)
Abstract: In a competing market environment, supply chain management (SCM) has been critical for companies to survive. Demand planning plays an important role in SCM, for it provides accurate demand forecasts which may achieve customer satisfaction by offering benefits such as low inventory level, short lead time, efficient resource allocation, and quick response. To obtain more accurate forecasts, this study presents a web-based DSS architecture and its forecasting core. The forecasting core, named Panel Function, contains three modules: Segmentation Module, Forecasting Module, and Coordination Module. Segmentation Module employs data mining technology to categorize customers with different characteristics into three segments: Loyal Customer Segment, Potential Customer Segment, and Switcher Segment. Based on the three segments, Forecasting Module employs different forecasting and analysis technologies to estimate an integrated forecast: time-series forecasting to capture the loyal customer demand trend, Bayesian inference to estimate the predicted value of switcher purchase quantity, and questionnaire analysis and brand choice models to unearth potential customers. An integration function then synthesizes the results from these three processes to obtain the integrated forecast. Coordination Module then takes this integrated forecast as the base of distribution planning, and provides a minimal system-wide total cost solution for all parties in the supply chain. As a whole, this DSS architecture is anticipated to provide an efficient mechanism for collaborative demand planning, and help create the maximum profit for the supply chain.
Synthetic Data Generation for Small-Area Demand Forecasting of Freight Flows Paul Metaxatos (University of Illinois at Chicago, USA)
Abstract: Small area statistics have become increasingly critical for the planning and management of intermodal transportation systems. However, for reasons associated with disclosure of confidential information, data is often released on a fairly coarse geography vis-à-vis a much finer geographical level. This has led to extensive research on small area estimation - i.e., estimation at a more detailed geographical level based on data at a coarser level. Most of this work has been single-area-specific or non-flow data. Freight flows, at a minimum, have origin and destination location specificity, which leads to greater complexity. This paper addresses this issue providing a methodology for small-area estimation of freight flows based on the gravity model. Preliminary empirical findings using publicly available data demonstrate the reasonableness of the method as a freight-planning tool.
Time and Form Postponement Competition under Dynamic Behavior of Demand Yohanes Kristianto (University of Vaasa, Finland) Petri T. Helo (University of Vaasa, Finland)
Abstract: This paper studies assembly-to-order (form postponement) and make-to-stock (time postponement) duopolistic competition under dynamic price and production strategies for two differentiable products, which share common components at a certain degree of substitution. Both strategies are benchmarked according to the Bertrand and Cournot Stackelberg game. In addition, dynamic game is applied to show the long term effect of both strategic decisions (price and production quantity) on profit and against demand uncertainty. The results show that precommited production is appropriate for high modular products and precommited price for special orders. The final part of the paper concludes the results and outlines future research directions.
Architecture and Functionality of a Supply Chain Enterprise Resources Planning System Richard Lackes (Technische Universität Dortmund, Germany)
Abstract: The supply chain management (SCM) aims to improve the material flow between linked enterprises by installing information systems and procedures that provide a better coordination in the logistic chain. Planning production and order quantities is a fundamental and decisive process for material flows in a supply chain. Therefore, the coordination of strategies and decisions is of great importance to the efficiency and economy of the latter. One way to improve the coordination is the construction of a central supply chain ERP system. This should complement existing ones used in diverse enterprises in order to attain better coordination of all. This way, too, the distinct scheduling systems used keep their autonomy to a large extent. Akin to “service providers,” they are used by the central supply chain-oriented enterprise resources planning system (SC-ERPS), which in this respect aids an information system that loosely links different ERP systems. The required architecture, as well as the needed data and functionality are introduced and discussed here. In particular, problems related to how to handle the intersection parts in a supply chain – the parts that are produced and consumed in different enterprises of the supply chain - are analysed and solutions are discussed. These parts are physically identical but they are also different planning objects in different planning and information systems. The paper will focus on the module for the production planning process because it determines the material flow in the complete supply chain.
Integration of Real-Time Demand Information and Spare Parts Distribution Planning for the Optimization of Spare Parts Supply in After-Sales Service Networks Martin Thormann (TU Dortmund University, Dortmund, Germany )
Abstract: Accurate spare parts demand planning and effective distribution planning is essential for providers of after-sales services in the machine and plant engineering industry to ensure high spare parts availability for maintenance and failure orders (callouts) at a reasonable cost. Low spare parts availability is primarily the result of high uncertainty in spare parts demand, leading to misallocation of parts within after-sales service networks. The lack of spare parts availability causes equipment downtime, resulting in customer dissatisfaction and possible penalty costs for after-sales service providers, if response times are contractually fixed. This paper proposes an approach and planning methods for integrating real-time status information about equipment utilization and service conditions to determine optimal spare parts stocking strategies. For this purpose, spare parts stocking strategies and ordering policies for application in after-sales service networks are analyzed. Furthermore, a binary linear optimization model is developed for the assignment of stocking strategies to spare parts based on real-time demand information of the equipment to be serviced. This method uses data provided by an internationally operating elevator company
A Supply Chain Product Delivery and Distribution Planning Model Kanchan Das (East Carolina University, Greenville, USA) R.S. Lashkari (University of Windsor, Canada )
Abstract: We propose a mixed integer program (MIP) based product distribution planning model for optimizing the transportation and distribution cost of a supply chain. The model takes into account production/procurement centers (PCs) and plans product delivery to customers either directly from the PCs, or through distribution centers (DCs) considering the available distribution modes. To cover the customer requirements at diverse geographic regions, the model selects optimum regions for DCs, and determines the capacities and the number of DCs to be used in each region to achieve optimum cost. Within the possible distribution modes, the model explores options of using distribution contractors (e.g., the U.S. post office; FedEx, UPS, etc.). A numerical example illustrates the applicability of the model.
Improvements in Movement of Empty Containers: The Case of the Port of Gothenburg Violeta Roso (Chalmers University of Technology, Gothenburg, Sweden) Nils Andersson (Chalmers University of Technology, Gothenburg, Sweden) Joakim Widstrand (Chalmers University of Technology, Gothenburg, Sweden) Kent Lumsden (Chalmers University of Technology, Gothenburg, Sweden)
Abstract: Capacity increase only at seaport facilities without improvements in seaports’ inland access is not enough for the entire container transport chain to function properly. With constantly growing container transports, efficiency of rail and flexibility of road are increasingly needed for inland access to/from the seaports, however not always sufficient. Therefore the purpose of this study is to compare movement of empty containers by barge and long and heavy vehicles (LHV) to the reference situation done by regular trucks, on the case of port of Gothenburg and one of its nearby depots; with regard to economy, environment, flexibility and time efficiency. Currently the transportation of containers between the container terminal in the port of Gothenburg and the container depot located 6,5 km at Risholmen is carried out by trucks of a maximum capacity of three TEUs. The data for the study were collected through interviews, observation and literature review. The literature in general claims that barge is a very cost efficient and low polluting mode of transportation but in which circumstances? The findings of the study are focusing on how the studied modes are performing with respect to suggested criteria and show LHV to be the most suitable mode of transport for given route. Not only that the proper choice of the mode has an economic effect, but it also has an environmental impact due to reduced fuel consumption resulting in lower emissions.
Construction of Green Supply Chain for Organic Products Blanka Tundys (University of Szczecin, Poland) Andrzej Rzeczycki (University of Szczecin, Poland)
Abstract: The literature indicates that green supply chain is not only dedicated for organic products. Rather, the authors take a focus on the analysis of processes, organizational and law issues and the implementation of innovations that include, among others, the green aspects (manufacturing, production, transportation). Connection of green supply chain with organic products seems to be very important, among other reasons, because the development of the market for these products is dynamic. The interest of these products is growing worldwide. Production of organic products is legally regulated. The final result of this work will identify the basis for building a model of green supply chain for organic products (with emphasis on agricultural products), the identification of the factors forming the basis for the construction, relationships between stakeholders and indicate which of the factors determine the greening supply chain and whether they are necessary or sufficient factors for the role of ecological products of the market.
Mobile-Apps Development for Biodiesel Distribution Tracking System and Supply Chain Monitoring M. Iman Santoso (Duisburg-Essen University, Germany ) Bernd Noche (Duisburg-Essen University, Germany)
Abstract: Biodiesel is considered as the most prominent alternative to replacing or complement petroleum-diesel in the future. It is slowly gaining its importance in our daily life. Nevertheless, there are several problems emerged in the biodiesel supply chain, e.g. biodegradability, quality control, disturbance in the distribution of biodiesel, interrupted feedstock, supply and lack of governance. A new approach of biodiesel supply chain management has been developed based on mobile-application to overcome such problems. Determining the fact that biodiesel is degradable over time, the system also possessed by feature to maintain the biodiesel quality during transport, besides bringing-out simple and user-friendly supply-trading application on hand to hand. A wide range of biodiesel supply chain monitoring, distribution tracking and quality checking are demonstrated during the process of ordering, stocking, buying and sending biodiesel. The mobile-application has been tested for performance analysis on processor, battery and data usage. All menus, performance test and survey show good responses although at the security aspect is found the necessity of extra-development. Further analysis indicates that such system also fit for feedstock plantation, cultivation, harvesting and procurement. Overall, this method is worthy suggested to be implemented on the accreditation board of biodiesel that manages the entire supply, orders, trades and quality of biodiesel from upstream to the downstream.
Research on Manufacturer’s Price and Service Strategy Under Gray Market Considering Government Supervision Xin Yin (Chongqing University, China) Bin Dan (Chongqing University, China) Haiyue Zhang (Chongqing University, China)
Abstract: This paper considers a supply chain system consisting of a manufacturer with her authorized retailers, an unauthorized intermediary and the regional government. Aim at the problem of the manufacturer’s price decision and service strategy in two markets under gray market, the demand function influenced by the consumer acceptance of gray goods and the manufacturer and the unauthorized intermediary’s profit model are established. By analyzing and discussing the effects of government supervision on manufacturer’s pricing decision and service strategy, this paper proposes the manufacturer’s optimal price and service strategy. The results show that if the government increases supervision the manufacturer will benefit while products demand and profits of the unauthorized intermediary will decrease. Thus, the government will achieve the target of combating gray market transaction. Besides, the manufacturer’s service level when the government does not provide any protection against the gray market is as same as the level when the government provides complete protection. The service level will be higher when the government provides incomplete protection. Furthermore the results are examined by numerical examples.
Relocation of Car Manufacturers: Wise Solution or Costly Setback? Marian Liviu Mocan (Politehnica University from Timisoara, Romania) Attila Turi (Politehnica University from Timisoara, Romania) Gilles Goncalves (Univ Lille Nord de France, France) Sorin-Ioan Maistor (Politehnica University from Timisoara, Romania)
Abstract: The paper outlines the current concern of relocation in automotive industry in order to adapt to market conditions by shifting production towards emerging countries. Car manufacturers strive to reduce their operational costs to compensate weak sales in an attempt to overcome the slow market revival and remain globally competitive. The paper focuses on the Dacia-Renault low-cost car policy and uses the case research method to describe differences in consumer behaviour on the French, Romanian and Moroccan car markets. Relevant data and indicators for automotive industry from these 3 countries are analysed and compared by using linear interpolation providing an aggregate indicator with an overview on market dynamics and perspectives. Preliminary results show that drivers of relocation are mainly related to market opportunity, workforce costs and infrastructure. Macroeconomic indicators, acquiring needed skills by local workforce and a good management capacity seem to be more delicate issues. Moreover authorities from emerging countries provide fiscal advantages for car manufacturers willing to relocate their activity or build a new factory as they are a source of wellbeing for its population and economic growth for the country. The research conducts an analysis of advantages and disadvantages of relocation and provides recommendations to improve competitiveness and assure sustainable development of both car manufacturing companies and their supply chain.
Development of a Purchasing and Supply Management Maturity Framework Joerg Schweiger (University of Applied Sciences Joanneum, Austria)
Abstract: The goal of this contribution is to present a Purchasing and Supply Management Maturity Framework based on the findings of a comprehensive literature and empirical research and a comparative analysis of maturity models published between 1983 and 2014 as well as (management) frameworks published between 1998 and 2014 in Purchasing and Supply Management (PSM). In total 20 maturity models published from authors with an academic or scientific background, 18 maturity models offered from consulting firms and 19 management frameworks of purchasing management were examined. In this research the following eight modules that contribute to a mature and professional PSM were detected: (1) strategy & plans, (2) controlling & performance management, (3) organization & internal interfaces, (4) supplier management & external interfaces, (5) process excellence & information and communication technology (ICT), (6) talents & skills, (7) innovation & methods and (8) sustainability & ethics. Based on these findings, the concept of an original Purchasing Maturity Framework will be presented. Contrary to the large part of the published maturity models in PSM, this model is rather designed as a management model for (I) the assessment of the PSM maturity in a company and (II) the display of standard improvement paths that should lead to higher maturity than an assessment tool for evaluating the maturity at a certain point in time. Moreover, aspects of professional project and change management will be addressed that are necessary for an effective and efficient advancement of the PSM function in a company.
Can an Underachiever Become Competitive? The Case of the Romanian Food Industry Marian Liviu Mocan (Politehnica University from Timisoara, Romania) Attila Turi (Politehnica University from Timisoara, Romania) Gilles Goncalves (Univ Lille Nord de France, France) Sorin-Ioan Maistor (Politehnica University from Timisoara, Romania)
Abstract: The paper outlines current challenges in Romanian food industry, its potential to overcome them and be competitive on both the national and international market using a key performance indicator (KPI) methodology. Although it has the capacity to assure internal consumption and competition on the market is high the Romanian food sector is struggling to meet internal demand, imports heavily exceed exports while food consumption is decreasing. The retail sector is an important part of the supply chain, but the harsh competition among the different stores has made them pass the risks only towards the upstream links which is straining food processors and producers and threatening the sustainable development of the food supply chain. High taxation, unfair competition and delayed payments towards food processors add extra pressure on the weaker links of the chain. Moreover authorities are inefficient in assuring duly market conditions whereas scandals further degrade industry image and cause important losses. The lack of synergic efforts within the industry and the scarce collaboration efforts between business partners affect individual company performance and thus global industry competitiveness. The research provides solutions that address its structural issues and develops performance indicators to improve the efficiency of companies in order to assure their sustainable development within the supply chain and become more competitive on the global food.
A Mathematical Optimization Approach to Supply Chain Disruptions Management Considering Disruptions to Suppliers and Distribution Centers Syed Mithun Ali (Nagoya Institute of Technology, Nagoya, Japan) Koichi Nakade (Nagoya Institute of Technology, Nagoya, Japan)
Abstract: We develop an analytical framework of a multiproduct supply chain system composed of multiple suppliers, multiple distribution centers and multiple customers considering disruptions risk. Unlike traditional single sourcing strategy which is mostly discussed in supply chain literature, we apply multi-sourcing strategy in both procurement and distribution of commodities. The model thus developed determines the location of distribution centers from a set of potential location, shipment decisions from multiple suppliers to multiple distribution centers and shipment decisions from multiple distribution centers to multiple customers. Moreover, the model evaluates potential amount of products shortages in the event of disruptions. In our work, we consider disruptions at candidate locations for distribution centers and to the suppliers. The analytical framework is formulated as a mixed integer programming (MIP) model which minimizes the sum of investment cost, the transportation cost and the expected shortage cost. We consider several numerical instances to examine the benefit and practicability of the proposed model. Finally, we compare the results of the risk concern optimization framework to the basic optimization framework. From the results, it is expected that risk concern model would outperform the basic model in the case of disruptions.
A Vendor-Buyer Inventory Model for Food Products Based On Shelf-Life Pricing Gusti Fauza (Sebelas Maret University, Surakarta, Indonesia) Yousef Amer (University of South Australia ) Sang-Heon Lee (University of South Australia ) Hari Prasetyo (Universitas Muhammadiyah Surakarta, Indonesia)
Abstract: Research on coordinated inventory policy for perishable items between a manufacturer and a retailer has been extensively done. The majority studies however assumed that the stored item starts to deteriorate instantaneously once its production process completed. This may be suitable for representing the characteristic of certain perishable items such as alcohol or radioactive materials. In many cases, particularly for food products such as fruits, vegetables, meat and bakeries, over the shelf-life the quantity remains constant while the value does degrade once the product is approaching its expiration date. Despite this phenomenon, less research addresses this issue, particularly in a multi-echelon supply chain system. Therefore, this research deals with inventory policy for a manufacturer-retailer system considering value degradation for food products. A mathematical model representing the system is proposed. A shelf-life based pricing function is applied to represent the value degradation of the product. The objective function is to maximise the joint profit per unit time which is achieved by optimising the length of manufacturer’s production cycle (T) and the ordering frequency of finished goods (n) over the production cycle. The numerical test for the established model demonstrates that the model outperforms the existing model in terms of its potential capability of returning a significant profit improvement.
A Macro and Micro-Level Evaluation of Stakeholders’ Collaboration for Sustainable City Logistics Operations Taiwo Adetiloye (Concordia Institute for Information and Systems Engineering (CIISE), Montreal, Canada) Gul Pervez (Concordia Institute for Information and Systems Engineering (CIISE), Montreal, Canada)
Abstract: City logistics involves movement of city goods in urban areas respecting the municipal and administrative guidelines. The key goals of city logistics planning are maximizing vehicle movement and utilization, while minimising vehicle emissions and traffic congestion. Collaboration is vital to managing city logistics operations efficiently. Collaboration can take place in the form of goods consolidation, sharing of resources, information sharing, and so on. Two categories of models are proposed to evaluate these collaboration strategies. At the macro level, we present the collaboration matrix model; and at the micro level, we present the operational level model. The macro-level model focuses on the strategic decision making process necessary for stakeholders’ collaboration given the socio-cultural characteristics, economic, and environmental constraint factors, while the micro-level model applies the collaboration decision-making criteria derived from the macro-level analytic result to improve the activities of the city logistics operators. Results of the computational testing of our methodology on vehicle selection, goods to vehicle assignment, goods distribution and environmental impact assessment are discussed, showing that the collaboration strategies of stakeholders, if optimized, can improve city logistics operations. The proposed work is novel and has strong practical applicability for logistics planners and decision makers in planning right collaboration strategies for sustainable city logistics operations.
An Approach of Purchasing Decision Support in Healthcare Supply Chain Management Shah Jahan Miah (Victoria University, Australia) Kamrul Ahsan (Victoria University, Australia) Kabossa A.B. Msimangira (Northern Melbourne Institute, Australia)
Abstract: The aim of this study is to develop a conceptual approach of supplier selection decision support that promotes in-house methods of decision-making in the healthcare purchasing. Our approach is based on a decision support system (DSS) solution principle in which each selection component is assessed and supported by a new type of DSS model previously developed for rural industries. The study uses survey data to structure a decision model evaluated by a hypothetical case of procuring a hospital x-ray machine. We further demonstrate case data through the features of the DSS model. We believe that the proposed approach addresses a complex supplier selection decision in healthcare purchasing.
Improvement Strategy Selection in FMEA – Classification, Review and New Opportunity Roadmaps Agung Sutrisno (Sam Ratulangi University, Indonesia) Hyuck Moo Kwon (Pukyong National University, South Korea) Tzong-Ru (Jiun-Shen) Lee (National Chung Hsing University, Taiwan) Jang Hyon Ae (Pukyong National University, South Korea)
Abstract: Failure risk reprioritization and improvement strategy selection are two inseparable parts in FMEAmethodology. Nevertheless, the previous studies on the new research opportunities provide veryscanty discussions on the latter part. This paper presents an initial survey to classify literature related to improvement strategy selection methodology inFMEA. Systematic literature review using various reference databases is undertaken. Driven by new paradigms and recent trends on managing business operation,many studies have been dedicated to advance improvement strategy selection based on FMEA. The result of our survey, however, indicated that all those previous endeavors do not seem to be sufficient. Based on some observable gaps from the previous references, new research roadmaps in selecting improvement efforts are presented.
Skilled Manpower Selection for Micro, Small and Medium Enterprises: A Fuzzy Decision Making Approach Monalisha Pattnaik (Utkal University, India)
Abstract: Supply of skilled manpower is a major strategy for entrepreneur to run the production process smoothly. Skilled manpower categorization, selection and performance evaluation are decisions of strategic importance to micro, small and medium enterprises. Global competition, mass customization, high customer expectations and harsh economic conditions are forcing enterprises to rely on external skilled manpower to contribute finished products and to manage a growing number of processes and functions that were once controlled internally. Thus skilled manpower performance evaluation is very important to choose the right manpower for the right enterprises. In this paper a fuzzy manpower selection algorithm (FMSA) is implemented to rank the technically efficient manpower according to the both predetermined performance criteria and additional skilled-related performance criteria. The algorithm is based on calculating fuzzy suitability indices for the efficient manpower alternatives, and then, ranking the fuzzy indices to select the best skilled manpower alternative. A comprehensive example is provided to illustrate the decision making procedure.
Customer-Responsive Supply of Local Foods Per Engelseth (Molde University College, Norway)
Abstract: To attain sustainable logistics in food production, shortening transport from food production source to the place of consumption, is emerging as a major topic in food supply. First literature on local food distribution is reviewed. Based on this review a single case study of local food supply in the Norwegian town of Narvik is described. The case concerns accordingly a municipality. Inquiry involves a case study including a triangulation of in-depth interviews with producers, retailers and a consumer survey. Findings provide understanding of how to define “local foods” as well as the importance of this form of food distribution. The study underpins the growing importance of this form of food distribution. It also reveals how local foods involve using complex marketing channels even though distance is small. This means that a wide range of logistics solutions is feasible. Other than the "short transport" feature, there is accordingly no clear-cut form of logistics for the distribution of local foods.
Supply Chain Synergies in Post-merger Environments: The Case of the UK Food Industry Ioannis Manikas (University of Greenwich, UK) Farzeen Jaswal (University of Greenwich, UK)
Abstract: Mergers are a complex phenomenon with a high failure rate inspite of the increased and more frequent mergers in companies today. This paper investigates the various factors that affect supply chain efficiency in post-merger environments and provides with a framework of requirements for a successful post-merger supply chain. The main aim is to assess the motives or initial expectations regarding value creation from mergers and analyse the post-merger effects of mergers on supply chain, also shedding some light on the major difficulties for the merging firms in achieving synergies regarding supply chains and managing key supply chain players in a way that maximum value can be extracted from the merger. Study is focused on the food industry in the UK. A questionnaire with 10 questions was sent out to supply chain managers of 600 people merged firms, representing approximately 40% of the overall mergers occurred in the UK Food and Beverages Industry between 2008 and 2012. 188 responses were received, representing 31% of the sample and 12% of the overall mergers between 2008 and 2012. It is found that mergers do not necessarily have a negative impact on the firms and their operational performance. In fact, this process can help in extracting many benefits by merging the two supply chains into one. Proper management, right strategy, trained workforce and good integration along the merger process can result in an efficient post-merger supply chain performance.
An Empirical Study of Logistics Strategy for Service Quality at Retail Malls at Thane City and Suburban Mumbai in India Parvathi Venkatesh (Mulund College of Commerce, India)
Abstract: The present study is a survey approach to measure service quality with reference to current thinking of consumers and their future requirements. It is an analysis of evaluating the gap between customer perceptions and expectations of service quality in selected agglomerated retail shopping centres in Thane and eastern suburbs of Mumbai in India. Data were collected from 600 customers of large retail shopping stores using structured questionnaire. Basic framework of SERVQUAL model has been adapted and seven customer quality dimensions were introduced to suit the purpose.The scores have been further analysed by using Inferential Statistical Test. The study showed distinctive results for the relationship between service quality dimensions and service quality. The result shows that at group level, all logistic dimensions of service quality such as Access, Architecture, Assortment and Alignment positively influences the service quality as the customer perceived service are high to their expectations. The result also indicates that gap in specific attributes in the subgroups like safety and security arrangements are statistically significant.This paper serves a model mapping for retail managers and provides valuable information that may help them to better understand the customers’ preferences and the business.
Raspberry Pi and Sensor Networking for African Health Supply Chains Anna-Mara Schoen (University of Applied Sciences Fulda, Germany ) Liliane Streit-Juotsa (University of Applied Sciences Fulda, Germany )
Abstract: Many medicines in Sub-Saharan Africa lose their effectiveness along the supply chain. Some of the reasons are poor information flows, lack of temperature control systems as well as missing standardized processes including the measurement through performance indicators. Studies from the World Health Organization – executed in 70 countries – report that only 29% of these countries meet the minimum recommended standards for temperature control and levels. In order to meet these challenges, efficient and effective ways need to be found. Frequent power outages, low level of education of personnel and a high rate of warehouses without any IT-infrastructure need to be taken into account. This paper focuses on the usage of Raspberry Pis and Arduino (small, simple and low priced computers) in combination with sensor networking. An in-depth literature analysis as well as an on-location inspection in Cameroon helped to detect the challenges African health supply chain managers face. The study of the possibilities of a Raspberry Pi in combination with Arduino and sensor networking is currently conducted in order to see if these hardware components could help to improve the cold chain challenges of high priced medicines (e.g. vaccines) in developing countries, e.g. in Sub-Saharan Africa. The objective of our research is to identify a fast, low-cost temperature control system in warehouses in developing countries and health supply chains which is easy to implement, to use, to maintain and works effectively (e.g. fast and reliable).
Asset Integrity Knowledge Management: A Case Study from the Petroleum Industry Mayang Kusumawardhani (University of Stavanger, Norway) Tore Markeset (University of Stavanger, Norway)
Abstract: The practice of knowledge management in the petroleum industry is motivated by the HSE, technical and business requirements. Aligned with the development of knowledge management, various advancements in information systems are used to maintain the asset integrity of petroleum installations. However, the advancement also poses its own risks. With the increasing use of advanced technology in the petroleum installations, there are potential threats that can affect the installation´s integrity. This paper aims to identify knowledge management and information system practices and challenges in maintaining the asset integrity of petroleum installations. This study is part of a larger-scale case study that analyzes current asset integrity management (AIM) practices in the petroleum industry. The study is based on a literature study and face-to-face interviews with industry practitioners in Houston, Texas, and Singapore. The main findings revealed seven groups of AIM challenges; knowledge management and information technology are part of these.
Purchasing Social Responsibility Activities in Malaysia: A focus in Labour, Health, and Safety Saw Khuan Loo (Wawasan Open University, Malaysia) Ellisha Nasruddin (Universiti Sains Malaysia, Malaysia)
Abstract: Globalisation of companies has led to international purchasing trend with multiple suppliers worldwide. However there were many issues pertaining to labour and health & safety of Asian suppliers. The purchasing function or professionals (purchasing managers) have the most interfaces and influences to suppliers and they are capable to play the most important role in suppliers’ labour issues. This qualitative, transcendental phenomenological study describes the experience of purchasing managers with regard to purchasing social responsibility (PSR) activities in labour, health and safety. In depth interviews were conducted with 16 purchasing managers working in electrical and electronics multinational corporations located in northern region of Malaysia. There are eight core themes described the nature of PSR activities experienced by purchasing managers. First, EICC code enhances PSR activities but labour standards are new and less priority than health and safety. Second, purchasing managers working in American based electrical and electronics multinational corporations are more experience in PSR activities compared with purchasing managers working in corporations with headquarters in other countries. Third, supplier audit is the most common PSR activity but it was only conducted for critical suppliers. Fourth, supplier self-assessment triggers supplier audit or improvement plan. Fifth, supplier selection only requires basic compliance in labour, health and safety standards. Sixth, short training of labour, health and safety standards is commonly arranged for all suppliers. Seventh, corrective actions are used to manage suppliers’ labour violations in occupational safety, wages, working hours, dormitories and holding of migrant passports. Eighth, issues encountered with suppliers on PSR activities included labour standards increase material pricing, suppliers reluctant to adhere to labour standards and workers preferred longer work hours in order to gain higher wages.
Behavioral Causes of the Bullwhip Effect: Multinational vs. Local Supermarket Retailers Himanshu Shee (Victoria University , Australia) Surahman Kaswi (Politeknik Negeri Samarinda, Indonesia)
Abstract: Managers’ perception of extra days of product ordering characterises behavioral causes of the bullwhip effect that is not yet addressed so far in literature. The study therefore investigates and compares behavioral causes of the bullwhip effect within- and between multinational and local supermarkets in a three-echelon retail chain. Retail chain stock replenishment practices embodied in a survey was distributed to managers of supplier firms, wholesale distribution centres and small retail stores in Indonesia. The data was analysed using ANOVA and post-hoc test. Results show a significant mean difference in extra days of ordering for both MSCs and LSCs. The small retail stores’ perceived extra days of ordering are significantly more than what the supplier firms order upstream. Wholesale DC of both chains experiences no such effect. The study helps managers to deepen their understanding of extra days of ordering practice that is likely to be influenced by human behavior leading to the very bullwhip effect. Further, realising its negative impact on the chain performance, they need to carefully orchestrate their extra ordering practices.
Improving Out-Patient Flow at An Indian Ophthalmic Hospital Yash Daultani (International Management Institute (IMI) Kolkata, India) Sushil Kumar (Indian Institute of Management (IIM) Lucknow, India) Omkarprasad S. Vaidya (Indian Institute of Management (IIM) Lucknow, India)
Abstract: ABSTRACT
In the recent past, Healthcare sector has shown an exceptional growth all over the world. At the same time, rising health consciousness among patients and demand for quality services has resulted in a stiff competition among hospitals. Consequently, hospitals are increasingly focusing on improving the operations to meet the requirements of patients. To meet this requirement, hospitals need to improve and redesign their existing processes. In this mission of redesigning the healthcare systems, simulation modelers have an important role to play. Simulation modelers can help hospitals in delivering high quality healthcare by proposing strategic scenarios that work in synchronization with operations management philosophies. In this study, we extend an effort in this direction by showcasing the use of simulation as a modeling and analysis tool at an Indian ophthalmic hospital. In particular, we model the outpatient department with a goal of achieving a streamlined patient flow. We analyze various scenarios to compute the adequate resources, while maximizing their utilization. This study results in significant reduction in service lead time, especially in the circumstances where every extra minute spent add to the vows of patients and their aids.
Supply Chain Systems Architecture and Engineering Design: Green-field Supply Chain Integration Petar Radanliev (Anglia Ruskin University, UK)
Abstract: This paper developed a new theory for supply chain archi-tecture, and engineering design that enables integration of the business and supply chain strategies. The architecture starts with individual supply chain participants and derives insights into the complex and abstract concept of green-field integration design. The paper presented a conceptual system for depicting the interactions between business and supply chain strategy engineering. The system examines the decisions made when engineering the business strategy, with regards to the supply chain design. The system derived with a new understanding of how strategies are integrated, and what are the implications for engineering successful strategies. The study revealed that sup-ply chain design is not considered in great detail before archi-tecting the business strategies. Thus, companies consequentially experience supply chain problems that are likely to be detri-mental to the growth potentials. The paper also derived with the findings that proactive and pre-emptive involvement of supply chain participants in the strategy engineering process, would lead to a more robust strategic design.
A Salt Inventory Management Strategy for Winter Maintenance Frank W Ciarallo (Wright State University, USA) Suman Niranjan (Savannah State University, USA) Nick Brown (Evanhoe & Associates, Inc, Ohio, USA)
Abstract: Expenditures for winter maintenance materials total nearly $20 million annually in a mid-western USA state. During an average winter the State Department of Transportation (DOT) uses approximately 666,000 tons of rock salt and has the capacity to store roughly 617,000 tons of material at various locations. Each year, each county in this Mid-western state establishes a contract through DOT with a salt vendor before the winter season and that vendor supplies all garages in the county for the entire season. In order to develop a systematic salt inventory management strategy that achieves the statewide goals for safety, ordering guidelines for each county that specify when to order and how much to order based on an (R, S)-inventory guideline is developed. These guidelines take into account the history of usage and deliveries in a county, as well as the monthly variation in usage. The inventory guidelines developed for the different areas of the state are based on a weather regression model for the major cities/counties in the state relating usage to weather. The guidelines were tested and refined using a computer simulation methodology. The resulting guidelines are compared to the state’s current DOT guidelines for inventory, as well as compared to the county storage capacities to develop recommendations.
Achieving E-procurement Benefits in an Aviation MRO Environment Munmun Basak (GE Oil and Gas (Australia) Pty Ltd, Australia)
Abstract: Continuous technological innovations are forcing businesses to bring automation into its core activities. E-procurement is one of such technological advancement, receives much attention these days as it is a key to optimise supply chain performance, through cost reduction and improved process efficiency. The purpose of this paper is to compare substantial impact of e-procurement and traditional procurement process for MRO (maintenance, repair and overhaul) in an aviation industry through a qualitative case study approach where stages before and after implementation of e-procurement have been analysed to assess the impact on supply chain performance. The study shows that the e-procurement has advantages over the traditional procurement through bringing simplification and transparency throughout the process, reducing turnaround time and also long term relationship with the suppliers along with subsequent cost reduction across the value chain.
Learning on Lean Production: A Review of Opinion and Research within Environmental Constraints Rahul S. Mor (National Institute of Technology, Jalandhar, India) Sarbjit Singh (National Institute of Technology, Jalandhar, India) Arvind Bhardwaj (National Institute of Technology, Jalandhar, India)
Abstract: Despite of its type, location or principal market base, today the manufacturing enterprises are bound to adopt sustainable practices like lean principles, integration of processes and inter-organizational collaborations to meet their corporate goals. The majority of studies usually discuss either a system or a subcomponent of the production systems and manufacturing strategies in literature w.r.t. lean production; but the rational (what, why, how) behind each production activity seems to be missing. This paper addresses a comprehensive assessment of the literature on lean production in relation to the green concept, for its significance, feasibility and need for organizations to sustain in the global market. Findings of the review reveal that lean principles along with green model can improve the process flow & employee morale and lower the environmental regulatory non-compliance risk. Further, the environmental and human health risks are often not explicitly considered in lean initiatives that can affect customers & stakeholders throughout the product life cycle, and the manufacturing enterprises working with lean strategies have the possibility of costs sub-optimization and waste reduction from a lifecycle viewpoint.
Dynamics of coordination for return policy contracts with warranty Shirsendu Nandi (Indian Institute of Management Rohtak, Haryana, India)
Abstract: The purpose of this paper is to determine the relationship among different variables and contract parameters in order to achieve coordination for buyback contract and quantity flexibility contract with warranty. The paper analyses the dynamics of coordination and performs numerical analysis to compare the results obtained for different demand distributions. The paper makes use of analytical model and optimization techniques to investigate the dynamics of coordination. This study finds relationship among different exogenous variables and contract parameters to achieve channel coordination through warranty period optimization. The study also finds that with increase in mean of the distribution the optimal warranty length decreases. It provides the graphical nature of the risk and profit allocation for both the parties in the supply chain with increase in flexibility, buyback rate. It is found that in case of exponential demand distribution with higher variance, the manufacturer is required to offer a higher flexibility to the retailer in terms of quantity ordered by fixing a relatively larger flexibility parameter to ensure that both the parties in the supply chain have a positive profit. Using the demonstrated guidelines the coordinator of the supply chain may optimally design the contract parameters, warranty length etc. The study contributes to the existing literature by deriving necessary conditions for achieving supply chain coordination in case of a buyback contract and a quantity flexibility contract with warranty. The study helps the channel coordinator to understand the dynamics of coordination.
World Views and the Evaluation of NGO Supply Chains: Thirteen Cases from Guatemala Stephen A. LeMay (University of West Florida, USA) Michael J. Dwyer (Colonia Villa Sol, Guatemala) Marilyn M. Helms (Dalton State College, USA)
Abstract: The city of Antigua, Guatemala is a frequent destination for volunteer tourism and home to numerous non-governmental organizations (NGOs), including many international charities and humanitarian aid organizations. The area is ideal for studying disaster relief and humanitarian supply chains as well as the problems these supply chains face operating at the center of clashes between world views and cultures. In this research, we assess the impact of these world views on NGO supply chain practices, evaluate NGOs understanding of supply chain theory and practices and present 13 cases of potential, growing, and successful NGO relief examples. From the field research, we developed a classification framework and identified nine specific criteria that NGOs must meet to sustain success. We discuss the implications of the framework for future research.
Demand-oriented Supply Chain Strategies – A Review of the Literature Chuda Basnet (University of Waikato, New Zealand) Stefan Seuring (University of Kassel, Germany)
Abstract: This paper presents a review of the research literature on supply chain strategies linked to product demand. Fisher (1997), in his seminal article, has argued that efficient supply chain (SC) strategies are appropriate for functional products and responsive strategies are needed for innovative products. The purpose of this article is to review articles which have been published after Fisher (1997), and which relate market demand for a product to the respective supply chain design, in an effort to synthesise these articles and suggest future research directions. A literature review is carried out using content analysis, following the qualitative research paradigm. Both deductive and inductive coding has been carried out, followed by a descriptive analysis and a synthesis of the literature. The contribution of the article is a critical review, a synthesis of the literature, and directions for future research.
Is Supply Chain Management Replacing Operations Management in the Business Core Curriculum? Gurkan I. Akalin (Eastern Illinois University, USA) Zhentu Huang (Eastern Illinois University, USA) John R. Willems (Eastern Illinois University, USA)
Abstract: This study reviews the core requirements in 447 business departments accredited by the Association to Advance Collegiate Schools of Business (AACSB) in order to understand the current status and changes of Operations Management and Supply Chain Management offerings in the business core. The field of SCM continues to grow in the 21st century in terms of both industry demand and academic offerings. After the 2000s, many institutes of higher education realized the importance of SCM and the demand for trained individuals in the area. SCM became a common elective course for many business schools. This study is interested in exploring the next stage of implementing SCM into business education curriculum. This study seeks to determine if SCM is becoming a core business class for the majority of the business schools, or, more dramatically, if SCM is on the path of replacing OM. We report our survey results in order to understand the motivation for the changes related to SCM in the business core curriculum, the student and faculty reaction to these changes, and its effect on student enrollment, internships and employment.
Teaching the Mechanism of Horizontal and Vertical Supply Chain Coordination Xun Xu (California State University, Stanislaus, United States)
Abstract: Coordinating stakeholder’s actions in a supply chain provides an efficient approach to enhance supply chain performance and win today’s fierce competition in the market. Using quantitative examples is proved to be an efficient pedagogical methodology to motivate students learning and facilitate students’ in-depth knowledge in supply chain management education. This study provides six quantitative supply chain horizontal and vertical coordination examples, which aim to increase the profit of the whole supply chain. Each example describes the supply chain coordination model with the background of certain supply chain features. Numerical examples and sensitivity analysis are provided to illustrate the benefits of supply chain coordination visually. These examples serve as supplements of an introductory operations management / supply chain management course when the supply chain management fundamentals are taught. They offer a unique viewpoint and roadmap for instructors teaching operations management / supply chain management related courses.
Supply Chain Performance and Resilience of Japanese Firms Yasutaka Kainuma (Tokyo Metropolitan University, Japan)
Abstract: This paper proposes a causal model of the SCM implementation method and SCM performance by referring to several research investigations. This study shows that there are factors similar to those derived through our proposed causal model and questionnaire survey. Their influences on SCM also revealed performance metrics. In particular, the improvement of the practice of business-critical matter factor, which includes the capability of inventory management and flexibility to customer demand, is efficient in improving SCM performance. As a result of the analysis, we identified the existence of an undisclosed factor related to the ambiguous interpretation of the definition of SCM. A few firms experienced a reduction in SCM performance and a deterioration of the index of ability of inventory management, the reduction of lead time, and the level of on-time delivery. The Great East Japan Earthquake was thought to have had an adverse effect on SCM performance, thereby highlighting the importance of creating supply chain resiliency.
Adding Value to Logistic Delivery through Package Marketing Chiung-Lin Liu (National Taiwan Ocean University, Taiwan) Chun-Wei Chiang (Kerry Logistics, 14F, 50 Xinsheng South Road Section 1, Taipei City, Taiwan)
Abstract: The objective of this study was to evaluate whether package marketing can add value to logistic delivery and to discuss how package marketing influences customers’ purchase intention. A survey of 184 consumers in Taiwan was carried out using structural equation modelling. A direct positive relationship between attitude toward package marketing and attitude toward advertising was identified. Specifically, it was confirmed that attitude toward advertising plays a mediating role between attitude toward package marketing and purchase intention. Overall, when companies attach marketing advertisements in a package in the future, the key is to include advertisement contents that could result in consumers’ positive attitude and influence their purchase intention.
Self-Inflicted Supply Risk: An Empirical Investigation Sam K. Formby (Appalachian State University, USA) Manoj K. Malhotra (University of South Carolina, USA)
Abstract: This study seeks to better understand how internal firm decisions and the design of procurement processes affect supply risks and supply lead times. An in-depth field study was conducted through an interview process with experienced professional buyers from an integrated procurement, logistics, and materials management organization of approximately 300 staff members who manage $350 million annually in procurement spending. This organization serves a large manufacturing complex with seven manufacturing centers. Empirical lead-time data on approximately 58,000 procurement transactions completed in a six-month period were collected and analyzed. Results of the field study interviews and mixed effects multi-level analysis of procurement data found that supply decisions made by the plant operations staff before the procurement requests ever reach the buyer organization are a major driver of supply risks and extended lead-times. In addition, the most significant supply risks may not be related to the direct production inputs, but to the procurement of infrequently purchased direct and indirect material supplies needed to maintain factory reliability.
Framework of Stakeholder Reactions on Sustainability Risk Mitigation Practices and Sustainability Performance in Supply Chains Sirpa Multaharju (Lappeenranta University of Technology, Finland)
Abstract: Stakeholder expectations and interest in supply chain (SC) sustainability is increasing and hence, environmental and social performance of upstream suppliers may cause sustainability risks for a focal company. Different stakeholders weight environmental and social aspects of sustainability differently and also, adequate level of sustainability is viewed differently in the sense, how far beyond legal requirements a company should extend its sustainability demands for the suppliers. Respectively, stakeholders’ reactions to the investments in sustainable supply chain management (SSCM) may vary. Therefore, companies need to balance between the key stakeholders’ interests and appropriate sustainability practices in mitigating sustainability risks from suppliers and avoiding losses from various stakeholders’ reactions, which may affect the business performance. Also for further research, this paper develops a conceptual framework of how sustainability performance of a focal company and its SC may influence stakeholder reactions. With regards to SSCM, it suggests making a difference between the plain compliance with the law and market-driven sustainability practices beyond legislation.
Optimal Pricing Strategies for Bundled Channel in a Smart Phone Supply Chain Pradipta Patra (Woxsen School of Business, Hyderabad, India)
Abstract: We consider a smart phone supply chain in which customers purchase handsets and service as a bundled package. In this bundled channel, we consider three power structures- manufacturer Stackelberg leader, service operator Stackelberg leader, both manufacturer and service operator decide simultaneously. For each power structure, we study optimal decision of the manufacturer – retail price of smart phone and optimal decision of telecom service operator – service price of smart phone. Previous studies have assumed that “service price” is fixed, and service operator decides “subsidy amount” to be paid to the manufacturer. In our work, we relax this assumption and present some new insights. If the subsidy amount (paid by service operator to manufacturer) and service cost (incurred by service operator) are high, the manufacturer sets low retail price for smart phone hand set. If primary demand (for smart phones), subsidy amount and service cost are high, the service operator sets high service price.
Motivation Behind Reshoring Decisions in Manufacturing William White (US Air Force, USA) Andrew Borchers (Lipscomb University, USA)
Abstract: Manufacturing location decisions have significant business strategy implications and are often a contested political point (Tate, Ellram, Schoenherr and Petersen, 2013, Jensen, Malesky and Jensen, 2015). Firms are increasingly considering reshoring work either to their home or other countries (Tate, et al 2013). More importantly, many firms are now considering the design of their supply chains, including manufacturing locations, as a dynamic capability (Arlbjorn, 2014). This study investigates the factors firms consider in making decisions to reshore the location of manufacturing work. Ellram, Tate, and Petersen (2013) previously explored the factors involved in companies’ decisions on where to locate manufacturing and identified 29 motivational factors. This study seeks to identify the factors considered most important and of greatest risk to manufacturers in making their decisions. These questions led to two propositions dealing with importance and risk. Based on a sample of 300 supply chain professionals the researchers tested these propositions using a fuzzy analytical hierarchy process (FAHP). The research suggests that, consistent with the literature, labor cost is in fact the most important factor in making relocation decisions. Contrary to the literature, however, currency stability (and not country risk) was the factor considered to provide the greatest risk.
The Changing Business Landscape in Iran: Establishing Outsourcing Best Practices Mohammadreza Akbari (Australian Institute of Business (AIB), Australia) John L. Hopkins (Swinburne University of Technology, Australia)
Abstract: During an evolutionary period for Iran the aim of this paper is to identify a set of success factors, to inform enterprises who are now able to engage in the practice of outsourcing after the recent removal of long-standing US and UN sanctions, and contribute towards the formulation of a set of guidelines to assist these organisations and help deepen the understanding of recent economic developments in the Middle East. Primary research data was collected using a self-administered survey which required senior/executive managers from enterprises in Tehran to assess a set of outsourcing factors established by academic literature. The most important factors for achieving outsourcing success in Iran were found to be having a clear strategic vision and plan, understanding the intended use of outsourcing, and understanding how outsourcing aligns with organizational goals and objectives. The primary driver for adopting outsourcing is access to operational expertise and the sectors experiencing the greatest level of outsourcing success were the construction and IT industries. With little literature available on outsourcing in Iran this research addresses a clear gap in the current body of knowledge and contributes toward a deeper understanding of potential supply chain opportunities in this unique region. The findings will assist academic researchers, and contribute towards policy formation, and there are clear implications for Iranian enterprises who might be considering adopting outsourcing now that barriers permitting them from doing so have been removed.
Operations and Supply Chain Management: Toward Ten Years of Journey I Nyoman Pujawan (Institut Teknologi Sepuluh Nopember (ITS), Indonesia)
Abstract: This is an editorial paper. The objective of this paper is to provide a brief review of the papers published in Operations and Supply Chain Management: An International Journal (will be called OSCM Journal hereafter) since it is first published in 2008. As you can see in the data presented below, we have been able to attract papers from many countries indicating the truly international nature of the OSCM Journal. Our aim is to make OSCM Journal as one of the alternative outlet for publishing articles in the area of operations and supply chain management.
Challenges of Measuring Performance of the Sales and Operations Planning Process Hana Hulthen (Lund University, Sweden) Dag Naslund (University of North Florida, USA) Andreas Norrman (Lund University, Sweden)
Abstract: ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬The purpose of this study is to identify and structure challenges of measuringperformance of the Sales and Operations Planning (S&OP) process. A multiple case study methodology was applied. Qualitative data was collected via 22 structured interviews with managers from six case companies in various industries. A process oriented framework was proposed by structuring the challenges based on two key areas of process performance (effectiveness and efficiency) and different maturity levels of the process. A major challenge for all the cases,regardless of their maturity level, relates to defining of cross-functional trade-offs measures. Another major challenge was alignment of measures with business strategy and reward system. Additional common challenges for the different maturity levels were also found. While confirming some challenges from previous research, this study also finds new challenges, especially for more mature levels. Examples are standardization to support unbiased decision making, but also customization of measures for various organizational levels, and visualization of findings from the measurement to facilitate analysis. However, future research must validate and extend the results in other industries. The results offer challenges from a process oriented view and can serve as insights for managers when designing and implementing the S&OP process measures, or advancing from one maturity level to another. This research enhances understanding of the challenges to measure the S&OP process performance and adds to the S&OP literature and performance measurement literature.
The Role of An Orchestrator of 3PLs In Supply Chain Finance: A Conceptual Framework Xiaohong Liu (Central University of Finance and Economics, Beijing, China) Liguo Zhou (Central University of Finance and Economics, Beijing, China)
Abstract: This study aims to investigate the role of an orchestrator of third-party logistics service providers (3PLs) in the context of supply chain finance (SCF). SCF is the latest phenomenon to have emerged in the field of supply chain management (SCM). It is concerned with the optimization of financial flows and the integration of financing processes with all participating companies within the supply chains. By leveraging supply chain financing, small and middle - size enterprises (SMEs) are able to obtain funds from banks from which they could not borrow in conventional loaning systems. However, to perform a SCF model successfully, the role of 3PLs cannot be ignored. Drawing upon the discussions in the literature on supply chain orchestration of 3PLs, this study conceptualizes the orchestrator role of 3PLs in SCF. Three forms of 3PLs as an orchestrator in SCF are articulated accordingly.
The Effective Taxonomies of Mobile Phone Service Providers’ Operations Strategy across Countries: the Case of Arab Middle East Region Yazan Khalid Abed-Allah Migdadi (Yarmouk University, Jordan)
Abstract: The aim of this study is identifying the effective taxonomies of operations strategy of mobile phone service providers across countries. All Arab countries in the Middle East region were surveyed except Syria, and 27 out of 31 service providers were surveyed. Data collected from corporations’ annual reports, websites and other professional institutions published sources. K-means clustering analysis was used to develop clusters and ANOVA test was used to identify the significant differences across clusters in term of relative market share. The adopted taxonomies were; agile, lean oriented, product oriented and cost oriented. Agile, lean oriented and products oriented taxonomies are very close in relative market share and differ significantly from cost oriented. The widely adopted taxonomy across countries is agile.
Supply Chain Material Management Framework In Assemble To Orders (ATO) Irwana Abd Malek (University of Technology Malaysia, Johor, Malaysia) Abdul Rahman Abdul Rahim (University of Technology Malaysia, Johor, Malaysia)
Abstract: This study investigates and analyzes CSFs construct in SCM implementation to minimize product lead-time and to identify the relationship between reducing raw material lead-time and improving product lead time. Short delivery lead time and efficient management on material inventories are two crucial elements that determine the competitiveness of many contract assembly manufacturers, especially in contract manufacturing. Assemble-to-Order (ATO) environment has become popular because companies do not want to keep finished goods inventories that lead to an increase in operational cost. ATO manufacturing involves production only upon receiving confirmed orders from customers. Thus, this study focuses on Critical Success Factors (CSFs) in Supply Chain Management (SCM) implementation and develops a comprehensive SCM framework for ATO contract manufacturing. Raw material lead time and material management process flow are the main concerns in the SCM context and ATO manufacturing environment. This study investigates the CSF construct in SCM implementation to minimize the issues caused by the long product lead time and to identify the relationship between reducing raw material lead time and improving product lead time. Material classification, raw material improvement strategy, and suppliers’ relationships are reviewed to develop and enhance current material strategy in accordance with present situations. An overall supplier material management system will be developed to improve the entire supply chain system as well as information sharing and identification methods. Information sharing from manufacturers to suppliers and vice versa is important to ensure that manufacturers can obtain scheduled and timely production information. Information from manufacturers to suppliers provides an advantage for the suppliers to prepare the raw materials and capacity plan to meet ATO requirements. The framework is unique as it addressed the importance of CSFs constructs, planning and monitoring processes to continue the success in SCM implementation. This framework integrates most of the planning process as the first input. This includes demand planning, supply planning, demand fulfillment, replenish planning and lead time planning. The planning process covered all demand and supply from customers, suppliers and manufacturers perspectives. The framework integrates most of CSFs constructs namely product classification, material management strategy, information sharing, logistic management and supplier relationship. The monitoring process in this framework is a guideline to companies on continuous SCM implementation.
Assessing The Epic Framework: Guatemala Marilyn M. Helms (Dalton State College, USA) Steve LeMay (University of West Florida, USA) Michael J. Dwyer (14 Avenida 41-13 Zona 12, Colonia Villa Sol, Guatemala)
Abstract: The EPIC framework was developed by Srinivasan,
Stank, Dornier, and Peterson (2014) to assess supply chain
readiness from Economic, Political, Infrastructural and
Competence perspectives and was applied to 55 countries, a
monumental undertaking. However, the framework needs
further validation by applying it to other countries and using
other raters. This research does both. Guatemala, for example,
was not included in the 2014 EPIC ratings yet Guatemala is
ideal for studying supply chain readiness given their
participation and an anticipative role in CAFTA-DR
(Dominican Republic-Central America Free Trade
Agreement). Using Guatemala as a case, professionals in teams
of three to six individuals in Germany and the United States
applied the EPIC framework to judge supply chain readiness.
The findings may serve as a model for businesses entering these
sometimes operationally challenging markets. Areas for future
research are included.
Interdependence Among Inventory Types and Firm Performance Andrew S. Manikas (University of Louisville, USA)
Abstract: Extant research on lean manufacturing has focused on
the relationship between systemic inventory and performance.
However, limited research, if any, has focused on dynamics
between three main types of inventory – raw material, work-in-process,
and finished goods – and firm performance. Drawing on the interdependence framework and a sample of 1,286 firms representing 41,067 firm-quarter observations from 2000 to 2013, when considering two types of inventory efficiencies jointly, higher efficiency in the subsequent inventory type must be accompanied by lower efficiency in the previous inventory type. In other words, lower raw material inventory efficiency and higher work-in-process inventory efficiency, or lower work-in-process inventory efficiency and higher finished goods inventory efficiency are associated with higher performance. High performance is also realized only when inventory efficiency is increasing across all three
inventory types. The findings show that pursuing efficiency in one type of inventory requires lower efficiency in the previous inventory stage, and benefits of lean manufacturing could only be realized when all three inventory efficiencies are simultaneously high.
Food Security Is None Of Your Business? Food Supply Chain Management In Support Of A Sustainable Food System Ari Paloviita (University of Jyvaskyla, Finland)
Abstract: Food security is the principal outcome of any given food system and it can be defined in terms of a sustainable food system where the core goal is to feed everyone sustainably, equitably and healthily. A sustainable food system addresses needs for availability, affordability and accessibility, is diverse, ecologically-sound and resilient, and builds the capabilities and skills necessary for future generations. This paper
identifies the essential elements of food supply chain management in support of a sustainable food system, which ultimately enhances food security. The existing food supply chain and food system literature is synthesized in order to study the correspondence between public interests towards sustainable food and corporate interests. Giant food retailers, food processors and manufacturers, and food service supply
chains in particular, extend their global reach, influence food culture and may be more important in shaping food systems than governments. Thus, the paper proposes food security frameworks for both upstream and downstream supply chain management. It concludes that sustainable food system thinking and societal orientation towards food security can hold the key to unlocking the next wave of food supply chain
innovation and growth, and offers implications and suggestions for future research.
Analysis of Heterogeneous Indian Auto Component Replacement Suppliers: A Perspective On Simultaneous Entry Nimit Jain (Novartis Services Inc., USA) Suman Niranjan (Savannah State University, Savannah, USA)
Abstract: Competition on price alone is no longer sustainable. Increasingly, firms are competing on multiple dimensions such as service quality, performance quality, process technology, and product variety. In this paper we study how firms might make some of these decisions in a high margin and fragmented Indian auto component replacement market. Using game theoretic principles, we analyze the replacement market when the non-OES (original equipment suppliers, national/regional) makes decisions in presence of an OES. Along with this, we analyze the market when the OES and non-OES enter simultaneously and make decisions based on their risk appetite. Our results indicate that the investment in a more capable technology doesn’t necessarily lead to higher optimal price. More capable technology decreases the marginal cost which allows the firm to decrease the price but more capable technology also increases the share of market demand which allows the firm to price higher.
Planning Production Systems Resilience by Linking Supply Chain Operational Factors Kanchan Das (East Carolina University, USA) R.S. Lashkari (University of Windsor, Canada)
Abstract: A mathematical model is proposed to plan production
system resilience in a supply chain to overcome production
related disruptions using appropriate operational factors at
optimum cost. The research considers internally generated
disruption risks due to supply, quality management, and plant
reliability failures; and externally generated disruption risks
from natural calamities. The production system of a supply
chain has several options to utilize controllable operational
factors to inhibit or mitigate the risks it faces. The operational
factors are planned to mitigate the natural calamity disruptions
and to inhibit the internally generated risks to create resilience.
Since supply chain outcomes may be considered to be the net
effect of complex interactions among several operational
factors and resources, appropriate linkage of the operational
factors is the key to select the right option(s) to create system
resilience to contain risks and disruptions. Each operational
factor can influence more than one supply chain outcome or
relevant risk; on the other hand, containment of each risk may
need contributions from several operational factors. Selection
of the suitable controllable operational factors would be the
most viable option for resilience creation. The analysis of the
model outcomes establishes the effectiveness of the proposed
model based procedure in creating production system resilience
within an optimum cost using controllable operational factors.
The operational factors used are: supplier flexibility; plant
capacity flexibility; designating suppliers by a quality metric
based evaluation procedure to have ensured quality inputs;
quality metrics based plant capability determination and
allocating production to capable plants to have ensured quality
products. A numerical example illustrates the applicability of
the model.
Can Improved Transparency Reduce Supply Chain Risks in Cloud Computing? Olusola Akinrolabu (University of Oxford, UK) Steve New (University of Oxford, UK)
Abstract: As organisations move sensitive data to the cloud, their
risk profile increases due to the integrated supply chain utilised
in cloud computing. The risk is made visible in situations where
a cloud offering is federated, with customer data located in
multiple data centers, under the control of multiple providers
and sub-providers in different jurisdictions. This problem is
further exacerbated by the disposition of cloud providers to
keep details of suppliers, data location, architecture, and
security of infrastructure confidential from the cloud
customers. As such, the shallowness of transparency amongst
cloud providers makes it difficult for customers to assess the
risk of cloud adoption. In this study, we report on our research
into finding out how much customers know about their supply
chain. We evaluate the transparency of cloud providers based
on their published information and determine the resultant risk
of limited visibility of the supply chain. In the course of the
research, we identified eight transparency features, which, at a
minimum, cloud providers should make available to their
current or prospective customers, which we argue had no
adverse impact on the competitiveness or profitability of the
provider. The study concludes that ultimately, cloud supply
chain transparency remains a customer-driven process.
Feasibility of Nearshoring European Manufacturing Located in China to Russia Yulia Panova (National Research University Higher School of Economics, St. Petersburg, Russia) Per Hilletofth (Jonkoping University, Sweden)
Abstract: The purpose of this study is to identify and analyze
factors that support nearshoring of offshored European
manufacturing located in China to Russia. The attention is
paid to factors, such as labor cost, inflation, exchange rate,
and labor productivity that are analyzed based on
deterministic models to identify logical dependencies. This
study shows that wage growth might deprive manufacturing
in China from its main competitive advantage of cheap labor
in the forthcoming years. The growing wage rates naturally
contribute to the prime cost that is aggravated by the potential
inflation, which, in turn, limit the margin in the selling price.
The cumulative effect of other extra costs can aggregate such
an amount that, in the foreseeable future, companies would
need to relocate manufacturing to new locations. One option
could be to nearshore manufacturing to Russia.
Duration of Collaboration from a Market Perspective: An Agent-based Modeling Approach Niniet I. Arvitrida (Sepuluh Nopember Institute of Technology, Indonesia) Antuela A. Tako (Loughborough University, UK) Duncan A. Robertson (Loughborough University, UK) Stewart Robinson (Loughborough University, UK)
Abstract: Maintaining a long-term partnership with a supplier is
considered an effective strategy to achieve collaboration
success in supply chain management (SCM). However,
individual companies find that this approach does not always
improve business performance. In this paper, an agent-based
model (ABM) is developed to investigate the effect of duration
of collaboration on supply chains from a market perspective.
The model represents two-stage supply chains of an innovative
product market, involving suppliers and manufacturers. The
model outputs are measured by the rate of demand fulfilment
and the number of supply chains which can survive in the
market. The results show that duration of collaboration has no
significant impact on both demand fulfilment and
survivability of supply chains. This finding contradicts the
common belief held in the literature about the benefits of longterm
collaboration, but it corroborates examples encountered
in practice. This study provides new insights to the practice of
supply chain collaboration by taking a market perspective.
The results show that a longer duration of collaboration does
not provide a significant improvement to the supply chain's
competitiveness from a market point of view, in terms of
demand fulfillment and supply chain's ability to survive over
the long-term. The implications of this finding to practice are
discussed in the paper.
A Time-dependent Vehicle Routing Algorithms for Medical Supplies Distribution Under Emergency Tsai-Yun Liao (National Chiayi University, Chiayi City, Taiwan, R.O.C.) Ta-Yin Hu (National Cheng Kung University, Tainan, Taiwan, R.O.C.) Yu-Wen Wu (National Cheng Kung University, Tainan, Taiwan, R.O.C.)
Abstract: On 27 June 2015, flammable starch-based powder
exploded at Formosa Fun Coast, a recreational water park in
Bali, New Taipei, Taiwan, injuring 508 people, with 199 in
critical condition. During the emergency medical distribution,
two processes, casualty transportation and relief distribution,
are poorly coordinated and performed. The medical relief
distribution process can be described as vehicle routing
problems with pickup and delivery under time-windows
(VRPPDTW). Under Intelligent Transportation Systems
(ITS), information can be gathered from roadside surveillance
systems to design efficient and effective routes for medical
relief distribution. In this study, a time-dependent VRPPDTW
formulation is constructed based on the concept of step
function and a solution algorithm is proposed to solve the
VRPPDTW problem. Numerical experiments based on a city
network with three hospitals are used to illustrate the
proposed algorithms under different levels of traffic
conditions.
An Operational Metric or An Operational Capability? The Role of Growth in Inventory Efficiency Growth Andrew S. Manikas (University of Louisville, Louisville, USA) Pankaj C. Patel (Villanova University, Villanova, USA)
Abstract: Inventory efficiency is used as an operational benchmark
in comparing performance against competitors. In this study,
we propose extending to inventory efficiency growth over time
on performance. Analyzing data from 1,286 US firms from 2003
to 2013 reveals that firms with significant improvements in
inventory efficiency over time realize higher performance.
Marketing efficiency, operational slack, and negative sales
surprise negatively affect inventory efficiency growth. Overall,
to realize higher performance, managers must aim to improve
inventory efficiency growth over time and manage three levers
of marketing efficiency, operational slack, and negative sales
surprise.
Supply Chain Risk Classification Schemes: A Literature Review Manoj Hudnurkar (Symbiosis Centre for Management and Human Resource Development, India) Sujeet Deshpande (Symbiosis Centre for Management and Human Resource Development, India) Urvashi Rathod (Symbiosis Centre for Information Technology, India) Suresh K. Jakhar (Indian Institute of Management Lucknow, India)
Abstract: The objectives of this paper are to review journal articles
published between 2003 and 2015 related to supply chain risk
sources, with a view to list and define supply chain risk sources
identified by various researchers and critique the various
supply chain risk classification schemes. For the purpose of this
literature review, we adopted the methodology of a content
analysis based literature review. Towards this end a conceptual
risk classification framework was defined and supply chain
risks identified by various researchers mapped into it. An
analysis of the surveyed literature revealed the various supply
chain risk sources and associated risks identified by the
researchers. It is seen that while supply chain risk classification
has been done by several researchers, it is not the main focus
area of research for a majority of researchers but appears
supplementary to other research goals. While the various
supply chain risk classification schemes reviewed have
sufficient breadth or depth to effectively address the diverse
variety of supply chain risks, some important risk sources like
product characteristics and returns processing have scope for
further research. A new, comprehensive conceptual risk
classification framework has been defined for the literature
review. The review takes into account the current thinking on
concept of risk and supply chain risks.
Supply Chain Management Integration in Maintenance and Repair Services Sector Arthur deSouza (University of Liverpool, Liverpool, UK) Abubaker Haddud (University of Liverpool, Liverpool, UK)
Abstract: The paucity of studies in the field of supply chain
management (SCM) focusing on repairing and maintenance
operations within the services sector is an undeniable reality. It
is important to explore how operations of maintenance and
repair services (MRS) are nowadays structured and positioned
to understand their contributions to SCM effectiveness. This
research explored the integration level between internal
functional areas of services organisations and principal
business processes of suppliers and customers. The research
also identified key barriers faced by SCM practitioners when
deploying SCM best practices and models across the repair
services providers. The primary data was collected from 89
SCM leaders and managers from organizations working in a
Middle-Eastern country through the use of an online survey.
The results revealed that there is a good level of internal
integration between main business functional areas within
MRS operations, e.g. material planning, purchasing, logistics,
contracts, finance, and sales, with exception of reverse logistics,
an important business function to the effective management of
product services supply chain (PSSC). The study also revealed
a partial level of external supply chain integration among local
PSSCs participants, wherein only three SCM business
processes; i.e. suppliers’ relationship management, order
fulfilment, and service delivery management, are significantly
integrated at interorganizational levels. Other crucial processes
of SCM for PSSCs; customer relationship, services demand,
services capacity, resources management, product and
information flow management, and service product
development, were all identified with a medium level of
integration among local operations, which prevent local MRS
organisation from generating additional values in terms of
services and products quality improvement, product lifecycle
management, and development of innovative services solutions
to the market. The study also revealed that organizational
cultures, resources availability, lack of vision and
comprehension from top management, and absence of trust and
collaboration within SCM participants are the main obstacles
associated with the deployment of models and SCM best
practices within repairing services operations.
The Adopting of Markov Analysis to Forecast the Operations Competitive Advantages of Mobile Phone Service Providers: The Case of Jordan Yazan Khalid Abed-Allah Migdadi (Yarmouk University, Irbid Jordan)
Abstract: The aim of this paper is to adopt the Markov analysis to forecast the operations competitive advantages of mobile phone service providers in Jordan. Three service providers were investigated. The secondary data of each service provider over the period (2005-2010) was used for the purpose of study. The Markov analysis was used to develop the series of forecasted competitive position index for each service provider, and then regression analysis was used to forecast the changes in operations competitive positions. The result showed that; the competitive position leader service provider which is Zain will be improved in term of network coverage, cost of calls services and network accessibility. But the follower (Orange) competitive position will be improved in term of cost of calls services, number of basic and entertainment services. The laggard (Umniah) competitive position will be deteriorated over time. This is the first study which adopts Markov analysis to forecast the operations competitive position. The managers of the corporations in Jordan have a clear insight about their future competitive position. The leader and follower can sustain their position, but the laggard should make further development in order to avoid the deterioration of its position. The scholar can benefit from the methodology of this paper to adopt Markov analysis to forecast the operations competitive position.
Sourcing from China: A Literature Review of Motivations, Outcomes, Problems, and Solutions Kristina Kerkhoff (Jonkoping University, Sweden) Kevin Kaul (Jonkoping University, Sweden) Per Hilletofth (Jonkoping University, Sweden) David Eriksson (Jonkoping University, Sweden)
Abstract: Today’s fast changing environment and increasing customers’ demands require that companies focus on efficiency along the entire supply chain. In order to achieve competitiveness, global sourcing is a common strategy. Especially sourcing from China is an accustomed practice and the topic of discussion by various academics and practitioners. Even though this topic is discussed extensively in literature, little focus is put on motivations, outcomes, problems and solutions when sourcing from China. The purpose of this study is to explore and analyze sourcing from China sourcing with regard to motivations, achieved outcomes, experienced problems as well as solutions to the problems. The results showed that it is crucial to recognize the importance of problems that can occur during global sourcing processes. As to achieve the desired outcomes, it is vital that companies address the problems by developing appropriate solutions. Motivations, outcomes, problems and solutions contain essential aspects that have to be considered and worked upon during a global sourcing process.
Drivers of Outsourcing and Selection Criteria of 3rd Party Logistics Service Providers Habibullah Khan (Khadim Ali Shah Bukhari Institute of Technology, Karachi Pakistan) Syed Karamatullah Hussainy (Khadim Ali Shah Bukhari Institute of Technology, Karachi Pakistan) Abdullah Khan (Khadim Ali Shah Bukhari Institute of Technology, Karachi Pakistan) Kamran Khan (Khadim Ali Shah Bukhari Institute of Technology, Karachi Pakistan) Umer Farooq (Khadim Ali Shah Bukhari Institute of Technology, Karachi Pakistan) Mohammad Masood Mir (Khadim Ali Shah Bukhari Institute of Technology, Karachi Pakistan)
Abstract: Previously various studies were conducted concerning the outsourcing and selection of 3PL in different countries but this study aims to find out the reasons of outsourcing and selecting a 3PL from the different industries of Pakistan. The study aimed to collect the data from the manufacturers working in different industries in Pakistan. The researchers have used mean testing to rank the factors as per their importance and the data of 125 respondents were gathered for analysis. Study has found that reduction in the logistics costs is the most important reason for outsourcing 3PL and service quality is the most crucial factor for the selection of any 3PL service providers in Pakistan. The research aims finding the factors for the reasons of outsourcing and selection of a 3PL but it would be useful finding the impact of outsourcing the logistics activities on the organization’s performance through qualitative and quantitative approaches. The research provides a vital and practical direction to the Pakistani organizations regarding the decisions of outsourcing and selecting a 3PL service providers. The research will help finding the reasons of outsourcing and selection of any 3PL party. The research aims finding the reasons and selection of 3PL in the organizational perspective of Pakistan as there are very limited past conducted studies.
Modeling Enterprise Risk Management in Operations and Supply Chain: A Pharmaceutical Firm Context Chris I. Enyinda (Canadian University Dubai, Dubai, UAE)
Abstract: The growing prevalence of disruptive influences in modern operations and supply chains has called for a systematic approach to identify risk sources and to develop predictive enterprise risk management. This imperative has become a top priority for many organizations such as the pharmaceutical industry. This paper leverages a multi-criteria decision making methodology to model enterprise risk management in a focal pharmaceutical firm operations and supply chain. Six types of risks and five strategies are considered and analyzed. Results suggest that supply chain executives attach great importance to regulation/legislation, followed by operational, and reputation risks, while financial, market, and relationship risks ranked low in importance. With respect to enterprise risk management strategies, risk reduction/mitigation was considered the best option followed by risk avoidance option. From the results, it appears that multi-criteria decision making methodology can be used to assist supply chain executives in developing a priority hierarchy for risk management strategies. It can also help the management with a step-by-step approach to identify, assess, and manage portfolio of risks that can be detrimental to their pharmaceutical supply chain performance, brand equity, profit growth, and shareholder value.
A Study on the Maritime Transport Network Design under Different Charter Rates: The Case of LNG Transport between Qatar and Turkey Salem Y. Lakhal (Universite de Moncton, Canada)
Abstract: Many indicators show that the total global LNG demand has risen by an estimated 7.6% per year since 2000. Over the same period, the growth is almost three times faster compared to the natural gas growth estimated at 2.7% per year. As a consequence, the number of the LNG tankers trip from and to the production fields and the consumptions area is growing. The challenge is to design a cost efficient maritime route for an LNG tankers. This article investigates: (i) how, the frequent fluctuation of the Bunker price, the Suez Canal tolls, terrorism activities etc. might affect decision of the LNG Tankers maritime routes and (ii) suggest a framework to help the redesign of a maritime transport routes for LNG vessels. To illustrate this framework developed, the case of the LNG transport between Qatar and Turkey is analysed with an extension made to a maritime route from Asia to Europe. The paper's contribution to the literature is the development of a routing scheme design achieving LNG handling cost savings from Asia to Europe.
Pursuing Sustainability via Reverse Logistics: The Symbiosis Effect Between the Local Authorities and Householders Emy E. A. Jalil (University of Utara Malaysia, Malaysia)
Abstract: This paper reveals how factors associated with household recycling systems affect household recycling behaviour, and how household recycling behaviour affects the provision of household recycling systems by the local authorities (LA). The main objective is to reveal and explain the interaction and symbiosis effects between household recycling system and household recycling behaviour. Using a mixed methodology stance, the first approach is a qualitative research stage supported the symbiosis effect between the LAs and the householders. The second approach is quantitative research stage employed multiple regression analysis that juxtaposed the existence of interactions between personal factors and situational factors which the representation of LAs and the householders respectively. Finally, co-examination between the first and second stages revealed the need to use symbiosis effect perspective in understanding backward movement between householders and household recycling waste systems. This study has found that a "symbiosis effect" perspective appears to be a robust framework to bring together effective household waste recycling systems and sustainable development considerations to enhance both sustainability and the economy. Further, the study provides empirical evidence examining both situational and personal factors of households and their interactions, which were previously not well-understood. This study has incorporated behavioral aspects in the reverse logistics process that should help improve the LAs’ planning processes.
Role of Big Data in Decision Making Shirish Jeble (IBS Business School, Pune, India) Sneha Kumari (Symbiosis International University, Pune, India) Yogesh Patil (Symbiosis International University, Pune, India)
Abstract: Information systems coupled with internet, cloud computing, mobile devices and Internet of Things have led to massive volumes of data, commonly referred as big data. It includes mix of structured, semi-structured and unstructured real-time data, constituting of data warehouse, OLAP, ETL and information. Business firms and academicians have designed unique ways of tapping value from big data. There is a great scope of using large datasets as an additional input for making decisions. The aim of the paper is to explore the role of big data in these areas for making better decisions. Here we explore how big data can be used to make smart and real-time decisions for improving business results. The paper undergoes literature review and secondary data to provide a conceptual overview of potential opportunities of big data in decision making. The paper discusses the concept of big data, its role in decision making and also the competitive advantage of big data for different firms. The paper also discusses a framework for managing data in decision making. The topic must be addressed for taking better decisions for firms which will contribute to high quality knowledge.
Logistics Capability, Supply Chain Uncertainty and Risk, and Logistics Performance: An Empirical Analysis of Australian Courier Industry Michael Wang (Federation University Australia, Australia) Ferry Jie (Edith Cowan University, Australia) Ahmad Abareshi (RMIT University, Australia)
Abstract: The purpose of this paper is to examine the applicability of logistics capability for mitigating supply chain uncertainty and risk and improving logistics performance in the Australian courier industry. Based on the resource-based view, a quantitative research study is designed to investigate the relationships among three latent variables: logistics capability, supply chain uncertainty and risk, and logistics performance. Structural equation modelling is used to analyse the data. The results indicate that there are significant relationships between logistics capability, supply chain uncertainty and risk, and logistics performance. The results provide insights into supply chain uncertainty and risk management. This paper provides empirical support for the resource-based view as it applies to mitigating supply chain uncertainty and risk management in the Australian courier industry. These findings suggest that managers might develop and deploy logistics capability to support and enable supply chain risk management strategies.
An Improved Efficient Algorithm for Time Dependent Vehicle Routing Xin Chen (Southern Illinois University Edwardsville, Illinois, United States)
Abstract: A universal challenge in solving a variety of vehicle routing problems (VRPs) is the exponential increase of computation time when the number of entities such as roads, vehicles, and destinations increases. This article studies a class of VRPs in which multiple vehicles located at different locations are dispatched to multiple destinations. Real time VRP in large road networks with time dependent travel time remains a challenge because computation time for the optimal vehicle routes and assignment increases significantly as the size of road networks increases. This article (a) applies a shortest path algorithm with arc labelling to reduce required computer storage space; (b) develops a revised Hungarian method to minimize the latest arrival time and total travel time; and (c) uses appropriate computer programs and tools to reduce computation time for optimal vehicle routing. The algorithm developed in this article identifies the optimal vehicle routes and assignment in six minutes for large and dense road networks.
Development of a Disaster Relief Logistics Model Minimizing the Range of Delivery Time Kei Kokaji (Tokyo Metropolitan University, Japan) Yasutaka Kainuma (Tokyo Metropolitan University, Japan)
Abstract: On March 11, 2011, the Great East Japan Earthquake (GEJE) attacked the North-Eastern Parts of Japan and the scale of the earthquake was the largest in recorded history in Japan. Despite Japan’s great efforts in this disaster relief operation, relief goods did not reach the affected area. Managing disaster relief operations in the disaster situation like the GEJE is complex. Therefore, it became clear that the logistics system in the situation of a disaster had a lot of problems. In disaster situation like the GEJE, organizing the relief supply operations to afflicted people can be efficiently conducted. There are many disaster relief operations issues that need to be considered and resolved through logistics. Especially, it is very important that the distribution to the many victims is conducted equally. In this study, from the point of flow of distribution relief goods to the victims, we focus on the relationship between the shelter and the secondary collection point. The purpose of this study is to propose a logistics model that achieves the fair distribution for the many victims from the view point of the difference of the arrival time. In the earthquake, there were many routes that were unavailable and there was a limit to the number of cars that was available because of shortage of fuel. While considering these phenomena, we propose the logistics model that minimizes the range of the delivery time that the victims received relief goods from the transportation vehicles. Finally, in order to confirm the effectiveness of the proposed model, we perform the numerical experiments using the data of the Great East Japan Earthquake and the efficiency of the model is confirmed.
Understanding Intra-organisational Information Dependency: An Empirical Network Analysis of Vietnamese Freight Forwarding Industry Leon Teo (RMIT University, Australia) Duy Dang-Pham (RMIT Vietnam, Vietnam ) Mathews Nkhoma (RMIT Vietnam, Vietnam ) Thanh-Thuy Nguyen (RMIT Vietnam, Vietnam )
Abstract: The use of timely, accurate, and relevant information is crucial for supply chain performance. Within business firms, executives and managers depend on demand and inventory data to make decisions for business operations. In this technological era, many firms are reliant on technological platforms to share mission critical information between their business units to prevent bullwhip effect due to information lag, and to improve coordination and collaboration among the units. Extant literature reveals that there is a strong research emphasis on information sharing practices between firms, and little on the information sharing practices within the firms for supply chain efficiencies. There is also limited research done to understand the impacts of information quality e.g. sharing mechanism, accuracy, timeliness and relevance have on the management of supply chains. Research often tend to focus on information sharing practices in modern businesses that utilises sophisticated IT systems for supply chain management, and neglects the business firms that operating in less developed environments. To investigate implications of information quality on supply chain efficiencies, this paper utilises social network analysis (SNA) to study information flows in the firms that operate in the Vietnamese freight forwarding industry.
Use of Quantitative and Qualitative Methods for Modelling Green Supply Chains Blanka Tundys (University of Szczecin, Poland)
Abstract: Interest in the field of the development and implementation of the principles of green supply chains is increasing. Among theorists and practitioners of management, they are seen as a new trend and an innovative strategy. Ever-increasing customer requirements, the development of economies in the direction of closing the loop and the depletion of resources lead to a situation in which innovative solutions (including green supply chains) should be implemented. Qualitative and quantitative tools are used to assess their operations. This paper focuses largely on aspects of quantitative statistical methods that are used to assess individual elements of a supply chain, as well as a holistic approach to the evaluation of the entire chain. The methods that were chosen are an attempt to build a framework for a model and determine which of the tools are used in practice. The analysis includes an indication of the advantages, as well as the limitations, of the use of particular instruments. The second part of the paper includes an analysis of qualitative tools, devoting particular attention to tools and instruments from the area of management.
An Integrated Lean Supply Chain Framework for U.S. Hospitals Subhajit Chakraborty (Coastal Carolina University, USA) Jorge A. Gonzalez (The University of Texas Rio Grande Valley, USA)
Abstract: We apply a lean supply chain framework to the healthcare industry in the U.S., drawing support from lean systems philosophy. We conceptualize a view of the U.S. healthcare ecosystem that places a hospital and its admitted patients at the center and describes how all entities inside and outside the hospital work can implement lean principles to improve patients' quality care. This application depicts how a holistic consideration of hospital resources available in both the internal and external supply chain would increase the optimal use of such resources and ultimately serve patients. We offer propositions suggesting that an integrated supply chain perspective would be helpful for delivering high quality of care to patients admitted to the hospital. This perspective suggests that hospitals need to streamline the three types of flows–physical product, information and financial–with elements in the internal supply chain and maintain collaborative relations with entities in their external supply chain. We discuss theoretical and practical implications of our research.
Enterprise Resource Planning System Implementation: A User Perspective Ewout Reitsma (Jonkoping University, Sweden) Per Hilletofth (Jonkoping University, Sweden) Umer Mukhtar (GIFT University, Pakistan)
Abstract: The purpose of this study is to evaluate critical success factors (CSFs) for the implementation of an enterprise resource planning (ERP) system from a user perspective. Users play a vital role when implementing an ERP system, but their perspective has been neglected in the literature. A better understanding of their perspective promises to contribute to the design of more effective ERP systems, its implementation, and management. In order to identify the user perspective, a survey was conducted within three organizations from Pakistan that have recently implemented an ERP system. The questionnaire was developed based on thirteen CSFs deduced from literature. Based on each CSF’s level of importance, they are ranked in order of importance and divided into three groups: most important, important and not important. Findings reveal that users of the three organizations in Pakistan believe that the implementing organization should prioritize the following four CSFs when implementing an ERP system: education and training, strategic decision-making, communication, and business process alignment.
Dynamic Response of Risk Management Model to Mitigate Impact of Maritime Regulatory Changes: Oil Tanker Owners Perspective Pratomo Setyohadi (Institut Teknologi Sepuluh Nopember, Indonesia) K.B. Artana (Institut Teknologi Sepuluh Nopember, Indonesia) Djauhar Manfaat (Institut Teknologi Sepuluh Nopember, Indonesia) R.O.S. Gurning (Institut Teknologi Sepuluh Nopember, Indonesia)
Abstract: The contemporary shipping industry is a high-risk business activity that is highly regulated by the International Maritime Organization (IMO). Changes in IMO regulations are often triggered by major incidents that bring safety at sea into public view. They may address ship instruments, operation, cargo, crew, environment, security and safety, and can generate higher Capital Expenses (CAPEX) and Operational Expenses (OPEX) for shipping businesses. Oil tanker owners are key stakeholders in the shipping industry and are most exposed to the risk of higher on-cost expenses both for CAPEX and OPEX. Between 2006 and 2019, regulations regarding oil tankers were changed six to seven times per year. This paper assesses the financial impact of changes in major international maritime regulations, primarily, the International Convention of Safety of Life at Sea (SOLAS), MARPOL, and STCW. The methodology involves using a risk matrix from a specific company and combining it with system dynamics to forecast the dynamic effect of such changes on the oil tanker market. The result shows that changes in regulations can have a catastrophic impact on the sustainability of the oil tanker business.
Strategies for Managing Excess and Dead Inventories: A Case Study of Spare Parts Inventories in the Elevator Equipment Industry Oguji Nnamdi (University of Vaasa, Finland)
Abstract: Spare parts organizations of elevator original equipment manufacturers (OEM) face enormous challenges on how to manage their excess and dead inventory due to the life-cycle of the equipment. On one hand, the long life-cycle of equipment’s requires that organizations ensure the provision and availability of the spares until equipment termination / retirement. On the other hand, these organizations need to control their inventory carrying cost, inventory write-offs and ensure that only needed spare parts are available for their customers. This study explores operations and inventory strategies for reducing and controlling excess inventory. Through a combination of literature review, root cause analysis and the implementation of these strategies in a case company, a managerial tool-box for managing and controlling excess inventory was developed. Root causes of excess inventory were shown to be due to data errors in inventory planning parameters, inappropriate demand forecasting methods, lack of ownership, lack of part life-cycle management and part life-cycle pricing as well as internal practices within the organizations. The paper proposes managerial tool-box that includes both Strategic (ownership and key performance indicators, strategic policy on reverse logistics, customer buy-backs, large purchase volumes for sourcing savings, leveraging Big Data and Analytics); Reactive (lateral transshipment, scraping & disposal of excess inventory, sales discounts, spare parts dismantling into sub spare parts) and Proactive (Croston/SBA forecasting, exception management for data errors, tool/algorithm for new spare parts forecasting, part replacement control measures, forecasting sudden decrease in demand and part life-cycle pricing) measures on how excess inventory can be controlled and reduced.
Personal Relationships and Higher Agency Costs: Study of Buyers and Suppliers in Australian Manufacturing and Service Sector Atif Saleem Butt (Monash University, Australia)
Abstract: Personal relationships (i.e. friendships) have been the subject of much research in the business discipline, with the majority of literature focusing on how personal relationships yield positive firm-level outcomes. However, personal relationships are not without drawbacks and may lead to negative outcomes for the firms involved. Despite this, the current body of knowledge on this issue is relatively fragmented. This paper addresses this important gap in the literature. For exploratory purposes, the study is qualitative in nature. Based on a grounded theory approach, a model is developed describing how personal relationships embedded within inter-firm relationships lead to negative outcomes for the firms. Overall, 16 in-depth interviews with seniormanagers of buying and supplying firms were undertaken. Results from this study exhibit that managers engage in exploitation of personal relationships by demanding higher sales commission, higher bonuses and higher salaries from their respective firms, leading to higher agency costs. Firms can use these finding to understand explicitly what types of negative consequences personal relationships yield. Further, this study presents to firms specific actions that managers of buying and supplying firms engage in, when a personal relationship is present between them in the supply chain Finally, this paper concludes by providing several constructive guidelines to firms on managing personal relationships within inter-firm relationships in order to mitigate its negative firm-level consequences.
Optimizing the Total Cost of an E-waste Reverse Supply Chain Considering Transportation Risk Linh Thi Truc Doan (University of South Australia, Australia) Yousef Amer (University of South Australia, Australia) Sang- Heon Lee (University of South Australia, Australia) Phan Nguyen Ky Phuc (Ho Chi Minh International University, Vietnam)
Abstract: Due to technological boom, the quantity of electronic goods is significantly growing. After their useful life, they become e-waste which has considerable impacts on the environment and society. To mitigate the issue, the reverse supply chain (RSC) has been investigated to reuse components or recycle raw materials contained in e-waste. The total cost of RSC operation is one of the vital issues which has been receiving more attention from both industry and academia. The existing research concentrates on minimizing the overall cost of the system like transportation, operating, disposal and fixed costs. However, risks normally involved during the transportation of e-waste in RSC network has not been addressed. These risks might involve collection delays, breakdown of trucks, accidents and the variation of hazardous materials which can result in unexpected disruptions and significantly higher cost. Currently, there is no research incorporating transportation risk in RSC operation. This paper is aimed to develop a mathematical model for the total cost minimization of an e-waste RSC system with consideration of transportation risk. A mixed integer linear programming is applied in the proposed model and solved by an optimization software. To illustrate the applicability of the proposed model, a numerical example is also examined. The results of this paper can decide the optimal locations for treatment centers and the flow of used products or components delivered within an e-waste RSC network. This result can support managers to design an e-waste RSC network whilst transportation risk factors are considered.
The Effects of e-Business on Supply Management Anni-Kaisa Kähkönen (Lappeenranta University of Technology, Finland) Katrina Lintukangas (Lappeenranta University of Technology, Finland) Veli Matti Virolainen (Lappeenranta University of Technology, Finland)
Abstract: The exploitation of e-business has become one of the primary conditions of doing business in the current business environment. Companies have moved to web-based business to business platforms where transactions are done efficiently and in a fast pace. The importance of e-business technology has grown significantly in supply management as well. Therefore, this study examines the effects of e-business on supply management using data collected from 100 Finnish firms. Moreover, light is shed on the targets of e-business and the changes caused by e-business in supply management and how these changes have influenced the firm’s competitive and bargaining positions. The results of the study show that the main targets of e-business in supply management are cost and time savings and process development. It was also found that e-business has caused changes in supply chains and networks in terms of bargaining and competitive position.
Integrating Sustainability in the Design and Planning of Supply Chains Kanchan Das (East Carolina University, USA) Amit Mitra (Auburn University, USA)
Abstract: This research integrates factors and practices relevant to environmental and economic sustainability and, thereby, encapsulates social responsibility in supply chain (SC) design and planning to enhance its overall performance. Such factors and practices are included in the design and planning model as proactive inputs to face the potential cost impacts as well as to achieve desirable benefits. A feature of the model is to incorporate performance of the SC relative to benchmark /target values and consider options to reduce gaps for improving overall sustainability performance of the business. The model considers measurable key characteristics of the factors in a closed loop SC to have a tangible effect on the bottom line and improve the company’s image to customers with a keen view of sustainability in mind. The research outcomes show effectiveness of the proposed target based planning to pinpoint crucial sustainability indices and select appropriate options to improve the indices and overall performances within desirable bounds on cost. A numerical example is illustrated to aid managers to design and plan such SCs for their businesses.
Analysis of Challenges Faced by Indian Logistics Service Providers Anchal Gupta (Delhi School of Management, Delhi Technological University, India ) Rajesh Singh (Management Development Institute, Gurgaon, India) Pradeep Suri (Delhi School of Management, Delhi Technological University, India )
Abstract: In developing country like India, logistics sector is in booming stage and grabbing opportunities to grow infinitely. Currently, Logistics sector contributes around 14% in GDP in India. Boom in e-commerce industry and initiatives like MAKE in India, will definitely bring substantial growth for Logistics Service Providers (LSPs). The LSPs need to redesign their strategies in order to grab all upcoming opportunities. Many challenges are faced by logistics service providers in order to deliver shipments on promised time and in desirable condition. Although, Government has already initiated several mega projects to support LSPs but still it is not synchronized with increased industry requirements. Fragmented and unorganized sector, Infrastructural bottlenecks and Cost implications etc. are the main challenges which come across in delivering high quality services to the end customers. In this study, it has been attempted to identify and analyze the key challenges which impede the effective service quality of logistics service providers. Based on the literature review and experts’ opinion, ten key challenges faced by logistics service providers are identified. A structural relationship model is developed by using Interpretive Structural Modeling (ISM) and further challenges are categorized as drivers, dependent, autonomous and linkage variables based on their driving and dependence power with the help of MICMAC Analysis. Based on MICMAC analysis, three challenges have been identified as dependent variables, four as drivers, one as autonomous and two as linkage variables. The study is expected to provide useful inputs to practitioners and service providers itself in terms of crafting better strategies which can overcome the identified challenges and can design better solutions for delivering better service quality to their customers.
An Optimal Model at the Interface of Operations with Social Media Marketing Sunantha Teyarachakul (California State University, Fresno, USA)
Abstract: Social media sales and the logistics of products is being shuttled into a new technological paradigm. The purpose of this paper is to review the role of social media sales force and its effects on lot size process and the pricing under an infinite-time horizon assumption. We begin with reviewing the role and importance of social media in business; with a focus on the mathematic deterministic model for decision making that offer ways in which social media influences each step. Scenarios are specifically considered. In the first scenario, price is determined by the market. What size to hold inventoried products and what to budget for promotions on a social media platform are the important variables in market determined pricing. In the second scenario, price is examined by the decision maker based on maximizing the profit margin. In this first case scenario, advertising and product prices are jointly considered to maximize the profit margin. In this second case scenario, lot sizing is considered to minimize costs of holding inventories and placing orders. In both scenarios, the profit function outcome is concave. Therefore, the model optimizes solutions for pricing, lot-sizing for social media advertising policies.
A Review of Behavioral Decision Making in the Newsvendor Problem Abhishek Sharma (Indian Institute of Management Rohtak, Haryana, India) Shirsendu Nandi (Indian Institute of Management Rohtak, Haryana, India)
Abstract: Schweitzer and Cachon (2000) demonstrated that choices of decision-maker in the newsvendor problem setting systematically deviate from those that maximize their expected profit. Since then, a large body of empirical and theoretical studies has been published to describe the newsvendor decision-making behavior. To establish further, the purpose of this paper is twofold. First, it identifies the various behavioral theories and biases that explain the newsvendor behavior by employing a systematic literature review of peer-reviewed articles published in leading journals from 2000 to 2017. Second, it classifies and analyzes the identified literature from three dimensions of human behavior namely: individual decision making biases, social preferences, and cultural aspects. Our findings from the review show that research has primarily emphasized individual decision making biases while social and cultural aspects lack analysis and are worthy of investigation. Finally, we discuss some directions for future research, followed by the conclusion and limitations of this review.
Sustainability and Optimization of Supply Chains: a Literature Review Zlatan Mujkic (Lappeenranta University of Technology, Finland) Ardian Qorri (Lappeenranta University of Technology, Finland) Andrzej Kraslawski (Lappeenranta University of Technology, Finland)
Abstract: Sustainability of supply chains (SCs) and supply chain optimization is a topic of increasing interest in academia and industry. Although several authors have studied various aspects optimization and sustainability of SC, there is still a gap in understanding sustainable development of SCs. The aim of this study is to bridge this gap and to better understand interdependencies between economic, environmental and social dimensions of sustainability. To fulfill the research objective, this study examines 50 peer-reviewed articles published literature in the field of sustainable SCs and SC optimization. Selected papers used mathematical modeling techniques (optimization) as research methodology combined with one or more dimensions of sustainability. Findings of this work indicate that there are several SC optimization models addressing all three dimensions of sustainability simultaneously, and social dimension of sustainability is the least studied aspect. Furthermore, an application taxonomy of mathematical modeling approaches used in sustainable SCs is provided. Future research should shift the focus from models dealing primarily with economic and environmental dimensions towards more balanced models that include all three sustainability aspects. This paper enhances understanding how was sustainability principles are incorporated into mathematical models for SC optimization, and provides SC optimization models with pertinent sustainability indicators.
Supply Chain Risk Assessment: a fuzzy AHP approach Kunal Ganguly (Indian Institute of Management Kashipur, India) Gopal Kumar (Indian Institute of Management Raipur, India)
Abstract: Managing supply chain risk is a big challenge for any organization. The purpose of the paper is to provide a methodology for assessing supply chain risk using the Fuzzy based Analytic Hierarchy Process (Fuzzy AHP). This study presents a comprehensive study to identify the Risk Factors (RFs) in supply chain and evaluate them. In this paper, sixteen risk factors were identified based on extensive literature survey. To limit the scope of the work, focus was on transaction and infrastructural risk and avoiding the demand risk. The RFs are formulated as hierarchy structure and Fuzzy AHP as a Multi Attribute Decision Making (MADM) tool applied to judge the viable candidates. A revised risk matrix with a continuous scale was proposed to assess the RFs classes. The result classifies the RFs in different categories (Extreme, High, Medium and Low). Based on this result, some management implications and suggestions are proposed. The revised risk matrix with continuous scale for risk assessment in supply chain is a novel approach.
Supply Chain Integration, Learning, and Agility: Effects on Performance Habibullah Khan (Iqra University, Karachi, Pakistan) Joel D. Wisner (University of Nevada, Las Vegas, Nevada, USA)
Abstract: This study examines the interrelationships among supply chain integration, learning, agility and organizational performance. Survey data were collected from 257 publicly-owned companies in Pakistan, and the hypothesized framework was tested using a structural equation model. It was found that supply chain integration had a significant impact on external and internal learning. Additionally, supply chain integration was found to have an insignificant impact on firm performance and supply chain agility. Finally, internal learning was found to have an insignificant impact on supply chain agility, but a significant direct impact on firm performance, while external learning had an insignificant impact on firm performance both directly and indirectly.
Shelf-space Allocation Model with Demand Learning Kazuki Ishichi (Waseda University, Tokyo, Japan) Shunichi Ohmori (Waseda University, Tokyo, Japan) Masao Ueda (Waseda University, Tokyo, Japan) Kazuho Yoshimoto (Waseda University, Tokyo, Japan)
Abstract: In this paper, we studied the shelf-space allocation problem (SSAP). It is quite common recently to implement product design during a selling season and drastically change assortment decisions based on shelf-space allocation in response to up-to-date demand observations. While there are many literatures related to SSAP, However, existing literature assume that the demand is stationary. In this paper, we propose a dynamical framework to make shelf-space display decisions, in which space elasticity and potential demand are sequentially estimated using the latest data containing display space and sales for each product.
Analysis of the Job Preferences for Undergraduate Supply Chain Students Michael S. Garver (Central Michigan University, USA) Sean P. Goffnett (Central Michigan University, USA) Zachary Williams (Western Michigan University, USA) Richard L. Divine (Central Michigan University, USA) Connor F. Davis (1676 Lakeshore Dr., Menasha, WI 54952)
Abstract: The development of an effective recruitment strategy that attracts and secures entry-level logistics talent is essential to maintain corporate performance. To accomplish this, firms need to understand the attribute importance as well as the preferences of job applicants so that information can be used to develop more attractive job offers. To better understand job choice, choice based conjoint analysis was used. Key variables and their corresponding levels of interest in job choice were determined and presented to job seekers. Results of the current study indicate that for university undergraduate supply chain students, the three most important attributes used to evaluate entry level job positions are starting salary, fit with company culture and proximity of the worksite to friends and family. The results also show a preference for worksites located in the suburbs, in an office setting and for manufacturing firms. Below average preference was expressed for worksites in rural areas, those with lots of travel and firms in the retail and wholesale sectors. Implications for firms, educators and students are discussed.
Inventory Control Policies for Substitutable Deteriorating Items Under Quadratic Demand Nita H. Shah (Gujarat University, Ahmedabad , India) Urmila Chaudhari (Government Polytechnic Dahod, India) Mrudul Y. Jani (Parul University, Vadodara, India)
Abstract: In today’s busy life, no one has sufficient time to buy or bargain any type of products. It is common in such cases that customers, who are looking for purchasing a certain product, will be willing to substitute with a comparable product when facing a stock-out, rather than visiting a different store to bargain the original product. In this article, we study an inventory control problem in which demand is fulfilled by using two similar substitutable items. Retailer fulfilled demand of one product by other substitutable product when stock-out of the one of them. We consider inventory levels of both of the items and time dependent demand. The orders for both products are placed at the same time. Our objective is to maximize joint profit for two substitutable deteriorating items with respect to cycle time and a time at which one product is stock-out.The numerical analysis is carried out based on the analytical results. The critical inventory parameters are computed for the decision maker.
Supply Chain Integration: Does Organizational Culture Matter? Mary G. Porter (University of Phoenix, USA)
Abstract: The purpose of this quantitative correlational study was to identify relationships between organizational culture types, supply chain integration, and firm performance. The study process included obtaining data from 201 supply chain professionals and procurement specialists working in various companies throughout the United States. Supply chain integration data and firm performance derived from results obtained from participants completing a 5-point Likert-type scale survey. The Organizational Culture Assessment Instrument was used to determine organizational culture types. Results indicated a significant correlation between supply chain integration and firm performance. All three integration variables, customer, supplier, and internal were significantly and positively correlated with total integration and firm performance. Results also indicated that supply chain integration increased when organizational flexibility was present. Unexpectedly, both clan and adhocracy cultures were significantly correlated to supply chain integration and firm performance. The results from this study added to literature and provided supply chain managers practical knowledge of the significant influence organizational culture can have on supply chain integration performance. Results of this study substantiate that a flexible organizational structure, as shown in the clan and adhocracy cultures, increases supply chain integration and firm performance. As competitive forces intensify, the need for firms to develop a flexible organizational structure to leverage supply chain integration practices will increase. The results of this research could provide organizational leaders more insights into increasing supply chain integration efforts and improved firm performance through flexible culture alignment.
Analysis of Multi-objective Decision Problems in Humanitarian Supply Chains Takeo Kobayashi (RICOH COMPANY LTD., Japan) Yacob Khojasteh (Sophia University, Japan) Yasutaka Kainuma (Tokyo Metropolitan University, Japan)
Abstract: In humanitarian supply chains, there is a need to consider how to distribute the limited relief supplies that have not been prepared sufficiently to each shelter. Different from commercial supply chains that prioritize cost reduction, in humanitarian supply chains, it is important to consider not only reducing the distribution cost but also how to deliver goods quickly to satisfy the demands of shelters. Three metrics have been proposed for humanitarian supply chains: efficiency, equity, and efficacy. The objective of this paper is to define the metric of efficacy to minimize distribution time to each shelter considering the relief goods arrival. Under the situation after the disaster, to supply relief goods agilely and fairly, it is necessary to take account the weight of each metric adequately. We formulate a multi-objective mathematical model by the multiple metrics and carry out the optimization by using the model. The results show that the proposed multi-objective model is very promising in dealing with complicated humanitarian supply chains. Additionally, we show the deviation between the result of each metric and the multi-objective evaluation.
A Shopping-path Length Estimation Using Markov-chain-based Shopper Dynamics Model Shunichi Ohmori (Waseda University, Japan) Masao Ueda (Waseda University, Japan) Kazuho Yoshimoto (Waseda University, Japan)
Abstract: We propose a framework of estimating shopping-path length, in which the floor is represented by the graph G(V,E) with a vertex set V and an arc set E and the shopping-path length is measured by the number of zones (vertices) shoppers visit. We used the Markov-chain to model the dynamics of distribution of shoppers on the vertecies in the graph. We derive the (discrete) probability distribution of shopping path length using the transition matrix in the Markov-chain, and derive the expected path length. We proposed the index called the improvement importance index to quantify how local changes in the transition probability affect the entire shopping path length. We have tested our framework to the test data from an industrial application and the estimated path-length is compared to the actual one. We have a result that the error of estimation is 0.2%.
An Evaluation of Order-picking Tour Efficiency in Two-block Warehouses Ömer Öztürko?lu (Ya?ar University, Turkey) Deniz Ho?er (Hugo Boss, Turkey)
Abstract: This study investigates the effects of critical operational and strategical decisions in order-picking warehouses on order pickers’ tour lengths. For this study, one of the most-commonly applied layouts in practice, called two-block layout with a central cross aisle, was considered. A full factorial experimental design and multiple-comparisons (Bonferroni t-tests) were applied to statistically determine the significance of various levels of storage policies, pick-list sizes, warehouse shape ratios, warehouse sizes and their all interactions on average tour length. The analysis showed that deeper storage areas were superior to wider areas in small- and medium-sized warehouses. Warehouse designs with a 1:1 width-to-depth shape ratio offered the most robust layouts. Within-storage aisle policy significantly reduced order-picking tour length and generally outperformed other storage policies.
A Multi Echelon Location-Inventory Model with Lateral Transshipment Mohammad Reza Gholamian (Iran University of Science and Technology, Iran) Mustafa Nasri (Iran University of Science and Technology, Iran)
Abstract: In this research, a supply chain system consisting producer, distribution centers and retailers is modeled by considering lateral transshipment between distribution centers and also using echelon-based inventory system instead of independent inventory system. The model is developed in the form of mixed integer non-linear programming (MINLP) to minimize the total location, transportation, and inventory costs of the system. The model was solved using conic programming approach and validity was examined by comparing the developed model with the basic model (i.e. the model without the contributions) in several instances with different sizes of distributors and retailers. The results represent superiority of the developed model in computational time and objective value especially in medium and large-scale problems.
Modelling Facility Location Problems in Emerging Markets: The Case of The Public Healthcare Sector in Morocco Asmae El Mokrini (International University of Rabat, Morocco) Youssef Boulaksil (UAE University, Al Ain, United Arab Emirates) Abdelaziz Berrado (Mohammed V University, Rabat, Morocco)
Abstract: Locating facilities in an emerging market involves specific characteristics that are different from developed countries. The differences between these two settings suggest that facility location modelling can present substantially different challenges when applied to an emerging market as opposed to a developed country. In this study, we develop a variant of the set covering model that explicitly takes specific characteristics into consideration. The model has been constructed and validated based on a real-life case study concerning the Moroccan Ministry of Health which is currently considering the redesign of its supply chain of pharmaceutical products. Amongst the findings, this paper shows that road infrastructure and demand dispersion affect the strategic decision of facility locations.
The Influence of Shopping Path Length on Sales Growth and Its Variance Shunichi Ohmori (Waseda University, Tokyo, Japan) Masao Ueda (Waseda University, Tokyo, Japan) Kazuho Yoshimoto (Waseda University, Tokyo, Japan)
Abstract: We study the influence of shopping path length on the number of items purchased. It is a well known fact in in-store shopper marketing that the longer the travel distance, the more items purchased. We analyze a shopping path data of 556 shoppers collected at a retail store in an urban are in Tokyo, Japan. We observed the fact the longer the travel distance, the greater the variance of the number of items purchased as well as its average. To explain this fact, we proposed a probability model of sequential purchase decisions using the Bernoulli process. We can estimate the number of items purchased as the binomial distribution given the shopping path. In the case study, we show how this assumption can be justified by the data from a real store.
Supply Chain Incentive Alignment: The Gap between Perceived Importance and Actual Practice Andreas Norrman (Lund University, SE-221 00 Lund, Sweden) Dag Naslund (University of North Florida, USA)
Abstract: Incentive alignment is discussed as one of the key factors for successful implementation of supply chain management. However, there is a lack of empirical research regarding implementation as well as evaluation of the effects of alignment mechanisms in practice. The purpose of this study is therefore to explore and describe the current practice and to identify gaps of Supply chain incentive alignment. The study is an explorative and descriptive survey study based on forty-eight responses from members, supply chain officers, of the Swedish Supply chain panel. The theoretical lenses are based on literature discussing incentive alignment in supply chains, e.g. principal-agency theory and supply chain contracting, but also on literature discussing internal process based management and rewards for goal congruence. The study shows a clear gap between perceived importance and realized practice of both external (inter-organizational) and internal (cross-functional) incentive alignment. Very few of the existing sophisticated coordinating mechanisms proposed in theory were used to any significant extent. In fact, the internal incentive structures seem to counter act, and not support, supply chain orientation. This finding relates not only to non-logistics departments but also to functions in “the logistics family”. The major challenge, both externally and internally, is to be able to define incentives that drives behavior in the right direction. The study clearly shows gaps between practitioners’ intent and current practice, and it provides a broad range of more sophisticated and coordinating mechanisms than the ones mainly used today.
Proposing a Framework for Developing Supply Chains of Medical Devices Kun Liao (Central Washington University, USA) Xiaodong Deng (Oakland University, Rochester, MI 48309-4493, USA) Yan (Grace) Wang (Starbucks Corporation, USA) Ozden Bayazit (Central Washington University, USA)
Abstract: To help develop supply chains for a medical device, this study proposed a framework based on literature review and the unique characteristics of medical devices. The framework first evaluates the structure of the medical device, the suppliers of raw materials or components, and the emerging technologies and manufacturing processes to be used to build the device. It then assesses the quality regulations and standards for the device and the manufacturing processes, the location of the suppliers, and the operation and maintenance of the device along the supply chain. This framework was applied to a case where supply chains were developed through Porter’s cluster mapping technique for two medical devices: an ultrasound machine and a prosthetic ankle. The preliminary results suggested that the features of the medical devices influenced the choice of their supply chains. In particular, a research-oriented device with customized components should have a localized supply chain (e.g., within Washington State in this case) while the consumer-oriented device with standardized components could have a national or even a global supply chain. Future research directions are suggested.
Application of Queuing Theory to Optimize Waiting-Time in Hospital Operations Deepak Yaduvanshi (Pulmonology Critical Care Manipal Hospital, Jaipur, India) Ashu Sharma (Narsee Monjee Institute of Management Studies (Deemed-to-be-university), India) Praful Vijay More (Narsee Monjee Institute of Management Studies (Deemed-to-be-university), India)
Abstract: Waiting time is inherent to the healthcare service sector in India and a major challenge faced by almost every big hospital is queuing. Long waiting time can be a reflection of inefficiency in hospital operations. The out-patient department (OPD) has the biggest queue as compared to other departments in hospital operations. This study comprises of in-depth analysis of OPD from different dimensions. Like in many big hospitals across India, the OPD of Fortis Escorts Hospital in Jaipur, India is managed using experience and rule of thumb rather than strategic research-based techniques such as queuing theory. The Fortis Escorts Hospital in Jaipur receives a large number of patients each day which results in longer waiting time for patients due to long queues. To address this challenge, a SWOT analysis was conducted for the OPD of Fortis Escorts Hospital Jaipur (FEHJ) which resulted into dissecting the queuing problem and coming out with solutions knowing where the hospital operations can excel and where there is a scope of improvement to make the working and processes better. Additionally, after examining the problem analytically and applying queuing theory, measures were suggested to improve the delay points and make the OPD more efficient in order to gain a high patient satisfaction rating.
Achieving Market Orientation Through Cross-Functional Integration Ana Beatriz Murillo-Oviedo (National University of Costa Rica, Heredia, Costa Rica) Márcio Lopes Pimenta (Federal University of Uberlândia, Uberlândia, MG, Brazil) Per Hilletofth (Jönköping University, Jönköping, Sweden) Ewout Reitsma (Jönköping University, Jönköping, Sweden)
Abstract: The purpose of this study is to understand how cross-functional integration contributes to the market orientation of a company that strives to increase market responsiveness. A case study in the Brazilian beverages industry was conducted and empirical data was collected through fourteen in-depth interviews from various functions within the company. The findings indicate that cross-functional integration enables the company to achieve market orientation through two main processes: product launch and customer complaints. Cross-functional integration enables a company to disseminate knowledge about organizational dynamics at both departmental and individual levels, to generate interdependency, to improve the awareness about the internal needs, and to improve the internal knowledge about the customer. This study shows that practitioners need to establish cross-functional integration, as it contributes to the market orientation of a company. Internal knowledge enables practitioners to create value through products and services, while still preserving the corporate image. It also shows that cross-functional teams and meetings are necessary to achieve market orientation in a company.
Offshoring Decisions: A Comprehensive and Conceptual Framework Amulya Gurtu (University of Wisconsin-Green Bay, WI, USA) Ramesh Saxena (Humber College, Toronto, ON, Canada) Nilesh Sah (University of Tennessee at Chattanooga, USA)
Abstract: The paper presents complexities involved in offshoring decisions and provides a comprehensive framework for making a reliable decision for offshoring. There is a need for a holistic approach to offshoring decisions. The paper identifies various drivers, categorizes them as revenue or cost drivers, and analyzes their impact on the offshoring outcomes. The framework rationalizes the extremes of unprecedented successes and unexpected failures among organizations engaged in offshore outsourcing. The proposed framework is expected to improve the quality of offshoring decisions. The proposed framework approaches offshore outsourcing decisions at a strategic level and will improve organizations’ performance on the triple bottom line.
An Exploration of the Measurement of Relational Capital in Supply Chains Barbara Ocicka (SGH Warsaw School of Economics, Warsaw, Poland) Grayna Wieteska (University of Lodz, Poland)
Abstract: The aim of the paper is to identify and systemise dimensions and measures that can be used to evaluate buyer-supplier relational capital (RC). The authors used a literature review methodology composed of the following phases: question formulation, keyword search in databases, screening and analysis of articles. As a result, 44 articles were selected and finally analysed in detail. It was found that several theories can help to explain how buyer-supplier relationships contribute to a company’s value and competitive advantage. Furthermore, RC as an element of social capital deserves more investigation in a supply chain management context. Accordingly, to date there has been no relevant in-depth studies exploring the measurement of relational capital in supply chains. On the base of the review of research articles published between 2004 and 2018, the list of items used by researchers to measure the relational capital was explored. Then, authors proposed a construct for relational capital consisting of 5 items such as: trust, close interaction, respect, reciprocity and commitment, that were shortly discussed. Taking them all into account, an authorial definition of supply chain relational capital was proposed. Although, the final results contribute to the study of RC measurement within buyer-supplier relationships in supply chains, the analysis still has some shortcomings that need to be addressed in further literature studies and empirical research.
Information Technology Outsourcing: Influence of Supplier Firm Size and Reputation on Buyers’ A Priori Perceptions of Opportunism and Uncertainty Imran Khan (University of Nebraska-Lincoln, USA) Brian Rutherford (Kennesaw State University, USA) Alvin Williams (University of South Alabama, USA)
Abstract: Growth in outsourcing has led to a renewed focus on vendor and/or business partner evaluation and selection criteria as inept selection can have an adverse impact on core organizational outcomes such as revenues and profitability. Outsourcing activities include use of a third party to perform a variety of business functions such as contract manufacturing, sales, distribution, public relations, and information technology (IT) management. While transaction cost analysis (TCA) researchers have extensively studied outsourcing arrangements, they have not examined how vendor firm characteristics affect buyers’ a priori or pre-contract perceptions of opportunism and uncertainty during the vendor evaluation phase. Similarly, while the procurement research stream has identified and explained a range of supplier characteristics and their effect on buyer’s vendor selection processes, it lacks integration with TCA. This paper purports to advance both TCA and vendor selection research streams by studying the influence of supplier firm size and reputation on buyers’ pre-contract perceptions of opportunism and uncertainty. Higher opportunism and technological uncertainty perceptions in a pre-contract stage can prevent a vendor or channel partner from winning business. Support is found for a relationship between vendor firm reputation and buyers’ a priori perceptions of opportunism and uncertainty. Results further show that stronger reputation can mitigate the perception of opportunism, larger firm size, on the contrary, raises the degree of perceived opportunism. Results also support a relationship between opportunism and technological uncertainty.
Relationships Between Green Supply Chain Drivers, Triple Bottom Line Sustainability and Operational Performance: An Empirical Investigation in The UK Manufacturing Supply Chain Susmita Pattnaik (Codaemon Softwares Pvt. Ltd., Hadapsar, Pune, Maharashtra, India.) Subhra Pattnaik (Xavier University, Bhubaneswar, India)
Abstract: Sustainability has assumed salience over the past years, thereby becoming a corporate mantra as well as a promising research area. Most sustainability studies have focused on environment friendly operations contributing to the concept. However, sustainability extends beyond environmental performance to also encompass economic and social performance. All the three factors combine to form the ‘Triple bottom line (TBL) performance’. This paper is an empirical investigation of the effect of green supply chain (GSC) drivers on the TBL performance and the influence of TBL performance on operational performance of manufacturing companies in United Kingdom (UK). Structural equation modelling (SEM) was used to reveal that GSC drivers like supplier and customer pressure and environmental purchasing positively influenced social and economic performance respectively, whereas eco-design and production influenced all the three parameters of TBL performance. It was interesting to find that social and economic performance, but not environmental performance, had a significant positive influence on firm’s operational performance.
Fixed Shipping Cost Allocation for Just-in-Time (JIT) Lot-Splitting Joong Son (MacEwan University, Alberta, Canada )
Abstract: This paper studies benefits of just-in-time (JIT) lot-splitting and multiple shipments for an order placed by the retailer in a two-stage supply chain. In a typical order placement and delivery setting between the buyer and the vendor, the treatment of the shipping cost is not clear and is contingent on negotiations between the parties involved. The outcome of such settlement often results in suboptimal practices in the supply chain. This paper investigates how the optimal and incentive aligned allocation of the fixed shipping cost from the manufacturer to the retailer can be obtained with the lot-splitting policy. Numerical results indicate that both the lot-splitting policy parameter and the fixed cost structures (e.g., fixed shipping to ordering cost ratio) command significant impact on the shipment frequency and the supply chain cost. The paper further proposes an approach to identify settings beneficial for the system.
Understanding the Impacts of Length of the Contract and Fleet Size on Spare Parts Level and Reliability Investments in Performance-based Contracting Hasan Uvet (Savannah State University, USA) Hasan Celik (University of North Texas, USA) Carullah Kucuk (University of North Texas, USA)
Abstract: This essay investigates the impacts of contract features such as contract length and fleet size on reliability investment, spare parts, supplier’s profit, and the annual cost of the system in performance-based contracting (PBC). The impact of each contract feature analyzed using the multi-objective genetic algorithm in a mathematical model. We found that failure rates of the systems and the annual unit cost for the buyer exponentially decrease when the fleet size or contract length becomes larger. Also, an annual profit of suppliers grows substantially with an increase in fleet size and length of contracts. Additionally, we explored that these features have little impact on spare parts in PBC. Findings of this study advance understanding of the impact of fleet size and the length of contracts on decisions made by suppliers for the reliability and inventory investments in PBC. Furthermore, practitioners will benefit from the results to build effective and efficient PBC.
Supply Chain Finance for SMEs - Case in Danang City Le Thi Minh Hang (The University of Danang, Vietnam ) Nguyen Son Tung (The University of Danang, Vietnam)
Abstract: Recently, the number of Vietnamese small and medium enterprises (SMEs) is rapidly growing. Since most of them are run under owner’s capital, they easily face cash constraint situation during their operational life cycle. Hence, the demand for Vietnamese SMEs to optimize their liquidity has been increasing and becoming a top concern. Previous studies in the supply chain field focus much on the physical flow of products/services and informational flow. Meanwhile, the financial aspect as well as its sustainability in the supply chain has been received more attention after the financial crisis of 2008. This even gets more crucial when the uncertainties in the global economy and financial markets increase pressure on businesses’ cash as well as their supply chains (SC). Considering the role of this concept and its potential, this study tries to explore and examine the level of understanding about the monetary supply chain of SMEs based in Danang city and how they can access financial sources for more stability and sustainable business. The truth is, many SMEs face existing problems to access financial sources like banks as well as establishing a long-lasting SC. Without a doubt the fund-raising information infrastructure in Danang city is not well developed, and local businesses still depend on financial sources from banks. Also, the connection between buyers and suppliers is still weak as they do not invest much in the infrastructure or production line to create a common ground with the business’s product characteristics. In addition to that, this paper suggests some implications for the development of the local SMEs in general and their supply chains in particular.
Product Variety, Supply Chain Complexity and the Needs for Information Technology: A Framework Based on Literature Review Estu Rizky Huddiniah (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia) Mahendrawathi ER (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia)
Abstract: Recently, many companies are competing against each other to be the first to offer new product in the market, even when offering new products brings additional challenges for their operations. At the same time, information technology is chosen as the most effective solution to help company facing supply chain problems that arise due to increasing flow of materials and information in the supply chain. However, many companies still do not fully considered the importance of aligning the needs of information technology with the supply chain and business conditions. This paper conduct a structured literature review on the influence of product variety, supply chain complexity, and the needs level of information technology. Based on the literature review a conceptual framework is developed that highlight three propositions: the potential relations between product variety and supply chain complexity, supply chain complexity and information technology, and the importance of aligning the implementation of information technology with the company’s business condition. Finally, the main propositions from this study is that there are potential connections among product variety, supply chain complexity, business condition and information technology.
Importance of Logistics Service Quality in Customer Satisfaction: An Empirical Study Hasan Uvet (Georgia Gwinnet College, Lawrenceville, GA 30043, USA)
Abstract: To create value in logistics services to fill the expectation of customers gets more significant than ever to sustain competitiveness in the market. In this paper, considering there is a small amount of research done in logistic service quality, we aimed to investigate how logistics services affect customer satisfaction. An empirical study was made to measure logistic service quality factors; personnel quality contact, order condition, timeliness, order discrepancy handling, and operational information sharing in logistics services. Confirmatory factor analysis (CFA) and structural equation modeling (SEM) has been used in this paper to explore customer satisfaction by using the five constructs of logistics service quality. One of the contributions of this article is; it is the first time the effects of operational information sharing on customer satisfaction in logistics services was investigated under the logistic service quality framework. Customer satisfaction can be explained and improved by applying these five constructs of logistics service quality. Also, this research can help both practice and scholars to understand the fundamental elements of improving customer satisfaction. The results can be used in any firm to gain competitiveness in logistic services.
Inter-functional Coordination to Co-create Value Within Integrated Value Chains for Competitive Supply Chain Umer Mukhtar (University of Management and Technology, Pakistan) Tashfeen Mahmood Azhar (University of Management and Technology, Pakistan)
Abstract: This paper aims to develop a conceptual model that can assist managers in the development of competitive value chain using value co-creation and integration to make the whole supply chain competitive. The model is based on theoretical and conceptual underpinnings of value co-creation, network theory, value chain, and customer value theory. The model focuses on the idea that integrated value chains with high value co-creation abilities within them would make the whole supply chain competitive. That means that if the individual firms along the supply chain work on improving their value co-creation abilities, and they are well-integrated, it will increase the whole supply chain competitiveness. It is a conceptual model that needs to be operationalized and empirically tested in the future. The model suggests high value co-creation abilities in the individual value chains with a well-integrated supply chain as a basis for supply chain competitiveness. The model includes several theoretical and conceptual views related to value co-creation. However, it may be possible to add some additional perspectives in the future research.
Assessing Cause and Effect in Supply Chain Problems Using Sports Ranking Models Don Pope (Abilene Christian University, Abilene, Texas 79699, USA)
Abstract: Supply chain problems are complex to understand and solve because of the interaction between multiple factors within and between tiers of the chain. Causal factors in business process deficiencies can be thought of as networks of factors, each of which has possible cause-effect relationship with selected other factors. The full significance of any given factor cannot be understood by evaluating just direct relationships between factors, but must be evaluated considering the total direct and indirect influences throughout the entire network of causal linkages. Because of their applicability to such general networks of relationships, sports ranking methodologies have application to cause-effect analysis. Three different matrix-based sports ranking methodologies are discussed and applied to quality cause-effect analysis: Google PageRank, Colley and Massey methods. Of these three, the PageRank and Massey methods are shown to be reasonable approaches in this application context, depending on the causal data available. All the methods are intuitive to apply and compute with spreadsheets.
Bio-Medical Waste Management Processes and Practices Adopted by Select Hospitals in Pune Suruchi Pandey (Symbiosis Institute of Management Studies Pune, India) Rajiv Divekar (Symbiosis Institute of Management Studies Pune, India) Amandeep Singh (Symbiosis Institute of Management Studies Pune, India) Srividhya Sainath (Symbiosis Institute of Management Studies Pune, India)
Abstract: The 21st century is said to have been a particularly eventful century with spectacular changes all around the world. The population is on a steady rise and as expected this rise in inhabitants has resulted in the need for the best-in-class medical facilities. This study has been undertaken to explore biomedical waste management process, practices and disposal chain adopted by selected hospitals with special reference to the city of Pune, India. There is a mandate laid down by the Government of India for the Bio-Medical waste (BMW) with regard to its proper management, collection, segregation, storage, disposal and incineration of medical waste in private as well as public hospitals. The secondary study has indicated multiple issues associated with waste handling and management, which led to healthcare and hygiene implications. So as a part of this study researcher’s aim to answer whether it is unawareness or negligence which is leading to such causalities. Also, are the processes & practices adopted at Public & Private sector hospitals varies significantly or not? A checklist was prepared to study the BMW Management process and practices followed by different hospitals in Pune City of India. The results showed a significant difference between their process & practice of Biomedical Waste Management. Also, random sampling about knowledge of BMW showed that government hospitals and their healthcare staff are casual in their approach towards implementing the Biomedical Waste Management process as compared to private sector hospital.
Designing a Reverse Logistics Network for an E-Commerce Firm: A Case Study Debadyuti Das (University of Delhi, India) Rahul Kumar (University of Delhi, India) Manish Kumar Rajak (ShopClues Gurugram, Haryana, India)
Abstract: The present work is an attempt to design a reverse logistics (RL) network for an e-commerce firm based on one of the most frequently returned items namely fashion goods. The problem essentially revolves around the trade-off between cost and responsiveness in designing an RL network for an e-commerce firm. We have considered several large neighborhoods in the northern capital region of India and treated the same as customer indexes from which the returns originate. Several candidate nodes have been identified as initial collection centers (ICCs) in which the returns from the customer indexes are initially collected and stored for some time before being sent to the final warehouses. There are three warehouses in three different cities. We have ensured that one customer index would be assigned to only one ICC. The decision variables of the above problem include the selection of ICCs, the assignment of the customer indexes to the ICCs and finally the volume of returns to be shipped from the ICCs to all three warehouses. We have formulated the above problem as a mixed integer linear programming (MILP) problem with a view to minimizing the total cost of the network. We have carried out sensitivity analyses on relevant parameters and provided rich managerial insights.
Planning Environmental and Economic Sustainability in Closed-Loop Supply Chains Kanchan Das (East Carolina University, USA)
Abstract: A closed-loop supply chain model that incorporates environmental and economic sustainability issues into the planning process of a chain is proposed. End-of-use and end-of-life customer returns are collected through retailers and supply chain-operated collection centers (SCOCs), which are located between the retail outlets that are separated with a distance exceeding a set limit, to facilitate customer returns. Returns are dismantled into components, which are recovered through recovery service providing vendors (RSPs). As much as possible, recovered components are used to produce remanufactured products through quality enhancement. The remaining recovered components are then used to produce second-hand products. The proposed model integrates the overall operations costs and select life cycle assessment (LCA) metrics in procurement, production, collection of returns, recovery, reuse, remanufacturing, transportation, and distribution of products to attain environmental and economic sustainability. Numerical examples illustrate the model’s applicability.
Impact of Stockout Compensation in E-Commerce Drop-Shipping Supply Chain Raj Kamalapur (Angelo State University, Texas Tech University System, TX, USA) David Lyth (Western Michigan University, MI, USA)
Abstract: Using simulation modeling, our research is the first study to investigate impact of two different stockout compensation strategies (E-SC and S-SC) compared to no-stockout compensation strategy (N-SC) on supplier’s profits and etailer’s profits in e-commerce drop-shipping supply chain. The conceptual model is a two-echelon production-inventory system with a make-to-stock supplier and an etailer. The results from this study suggests that on average, the profit difference is less than 4.0 percent in E-SC compared to N-SC for both the supplier and etailer. However, when demand variability is high, production capacity is low and service level is low, the profit difference for both the supplier and etailer is significantly higher in E-SC compared to N-SC. Also, if both the supplier and etailer pursue S-SC strategy, then on average, an increase in wholesale price by around 1.0 percent compared to wholesale price in N-SC is sufficient to offset the stockout compensation cost for the supplier.
Critical Operations Capabilities for Competitive Manufacturing in a High-Cost Environment: A Multiple Case Study Cinzia Sansone (Jönköping University, Sweden) Per Hilletofth (Jönköping University, Sweden) David Eriksson (Jönköping University, Sweden)
Abstract: There is increased interest in relocation to and from high-cost environments, but there remains a lack of knowledge with regard to operations capabilities in this specific context. The purpose of this study is thus to investigate critical operations capabilities in a high-cost environment. The research process is based on the investigation of an existing framework of operations capabilities through a multiple case study including five Swedish manufacturing companies. The findings reveal that all the dimensions and capabilities included in the framework were considered critical, and additional operations capabilities could be identified: service quality, supplier dependability, supplier flexibility, supply chain innovation, supply chain sustainability. The investigation underlines the dynamic nature of operations capabilities, which need to be updated constantly according to the environment in which they are developed. This study contributes on a practical level to managers by creating an overview of operations capabilities in a high-cost environment. Through the investigation of critical operations capabilities, it is possible for managers to find new areas of competitiveness, as well as to understand their current areas of excellence. The study makes several contributions, such as the identification of operations capabilities, their investigation and validation in a specific environment.
Theoretical Framework for a Local, Agile Supply Chain to Create Innovative Product Closer to End-user: Onshore-Offshore Debate Andrea Gyarmathy (Glasgow Caledonian University, UK) Konrad Peszynski (RMIT University, Australia) Leslie Young (RMIT University, Australia)
Abstract: This paper presents a conceptual model of a viable onshore, agile supply chain approach for innovative product manufacturers in the manufacturing sector. As such, this paper provides insight into the drawbacks of offshore manufacturing and an empirical investigation into the importance of the manufacturing sector. This study aims to answer the research question: how can agile supply chain management add value to the manufacturing to create innovative products closer to the end-user? A theoretical framework was developed through a qualitative methodology to demonstrate effective onshore operation and supply chain. For the first time, the combination of Dynamic Capabilities (DC) and Total Cost of Ownership (TCO) theories has been used as a lens to examine the location decision of a close geographical supply chain network – global supply chain debate. Offshore manufacturing and global sourcing do not appear to fit the DC theory in a geographically and culturally distant situation, especially when supply chains involve operations in different continents. The ‘theoretical perspective’, including DC and TCO suggests that companies should frequently integrate, build and reconfigure internal and external competences to promptly react to the changing environment and they should also wisely calculate all the indirect, hidden, lifecycle and transaction costs of an operation when considering moving production offshore. Although studies in the agile supply chain area have examined competitiveness from several perspectives, there has been little to no research focusing on the advantages of agile, nearshore operation and supply chain solutions. This research notably widens the theoretical perspective of agility and adaptability for innovative product manufacturers in the manufacturing sector, and the viability of remaining close to the market and apply agile supply chain.
A review and scientometric analysis of supply chain management (SCM) Haydar Yalcin (Izmir Katip Celebi University, Turkey) Wanying Shi (Portland State University, USA) Zafrin Rahman (Portland State University, USA)
Abstract: This paper aims to provide the most up-to-date review of supply chain management (SCM) publications through the use of scientometric analysis by reviewing studies published between the years 1998 to 2017. Global contributions in the field of SCM are well illustrated by identifying top productive journals, scholars, institutions, and countries. To clearly identify prevailing and recent research trends and topics in the field, the papers reviewed were categorized into three stages based on the timeline and increasing rate of publications. In each stage, core research topics and research methods were explored. The results of this study show that out of 13477 research outputs, the highest percentage of 59.38% are research articles, and the lowest percentage of 0.33% are books. The majority of 2389 publications originated from the United States, followed by 2256 from China. We observed a general increase in the number of publication records in SCM over the years. The areas of current research interests and future research needs in the SCM area are also identified.
Exploring Big Data Research: A Review of Published Articles from 2010 to 2018 Related to Logistics and Supply Chains Wecka Imam Yudhistyra (Suranaree University of Technology, Thailand) Evri Marta Risal (University College of London, UK) I-soon Raungratanaamporn (Suranaree University of Technology, Thailand) Vatanavongs Ratanavaraha (Suranaree University of Technology, Thailand)
Abstract: The emergence of industrial revolution 4.0, digital era, social media networks, ride-sharing transportation networks, video on demand, 5G network technology, and other cutting-edge technologies has transformed the current research paradigm in science into the fourth stage where “big data” is analyzed using various statistical explorations. Conversely, there are still deficiencies in scientific articles exploring “big data” in the logistics and supply chain research communities. Thus, the objective of this study was to conduct a comprehensive review of the trends and the current status of big data analytics (BDA) in the logistics and supply chain research communities. An elaborate examination was performed by analyzing the big data papers published in logistics and supply chain journals. The results have uncovered three things: the changing roles of BDA; some daunting challenges of implementing big data analytics, along with its recommended solutions; and the promising future of logistics and supply chains. All the findings would be helpful for creating a good research design and for implementing big data analytics (BDA) in the related fields.
Barriers Affecting Successful Lean Implementation in Singapore's Shipbuilding Industry: A Case Study Edwin Tan Hock Lai (Coventry University, Singapore Campus, Singapore) Florence Ng Jia Yun (National University of Singapore, Singapore ) Ivan C. Arokiam (Coventry University, UK) John Heng Aik Joo (PSB Academy Pte Ltd, Singapore)
Abstract: Lean manufacturing is essential for any company to remain competitive in the global business market. Companies in Singapore’s shipbuilding industry encountering fierce competition from overseas shipyards that have lower operating costs have now started to explore lean manufacturing in an attempt to lower their costs and improve the level of manufacturing quality while continuing to deliver high value to customers. Despite the importance of lean manufacturing to the shipping industry, few organizations in Singapore have succeeded in lean implementation. Thus, this study tries to explain the barriers to lean manufacturing as well as provide clarity and guidance to the companies aiming to adopt this practice to strengthen the probability of their success in its implementation.
Social and Environmental Sustainability: An Empirical Analysis of Supply Chain Profitability and the Recession Trisha Anderson (Texas Wesleyan University, USA) Zugang Liu (Pennsylvania State University, USA) Jose Cruz (University of Connecticut, USA) Jia Wang (Rowan University, USA)
Abstract: With the looming possibility of another recession, firms are wondering if their supply chain will be ready. This research helps firms understand the impacts of environmental and socially responsible activities on the financial performance of firms before and after the 2008 recession at different stages of the supply chain that includes four industries: Retail, Wholesale, Manufacturing, and Transportation. We found that the financial impacts of the Corporate Social Responsibility (CSR) activities on supply chain firms have changed since the financial crisis in 2008 and that only in the retail industry both positive environmental and socially responsible activities have consistent positive impacts on the companies' profitability. The impacts of positive activities are mixed for the other supply chain industries. The negative environmental activities consistently have negative financial impacts on companies across all supply chain industries. In the transportation industry, negative social activities are consistently associated with positive financial impacts.
The Networked Handling of Rush Orders in Customer Services Per Engelseth (University of Tromso, Norway) Brian White (Complexity Are Us Systems Engineering Strategies Sudbury, USA)
Abstract: Rush orders are characterised by time constraints and organisational priority. They are handled by the supplier with the aim of meeting customer requirements in as limited a timeframe as possible. Rather than focusing on rush orders as a deterministic planning problem, this paper takes an inter-organisational perspective that highlights the complex networked interactions between the supplier and the customers. In this single case study of an advanced sanitary product supplier, rush orders involve process prioritisation concerning both: (i) supplies of in-stock parts that are delivered with pre-set time objectives; and (ii) parts not in stock that must be quickly fabricated. This supply process is highly emergent, in that unexpected events or properties occur. This study considers the difficulties of determining and dealing with root causes, unexpected effects, and interventive solutions for rush orders. This operational level of analysis provides a foundation for advocating the application of complex systems thinking to solve or at least significantly mitigate the problem of rush orders. It also contributes to and advances further research on this subject.
Relevance of Adopting Emerging Technologies in Outbound Supply Chain: New Paradigm for Cement Industry Ashu Sharma (School of Business Management, SVKMs NMIMS, Mumbai, India) Preeti Khanna (School of Business Management, SVKMs NMIMS, Mumbai, India)
Abstract: In the past few decades, supply chain management operations have increased manifold and much attention has been devoted to the evolution of supply chain management in the scientific literature. This has led to accommodating newer strategies and developments in technology. Channel partners are exploring newer methods that deliver accurate information in real time to have efficient flow within the supply chain. Existing processes and operations handled by channel partners in cement industry are constrained by time, location and lack of any technology for accessing and coordinating any information. The focus of this paper is the outbound supply chain in cement industry where complexity and cost of inventory management, compliance requirements, and managing warehouse are the biggest challenge. The success of the supply chain depends on coordination, communication, and collaboration among the channel partners. Visibility in supply chain will certainly enhance tracking, timely delivery, improved decision making leading to improved customer satisfaction. Literature explores the digital trends in supply chain management affect the overall business model. From sensors to big data, a number of technologies drive the business trend across globe. The research paper looks at how the channel partners can use the technology and smart devices closely within their day to day activities associated with their processes which could connect all channel partners continuously, and have improved visibility in the supply chain. The research has done an extensive literature review as well as primary research to explore the role of existing technology in the outbound supply chain of cement industry. The study further explores that how technology can act as an enabler and can be benefited in many ways for channel partners.
Supply Chain Fair Profit Allocation Based on Risk and Value Added for Sugarcane Agro-industry Muhammad Asrol (Bogor Agricultural University, Indonesia) Marimin (Bogor Agricultural University, Indonesia) Machfud (Bogor Agricultural University, Indonesia) Moh. Yani (Bogor Agricultural University, Indonesia) Eizo Taira (University of the Ryukyus, Japan)
Abstract: Profit allocation is the main critical problem in the supply chain. In agro-industry supply chain, establishing a fair and reasonable profit allocation has been more challenging due to the influence of uncertain factors. Cooperative game theory with the Shapley value has an opportunity to solve this problem given its appropriateness for the key goals of the supply chain. Fuzzy Shapley value was developed to accommodate uncertain stakeholders’ payoff. In addition, uncertain risk and value added were considered for a reasonable profit allocation. This model succeeded in a case study of finding a fair profit allocation in the sugarcane agro-industry supply chain taking into account uncertain risk and value added. The model validation showed that sugarcane farmers, mills, and distributors achieved 35.38%, 30.11%, and 34.51% of profit share, respectively. Stakeholders achieved their profit share based on their marginal contribution, risk potential, and value-added contribution, which may increase supply chain stability.
Towards a sustainable Reverse Logistics framework / typologies based on Radio Frequency Identification (RFID) Muhammad Usama (University of Management and Technology, Lahore, Pakistan) Asher Ramish (University of Management and Technology, Lahore, Pakistan)
Abstract: In the past, closed loop supply chains (CLSCs) were not considered as value creating chains due to complexities and uncertainties in the product returns until the introduction of radio frequency identification (RFID) in the domain of supply chain (SC), which has made the product visibility possible in the CLSCs and has overcome the issues of uncertainties in product returns. There is a lack of research to configure RFID in closed loop supply chains or reverse logistics (CLSCs/RL). The objective of this paper is to develop the typology and propose the framework for configuring RFID in the CLSC/RL by categorizing the products based on RFID tagging and correspondingly finding the place of tagging RFID to the products in the CLSC/RL on the basis of product category in order to attain sustainability in an efficient and effective manner. Two typologies (pre-tagging and post-tagging) regarding deployment of RFID in sustainable and CLSC/RL are developed along with categorization of products as single-piece and multi-piece products followed by a proposed conceptual framework for RFID configuration in Reverse Logistics domain. Empirical study is required to validate the proposed conceptual framework. The outcomes include: improvement in product visibility, forecasting accuracy, customer satisfaction, profit and market share and reduction in inventory cost and pollution.
Healthcare Quality and Hospital Financial Performance: A Multilevel Framework Subhajit Chakraborty (Coastal Carolina University, South Carolina, USA)
Abstract: Given the recent reports on much-needed healthcare quality improvement in the U.S. we suggest that it is now time to adopt a systemic perspective to measuring quality in U.S. healthcare and tracking it closely to hospital financial performance. Using Donabedian’s (1966, 1968, 1988) Structure-Process-Outcome (SPO) classification we attempt to offer a multi-level conceptual framework tying in the antecedents to and outcomes of patient care quality that can be used by U.S. hospitals to improve the quality of care available to patients and ensure their own viability over the long run. We also address the measurement challenges for a future empirical measurement and conclude with implications for healthcare research and the medical practitioners and U.S. hospitals.
Quality Management as Driver of Vertical Integration in Service Chain: A Study of 3rd Party Logistics Industry Mohammad Shaiq (Greenwich University, Karachi, Pakistan) S. Khurram Alwi (Greenwich University, Karachi, Pakistan) Sadia Shaikh (Greenwich University, Karachi, Pakistan) Zobia Zaman (Greenwich University, Karachi, Pakistan)
Abstract: Third Party Logistics (3PL) is one of the fastest growing service industry but still the impact of the application of Quality Management Practices (QMPs) particularly on the integration capability of 3PL service providers in the supply chain is not a well-researched topic. Especially in the context of Pakistan, very little empirical work is found dealing with this very important service competency of 3PL. This research is carried out to determine how QMPs help 3PL Service Providers achieving integration competency in the service chain. The quality management dimensions of internationally recognized Malcolm Baldrige National Quality (MBNQ) model are used as independent variable to assess their impact on the integration competency of 3PLs in Pakistan. Considering the typical business culture and industry environment in Pakistan, the effect of Social Capital and Companies’ Internal Strength as moderating variables was also observed. Using questionnaire as a tool, the quantitative data on various items for latent constructs was collected from more than 176 logistics firms of Pakistan. Results clearly identified the Strategic Planning, HR Management Focus and Process Management as the factors highly impacting Integration Competency of 3PL service providers in Pakistan. Interestingly, but surprisingly, the role of Leadership and Knowledge Management was insignificant in this particular setting. The moderating variable also showed a significant impact on integration competency. This study highlighted the areas where logistics firms in their individual capacity and logistics industry as a whole should immediately concentrate to enhance this important competency.
Look Before You Leap: Economics of Being an Omnichannel Retailer Kushal Saha (Indian Institute of Management Calcutta, India) Subir Bhattacharya (Indian Institute of Management Calcutta, India)
Abstract: This paper investigates how the market gets segmented when an omnichannel retailer enters a market hitherto served by non-omnichannel retailers. The added value derived from the omnichannel flexibility is expected to draw more customers to an omnichannel retailer, luring them away from the incumbent non-omnichannel peers. However, the customers are expected to be heterogeneous in their valuation of the omnichannel flexibilities offered. Also, since acquiring omnichannel flexibility entails additional costs for service integration, the omnichannel aspirant is expected to charge a higher price from the customers than its non-omnichannel competitors. Our model considers both these factors, and derives analytical expression for the expected market share of the omnichannel retailer as a function of the price charged by the non-omnichannel peers, the extent of flexibility provided, and the cost of providing the same. Also, given the cost of service integration, we estimate the level of flexibility that an omnichannel retailer must offer if it wants to acquire a specific market share. The findings indicate that the associated integration cost imposes a restriction on the maximum market share an omnichannel entrant can aspire to capture.
Digital Muda - The New Form of Waste by Industry 4.0 Jamila Alieva (Gavle University, Sweden) Robin Haartman (Gavle University, Sweden)
Abstract: Lean management is an approach where value is created through the reduction of waste. Eight forms of waste were identified by the Toyota Company as worth considering while managing an efficient production process: overproduction, waiting, transport, over processing, inventory, movement, defects, and unused creativity. Modern manufacturing plants are being transformed by Industry 4.0, the fourth industrial revolution, which promotes a wide variety of technological solutions to increase innovativeness and competitive advantages. Technological solutions are created on the basis of data that must be analyzed to enable manufacturers to be more strategic in the decision-making process and generate new profit channels through data analytics. A conceptual framework was developed to investigate if the inefficient usage of data has a negative impact on manufacturing performance through the decision-making process. Semi-structured interviews were conducted in two leading manufacturing companies in Sweden that are following lean principles. A new form of waste, digital waste, was defined. This paper suggests considering digital waste as a new type of muda (waste), which is its theoretical contribution. From a practical perspective, the results of the paper encourage practitioners to pay extra attention to data analytics, work on the reduction of digital waste and establish new revenue channels based on data analysis.
Application of the Just-In-Time Approach to a Third-Generation Port Yulia Panova (Emperor Alexander I St. Petersburg State Transport University, Russia and Luoyang Normal University, China) Per Hilletofth (Jönköping University, Sweden and University of Gävle, Sweden) Arina Panova (ITMO University, St. Petersburg, Russia) Xu Hongsheng (Luoyang Normal University, China)
Abstract: This paper investigates the feasibility of different logistics concepts applicable in a third-generation port (first-and-foremost, just-in-time approach for a given case). In this regard, a simulation model imitating the work of a real third-generation port was developed. Four experiments with proposed logistics solutions have been configured and evaluated in the simulation model. They differed by the size and number of shipping consignments to the port, deployed truck fleet, etc. The research shows that effective material transfers from the plant to the port can be provided, if a ‘pulling’ type of logistics system is applied instead of the traditional ‘pushing’ system. This alternative allows goods to be delivered just-in-time with the minimum labour costs and material resources.
A Framework for Exploring Blockchain Technology in Supply Chain Management Abbas Batwa (Lund University, Sweden) Andreas Norrman (Lund University, Sweden)
Abstract: The purpose of the study is to identify and explore different applications of blockchain technology in supply chain management and suggest a framework for their analysis. The study addresses researchers’ conflicting opinions regarding the hype of blockchain and clarifies which minor applications are hyped and which are currently more applicable. That helps supply chain practitioners appraise the different applications of blockchains before it is too late to revise a decision regarding their use. The framework was developed based on a systematic literature review of blockchain-related articles, and it was examined with semi-structured interviews with four companies that applied the technology. Findings from the study suggested that traceability and supply chain finance seemed to be the most applicable applications of blockchain technology in supply chain management. But, light was also shed on other applications such as: compliance with standards, supply chain integration and digitalization of the transactions. This study was restricted by the availability of applied cases, as blockchain remains an emerging technology. Therefore, this study cannot be considered a case research, but a literature review followed by a limited number of interviews. However, the study resulted in a conceptual framework that forms the basis for further exploratory studies with more empirical data.
Exploring the Impact of Innovativeness of Hospitality Service Operation on Customer Satisfaction Ngan Truong (RMIT University, Ho Chi Minh City, Vietnam) Duy Dang-Pham (RMIT University, Ho Chi Minh City, Vietnam) Robert McClelland (RMIT University, Ho Chi Minh City, Vietnam) Mathews Nkhoma (RMIT University, Ho Chi Minh City, Vietnam)
Abstract: Service Innovation is critical for service improvement and development that enhance customer satisfaction. Besides the importance of technology and tangible products, innovativeness leverages customer satisfaction by stimulating their five senses perception. Service-Dominant Logic emphasises the role of innovativeness in service delivery in alignment with customer perception to create Service Innovation. In other words, innovativeness involves the innovative service clues that drive customer perception when experiencing the intangible values of the operation. Despite the importance of innovativeness, studies for the issue appear to be limited and are especially scarce on qualitative research technique. Thus, this study aims to explore the impact of innovativeness on customer satisfaction in the case of hotel operations as qualitative research. A set of propositions are generated based on relevant works of literature and an approximate of one thousand reviews on the TripAdvisor website. The reviewers were international customers of 20 boutique hotels in Vietnam. The thematic analysis with deductive approach was employed to determine the key themes of Innovativeness that influence customer satisfaction. The findings suggest a conceptual model about the influences of 1) Innovative Humanic Clues, 2) Innovative Mechanic Clues and 3) Innovative Functional Clues on the customer’s Transaction-Specific Satisfaction. The model explains how customers perceive innovativeness through the five senses and their evaluation on the innovativeness of the operations. The study, therefore, addresses the importance of innovativeness in service operation management to satisfy customer expectation for a new experience.
Supply Chain Network Design and Tactical Planning in the Dimension Stone Industry Gangaraju Vanteddu (Southeast Missouri State University, Cape Girardeau, USA) Gillian Nicholls (Southeast Missouri State University, Cape Girardeau, USA )
Abstract: A dimension stone supply chain has certain unique characteristics despite having many similarities to a typical manufacturing/processing industry supply chain. Examples of these characteristics include the multitude of dimension stone varieties dispersed over large geographical regions, variable raw dimension stone sizes due to the varying rock deposit quality, and variability in physical stone properties among different varieties. The hardness, texture, fracture, cleavage, and chemical composition vary between dimension stones of different varieties. These unique characteristics produce multidimensional complexity in modelling different processes from the rock excavation stage to the retail store stage. In this research, a dimension stone supply chain is analyzed from strategic and tactical perspectives that address the issues of supply chain network design and production planning. This research reflects the specific characteristics of a dimension stone supply chain that differentiate it from other mineral commodity supply chains. A Mixed Integer Linear Programming (MILP) based formulation is proposed to model the capacitated facility location problem to aid in the supply chain network design, and a linear programming-based model is proposed to address material transformation related supply chain process issues to facilitate medium-term tactical planning. Detailed numerical analyses are also presented to illustrate the proposed mathematical models.
Local and Organic Food Distribution Systems: Towards a Future Agenda Yinef Pardillo Baez (Jönköping University, Jönköping 55318 Sweden ) Movin Sequeira (Jönköping University, Jönköping 55318 Sweden ) Per Hilletofth (Jönköping University, Jönköping 55318 Sweden & University of Gävle, SE-801 76, Gävle, Sweden)
Abstract: There has been an increasing consumer demand for local and organic food as they are considered to be more sustainable, ecological, and healthier. The ‘conventional’ long food distribution system is not sufficient to fulfill the current needs. Consequently, short distribution systems for local and organic food have been gaining popularity, which is not only sustainable but also contributes to food security and satisfies local consumer demand. One such short distribution systems are Alternative Food Networks (AFNs). The AFNs have emerged as a promising provisioning system for local and organic food that promotes economical, environmental, and social sustainability and respect for farming tradition. However, the AFNs are facing challenges in increasing the distribution of local and organic food in the long term. The purpose of the paper is to make a review of the existing short food distribution systems for local and organic food and also to propose a research agenda. In order to achieve this, a literature review is conducted and different food distribution channels within AFNs are studied. The challenges for each food distribution channel are identified and then compared to ‘conventional’ distribution systems. The main finding of the study is a framework of the main challenges of short food distribution channels within AFNs. The practical implication is generic criteria to consider while designing a short food distribution system that closely connects consumers and farmers of local and organic food. The policy implication is to create favorable conditions to encourage short food distribution systems in the long term.
Course Planning in Educational Programs: A Project Management Approach Manohar Madan (University of Wisconsin-Whitewater, Whitewater, Wisconsin, USA ) Kingsley Gnanendran (University of Scranton, Scranton, Pennsylvania, USA)
Abstract: Universities today face heightened competition, tight budgets, and stringent accreditation requirements. Students, on the other hand, have expectations in terms of time-to-degree, cost of attendance, program quality, curricular flexibility, and schedule convenience. Researchers have used various approaches to address educational program planning: mathematical programming, simulation, Markov analysis, material requirements planning, and flow analysis. Here, we propose a data-driven approach that uses enrollment data along with project management methodology. The degree program is viewed as a “project” with multiple, related tasks (courses). We define appropriate performance measures and develop decision rules to determine the schedule for future course offerings.
A Robust Optimization for Multi-Period Lost Sales Inventory Control Problem Shunichi Ohmori (Waseda University, Tokyo, Japan) Kazuho Yoshimoto (Waseda University, Tokyo, Japan)
Abstract: We consider a periodic review inventory control problem of minimizing inventory cost, production cost, and lost sales under demand uncertainty, in which product demands are not specified exactly and it is only known to belong to a given uncertainty set. We propose a robust optimization formulation for obtaining lowest cost possible and guaranteeing the feasibility with respect to range of order quantity and inventory level for possible values of the data from the uncertainty set. Our formulation is based on the affinely adaptive robust counterpart, which suppose order quantity is affine function of past demands. We derive certainty equivalent problem via second-order cone programming, which gives 'not too pessimistic' worst-case.
Supply Chain Risk Governance: Towards a Conceptual Multi-Level Framework Victoria Ahlqvist (Lund University, Sweden ) Andreas Norrman (Lund University, Sweden) Marianne Jahre (Lund University, Sweden & BI Norwegian Business School, Norway )
Abstract: The coronavirus pandemic (COVID-19) is currently putting high pressure on most countries’ critical infrastructures (not only health care), creating huge uncertainties in supply and demand, and disrupting global supply chains. The global crisis will demonstrate the extent to which different parties (countries, public authorities, private companies etc.) can work together and take holistic decisions in such situations. A core question in supply chain management asks how independent decision-makers at many levels can work together and how this joint work can be governed. Supply chain risk management (SCRM), however, has focused mostly on how focal private companies apply SCRM processes to identify, analyse and mitigate risk related to upstream and downstream flows in their supply networks. At the same time, interorganisational collaboration to handle diverse risks is always needed. A risk that hits one organisation often affects other, interconnected organisations. This study aims to develop the term supply chain risk governance with an associated conceptual framework that embraces various types of supply chains and actors. In a cross-disciplinary literature study, we dissect, compare and combine risk governance with interorganisational aspects of SCRM and find that the mechanisms suggested in the risk governance literature coincide with many of those in SCRM. We suggest a combination of these to govern risk processes at an inter-organisational level, regardless of the type of organisation included in the supply chain. This would be suitable for critical infrastructures that often contain a mixture of private and public actors. The scope of the literature employed is limited, and some articles have played a larger role in the framework development. The paper explores new territory through this cross-disciplinary study, extends existing multi-level frameworks with inter-organisational governance mechanisms and proposes new governance mechanisms to the field. This study could support the understanding of how critical infrastructures in our society are governed so as to increase their resilience to both smaller and larger disruptions.
Novel Implementation of Multiple Automated Ground Vehicles Traffic Real Time Control Algorithm for Warehouse Operations: Djikstra Approach Pasan Dharmasiri (RMIT University, Ho Chi Minh City, Vietnam) Ilya Kavalchuk (Sky Way, Minsk, Belarus) Mohammadreza Akbari (RMIT University, Ho Chi Minh City, Vietnam)
Abstract: Automated Guided Vehicle (AGV) systems have benefited numerous industrial warehouses in the transportation of components, parts, and raw materials. Although the AGV systems have offered great flexibility, the implementation of AGV systems imposes major challenges in the management of traffic between multiple ground vehicles inside the warehouse. An AGV traffic control system in conjunction with an anti-collision path planning algorithm presents efficiencies for transferring parts in the warehouse operations. This paper evaluates several path planning algorithms and traffic control algorithms that can be implemented with multiple ground vehicles. The application of the Dijkstra approach is proposed as the most efficient traffic control algorithm and path planning algorithm with the implementation of the anti-collision algorithm. The suggested algorithm is simulated using MATLAB software to check its rationality and performances under a real-life scenario and for comparison with the alternatives. The traffic control algorithm for multiple AGV systems has been performed in a dynamic environment and a time-based simulation and calculations have been used to optimize the velocity profile for each AGV. The finding from this paper presents timely and valuable insights into smart warehouses and logistics phenomenon, as a potential mechanism for optimizing material handling in warehouse management to be more efficient and collision-free through the use of modern technologies such as AGV systems and Industry 4.0 integration.
Drivers and Barriers for Inland Waterway Transportation Violeta Roso (Chalmers University of Technology, Gothenburg, Sweden) Ceren Vural (Chalmers University of Technology, Gothenburg, Sweden) Anna Abrahamsson (Chalmers University of Technology, Gothenburg, Sweden) Matilda Engström (Chalmers University of Technology, Gothenburg, Sweden) Sara Rogerson (SSPA Sweden AB, Gothenburg, Sweden) Vendela Santén (SSPA Sweden AB, Gothenburg, Sweden)
Abstract: Inland waterway transportation (IWT) in Sweden could be a substitute for road transports with the prospects of improving the environmental performance. Sweden currently has no systematic strategies or policies for transports on inland waterways (IWW), and despite available capacity the waterways are barely utilized. In the Netherlands, for example, the IWW capacity is embedded in the transport system and utilized to a large extent. For a successful modal shift it is important to understand the drivers and barriers for the shift and develop strategies to leverage the drivers and mitigate the barriers. This study aims to identify drivers and barriers for IWT based on successful benchmark cases in the Netherlands. Furthermore, based on the learning from these benchmarks the study aims to point out strategic actions for Sweden regarding IWT. The data for this study was collected from IWT organizations, shippers and local administrations in the Netherlands. The results showed that main drivers for IWT are congestion relief, cost reduction and lower environmental impact. On the other hand, main barriers are slow pace of development, high investment costs and poor hinterland connectivity. For a successful modal shift in Sweden, it is crucial to prepare governmental support, a change in stakeholders’ mindset, decisive attitude to modal shift process and a strong long-term perspective.
The Impact of Supplier Involvement in Product Development on Supply Chain Risks and Supply Chain Resilience Grazyna Wieteska (University of Lodz, Poland)
Abstract: Nowadays, the aspects of managing risks and building resilience are crucial for maintaining the continuity of business processes. Therefore, it is highly valuable to recognize those aspects that support such activities. The main purpose of this article is to investigate whether supplier involvement in product development (SIPD) affects the degree of supply chain risk and thus, indirectly impacts supply chain resilience. The study is based on a survey conducted among 500 manufacturing companies, from which several hypotheses have been defined and tested. This allowed the verification of a theoretical model covering the following three research areas: supplier involvement in product development, supply chain risks and supply chain resilience. In particular, the study confirmed that implementation of partnership practices during SIPD positively influences supply risk reduction, while extensive communication during SIPD minimizes operational risk for a company, i.e. risk of human failures and inadequate or failed internal processes. Subsequently, the positive impact of reduced operational risk on SCRES has also been confirmed.
Data Analytics in the Supply Chain Management: Review of Machine Learning Applications in Demand Forecasting Ammar Aamer (Sampoerna University, Jakarta, Indonesia) Luh Putu Eka Yani (Sampoerna University, Jakarta, Indonesia) I Made Alan Priyatna (Sampoerna University, Jakarta, Indonesia)
Abstract: In today’s fast-paced global economy coupled with the availability of mobile internet and social networks, several business models have been disrupted. This disruption brings a whole list of opportunities and challenges for organizations and the domain of supply chain management. Given big data availability, data analytics is needed to convert data into meaningful information, which plays an important role in supply chain management. One of the disruptive data analytics techniques that are predicted to impact growth, employment, and inequality in the market is automation of knowledge work, better known as machine learning. In this paper, we focused on comprehensively overviewing machine learning applications in demand forecasting and underlying its potential role in improving the supply chain efficiency. A total of 1870 papers were retrieved from Scopus and Web of Science databases based on our string query related to machine learning. A reduced total of 79 papers focusing on demand forecasting were comprehensively reviewed and used for the analysis in this study. The result showed that neural networks, artificial neural networks, support vector regression, and support vector machine were among the most widely used algorithms in demand forecasting with 27%, 22%, 18%, and 10%, respectively. This accounted for 77% of the total reviewed articles. Most of the machine learning application (65%) was applied in the industry sector, and a limited number of articles (5%) discussed the agriculture sector. This paper's practical implication is in exposing the current machine learning issues in the industry to help stakeholders and decision-makers better plan transformation actions.
Requirements for Blockchain Technology in Supply Chain Management: An Exploratory Case Study Ari Sivula (Seinajoki University of Applied Sciences, Seinajoki, Finland) Ahm Shamsuzzoha (University of Vaasa, Vaasa, Finland) Petri Helo (University of Vaasa, Vaasa, Finland)
Abstract: The aim of this research study is to look for possible re-search opportunities to applying blockchain technology in supply chain management and logistics. In addition, accom-panying challenges to utilizing blockchain in supply chain management along with possible solutions are also provided. To fulfil the study objective, both theoretical and empirical approaches are adopted for this study. With respect to theo-retical approach, relevant literature on blockchain was re-viewed considering both technical and economic aspects, its architecture and implementation challenges. The empirical part of the research was conducted by studying three case companies operating in the domains of wood construction, consulting and regional development, and technology. Three case companies were analysed with respect to the application of blockchain in their supply chain operations. From the study outcomes, it was noticed that blockchain technology can be utilized successfully in supply chain management in vari-ous business domains in order to provide, for instance, better services and transparency.
A Humanitarian Logistics-Based Planning for Rescue and Relief Operation After a Devastating Fire Accident Kanchan Das (East Carolina University, Greenville, USA) R. S. Lashkari (University of Windsor, Windsor, Canada) Azizur R. Khan (Vision & method, Dhaka, Bangladesh)
Abstract: The frequency of fire disasters is fortunately low, but planning the logistics and related routings for rescue, relief, and rehabilitations operations are major issues in launching any humanitarian assistance. In addition to the logistics planning issues, the reasons for the occurrence of the fire disasters should also be determined so that measures may be put in place to prevent future disasters as well as any potential consequences that may occur after the fire is extinguished. Most cities have efficient fire departments quipped with resources and fire brigades to initiate immediate measures to control the fire and to start the rescue operation. Moreover, most governments take steps to provide relief and rehabilitation assistance to the affected population. Rescue, relief, and rehabilitation steps in traffic-congested cities, especially in heavily populated areas with many businesses and markets, are highly challenging. This research proposes a mathematical modeling-based approach for planning the transportation of relief and rescue resources; conducting relief and rescue operations; and outlining measures to prevent future recurrences. The model will be illustrated using the chemical explosion-fed fire which occurred on February 20, 2019 in the old part of Dhaka in Bangladesh.
Incorporating Transportation Mode Decisions into Production-Shipping Planning: Considering Shipping Consolidation Qian Huang (Waseda University, Japan) Shunichi Ohmori (Waseda University, Japan) Kazuho Yoshimoto (Waseda University, Japan)
Abstract: This study develops a global production–shipping planning model that incorporates a decision on transportation mode after considering the cost function of different transportation modes from the shipper’s point of view. We propose tramp shipping, liner shipping, and a mixed mode to select the optimal shipping mode, considering transshipment and consolidation to exploit economies of scale under a given network. We present mathematical formulations of tramp, liner and mixed modes and apply a piecewise approximation technique with mixed-linear integer programming to linearly approximate the concave minimization problem and efficiently solve it using an off-the-shelf solver. In order to verify the effectiveness of the proposed modes, the three modes are compared and discussed in numerical examples. The advantages and disadvantage of the three modes are discussed under different situations. The result is a decision aided system to support production–shipping planning in selecting the optimal transportation mode.
Green Supply Chain Management Evaluation for Organic Products: Theoretical and Empirical Point of View Blanka Tundys (University of Szczecin, ul. Cukrowa 8, 71-004 Szczecin, Poland ) Tomasz Tomasz Wisniewski (University of Szczecin, ul. Cukrowa 8, 71-004 Szczecin, Poland )
Abstract: This study deals with the green supply chain evaluation for organic products. The authors present the development of the market for such products and the latest trends in world markets in connection with the creation and implementation of a new business strategy relating to the implementation of environmental aspects. The aim of the discussion is to indicate the theoretical basis for the construction of the green supply chain, with particular emphasis on the specificity of organic products. Theoretical considerations are accompanied by the results of empirical research, which indicate in which areas and in the scope of implementation of which management tools there are significant differences between enterprises and what may be the reasons for this. The novelty and value of this study lie in the reference to the principles and elements of the green chain to ecological products and the indication why a holistic approach to environmental protection should be promoted (i.e., production and the whole supply chain promoting the principles of sustainable development). The analysis of literature, methods of descriptive and mathematical statistics and ANOVA (analysis of variance) have been used in this study.
A Multi-Objective Modeling Approach for Integrated Manufacturing and Preventive Maintenance Planning Kamran Moghaddam (Clayton State University, Morrow, GA 300260, USA)
Abstract: This research studies the effects of preventive maintenance and replacement activities on operational costs, overall reliability, and availability of a multi-tasking manufacturing machine. A multi-objective optimization model to find Pareto-optimal preventive maintenance and replacement schedules for a repairable multi-component machine with increasing failure rate is developed. The planning horizon is divided into equally-sized periods in which minimal repairs, full replacement, or do-nothing actions can be performed on each machine’s component. The machine reliability for preventive maintenance aspects, its availability for production purposes, and total operational costs for both preventive maintenance and manufacturing planning are formulated as the objective functions and the multi-objective model is solved using a simulation-based optimization algorithm in real case study. It is shown that the developed mathematical models and the solution method can effectively generate Pareto-optimal preventive maintenance schedules that can be integrated into aggregate production plans.
Blockchain and Supply Chain Management: A New Paradigm for Supply Chain Integration and Collaboration Michael Wang (Higher Colleges of Technology, Abu Dhabi, United Arab Emirates) Yong Wu (Griffith University, Brisbane, Australia) Bruce Chen (Monash University, Melbourne, Australia) Melissa Evans (Scion (The New Zealand Forest Research Institute), Rotorua, New Zealand)
Abstract: Despite there are some arguments about blockchain, it has been highlighted as an important distributed secure technology in the 21st century. It is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Dobrovnik et al. (2018) suggest that blockchain is a revolutionising technology that would change industries at an international level, add values to firms and supply chain networks, improve commerce, and drive economy. Although blockchain has attracted attentions, very few blockchain studies have been focussed on supply chain integration and collaboration areas. This study illustrates the possibilities of applying blockchain technology in the coordination of activities for effective and efficient supply chain management. The study takes a closer look at the use of blockchain in supply chains beyond cryptocurrency, payment, and finance via the use of smart contract and consensus algorithm (i.e. imposing constraints). The key attributes of blockchain are discussed and potential questions were identified in New Zealand. The expected outcome of this study will advance the understanding of the blockchain and supply chain literature, besides inspire both researchers and practitioners to consider the use of blockchain in different context-aware future studies.
Three-Echelon Green Supply Chain Inventory Decision for Imperfect Quality Deteriorating Items Yosef Daryanto (Universitas Atma Jaya Yogyakarta, Indonesia) Hui Ming Wee (Chung Yuan Christian University, Taiwan)
Abstract: This paper presents an integrated supply chain inventory model for deteriorating items with an imperfect quality considering its environmental impact, particularly the supply chain carbon footprint. An imperfect production system produces a certain number of defective items. Therefore, in our model, the manufacturer conducts a 100% quality check to prevent the delivery of defective items. A third-party logistics (3PL) company supports the logistics between the manufacturer and the buyer, by transporting the products from the manufacturer to a warehouse and then delivering the products in a smaller quantity to the buyer. The proposed solution procedure determines the number of deliveries per cycle, delivery interval, and delivery quantity between the 3PL and the buyer simultaneously. It also determines the production quantity of the manufacturer and the delivery quantity from the manufacturer to the 3PL. The objective is to minimize the expected total cost and to reduce total carbon emissions.
An Empirical Investigation of the Relationship between Store Attributes and Customer Satisfaction: A Retail Operations Perspective Yash Daultani (Indian Institute of Management Lucknow, India) Kshitij Goyal (Kalicharan Darshanlal Jewellers, Birla Jewels Limited, Gwalior - 474006, India) Saurabh Pratap (Indian Institute of Technology (BHU), Varanasi - 221005, India)
Abstract: The purpose of this study is to identify key retail store attributes that impact customer satisfaction. The conceptual model is developed with the help of extant literature and expert opinion. The study analyzes the relationship among the store attributes, customer satisfaction, advocacy, and repurchase intention to provide operational insights to retail store managers concerning key store attributes. In particular, jewellery stores in India are selected for this research investigation. The data from jewellery stores and customers located in the Gwalior district is collected using the convenience sampling. The partial least squares-structural equation modeling (PLS-SEM) method is used for model validation and data analysis. The results reveal that the store-related attributes, product-related attributes, and service quality-related attributes have a positive influence over customer satisfaction. In these three attribute categories, the most sought factors by consumers were store layout & ambience, product durability, and overall assistance, respectively. Further, the customer satisfaction is found to affect advocacy and repurchase intention. The study suggests that jewellery store managers should focus on managing the select store attributes identified in this study to improve customer satisfaction, advocacy, and repurchase intentions. Though the study is conducted in the context of Indian jewellery stores, the insights are equally useful and explorable in other retail stores situated at diverse locations.
Understanding the Interrelationship Between Culture of Quality, Employee, and Organizational Performance Vikas Kumar (Ton Duc Thang University, Vietnam; University of the West of England, Bristol, UK ) Yu Han (University of Warwick, Coventry, UK ) Ngan Tr?ong (RMIT University Vietnam, Ho Chi Minh City, Vietnam) Nhu Hoang (University of Economics Ho Chi Minh City, Vietnam ) Arvind Upadhyay (University of Brighton, Brighton, UK )
Abstract: Culture of Quality (COQ) is regarded as an important component of total quality management (TQM) however this is a relatively new emerging theme, compared to other concepts in the quality management domain. As a result, literature resources on this topic are relatively scarce and there is a lack of empirical validation of the COQ framework. This study therefore attempts to fill this research gap and aims to empirically investigate the dimensions of the COQ and their impact on organisational and employee performance. The study also explores the interrelationship between each dimension of COQ. A set of hypotheses are proposed and empirically tested based on the 120 survey responses mostly from the Asian region. The survey data was analysed using SPSS through descriptive analysis, reliability analysis, correlation analysis and regression analysis. Findings show that COQ dimensions; leadership emphasis, message credibility, peer involvement and employee ownership encourage better employee performance. The study further suggests that organisations should work on ensuring supervision from top to bottom, accelerating information flow, creating autonomous working environment and getting staff involved in strategic management. In addition, findings show that COQ factors also interact with each other in varying degrees. The study therefore addresses an important research gap by empirically investigating the COQ dimensions and suggesting that from an employee perspective, organizational performance can be accelerated through quality culture management.
A Hybrid Forecasting Technique to Deal with Heteroskedastic Demand in a Supply Chain Sanjita Jaipuria (Indian Institute of Management, Mayurbhanj Complex, Nongthymmai Shillong, India ) S. Mahapatra (National Institute of Technology Rourkela, India)
Abstract: Under demand uncertain environment, maintaining a proper safety stock is very important to cope with the stock-out situation. Improper estimation of safety stock quantity leads to an improper estimation of the order and further causes bullwhip effect and net-stock amplification. In practice, demand is heteroskedastic in nature i.e. the variance of the demand varies with time. Therefore, it is important to predict the changing demand variance to update safety stock level in each replenishment cycle. The Autoregressive Integrated Moving Average (ARIMA) model applied to predict the mean demand assuming it is homoscedastic in nature. Whereas, the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model deal with heteroskedastic demand and help in projecting the changing demand variance. Hence, a combined approach of ARIMA and GARCH (ARIMA-GARCH) model has been proposed to evaluate the safety stock level and order quantity. The performance of ARIMA and ARIMA-GARCH has been evaluated considering the demand from a cement manufacturing company. The cement demand is seasonal in pattern and highly fluctuate. Using cement demand data, ARIMA (2, 1, 1) (0, 1, 1)12 and GARCH (2, 1) model is identified to forecast 12-months ahead mean and variance of demand to determine the safety stock and order quantity in each replenishment cycle applying the equations proposed by Zhang (2004) and Luong & Phien (2007). Further, bullwhip effect and net-stock amplification ratio are estimated to evaluate the performance of ARIMA-GARCH model against the ARIMA model. From the study, it has found that ARIMA-GARCH model outperforms the ARIMA as it updates the safety stock to calculate order quantity in each replenishment cycle.
A Supply Chain Selection Method for Early-Stage Companies Based on an Adapted Quality Function Deployment Optimization Approach Omar Romero-Hernandez (Hult International Business School and University of California, Berkeley, USA) Sergio Romero-Hernandez (ITAM, Mexico) MV Shivaani (Hult International Business School, San Francisco, USA)
Abstract: In this paper, the QFD methodology is adapted to
accommodate the assessment and selection of supply chain
configurations. This new methodology incorporates a series of
factors including supply chain needs, technical specifications,
relationships among specifications, and potential synergies.
Resultantly, the original contribution of this methodology is the
selection of a supply chain scenario that balances the desire to
fulfill a series of needs, along with the ability of a supply chain
to deliver according to specification. This balance between need
fulfilment and availability of supply chain is particularly
difficult to strive for early-stage companies. Accordingly, this
methodology was applied into the analysis and selection of four
different supply chain scenarios considered for the production
and final delivery of a large number of customer orders, placed
for the Tesla Roadster vehicle, which needed to be fulfilled in
record time. In all cases, scenarios were placed in context of the
company’s mission so that business goals and operating
decisions were aligned. The application was successful, and a
specific supply chain design scenario was selected. The
proposed methodology could be a roadmap for designing
incipient supply chains.
IoT in Supply Chain Management: Opportunities and Challenges for Businesses in Early Industry 4.0 Context Tharaka de Vass (Victoria University Business School, Melbourne, Australia ) Himanshu Shee (Victoria University Business School, Melbourne, Australia ) Shah Miah (Victoria University Business School, Melbourne, Australia )
Abstract: The Internet of Things (IoT) is a global network of smart devices that integrate physical and digital worlds. While the IoT is reported to be a foundation technology for the emerged Industry 4.0 era, empirical evidence related to IoT use in supply chain management is scant. This study, therefore, investigates the opportunities and challenges of IoT use in the supply chains using grounded theory based interviews with managers from the Australian retail industry. The thematic analysis using NVivo reveals that IoT deployment improves visibility of goods movement, data capture, partner communication, and business intelligence. However, retailers face challenges due to the lack of top management initiative, new technology acquisition cost, stakeholders' reluctance to accept change, unwillingness to share data, and inadequate interoperability between partner systems. The study offers a proof-of-concept of IoT benefits that strengthen the IoT-related investment decision, sheds light on adoption challenges and develops propositions for future research.
Investigation of Factors Impacting Lean Implementation in the Indonesian Fast-Moving Consumer Goods Industry Rio Tanudiharjo (Coventry University, Singapore Campus, Singapore) Florence Yun (National University of Singapore, Singapore ) John Joo (PSB Academy Pte Ltd, Singapore) Ivan Arokiam (Coventry University, UK)
Abstract: The fast-moving consumer goods (FMCG) industry is promising in Indonesia, with recorded sales of more than USD 10 billion, which represents more than 18% of Indonesia’s gross domestic product in 2016. Despite the lucrative market, FMCG companies face challenges due to intense competition and increasing operational costs. Consequently, Indonesian companies have begun to explore lean implementation to decrease their costs and improve efficiency, but with minimal success. This study investigates the critical success factors of lean implementation in the Indonesian FMCG industry, as such implementation cannot optimally occur if the implementing company does not successfully manage the important factors that affect lean implementation. This study tested various factors—namely, organizational culture, personnel capability, communication, and leadership and management involvement—that impact lean implementation and organizational performance in Indonesia’s FMCG industry. It was also found that leadership and management involvement are the most important factors. Based on the obtained results, this research proposes recommendations regarding the best lean implementation practices in Indonesian FMCG companies.
A Supply Chain Management Study: A Review of Theoretical Models from 2014 to 2019 Shu-Hsien Liao (Tamkang University, Danshuei Dist, New Taipei City, Taiwan ) Retno Widowati (Universitas Muhammadiyah Yogyakarta, Indonesia)
Abstract: Supply Chain Management (SCM) refers to suppliers, manufacturers, warehouses, distribution centers, and distribu-tors who attempt to minimize the cost of the entire supply chain system while meeting certain customer service levels. This study examines supply chain management by reviewing the development of theoretical models of supply chain man-agement. In regard to the development of these models, this study used “supply chain management” as the key-words/article title and searched for matching articles on the following databases from 2014 to 2019: ScienceDirect, Wiley Online Library, Sage Online Journals, Taylor & Francis Online, Springer Link, Emerald Insight and OSCM FORUM. The various types of independent variables, dependent varia-bles, moderators, mediators, moderated mediation and medi-ated moderation for the research model that were designed and tested in the articles are considered as theoretical models of supply chain management. In addition, this study found supply chain management is a cross-category study issue. Ninety-seven articles are cited from forty-eight journals with twenty-five categories. This research is the first article in terms of investigating supply chain management studies using a theoretical model review based on a qualitative review re-search in supply chain issues. In reviewing these articles, this study categorizes past studies of supply chain management, identifies differences and indicates possible future develop-ments in the study of SCM.
Investigating the Influence of Organizational Factors on Supply Chain Awareness Ramakrishna Yanamandra (University City of Sharjah, Sharjah, UAE)
Abstract: Organizations have improved customer service and witnessed a reduction in their overall costs of operations by implementing supply chain (SC) practices. But many research studies reveal that only the large size companies due to their size and financial ability to invest in innovative practices have been able to visualize these benefits of SCM and many medium size manufacturing companies (MSMCs) have not yet been able to fully reap the positive outcomes of SCM. Organizational factors like size, experience, capital investment and product variety influence this degree of SC awareness and adoption. Studies related to this aspect of SCM are found to be less focused on MSMCs. This paper therefore studies empirically the influence of these organizational factors the degree of SC awareness, identifies the SC practices and analyzes whether degree of SC awareness has any influence on the degree of adoption of SC practices in MSMCs. The results of this study provide value to the SC practitioners and researchers.
Blockchain Technology and Trust in Supply Chain Management: A Literature Review and Research Agenda Abbas Batwa (Lund University, Sweden) Andreas Norrman (Lund University, Sweden)
Abstract: Applying blockchain technology for information sharing in supply chain is driven by many factors, but developing trust is one of the most proposed. However, trust is a multidimensional, intangible concept without an agreed-upon definition. Whereas some argue that trust is the main driver of blockchain technology, others have found a negative relationship. This study focuses on how applying blockchain in supply chain management can influence trust and proposes a corresponding research agenda. Trust and blockchain technology discussions are scattered throughout the literature. Thus, a systematic literature review was performed based on a conceptual trust framework. This study discovered a gap in linking trust theories to blockchain technology applications especially in supply chain management, and provided insights into trust’s reciprocal nature. Current literature strongly expects trust as a consequence for blockchain adoption if considered in the technology. Simultaneously, trust in supply chain partners is strongly expected as an antecedent to blockchain because it requires openness in information sharing. Thus, propositions and agenda for future research are suggested. The research is limited to literature findings due to the immaturity and low scalability of blockchain technology adoption; however, the most reviewed articles in less than two years old, increase the results’ accuracy.
Investigation and Analysis of Omnichannel Logistics Models: A Study in The Electronic Retail Industry in Indonesia Eliot Simangunsong (Universitas Prasetiya Mulya, Jakarta, Indonesia) Ivan Subagyo (Universitas Prasetiya Mulya, Jakarta, Indonesia)
Abstract: The retail industry has undergone several transformations over the years. There are three types of retail channel from a logistical perspective. The first type is single-channel logistics, where retail traders operate one sales channel, and the logistic system is dedicated for one channel. The second type is multi-channel logistics, where retail traders use several channels, such as store and direct sales. The third type is omni-channel logistics, where retail buyers and traders do not differentiate channels. Shared logistics management is usually available through e-commerce and online sales. The objectives of this research are to investigate the retail transformation trend from offline retail traders to multi/omni-channel logistics and identification of suitable business strategy. Empirical quantitative approach is conducted in the form of a survey, which collected 114 data from electronic retailers. The data consists of 70 retail stores with offline and online stores and the other 44 respondents are retail stores with only offline stores. The result of the analysis shows that most retail transactions are offline transactions where buyers have to go to the retail stores to claim their products. However, there is sufficient empirical evidence that, in terms of financial performance, retailers that use multi-channel logistics have the best financial performance, followed by omni-channel and offline stores only. Three critical factors have been identified to contribute to the total retail sales increase. Firstly, price discrimination in product delivery, secondly, the existence of dedicated resources (space and staff) that are optimally used in terms of work time efficiency and buyer service, and thirdly, the ability for consumers to see every goods or stocks in all retail shops/warehouses.
Social Media in Operations and Supply Chain Management: A Systematic Literature Review to Explore the Future Yashoda Devi (Indian Institute of Management, Kashipur, India) Kunal Ganguly (Indian Institute of Management, Kashipur, India)
Abstract: Increased use of social media (SM) has led to the generation of a huge quantity of data. Businesses are increasingly using the SM platforms and the data generated on these platforms in area of marketing, co-creation, and customer involvement. However, the contribution of SM in operations and supply chain management (OSCM) context is still not clear. The aim of this study is to perform an extant literature review of SM in the OSCM context and highlight the applications, methods, and future of SM in OSCM. Systematic literature review approach has been adopted in this study to organize, analyze, and synthesize the existing literature. The results highlight that the disruptive potential of SM has not been fully realized by the OSCM practitioners and researchers and hence the area of SM-OSCM integration is in the nascent stage. Further, the study sheds light on the current applications of SM in OSCM, underlines tools and techniques used by the researchers, and propose future research direction. The study outlines SM characteristics and examples of SM applications in OSCM field. Thus, giving insights to the practitioners and emphasizing the need to incorporate SM to improve OSCM performance. To the best of our knowledge, this study is the first attempt to analyze the existing literature in the intersection of SM-OSCM, and highlight the significance of incorporating SM in OSCM to improve OSCM performance.
Critical Manufacturing Prerequisites for Successful Reshoring David Eriksson (Jonkoping University, Sweden) Per Hilletofth (University of Gavle, Sweden; Jonkoping University, Sweden) Wendy Tate (University of Tennessee, Knoxville, TN, USA ) Mikael Gothager (CANEA Partner Group, Sweden)
Abstract: Reshoring is an emergent theme in research and practice. It is important for researchers to understand the motivating force and prerequisites for these reshoring activities, and to develop a method that supports sustainable reshoring decisions. The purpose of this study is to shed light on the prerequisites for successful reshoring. The preparation for this study consists of a systematic literature review. The findings presented here, however, are revelatory and emerged during a workshop. The findings were further researched at a total of four companies, which were part of data collection in a larger project. This research identified three scenarios, in which preceding manufacturing step, creation of parallel steps, or exploration of overcapacity are central. The paper also presents a stage-gate-process for reshoring decisions as well as a typology of reshoring alternatives. This research sheds light on prerequisites and contextual factors that enable companies to reshore. The importance of manufacturing capabilities can be seen in literature, but has not yet, to our knowledge, been given sufficient attention. The main practical implication is related to offshoring. Overly-aggressive offshoring can complicate future reshoring. As such, reshoring needs to be considered during offshoring, specifically what manufacturing capabilities that are kept at the domestic location.
The First Half-Century of Decision Modelling for Substitutable Products: A Literature Review and Bibliographic Analysis Gaurav Nagpal (Birla Institute of Science and Technology, Pilani, India) Udayan Chanda (Birla Institute of Science and Technology, Pilani, India) Himanshu Seth (Birla Institute of Science and Technology, Pilani, India)
Abstract: Due to the resource constraints of the factors of production (land, capital, capacity, etc.), the firms have to rationalize the assortment of products that they deal in. In such a situation, a consumer whose requirement for a preferred product may not get served from the existing inventories with the seller, may go for some other alternative product. A lot of research work in the past has been done on this demand substitution and its implications upon the assortment optimization, inventory optimization and price optimization. The first work on modelling for substitutable demand is attributed to 1970. Considering the same, the authors decided to do a review of the half-century of work on the modelling for substitutable products. The paper gives a detailed analysis of the published research articles around demand substitution and also discusses the achievements of the existing research. The article also gives a few possibilities of the future extensions to this body of knowledge on the management of substitutable products.
Demystifying the Dabbawallahs: India’s Lean Food Delivery Operations Explained with Operations Management Practices Kumaraguru Mahadevan (Central Queensland University, Australia)
Abstract: The Dabbawallahs have been delivering home-cooked lunches to office workers in Mumbai, India, since 1890. There is a lot written about their success that the led to six sigma certification of their flawless service. Some authors have contradicted this certification. On the contrary, there may be other factors that keep the Dabbawallahs in the limelight. However, there are inadequate discussions about which aspects of their operations underpin their success. This research revealed that Dabbawallah operations could be interpreted with various concepts and theories. They include organisational culture, operations management tools, theories, operational strategies, techniques (JIT), and tools (LEAN and SMED). Moreover, Dabbawallahs are a cultural icon in Mumbai powered by their branding. However, it does not clear which of the concepts, practices, and theories impacts the Dabbawallah operations. The author conceptualised the “Dabbawallah four forces” model incorporating four components: cultural branding; organisation culture; strategy; and six sigma based on LEAN tool (PDCA). The cultural branding is the inertia in the food delivery operations that leads to achieving six sigma or operational excellence which in turn further powers its branding. Overall, the Dabbawallahs run a LEAN food delivery operation powered by its branding and are teaching big corporations about simplicity.
What Can the Brunei Government Do to Encourage Halal Logistics Adoption: Lessons from the Literature Mohamed Syazwan Ab Talib (Universiti Brunei Darussalam Bandar Seri Begawan, Brunei Darussalam) Li Li Pang (Universiti Brunei Darussalam Bandar Seri Begawan, Brunei Darussalam) Nur Atiqah Md Said (Universiti Brunei Darussalam Bandar Seri Begawan, Brunei Darussalam)
Abstract: ABSTRACT
The role of government in developing a country’s logistics industry is undeniable. Initiatives undertaken by governments have been significant in encouraging the implementation of various logistics service adoption and innovation. Few studies have investigated the role of government in any systematic way – particularly in the adoption of halal logistics. Hence, the purpose of this paper is to determine the measures that the Brunei government could undertake in encouraging halal logistics (HLog) adoption in the country. Using content and narrative analyses of extant logistics management literature that discussed governmental initiatives revealed six measures in the form of regulation, fiscal support, infrastructure and assets, education and research, liberalisation, and exhortation. These measures could be undertaken by the Brunei government to encourage HLog adoption. This paper is among the first to consolidate the measures that could encourage HLog adoption and the very few that reflect on Brunei context.
A Hybrid Chemical Based Metaheuristic Approach for a Vaccine Cold Chain Network Kanon Sujaree (Rajamangala University of Technology Rattanakosin, Thailand) Nara Samattapapong (Suranaree University of Technology, Thailand)
Abstract: One year ago, the coronavirus (COVID-19) virus began spreading around the world. Vaccines have now been developed by a variety companies from different countries. Vaccines must be stored in good condition within cold boxes designed to keep vaccines within acceptable temperature ranges. This paper proposes a hybrid algorithm based on a chemical reaction called Hybrid Artificial Chemical Reaction Optimization Algorithm (HACROA) which has been used to design a vaccine cold chain network in northern Thailand. The scope of this research is to focus on the Office of Disease Prevention and Control Area 1 (Chiang Mai, Thailand). The objective of this research is to rearrange routes to minimize total travel distances. Experiments were conducted to compare the efficiency of the hybrid algorithm with other algorithms in term of the distance. The optimal parameters of the algorithm employed a statistical experiment theory namely full factorial design. Experiment design and analysis were adopted to investigate the factors that affect the performance of this algorithm. HACROA was able to rearrange routes and found a better solution than the other algorithms.
Enhancing Supply Chain Capabilities in an ETO Context Through "Lean and Learn" Jenny Backstrand (Jonkoping University, Sweden) Daryl Powell (Norwegian University of Science and Technology, Trondheim, Norway)
Abstract: In the operations management literature, organizational learning has recently begun to emerge as an important missing link to successful lean transformations. As such, drawing on insights from two case companies in the engineer to order (ETO) industry, we frame the successful enhancement of supply chain capabilities through a lens we call “Lean and Learn”. Continuous improvement without learning is not lean thinking. Thus, lean thinking and practice is, in essence, a process of learning; where problems are identified and solutions are created, analysed, selected, and implemented; resulting not only in improved performance but also in improved capability. Since the ETO industry exhibits project-based production, there seems to be natural barriers and resistance to continuous improvement and learning. By building on the notion that an organization with an improved capability is an organization that has learned, this study examines the link between supply chain capabilities and organizational learning in an ETO context by combining analytical conceptual reasoning with meta-data collected from action research at two case companies. The study contributes to practice by pointing out how supply chain capabilities can be enhanced in an ETO context, and to academia by identifying and offering new knowledge to start filling the research gap between three specific research areas: ETO supply chains, organizational learning, and lean management.
Realignment of Product Stewardship towards Chemical Regulations, the Circular Economy and Corporate Social Responsibility – a Delphi Study Sukhraj Takhar (University of Derby, United Kingdom) Kapila Liyanage (University of Derby, United Kingdom)
Abstract: Chemical regulations exist to limit and control the amount of hazardous chemical substances being used by industry. Increasing awareness of diminishing natural resources, increasing pollution, and reducing the amounts of harmful waste, has led towards increasing societal and regulatory pressure on industry to change from the traditional closed-loop manufacturing towards the adoption of sustainable materials and open-loop manufacturing systems as part of the Circular Economy. Corporate Social Responsibility (CSR) extends the relationship between industry and society. Product Stewardship (PS) provides a platform for organizations to assess impacts to manufacturing systems ensuring adequate measures are in place to understand, control or limit any impact(s) from manufacturing and using products. The research question answered in this paper relates to understanding the impacts on PS. This paper has been written based on a literature review and Delphi study. The outcomes from this paper will attempt to outline a framework for PS to align with Chemical Regulations, the Circular Economy and CSR.
A Multi-Criteria Assessment of Industrial Zones’ Attractiveness Scores in Viet Nam NGUYEN Duc Thanh (Viet Nam Center for Economic and Strategic Studies (VESS), Ha Noi, Viet Nam) LE Huong-Linh (Vietnam National University, Hanoi, Viet Nam) BUI Thi Thuy Linh (Viet Nam Institute for Economic and Policy Research (VEPR), Ha Noi, Viet Nam)
Abstract: Since the first industrial zones (IZ) was established more than two decades ago, the number of IZs in Viet Nam has mushroomed to meet the demand of national industrial development. However, it is challenging for enterprises, IZs’ infrastructure developers, policy-makers and other users to assess the competence of IZs for their location decisions due to the substantial number of IZs, the insufficiency of information of IZs, the lack of suitable and reliable ranking methods and the absence of a ready-made ranking of all IZs in Viet Nam. Thus, there is an urgent need to identify precisely the ‘attractiveness’ level of the existing IZs based on their own characteristics or in other words, to make a ranking of IZs nationwide. Toward this purpose, this study applied the multi-criteria analysis method to rank the IZs in Viet Nam. This paper is the first ever to successfully conduct a ranking of IZs in Viet Nam with a database constructed at both macro and micro levels, including local economic environment, accessibility, infrastructure, and financial expenses. The ranking is expected to be a useful instrument for enterprises to choose their locations as well as for IZs’ infrastructure developers to measure the attractiveness levels of their IZs to develop better business plans. Moreover, it can be used as a basis for policy makers in IZs planning in a more reasonable and scientific manner.
Impact of Organizations’ Internal Green Supply Chain Management on Consumers' Purchasing Behavior for Personal Care Products Byoung-Chun Ha (Sogang University, Seoul, Republic of Korea) So-Youn Lim (Sogang University, Seoul, Republic of Korea) Changjoon Lee (Sogang University, Seoul, Republic of Korea)
Abstract: This study examines the impact of organizations’ internal environmental management (IEM), which is one of the important factor of green supply chain management on consumer purchase behavior for sustainable personal care products. This study will provide information useful for managing internal corporate environments as a strategic way to create pro-environmental corporate images. Based on the theory of planned behavior, consumers' green purchasing behavior was measured using attitude, subjective norms, the perceived environmental friendliness of products and their subsequent purchasing behaviors for sustainable personal care products (PCP). The findings suggest that organizational IEM has a positive influence on purchasing behavior for PCP. Thus, corporate disclosure of IEM practices to consumers was found to exert a positive influence on their purchasing behavior. However, there was no significant relationship between the perceived environmental friendliness of products and consumer purchasing behavior. The present study discusses the implications for firms and recommends the integration of IEM and marketing strategy for environmental activities to create an eco-friendly personal care company.
Integration of Radio Frequency Identification Technology in Supply Chain Management: A Critical Review Palesa Kgobe (University of Johannesburg, South Africa) Paul Ozor (University of Nigeria Nsukka, Nigeria)
Abstract: Innovative technological devices has gained popularity with many organisations in search of operations and quality improvements. Whilst the introduction of certain technologies in supply chain management (SCM) can enhance the speed of processes, provide improvement in accuracy and streamline information storage, others can result in product visibility, reduction in inventory and labour costs. This paper critically presents a terse account of Radio Frequency Identification Device (RFID) integration in SCM using literature review analytical research approach. The RFID is a useful tool for effective management of organisations’ supply chain activities and global competitive competencies. The recorded performances are concisely analysed to display an outline of the possible spheres and benefits of RFID adoption. Reports from series of authors claim general acceptability and profitability, to an extent that precludes the invitation of any scepticism. As much as there are key issues identified during RFID technology adoption and utilization, consideration of the driving factors branded by some global organisations was fulfilled. Various approaches and concerns associated with incorporation of RFID by many organisations in SCM were provided. This forms part of an aid in drawing meaningful conclusions about the impact, status and future direction of RFID on SCM.
Analysis of Risk Factors for Temperature-Controlled Warehouses Ranil Sugathadasa (University of Moratuwa, Sri Lanka) Deshan Wakkumbura (University of Moratuwa, Sri Lanka) H. Niles Perera (University of Moratuwa, Sri Lanka) Amila Thibbotuwawa (University of Moratuwa, Sri Lanka)
Abstract: This paper investigates risk factors associated with temperature-controlled warehouses with the aim of improving long-run performance of cold chains. A risk mitigation strategy is derived through Interpretive Structural Modelling (ISM) and a graphical hierarchy is presented to prioritize the impact levels of the risk factors. The paper also critically examines the contextual relationship between individual potential risk factors associated to temperature-controlled warehouses. The findings provide pathways to predict uncertainties that can lead to operational interruptions in temperature-controlled warehouses alongside expert opinions that lead to the development of risk mitigation strategies. Given its integrated approach considering identification, evaluation, analysis, and risk mitigation in temperature-controlled warehouses, we believe this paper helps to enrich both the practice and the literature. With the profound increase of significance in cold chains within the broader domain of supply chain management, this paper provides inspiration to more research in cold chains and temperature-controlled warehouses.
Identifying the Relation Between a Supply Chain Network’s Structure and Its Overall Financial Performance Penina Orenstein (Seton Hall University, USA) Hongfei Tang (Seton Hall University, USA)
Abstract: We construct a data set using financial performance data spanning forty publicly traded companies across several industry sectors over a three-year time-period to identify key structural features of supply networks. The data set for this study allows us to explore supply chain relationships beyond the first tier. For each network within the data set, we examine the network topology via several key structural parameters including node and edge counts, average degree, network diameter, average path length and the power law exponent. We observe that the emergent structure of supply networks is similar (inter-industry), although dominant supply networks are apparent, in some, yet not all the industry sectors. We then link the structural parameters with financial metrics and observe that higher average degree results in decreased overall financial performance of the supply network. Average degree is indicative of how many connections a firm has. A high average degree implies strong inter-connectivity among the firms in the network. Historical analysis of the data (2013-2015) points to an overall decrease in the average degree, especially at the higher tiers. Our analysis suggests that to increase the overall supply network’s financial performance, a low average degree should be targeted.
Supply Chain Efficiency in the Discount Store Industry Post COVID-19: Applying the Supply Chain Efficiency Ratio Kevin Forehand (American Public University System, USA) Juan Roman (Embry-Riddle Aeronautical University, USA) Thomas Schaefer (American Public University System, USA)
Abstract: Over the course of calendar year 2019, businesses around the globe have experienced supply chain disruption due to the COVID-19 global pandemic. The strategic significance of the supply chain has been thrust into the forefront for businesses, economies, and society at large. It has become recognized by researchers and industry that there is a need for higher efficiency within the supply chain while remaining responsive to consumer needs. However, the fragmented and diverse nature of supply chain management, coupled with the complex accountancy and financial outputs of the supply chain, has resulted in limited development of a theoretical foundation specific to supply chain management. The aim of this investigation was to develop a new model (the Supply Chain Efficiency Ratio) that measures supply chain efficiency using financial ratios and by extending the Efficiency Model. Data for this investigation were obtained from U.S.-based public discount stores in the United States. The results of the multiple regression performed indicated that the Supply Chain Efficiency Ratio holds predictive value of an organization’s supply chain efficiency p<.0005. From the study it was found that the Supply Chain Efficiency Ratio can be used as an indicator of supply chain efficiency in discount stores.
Key Components and Critical Success Factors for Project Management Success: A Literature Review Sarath Herath (Management and Science University, Malaysia) Siong Choy Chong (Finance Accreditation Agency, Malaysia)
Abstract: This paper aims to comprehensively identify the key project components and their associated critical success factors (CSFs) contributing to project management success in the context of the construction industry. Although the CSFs have been documented in the literature, insofar there has been no attempt to consolidate them. An extensive search of literature was conducted on the Internet and publication databases using multiple keywords which include, inter alia, ‘project management success’, ‘critical success factors in construction projects’ and ‘key project components’. As a result, this paper proposes five key project components (project human resources management, project design package, project management efficiency, project stakeholder management and project budget) and their unique CSFs contributing to project management success specifically for construction projects, along with some common CSFs such as top management support and commitment in terms of clear direction, communication, technical and skills development, as well as providing a conducive cultural work environment and friendly environmental factors which apply to all types of projects. The resulting outcomes fetch research and managerial implications which are detailed in the body of the paper.
Raw Material Order Allocation Problem Using Mixed Integer Linear Programming and Simulation Ary Wibowo (Institut Teknologi Sepuluh Nopember, Indonesia) Niniet Arvitrida (Institut Teknologi Sepuluh Nopember, Indonesia) Erwin Widodo (Institut Teknologi Sepuluh Nopember, Indonesia)
Abstract: This study aims to provide a conceptual model and to develop a mathematical model to determine order allocation in multi products, multi suppliers, multi carriers, and multi periods problem under uncertainty. The conceptual model describes the connection between related variables. The problem is formulated in mixed integer linear programming (MILP) model. MILP model objective function is to minimize supply chain costs which are purchasing cost, ordering cost, inventory holding cost, carrier cost, late delivery penalty cost, and low-quality penalty cost. In order to illustrate the applicability of the MILP model, a real-world case in cement industry is demonstrated. Based on historical data, the most common uncertainty factor is supplier delivery performance and product quality. Those factors are experimented in MILP model using Monte Carlo simulation. The integration between MILP model and Monte Carlo simulation shows that the proposed model resulted a global optimum solution.
Sustainable Supply Chain Practices (SSCPs) and Organizational Performance: A Mediating Role of Functional Constructs Eliza Sharma (Symnbiosis Interntaional University, Bengaluru, India) Jagdeep Singla (Maharishi Dayanand University, Rohtak, Haryana, India)
Abstract: The research aims to develop a mid-way approach for the adoption of Sustainable Supply Chain Practices (SSCPs) by an organization while managing its functional constructs and organizational performance both. The study undertook the analysis of 100 plus research papers published between 2000 and 2019 to unravel some functional constructs and the relationship between the application of sustainable supply chain practices and overall organization performance. The research highlighted the positive linkage between the application of sustainable supply chain practices and the organization's performance in the long run. Moreover, the functional constructs were reckoned as key to mediate the relationship between the sustainable supply chain practices and the long run organization performance.
Barriers to Adoption of Supply Chain Management in India: A Theoretical Model and Scale Development Srichandan Sahu (National Institute of Industrial Engineering (NITIE), Mumbai, India) K.V.S.S. Narayana Rao (National Institute of Industrial Engineering (NITIE), Mumbai, India)
Abstract: The diffusion of Supply Chain Management (SCM) is low in India despite its many benefits. The purpose of the present study is to create a theoretical model and develop a new scale for investigating the factors that hinder the adoption of SCM in India. The theoretical model has been created based on literature from organizational innovation adoption, organizational decision making, barrier framework, and expert opinion. The scale development followed established practices. The data for scale purification was collected through a survey conducted among 250 large manufacturing firms in India. The present study has created the first theoretical model to investigate barriers to SCM adoption in India. The model comprises four groups of factors: SCM attributes, top management factors, organizational factors, and business environment factors. A new scale was also developed that is reliable and valid. The theoretical model and the scale provide an avenue for researchers and practitioners to study the factors impacting SCM adoption in India. The model may also be useful for firms in other developing economies where SCM diffusion is low, and for barrier studies in other disciplines.
A Study on Transfer Pricing Considering Fairness and Profitability Qian Huang (Waseda University, Japan) Shunichi Ohmori (Waseda University, Japan)
Abstract: Transfer pricing is the setting of the price for goods or services sold among related subsidiaries within an organization. This is an important financial and business issue that has been ignored in many studies concerning supply chain network designs. Some studies have considered transfer pricing into production and supply chain planning; however, total profit optimization is single-objective and does not consider the satisfaction of individual subsidiary from a fair perspective. Considering sustainable development as fairness is also extremely important for a long-term strategy for an organization; therefore, this study focuses on balancing the trade-off between fairness and total profit on the design problem of supply chain network using transfer pricing. Meanwhile, a multi-item, multi-subsidiary, and multi-stage problem is solved by the integrated method of mixed-integer linear programming and fuzzy programming proposed by this study. From the experimental results, we verify that the transfer pricing can maximize the total profit of the supply chain network. In addition, the proposed multi-objective optimization model that considers fairness can benefit subsidiaries with minimal satisfaction while acquiring adequate total profit.
Operational Coordination in Intermodal Hinterland Transport as Support for Managing Operational Disruptions – An Information Processing Perspective Per Wide (Chalmers University of Technology, Sweden) Dan Andersson (Chalmers University of Technology, Sweden) Violeta Roso (Chalmers University of Technology, Sweden)
Abstract: Intermodal solutions, compared to the use of only road, in port hinterland transport involve numerous actors and activities that increase operational uncertainty. The purpose of this paper is to investigate the role of information, through an information processing perspective, for operational coordination in supporting operational disruption management in intermodal hinterland transport. A qualitative case study approach is adopted to obtain an in-depth understanding of operational coordination in a hinterland transport system. The results provide insights into how the actors use information processing for coordination to influence the mitigation of the impact from operational disruptions. The paper supports managers in improving disruption management by understand the processing of real-time information in the coordination for intermodal hinterland transport solutions. This paper provides input for operational disruptions using information for coordination on a day-to-day basis via an information processing perspective in contrast to the predominant coordination at a strategic level in the literature.
Integrating a Voice of Customer to Create the Customer Needs Quality Function Deployment (CN-QFD) for a Sustainable New Product Development Thanyatorn Fongsatitkul (Tokyo Metropolitan University, Japan) Yasutaka Kainuma (Tokyo Metropolitan University, Japan)
Abstract: Questionnaires are effective tools which are commonly used for collecting survey data regarding the actual customer needs. On-line questionnaire/satisfaction surveys are indispensable to obtain accurate results concerning the customer needs. Such information is required to develop the customer needs quality function deployment (CN-QFD) for creating a new sustainable one-handed lipstick packaging. Such surveys use a combination of Telrad’s questionnaire procedure to include or exclude the questionnaire in accordance with the mission requirements and the Hybrid QFD Framework to develop a new product. A detailed analysis of the satisfaction survey results reveals the actual customer needs which can be further incorporated into the engineering characteristics. After excluding a number of the questionnaires, the remaining ones could be further modified and become the critical parts to construct the final QFD to form the House of Quality (HoQ). In this study, several designed alternatives were considered and the best resolution alternative for the sustainable one-handed lipstick packaging was selected and prototyped accordingly with the supports of SolidWorks Software and 3D Printer. The round-shape casing encourages keeping the lipstick in the palm of the hand, thus enabling the easy use of the slide-up and -down mechanism. The cap lid flips up conveniently using only one-hand, which provides a better opportunity to be used suitably and effectively at all times. Finally, the lipstick casing can be reused and the severed ring at the sleeve can also be twirled and removed conveniently which minimizes the waste of lipstick content.
Critical Factors for Food Safety in Global Commodity Flows with a Focus on Logistics – A Case Study on Mycotoxin Contamination of Agri-Bulk Commodities Milena Zupaniec (German Federal Institute for Risk Assessment, Germany) Helmut-A. Schafft (German Federal Institute for Risk Assessment, Germany) Ann-Kathrin Lindemann (German Federal Institute for Risk Assessment, Germany) Robert Pieper (German Federal Institute for Risk Assessment, Germany) Anneluise Mader (German Federal Institute for Risk Assessment, Germany)
Abstract: Logistics as the link between the different stages of the food supply chain can, due to its complexity, provide multiple opportunities for food / feed contamination along global commodity flows. Considering comprehensive international food safety regulations, such as the Regulation (EU) 2019/1381, risk assessment in the field of consumer health protection requires specific approaches determining the impact of logistics on food safety. To identify critical dimensions and corresponding critical factors for food safety in global commodity flows and map complex interactions, we conducted a case study on mycotoxin contamination of agricultural commodities. Accordingly, we interviewed 24 stakeholders directly or indirectly involved in the European and global purchasing and logistics sector of agricultural commodities. Based on the outcome of the interviews, the most relevant dimensions are Logistical processes, Food safety measures, Human factor, Disruptions and shifts, Logistics related conditions, Cooperation, Main Characteristics of the procurement sector and Port characteristics. Food safety risks along global commodity flows are not solely attributable to the logistics sector per se. In particular, Food safety measures (e.g. Quality management and Sampling) that are not adapted to the logistics sector, as well as varying Logistics related conditions (e.g. Infrastructure and Standards) have proven to be major food safety challenges. By providing an overall picture of global commodity flows, the study contributes to reduce current uncertainties in risk assessment. The identified food safety challenges in the logistics sector need to be addressed holistically throughout the entire supply chain and in cooperation with food safety authorities.
Agility in Humanitarian Response Operations for Water Based Disasters Joshin John (Xavier Institute of Management & Entrepreneurship, India)
Abstract: The purpose of this paper is to explore relationships between two dimensional components of agility i.e. flexibility and responsiveness in humanitarian response operations with special reference to water based disasters such as cyclones and floods. Empirical data from four case-studies on cyclones and floods were collected to study and analyze humanitarian response operations. This includes data from 142 interviews, participant observation and documents obtained during field visits. The analysis revealed that supply chain visibility had a positive influence on both reactivity and volume flexibility. However, in-station last mile logistical capabilities mediated the relationship between reactivity and velocity of the supply chain. Delivery flexibility was observed to be dependent on reactivity. The results suggest that humanitarian organizations should focus on enhancing last mile delivery capabilities, communication and infrastructural resilience, and improve training of field forces for disaster-specific operations. Community involvement was observed to have a positive effect on response operations. This paper is the first to study agility of response operations for water based disasters. The insights will be useful for practitioners and researchers to build models that are more realistic. The theoretical contribution is the development of model capturing relationships between flexibility and responsiveness dimensions of supply chain agility.
Managing the Risks in the Clothing Supply Chain Considering the Coronavirus Pandemic Eli Sumarliah (University of Science and Technology Beijing, China) Kamila Usmanova (University of Science and Technology Beijing, China) Fauziyah Fauziyah (University of Science and Technology Beijing, China) Kawther Mousa (University of Science and Technology Beijing, China)
Abstract: This paper examines the systemic and complex influences of the 2020 Coronavirus epidemic on the supply chains (SCs) of international clothing companies through a global business risk management perspective. The Coronavirus pandemic has triggered supply and demand disturbance risks that strongly affect supply chain (SC) management, signifying a necessity to develop the agility to alleviate such risks. This study revealed that the lean-SC management model is inadequate due to the dearth of transparency in the SCs caused by the growing demand uncertainty detected even before the Coronavirus pandemic. Although agile-SC management copes with this issue by improving the purchaser-supplier relations and communication to enhance information exchange, this model also requires a related rise in business stock and inventory costs. Hence, the paper provides several strategies that companies can implement to manage the risks and identify main fields for future studies, including the parties in the clothing SCs both downstream and upstream.
The State of Cold Logistics Supply Chain in a Developing Asian Country - A Preliminary Insights Mohd Faizal Abu Hassan (Sultan Haji Ahmad Shah's Polytechnic, Pahang, Malaysia) Abdul Hafaz Ngah (Universiti Malaysia Terengganu, Malaysia) Mohamed Syazwan Ab Talib (Universiti Brunei Darussalam, Brunei Darussalam)
Abstract: The increasing demand for cold chain logistics services in Malaysia has shown positive development. Food and beverages (F&B) industries dominate the demand and demand for pharmaceuticals and chemicals products are also on the rise. However, the under-supply of cold chain services could lead to a supply shortage in the future. Hence, this study aims to understand the reasons to adopt cold chain services among the providers from the perspectives in Malaysia. This exploratory study utilised a qualitative design and approach to gathering information on cold chain adoption. A purposive sampling method was applied, followed by interviews with the respondents who hold managerial positions. The results in this study showed that income diversification, higher profit margins, customer demand, company’s capabilities in terms of expertise, and resources were among the enablers that offered cold chain services. Furthermore, these enablers agreed that cost, lack of expertise and resources, customers location, and lack of government support were the barriers to these services. Later, the respondents agreed that the future of the cold supply chain in Malaysia had shown a positive trend driven by demand. Moreover, this study’s outcome can be a preliminary work to confirm the future findings and become a reference for non-providers for evaluation in their decision-making to become a cold chain provider.
Additive Manufacturing: Currently a Disruptive Supply Chain Innovation? Per Engelseth (Tromsø School of Business and Economics, Norway) Maryam Salman (Norwegian University of Science and Technology, Norway) Waqas Mushtaq (Norwegian University of Science and Technology, Norway) Fahad Awaleh (Kristiania University College, Norway) Remiguisz Kozlowski (University of Lodz, Poland) Richard Glavee-Geo (Norwegian University of Science and Technology, Norway)
Abstract: Directs attention to additive manufacturing in a supply chain context. Analysis questions the degree it currently is a disruptive innovation. A case study consisting of interviews with 15 companies, including observations of some of these companies, providing a varied set of subcases. The research describes individual companies’ histories of using 3D printing tools, its current use and future prospects, as perceived by various informants. In the supply chain, additive manufacturing moves production closer to the product user, albeit currently on a small scale. Some firms are already specializing in providing additive manufacturing as a service. Networking and sourcing emerge as increasingly important issues to govern the development and use of additive manufacturing technology in the value chain of each studied company. Findings reveal how additive manufacturing at current is in its infancy and has limited impact on the networked production structure: it has not yet reached the stage of being a disruptive innovation. Investigation also reveals perceptions on how additive manufacturing in the near future may change the logistics flow structure in global supply chains, then becoming a disruptive innovation.
Designing Clusters of Distribution Area and Delivery Route for Maximizing the Vehicle Utilization and Minimizing the Workload Gap and Transportation Cost Amelia Santoso (University of Surabaya, Indonesia) Joniarto Parung (University of Surabaya, Indonesia) Dina Prayogo (University of Surabaya, Indonesia) Winardi (University of Surabaya, Indonesia)
Abstract: This paper deals with determining vehicle routes in product distribution from a distributor to a large number of retailers in a vast distribution area. To determine the vehicle routes in a vast distribution area and a large number of retailers that have to be served causes the VRP model to become complicated. Therefore, this paper applies the cluster first-route second concept to design a distribution system in two stages. The first stage is to cluster the distribution area based on the distance between retailers. The second stage is to determine a vehicle route for each cluster using the multi-objective vehicle routing problem with time window and balanced driver workload (VRPTWBW) approach. The proposed VRPTWBW model has three objectives, i.e., (i) to minimize the number of assigned vehicles, (ii) to minimize the total delivery time, and (iii) to balance the driver workload. This second stage starts once the clusters of the distribution area are set. Contrasted with the current practice in the company, this proposed model offers the significant impacts: (i) the reduction of workload gap among driver about 29% (from 2.59 hours to 1.83 hours); (ii) the increased of vehicle utility by 44% (from 30% to 43%), and (iii) the increase savings of two-week course fees of IDR. 11 million (about 23.84%).
The effects of dynamism, relational capital, and ambidextrous innovation on the supply chain resilience of U.S. firms amid COVID-19 Charles Robb (Dongguk University, South Korea) Minhyo Kang (Busan University of Foreign Studies, South Korea) Aaron Stephens (Hartwick College, USA)
Abstract: Supply chain resilience has become a topic of revitalized interest amid COVID-19. Amongst other anomalies, COVID-19 continues to disrupt global supply chains; thus, it remains critical to understand resilience in supply chains as a mechanism with which to respond to pandemic-related disruptions. Supply chains remain an important determinant of firm capital consumption and, as such, this study aims to examine the relationships between ambidexterity and relational capital as they relate to the resilience of U.S firms’ supply chains during the contemporary market irregularities. A sample of 227 firms located in the United States were collected to analyse these convictions. PLS-SEM was utilized to test both direct and mediation results. Results suggest relational capital may have a significant role in facilitating supply chain resilience. Relational capital also acts as a strong mediator between ambidextrous innovation and resilience. Nevertheless, ambidexterity is less influential upon supply chain resilience than anticipated. This study therefore contributes towards existing supply chain resilience literature by providing a novel approach to including relational capital; something not previously considered. This paper also contributes to a greater understanding of the notions of ambidextrous innovation and relational capital amid extreme supply chain disruptions caused by the COVID-19 pandemic.
Acceptance of Blockchain Technology in Supply Chains: A Model Proposal Haldun Colak (Anadolu University, Turkey) Celal Hakan Kagn?c?oglu (Anadolu University, Turkey)
Abstract: The aim of this study is to determine the factors that affect the adoption of blockchain technology by the companies in the industries such as raw material, transportation, healthcare, food, financial and to propose a comprehensive model explaining adoption behavior in the supply chain context. Supply chain, blockchain, information systems, and logistics literature have been extensively examined to create the associated model. Accordingly, the concept of inter-firm acceptance faced by researchers was accepted as a differentiating point and related constructs and the model were designed specifically for blockchain technology. A comprehensive literature review showed that there is a very limited number of studies on the acceptance of blockchain technologies by companies. The model created consists of 4 main determinants and 10 related attributes. In this context, inter-organizational factors such as power and trust of chain stakeholders and readiness for technology as organizational factor were analyzed within the integration of relative advantage, transparency, and cost as main characteristics of the technology. This model provides an important and unique perspective for practitioners and the academic studies to be carried out.
Strategizing Radio Frequency Identification (RFID) in the Retail Supply Chains of Pakistan: A Multiple Case Study Sanaa Khayyam (University of Bergamo, Italy ) Asher Ramish (University of Management & Technology, Pakistan) Khaliq Rehman (University of Management & Technology, Pakistan) Aly Raza Syed (University of Management & Technology, Pakistan)
Abstract: Adopting enabling technologies in developing countries is a challenge for enterprises due to the lack of awareness levels. This study aims to facilitate the retail sector of developing countries like Pakistan by providing them with the framework for Radio Frequency Identification (RFID) implementation, which they can implement in their context with slight modifications. This paper uses an exploratory research design with multiple case study methods within the qualitative research domain. The proposed framework covers technical and non-technical aspects and dimensions and would help adopt and implement RFID in developing countries. The current study attempts to eliminate the gaps in the previous frameworks through the inputs taken from the semi-structured interviews from the retail sector of Pakistan. Interviewees were selected based on purposive sampling. The study would is for the retail sector of developing countries to adopt and implement RFID in their supply chains through the application customized framework according to the nature of the organization. This framework will help the managers by improving the overall tracking and tracing of the products. This research will add value to the existing literature as significantly less research has been performed in the retail sector of developing countries related to RFID implementation.
Sustainable Agro-industry Logistics Solutions using Spatial Analysis Hartrisari Hardjomidjojo (IPB University (Bogor Agricultural University), Bogor, Indonesia) Rindra Yusianto (Dian Nuswantoro University, Semarang, Indonesia) Marimin Marimin (IPB University (Bogor Agricultural University), Bogor, Indonesia) Suprihatin Suprihatin (IPB University (Bogor Agricultural University), Bogor, Indonesia)
Abstract: This study proposes a new approach to determine sustainable agro-industry logistics by minimizing supply and demand imbalances using spatial analysis. The potato food crop agro-industry at Wonosobo district, Central Java, Indonesia, was selected as the case. This study first developed a spatial-based cropland sustainability classification. Second, developed a sustainable harvest prediction by modifying the multi-thresholding using remote sensing and IoT, namely SHT15 and rain gauge sensor. Third, we developed a spatial route planning wherein we adjust the COG and spatial Dijkstra algorithm to select the optimal route. This study developed a comprehensive sustainable analysis by integrating spatial dimensions with environmental, economic, and social dimensions to support sustainable food security. Multi-criteria spatial analysis was used in an environmental measurement considering altitude, soil texture, slope, rainfall, humidity, and temperature. In the economic dimension, we compare the predicted total harvests with the current production. We consider the social dimension, namely population density, spatial-temporal congestion, and risk hazard-zones index. This study shows that spatial-based cropland sustainability classification can determine the most sustainable location for potato plants. This study shows that the sustainable harvest prediction by the modified multi-thresholding can predict the harvests more accurately, namely 89.3%. Spatial distributing route planning with adjustment of the COG obtains more rational coordinates than the classical method. In addition, spatial Dijkstra algorithm modification can show a more optimal route for agro-industrial commodities. This new approach has demonstrated that spatial analysis can be an alternative solution to minimize supply and demand imbalances in sustainable agro-industry logistics.
Impact of Experience and Education on Risk Attitude and Risk Perception of Supply Chain Management Professionals Douglas McWilliams (University of West Georgia, Georgia, USA) Carmella Lennon (Jackson State University, Mississippi, USA) Johnny Lowery (Claflin University, South Carolina USA)
Abstract: Globalization and technology have allowed supply chains to be geographically spread across the world. Supplier evaluation and selection play a major part in the continuity of these supply chains. Our study attempts to answer three fundamental questions related to the risk attitude and risk perception of Supply Chain Management (SCM) professionals in the evaluation and selection of suppliers. What is the relationship between their risk attitude and risk perception? How do SCM professionals with different risk attitudes differ in the way they perceive risk? Last, do factors such as education and experience affect the relationship? We test these questions using empirical data from a sample of 307 randomly selected SCM professionals. Prospect theory and bounded rationality theory are both used in efforts to mutually develop the scope of this study. Our findings suggest a negative relationship exists between risk attitude and risk perception and that the relationship is strongly significant. The results showed that experience did not moderate the relationship; however, formal education in supply chain management moderate the relationship. SCM professionals with formal education in SCM tend to perceive a higher risk of supply chain disruptions for given scenarios compared to SCM professionals without formal education in SCM.
A Conceptual Framework for the Identification of Food Safety Risks in Global Commodity Flows Exemplified by Agricultural Bulk Commodities Milena Zupaniec (German Federal Institute for Risk Assessment, Germany) Helmut-A. Schafft (German Federal Institute for Risk Assessment, Germany) Robert Pieper (German Federal Institute for Risk Assessment, Germany) Ann-Kathrin Lindemann (German Federal Institute for Risk Assessment, Germany) Anneluise Mader (German Federal Institute for Risk Assessment, Germany)
Abstract: Globalization of agricultural trade has led to food supply chains becoming increasingly complex. A high number and diversity of entities, processes, and localisations can create food safety risks and vulnerabilities at all stages of the food supply chain. To date, food safety measures have focused mainly on production, processing, and retail. However, the dimension of commodity flows embedded in the logistics sector, which links the main stages, has largely been neglected. The resulting knowledge gaps pose a challenge to risk assessors concerned with consumer health protection. To map the research area of global commodity flows and investigate their impact on food safety, a conceptual framework (CF) was developed using agricultural bulk commodities (ABC) as an example. The construction of the CF is based on a qualitative text analysis of multidisciplinary literature, adapted from the Grounded Theory approach. Here we determined and illustrated different levels of the main concepts inside and outside of ABC flows relevant for the investigation of logistics in terms of food safety. The main internal concepts are Key processes and Management, Key actors and Cooperation, Routes and Nodes, and their Quality and Capacity. The external concepts can be divided into Logistics-related conditions and the associated Diversity, as well as Drivers of change associated with the Dynamics of globalization. The developed CF represents a first model for holistically investigating logistics in terms of food safety by defining, structuring, and delimitating logistics as a new field of investigation in risk assessment. It offers suitable concepts and application-oriented theories related to food safety that serve as a basis for empirical studies, such as the identification of critical factors in the logistics sector. Further, it serves as an aid to practitioners in dealing with complex food safety problems in the context of risk management.
Industry 4.0: A Bibliometric Analysis in the Perspective of Operations Management Juliano Sordan (Federal University of Sao Carlos, Brazil) Pedro Oprime (Federal University of Sao Carlos, Brazil) Marcio Pimenta (Federal University of Uberlandia, Brazil) Paolo Chiabert (Politecnico di Torino, Torino, Italy) Franco Lombardi (Politecnico di Torino, Torino, Italy)
Abstract: This study aims to analyse the literature regarding the characteristics of Industry 4.0 in the context of operations management. The analysis covers the evolution of publications over time, the countries involved, the most prolific journals, the most cited authors, and the identification of the most frequent words that can generate insights for the research agenda. A total of 235 articles published between 2011 and 2017 were collected through an automated process from the Scopus and Web of Science databases and later analysed using data mining, bibliometric indicators analysis, clusters analysis, networks analysis, and word cloud. The bibliographic analysis explained the interaction between the various concepts and techniques associated with the central theme. These concepts and respective characteristics discussed allow an understanding and the development of agenda with theoretical possibilities to fill current research gaps.
Empirical Investigation of Mediating Role of Six Sigma Approach in Rationalizing the COQ in Service Organizations Yanamandra Ramakrishna (University City of Sharjah, UAE) Haitham Alzoubi (University City of Sharjah, UAE)
Abstract: The aim of this study is to investigate the role of Six Sigma and Lean Operations in achieving the minimization of Cost of Quality (COQ) in service sector companies in UAE. The impact of the Lean Operations on controlling and rationalizing various costs related to quality through six sigma approach is studied on these companies listed in Dubai Financial Market. To accomplish this, an empirical research methodology has been adopted by conducting a field survey to collect the data, using a structured questionnaire. Totally 120 questionnaires were approved for analysis out of the total number of distributed questionnaires. The results of the study revealed the need for application of six sigma approach in service sector companies to improve the quality of services and for achieving the rationalization of costs related to quality. The study also revealed very interesting aspects related to lean and six sigma in service sector companies. Based on these findings, a number of suggestions and recommendations were made. These include the need to create an awareness about the theoretical concepts and practical implications of six sigma, lean management, and total quality management. The need to adopt a professional methodology to implement these concepts in service companies listed in Dubai Financial Market is also recommended through this study.
Exploring Performance Deficits in the Fish Feed Supply Chain of Bangladesh Imranul Islam (Patuakhali Science and Technology University, Bangladesh) Max Nielsen (University of Copenhagen, Denmark) Birgit Schulze-Ehlers (University of Gottingen, Germany ) Badiuzzaman Badiuzzaman (Patuakhali Science and Technology University, Bangladesh)
Abstract: Fish farmers in Bangladesh have many issues with the performance of the feed supply chain. The study used the supply chain operations reference (SCOR) model to select the key operational stages of the supply chain and the measurement criteria. The analytical hierarchy process (AHP) prioritized the phases and criteria and developed the expected performance of the feed supply chain. By comparing the expected performance and the perceived current performance, we identified the performance gap in the feed supply chain. The transaction costs were calculated separately. The study found that high costs were the main reason for low performance in the feed supply chain. The reliability of the product quality was also a concerning issue in the chain. Compared to other actors in the chain, dealers are the low performers. The study suggests performance can be improved by developing direct channels between manufacturers and farmers, thereby omitting dealers and concentrating on local raw material production. The study also demonstrated that transaction costs play an important role in the performance of the supply chain. This study is the first to empirically examine this situation and is innovative in that its examination of the feed supply chain included transaction costs.
A Soft System Dynamic Approach for Designing Palm Kernel Shell Supply Chain Handaya Handaya (IPB University, Bogor, Indonesia ) Herri Susanto (Bandung Institute of Technology, Bandung, Indonesia) Dikky Indrawan (IPB University, Bogor, Indonesia ) Marimin Marimin (IPB University, Bogor, Indonesia)
Abstract: Palm kernel shell (PKS) is a waste of palm oil processing, that has enormous potential to become a green energy resource for industries with thermal conversion. To realize PKS potential as biomass fuel, it is important to build an effective, efficient, and sustainable supply chain model. As with other biomass, PKS supply chain involves collection processes, storage facilities, and a transportation network, which is dynamic and optimizable. Soft systems dynamics methodology (SSDM) has been implemented in this study, by which its key feature of system dynamics is recognized as one of the most ideal modeling techniques for studying such complex and multivariate system. We demonstrate how to apply SSDM in analyzing and designing a sustainable supply system of PKS through mathematical modeling and simulations, which capture the long-term effect of and the interactions among supply chain design variables and parameters. The simulation results show that the proposed supply chain model would be able to deliver continuous availability of PKS at the end customer side by achieving the goal of minimum 95% customer production level despite decreasing PKS generation rate from the source and increasing other consumption rate. Furthermore, decision makers can identify and implement necessary changes and recommendations to improve the existing supply chain system. The application of soft systems dynamics approach in biomass supply chain will enable greater use of green energy for continuous industrial purposes.
A Proposed Model for Drug Demand Forecasting and Ordering Inventory System for Dengue Endemic Irwan Syahrir (Muhammadiyah University of Surabaya, Indonesia) Suparno (Institut Teknologi Sepuluh Nopember, Indonesia) Iwan Vanany (Institut Teknologi Sepuluh Nopember, Indonesia)
Abstract: In a tropical country such as Indonesia, dengue fever has become an endemic outbreak because it occurs almost every year, especially in the beginning and towards the end of the rainy season. Districts affected by dengue fever need accuracy in predicting the number of patients and drugs. Hospitals need a suitable drug order inventory system to treat dengue patients. The objective of this paper is to develop a model with higher accuracy and suitability. We propose a two-phase model with several steps and methods to fulfill the objective of each phase. In first phase, we determine a drug forecasting method to predict the number of patients and drug demand. In the second phase, we determine the drug order system (continuous review and periodic review) including the optimal quantities, frequencies, safety stock, and reorder point. The proposed model was then applied in a hospital in Sidoarjo. The results show that the proposed model can be applied in the district and the hospital; and the drug demand forecasting and ordering system resulted in optimal inventory and costs. This study proposed a new multi-phased model that can be used in drug demand forecasting and ordering system, with practical benefits for hospitals and the healthcare systems.
Forecasting the Quality of Port Infrastructure of Asian Port Countries: An Application of the Model GM (1, 1) and Clustering Them Using HCA Algorithm Mohammad Hasan (Shijiazhuang Tiedao University, Shijiazhuang, China) Chen Yan Chun (Shijiazhuang Tiedao University, Shijiazhuang, China) Shengyong Yao (Shijiazhuang Tiedao University, Shijiazhuang, China) Arifa Parvin Kemi ()
Abstract: This study is an endeavor to forecast the quality of port infrastructure of Asian port economies. A sample of 32 economies are selected counting the year from 2015-2019. Data are collected from the Global Competitiveness Report. A data forecasting algorithm, the GM (1, 1) approach, is applied, and finally the economies are clustered with their forecasted values using Hierarchical Cluster Analysis (HCA). The empirical findings demonstrated that there would be change in the quality of port infrastructure. Economies with high quality of port infrastructure will be the best performer, while the others with poor infrastructure will do better in future as well. The modified Grey model showed excellent accuracy and better performance in forecasting the quality of port infrastructure. The forecasting values of each country offer valuable insight to formulate individual policies and strategies. The port facilitators and the decision makers would be able to distinguish the higher and the lower performer from the cluster analysis and focus on the underperformed region undertaking individual measures to improve the quality of their port infrastructure as well. Additionally, it will contribute as a hybrid methodology that the individual country can apply practically in prediction and clustering them to take decision on the quality of port infrastructure for next 5 years. Finally, it will theoretically extend the frontier of knowledge in port infrastructure research.
A Comprehensive Business Process Management Application to Evaluate and Improve the Importations Practices on Big-box Stores Odette Chams-Anturi (Universidad de la Costa, Colombia) Milton Soto-Ferrari (Indiana State University, USA) Anamaria Gomez (Western Michigan University, USA) Juan Escorcia-Caballero (Universidad del Norte, Colombia) Daniel Romero-Rodriguez (Universidad del Norte, Colombia) Maureen Casile (Indiana State University, USA)
Abstract: Big-box or chain stores are massive retailers that sell all types of products to final consumers. Managing business processes that integrate information systems is a critical issue in big-box stores nowadays. Commercial initiatives have focused on optimizing internal processes to enhance productivity and react to fluctuating business environmental forces. This research proposes a comprehensive business process management (BPM) design and application for the importations process on a big-box store located in Colombia, highly integrated with basic and advanced information systems. Big-box stores use advanced information systems that synchronize with multiple essential internal processes. We modeled the importations process phases with a robust graphical framework for BPM methods and flexible automation. We evaluate the actual process time performance and contrast its current state with the novel BPM model implementation benefits. The application of the proposed BPM model contemplates a 43% reduction in the execution times of process activities with a projected 30% decrease in default costs.
A Systematic Review on Factors Influencing Container Terminal’s Performance Fajar Kurniawan (University of Malaya, Kuala Lumpur, Malaysia) Siti Nurmaya Musa (University of Malaya, Kuala Lumpur, Malaysia) Noor Hasnah Moin (Institut of Mathematical Science, Kuala Lumpur, Malaysia) Taufik Roni Sahroni (BINUS University, Jakarta, 11480 Indonesia)
Abstract: The container terminal is considered as a supply chain station where freight containers are transferred from the sea into the hinterland or vice versa. Port terminal operators have to brighten up their strategies for increasing port performance to compete with other rival marine ports. Technological advances in port operation have created a wide variety of study options for port designers, but little attention has been paid to the fully examine factor influence in port performance from both technical operation and management perspectives simultaneously. The paper aims to substantially review factors that influenced container terminal performances. The authors report a systematic literature review conducted using the method of Preferred Reporting Items for Systematic reviews and Meta-Analyses. 106 published articles have been gathered from Web of Sciences journal databases. The findings of the review classify the domain of the studies into eight main themes such as assignment, scheduling, optimization, strategic management, risk, performance evaluation, information system, and maintenance. The literature review also identified trends of those main themes. Furthermore, the studies found the highest performance cluster of container terminals focused on operation, facility, and equipment. In conclusion, operation time, container handling time, and quay crane productivity have been identified as the primary elements that influenced container terminal performance.
Key Performance Measures and Digital-Era Technologies in Warehouses Yeliz Demirk?ran (Yasar University, 35100 ?zmir, Turkey ) Omer Ozturkoglu (Birmingham City University, Birmingham, UK)
Abstract: The manuscript aims to benchmark warehousing industries in developing and developed countries in terms of performance measures from the perspective of industry professionals and the potential impact of digital-era technologies. Compared with the US-based Warehousing Education Research Council’s reports published in 2018 and 2019, this paper presents that “on-time shipments” is the most critical performance measure in Turkey in both 2018 and 2019 while “order picking accuracy” is in the US. This study also presented that mobile technologies are considered as the most influential digital-era technology in terms of supporting ongoing improvements in warehousing operations and providing a competitive advantage to the companies in both Turkey and the US. Moreover, some digital-era technologies such as driverless vehicles or drones, 3D printing and simulation are considered the least supportive or competitive technologies according to the professionals in Turkey.
Applying Greenfield Analysis for Optimal Planning of COVID-19 Vaccination Outreach: A Case Study of Bali Province Arief Adhitya (Calvin Institute of Technology, Indonesia) Meyland Meyland (Calvin Institute of Technology, Indonesia) Maria Nauli (Calvin Institute of Technology, Indonesia) Martin Tjahjono (Calvin Institute of Technology, Indonesia) Iskandar Halim (A*STAR (Agency for Science, Technology and Research), Singapore)
Abstract: A key strategy to winning the war against the COVID-19 pandemic involves acquiring sufficient vaccination coverage of the population to attain herd immunity. Such a task is highly daunting for many countries, especially for those whose significant portions of the population have limited access to vaccination services. One way to overcome this challenge is by implementing an outreach program, which involves setting up new outreach sites in remote and sparsely populated areas to improve the vaccination access for people residing there. This paper presents a novel approach to the planning of such outreach sites systematically and optimally. Our approach comprises a two-step Greenfield Analysis (GFA) procedure implemented using supply chain design software. The first step involves the design of the vaccination network to find the number and location of outreach sites that maximize the vaccination coverage for people residing within a threshold distance from the outreach sites. This is followed by the design of the vaccine supply network between the health centers and the outreach sites to determine the required vaccine doses that need to be kept at the vaccination sites. The required number of vaccinators and their ancillary supply kits can also be determined accordingly based on the supply network. We have tested our approach on a case study involving the COVID-19 vaccination scheme for Bali Province in Indonesia. We obtained the optimal number and locations of outreach sites for each regency in Bali and the whole province.
Sustainable Supply Chains of Sri Lankan Manufacturing Organizations: A Study on Operational Excellence Models During the COVID-19 Pandemic M.T.D. Malsinghe (Sri Lanka Institute of Information Technology, Sri Lanka) M.H.A. Gunathilaka (Sri Lanka Institute of Information Technology, Sri Lanka) I.P.C. Dinesh Bandara (Sri Lanka Institute of Information Technology, Sri Lanka) A.I. Wijerathne (Sri Lanka Institute of Information Technology, Sri Lanka) Nagalingam Nagendrakumar (Sri Lanka Institute of Information Technology, Sri Lanka) W.D.N. Madhavika (Sri Lanka Institute of Information Technology, Sri Lanka)
Abstract: This paper presents an investigation on operational excellence (OpX) models of sustainable supply chains (SSCs) in Sri Lankan manufacturing organizations during Covid-19 pandemic. This investigation consists of multiple case studies of Sri Lankan manufacturing organizations in following industries: rubber and plastic products, wearing apparels, paper and paper products. Based on a pre-existing OpX model, six Critical Success Factors (CSFs) were identified in terms of SSCs. This research was conducted as an exploratory case study where data is collected through in-depth interviews, company websites/reports. By using a deductive approach, findings of CSFs effecting behaviour of OpX models are displayed. Thematic and Content analysis on the behavior of OpX models in SSCs are non-generalizable beyond this research. The findings display the organization in respect to wearing apparels has a more sustainable approach to better manage their OpX model and more strategic Upper Echelons to gain better strategic outcomes before/during Covid-19 pandemic. The profile of a manager was vital in interpreting OpX models in their organizations. The study outcomes can inform organizations to prime their OpX model for a crisis of Covid-19 magnitude. The effects may be generalized further to other industries. The study describes connectivity of Upper Echelons Theory to OpX models and contributes to literature through a demonstration of CSF behaviours in OpX models of SSCs during the Covid-19 crisis.
A Locational Analysis Model of the COVID-19 Vaccine Distribution Luluk Lusiantoro (Universitas Gadjah Mada, Yogyakarta, Indonesia) Setyo Mara (Universitas Gadjah Mada, Yogyakarta, Indonesia) Achmad Rifai (Universitas Gadjah Mada, Yogyakarta, Indonesia)
Abstract: Even and equitable distribution of the COVID-19 vaccine becomes one of key strategies to reduce the number of positive cases and virus transmissions all over the world. This paper aims to introduce and demonstrate a mathematical model based on a maximal covering location problem (MCLP) to optimise the coverage of the COVID-19 vaccine distribution. A mathematical model is proposed and demonstrated using an illustrative case study of healthcare facilities and location coordinates of villages in Yogyakarta, Indonesia. A numerical computer experiment is conducted to obtain optimal results of the locational analysis. The results show that the proposed model provides an efficient coverage of vaccination by minimising the distances travelled by the target population. It also reveals an interesting insight that prioritising vaccination for areas with high COVID-19 cases results in a less efficient coverage. The novel location-allocation model for COVID-19 vaccination facilities proposed in this paper particularly applies in a developing country. The model could be used as an alternative way to increase the vaccination coverage and priority whilst minimising the potential risks of the virus transmissions and transport costs.
A Conceptual Framework for Understanding the Impact of Internet of Things on Supply Chain Management Mohamed Ben-Daya (American University of Sharjah, Sharjah, UAE ) Elkafi Hassini (McMaster University, Hamilton, Canada) Zied Bahroun (American University of Sharjah, Sharjah, UAE)
Abstract: We propose a conceptual framework for understanding the impact of the Internet of Things (IoT) on Supply Chain Management (SCM). We adopt the resource-based view theory and argue that IoT resources empower internal supply chain capabilities to address external challenges and, in the process, enhance the supply chain competitiveness. We explain how IoT will likely impact supply chain capabilities and indirectly enhance SCM competitive advantages, which in turn help meet SCM challenges. We provide some managerial implications and show the need for new decision models dictated by the IoT environment. Finally, we outline the limitations of the proposed framework and suggest future research directions.
Sourcing from China: Approaches and Outcomes for Swedish Firms Leif-Magnus Jensen (Jonkoping University, Sweden) Per Hilletofth (University of Gavle, Sweden)
Abstract: The large and persistent trend of firms sourcing from China is in itself well-established with many success stories. However, managing the sourcing is a complex issue confounded both by cultural differences and the length of the supply chain. The purpose of this paper is to analyze the sourcing approaches of Swedish companies in China and the resultant outcomes. This study is based on a set of cases of Swedish manufacturing and retailer firms. The firms represent different industries and sizes of the company but all have substantial experience sourcing from China. The paper finds that the firms have developed good monitoring systems for their sourcing work and are generally satisfied with the outcomes, but also have persistent communication issues. Two archetypes of firms successfully sourcing from China emerge from the research. The study shows the importance of investing long-term in sourcing operations, especially with regard to developing market understanding and supplier relationships. This must however be matched by appropriate supplier monitoring systems. The research addresses a gap where sourcing configurations and their outcomes beyond general assessments of whether they are successful or not are little explored in the literature.
Service Supply Chain (SSC): A Systematic Literature Review (1999-2020) Asher Ramish (University of Management & Technology, Pakistan ) Abu Bakar Hamid (University Putra Malaysia, Selangor, Malaysia) Devika Nadarajah (University Putra Malaysia, Selangor, Malaysia)
Abstract: The purpose of this research is to do a systematic literature review on the field of “service supply chain” taking scholarly articles of top-rank journals from the year 1999 to 2020 making it a first-ever 20 years of comprehensive systematic literature review in the area of “service supply chain”. The research aims to encapsulate the major contributions and themes/concepts in the SSC area and future research directions that could be further researched to advance the field. The research also seeks to review major theories supporting or associated with the SSC domain. The research is based on the methodology of SLR by taking an initial sample of 894 papers using relevant and suitable search keywords, filtering out the unrelated ones using proper criteria, scanning, and going through a large number of articles and finally doing a comprehensive analysis on the selected ones taken from Scopus database. The research will greatly help the professionals as it will not only act as a guideline to understand various concepts, but more importantly, they can take advantage of future research directions to take the industry far ahead in strategizing the area of service supply chain management.
Location-inventory-routing Problem in a Context of City Logistics: A Case Study of Jakarta Nova Saragih (Telkom University, Bandung, Indonesia) Senator Nur Bahagia (Bandung Institute of Technology, Bandung, Indonesia) Suprayogi Suprayogi (Bandung Institute of Technology, Bandung, Indonesia) Ibnu Syabri (Bandung Institute of Technology, Bandung, Indonesia)
Abstract: City logistics idea is to develop an effective, efficient, and environmentally friendly logistics system. The development of city logistics is related to energy consumption, traffic congestion, economic and environmental problems. As one of the megacities in the world, Jakarta faces an inventory problem which is low availability of only 76%. Jakarta also faces the problem of transportation that is traffic congestion. The problems show that it is needed to develop city logistics in Jakarta. City logistics developed in this paper is related to decisions of location, inventory, and routing problems or LIRP (location-inventory-routing problem) in short. The LIRP takes into account multi-products, multi suppliers, and traffic congestion as an external parameters. This paper aims to develop a heuristic method to solve the LIRP. The heuristic method is based on simulated annealing (SA) algorithm. Existing literature shows that this paper's heuristic method to solve the LIRP has never been developed before. From applying the heuristic method in Jakarta, the coordination concept of city logistics reduces the vehicle number by 73%, and the consolidation concept of city logistics increases the availability from 76% to 95%.
Using Lean and Voice of Customers to Fulfil Needs in the Charity Sector – A Reflective Case Study Huay Ling Tay (Singapore University of Social Sciences, Singapore) Julian See (Singapore University of Social Sciences, Singapore)
Abstract: Lean principles are widely adopted in the manufacturing and services industries. However, few organisations consider Lean in the operations nor implement Lean initiatives in the charity sector. This paper is a narrative reflection of an action case research study conducted in a charity organisation in Singapore - the Food Bank Singapore (FBS), where Lean principles were adapted to optimise available resources to meet the needs of beneficiaries and donors. We found three key priorities that must be established by gathering and listening to the voice of customers (VOC), including the beneficiaries and donors in the charity context. The three priorities relate to the roles of the key stakeholders that support FBS’s mission of eradicating hunger and all forms of food insecurity in Singapore. The first priority is enabling donors to donate right to meet beneficiaries’ needs. The second priority is enabling FBS operations to serve the diverse beneficiaries’ needs better. The last priority is offering beneficiaries the “Dignity of Choice” of foods. This paper underlines the critical success factors for adopting Lean: - appropriate leadership, staff engagement, and stakeholder management. The reflective findings from this article will enable non-profit and charity professionals to better understand the application of Lean principles.
Inventory Modelling for technology generation products under uncertain trade credit terms and imprecise procurement costs Gaurav Nagpal (Birla Institute of Technology and Science Pilani, Rajasthan, India) Udayan Chanda (Birla Institute of Technology and Science Pilani, Rajasthan, India) Alok Kumar (FORE School of Management, New Delhi, India) Naga Jasti (Birla Institute of Technology and Science Pilani, Rajasthan, India)
Abstract: The inventory policies for any product under the trade credit mechanism are influenced by the procurement price per unit and the credit period offered by the seller to the buyer. This paper develops an inventory model for the technology generations under the imprecise trade credit period and the imprecise procurement cost. It considers the demand that is credit-linked and governed by innovation diffusion as well. The imprecise nature of the parameters is captured by the use of fuzzy numbers. The trapezoidal membership function has been used to fuzzify the profit function with the imprecise parameters, and then the centroid method is used to de-fuzzify the profit. The numerical illustrations have been performed, followed by the sensitivity analysis with the launch timing of the second generation product. A few important implications for the inventory practitioners and the possible extensions of this work have also been discussed.
Explore the Research Trends of Green Supply Chain in the Manufacturing Industry: A Bibliometric Analysis Erna Ramli (International Islamic University Malaysia, Malaysia) Dolhadi Zainudin (International Islamic University Malaysia, Malaysia ) Rafikul Islam (International Islamic University Malaysia, Malaysia )
Abstract: The green supply chain management practices for the manufacturing industry have been a recent phenomenon in the recent decade. Accordingly, it has received gigantic attention among academic researchers. A few bibliometric analyses have been published focusing on a general view of green supply chain management. This study provides a thorough bibliometric analysis on the relationship between green supply chain management and manufacturing not previously explored or grasped. Further, the bibliometric analysis was employed on academic journal articles published in two prominent online databases, the Scopus, and Web of Science, while prior studies have preferred only a single database. A machine learning tool, “R Studio”, and a visualization tool, “VOSViewer”, were used to analyze and visualize the analysis results. The results show a 22.63% annual growth in academic publications and a significant growth in recent periods. The findings from science mapping unveiled the popularity and generally focused on Chinese manufacturing firms. Besides, studies have focused on the barriers, drivers, and practices of green supply chain management and performance from economic and environmental perspectives. The findings deliver a vigorous roadmap for further studies in this constituent. Policymakers may improve legal procedures to encourage manufacturers to enhance green manufacturing to reduce carbon emissions.
The Influence of Economic and Non-Economic Satisfaction on Formalization, Specific Investments, and Dependence in B2B Relationships Carlos Ferro-Soto (University of Vigo, Campus Lagoas-Marcosende, Vigo, Spain) Carmen Padin (University of Vigo, Campus Lagoas-Marcosende, Vigo, Spain) Mercy Mpinganjira (University of Johannesburg, South Africa) Goran Svensson (Kristiania University College, Oslo, Norway) Nils Hogevold (Kristiania University College, Oslo, Norway)
Abstract: This investigation estimates a theoretical model that examines the influence of economic and non-economic satisfaction on formalization, specific investments, and dependence in B2B supply chain relationships from the sellers’ perspective. The study’s methodology is based on a deductive approach and data was collected using a structured questionnaire. The sample consisted of small and medium-sized companies across industries in Spain. The findings show that sales-specific investments rely on other business aspects than economic and non-economic satisfaction in B2B supply chain relationships, though a requirement is that the B2B supply chain relationships are marked by economic satisfaction. This research sheds light on antecedents of specific sales investments based on the perspectives of relationship marketing and transactional cost theories. In doing so, the study provides insights into the structural properties of economic and non-economic satisfaction, formalization, specific investments, and dependence in B2B supply chain relationships. Practical implications include the need for managers to ensure that their business partners are economically satisfied if they are to influence formalization in supply chain relationships. The importance of sales formalization is reflected in the positive relationship it has on specific investments in B2B sales relationships. The study’s value lies in the fact that it distinguishes between the role of two different types of satisfaction on formalization, specific investments, and dependence in B2B sales relationships. In so doing, the study helps determine the order of priority between economic and non-economic satisfaction to formalize and make specific investments in B2B sales relationships.
Unexplored Antecedents of Agent Opportunism in Buyer-Supplier Relationships: An Interviewed-Based Exploratory Study Thoa Pham (Yokohama National University, Yokohama, Japan) Kodo Yokozawa (Yokohama National University, Yokohama, Japan) Nguyen Anh (Yokohama National University, Yokohama, Japan)
Abstract: Opportunism is a common issue in buyer-supplier relationships. However, while many existing studies investigate interfirm-level opportunism, a few studies investigate individual-level opportunism, and currently, there has been a call for further research on how to manage individual-level opportunism. Thus, to contribute to the current research trend, this study examines factors influencing individual supplier agent opportunism. Data was collected by an interview-based exploratory study of 24 practitioners, from December 2018 and March 2020. The results from data coding and analysis identify two groups of important factors in managing supplier agent opportunism: 1) organisational factors group includes buyer-supplier companies’ long-term relationships, buyer companies’ dependence, co-worker support for buyer agent, job demands for supplier agent; 2) individual factors group includes close relationships between buyer agent and supplier agent, buyer agents’ purchasing knowledge, communication skills, and honesty in negotiation.
Modern Slavery Statements and Service Industry Supply Chains: A Commentary on the Leading Hotel and Retail Companies in the UK Peter Jones (University of Gloucestershire, UK) Daphne Comfort (University of Gloucestershire, UK)
Abstract: There are concerns that many UK businesses are exposed to slavery in their international supply chains, and here some of the UK’s service industries seem particularly exposed, because of their global sourcing of goods, labour, and services. However, modern slavery in the service industries’ supply chains, has attracted little or no attention in the academic literature, and as such, this represents a gap in the current literature. This exploratory paper looks to make a small contribution to addressing that gap by illustrating, and offering a commentary on, one of the ways in which the leading hotel and retail companies in the UK have publicly addressed modern slavery in their supply chains, by reviewing their modern slavery statements. The commentary includes an outline of modern slavery and modern slavery statements, a description of the frame of reference and method of enquiry, a short literature review, an exploratory review of the modern slavery statements developed by the UK’s leading hotel companies and retailers, discussions of some of the academic and corporate implications raised by the review, and some suggestions for future research agendas.
Assessing the Impact of Green Supply Chain Management, Competitive Advantage and Firm Performance in PROPER Companies in Indonesia Maya Novitasari (Airlangga University, Surabaya, Indonesia) Dian Agustia (Airlangga University, Surabaya, Indonesia)
Abstract: The purpose of this study is to examine the effect of green supply chain management on firm performance with competitive advantage as a mediator. This study used purposive sampling to obtain a population comprising 516 companies which were part of a program called PROPER (which stands for Program Penilaian Peringkat Kinerja Perusahaan or company performance rating program) between 2010 and 2018. The data were obtained from the Indonesia Stock Exchange and OSIRIS software and were tested using STATA. The results obtained in this study demonstrate that green supply chain management has a positive effect on competitive advantage, competitive advantage has a positive effect on firm performance, and green supply chain management has no effect on firm performance. Competitive advantage is able to mediate the relationship between green supply chain management and firm performance. The results of this study provide insight into the importance of implementing green supply chain management in order to be able to create a competitive advantage and improve firm performance in the midst of intense competition.
Effect of Absorptive Capacity on Strategic Flexibility and Supply Chain Agility: Implications for Performance in Fast-Moving Consumer Goods Younis Jabarzadeh (Liverpool John Moores University, United Kingdom) Mahdiyar Khangah (University of Tabriz, Iran) Murat Cemberci (Y?ld?z Technical University, Turkey) Roberto Cerchione (University of Naples Parthenope, Italy) Naser Sanoubar (University of Tabriz, Iran)
Abstract: This paper develops a model to examine the relationships between absorptive capacity (ACAP), strategic flexibility (SF), supply chain agility (SCA), and firm performance (FP) based on the resource-based view (RBV) and the dynamic capabilities view (DCV). Using structured questionnaire, a sample of 186 randomly selected firms in fast-moving consumer goods (FMCG) industry from both Turkey and Iran as two developing countries is used to test the hypotheses. Variance-based structural equation modeling (SEM) was the primary data analysis method. The results show that absorptive capacity has direct and indirect effects on performance with the mediator variables of supply chain agility and strategic flexibility. Moreover, increased absorptive capacity leads to increased supply chain agility that in turn improves performance. The effect of absorptive capacity on strategic flexibility, and also, the overall proposed conceptual model, especially in the FMCG industry are the original features of the current study which was conducted in two developing countries. Efforts to promote absorptive capacity can improve both strategic flexibility and supply chain agility which are effective factors for enhancing performance in the fast-changing environment of FMCG industry.
Exploring the Impact of COVID-19 on Aircraft Boarding Strategies Using Discrete Event Simulation Sadeem Qureshi (Toronto Metropolitan University, Toronto, Canada) Hassaan Qureshi (Fanshawe College, London, Canada) ()
Abstract: Aviation is one of the most severely impacted industries by COVID-19. The passenger boarding-process is not only a bottleneck but is also one of the riskiest processes for COVID-19 transmission. There is a need for a decision-support tool that can proactively test the impact of COVID-19 policies on the passenger boarding-process. We achieve this by developing an adaptable modeling approach to Discrete Event Simulation (DES) that simulates the process of boarding under different COVID-19 policies and boarding-strategies. DES model was created using time and motion studies, flightlogs and manuals. Programing-logic was created using n=29 subject-matter experts. As a demonstrator-case, we tested seven of the most common boarding-strategies under different COVID-19 stages: pre-COVID, COVID-19 stage 1 and 2. Preliminary-results show the COVID-19 transmission risk may be decreased with a trade-off: passenger-satisfaction may decrease due to an increase in boarding-time and waiting-time. Steffen’s method was most-effective in minimizing COVID-19 risk but is the most difficult to implement. Reverse pyramid and Window Middle Aisle, while slightly less effective than Steffen’s method, but overall, more-effective and easier to implement with minimal COVID-19 risk. For COVID-19 stage 1 and 2, boarding time increased up to 33% and 64%, respectively, in-comparison to baseline pre-pandemic conditions. Further, up to 1.5 and 6.6 seat and aisle interferences along with a jetway-seat time of up to 13 minutes were observed. The developed modeling approach serves as a direct response to ICAO’s (International Civil Aviation Organization) need for a tool to proactively test and develop policies that minimize COVID-19 risk.
Employee Retention and the Moderating Role of Psychological Ownership in Retail Diep Nguyen (Tomas Bata University in Zlin, Mostni, Zlin, Czech Republic ) Lubor Homolka (Tomas Bata University in Zlin, Mostni, Zlin, Czech Republic ) Sinh Hoang (Ho Chi Minh City University of Foreign Languages - Information Technology, Ho Chi Minh, Vietnam) Hanh Nguyen (Asian Institute of Technology, Klong Luang, Pathum Thani, Thailand)
Abstract: Retailing is one of the critical stages in supply chain operations, in which human resources and employee retention play a decisive role as in any organization. Based on motivation theories for employee retention (ER), this study examines the integrated indirect effects of organizational and personal motivators on ER through employee engagement (EE) in the retail industry. Furthermore, it assesses how psychological ownership (PO) directly affects ER and moderates the effect of ER on EE of full-time employees in the Vietnamese context as empirical evidence. The combination of a qualitative methodology (in-depth interviews with retail experts) and a quantitative methodology (a survey conducted with 571 full-time retail employees) is deployed. PLS-SEM with SmartPLS is utilized for data analysis and hypothesis testing. The study findings demonstrate that the integrated roles of organizational and personal motivators significantly affect ER through EE in retail companies. Interestingly, the study discovered that PO has a significant positive influence on ER, but a higher PO can reduce the relationship between EE and ER. Practically, the study highlights the implication that organizational motivators may not be sufficient to retain employees, since the intention of employees to remain or quit also depends on personal factors. It also suggests that in the working environment with a solid relationship between EE and ER, PO can lead to negative employee behaviour, such as bias, misconduct, and disengagement, which may harm the company.
Key Food Supply Chain Challenges: A Review of the Literature and Research Gaps Kavitha Gurrala (American University of Sharjah, United Arab Emirates) Moncer Hariga (American University of Sharjah, United Arab Emirates)
Abstract: The large volume and diversity of research sources related to the challenges affecting the efficient operations of FSCs demand a systematic literature review to explore the tools employed to address such challenges and to identify research gaps for future research. Our review of the FSC literature covered 141 articles published over the period 2010-2021. It was found that advanced technologies and optimization models were the most predominant tools for addressing FSC challenges with 40% of the articles embracing IOT-based technological frameworks and 56% of the reviewed papers deploying mathematical and computational optimization methods. The study also revealed that 73% of the reviewed articles primarily focused on addressing challenges related to sustainability, safety and quality, and traceability and transparency. In addition, about 92% of the research contributions originated from European, North American, and Asian geographic countries. Finally, 39% and about 46% of the articles were exploratory by nature and focused on addressing challenges within generic food chains, respectively. Based on a content analysis of the reviewed papers, potential research directions were suggested to fill the identified gaps. The dearth of research focusing on addressing food loss and waste, coordination, globalization, resilience, and robustness, and food-security challenges is one of the identified research gaps. Additionally, the deficiency of empirical studies validating the models/frameworks developed and the meagreness of research focus on unique types of food chains can be addressed as potential research venues.
PCA-WA Based Approach for Concurrent Control Chart Pattern Recognition Adil Akaaboune (University of Al Akhawayn, Ifrane, Marocco) Ammar Elhassan (Princess Sumaya University for Technology, Jordan) Ghazanfar Latif (Universite du Quebec a Chicoutimi, Canada) Jaafar Alghazo (Virginia Military Institute, Lexington, VA, USA)
Abstract: Accurate and speedy automatic recognition of Statistical Process Control Chart Patterns (SPCC) is a vital task for supervising manufacturing processes. This is done for better control to produce high-quality products. The motivation of this work is to increase the recognition accuracy of concurrent patterns. In this paper, a novel approach is proposed, using neural networks (NN) with Wavelet Analysis (WA) and Principal Component Analysis (PCA) to address the (CCP) recognition problem in concurrent patterns. Eight types of concurrent patterns based on a combination of normal patterns and unnatural patterns are addressed namely; stratification, systematic, increasing trend, decreasing trend, upshift, downshift, and cyclic. Thirteen statistical and shape features are proposed as inputs to the model. The main contribution of this work is the enhancement of the performance of NN through the augmentation of the signal (control chart data) using WA and proposing better extracted statistical features through the use of PCA. Our work shows that improving the original signal and using the right features improves the accuracy of the CCP recognition significantly. The proposed approach has an overall accuracy of 96.3%. The method was compared with four other methods from the previous literature, and it outperformed these methods.
Pharmaceutical Supply Chain Sustainability under the Torchlight of Social Media Mohammad Seddigh (Shahid Beheshti University, Tajrish, Iran) Sina Shokoohyar (Seton Hall University, South Orange, New Jersey, United States) Seyed Ghanadpour (Shahid Beheshti University, Tajrish, Iran) Hossein Moradi (Elm-o-Sanat University, Tehran, Iran)
Abstract: This research aims to explore the challenges and opportunities associated with the deployment of social media to improve supply chain sustainability. This exploratory research can lead to deeper insights regarding the opportunities as well as problems experienced due to the use of social media in supply chains. The study selected a three-phase Delphi study approach with both qualitative and quantitative analyses. This study recorded feedback from 34 experts with sufficient knowledge of information technology and sustainable pharmaceutical supply chain. 48 independent constructs separately in enterprise and public media were extracted. All the constructs were ranked, ultimately leading to 10 major constructs which played a significantly crucial role in the sustainability of supply chains. While social media challenges and opportunities in supply chain sustainability are discussed in this article, further studies on social and environmental sustainability and providing operational solutions to these challenges are still needed. No paper has directly extracted the impacts of social media specifically on enterprise and public media individually. While most papers mainly focused on economic and environmental sustainability, this paper pays close attention to sustainability and social media.
Supply Chain Management and the United Nations Sustainable Development Goals Ashutosh Srivastava (IILM University, Gurugram, India) Vidhisha Vyas (IILM University, Gurugram, India) Amulya Gurtu (University of Wisconsin-Green Bay, USA)
Abstract: This paper explored the relationships between the United Nations Sustainable Development Goals (UNSDG) and social sustainability in supply chain management (SCM). Sustainable development is a philosophy that seeks to achieve human development goals while protecting the ability of natural systems to provide natural resources and ecosystems for all economies and societies. The desired state of society is where living conditions and resources meet human needs while preserving the integrity and stability of the natural systems. Most of the work on sustainability in SCM is on economic and environmental sustainability. Only eight papers were found that reflected social sustainability. Nevertheless, social sustainability significantly impacts supply chain management, such as employee engagement, which leads to a decrease in waste, and a shorter lead time from manufacturing locations to markets. The study is based on an analysis of bibliometric data published in the Scopus database between 1991 and 2020. This study will help researchers get new perspectives on sustainable supply chains. Societal well-being is the goal of the UN SDGs. Organizations and countries can address them by recognizing the connections between UNSDGs and SCM. This is the first study to explore the literature available on UNSDG and its relationship with supply chain management.
The Complexities of Honda’s Supply Chain & Associated Risks: Understanding Suppliers & Customers, Industry Differentiators, and Market Locations Miranda Armie (Butler University, Indianapolis, IN, USA) Kate Goodyear (Butler University, Indianapolis, IN, USA) Mackenzie Summers (Butler University, Indianapolis, IN, USA) Janaina Siegler (Butler University, Indianapolis, IN, USA)
Abstract: This paper investigates Honda Motor Co of Japan and over 50+ supply chain network relationships between suppliers and customers. These companies represent the industry through trading, specialty retail, road & rail, professional services, machinery, food products, electronic equipment, diversified financial, automobiles, and auto components. Using data from Bloomberg terminals, Mergent Online, Hoover Academics, and IBIS World, our goal was to understand Honda’s supply chain risks and the capabilities needed to overcome them, in conjunction with their suppliers, customers' locations, and industry differentiators. We aimed to understand how they performed through the many disruptions of the Covid-19 pandemic. Results showed that the main risks to Honda Motor Co are in three categories: Organizational (credit, agency), Industry (product market, input market), and Environmental (macroeconomic). The core capabilities that Honda Motor Co used to overcome these risks are Flexibility (financial strength), Velocity (efficiency, anticipation, security), and Collaboration (market position). As a market leader, Honda has demonstrated resilience and readiness to recover from these disruptions.
Organic Compost Supply Chain Analysis: A TCE Perspective Brian Chikwava (Victoria University Business School, Melbourne, Australia ) Himanshu Shee (Victoria University Business School, Melbourne, Australia ) Simon Millcock (Legatus Group, South Australia ) Paul Chapman (Legatus Group, South Australia )
Abstract: With the growing attention to Circular Economy (CE), there is a need to develop a waste management strategy to coordinate waste and recycling infrastructure across regional South Australia. The transition into CE needs a clear understanding of appropriate input and output opportunities while aligning the whole supply chain for value creation from waste. The development of the organic recovery industry in South Australia is severely constrained by the lack of suitable processing plants, which are currently operating at their limit. Amidst the challenges of CE adoption, a supply chain for organic compost needs a thorough analysis for capacity expansion. Using transaction cost economics (TCE), this exploratory study investigated the contractual difficulties and logistical challenges of the proposed organic compost supply chain connecting regional organic waste sources with processors and organic compost users. Interviews of organic waste suppliers, processors, and users revealed that while processing appeared to be viable for organic compost, the cost of organising its supply chain might be prohibitively high. Building more processing plants might face supply chain and logistical challenges without support from multi-stakeholders. Practical implications of CE are drawn for the benefits of all partners.
Forward and Reverse Logistics Network Design with Sustainability for New and Refurbished Products in E-commerce Yash Daultani (Indian Institute of Management Lucknow, India) Naoufel Cheikhrouhou (University of Applied Sciences Western Switzerland, Switzerland) Saurabh Pratap (Indian Institute of Technology (BHU) Varanasi, India) Dhirendra Prajapati (Indian Institute of Information Technology Jabalpur, India)
Abstract: There has been an enormous growth in the availability of refurbished goods in the online marketplace. These days, consumers can buy either the new products or refurbished products based on their budget and individual preferences. As a result, e-commerce firms need to redesign their existing forward and reverse logistics networks while focusing on supply chain sustainability. This paper proposes a novel forward and reverses logistics network design (FRLND) along with a consumer pickup and demand facility within the promised time window while addressing the complexities related to e-commerce platforms, suppliers, manufacturers, third-party logistics providers, retailers, and customer tiers. A mixed-integer non-linear programming (MINLP) model is developed to minimize the overall anticipated cost that consists of costs related to procurement, production, inventory holding, shortages, material for return units, recycling, repairing, disposal, and transportation cost, across the entire supply chain network. The problem under consideration is NP-hard in nature. The special challenges of the problem in consideration are to consider all pickup and distribution nodes of retailers/customers within the range of promising time horizons. For solution purposes, the Block-based Genetic Algorithm, Fruit-fly Algorithm, and CPLEX are used. Computational experiments show the comparative charts and trends that are put on to an extensive range of practical scenarios. The experiments reveal that the Genetic Algorithm performs well than the Fruit Fly algorithm in terms of rate of convergence and solution quality in all cases of interest. CPLEX solution provides the minimum optimal value.
Can Supply Chain Collaboration Improve Firm Performance? Experiences on Leather and Footwear Companies in Vietnam Nguyen Thi Duc Nguyen (Ho Chi Minh City University of Technology (HCMUT), Ho Chi Minh City, Vietnam) Nguyen Hoang Phat (Ho Chi Minh City University of Technology (HCMUT), Ho Chi Minh City, Vietnam) Nguyen Thi Hoang Mai (Ho Chi Minh City University of Technology (HCMUT), Ho Chi Minh City, Vietnam) Huynh Thi Phuong Lan (Ho Chi Minh City University of Technology (HCMUT), Ho Chi Minh City, Vietnam)
Abstract: This study investigates key components of supply chain collaboration that contribute to firm performance in vertical collaboration with supply chain partners based on supply chain management experiences on the leather and footwear companies in Vietnam as well as how they work in these companies from an extended resource-based perspective. The mix-research methods employed, include prior studies’ review, in-depth interviews with seven experts in the leather and footwear industry, and case studies at three typical companies in this sector. The results indicate that seven critical supply chain collaboration components, such as information sharing, goal congruence, decision synchronization, joint knowledge creation, incentive alignment, resource sharing, and collaborative communication, have a significant impact on firm performance in the context of leather and footwear companies in Vietnam. Accordingly, companies in the leather and footwear industry, as well as those struggling to maximize firm performance can use it as a reference and put it into action.
A Comparative Analysis of South Korean and U.S. Firms: Ambidextrous Innovation, Supply Chain Resilience, and Market Performance Minhyo Kang (Busan University of Foreign Studies, Busan, South Korea) Charles Robb (Dongguk University WISE Campus, Gyeongju, South Korea) Aaron Stephens (Hartwick College, Oneonta New York, United States)
Abstract: This research explores the similarities and differences between Korean and U.S. firms developing both supply chain resilience and market performance through organizational culture and ambidextrous innovation. Firm-level data were collected from firms in South Korea and America. PLS-SEM software was used for the analysis with a multigroup analysis employed to test differences. Organizational culture is a key component for building supply chain resilience and market performance through ambidextrous innovation; however, exploration innovation was not used the same by Korean and U.S. firms. Korean firms were better able to exploit exploration innovation to establish both supply chain resilience and market performance. Cross-cultural comparative studies of supply chain management amid COVID-19 supply chain disruptions remain rare; thus, this study fills a key gap in the supply chain management and marketing literature in the U.S. and Korea. This paper further highlights ambidextrous innovation in the context of supply chain resilience and market performance.
Sustainable Packaging Practices Across Various Sectors: Some Innovative Initiatives Under the Spotlight Ram Roy (Eastern Institute of Technology, Hawke's Bay, New Zealand)
Abstract: Sustainable operations and supply chains are the desperate needs of the global business environment. Governments worldwide are enacting laws to reduce plastic products and encourage biodegradable packaging. A range of global practices is visible in various business operations, including designing, manufacturing, storage, and distribution. This paper has focused on some of the innovative and sustainable packaging practices adopted by companies in New Zealand and other parts of the world to improve operational efficiency and environmental sustainability towards better profits and corporate social responsibility. The paper is based on various articles from trade and academic journals highlighting the importance of sustainability in the packaging, operations, and supply chain domain. The literature review indicates that while there is an appetite for changes in the packaging materials toward sustainability, users or shoppers are still not fully prepared to pay for such changes. There are many examples of sustainable packaging practices undertaken by companies, researchers, and innovators worldwide. However, it may not be pragmatic to do away with all the plastic packaging from every product because consumers still want to enjoy the packaging's convenience. So, while people might be shocked to see the frequent imagery of wildlife crippled or killed by discarded packaging not every consumer is putting the planet's health ahead of their fresh choice of produce. The challenge ultimately lies with the food and other industries to innovate their packaging to ensure they are biodegradable, recyclable, sustainable, and affordable. Fortunately, the changing consumers' awareness of sustainable packaging and perceived readiness to accept some of the costs provides significant optimism.
COVID-19, Supply Chain, and Profitability: A Survey Based on an Emerging Economy Samia Shetu (University of Dhaka, Dhaka, Bangladesh) Md. Rezaul Karim (University of Dhaka, Dhaka, Bangladesh )
Abstract: COVID-19 has stunned the whole economy and has been unveiled as a colossal threat to global supply chain management. This paper has tried to assess the implications of COVID-19 on different areas of the supply chain and the profitability of different industries in Bangladesh. The study is based on a questionnaire survey of three major industries of Bangladesh: textile, pharmaceuticals, and banking sectors conducted from December 2021 to February 2022. Descriptive statistics and t-tests for mean differences were used to analyze the data and they are displayed across tables and graphs. It is found that supply chain aspects like raw material, labor, manufacturing facility, import/export, product/service, revenue, and profit are significantly impinged by the pandemic. Furthermore, the supply chain of the manufacturing sector is more affected than that of the service sector, and statistically, significant differences are evidenced between manufacturing industries. The findings and recommendations of this study will have policy implications for regulators, companies, suppliers, investors, and customers. This is a pioneer study to investigate the implications of the pandemic on the supply chain fields.
Comparison of Cross-Border Reverse Logistics of a Fast Fashion Brand in China Siti Wahab (Universiti Teknologi MARA, Bandar Puncak Alam, Selangor, Malaysia ) Albert Tan (Asian Institute of Management, Makati, Philippines) Olivier Roche (Asian Institute of Management, Makati, Philippines)
Abstract: With the advent of "Industry 4.0" and the associated disruption caused by such rapid digital transformation, the logistics industry was able to develop cross-border delivery and increase demand for any given product. However, the risks associated with Cross-Border Reverse Logistics (CBRL) remain largely unexplored, and there is a paucity of research in this area. Hence, this study's objective is to investigate the e-commerce delivery system and CBRL model of a major fashion brand. The study is based on a case study approach comparing the CBRL processes of the Zara official site with one of their main channel partners, Alibaba. Data was collected through archival records, a secondary data bank and interviews with Zara representatives for a deeper analysis. The analysis reveals that both Zara and Alibaba's official sites currently have issues with their CBRL operations. The development of cross-border logistics represents a great opportunity to improve current Zara's and Alibaba's e-commerce platforms business model. In a very competitive market, a lack of a cross-border logistics system could represent a potential loss. Compared to local reverse logistics, cross-border remains at a relatively primitive stage. However, local reverse logistics can provide insights to Zara and Alibaba towards developing and improving CBRL. The case findings lay the foundation for a better understanding of CBRL e-commerce's challenges and support the need to optimize these systems to improve customer service in China.
Improving Blood Bank Performance in A Decentralised Blood Supply Chain Using Discrete Event Simulation Agus Mansur (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia) Iwan Vanany (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia) Niniet Indah Arvitrida (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia)
Abstract: Indonesian Red Cross (IRC) is assigned to operate the blood bank in Indonesia’s blood supply chain system. Due to the system decentralization, the regional blood banks are responsible for providing blood supply in their municipal area. Blood banks need to meet certain performance indicators to minimize shortages and outdated blood bags and generate sufficient income to cover operational costs and organizational development. This research aims to build a blood-bank management model by focusing on a multi-product arrangement and considering the unpredictability of supply and demand. Discrete event simulation was used to model the actual system and evaluate policy options to enhance blood bank performance. The simulation experimentation examines four control variables: supply arrangements based on Fixed Location Service (FLS), Mobile Unit Service (MUS), inventory target, and the setting of output product percentages. This study successfully provided solutions that can enhance the quality and efficiency of blood bank services. In this study, each scenario reveals the trade-off between the extent of the shortage and the level of obsolescence. The regulatory environment where donors are recruited greatly impacts shortages, obsolescence, and net income. Blood bank management must create an optimum targeted service level and revenue expectation to make strategic decisions.
Understanding the Impact of Digitalization on Buyer Supplier Relationship: A Qualitative Approach Partha Pathak (SP Jain School of Global Management, Dubai-Mumbai-Singapore-Sydney)
Abstract: This study analyses the impact of digitalization on the Buyer Supplier relationship (BSR) in the context of Industry 4.0. An empirical qualitative research methodology was employed, with semi-structured interviews conducted with 23 procurement specialists from service sector organizations in India to obtain empirical data. A qualitative content analysis was then conducted to arrive at common patterns and ideas. The study found that procurement specialists perceive that digitalization has an overall positive impact on buyer supplier relationship. However, it is important to exercise diligence during the implementation of any digital tools to restrict dissatisfaction, and human touch is essential in certain areas like negotiation and conflict management. Additionally, data analysis can provide strategic advantages, but the quality of input data must be considered. The study highlights the positive and negative impacts of digitalization on BSR and provides implications for research and corporate practice. It is recommended that future studies should qualify the results by analyzing the BSR in relation to supplier type, as well as by considering other digital technologies such as Machine learning and Artificial intelligence.
The Role of Logistics 4.0 in Agribusiness Sustainability and Competitiveness, A Bibliometric and Systematic Literature Review Betty Soledispa-Canarte (Universidad Estatal del Sur de Manabi, Ecuador) Maritza Pibaque-Pionce (Universidad Estatal del Sur de Manabi, Ecuador) Narda Merchan-Ponce (Universidad Estatal del Sur de Manabi, Ecuador) Diana Mex Alvarez (Universidad Autonoma de Campeche, Mexico) Jennifer Tovar-Quintero (Universidad Cooperativa de Colombia, Neiva, Colombia ) David Escobar-Molina (Universidad Nacional Abierta y a Distancia -UNAD -, Neiva, Colombia ) Juan Cedeno-Ramirez (Universidad Surcolombiana - USCO -, Neiva, Colombia ) Cristian Rincon-Guio (Universidad Nacional de Colombia, Manizales, Colombia)
Abstract: Firms face several challenges related to sustainability in global logistics operations. In response to this new dynamic, logistics has evolved into what is now known as smart logistics or Logistics 4.0, which has been in constant change for the past 10 years. This evolution has occurred within the framework of Industry 4.0 and has been called to be the pillar that guarantees sustainability in firms through the development and implementation of innovative and disruptive technological solutions. A systematic analysis of the literature related to the role of logistics 4.0 in business sustainability in the agro-industrial sector was carried out. A bibliometric and content analysis was performed on the 56 publications identified from 2015 to 2021 in the Scopus, ScienceDirect and Springer databases. The bibliometric research method used was the joint analysis of keywords using VOSviewer, followed by a content analysis of the selected articles. The bibliometric analysis made it possible to identify that publication in this field is low and growing. Logistics 4.0 contributes considerably to the sustainability of firms in general, and even more to the agro-industrial sector through digital technologies and new business models, allowing the creation of competitive advantages in agro-industrial firms.
Innovation and Improvement of Curricula for OM and IT Majors in Colleges of Business through Industry Engagement Pinyarat Sirisomboonsuk (The University of Texas Permian Basin, Texas, USA) James Burns (Texas Tech University, Texas, USA)
Abstract: We propose innovations and improvements of curricula for majors in Operations Management (OM) and Information Technology (IT). New methodologies for optimizing curricula for OM and IT consider the latest needs of employee markets served by these two majors. A holistic, learning-centric approach seeks to increase the capacity of OM and IT students to achieve the future they want. Overlooked subject areas for these curricula often include soft skills, change management, systems thinking, and testing, among others. We use the paradigm of the supply chain to suggest how industry engagement can influence OM and IT curricula. Such content could then be expanded over more than just four collegiate years by including OM and IT course content in high school curricula. We suggest a methodology for employer-driven valuation/grading of every potential and actual course in the OM and IT curricula. We take a holistic, systemic view that will help stimulate and pilot new ideas for OM and IT curricula.
Impact of Information Sharing on Trust and Commitment Level in the Supply Chain: Focus on Korea's Three New Core Industries Changjoon Lee (Sogang University, South Korea) Soohyo Kim (Sogang University, South Korea)
Abstract: Today’s business environment can be considered a competition of supply chains, not individual enterprise competition. Accordingly, companies have made great efforts to build efficient supply chains to improve competitiveness and secure competitive advantage. Based on this background, this study examined the impact of information sharing, which is an important factor in supply chain management, on two types of trust (cognitive trust and emotional trust) and commitment level. Specifically, this study suggested information sharing as an antecedent factor of cognitive trust and emotional trust and examined the relationship between the two types of trust and commitment level. Data were collected through a survey targeting workers in supply chain-related departments in three major new industries in Korea (automobiles, bio-health, and semiconductors); a total of 214 responses were used for the empirical analysis. By employing a structural equation model for the research model, information sharing was found to positively affect cognitive trust and emotional trust. Furthermore, the two types of trust had a positive impact on the commitment level of companies in the supply chain. Therefore, it is important to build mutual trust to create a sustainable relationship with another party in the supply chain and, for this, it is necessary to understand the importance of information sharing.
Hospital Supply Chain Management: Cross-Disciplinarity Opportunities in the Post-Pandemic Era and Research Agenda Erika Tatiana Ruíz Orjuela (Universidad Nacional de Colombia, Colombia) Oscar Rincon-Guevara (Universidad Nacional de Colombia, Colombia) Wilson Adarme Jaimes (Universidad Nacional de Colombia, Colombia)
Abstract: The COVID-19 pandemic has impacted various aspects of society, and research has been published across different sectors beyond healthcare. This article presents the results of a literature review in Hospital Supply Chain management (HSCM) to identify current and future research areas. The literature review identified four main research themes associated with the scope of HSCM, the flow type, and the approaches employed. The results of this study suggest that COVID-19 is a catalyst for short- and long-term changes that require the attention of researchers, strategies to incorporate 4.0 technologies, and integration of different stakeholders to improve the resilience and sustainability of the Supply Chain (SC) in future pandemic scenarios. This paper provides relevant information to the implementation for future research regarding the management of the HSCM for the post-pandemic period.
Strategies to Mitigate Supply Chain Disruptions During COVID-19: The Lived Experience of SC Professionals Loo Saw Khuan (Sunway College, Selangor 47500, Malaysia) Himanshu Shee (Victoria University Business School, Melbourne, Australia) Tan Suan See (Eagle Horizon, Selangor 47500, Malaysia)
Abstract: Drawing on resource dependence theory (RDT), the objective of this study is to empirically explore supply chain disruptions of COVID-19, and suggest strategies to mitigate them. In-depth interviews were conducted with supply chain professionals working in the Electrical & Electronic (E&E) industry in Malaysia. Interviews were analyzed by following seven steps of the van Kaam method. Findings suggest six strategies: global command centre with daily planning cycle to mitigate component shortages; collaboration with suppliers to mitigate glove shortages; assist local suppliers in obtaining permits to mitigate disrupted manufacturing; dual sourcing to mitigate single-sourcing disruptions; collaboration with freight carriers and government agencies to mitigate disrupted freight; and ERP-integrated EDI to mitigate disrupted data sharing. The findings offer strategies for managers to de-risk their supply chains in post-COVID-19 era, and it could be applied further in similar future supply chain disruptions.
Towards Forest Supply Chain Risks Michael Wang (Kingston University London, UK) Robert Radics (Lincoln University, Lincoln, New Zealand) Samsul Islam (Northern Alberta Institute of Technology (NAIT), Edmonton, Alberta, Canada) Ki-Soon Hwang (Kingston University London, UK)
Abstract: Forest supply chain has drawn increasing attention worldwide. This paper develops a supply chain risk (SCR) framework in the forest industry. Forest supply chain risk has become an obstacle to gaining competitive advantages and developing sustainable forestry. However, very few studies attempt to investigate SCR in an integrated forest supply chain. It is essential to understand and manage these risks, which may impede the industry’s performance improvement. An extensive literature review, and Delphi study are performed to develop and identify the major forest SCRs. The result has shown that the five types of forest SCRs are recognized. In this study, we extend SCR into the forest sector and contribute to the forest supply chain management literature. Further research is needed to address specific problems associated with types of SCRs and develop appropriate forest SCR mitigation strategies in contexts.
House of Risk (HOR) Approach to Manage Risk involving Multi-stakeholders: The Case of Automotive Industry Cluster of Multifunctional Rural Mechanized Tool (MRMT) Sri Gunani Partiwi (Institut Teknologi Sepuluh Nopember (ITS), Surabaya, Indonesia) Vina Nur Islami (Institut Teknologi Sepuluh Nopember (ITS), Surabaya, Indonesia) Hudiyo Firmanto (University of Surabaya, Surabaya, Indonesia)
Abstract: The agricultural sector is one of the potential sectors for the economic development of the Indonesian nation and the improvement of rural community welfare. Therefore, it needs to be well-managed, including through the provision of adequate supporting facilities such as transportation equipment that is suitable for the characteristics of the agricultural sector. PT KMWI is one of the companies that produces specialized transportation equipment designed to support agricultural activities in rural areas, known as the Multifunctional Rural Mechanized Tool (MRMT). The production involves several businesses and industries that are established within an MRMT automotive industry cluster. Effective cooperation and collaboration among the stakeholders in the industry cluster significantly determine the efficiency and effectiveness of the products produced. Therefore, it needs to be well-managed, and risk management needs to be implemented to maintain its functional stability using the House of Risk (HOR) method. From the application of HOR 1, the multistakeholder approach yielded the Combined Aggregate Risk Potential (CARP), and 6 priority risk potentials were selected based on a Pareto chart, which resulted in the determination of 13 mitigation actions. The risk potential with the highest CARP value among the priority risks is risk factor (A4) inaccurate demand forecasting. Then, the 13 mitigation actions were assessed using HOR 2, the multistakeholder approach, to obtain the Effectiveness to Difficulty (ETD) value of each mitigation action for every stakeholder.
Intelligent Teledermatology System: A Case of Implementing Artificial Intelligence-Based Services in Healthcare Supply Chain I Ketut Eddy Purnama (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia) Arta Kusuma Hernanda (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia) Reza Fuad Rachmadi (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia) Supeno Mardi Susiki Nugroho (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia) Mauridhi Hery Purnomo (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia) Anak Agung Putri Ratna (Universitas Indonesia, Depok, Indonesia) Ingrid Nurtanio (Universitas Hasanuddin, Makassar, Indonesia) Afif Nurul Hidayati (Universitas Airlangga, Surabaya, Indonesia) Ahmad Rusdiansyah (Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia)
Abstract: Teledermatology is part of telemedicine which provides remote services of skin disease diagnosis for patients by utilizing information and communication technology. This system has been used for decades and is increasingly used especially during the COVID-19 pandemic. However, none of the existing studies have reported the existence of an integrated web-based and mobile-based teledermatology application that integrates Artificial Intelligence. Hence, in this study, we propose the use of the so-called Intelligent Teledermatology System (ITDS), and how this system can support the healthcare supply chain. The development of ITDS complies with the Case-Based Reasoning approach. This system consists of three main functions: management information system, point of services, and intelligent systems. The ITDS provides complete features so that the supply chain of remote services for skin disease diagnosis can be delivered to patients. Furthermore, this system provides a classification function as part of a decision support system for dermatologists in making diagnoses. In terms of the supply chain, we have described that the supply chain concept is also applicable to services like teledermatology. Hence, the Intelligent Teledermatology System can be used to support the healthcare supply chain in this case the skin disease diagnosis services.
Stakeholder Engagement for Green Process Innovation: Exploring the Link and Boundary Conditions Listowel Owusu Appiah (Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development, Kumasi, Ghana)
Abstract: Despite the growing research attention towards the role of stakeholders in developing green innovations, there is limited understanding of the mechanism and specific firm-level conditions under which stakeholder engagement enhances green innovation. Drawing on the Stakeholder theory and the Natural Resource Based View, this paper theorizes that absorptive capacity and risk-taking behaviour are underlying mechanisms and boundary conditions respectively in the stakeholder engagement-green process innovation relationship. The model is tested with survey data obtained from manufacturing firms in Ghana. The results show that absorptive capacity mediates the relationship between stakeholder engagement and green process innovation. Also, the relationship between stakeholder engagement and green process innovation is conditioned by risk-taking behaviour. The implication of these findings for theory and practice is discussed in the text.
Healthcare Supply Chain System Challenges and Mitigation Measures: A Systematic Review of Qualitative Evidence Siti Norida Wahab (Universiti Teknologi MARA, 42300 Bandar Puncak Alam, Selangor, Malaysia ) Nusrat Ahmed (City Medical College, Gazipur, 1702, Dhaka, Bangladesh ) Md. Uzir Hossain Uzir (Lincoln University College, Petaling Jaya, Malaysia)
Abstract: This paper aims to examine the current challenges faced by Malaysian hospitals during the post-COVID-19 pandemic. This paper employs a subjective environmental scanning approach and a review of the current literature and outlines the challenges as well as proposed mitigation measures to address these concerns. Based on a review and analysis of the literature, the key challenges that the Malaysian healthcare system is struggling with include misinformation and disinformation, high hospital bed occupancy, ICU management crisis, acute shortage of healthcare professionals, treatment delays among non-COVID patients, personal protective equipment (PPE) shortage, occupational burnout, and mental health issues among healthcare professionals, blood supply management issues, challenges concerning treatment, and the challenges concerning vaccination. Several mitigation measures have been proposed as a solution. This research draws the attention of hospital management and policymakers to the issues they confront during the post-COVID-19 pandemic so that suitable solutions may be developed to address them. Findings and suggested mitigation measures can add considerable value to current academic work, and deepen knowledge along with the development of a successful healthcare supply chain system. This study is among a few of its kind that offers mitigation measures for diversifying the healthcare business by venturing into the supply chain system.
Multi-Echelon Inventory Optimization under Disruption Risk Shunichi Ohmori (Waseda University, Japan) Alex J Ruiz Torres (University of Puerto Rico, Puerto Rico) Farzad Mahmoodi (Clarkson University, USA)
Abstract: This study investigates optimal inventory positioning in multi-stage supply chains by utilizing a mixed-integer nonlinear programming model that incorporates a scenario-based disruption delay, and the subsequent expediting to mitigate inventory shortages. The goal is to determine the amount and positioning of inventory in the supply chain to minimize the total inventory and expediting costs, subject to meeting customer service requirements. Discretization techniques are applied to linearize non-convex objective functions and reformulate the problem as an equivalent mixed-integer linear programming, which can be solved by the standard solvers. To demonstrate the model, numerical experiments are conducted to determine the optimal solution under different disruption scenarios. These experiments provide interesting insights regarding inventory decisions that can serve as guidelines for building resilience in the supply chain.
Analysis of Implementation Barriers to Logistics Systems Integration for Omni-Channel Retailing using an Integrated ISM-Fuzzy MICMAC Approach Ranjit Roy Ghatak (International Management Institute (IMI), Bhubaneswar, India)
Abstract: Integrating logistics across channels is crucial to omni-channel (OC) retailing success. OC retailers need to re-examine current logistics strategies to adapt them to OC systems. Implementing OC logistics in retail necessitates the integration of various sub-dimensions within the logistics domain while considering technical, managerial, behavioural, and infrastructure restrictions. Logistics integration is challenging in the OC retailing environment due to the unstructured approach. The purpose of this study is to identify and prioritise barriers to OC logistics in retail, as well as to provide a framework for managing their systematic elimination. A review of the literature and expert opinion revealed twenty-six impediments. Using Fuzzy Interpretative Structural Modelling (FISM), the researchers developed a hierarchical model of the barriers. Following that, a Fuzzy Matrice d’Impacts croises-multiplication applique (FMICMAC) analysis of the barriers helped determine the relative efficacy of the barriers in causing impediment. The study contributes to the growing body of knowledge on OC retailing by resolving the logistics integration issues that impede effective OC logistics implementation. The article fills a substantial void in the literature by developing a structured framework for comprehending and prioritising the logistical problems associated with OC logistics deployment. Modelling the OC logistical barriers' interrelation offers a better understanding of their relationship dynamics, hence easing their gradual eradication. The findings contribute to OC literature by examining the critical logistics resources required for establishing OC logistics, an area of OC retailing literature that has received disproportionate attention. The study contributes to the OC literature by identifying ‘soft’ resources that contribute to the development of logistics capabilities. The findings fill a significant vacuum in the literature on OC logistics by examining the intricate link between the tangible and intangible logistics resources required for improving logistics capabilities.
Sequential Impact of Green Supply Chain Initiatives on Sustainable Performance: Food and Beverage Processing SMEs in Australia Adeline Benjamin (Victoria University Business School, Victoria University, Australia) Himanshu Shee (Victoria University Business School, Victoria University, Australia) Tharaka de Vass (Victoria University Business School, Victoria University, Australia)
Abstract: External Pressure and Green Human Resource Management (GHRM) drive green initiatives but their synergistic effects on Green Supply Chain Initiatives (GSCIs) are yet to be explored. Moreover, results of three elements of the triple bottom line sustainability show mixed relationship in the order they affect each other. Drawing on the Natural Resource-Based View (NRBV) and institutional theory, this research empirically investigates a theoretical model by examining: first, the impact of GHRM practices and external pressures on GSCIs; second, the impact of GSCIs on environmental performance; and third, their sequential effects on social and economic performance. Cross-sectional survey data from 168 SMEs in the Food and Beverage sector in Australia were analysed using structural equation modeling. Results reveal that GHRM practices and external pressures have positive effects on GSCIs that in turn affects sequentially on environmental, social and economic performance. Social dimensions, however, have no significant effect on economic performance. Meanwhile, GSCIs mediate the relationships between GHRM practices and external pressures and environmental performance. Implications are drawn.
Supply Chain Financing System Factors, Solutions, and Benefits: A Systematic Literature Review Daud Fahmi Adhim (Institut Teknologi Bandung, Bandung, Indonesia) Nur Budi Mulyono (Institut Teknologi Bandung, Bandung, Indonesia)
Abstract: Supply Chain Finance (SCF) improves the business efficiency and effectiveness of suppliers, distributors, buyers, and financial institutions within supply chain collaboration. SCF implementation has risen to prominence worldwide, smoothing physical, product, and information flows within the supply chain as a means of maximizing profits. Due to a lack of research into SCF-related factors, solutions and benefits, this paper utilizes a systematic literature review methodology and content analysis to examine 56 papers drawn from major academic databases. The findings incorporate theoretical framework reviews which help to explain how SCF solutions can leverage enhanced supply chain (SC) performance by demonstrating the potential application of SCF to assist facilitators, reduce obstacles to sustained SC performance and develop an integrated conceptual framework illustrating how SCF accelerated overall supply chain performance.
EcoMCS: A Project Management Application Through Management Control Systems for Residential Construction Firms in Colombia Milton Soto-Ferrari (Indiana State University, Terre Haute, IN, USA) Odette Chams-Anturi (Universidad de la Costa, Colombia )
Abstract: This research article aims to introduce a novel project management application, denominated EcoMCS, based on Management Control Systems (MCS) assessment to improve the performance of residential construction firms in Colombia. The study is grounded in the conceptualization of project management and MCS and builds upon an interview study conducted with managers of residential construction firms in the country. Our findings revealed that the economic dimension is the least developed, indicating a need for improvement. The project’s specific objectives include enhancing the MCS’s economic dimension, refining evaluation methods for goal fulfillment, implementing incentive programs, fostering decentralized decision-making, and nurturing human potential within residential construction firms. By addressing these objectives, the proposed EcoMCS application seeks to facilitate efficient and effective project management practices in the residential construction industry, ultimately contributing to more sustainable and cost-effective construction projects.
Improving Lead Time Forecasting and Anomaly Detection for Automotive Spare Parts with A Combined CNN-LSTM Approach Asmae Amellal (Laboratory of Modeling, Optimization of Industrial and Logistics Systems Mosil, Ensa Tetouan, Morocco) Issam Amellal (Laboratory of Modeling, Optimization of Industrial and Logistics Systems Mosil, Ensa Berrchid, Morocco) Hamid Seghiouer (Laboratory of Modeling, Optimization of Industrial and Logistics Systems Mosil, Ensa Tetouan, Morocco) Mohammed Rida Ech-Charrat (Laboratory of Modeling, Optimization of Industrial and Logistics Systems Mosil, Ensa Tetouan, Morocco)
Abstract: This paper presents a solution to a challenge faced in the supply chain management of a spare parts distributor with a dispersed global supply network and local distribution network in Morocco. The problem is a lack of accurate lead time information, leading to difficulties in meeting customer demand. The proposed solution is a framework using an LSTM (Long Short Term Memory) model for lead time forecasting and anomaly detection. The framework combines CNN (Convolution neural network) -Bidirectional LSTM model for forecasting and an LSTM autoencoder with One-Class Support Vector Machine for anomaly detection. The data was obtained from a legal ERP system of a major automotive distributor in Morocco. The results show that the framework is effective in overcoming the lead time information issue, and the relevance of the methods used has been verified via precise performance indicators, such as the RMSE (Root of the mean of the square of the errors) testifying to the accuracy of the results and also through comparison with other models.
Impact of Buyer's Ethical Environment on Supplier's Performance: A Trust-based Mediation Model Amjad Ur Rehman (Al-Qadir University Project Trust Sohawa, Jhelum Pakistan) Adeel Ahmed (Al-Qadir University Project Trust Sohawa, Jhelum Pakistan) Asif Mahmood (Arabian Gulf University, Manama, Bahrain) Zahid Maqbool (International Islamic University Islamabad, Islamabad, Pakistan) Mazhar Iqbal (University of Innsbruck, Austria)
Abstract: This research aims to analyze the impact of buyer ethical environment on supplier performance with mediating role of trust. For this purpose, 177 responses were collected by surveying employees of procurement departments of the manufacturing and service industry. The finding of this research shows that buyers’ ethical environment has a strong positive impact on supplier performance, considering trust as a mediator. Similarly, the buyers’ ethical environment has a positive impact on the trust in a buyer-supplier relationship. The findings of this research can help procurement managers and executives to enhance supplier performance in their procurement department by facilitating suppliers and strengthening their trust in buyer-supplier relationships.
Determination of the Optimal Number of Forklifts in the Distribution Center Using the Queuing Network Model Volodymyr Sysoiev (National Technical University (Kharkiv polytechnic Institute), Ukraine) Yuri Kushn?ruk (Ivan Kozhedub Kharkiv National Air Force University, Ukraine)
Abstract: The functioning of modern distribution centers is impossible without the effective organization of the work of mobile material handling equipment, which is the main means of processing cargo flows in warehouses and directly affects the costs and time of warehouse operations. The article proposes the mathematical model for determining the optimal number of forklifts in the distribution center based on integer programming using the open queuing network model. The model reflects the peculiarities of the technological process of cargo handling in the distribution center and the participation of forklifts in it. Given the impossibility of using exact optimization methods because of the type of the objective function, the heuristic method is proposed for solving the problem, which allows for avoiding the complete enumeration of solutions and finding the optimal number of forklifts in a short time, considering different scenarios and operating modes of the distribution center. The advantage of this heuristic algorithm is its ability to determine the optimal number of service channels in high dimensional open queuing networks. The minimum of total service costs, which include operating costs for the maintenance of forklifts and cargo flow handling costs, were used as an optimization criterion. The model is an effective tool for decision making when equipping distribution centers with mobile material handling equipment.