The optimization of the closed-loop supply chain network

This paper develops a model of a general closed-loop supply chain network, which includes raw material suppliers, manufacturers, retailers, consumers and recovery centers. The objective of this paper is to formulate and optimize the equilibrium state of the network by using the theory of variational inequalities. Several examples and figures are used to describe the effects of parameters (the return ratio, the transformation rate of raw materials, and the transformation rate of recyclable products) on the equilibrium shipments and net revenues.     

Evolutionary variational inequalities and applications to complex dynamic multi-level models

In this paper we consider a supply chain network model with three tiers of decision-makers (manufacturers, retailers, and consumers) in the case when prices and shipments are evolving on time. Moreover, we assume that excesses of production and excesses of demand of the commodity are present. For such a framework we furnish, using the infinite dimensional duality theory, the equilibrium conditions for the representatives of each tier of the supernetwork, the time-dependent variational formulation governing the complete supply chain supernetwork, and we provide some existence theorems and a numerical example.     

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.     

Optimizing inventory decisions in a multi-stage multi-customer supply chain: A note

In this paper, we propose an n-stage-multi-customer supply chain inventory model where there is a company that can supply products to several customers. We formulate the model for the simplest inventory coordination mechanism which is referred to as the same cycle time for all companies in the supply chain. We conclude that it is possible to use an algebraic approach to optimize the supply chain model without the use of differential calculus.     

Defining a conceptual model for high-speed vessels

High-speed vessels offer the opportunity for faster and more frequent delivery of smaller quantities of goods over shorter sea crossings. This paper reviews the role of high-speed vessels in the context of the total supply chain based on Fisher's product categorisation model. A mode choice process is presented here within the context of supply chain transport strategies. The model relates mode choice to volume supply, product cost, shipping distance, frequency of service, transit time and product type. The paper concludes that where the flexibility is the market winner high-speed vessels are required whereas where cost is the market winner conventional ships will suffice.     

Supply chain network competition in price and quality with multiple manufacturers and freight service providers

In this paper, we develop both static and dynamic supply chain network models with multiple manufacturers and freight service providers competing on price and quality. The manufacturers compete with one another in terms of price and quality of the product manufactured, whereas the freight service providers compete on price and quality of the transportation service they provide for multiple modes. Both manufacturers and freight service providers maximize their utilities (profits) while considering the consequences of the competitors’ prices and quality levels. Bounds on prices and quality levels are included that have relevant policy-related implications. The governing equilibrium conditions of the static model are formulated as a variational inequality problem. The underlying dynamics are then described, with the stationary point corresponding to the variational inequality solution. An algorithm which provides a discrete-time adjustment process and tracks the evolution of the quality levels and prices over time is proposed, and convergence results given. Numerical examples illustrate how such a supply chain network framework, which is relevant to products ranging from high value to low value ones, can be applied in practice.     

Coordinated inventory replenishment and outsourced transportation operations

We consider a one-warehouse N retailers supply chain with stochastic demand. Inventory is managed in-house whereas transportation is outsourced to a 3PL provider. We develop analytical expressions for the operating characteristics under both periodic and continuous joint replenishment policies. We identify the settings where a periodic review policy is comparable to a continuous review one. In our numerical test-bed, the periodic policy performed best in larger supply chains operating with larger trucks. We also observed that if the excess utilization charge is less than 25%, outsourcing becomes beneficial even if outsourcing cost is 25% more than the in-house fleet costs.     

Supply chain design under quality disruptions and tainted materials delivery

Events such as the 2008 Heparin tragedy, in which patients lost their lives due to tainted pharmaceuticals, highlight the necessity for supply chain designers and planners to consider the risk of even low probability incidents in supply chains. The goal of this research is to design a single-period, single-product supply chain model with capacitated facilities to hedge against the possibility of sending tainted materials to consumers. Given that our mixed-integer stochastic model is NP-hard, we develop efficient heuristic and metaheuristic algorithms to obtain acceptable solutions. Computational experience is presented and discussed.     

A supply chain generalized network oligopoly model for pharmaceuticals under brand differentiation and perishability

In this paper, we construct a generalized network oligopoly model with arc multipliers for supply chains of pharmaceutical products using variational inequality theory. The model captures the Cournot competition among the manufacturers who seek to determine their profit-maximizing product flows, which can be perishable, with the consumers differentiating among the products of the firms, whether branded or generic, and the firms taking into consideration the discarding costs. The numerical examples demonstrate that a brand pharmaceutical product may lose its dominant market share as a consequence of patent rights expiration and because of generic competition.     

基于MTO的制造商供应链优化模型

针对基于MTO经营策略的供应链优化模型对运输环节考虑不足的问题,依据运输商、运输方式、线路类型、车型、货物、运送的起始地和终止地等因素对运输费用的共同作用,构建了基于MTO的制造商分阶段线性优化模型,以实现对制造商生产经营活动的优化,并对模型的应用举例说明。     

The impacts of Radio Frequency Identification (RFID) technology on supply chain costs

Radio Frequency Identification (RFID) is regarded as a promising technology for the optimization of supply chain processes since it improves manufacturing and retail operations from forecasting demand to planning, managing inventory, and distribution. This study uses a simulation model to calculate the expected benefits of an integrated RFID system on a three-echelon supply chain obtained through performance increases in efficiency, accuracy, visibility, and security level. The study investigates how the product value, lead time, and demand uncertainty affect the performance of the integrated RFID supply chain in terms of cost factors at the echelon level.     

Integrated inventory-transportation model by synchronizing delivery and production cycles

This paper develops an integrated single-vendor multi-buyer inventory-transportation synchronized supply chain model. In this paper, the decisions of truck assignment and routing are also considered and as a result, a series of vehicle routing problems (VRP) are required to be solved. Due to the highly complicated objective function and the NP-hard VRP problems, the problem cannot be solved analytically. Hence, meta-heuristics are proposed. By means of the numerical examples and a case study, the meta-heuristics developed are shown to be very effective in solving such comprehensive supply chain models, and the results so obtained are promising.     

Modeling and optimizing the integrated problem of closed-loop supply chain network design and disassembly line balancing

This paper describes an integrated model that jointly optimizes the strategic and tactical decisions of a closed-loop supply chain (CLSC). The strategic level decisions relate to the amounts of goods flowing on the forward and reverse chains. The tactical level decisions concern balancing disassembly lines in the reverse chain. The objective is to minimize costs of transportation, purchasing, refurbishing, and operating the disassembly workstations. A nonlinear mixed integer programming formulation is described for the problem. Numerical examples are presented using the proposed model.     

Fault tolerance modeling for an e-waste recycling supply chain

This paper applies a fault-tolerant method that addresses the problem of steady fulfillment in an e-waste recycling supply chain. Due to the double-ended fluctuations in this supply chain, conventional, optimization based, model predictive control cannot be applied without proper improvement. This paper contributes to the e-waste management literature in the initiation of prudent demand management. The inventory management problem is investigated for a double-ended fluctuation for the e-waste recycling supply chain. It is found that the risk-sensitive predictive control method allows all members to retain a constant inventory level, for which the control target is unclear and the demand fluctuation is high.     

基于动态质量机能展开的供应链质量屋研究

通过对传统质量机能展开(QFD)与动态质量机能展开(DQFD)的分析,对供应链环境下DQFD的机理进行了论述。以研究供应链厂商与终端消费者之间关系为切入点,研究产品/服务组合的质量需求展开,进一步阐述了供应链环境下的质量屋构建理论,并以实例对质量屋模型的构造过程进行了分析与设计。     

改善多级供应链订货量波动的传递函数分析

分析供应链中各节点企业订货的动态过程,建立各企业订货量的离散时域模型并通过Z-变换,将离散时域订货量模型转换为以需求量为输入、订货量为输出的传递函数模型,说明企业订货量随需求量变化而波动的过程.比较信息共享前后企业订货量的波动情况,了解信息共享改善供应链订货量波动的程度.     

Integrating the warehousing and transportation functions of the supply chain

Electronic commerce and associated business-to-business transaction capabilities have changed the way in which supply chains operate. The Internet has enabled information exchange on an unprecedented scale, often at a pace too fast for normal consumption. Companies are not equipped to make effective use of data from warehouse management systems––which contain information on supplier/customer warehouse inventory levels and key customer ordering patterns––and transportation management systems––within which information pertaining to the location of important supply chain assets such as products or vehicles is typically stored. These systems are key factors in integrating the physical flow of goods along the supply chain. The integration of these systems leads to global inventory visibility, which, in turn, leads to reduced costs and improved customer service by decreasing shipping and receiving cycle times, increasing shipment and inventory accuracy, and decreasing lead-time variability. This paper examines the total cost benefits that can be achieved by suppliers and warehouses through the increased global visibility provided by an integrated system. We develop a discrete event simulation model of a multi-product supply chain to examine the potential benefits to be gained from global inventory visibility and trailer yard dispatching and sequencing techniques. Experimental results demonstrate the potential for this integrated paradigm to improve customer service through improved efficiencies, reduced costs, and reduced lead-time variability.     

An empirical analysis of dockless bike-sharing utilization and its explanatory factors: Case study from Shanghai,China

Revealing dockless bike-sharing utilization pattern and its explanatory factors are essential for urban planners and operators to improve the utilization and turnover of public bikes. This study explores the dockless bike-sharing utilization pattern from the perspective of bike using GPS-based bike origin-destination data collected in Shanghai, China. In this paper, utilization patterns are captured by decoupling several spatially cohesive regions with intensive bike use via non-negative matrix factorization. We then measure the utilization efficiency of bikes within each sub-region by calculating Time to booking (ToB) for each bike and explore how the built environment and social-demographic characteristics influence the bike-sharing utilization with ordinary least squares (OLS) regression and geographically weighted regression (GWR) models. The matrix factorization results indicate that the shared bikes mainly serve a certain area instead of the whole city. In addition, the GWR model shows higher explanatory power (Adjusted R² = 0.774) than the OLS regression model (Adjusted R² = 0.520), which suggests a close relationship between bike-sharing utilization and the selected explanatory variables. The coefficients of the GWR model reveal the spatial variations of the linkage between bike-sharing utilization and its explanatory factors across the study area. This study can shed light on understanding the demand and supply of shared bikes for rebalancing and provide support for operators to improve the dockless bike-sharing utilization efficiency.     

An inventory-based simulation model for annual-to-daily temporal freight assignment

In the aggregate freight demand modeling literature, temporal assignment (annual to daily flows) is often oversimplified or neglected altogether. Unlike passenger flows, freight flows over the course of a year are not uniform and can vary significantly as the result of trade-offs between inventory and transportation cost management. We introduce the first temporal assignment model that explicitly considers these trade-offs for aggregate freight forecasting. A two-stage model is proposed that first decomposes aggregate annual zonal flows to firm group annual flows using a supply chain network model, which are then temporally assigned by simulating purchase order transactions throughout supply chains. Lot sizes are estimated with an Economic Order Quantity (EOQ) model and calibrated with monthly inventory data. The result is an aggregate-disaggregate-aggregate model that fits into aggregate freight forecasting models but makes use of more disaggregate logistical data. The model is illustrated with a simple replicable example, followed by a case study conducted with California statewide data to break out the distributed zonal flows into average daily volumes for network assignment. Calibration results using 2007 IMPLAN data showed a median percentage difference of simulated annual flows from FAF³ data of 2.38%, and a median percentage difference of simulated inventories from IMPLAN data of 4.85%, which suggests an excellent fit. Empirical validation results showed the model outperforms fixed factor approaches in mean value accuracy by 15–31%.     

Reliable design of a forward/reverse logistics network under uncertainty: A robust-M/M/c queuing model

This paper presents a novel model for designing a reliable network of facilities in closed-loop supply chain under uncertainty. For this purpose, a bi-objective mathematical programming formulation is developed which minimizes the total costs and the expected transportation costs after failures of facilities of a logistics network. To solve the model, a new hybrid solution methodology is introduced by combining robust optimization approach, queuing theory and fuzzy multi-objective programming. Computational experiments are provided for a number of test problems using a realistic network instance.