A new network epsilon-based DEA model for supply chain performance evaluation

Supply chain performance evaluation problems are inherently complex problems with multilayered internal linking activities and multiple entities. Data Envelopment Analysis (DEA) has been used to evaluate the relative performance of organizational units called Decision Making Units (DMUs). However, the conventional DEA models cannot take into consideration the complex nature of supply chains with internal linking activities. Network DEA models using radial measures of efficiency are used for supply chain performance evaluation problems. However, these models are not suitable for problems where radial and non-radial inputs and outputs must be considered simultaneously. DEA models using Epsilon-Based Measures (EBMs) of efficiency are proposed for a simultaneous consideration of radial and non-radial inputs and outputs. We extend the EBM model and propose a new Network EBM (NEBM) model. The proposed NEBM model combines the radial and non-radial measures of efficiency into a unified framework for solving network DEA problems. A case study is presented to exhibit the efficacy of the procedures and to demonstrate the applicability of the proposed method to a supply chain performance evaluation problem in the semiconductor industry.     

SCOlog: A logic-based approach to analysing supply chain operation dynamics

In a complex business world, characterised by globalisation and rapid rhythms of change, understanding supply chain (SC) operation dynamics is crucial. This paper describes a logic-based approach to analysing SC operation dynamics, named SCOlog. SC operation is modelled in a declarative fashion and it is simulated following rule-based execution semantics. This approach facilitates the automated explanation of simulated SC operational behaviours and performance. The automated explanation support provided by SCOlog is found to improve the understanding of the domain for non-SCM experts. Furthermore, SCOlog allows for maintainability and reusability.     

System dynamics of supply chain network organization structure

Information technology is providing manufacturers with additional flexibility with regard to their supply chain network choices. Our research studies supply chain network organization structures categorized by the organic and mechanistic management control structures. The structural impacts on cost and fill rate performance are studied in two-echelon and two-supply-chain network organization models under different market coordination conditions using system dynamic simulations. Our results show significant effects of demand and network structural factors, and their interactions, on these measures. As demand becomes dynamic, the cooperative interaction model, where supply chains cooperate to satisfy customer demand, is found to have better system performance than the competitive supply chain model. The analysis also suggests that increasing the responsiveness at the downstream plant is particularly important to the overall system performance improvement.     

Supply chain network equilibrium with revenue sharing contract under demand disruptions

Contract is a common and effective mechanism for supply chain coordination, which has been studied extensively in recent years. For a supply chain network model, contracts can be used to coordinate it because it is too ideal to obtain the network equilibrium state in practical market competition. In order to achieve equilibrium, we introduce revenue sharing contract into a supply chain network equilibrium model with random demand in this paper. Then, we investigate the influence on this network equilibrium state from demand disruptions caused by unexpected emergencies. When demand disruptions happen, the supply chain network equilibrium state will be broken and change to a new one, so the decision makers need to adjust the contract parameters to achieve the new coordinated state through bargaining. Finally, a numerical example with a sudden demand increase as a result of emergent event is provided for illustrative purposes.     

A systematic approach for supply chain improvement using design structure matrix

Supply chain is a complex system that involves many system elements from various functional areas. Performance of a supply chain heavily depends on the effectiveness of communication and coordination among these system elements and functional areas. However, a large and complex supply chain usually makes it difficult to coordinate and thus degrades its performance. This paper focuses on the development of a systematic approach with the following objectives: (1) to identify and quantify the interactions among the system elements in a supply chain; (2) to decompose the large interdependent group of system elements into smaller and manageable sub-groups; and thus (3) to improve the structure of the supply chain system. A supply chain system is first decomposed into subsystems and system elements from which the interactions (i.e., independent, dependent and interdependent relationships) are studied and documented by design structure matrix (DSM). Next, the interaction strengths among the related system elements are quantified. Cluster analysis is used to decompose the large interdependent group into smaller ones in order to provide a better supply chain system structure. The effectiveness of this systematic approach is demonstrated by an illustrative example. The result shows that it is able to improve the system structure of a supply chain that will be useful for the supply chain reengineering.     

Supply chain network design under oligopolistic price and service level competition with foresight

In this paper a new bi-level model for designing the network structure of a competitive supply chain (SC) is presented with anticipating variable prices and service levels competition in markets under stochastic price and service level dependent elastic demands with the presence of existing, external rivals. The network structure of the new entrant SC would be designed under the limited production capacity of its producers in a way to maximize its future capturable profit in the competitive markets. The network of the new SC is assumed to be set “once and for all” but further price and service level adjustments are possible. Outer part of this bi-level model deals with strategic decisions of SC network design. Given the SC network structure assigned by the outer model in each iteration, the inner equilibrium model determines the equilibrium retail prices and service levels. Finally, we illustrate the model through several numerical examples.     

A review of supply chain complexity drivers

Studies on supply chain complexity mainly use the static and dynamic complexity distinction. While static complexity describes the structure of the supply chain, the number and the variety of its components and strengths of interactions between these; the dynamic complexity represents the uncertainty in the supply chain and involves the aspects of time and randomness. This distinction is also valid when classifying the drivers of supply chain complexity according to the way they are generated. Supply chain complexity drivers (e.g., number/variety of suppliers, number/variety of customers, number/variety of interactions, conflicting policies, demand amplification, differing/conflicting/non-synchronized decisions and actions, incompatible IT systems) play a significant and varying role in dealing with complexity of the different types of supply chains (e.g., food, chemical, electronics, automotive).     

A model measurement system for collaborative supply chain partners

The purpose of this paper is to understand business performance in the context of an electronic component company. This paper developed a system dynamics model that describes supply chain process structure and examines scenarios, as well. Thus, this study adopted the signal-to-noise (SN) ratio defined by the Taguchi method to evaluate the robustness of a specific supply chain behavior. Resulting in poor inventory cost performance with uncertainty demand, this paper shows how the factor delivery time and lead time of an order can improve performance. Finally, this paper serves as a guideline for decisions that require different inventory strategies.     

Measuring supply chain resilience using a deterministic modeling approach

To achieve a competitive edge in an uncertain business environment where change is imperative, one of the significant challenges for an organization is to mitigate risk by creating resilient supply chains. This research proposes a model using graph theory which holistically considers all the major enablers of resilience and their interrelationships for analysis using an Interpretive Structural Modeling approach. The uniqueness of this model lies in its ability to quantify resilience by a single numerical index. The quantification of resilience will help organizations assess the effectiveness of various risk mitigation strategies. This will provide tools for managers to compare different supply chains while offering a deeper knowledge of how supply chain characteristics increase or decrease resilience and consequently affect supply chain risk exposure. Thus, the research supports organizations in measuring and analyzing supply chain resilience and facilitates supply chain decision-making. The proposed method could simplify the dynamic nature of environment for managing disruptions in a supply chain. This novel approach for determining the supply chain resilience index (SCRI) advocates the consideration of resilience aspects in supply chain design, thus giving a competitive advantage to achieve market share even during a disruption.     

A genetic algorithm approach for multi-objective optimization of supply chain networks

Supply chain network (SCN) design is to provide an optimal platform for efficient and effective supply chain management. It is an important and strategic operations management problem in supply chain management, and usually involves multiple and conflicting objectives such as cost, service level, resource utilization, etc. This paper proposes a new solution procedure based on genetic algorithms to find the set of Pareto-optimal solutions for multi-objective SCN design problem. To deal with multi-objective and enable the decision maker for evaluating a greater number of alternative solutions, two different weight approaches are implemented in the proposed solution procedure. An experimental study using actual data from a company, which is a producer of plastic products in Turkey, is carried out into two stages. While the effects of weight approaches on the performance of proposed solution procedure are investigated in the first stage, the proposed solution procedure and simulated annealing are compared according to quality of Pareto-optimal solutions in the second stage.     

Network optimization in supply chain: A KBGA approach

In this paper, we present a Knowledge Based Genetic Algorithm (KBGA) for the network optimization of Supply Chain (SC). The proposed algorithm integrates the knowledge base for generating the initial population, selecting the individuals for reproduction and reproducing new individuals. From the literature, it has been seen that simple genetic-algorithm-based heuristics for this problem lead to and large number of generations. This paper extends the simple genetic algorithm (SGA) and proposes a new methodology to handle a complex variety of variables in a typical SC problem. To achieve this aim, three new genetic operators—knowledge based: initialization, selection, crossover, and mutation are introduced. The methodology developed here helps to improve the performance of classical GA by obtaining the results in fewer generations. To show the efficacy of the algorithm, KBGA also tested on the numerical example which is taken from the literature. It has also been tested on more complex problems.     

A multi-objective optimization for green supply chain network design

In this paper, we study a supply chain network design problem with environmental concerns. We are interested in the environmental investments decisions in the design phase and propose a multi-objective optimization model that captures the trade-off between the total cost and the environment influence. We conduct a comprehensive set of numerical experiments. The results show that our model can be applied as an effective tool in the strategic planning for green supply chain. Meanwhile, the sensitivity analysis provides some interesting managerial insights for firms.     

A fuzzy c-means based hybrid evolutionary approach to the clustering of supply chain

This paper describes the work that adapts group technology and integrates it with fuzzy c-means, genetic algorithms and the tabu search to realize a fuzzy c-means based hybrid evolutionary approach to the clustering of supply chains. The proposed hybrid approach is able to organise supply chain units, transportation modes and work orders into different unit-transportation-work order families. It can determine the optimal clustering parameter, namely the number of clusters, c, and weighting exponent, m, dynamically, and is able to eliminate the necessity of pre-defining suitable values for these clustering parameters. A new fuzzy c-means validity index that takes into account inter-cluster transportation and group efficiency is formulated. It is employed to determine the promise level that estimates how good a set of clustering parameters is. The capability of the proposed hybrid approach is illustrated using three experiments and the comparative studies. The results show that the proposed hybrid approach is able to suggest suitable clustering parameters and near optimal supply chain clusters can be obtained readily.     

A non-smooth optimization model for a two-tiered supply chain network

A non-smooth optimization model is established for a two-tiered supply chain network where manufacturers are at the upper level and consumers are at the lower level. A supply chain equilibrium model is considered at the lower level while policy interventions are taken into account at the upper level. A mathematical program with equilibrium constraints (MPEC) is established for the two-tiered supply chain network. Numerical illustrations are carried out using a 9-node network and preliminary results are reported.     

具有模糊需求的多商品流供应链网络均衡研究

研究由多个相互竞争的制造商与多个相互竞争的零售商组成,且零售商处面临模糊市场需求、存在差异性的多商品供应链网络均衡问题.运用logit模型刻画消费者的随机选择行为,利用模糊事件的可信性测度推导零售商的模糊期望利润,借助有限维变分不等式理论构建具有模糊需求的多商品流供应链网络均衡状态满足的变分不等式,并分析了供应链网络均衡解的存在性和唯一性.最后,结合算例讨论了需求的模糊性对供应链网络均衡的影响.     

Decomposition heuristic to minimize total cost in a multi-level supply chain network

In this paper, the distribution planning model for the multi-level supply chain network is studied. Products which are manufactured at factory are delivered to customers through warehouses and distribution centers for the given customer demands. The objective function of suggested model is to minimize logistic costs such as replenishment cost, inventory holding cost and transportation cost. A mixed integer programming formulation and heuristics for practical use are suggested. Heuristics are composed of two steps: decomposition and post improving process. In the decomposition heuristics, the problems are solved optimally only considering the transportation route first by the minimum cost flow problem, and the replenishment plan is generated by applying the cost-saving heuristic which was originally suggested in the manufacturing assembly line operation, and integrating with the transportation plan. Another heuristic, in which the original model is segmented due to the time periods, and run on a rolling horizon based method, is suggested. With the post-improving process using tabu search method, the performances are evaluated, and it was shown that solutions can be computed within a reasonable computation time by the gap of about 10% in average from the lower bound of the optimal solutions.     

A graph theoretic-based heuristic algorithm for responsive supply chain network design with direct and indirect shipment

The configuration of the supply chain network has a strong influence on the overall performance of the supply chain. A well designed supply chain network provides a proper platform for efficient and effective supply chain management. The supply chain network should be designed in the way that could meet the customer needs with an efficient cost. This paper studies the responsive, multi-stage supply chain network design (SCND) problem under two conditions: (1) when direct shipment is allowed and (2) when direct shipment is prohibited. First, two mixed integer programming models are proposed for multi-stage, responsive SCND problem under two abovementioned conditions. Then, to escape from the complexity of mixed integer mathematical programming models, graph theoretic approach is used to study the structure of the SCND problems and it is proven that both of SCND problems considered in this paper could be modeled by a bipartite graph. Finally, since such network design problems belong to the class of NP-hard problems, a novel heuristic solution method is developed based on a new solution representation method derived from graph theoretic view to the structure of the studied problem. To assess the performance of the proposed heuristic solution method, the associated results are compared to the exact solutions obtained by a commercial.     

An ontology based approach to organize multi-agent assisted supply chain negotiations

Effective supply chain management (SCM) comprises activities involving the demand and supply of resources and services. Negotiation is an essential approach to solve conflicting transaction and scheduling problems among supply chain members. The multi-agent system (MAS) technology has provided the potential of automating supply chain negotiations to alleviate human interactions. Software agents are supposed to perform on behalf of their human owners only when equipped with sophisticated negotiation knowledge. To better organize the negotiation knowledge utilized by agents and facilitate agents’ adaptive negotiation decision making ability, an ontology-based approach is proposed in this paper. Firstly, the multi-agent assisted supply chain negotiation scheme is presented to configure the general design components of the negotiation system, covering the agent intelligence modules, the knowledge organization method and the negotiation protocol. Then, the ontology-based negotiation knowledge organization method is specified. The negotiation knowledge is separated into shared negotiation ontology and private negotiation ontology to ensure both the agent communicative interoperability and the privacy of strategic knowledge. Inference rules are defined on top of the private negotiation ontology to guide agents’ reasoning ability. Through this method, agents’ negotiation behaviors will be more adaptive to various negotiation environments utilizing corresponding negotiation knowledge.     

Fuzzy-genetic approach to aggregate production-distribution planning in supply chain management

Aggregate production-distribution planning (APDP) is one of the most important activities in supply chain management (SCM). When solving the problem of APDP, we are usually faced with uncertain market demands and capacities in production environment, imprecise process times, and other factors introducing inherent uncertainty to the solution. Using deterministic and stochastic models in such conditions may not lead to fully satisfactory results. Using fuzzy models allows us to remove this drawback. It also facilitates the inclusion of expert knowledge. However, the majority of existing fuzzy models deal only with separate aggregate production planning without taking into account the interrelated nature of production and distribution systems. This limited approach often leads to inadequate results. An integration of the two interconnected processes within a single production-distribution model would allow better planning and management. Due to the need for a joint general strategic plan for production and distribution and vague planning data, in this paper we develop a fuzzy integrated multi-period and multi-product production and distribution model in supply chain. The model is formulated in terms of fuzzy programming and the solution is provided by genetic optimization (genetic algorithm). The use of the interactive aggregate production-distribution planning procedure developed on the basis of the proposed fuzzy integrated model with fuzzy objective function and soft constraints allows sound trade-off between the maximization of profit and fillrate. The experimental results demonstrate high efficiency of the proposed method.     

Two-echelon, multi-commodity supply chain network design with mode selection, lead-times and inventory costs

Designing distribution networks - as one of the most important strategic issues in supply chain management - has become the focus of research attention in recent years. This paper deals with a two-echelon supply chain network design problem in deterministic, single-period, multi-commodity contexts. The problem involves both strategic and tactical levels of supply chain planning including locating and sizing manufacturing plants and distribution warehouses, assigning the retailers' demands to the warehouses, and the warehouses to the plants, as well as selecting transportation modes.We have formulated the problem as a mixed integer programming model, which integrates the above mentioned decisions and intends to minimize total costs of the network including transportation, lead-times, and inventory holding costs for products, as well as opening and operating costs for facilities. Moreover, we have developed an efficient Lagrangian based heuristic solution algorithm for solving the real-sized problems in reasonable computational time.