Echelon Supply Chain System Research Articles

A structural mathematical model on two echelon supply chain system

As the people are becoming conscious about protection of the environment from pollutant caused by human beings, businesses are adopting green technology to procure green products to save the environment from pollution. Consequently, it is a challenging task at the firm manager to capture the market providing best green quality at fair price in a given economy. The paper plans to discuss two situations in two models. In model 1, the optimal green quality and sales prices of the manufacturer and the retailer in both decentralize and centralize systems of a two-echelon supply chain system are investigated. The profit functions of the manufacturer and the retailer include procurement costs, selling prices and cost for green level development and then it is analyzed by calculus method to obtain the optimal values of the decision variables. The model 2 focuses on price competition of two substitute products where demand of the end customers depends on price and quality of green product. Both the firms of green and regular products manufacturer are corporate social responsible. In this model, profit functions of the firms 1 & 2 are formulated separately considering revenues from sales items, cost of green quality and contribution for activities of social responsibility. The main objective is to find out optimal prices and green quality in order to maximize the profit functions of individual and integrated systems. The proposed models are analyzed mathematically and numerical examples are illustrated to justify the feasibility of the model in reality.

Analysis of a two echelon supply chain with merging suppliers, a storage area and a distribution center with parallel channels

This paper examines a discrete material two echelon supply chain system. Multiple reliable non identical merging suppliers send products to an intermediate storage area which can in turn feed a distribution centre with parallel identical reliable distribution channels. It is assumed that each merging supplier may have parallel identical reliable supply channels. The service rate of each supplier and each identical channel at the distribution centre is assumed to be exponentially distributed. The examined model is analyzed as a continuous time Markov process with discrete states. An algorithm that can create the system’s transition probabilities matrix for any value of its parameters is presented and various performance measures are calculated. The comparison of the proposed method with simulation showed that the proposed algorithm provides very accurate estimations of the system’s performance measures. Additionally the optimal values of the system’s parameters to optimize its various performance measures are also explored thoroughly.

A Simulation Model of a Three Echelon Supply Chain System with Multiple Suppliers subject to Supply and Transportation Disruptions

A simulation study for a three stage supply chain system with multiple suppliers subject to unexpected disruptions is presented in this paper. Two types of disruptions were considered, namely supply and transportation disruption. The objective of this study is to examine the effects of disruption on the systems’ total recovery costs and other performance measures. Various disruption scenarios were predefined by combining different disruption types and locations. Overall, transportation disruption with a damaged lot has more damaging effects to the whole supply chain compared to supply disruption, due to the higher lost sales quantity. In addition, back order quantity and recovery duration have a strong positive relationship to total recovery costs. The combined benefits of simulation and optimization have enabled an increased understanding of the impacts of random disruption events on the total system behaviour.

Three level supply chain model with variable demand rate under partial trade credit policy

In this study, we generalise a partial trade credit policy in a three echelon supply chain system involving a single manufacturer, a single distributor and a single retailer. Here the manufacturer provides a delay period to the distributor and the distributer offers less trade credit period to the retailers, and the retailer also offers the partial trade credit to his customers. Demand and production rate are considered time dependent. This article develops an integrated inventory model to determine the minimum system cost, the optimal cycle time, optimal order quantity and optimal payment time. Suitably selected numerical examples highlight the obtained results. Sensitivity analysis of the optimal solution with respect to major parameters of the system has been carried out and the implications are discussed.

Order Size Dependent Trade Credit Study in a Three Echelon Supply Chain Model

In present study, we generalize order linked trade credit policy in three echelon supply chain system where manufacturer, distributor and retailer are involved and manufacturer provide a delay period to distributor and distributor also provide a order linked trade credit policy to his retailers. Whole study is discussed in time dependent production and demand rate. We model a three echelon supply chain system as cost minimization to determine the system’s optimal cycle time. In this paper, we determine the optimal cycle time, optimal order quantity and optimal payment time. Finally numerical examples are given to illustrate the result and the managerial insights are also obtained.

A recovery mechanism for a two echelon supply chain system under supply disruption

Supply chains are becoming increasingly competitive in order to meet customer demands. The task of optimizing highly evolved supply chains is not easy, especially when it is particularly sensitive to unexpected disruption. This paper presents a newly developed real-time recovery mechanism for a two stage serial supply chain system, consisting of one manufacturer and one retailer, where the production is disrupted for a given period of time during the production up time. The model is capable of determining the recovery schedule for the manufacturer and the retailer, and ensuring that the total relevant costs are minimized, while seeking to recover the original schedule by the end of the recovery time window. The model was solved using an efficient heuristic developed in this paper, which performed well in giving quality solutions within reasonable time. It can be shown that the optimal recovery schedule is dependent on the shortage cost parameters, as well as on the extent of the disruption. The presented model is useful to assist decision makers to take a pro-active approach for maintaining business continuity in the event of a disruption in the supply chain system.

3PL-HUB Supply Chain Logistics Cost Simulation Study Based on System Dynamics

System dynamics provides a more intuitive and effective tool for system analysis in area supply chain logistics. By using method of system dynamics, this paper builds up a 3PL-HUB three echelon supply chain system from the perspective of costs, compares supply chain logistics costs variation in two cases with and without 3PL-HUB involved in, simulates logistics costs of each node enterprise, and fully analyzes the influence of 3PL-HUB on bullwhip effect and fluctuation of inventory of supply chain members. It shows that 3PL-HUB can reduce costs and benefit all the enterprises of whole supply chain, which represents a method to enhance supply chain synergy.

Pengembangan Model Consignment Stock pada Sistem Rantai Pasok Dua Eselon dengan Permintaan Berfluktuasi dan Perubahan Order Awal

Scheduling changes on the production floor are common in practice to meet the consumer demand and these cause the nervousness. The nervousness in turn will result in increased costs and reduced service level. This research deals with production batch size and buffer stock taking into account changes in a preliminary order. Change in the demand for a given day is announced one day before and this is viewed as it occurs randomly. This research was considered in two echelon supply chain system with a single supplier and single manufacturer. The development of model is transactional relationship and consignment stock contract relationship. This study also considers the backorder and production capacity according to the real condition. Numerical examples are given to demonstrate the performance of the models. From the numerical results, it appears that coefficient variation (CV) of the demand affects the results obtained using method of SM and LUC.

Optimal Ordering Policies of a Two Echelon Supply Chain for Deteriorating Items

chain management is a crucial task of managing large organizations. In a decentralized supply chain each member focuses on maximizing his own profit. As a result of it, the conflict between the manufacturer and the retailers will arise. To avoid this sort of situations, coordination model strike a balancing between the profit of manufacturers and retailers. This paper investigates a two echelon supply chain system which consisting of one manufacturer and multiple retailers. Using the mathematical modeling a coordination model which maximizes the total profit is developed and analyzed for deteriorating items. The optimal pricing and ordering policies of the model are also derived. A sensitivity analysis with respect to the parameters and costs is also presented. This model lower down the total cost of supply chain and increases the general profit. It also improves cooperation for both manufacturer and retailer.

Determination of optimal ordering quantity and reduction of bullwhip effect in a multistage supply chain using genetic algorithm

Allocating optimal ordering quantity and mitigation of bullwhip effect is one of the challenging parts in a modern multi echelon supply chain system. Genetic algorithm is used in this research to reduce the bullwhip effect and to determine optimal ordering quantity in a multistage supply chain consisting of six members. Real demand data of a manufacturing company has been used here to conduct the analyses. This research also pinpointed that genetic algorithm can be applied to reduce the cost of total supply chain. To calculate the total cost, five different costs with varying unit holding cost, in inventory cost is used for each of the members of supply chain. This paper also examines the importance of the limit set of the chromosomes of genetic algorithm and concluded that the lower range chromosomes provide a better result by reducing the total supply chain cost more than the range set in higher limit.