Multi-criteria robust design of a JIT-based cross-docking distribution center for an auto parts supply chain

We present a solution framework based on discrete-event simulation and enhanced robust design technique to address a multi-response optimization problem inherent in logistics management. The objective is to design a robust configuration for a cross-docking distribution center so that the system is insensitive to the disturbances of supply uncertainty, and provides steady parts supply to downstream assembly plants. In the proposed approach, we first construct a simulation model using factorial design and central composite design (CCD), and then identify the models that best describe the relationship between the simulation responses and system factors. We employ the response surface methodology (RSM) to identify factor levels that would maximize system potential.     

Response surface methodology as a means for efficient data storage and retrieval

Managing the volume of experimental and/or simulation data required for large-scale design studies can be a significant problem. This paper describes a method for dealing with this problem, using response surface methodology. The method involves (1) determining a summary parameterization of the response of the underlying process mechanism generating the data, in order to characterize this response in terms of a manageable set of performance measures, and (2) deriving a model of the data, in order to summarize the dependence of the performance measures on selected predictor or design variables. The method is illustrated by its application to a problem in vehicle collision research.     

Modeling and analysis of the causes of bullwhip effect in centralized and decentralized supply chain using response surface method

The “bullwhip” effect is a major cause of supply chain deficiencies. This phenomenon refers to grow the amplification of demand or inventory variability as it moves up the supply chain. Supply chain managers experience this variance amplification in both inventory levels and orders. Other side, dampening variance in orders may have a negative impact on customer service due to the increase in the inventory variance. This paper with simulating a three stage supply chains consisting of a single retailer, single wholesaler and single manufacturer under both centralized and decentralized chains. In this paper, it is intended to analysis the causes of bullwhip effect from two dimensions of order and inventory variance using the response surface methodology. The results show that in both supply chains, rationing factor is considered as the least important cause of bullwhip effect. While the wholesaler’s order batching and the chain’s order batching are considered as the main causes for the bullwhip effect in the decentralized and centralized chains, respectively.     

Alternative supply chain production-sales policies for new product diffusion: An agent-based modeling and simulation approach

Applying agent-based modeling and simulation (ABMS) methodology, this paper analyzes the impact of alternative production-sales policies on the diffusion of a new generic product and the generated NPV of profit. The key features of the ABMS model, that captures the marketplace as a complex adaptive system, are: (i) supply chain capacity is constrained; (ii) consumers’ new product adoption decisions are influenced by marketing activities as well as positive and negative word-of-mouth (WOM) between consumers; (iii) interactions among consumers taking place in the context of their social network are captured at the individual level; and (iv) the new product adoption process is adaptive. Conducting over 1 million simulation experiments, we determined the “best” production-sales policies under various parameter combinations based on the NPV of profit generated over the diffusion process. The key findings are as follows: (1) on average, the build-up policy with delayed marketing is the preferred policy in the case of only positive WOM as well as the case of positive and negative WOM. This policy provides the highest expected NPV of profit on average and it also performs very smoothly with respect to changes in build-up periods. (2) It is critical to consider the significant impact of negative word-of-mouth in choosing production-sales policies. Neglecting the effect of negative word-of-mouth can lead to poor policy recommendations, incorrect conclusions concerning the impact of operational parameters on the policy choice, and suboptimal choice of build-up periods.     

Evolutionary stability of auction and supply chain contracting: An analysis based on disintermediation in the Indian tea supply chains

The purpose of this paper is to show that evolutionary stable market equilibrium is achievable through complete disintermediation of auctioneers if the option of bargaining-based supply chain contracting exists. The paper analyzes the evolutionary dynamics of a market that caters both the scopes of auction-intermediation and supply chain contracting to a set of homogeneous buyers and sellers. The motivation of this work developed from the contradiction between the theoretical framework of Lu and McAfee (1996) that identifies auction to be evolutionary stable over bargaining and the real instance of sustained disintermediation of auctioneers in the world’s largest tea industry in India where supply chain contracting is the other option of trading.     

Modelling and optimization of average travel time for a metro line by simulation and response surface methodology

This research presents a modelling and solution approach based on discrete-event simulation and response surface methodology for dealing with average passenger travel time optimization problem inherent to the metro planning process. The objective is to find the headways optimizing passenger average travel time with a satisfactory rate of carriage fullness. Due to some physical constraints, traffic safety and legal requirements, vehicle speeds cannot be raised any further to decrease travel time. But travel time can be optimized by arranging headways (i.e. the time period between the departure times of two consecutive transportation vehicles) in a timetable. In the presented approach, simulation metamodels that best fit the data collected from the simulated experiments are constructed to describe the relationship between the responses (average travel time and rate of carriage fullness) and input factors (headways). Then, the Derringer–Suich multi-response optimization procedure is used to determine the optimal settings of the input factors that produce the minimum value of the average travel time by providing a proper rate of carriage fullness. This methodology is applied for a real metro line, and good quality solutions are obtained with reduced number of experiments that needed to provide sufficient information for statistically acceptable results.     

Control and system-theoretic identification of the supply chain dynamics domain for planning,analysis and adaptation of performance under uncertainty

The analysis of how to achieve planned economic performance in a real-time, uncertain and perturbed execution environment is a vital and up-to-date issue in many supply chains. Although it is intuitive that uncertainty is likely to have impacts on performance, the research on systematic terminology and quantitative analysis in this domain is rather limited as compared with the well-established domain of supply chain optimal planning. This study is among the first to address the operative perspective of the supply chain dynamics domain. The methodology of this conceptual paper is based on the business and technical literature analysis and fundamentals of control and systems theory. In contributing to the existing studies in this domain, the paper proposes a possible systemization and classification of related terminology from different theoretical perspectives, and important practical problems. For the supply chain dynamics domain, the paper identifies and groups possible problem classes of research, corresponding quantitative methods, and describes the general mathematical formulations. The results of this study may be of interest to both academics and practitioners.