A supply chain network design considering transportation cost discounts

This study addresses an integrated facility location and inventory allocation problem considering transportation cost discounts. Specifically, this article considers two types of transportation discounts simultaneously: quantity discounts for inbound transportation cost and distance discounts for outbound transportation cost. This study uses an approximation procedure to simplify DC distance calculation details, and develops an algorithm to solve the aforementioned supply chain management (SCM) problems using nonlinear optimization techniques. Numerical studies illustrate the solution procedures and the effects of the model parameters on the SCM decisions and total costs. Results of this study serve as a reference for business managers and administrators.     

Global supply chain network dynamics with multicriteria decision-making under risk and uncertainty

In this paper, we consider the dynamics of a global supply chain network economy in the presence of risk and uncertainty in which distinct speeds of adjustment are included. We assume three tiers of decision-makers: manufacturers, distributors, and retailers, who acquire the product in order to satisfy the demand at the demand markets. The manufacturers, distributors, and retailers may be based in the same or in different countries and may transact in different currencies. We allow for electronic transactions in the form of electronic commerce between the manufacturers and the retailers as well as between the distributors and the retailers since the retailers may be physical or virtual. In addition, supply-side risk and demand-side risk are handled in our formulation with the former being expressed as a multicriteria decision-making problem for each manufacturer and distributor (with distinct weights associated with the criteria) and the latter being handled with the use of uncertain demands. The proposed framework allows for the modeling and theoretical analysis of such global supply chain networks, which involve competition within a tier of decision-makers but cooperation between tiers. Numerical examples are provided for illustrative purposes.     

Dynamics of liner shipping network and port connectivity in supply chain systems: analysis on East Asia

The study of ports in supply chain systems is an emerging area of importance which has drawn more attention from researchers in recent years. This paper presents a new perspective in this research area by examining the calling patterns of container shipping services in order to understand the dynamics of port connectivity and inter-port relationships in the supply chains. Empirical evidence is drawn from four major ports in East Asia, namely Shanghai, Busan, Kaohsiung and Ningbo. The study identifies the shipping capacity, trade routes and geographical regions connected to the ports, shipping lines involved, and the extensity and intensity of inter-port relationships among the four container ports from liner shipping network’s perspective. The findings show that most of the shipping capacity employed on the major east–west trade routes became non-exclusive and involved calls at two or more of the four ports. Port planners, terminal operators and carriers could capitalise on opportunities through exploitation of complementary relationships that exist among the selected ports, such as offering a package for shipping lines to call at a portfolio of terminals owned by the same terminal operator. Policy and research implications as well as recommendations are discussed for various stakeholders concerned with port planning and regional development.     

A hybrid decomposition algorithm for designing a multi-modal transportation network under biomass supply uncertainty

This study presents a two-stage stochastic programming model for the design and management of a biomass co-firing supply chain network under feedstock supply uncertainty. To represent a more realistic case, we generate scenarios from prediction errors of the historical and forecasted biomass supply availabilities. We solve the model using a hybrid decomposition algorithm that combines Sample average approximation with an enhanced Progressive hedging algorithm. The proposed algorithm is validated via a real-world case study using data from Mississippi and Alabama. Computational results indicate that the proposed algorithm is capable of producing high quality solutions in a reasonable amount of time.