Supplier relationship impacts on postponement strategies

The main purpose of this paper is to examine the impact of the supplier relationship on postponement implementation in the buying firm. The links between three supplier relationship constructs and three postponement constructs are hypothesised and tested through structural modelling. These hypotheses are then tested using empirical data of a sample of 219 manufacturing firms. The findings suggest that the ability of the buying firm to delay product design decisions (postponement in product design) is positively related to the level of supplier commitment, supplier expectation of a continuing relationship with the buyer, and level of joint buyer and supplier actions. However, the buying firm’s ability to delay purchasing decisions about which items to order or how many to order (postponement in purchasing operations) was only positively related to the level of joint buyer and supplier actions. By contrast, the buying firm’s ability to delay the final product configuration (postponement in production operations) was not directly affected by those aspects of the supplier relationship investigated. These findings give greater insight into how different aspects of supplier relationship impact different types of postponement than previous research and have significant implications for practice.     

A case study of the adoption of a reference standard for ISO 14006 in the lift industry

The Spanish UNE 150301 standard was used as a basic reference point in paving the way for the ISO 14006 ecodesign standard. This article aims to analyze the pioneering UNE 150301 standard, as well as its adoption process and its practical results in the lift industry. Since the UNE 150301 standard is in a very early stage of dissemination, an empirical study based on a qualitative methodology has been designed. An exploratory case study has therefore been carried out with the participation of a company from the lift industry which is, in fact, the first Spanish industrial company to have adopted the aforementioned ecodesign standard. The company subjected to analysis has integrated ecoindicators into the design process to analyze the environmental impact of its products on each stage of their life cycle. Using these ecoindicators, the company has observed that the main impact is evident in the usage stage, due to energy consumption. The company has managed to improve products by means of a continuous improvement process, with reductions in terms of both cost and environmental impact. The adoption of the standard UNE 150301 can be a useful tool in reducing the environmental impact of the products and in obtaining some competitive advantages, such as cost reduction, improvement in energy efficiency of the product, and a better adaptation to laws and regulations.     

Incorporating a delay mechanism in ordering policies into multi-echelon distribution systems

In this paper, we devise a framework for obtaining the optimal ordering policy in a single location, continuous-review inventory system with arbitrary inter-demand times. We show that it is optimal to order at demand arrival epochs only if the inter-demand time has a constant or decreasing failure rate. When the inter-demand time has an increasing failure rate, we show that the optimal policy is to delay the order. We then extend this policy to multi-echelon distribution systems consisting of one supplier and many retailers. Both decentralized and centralized systems are considered. We derive expressions and procedures for the evaluation of the total cost and the computation of optimal delay in all the considered settings. More importantly, we study the impact of our delay policy in all the settings. The numerical results indicate that for the single-location model, the optimal delay can significantly reduce the total cost. Results from the single-location model can be applied to the decentralized multi-echelon system, where the upstream supplier acts as a single-location system. The supplier order delay can also have a significant impact (either positive or negative) on the retailers' total cost as well as the system's total costs. Finally, the impact of supplier order delay is minimal in the centralized multi-echelon setting. We offer an intuitive explanation for this observation.     

Assessing the economic and environmental impact of remanufacturing: a decision support tool for OEM suppliers

The circular economy is often presented as a solution for companies to increase the sustainability of their business. In many situations where suppliers produce subassemblies or modules for OEMs in a B2B context, dependency on their clients limits their options for profitable closed-loop supply chains. In this paper, we develop a simple tool suppliers can use to quickly assess whether remanufacturing is economic and environmentally attractive compared to producing new components. We derive optimal acquisition and reuse quantities that minimise total costs. Based on our analysis with a supplier in the automotive industry, we find that used core prices and remanufacturing yield rates have a large impact while an optimised design for remanufacturing can only marginally improve the situation. The tool is applicable to a wide variety of suppliers and industries that remanufacture their modules or subassemblies, or are exploring the option to engage in remanufacturing operations.     

Optimal design of cogeneration system based on exergoenvironmental analysis

In this article, a new procedure was introduced for the optimal design of utility system in process industries. This method was based on the development of the R-curve concept and a new cogeneration targeting through estimating costs, environmental impacts, exergoeconomic, and exergoenvironmental analyses. In the exergoenvironmental analysis, the environmental impacts obtained by life cycle assessment are apportioned to the exergy streams pointing out the main system components with the highest environmental impact and possible improvements associated with these components. Moreover, exergoenvironmental variables are calculated, and an exergoenvironmental evaluation is carried out. In this regard, correlations for estimating the environmental impacts of cogeneration system have been introduced. In addition, the powerful and accurate cogeneration targeting method was applied. Also, the new graphic representations have been proposed. These curves are based on cost estimation, environmental impacts, and exergoenvironmental analysis. In addition, the optimal design of site utility was carried out in Iran LNG cogeneration plant, in which the usefulness of this method was clearly demonstrated.     

A supportive pricing model for suppliers with purchase order financing

Traditionally, lowering the purchase price is welcomed by a business buyer since people believe it can reduce the costs. However, it can be another story if her supplier is short of money and applies for purchase order financing to fund the production. This paper identifies the conditions under which a buyer has the motivation of allowing higher purchase price to facilitate the supplier’s loan application and consequently improve the supply availability. We use a Stackelberg model to describe the interaction between the supplier’s plan (deciding the loan amount and production input simultaneously) and the buyer’s order design (deciding the purchase price and order size jointly). We show the buyer’s optimal order design has four kinds of closed-form solutions as the supplier’s operational state follows a two-point distribution. The design choice should depend on the item value and the supplier’s reliability. In short, this research shows when to increase the purchase price and how to coordinate the order size with it. Generally speaking, if the item value is high and the supplier’s reliability is medium, a buyer allowing a premium price can ensure the supply and actually maximise her expected profit.     

Employing dynamic fuzzy membership functions to assess environmental performance in the supplier selection process

The proposed system illustrates that logic fuzzy can be used to aid management in assessing a supplier's environmental performance in the supplier selection process. A user-centred hierarchical system employing scalable fuzzy membership functions implement human priorities in the supplier selection process, with particular focus on a supplier's environmental performance. Traditionally, when evaluating supplier performance, companies have considered criteria such as price, quality, flexibility, etc. These criteria are of varying importance to individual companies pertaining to their own specific objectives. However, with environmental pressures increasing, many companies have begun to give more attention to environmental issues and, in particular, to their suppliers’ environmental performance. The framework presented here was developed to introduce efficiently environmental criteria into the existing supplier selection process and to reflect on its relevant importance to individual companies. The system presented attempts to simulate the human preference given to particular supplier selection criteria with particular focus on environmental issues when considering supplier selection. The system considers environmental data from multiple aspects of a suppliers business, and based on the relevant impact this will have on a Buying Organization, a decision is reached on the suitability of the supplier. This enables a particular supplier's strengths and weaknesses to be considered as well as considering their significance and relevance to the Buying Organization.     

A model for performance monitoring of suppliers

The purchasing function is central to the strategic operations of effective supply chain management. This centrality is mainly due to the significant impact of material costs on profits, increased investments in inter-organizational advanced manufacturing and information technologies, and a growing emphasis on the just-in-time operations philosophy. The critical business processes of the purchasing function include supplier selection, negotiation of supply contracts, monitoring supplier performance, and acting as an interface between an organization and its suppliers. Within these core processes of purchasing, this paper narrows its scope to focus upon the supplier performance evaluation and monitoring process, which assists in maintaining effective customer-supplier linkages. While price has been traditionally considered as the single most important factor in evaluating suppliers, it has been agreed upon that value performance emphasis needs to include other important factors such as quality, delivery and flexibility. Given this evolving business competitiveness environment, the contribution of this research is threefold. First, it applies a new multi-criteria evaluation model for supplier performance evaluation by considering various performance criteria. Second, a proposed application extension of this model serves as a monitoring and control mechanism for the performance of suppliers, thus supporting continuous process improvement to achieve efficient customer-supplier relationships. Third, the paper presents this technique as a new methodological extension to data envelopment analysis research by improving the discriminatory power of an existing variable returns to scale model. The model and its application are demonstrated through a previously published illustrative case example.     

An integrated computer-aided system for generation and evaluation of sustainable process alternatives

This paper presents an integrated system for generation of sustainable process alternatives with respect to new process design as well as retrofit design. The generated process alternatives are evaluated through sustainability metrics, environmental impact factors as well as inherent safety factors. The process alternatives for new process design as well as retrofit design are generated through a systematic method that is simple yet effective and is based on a recently developed path flow analysis approach. According to this approach, a set of indicators are calculated in order to pinpoint unnecessary energy and material waste costs and to identify potential design (retrofit) targets that may improve the process design (in terms of operation and cost) simultaneously with the sustainability metrics, environmental impact factors and the inherent safety factors. Only steady state design data and a database with properties of compounds, including, environmental impact factor related data and safety factor related data are needed. The integrated computer-aided system generates the necessary data if actual plant or experimental data are not available. The application of the integrated system is highlighted through a number of examples including the well-known HDA process.     

Eco-redesign of a personal electronic product subject to the energy-using product directive

It cannot be denied that environmental consciousness is becoming important. Ironically, legislation is probably the most satisfactory driver for pushing manufacturers to take environmental concerns into design considerations. In fact, the European Union introduced a new law (directive 2005/32/EC) for regulating the environmental consequences of all energy-using products (EuPs) in August 2007, the scope of which covers all products that rely on energy sources in any form for operation. Design alternatives are required in the product development stage so that environmental concerns can be considered as a decision parameter. In complying with the directive, life-cycle assessment (LCA) is a useful tool to draw conclusions and to compare the performance of alternatives. In this connection, a case study is carried out to assess the environmental impact of a personal electronic product through LCA, subject to the scope of the stated directive. The objectives of this paper are threefold: (i) to report the case in relation to the directive; (ii) to summarise the results of the LCA accordingly; and (iii) to suggest a new conceptual design and to compare the LCA of this new design with the original design.     

Environmental conscious product design using CAD and CAE

Environmental consciousness has been regarded as an important concept for survival in the contemporary scenario. Modern design engineers are in need of approaches for creating environmentally friendlier products. In this context, this article reports a case study carried out in an Indian rotary switches manufacturing organization. The existing components of rotary switch have been modelled using computer-aided design (CAD). Then, the sustainability analysis has been carried out for determining the environmental impact. This is followed by the optimisation of the components using computer-aided engineering (CAE). The environmental impact has been measured in terms of carbon footprint, energy consumption and air/water impacts. It has been found that the optimized components possess minimal environmental impact. The sustainability improvement after the implementation of the proposed approach has been computed. It could be inferred from the results of the case study that CAD and CAE could lead to the development of environmental conscious product designs with minimal impact to the environment.     

Redesign methodology for mechanical assembly

Design for assembly is the concept of carrying out critical thought early in the design stage to create assembly easement at the production stage. In the aerospace industry, products have very long lives, frequently being optimised rather than introducing new products. This has meant older products, which are stable income generators, have not benefited from the latest design for assembly methods and manufacturing technology suffers from obsolescence. It has been established that a large percentage of overall product cost is determined at the design stage; thus, existing products suffer from preloaded costs. This paper takes existing design for assembly methodologies and analyses them with respect to the unique challenges involved in legacy product redesign. Several novel factors that contribute to redesign analysis are identified such obsolescence impact and a holistic operation difficulty assessment. A tool is developed to identify potential redesign for assembly projects. The tool is demonstrated through the application of real data and comparing against business decisions. The tool was found to provide a strong indication of where profitable projects may be launched.     

Economic and environmental optimization of the biobutanol purification process

Current technologies for the production of biobutanol by fermentation have improved the production processes. These new technology improvements are economically viable with respect to the petrochemical pathway. For this, the aim of this paper is to compare four different process designs for the purification of biobutanol by solving a multi-objective optimization process involving two objective functions: the total annual cost and return of investment as economic functions and the associated eco-indicator 99 as an environmental function. The process associated to the routes A, B, and C consists of a steam stripping distillation and distillation columns, while the process D includes distillation columns with a liquid–liquid extraction column. Process modeling was performed in the Aspen Plus software, and the multi-objective optimization was conducted using differential evolution with tabu list as a stochastic optimization method. Results indicate that the process route D is the most profitable design and the process route C has the lowest environmental impact measured through the eco-indicator 99 method. Additionally, the use of a solar collector against steam has been compared in order to produce the required heat duty needed in every single distillation column to have a broader view about the environmental and economic impact of these devices.     

当代数字化科技背景下环境设计的艺术与科技共生性

全球化背景下,网络与数字化科技已经成为一种新的必然趋势。当代环境设计实践的日新月异,让人们在探讨设计时,基于对传统物质对象的讨论去探究设计价值观层面更为深刻的文化内涵与科技驱动力。从数字时代对环境空间概念的拓展、数字影像对环境设计实践的影响、交互设计对环境设计实践的影响、虚拟现实对可持续环境设计应用的影响四个方面进行论述。赛博空间作为人类开辟的第五维空间已经完全突破了传统实体空间的概念界限,在设计实践与教育领域大大丰富了环境设计的概念。研究得出,设计数字化的崛起使电子信息时代将艺术与技术重新融为一体。数字化时代的新技术可为环境设计带来新的可能性,而虚拟现实作为计算机生成的一种特殊环境,使今天的环境设计师比以往任何时候都更加依赖技术,并将设计的更多精力与重点投入到这个虚拟环境中。     

Designing a collaborative supply-chain plan using the analytic hierarchy process and genetic algorithm with cycle-time estimation

Collaboration management has become a key issue for supply-chain management and can improve the overall production/manufacturing performance and value. This paper aims to conduct collaborative supply-chain planning and establish supplier selection, as well as production and distribution planning. This study uses an Analytic Hierarchy Process with Rough Sets Theory to establish a supplier purchasing value rating system. Also, a cycle-time estimation procedure is developed to effectively estimate the operating time of a collaborative supply chain. Assembly-line balancing technology is also introduced to guarantee smooth production and distribution in a supply chain. A multi-objective optimisation mathematical model, including purchasing value, cost, cycle time, and smoothness index, is constructed to complete the supplier selection and production-distribution planning. To efficiently solve this mathematical model, this paper proposes a genetic algorithm (E_ctGA) combined with a cycle-time estimation procedure. Finally, it presents a case study for validation. The results show that a better collaborative supply chain plan could be achieved by combining the proposed cycle-time estimation procedure.     

Adoption of green supply chain management practices and their impact on performance: an exploratory study of Indian manufacturing firms

Research on green supply chain management (GSCM) or sustainable supply chain management (SSCM) has attracted increased attention in recent years. Although GSCM/SSCM has been studied for developed and developing countries, there has been little information about the adoption of GSCM/SSCM practices in India. This article presents one of the earliest surveys on GSCM practices in Indian manufacturing firms. The items for the survey were developed based on the extant literature and feedback from corporates. Some of the major findings of the survey are as follows. We found that the state of adoption of GSCM practices by Indian firms was still in its infancy, the awareness of environmental sustainability was quite low among consumers, and the regulatory framework was also lacking in terms of promoting environmental sustainability. Results of data analysis showed that supplier collaboration for environmental sustainability had a positive impact on environmentally sustainable product design and logistics, which in turn was positively related to competitiveness and economic performance of the firm. We compared the results with the observations made by other researchers for developed and developing countries and provided managerial implications for the government and manufacturers as to what steps need to be taken to generate awareness towards environmental sustainability and facilitate the adoption of GSCM practices among Indian firms to a greater extent. We conclude the paper by indicating directions for future research on GSCM/SSCM.     

Supplier network relocation in a capital-intensive context: a longitudinal case study

The problem of delocalisation has assumed enormous importance over the last years, given the ever increasing number of firms who turn to it in order to improve their competitive performance. This type of intervention has an impact that extends throughout the whole supplier network of those firms that delocalise. The originality of this research in comparison with the numerous studies on this subject lies in analysis of the supplier network relocation of a firm that has delocalised the production plant and operates in a capital-intensive context. The use of the action research method has enabled us to carry out fieldwork, by conducting a longitudinal case study, on what problems can occur, what solutions can be adopted, and what contingent factors are critical for the realisation of a supplier network delocalisation project in a particular context, such as a capital-intensive context.     

Using integrated fuzzy DEMATEL and fuzzy C: means algorithm for supplier evaluation and selection

Decision-making techniques are used to help evaluate the current suppliers’ aim at classifying performance of individual suppliers against desired levels of performance, so as to design suitable plans to increase the performance and capabilities of suppliers. In this study, an integrated model is introduced and proposed for increasing the supplier selection and evaluation quality. The methodology is composed of two steps. The first stage is fuzzy decision-making trial and evaluation laboratory method in which the interactions between the evaluation criteria and the criteria weight have been computed. At the second stage, performances of suppliers are assessed using both the criteria weights obtained at the first stage and fuzzy c-means clustering algorithm by classifying the vendors according to their performances. Obtained results show that the proposed model is very well suited as a decision-making tool for supplier selection decisions.     

Optimal channel coordination in use-based product-service system contracts

Nowadays, service economy efficiencies are key to keep competitiveness and increase market advantages. The development of Product-Service Systems (PSS) can be an interesting strategy as they seek to improve the business performance of all the participants in the value chain. This paper proposes a novel reliability-based reward scheme for use-oriented PSS contracts. In a PSS instead of paying for the product, the client pays a fee for its performance. The contribution of this work to the existing literature is to provide a quantitative tool for the development of a use-oriented PSS contract based on non-repairable component reliability and risk sharing. It can be extended to other performance metrics such as availability and reliability. A well designed PSS achieves a mutual growth agreement for the client and the supplier if it aligns their interests through channel coordination. This is achieved by balancing the improvement in the expected cost and profit for the client and the supplier, respectively. The improvement is measured with respect to a baseline scenario where no PSS contract exists. The methodology is tested using a case study that analyses mining haul truck tires. The results show a significant overall improvement in the main key performance indicators and environmental impact of the value chain.     

Supplier Selection Based on Process Capability and Price Analysis

Supplier selection is an important part of supply chain management. Among the numerous methods that have been proposed, process capability index is considered to be the most effective technique for identifying quality parts. However, supplier selection should be carried out on the basis of quality and cost together. There is no easy tool available to evaluate the price and quality in an integrated manner. In this article, a new approach to supplier selection using capability index and price comparison (CPC) chart is presented. The CPC chart integrates the process capability and price information of multiple suppliers and presents them in a single chart. It provides a simple but effective method to consider quality and price simultaneously in the supplier selection process.