• Title/Summary/Keyword: Efficiency of Supply Chain

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Purchasing and Inventory Policy in a Supply Chain under the Periodic Review: A Single Manufacturer and Multiple Retailers’ Case

  • Prasertwattana, K.;Chiadamrong, N.
    • Industrial Engineering and Management Systems
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    • v.3 no.1
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    • pp.38-51
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    • 2004
  • Over the years, most or many companies have focused their attention to the effectiveness and efficiency of their business units. As a new way of doing business, these companies have begun to realize the strategic importance of planning, controlling, and designing their own supply chain system. This paper analyzes the coordination issues in supply chains that consist of one manufacturer and multiple retailers operating under uncertain end customer demand and delivery lead-time. We use the Genetic Algorithm (GA) to determine the appropriate ordering and inventory level at which the manufacturer and multiple retailers can maximize the profit of the chain. This is performed under three controlling policies: the traditionally centralized controlling policy under the manufacturer's perspective, the entire chain’s perspective, and lastly the coordinating controlling policy with an incentive scheme. The outcome from the study reveals that the coordinating controlling policy with an incentive scheme can outperform the traditional centralized controlling policies by creating a win-win situation in which all members of the chain benefit from higher profit, thus resulting in more willingness from all members to join the chain.

A Study on the Potential and Requirements in Shipping Companies with RFID Technology

  • Lee Seok-Yong;Kim Yu-Ill;Seo Chang-Gab;Park Nam-Kyu
    • Journal of Navigation and Port Research
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    • v.30 no.2
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    • pp.151-159
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    • 2006
  • This study intends to surveyrequirements for port and logistics supply chain management with RFID {Radio Frequency IDentification)technology. Port and logistics supply chain management has become a critical issue due to the necessity of efficiency, visibility, trace-ability, etc. Since the introduction of RFID technology, its performance, reliability, validity, and safety have been a concern in most industries. Particularly, in port and logistics supply chain management, RFID has the potential to track the movement of containers and to provide in-transit visibility toward customers. In thispaper we consider some critical issues related to port and logistics supply chain management, which previously adopted RFID technology. In order to successfully design and adopt RFID technology and utilize it as optimally as is possible in the port and logistics industry, it is necessary to understand the potential of shipping companies and their requirements in adopting RFID technology in port and logistics.

Integrating Blockchain and Digital Twin for Smart Warehouse Supply Chain Management (스마트 웨어하우스 공급망 관리를 위한 블록체인과 Digital Twin의 통합)

  • Keo Ratanak;Muhammad Firdaus;Kyung-hyune Rhee
    • Proceedings of the Korea Information Processing Society Conference
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    • 2023.05a
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    • pp.273-276
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    • 2023
  • This paper presents the integration of Digital twin and Blockchain-based Supply Chain Management (DB-SCM) in a smart warehouse to create a more efficient, secure, and transparent facility. The process involves creating a digital twin of the warehouse using sensors and IoT devices and then integrating it with a blockchain-based supply chain management system to connect all stakeholders. All data are collected and tracked in real-time as goods move through the warehouse, and smart contracts are automatically executed to ensure accountability for all parties involved. The study also highlights the critical role of effective supply chain management in modern business operations and the significance of smart warehouses, which leverage advanced technologies such as robotics, AI, and data analytics to optimize warehouse operations. Later, we discuss the importance of digital twins, which allow for creating a virtual representation of a physical object or system, and their potential to revolutionize a wide range of industries. Therefore, DB-SCM offers numerous benefits, including enhanced efficiency, improved customer satisfaction, and increased sustainability, and provides a valuable case study for organizations seeking to optimize their supply chain operations.

Food Delivery Applications Becoming Alligator of Hotel Supply Chain: An Empirical Analysis

  • HONG, Juhea;KANG, Eungoo
    • Journal of Distribution Science
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    • v.20 no.9
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    • pp.97-107
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    • 2022
  • Purpose: Online-To-Offline Food Delivery Services (O2O-FDS) is a new element in hotel supply chain that digitalizes traditional food delivery practices using new technologies. Targeting hotel guests, the present research is to explore the role of trust in the relationship between food delivery app on loyalty, price efficiency, and convenience. This new perspective is an essential value addition in the field of hotel marketing in relation to O2O-FDS. Research design, data and methodology: The present research conducted the mediator variable regression analysis as a main statistical methodology to identify the connections between three main constructs using total 244 South Korean participants that were recruited from the professional research company in Korea. Results: The statistical findings based on three steps of mediator regression approach strongly indicate that the trust of food delivery app in the hotel sector plays a moderating role in the relationship between price efficiency and convenience of food delivery app and customer loyalty of food delivery app in the hotel business. Conclusions: This research concludes that hotel practitioners must strive to provide adequate information on food delivery applications in order to increase price efficiency and convenience relative to traditional food and beverage services, influencing consumer trust in food delivery technology.

A Study on logistics Performance Index andSupply Chain Tracking Data during the Covid-19 Pandemic (Covid-19 팬데믹시기 물류성과지수와 공급망 추적 데이터에 대한 고찰)

  • Ahn, TaeKun
    • Journal of Korea Port Economic Association
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    • v.39 no.3
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    • pp.191-210
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    • 2023
  • The Covid-19 pandemic has had a significant impact on global logistics and supply chains, leading to major discrepancies in logistics performance across countries worldwide. Through an examination of logistics performance index and supply chain tracking data, this study aimed to identify the changes in global supply chains and logistics environments during the pandemic. The analysis of the logistics performance index showed that overall, countries around the world, especially developed nations, showed improvements in metrics such as customs and border management efficiency, the quality of trade and transport infrastructure, capability and quality of logistics services, and cargo tracking abilities. However, the competitive pricing feasibility of international transportation and the on-time delivery frequency of goods saw a decline due to the pandemic's effects. The supply chain tracking data revealed that ports in Asian countries demonstrated high processing efficiency. In contrast, the U.S. and European countries took comparatively more time. Particularly for air cargo, parcels, and express shipments, the U.S. showed relatively longer processing times, leading to logistical delays. In conclusion, during the Covid-19 pandemic, Asian countries maintained relatively high efficiency in their logistics and trade environments. Conversely, the U.S. and some European countries showed delays and decreased efficiency in various metrics. In the future, efforts should be made to address delays and congestion, namely, the deceleration of logistics processes.

Bullwhip Effect Minimization vs. Cost Minimization in Supply Chain (공급사슬에서 채찍효과 최소화 대 비용 최소화)

  • Cho, Myeon Sig
    • Journal of the Korea Society for Simulation
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    • v.22 no.2
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    • pp.41-51
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    • 2013
  • Tendency for small changes in end-consumer demand to be amplified as one moves further up the supply chain is known as bullwhip effect (BE). BE is usually defined as variance(order)/variance(demand). Since such distorted information throughout the supply chain can lead to inefficiencies, many studies to reduce variance(order) have been performed. However, in this study, we show that minimization of BE may increase inefficiencies of the supply chain. We introduce a new objective function to increase system efficiency using smoothed ordering policies. Simulation optimization is utilized to find optimal smoothed ordering policies.

SUCCESS FACTORS FOR JIT MANAGEMENT OF PRIMARY COMMODITY SUPPLY CHAINS IN AUSTRALIA

  • Kim Tae Ho;Wegener Malcolm
    • Journal of the Korea Safety Management & Science
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    • v.6 no.3
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    • pp.141-152
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    • 2004
  • Supply chains for agricultural commodities with their various constraints such as production lead time, seasonal production, and methods of storage are limited in the extent to which techniques like Just-in-Time (JIT) inventory management can be applied. It is beyond the ability of producers to control harvest time and many agricultural products are perishable so that they can incur exceptional losses in storage if they are not handled correctly. This is a source of additional costs and inefficiency in supply chain management. The purpose of this study is to reduce or eliminate such sources of loss and inefficiency and to identify success factors for the JIT inventory management system where it can be applied for agricultural products. Where JIT techniques can be applied in supply chain management for agricultural products, costs such as transportation, inventory, and storage losses can be reduced with concurrent increases in efficiency. In the paper, some of the problems associated with applying JIT inventory control methods in supply chain management for agricultural commodities will be reported through a series of case studies.

SUCCESS FACTORS FOR JIT MANAGEMENT OF PRIMARY COMMODITY SUPPLY CHAINS IN AUSTRALIA

  • Kim, Tae-Ho;Malcolm Wegener
    • Proceedings of the Safety Management and Science Conference
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    • 2004.05a
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    • pp.191-201
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    • 2004
  • Supply chains for agricultural commodities with their various constraints such as production lead time, seasonal production, and methods of storage are limited in the extent to which techniques like Just-in-Time (JIT) inventory management can be applied. It is beyond the ability of producers to control harvest time and many agricultural products are perishable so that they can incur exceptional losses in storage if they are not handled correctly. This is a source of additional costs and inefficiency in supply chain management. The purpose of this study is to reduce or eliminate such sources of loss and inefficiency and to identify success factors for the JIT inventory management system where it can be applied for agricultural products. Where ]IT techniques can be applied in supply chain management for agricultural products, costs such as transportation, inventory, and storage losses can be reduced with concurrent increases in efficiency. In the paper, some of the problems associated with applying ]IT inventory control methods in supply chain management for agricultural commodities will be reported through a series of case studies.

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A Process Reference Model Development for RFID/USN Technologies based Next Generation Intelligent Construction Supply Chain Management (RFID/USN기술 기반의 차세대 지능형 건설물류관리 프로세스 레퍼런스 모델)

  • Lee, Woo-Jae;Shin, Tae-Hong;Yoon, Su-Won;Chin, Sang-Yoon;Kwon, Soon-Wook;Kim, Yea-Sang
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2008.11a
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    • pp.305-310
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    • 2008
  • A lot of changes are required in a management method of a project because the character of construction projects gets bigger and higher gradually. Especially, for the efficiency of the management method the plans of various viewpoints focused on the construction supply chain field that the technical application of Ubiquitous Technologies such as RFID/USN is being advanced actively are presented. Recently, the introduction of the intelligent equipment which is developed for intelligence of construction site requires the new process model in the construction supply chain management on the construction site. Therefore, this study is to propose the intelligent construction supply chain reference model development in order to provide the guide that the numerous materials for construction could easily be applied in the changed process, as mentioned above, by overcoming the limit of the existing construction supply chain process which is proposed as bar codes and RFID/USN based individual material types and reflecting the change factors like the intelligent equipment of construction supply chain management.

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A Study on Integrated Production Planning of Distributed Manufacturing Systems on Supply Chain (공급사슬상의 분산 제조 시스템의 통합생산계획에 관한 연구)

  • Koh, Do-Sung;Yang, Yeong-Cheol;Jang, Yang-Ja;Park, Jin-Woo
    • IE interfaces
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    • v.13 no.3
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    • pp.378-387
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    • 2000
  • As the globalization of manufacturing companies continues, the scope of dependence between these companies and distributors, and other suppliers are growing very rapidly since no one company manufactures or distributes the whole product by themselves. And, the need to increase the efficiency of the whole supply chain is increasing. This paper deals with a multi-plant lot-sizing problem(MPLSP) which happens in a decentralized manufacturing system of a supply chain. In this study, we assume that the whole supply chain is driven by a single source of independent demand and many levels of dependent demands among manufacturing systems in the supply chain. We consider setup cost, transportation cost and time, and inventory holding cost as a decision factor in the MPLSP. The MPLSP is decomposed into two sub-problems: a planning problem of the whole supply chain and a lot-sizing problem of each manufacturing system. The supply chain planning problem becomes a pure linear programming problem and a Generalized Goal Decomposition method is used to solve the problem. Its result is used as a goal of the lot-sizing problem. The lot-sizing problem is solved using the CPLEX package, and then the coefficients of the planning problem are updated reflecting the lot-sizing solution. This procedure is repeated until termination criteria are met. The whole solution process is similar to Lagrangian relaxation method in the sense that the solutions are approaching the optimum in a recursive manner. Through experiments, the proposed closed-loop hierarchical planning and traditional hierarchical planning are compared to optimal solution, and it is shown that the proposed method is a very viable alternative for solving production planning problems of decentralized manufacturing systems and in other areas.

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