Circular supply chains in emerging economies – a comparative study of packaging recovery ecosystems in China and Brazil

This paper provides a circular supply chain perspective of packaging recovery ecosystems being implemented by Tetra Pak, a prime global player in the food packaging industry, in two major emerging economies: China and Brazil. The circular supply chain archetype considered in the research allowed a consistent comparative analysis of Tetra Pak's circular supply chains in both countries. Through a case study approach, the research provides theoretical propositions and learning points that are valuable for academics and practitioners interested in the Chinese and Brazilian markets as well as in the supply chains supporting recovery ecosystems in the packaging industry. In particular, the distinct environments in the Chinese and Brazilian markets render Tetra Pak opportunities to design circular supply chains in different ways showing adaptation and learning to local market characteristics. The industrial perspectives from these emerging economies add to the contributions offered in the paper. Overall, the conceptual considerations and practical recommendations presented in the paper provide useful insights for the development of further studies and implementation of industrial practices advocated by the circular economy.     

A strategic and tactical model for closed-loop supply chains

In this paper, a strategic location-allocation model is developed for the simultaneous design of forward and reverse supply chains. Strategic decisions such as network design are accounted for together with tactical decisions, namely, production, storage and distribution planning. The integration between strategic and tactical decisions is achieved by considering two interconnected time scales: a macro and a micro time. At macro level, the supply chain is designed in order to account for the existing demands and returns, whose satisfaction is planned simultaneously at the micro level where tactical decisions are taken. A Mixed Integer Linear Programming formulation is obtained which is solved to optimality using standard Branch & Bound techniques. Finally, the model accuracy and applicability is illustrated through the resolution of a case study.     

Mapping the future of supply chain management: a Delphi study

Supply chain management, a field that developed from business practice and research, is undergoing a major transformation. It is changing from tactical in nature (where the major focus is on cost and delivery) to a field that is strategic in nature. However, the future issues and challenges facing managers and executives are just now becoming understood. This paper reports these issues by drawing on the findings generated by a three-phase study consisting of a literature review, a two-round Delphi study, and a workshop. Unique in this Delphi study is that it brings together leading practitioners in supply chain management with leading supply chain management researchers. The findings show that while the focus of the current tactical supply chain view is relatively limited to issues of delivery, risk, and leadership, the supply chain view of the future (i.e., five years from now) is more complex and demanding. The findings also show that there is generally no difference between researchers and practitioners in terms of how they view the issues. Finally, the study uncovers major obstacles that must be resolved before the strategic potential of future-state supply chains can be realised.     

Sustainable supply chain flexibility and its relationship to circular economy-target performance

The circular economy (CE) is an evolving economic and sustainable development model. In this new environment, companies face a more dynamic, uncertain, and complex market environment. These challenges arise from material closed-loop flows necessary for a functioning CE. It is important to build flexibility capabilities into sustainable supply chains to address CE operational challenges. Building this operational capability needs to occur without incurring performance degradation, increasing costs, or compromising product quality. Supply chain designers have recognised the importance of sustainable supply chain flexibility (SSCF) efforts for meeting CE-targeted performance. CE-targeted performance includes reuse of materials and energy, closed flow of materials, and pollution reduction. Exploration of relationships between SSCF efforts and CE-targeted performance is limited. An objective-DEMATEL method is used to evaluate the relationship between a new SSCF measures framework and CE-targeted performance. A field study helps to identify and refine significant SSCF measures (efforts) to effectively improve CE-targeted performance. Managerial implications and future research directions for sustainable supply chain flexibility within the CE environment are presented.     

集群式供应链大规模定制化的计划管理模式

以产业集群为平台的供应链(以下称为集群式供应链)有着基于同一产业的多单链性.多单链性和生产产品的同类性,使得集群式供应链具有进行大规模定制化生产的优势,为了实现这种优势,以时间竞争为出发点,通过中观相结合,分析了集群式供应链供应商、外包商、制造商和分销商的各环节计划管理,将集群式供应链的系统战略计划和各个企业运作计划进行有机整合起来,在此基础上给出了集群式供应链大规模定制化的主生产计划、物料需求计划和生产作业计划的分解机理.     

An adaptive framework for aligning (re)planning decisions on supply chain strategy,design, tactics,and operations

Over the last decade, a wealth of valuable approaches to supply chain strategic, tactical, and operational planning has been extensively developed. However, conventionally the planning decisions at each of these levels have been considered in isolation from the other levels. Moreover, decisions on supply chain strategy, design, tactics, and operations are interlinked and dispersed over different supply chain structures (functional, organisational, informational, financial, etc.). This study develops a framework to increase the efficiency, consistency, implacability, and sustainability of decisions on how to design, plan, and run supply chains. In this paper it is proposed that comprehensive planning as an adaptive process encapsulates the planning decisions to be interrelated at all the decision-making levels. A conceptual model is described interlinking the supply chain strategy, design, planning, and operations on adaptation principles. Subsequently, a mathematical modelling complex and its realisation in a software environment is presented. This study contributes to developing methodical basics and practical tools to transit from simple open time slots incremental planning to dynamic, feedback-based adaptive supply chain planning. The elaborated framework serves to increase the efficiency, consistency, implacability, and sustainability of decisions on supply chain strategy, design, tactics, and operations. Decisions alignment can help to increase the wealth of organisations by producing demand-corresponding products in the most cost-effective manner through increasing agility, responsiveness, reaction speed to market changes, and continuous comprehensive improvements/adaptation of supply chains.     

Supply chain network optimization considering assembly line balancing and demand uncertainty

In supply chain optimisation problems, determining the location, number and capacity of facilities is concerned as strategic decisions, while mid-term and short-term decisions such as assembly policy, inventory levels and scheduling are considered as the tactical and operational decision levels. This paper addresses the optimisation of strategic and tactical decisions in the supply chain network design (SCND) under demand uncertainty. In this respect, a two-stage stochastic programming model is developed in which strategic location decisions are made in the first-stage, while the second-stage contains SCND problem and the assembly line balancing as a tactical decision. In the solution scheme, the combination of sample average approximation and Latin hypercube sampling methods is utilised to solve the developed two-stage mixed-integer stochastic programming model. Finally, computational experiments on randomly generated problem instances are presented to demonstrate the performance and power of developed model in handling uncertainty. Computational experiments showed that stochastic model yields better results compared with deterministic model in terms of objective function value, i.e. the sum of the first-stage costs and the expected second-stage costs. This issue proved that uncertainty would be a significant and fundamental element of developed model and improve the quality of solutions.     

Supply chain optimisation with assembly line balancing

Supply chain management operates at three levels, strategic, tactical and operational. While the strategic approach generally pertains to the optimisation of network resources such as designing networks, location and determination of the number of facilities, etc., tactical decisions deal with the mid-term, including production levels at all plants, assembly policy, inventory levels and lot sizes, and operational decisions are related to how to make the tactical decisions happen in the short term, such as production planning and scheduling. This paper mainly discusses and explores how to realise the optimisation of strategic and tactical decisions together in the supply chain. Thus, a supply chain network (SCN) design problem is considered as a strategic decision and the assembly line balancing problem is handled as a tactical decision. The aim of this study is to optimise and design the SCN, including manufacturers, assemblers and customers, that minimises the transportation costs for determined periods while balancing the assembly lines in assemblers, which minimises the total fixed costs of stations, simultaneously. A nonlinear mixed-integer model is developed to minimise the total costs and the number of assembly stations while minimising the total fixed costs. For illustrative purposes, a numerical example is given, the results and the scenarios that are obtained under various conditions are discussed, and a sensitivity analysis is performed based on performance measures of the system, such as total cost, number of stations, cycle times and distribution amounts.     

Effect of firm characteristics,supplier relationships and techniques used on Supply Chain Risk Management (SCRM): an empirical investigation on French industrial firms

Recent years have witnessed a focus on managing risks in supply chains. On the one hand, there are many cases where events like natural disasters, strikes and terrorism have significantly influenced the performance of organisational supply chains and in turn their competitiveness. And on the other hand, operational activities and strategic decisions of the firms (concerning, for e.g. supply, procurement, production, delivery, commercialisation, demand management, planning, etc.) can be different than expected and so create uncertainties. Uncertainties, whether they are external or internal, impact organisations leading to increased supply chain risk. Realising the potential implications of these situations on supply chain competitiveness, an attempt has been made to define risks and their sources and to identify the management that can help reduce the negative impact of risks on supply chains. In this paper, a framework for supply chain risk management (SCRM) is proposed and is applied using the data collected from 164 French companies, in manufacturing sector. The literature review, theoretical framework and empirical research undertaken in this work have led to identifying critical success management for SCRM. The focus of this paper is the inter-organisational management of supply chain risk: the collaborative relationship (with industrial and supply partners) can be considered as an efficient way to make SCRM. The paper finishes with a summary of the findings and conclusions, along with suggestions for future research projects.     

Supply chain optimisation with U-type assembly line balancing

In supply chain optimisation problems, determining the location and number of facilities is considered at a strategic level, while mid-term and short-term decisions such as those concerning assembly policy, inventory levels, lot sizes and scheduling are handled at the tactical and operational levels. However, considering these decisions simultaneously is almost always ignored during the optimisation of distribution/production processes. The aim of the study is to optimise the supply chain network (strategic level), including manufacturers, assemblers and customers, while simultaneously balancing the U-type assembly lines (tactical level) in assemblers. A nonlinear mixed integer mathematical model is proposed to minimise the total costs and the number of assembly stations while minimising the total fixed costs of stations. To show the validity and usefulness of the proposed model, a numerical example with different scenarios and sensitivity analyses is given and discussed.     

New flexibility drivers for manufacturing,supply chain and service operations

Increasing product proliferation, customisation, competition and customer expectations, as well as supply side disruptions, pose significant challenges to firm operations. Such challenges require improved efficiency and resilience in manufacturing, service and supply chain systems. New and innovative flexibility concepts and models offer a prospective route to such operational improvements. Several emerging issues in flexibility, such as risk and uncertainty management, environmental sustainability, optimal strategies under competition, optimal operations with strategic consumer behaviours are being examined in this regard. This overview provides a concise review of these critical research issues, and discusses related papers featured in this special issue. Four major flexibility drivers are classified: disruption risks, resilience and the ripple effect in the supply chain; digitalisation, smart operations and e-supply chains; sustainability and closed-loop supply chains; and supplier integration and behavioural flexibility.     

Hybrid approach for the integrated scheduling of production and transport processes along supply chains

The rise of new information and communication technologies leads to enhanced information transparency in supply chains. In order to utilise the resulting potentials, novel scheduling approaches that are capable of processing large amounts of data and coping with dynamic disturbances of manufacturing and transport stages have to be developed. For this purpose, the paper at hand proposes a hybrid approach for the integrated scheduling of production and transport processes along supply chains. The procedure combines mixed integer linear programming, discrete event simulation and a genetic algorithm. Obtained results show a significant reduction in the number of late orders, substantiating that proper scheduling approaches combined with information visibility allow for operational improvements in manufacturing supply chains.     

Location-inventory problem in supply chains: a modelling review

A location-inventory problem (LIP) aims to integrate strategic supply chain design decisions with tactical and operational inventory management decisions. This study provides an extensive review of the existing literature of LIP modelling. A mathematical model is presented for a basic LIP, which can be further developed to incorporate additional features for use in real-world scenarios. We also discuss the evolution of LIP modelling literature over the past three decades and provide summary tables outlining characteristics of the published works including key modelling attributes and objective function cost components. Additional classifications are completed based on the solution methods adopted and real-world applications investigated. Our observations provide important insights and identify potential directions for future research in the field.     

Developing global supply chain quality management systems

This paper presents a global supply chain quality management (SCQM) framework as an extension of the traditional supply chain operations and quality management. Three distinct groups of variables are adopted in this study to illustrate the conceptual framework: a hierarchy of design variables, a hierarchy of system variables, and a hierarchy of problem solving methods. The aim of this theoretical framework is to offer practical guidelines to global business leaders and their value chain partners. This study also involves interviews with senior executives from a multinational enterprise in Taiwan. Four major SCQM themes are identified – design for six sigma (DFSS); international standards; supply chain management (SCM); global leadership and human resource management. In this study, we also view the cycle of decision making as an integral part of any global SCQM strategy. The analytic hierarchy process (AHP) is used to develop priority indices for the following three hierarchical levels: environmental scanning, strategic choice, and tactical choice. The presented framework adopts a systems approach and ensures that quality conscious products are designed, manufactured, and distributed.     

供应链中牛鞭效应的控制与弱化研究

为了弱化供应链中的牛鞭效应,本文剖析了其危害及形成机理,指出供应链的系统属性和管理运作两方面因素构成了牛鞭效应产生的主要原因,进而着眼于供应链的整体竞争力,有针对性地提出了控制牛鞭效应的系列策略,即强化战略协作及信息共享,消减供应链级数,开展敏捷管理,减少订货批量,控制安全库存,平衡库存责任和弱化最终需求的变异性.     

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.     

Assessing the impact of drop-shipping fulfilment operations on the upstream supply chain

The use of drop-shipping strategies, the practice where end-consumer orders are fulfilled directly from upstream suppliers upon a retailer’s request, has grown in popularity. Due in large part to the growth of online retailing and the increased focus on integrated omni-channel fulfilment, retailers continue to express the strategic urgency of drop-shipping operations. In a broader sense, the concept of drop-shipping represents a new and emerging aspect of the supply chain triad phenomenon, where a buyer contracts with a supplier to deliver services directly to the buyer’s customer. In order to more fully understand the operational nuances and upstream impacts of triadic service supply chain relationships, we adopt a qualitative research methodology to investigate suppliers in the service triad, a perspective that has been, to-date, under-researched. By exploring these issues in the context of the drop-shipping service triad, we more specifically shed light on the processes and operational challenges that suppliers face when assuming the bridge position in drop-shipping service triads. Therefore, this research extends the current drop-shipping literature by shifting the research focus away from retailers to suppliers; and hence, shifting the focus from strategic use of drop-shipping towards a more tactical/operational perspective by exploring those who carry out drop-shipping operations.     

Strategic,tactical and operational decisions in multi-national logistics networks: A review and discussion of modelling issues

The rapidly developing worldwide marketplace is leading to the geographical dispersion of production, assembly and distribution operations. This paper deals with three aspects of international logistics networks: strategic, tactical and operational. The strategic level designs the logistics network, including prescribing facility locations, production technologies and plant capacities. The tactical level prescribes material flow management policies, including production levels at all plants, assembly policy, inventory levels, and lot sizes. The operational level schedules operations to assure in-time delivery of final products to customers. This paper reviews the literature that deals with strategic, tactical and operational levels and discusses relevant modelling issues.     

Transition to the circular economy: the story of four case companies

Shifting from a linear sales model to a circular service-based business model is far from straightforward. Many challenges accrue in the transition process, including finding the right market for the recirculated product/service, setting up the reverse supply chain, selecting the right partners, and making sure the new business model is sustainable in the short, medium and long term. This paper discusses the challenges of four companies trying to close the loop while preserving current profit levels. It describes their initial ideas on how the circular business model should be designed, the process they went through, challenges faced, and the eventual outcome. Based on the learnings of the four case companies, we summarise recommendations about preparatory steps required before making the transition towards a circular business model.     

A technology selection framework for integrating manufacturing within a supply chain

This paper describes a structured analytical approach for selecting a manufacturing technology. A framework consisting of six integrated steps is proposed by considering the growing importance of supply chains in manufacturing organisations. The framework makes use of the analytical hierarchy process (AHP) approach combined with strategic assessment model (SAM) to evaluate and select the technologies appropriate for providing overall competitive advantage. The framework is intended to assist industrial managers in promoting manufacturing and supply chain collaboration and co-ordination by including intra-organisational perspective in their organisational technology selection decision making process.