Supply Chain Case Research Articles

MATHEMATICAL DESCRIPTION OF THE DISTRIBUTION LOGISTICS PROCESSES OF CONSIGNMENT SELLER DIETARY SUPPLEMENT MANUFACTURING COMPANIES

Consignment sales are a special case of supply chains, as the products are never the property of the seller, so the distribution logistics network and the logic of the structure of the products are radically different from those of normal supply chains. Another problem is that the products have a shelf life. The inventory mechanism (qmin; qmax) is most often used for the commissioned stocks of companies producing food supplements and when checking the central inventory, i.e. replenishment to the maximum stock level when a certain stock level is reached. There are several factors to consider when filling up commission stocks and reviewing them by period. With the mathematical correlations of these factors, it is possible to distribute the commissioned finished products optimally. The paper deals with this problem.

Analyzing Network Model for Organic Vegetable Distribution: A Case Study of Zhengzhou City

Due to rapid population growth and increasing demand for high-quality and fresh agricultural products, it is essential to develop advanced transportation networks and distribution centers for perishable vegetables, particularly in urban areas. In this paper, a distribution center model is designed to speed up urban vegetable distribution and reduce transportation and economic costs. This paper develops an algorithm to solve the nonlinear problem and provides numerical analysis to illustrate the proposed solution. It discusses the effects of various system parameters on the decisions and total transportation cost. An improved model of the location selection for the organic vegetable distribution center and sorting center is calculated. The optimum locations of urban organic vegetables distribution center and sorting center are achieved. A real case of an agricultural product supply chain in Zhengzhou City is used to verify the model. The results of this study can serve as a reference for business administrators and managers.

Orchestrating ecosystems: a multi-layered framework

ABSTRACT Ecosystems are distinguished from other structural arrangements for value co-production by the nature of their governance and coordination challenges. As ecosystems are marked by their relative non-reliance upon formal, 1–1 supplier contracts to govern and coordinate productive activities, they need to find non-hierarchical ways of orchestrating ecosystem constituents such that a coherent system-level value offering is enabled and targeted at a defined user audience. Importantly, ecosystems cannot rely on ‘command-and-control’ governance to coordinate inputs from different participants, as would be the case of conventional supply chains. Instead, ecosystem leaders need to persuade others to make voluntary inputs that are consistent with the ecosystem’s overarching value offering. I call this task ‘ecosystem orchestration’. In this essay I suggest an ecosystem orchestration framework that distinguishes between technological, economic, institutional, and behavioural layers of ecosystem orchestration. I begin by highlighting distinctive governance challenges of ecosystems. I then provide a brief overview of the ecosystem orchestration literature. Then I introduce the different domains in which orchestration can be exercised. I conclude with a framework for orchestrating innovation ecosystems from birth to maturity. In addition to distinguishing between and describing technological, economic, institutional, and behavioural layers of ecosystem orchestration, the model also distinguishes between three stages of ecosystem momentum creation: initiation, scaling, and control. This framework has been designed to help practitioners to design strategies for ecosystem momentum creation.

A sustainable Blockchain framework for the halal food supply chain: Lessons from Malaysia

This study proposes a sustainable blockchain framework for the halal food supply chain. As is widely acknowledged, blockchain could enhance supply chain integrity, but its impacts on the halal food supply chain are unknown. Disruptive technologies for Industry 4.0 can improve transparency, which is desperately needed in the food supply chain; however, various challenges are also incurred. Based on five in-depth halal food supply chain case studies, this paper reveals a practical framework for overcoming the challenges faced by the halal food supply chain pertaining to blockchain implementation. The framework comprises five key challenges that are vital to small and medium enterprises in halal food supply chain blockchain implementation. The findings also indicate that the halal food supply chain can gain a congruent and fresh perspective in inducing or superseding blockchain technology. In addition, the roles of supply chain integration and food regulations as the key enablers on the success of blockchain technology in the halal food supply chain are also discussed in this study. Additionally, the limitations and future research directions are also discussed.

Blockchain technology development and implementation for global logistics operations: a reference model perspective

Purpose Blockchain technology offers a lot of potential benefits in supply chain management. However, there is a need of a reference model which addresses the gaps in existing frameworks. This paper aims to propose a blockchain technology-based reference model which can be applied to global logistics operations. Design/methodology/approach The researchers have integrated the fit-for-purpose theoretical framework and prototyping methodology to design the reference model, a blockchain-based logistics, tracking and traceability system (BLTTS). The researchers demonstrated the application of the reference model through a health-care supply chain case study. The proposed BLTTS can be implemented across global logistics operations for business performance improvement. Findings The research provides a framework and recommendations for global companies to consider when adopting the blockchain technology for implementation. The researchers found that the Ethereum blockchain technology improves security of the data shared within the block through the secure hashing algorithm 1. The hash algorithm ensures anonymity of the involved parties. The model integrates blockchain with supply chain thus creating transparent process, efficiency and real-time communication. Research limitations/implications The reference model will offer a better solution to global logistics operations challenges. It provides recommendations to key stakeholders involved in logistics operations segment of the logistics industry while adopting blockchain technology. Apart from the methodological limitation of the study, the system compatibility and the layer configuration aspects might be posing potential challenges while upscaling the implementation. Originality/value The proposed reference model overcomes the drawbacks of existing models as it integrates Ethereum technology. In addition, the researchers have applied the model to demonstrate its functioning in real-time environment, which could guide for future research.

Quantifying reputation risk using a fuzzy cognitive map: a case of a pharmaceutical supply chain

PurposeReputation risk onsets in focal firm whenever any entity of its supply chain (SC) faces risk-crisis event. A framework for modeling and predicting holistic SC reputation risk is proposed by integrating operational risk (OR) drivers originating from upstream and downstream partners and focal firm. A fuzzy cognitive map (FCM) is then developed to predict and quantify Pharmaceutical SC reputation risk.Design/methodology/approachUsing event study methodology, SC reputation risk framework with 13 input OR drivers was developed. Based on pharmaceutical supply chain experts’ opinion, the correlation between reputation risk and its input drivers was estimated. The developed FCM tool was validated using nine real-life instances. A series of “what-if” scenario analyses were performed to demonstrate effectiveness of proactive and reactive mitigation strategies against reputation risk.FindingsQuality and unethical governance risks significantly impacted reputation in Pharmaceutical SC and a firm should prefer “risk avoidance” against these risks. The upstream risks significantly affect reputation in a Pharmaceutical SC as compared to the downstream risks. Proactive mitigation strategies and assertive crisis communication are suggested for upstream risks while diminishment/ bolstering/rebuilding reactive crisis communication is recommended for downstream risks.Originality/valueReputation risk is often overlooked in SC literature. This work develops a model to quantify the reputation risk considering the indirect consequences of the ORs that originates at any point in a SC. The proposed FCM tool aids SC manager to focus on higher attribution risk events and devise an optimal combination of proactive and reactive mitigation strategies to avoid/minimize the economic loss due to reputation crisis.

Integration of product architecture and supply chain under currency exchange rate fluctuation

Various studies have discussed the coordination of product and supply chain design decisions for global supply chain management. However, the impact of currency exchange rate uncertainty on the selection of product architectures and their suppliers has not been sufficiently addressed. As a response, this study proposes a two-stage stochastic optimization model in which the first stage determines the product architecture, and the second stage identifies suppliers for the modules and components in an optimal fashion based on the product architecture and uncertain currency exchange rates. The overall objective of two-stage stochastic programming is to determine the optimal product architecture that minimizes the expected total supply chain cost over uncertain currency exchange rate scenarios. The proposed model is applied to a bicycle supply chain case study for three global marketplaces associated with multiple currency exchange rates. The results demonstrate that optimal product architecture and its suppliers should be varied based on currency exchange rates and their uncertain fluctuation levels. Also, a product architecture for the supply chain of each marketplace maintains its optimality in the total supply chain cost, up to a specific exchange rate. The findings show the importance of joint integration between product and supply chain design when considering currency exchange rates. Additionally, the benefit of stochastic modelling is demonstrated by comparing the solution quality of the model with its deterministic counterpart.

When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes

This study investigates a ‘dark-side’ of supplier–buyer relationships, specifically the links between supplier development initiatives, relational norms and supplier opportunism, utilizing thematic analysis and qualitative comparative analysis. While buyers often employ supplier development initiatives to improve procurement, they can be ineffective and stimulate opportunistic behaviour by suppliers. Drawing on the case of agri-food supply chains in Vietnam, the paper analyses the relationships between specific supplier development initiatives and forms of opportunism, considering the role of relational norms. While often regarded as reducing the likelihood of opportunism, this study identifies that relational norms may include norms of opportunism in supply chain relationships, which sanction a degree of opportunistic behaviour. The study contributes to supply chain management theory and practice by investigating how buyers can address opportunism, so that supplier development initiatives curb supplier opportunism rather than trigger it.

Logistics network configuration for seasonal perishable food supply chains

Purpose: The location of actors and production, transformation, commercialization and distribution facilities generate the configuration of the perishable food supply chain (PFSC). The logistics network design (LND) lead to different supply, storage and distribution environments and result in flows, these logistics operations have an impact on the performance of the chain of fresh agricultural products. Specifically, in the PFSC with seasonality, a temporary imbalance between supply and demand is generated, which affects the balance in the flows and affects the losses, costs and response capacity. This research study that problem.Design/methodology/approach: A multi-echelon, multi-objective and multi-product model is established that determines the configuration of the logistics network of the PFSC with seasonally and allows actors to approach efficiency frontiers, which contribute to their permanence in the markets. The model was applied to the case of the perishable fruit supply chain, in a developing country, Colombia. The population information was taken from government surveys and studies, which allowed parameterizing the model.Findings: The application of model permitted to answer the next questions: How does improve the performance from PFSC through logistics network design? And, How the existence of smallholdings in food production and from retail merchants is preserved? In the perishable food supply chain.Social implications: Where the perishable food supply chain actors are located in non-efficient borders and their sustainability may be affected by competition factors, the stakeholders should focus on increasing food availability and reducing losses to improve access and therefore food security.Originality/value: A new model for the logistics network configurations of seasonal perishable fruit supply chain was development, the optimizing from five objectives with two sub-models is obtained, one for surplus and the other for the deficit moments. The model includes real conditions, such as, fruit loss due T0 and RH by different thermal floors and the means used for the transport of fruits in mountain areas at countries in route of development. The impact over the small producers, retailers and consumers in the times of scarcity or surplus was analyzed.

Designing a Transportation-Strategy Decision-Making Process for a Supply Chain: Case of a Pharmaceutical Supply Chain.

Including an active participation of stakeholders along the transportation decision-making process is increasingly recognized as a necessary condition for reaching successful and high-quality decisions. This paper presents a framework for deciding on the appropriate transportation strategy for a supply chain from a multistakeholder perspective. It consists of three steps: (1) defining the transportation-strategy decision-making context and the objectives that must be achieved; (2) analyzing the actual transportation strategy regarding its three components: transportation network; transportation mode; and transportation insource/outsource, as well as identifying the stakeholders interested in the study; and (3) conducting a group decision making regarding each transportation strategy’s component, while involving the key stakeholders and taking into account the specificities of transported products. The proposed framework is then applied to a real case of the Moroccan public pharmaceutical supply chain, which has different features that distinguish it from other supply chains including its importance, urgency, and regulation. We employed the DELPHI method to determine the key stakeholders that should be involved in the decisional process. After that, we applied the group AHP method for selecting the appropriate transport-network design option while involving the identified key stakeholders.

A New Multi Objective Mathematical Model for Relief Distribution Location at Natural Disaster Response Phase

Every year, natural disasters such as earthquake, flood, hurricane and etc. impose immense financial and humane losses on governments owing to their unpredictable character and arise of emergency situations and consequently the reduction of the abilities due to serious damages to infrastructures, increases demand for logistic services and supplies. First, in this study the necessity of paying attention to locating procedures in emergency situations is pointed out and an outline for the studied case of disaster relief supply chain was discussed and the problem was validated at small scale. On the other hand, to solve this kind of problems involving three objective functions and complicated time calculation, meta-heuristic methods which yield almost optimum solutions in less time are applied. The EC method and NSGA II algorithm are among the evolutionary multi-objective optimization algorithms applied in this case. In this study the aforementioned algorithm is used for solving problems at large scale.

Integrating ESG Measures and Supply Chain Management: Research Opportunities in the Post-Pandemic Era

The COVID-19 pandemic has highlighted the instrumental role of supply chains in delivering economic, human, and societal value. At the same time, the pandemic has intensified interest among businesses, governments, and academics to examine environmental, social, and governance (ESG) issues. In today’s hyper-globalized economy, ESG measures are futile unless they explicitly incorporate a firm’s end-to-end operations throughout its entire supply chain. On the other hand, well-calibrated ESG measures should play a central role in guiding a firms’ day-to-day supply chain management practices. To illustrate the value of unifying ESG and end-to-end supply chain thinking, we present three supply chain cases that arose amid the COVID-19 pandemic, involving online platforms, public health supply chains, and vaccine development, manufacturing, and distribution, respectively. Drawn from these three cases, we spotlight some new research opportunities in both ESG and supply chain management.

Implementation of a Multi-Objective Working Capital Management Strategy for Financial Supply Chains

The issue of adequate application of quantitative supply chain (SCF) solutions for cooperative working capital management becomes more and more important in terms of globalization and growing competition between supply chains (SCs). Authors address the problem by developing models for cooperative working capital management (WCM) through SCF adoption for the case of the three-stage supply chain. The grounding for the optimization is multicriteria approach. The multi-objective working capital optimization model (Ivakina et al., 2021) allows to nd optimal solution regardless initial financial and liquidity position of SC. In the article, we use this model to quantitatively implement a multi-objective working capital management strategy on the cases of real supply chains. The results obtained in the paper indicate that the model of working capital optimization with concurrent use of multiple supply chain finance solutions can provide an optimal solution for all the cases considered in the research. It allows to decrease the total financial costs on working capital and supply chain finance solutions making individual ones not worse and at the same time achieve greater liquidity.

The Multi-Objective Model of Working Capital Optimization

In recent years, the topic of supply chain finance has gained a lot of attention from academia, but still, there are a lot of unexplored areas. For example, the literature demonstrates a clear gap of adequate application of numerous supply chain finance solutions for collaborative working capital management (Gelsomino et al., 2019). This issue becomes more and more important, specifically in terms of globalization and growing competition between supply chains when liquidity and profitability improvement is of paramount relevance. Companies focusing on their individual supply chain issues and taking their own interests into account rather than understanding the whole supply chain and collaborating with their partners are missing fruitful areas for improvements (Wuttke et al., 2016). The authors address this gap by developing a model for collaborative working capital management through supply chain finance adoption for the case of the three-stage supply chain. At the same time, the process of working capital optimization is received as a multi-objective problem. The results obtained indicate that the model of working capital optimization with concurrent use of multiple supply chain finance solutions is able to provide an optimal solution for all the cases considered in the research. It allows to decrease the total financial costs on working capital and supply chain finance solutions making individual ones not worse and at the same time achieve greater liquidity.

Centralized and distributed optimization models for the multi-farmer crop planning problem under uncertainty: Application to a fresh tomato Argentinean supply chain case study

Imbalance between supply and demand of crops frequently occurs in markets originating an excess or shortage of supply in relation to demand. This causes high volatility and uncertainty in market prices, unmet demand, and waste, especially for fresh crops due to their limited shelf-life. This imbalance is mainly due to the inherent uncertainty present in the agricultural sector, the perishability of fresh crops, and the lack of coordination among farmers when making planting and harvesting decisions. Despite farmers usually plan the planting and harvesting in an individual way, there is a scarcity of research addressing the crop planning problem in a distributed manner and, even less, assessing their impact on the supply chain (SC) as a whole. In this paper, we developed a set of novel mathematical programming models to plan the planting and harvest of fresh tomatoes under a sustainable point of view for multi-farmer supply chains under uncertainty in different decision-making scenarios: i) distributed, ii) distributed with maximum and minimum land area constraints to be planted for each crop, iii) distributed with information sharing, and iv) centralized. Then, for each distributed scenario, the individual solution per farmer as regards the planting and harvesting decisions per crop are integrated to obtain the overall supply to satisfy the markets demand. This allows the assessment of the farmers’ real performance and the impact of their individual decisions to the entire SC performance. We also compare the results obtained for each scenario with the centralized model in terms of economic, environmental, and social impact. The experimental design shows that, when integrating the solutions for the whole SC, significant differences between planned and real results are obtained in each scenario as regards the gross margin per hectare, unmet demand, waste, and unfairness between farmers, being the distributed model with information sharing the most similar to the centralized one. The results show that uncertainty consideration in models improves the gross margin and the unfairness among farmers in all scenarios for both, planned and real evaluation.

The assessment of collaboration quality: a case of sugar supply chain in Indonesia

PurposeThis paper aims to evaluate the collaboration quality performance of sugar company Z and its stakeholders (farmers and distributors) by considering the sustainability aspects. This assessment shall be able to integrate qualitative and quantitative factors in the model, which is critical in sugar supply chains involving multi-stakeholders.Design/methodology/approachIntegration of quality function deployment (QFD), the fuzzy analytical network process (FANP) and the data envelopment analysis (DEA) is administered to assess the efficiency score of each stakeholder involved. The evaluation encompasses collaboration behaviour factors since the input of collaboration activities will result in sustainability aspects such as revenue, green house gas (GHG) emissions and social impact. The analysis has been conducted in two scenarios, those are the basic scenario by utilising original data and the extended scenario by using projection data.FindingsThe result clarifies that the most influential behaviour factor in the collaboration activities is commitment (0.116), while the least important behaviour factors are power (0.008) and adaptation (0.008). Furthermore, by using the extended scenario, the overall efficiency for each benchmarking is higher compared to the condition before the improvement (basic scenario).Research limitations/implicationsThe result of this study is only relevant to the particular sugar supply chain and involving limited sustainability variables. Therefore, in a further study, more variables such as technical and financial aspects could be explored further in the assessment process.Practical implicationsThe result of this study is available for each stakeholder and can be fundamental for the constant improvement in sustainable supply chain (SSC) practices. It shows that an improvement of one stakeholder will positively impact the entire system.Social implicationsSmallholders and sugarcane farmers will recognise the significance of collaboration behaviour. Thus, they can enhance their mutual benefits by using the existing resources.Originality/valueThis paper arranges for a practical contribution by implementing advanced assessment methods in the sugar supply chain by taking into account the economic, environmental and social aspects. This comprehensive assessment process in the sugar supply chain is the novelty of this paper.

Fuzzy set theory-based comparative evaluation of cloud service offerings: an agro-food supply chain case study

ABSTRACT IT has unarguably become a technology pillar for companies operating in highly competitive markets, characterised by shrinking margins. A typical example is the flexible manufacturing domain, where effective management of IT is the enabling factor of competitiveness. The challenge for these companies is achieving effective IT management at low costs. In this context, cloud computing is an extremely promising paradigm. However, unleashing this potential is not a trivial task, since it requires the ability to evaluate the pros and cons of a wide range of technologies and commercial offerings from a multitude of angles. In this paper, we propose an approach based on fuzzy set theory for enabling a group of companies to select the most convenient cloud offering available on the market. The approach is presented with respect to a real case study in the flexible manufacturing domain, specifically of agro-food industries.

Understanding Humanitarian Supply Chain Through Causal Modelling

Research Questions: Does being in the social welfare slow-onset disaster quadrant help in garnering resources during the sudden disaster? Theory: Humanitarian supply chain has been traditionally explained as a system involved in mobilizing people, resources, skills and knowledge for disaster relief operations. The established classification of disasters includes natural and man-made disasters. These are further classified into sudden- and slow-onset disasters. Social welfare supply chains happen to be a distinctive type of humanitarian supply chain working in slow-onset disasters such as poverty and drought. To understand the complex systems like humanitarian supply chain, system dynamics modelling is used. Type of the Case: Study of a phenomenon. Basis of the Case: In this study, we proposed a humanitarian supply chain case and system dynamics model that works as a social welfare supply chain. In the face of a calamity, operations are ramped up for the sudden-onset conditions. After the initial phase is over, operations are ramped down and again become stable. Protagonist: Absent. Findings: The study tests the results of four policy measures (a) increasing goodwill, (b) decreasing stringent directive, (c) increasing donor attitude and (d) a combination of all of these measures. These measures are additive in nature, and a humanitarian supply chain can use these policy measures to respond to a sudden disaster. Discussions: The case discusses various policy measures taken by the humanitarian supply chain during a sudden disaster. It also explores whether being in the slow-onset quadrant helps tack sudden disasters like earthquakes or terrorist attacks. An organization can start with decreasing the stringent measures in the case of a sudden disaster. Increasing donor attitude and goodwill requires long-term outreach efforts.

On publicness theory and its implications for supply chain integration: The case of criminal justice supply chains

The literature has extensively discussed whether and how public organizations differ from private ones. Publicness theory argues that the degree of publicness is determined by ownership, funding, goal setting, and control structure of an organization. However, these theoretical ideas have not yet been extended to the interorganizational level. The need for further research is reflected in the sustained debate on the applicability of for‐profit management approaches in public contexts and supply chains. Starting from the premise of the dimensional publicness theory, this study focuses on theory elaboration. We focus our empirical study on the criminal justice supply chain, which encompasses the process of bringing a criminal case to court. This chain provides an interesting public case to explore how specific dimensions of publicness affect or limit supply chain integration mechanisms. The results of our series of embedded cases focusing on Dutch criminal justice supply chains show that control structures, embodied in laws and regulations, define the governance of relationships between supply chain partners. In addition to these formalized ties, extensive known for‐profit information and operational integration mechanisms can be observed, along with limited relational integration. Surprisingly, although similar integration mechanisms are used as in for‐profit contexts, integration serves a different role in several of the relationships investigated: dealing with tensions stemming from the specific goal setting and stakeholders of criminal justice chains. Although our findings specifically relate to criminal justice supply chains, they have important implications for other supply chains using contracts and laws and those being selective in applying supply chain integration in cases of contrasting objectives. Moreover, we provide a stepping‐stone for the extension of publicness theory to the interorganizational level.

A real-time decision support framework to mitigate degradation in perishable supply chains

Perishable products are highly susceptible to degradations in quality due to unstable environmental conditions. From an operations management perspective, retailers may be left with spoiled products with no salvage value. To mitigate these challenges, we develop a step-by-step analytical framework that enables managers to make dynamic tactical decisions for perishable products, to preserve their quality as they move through a supply chain network. First, by identifying key quality indicators and environmental factors, a data-driven quality degradation prediction model under a stochastic environment is established. The combined impact of volatile environmental factors on various quality indices are studied. Next, we utilize this degradation model as an input to a preliminary planning model, which determines a vehicle routing schedule and inventory quality targets throughout the network at least cost, subject to retailer service levels. Lastly, using the optimized supply chain network design, we dynamically optimize the environmental controls throughout the transportation process to ensure product quality. By applying this framework to a fresh apple supply chain case, we obtain valuable insights on product quality degradation along the supply chain, which aids practitioners in developing targeted solutions that enhance quality levels economically. With extended analyses, we observed the reaction of different quality indices to environmental variations, and the benefits brought by establishing initial environment conditions in delivery vehicles.