Dilupa Nakandala

A fuzzy-based decision support model for monitoring on-time delivery performance : a textile industry case study

This paper investigates uncertainties in complex supply chain situations and proposes a fuzzy-based decision support model for determining the chance of meeting on-time delivery in a complex supply chain environment. It integrates fuzzy logic principles and unitary structure-based supply chain model and enables addressing uncertainties associated with key inputs of on-time delivery performance for effective decision making process. The proposed pragmatic model deals with the fuzziness of the key inputs including, variations in demand forecasting, materials shortages and distribution lead time, and combines a fuzzy reasoning approach for monitoring on-time delivery of finished products. In systematically dealing with the uncertainties of complex supply chains, this model supports the minimizing of business losses that result from penalties and customer dissatisfaction, and the consequent reduced market share. Application of the proposed model is illustrated using a textile industry case study.

Cost-optimization modelling for fresh food quality and transportation

Purpose – All along the length of the supply chain, fresh food firms face the challenge of managing both product quality, due to the perishable nature of the products, and product cost. The purpose of this paper to develop a method to assist logistics managers upstream in the fresh food supply chain in making cost optimized decisions regarding transportation, with the objective of minimizing the total cost while maintaining the quality of food products above acceptable levels. Design/methodology/approach – Considering the case of multiple fresh food products collected from multiple farms being transported to a warehouse or a retailer, this study develops a total cost model that includes various costs incurred during transportation. The practical application of the model is illustrated by using several computational intelligence approaches including genetic algorithms (GA), fuzzy genetic algorithms (FGA) as well as an improved simulated annealing (SA) procedure applied with a repair mechanism for efficienc...

A pragmatic stochastic decision model for supporting goods trans-shipments in a supply chain environment

This paper develops a set of decision rules to assist wholesalers to decide whether it is more cost effective to trans-ship urgent outstanding retailer orders from other wholesalers, very fast but at a higher purchase cost, or to order from their suppliers. By considering the uncertainty in demand, it models the total cost encountered by wholesalers, including purchasing, backordering and holding costs in the inventory replenishment process. Unlike previous models that are complex, highly mathematical and difficult to apply, this model provides a pragmatic and less complex method adoptable by ordinary logistics managers and requires input data that are accessible from the previous transaction records of an organization. The application of the proposed decision rules are illustrated considering different scenarios of wholesaler-supplier combinations.

A novel approach to determining change of caloric intake requirement based on fuzzy logic methodology

Obesity is a global epidemic. Decisions related to the consumption of high calorific food are critical because many serious health risks are associated with being overweight and obesity. This article presents a novel approach to determining the caloric intake requirement using fuzzy logic principles. The proposed fuzzy methodology effectively deals with the fuzziness of the data and subjective judgments of the persons level of physical activity, body mass index and age. The method of converting the crisp inputs to fuzzy sets, rule firing and defuzzifying the outputs of the fuzzy inference engine to a linguistic value, is illustrated with an example. The proposed methodology is important in practical terms in responding to dynamic life and work styles and related factors in todays society.

Development of a hybrid fresh food supply chain risk assessment model

Supply chain managers and scholars recognise the importance of managing supply chain risk, especially in fresh food supply chain due to the perishable nature and short life cycle of products. Supply chain risk management consists of supply chain risk assessment, risk evaluation and formulation and implementation of effective risk response strategies. The commonly adopted qualitative methods such as risk assessment matrix to determine the level of risk have limitations. This paper proposes a hybrid model comprising both fuzzy logic (FL) and hierarchical holographic modelling (HHM) techniques where risk is first identified by the HHM method and then assessed using both qualitative risk assessment model (named risk filtering, ranking and management Framework) and fuzzy-based risk assessment method (named FL approach). The risk assessment results by the two different approaches are compared, and the overall risk level of each risk is calculated using the Root Mean Square calculation before identifying response strategies. This novel approach takes advantage of the benefits of both techniques and offsets their drawbacks in certain aspects. A case study in a fresh food supply chain company has been conducted in order to validate the proposed integrated approach on the feasibility of its functionality in a real environment.

A lateral transshipment model for perishable inventory management

Since inventory costs account for half of logistics costs, optimal inventory management to minimise total inventory costs remains a sustainable competitive advantage. Lateral transshipment (LT) is evidently a proven strategy to minimise total inventory costs. The additional LT costs are more than compensated by lowering the stock-out costs. Previous LT models have not been applied to perishable products. Our proposed LT model embodies spoilage costs in the total inventory costs function with the other cost components (purchase from a regular supplier, LT, backordering and holding), and optimises the trade-off among these five key cost components. Numerical examples from a supermarket chain case study demonstrate that, as compared against the no or lower spoilage costs scenarios, lower LT costs are required to trigger the decision point for implementing LT in the higher spoilage costs scenario. However, common to both the with and without spoilage costs scenarios, LT is still the preferred strategy to minimise total inventory costs, given the decision rules are satisfied.

Modelling information flow and sharing matrix for fresh food supply chains

Despite much research on supply chain (SC) integration and the growing emphasis on recent information technology advancements as an enabler of improved performance, there has been limited research focussed specifically on information integration in supply chains (SCs). The purpose of this paper is to systematically review the literature on information integration in the fresh food supply chain (FFSC) from a holistic perspective.,Literature review is done by systematically collecting and analysing the recent literature to identify various participant entities of the FFSC information network and their specific information needs.,The information needs of FFSC entities are diverse but the needs are common across multiple entities.,This study only reviewed the FFSC-related literature; an extended study of the food industry may reveal a more comprehensive view.,These findings are useful for practitioners in understanding the participant entities in the information network and their information needs and for policymakers in formulating FFSC development initiatives.,The authors are not aware of another study that investigates the FFSC in a holistic approach, one that identifies the actors, their interactions and information needs.

A CASE-BASED ROADMAP FOR LATERAL TRANSSHIPMENT IN SUPPLY CHAIN INVENTORY MANAGEMENT

Manufacturers and wholesalers are increasingly cost conscious in response to today’s hyper-competitive environment. Lateral transshipment (LT) has been proposed as a viable solution to drive total inventory costs down whilst increasing customer service level. Our study proposes five LT decision rules with a case-based roadmap to guide professional inventory management. Results of this large fast moving consumer goods case study company demonstrate superior inventory management performance with implementing a combined reactive and proactive LT strategy to determine whether to transship emergency stock from other warehouse or to backorder from suppliers, size of transshipment, favorite wholesaler, preferred supplier, and extra quantity for preventive LT, which are the key LT decision points among the professional supply chain management practitioners.

Optimization model for transportation planning with demand uncertainties

Purpose – The purpose of this paper is to investigate the total cost function of an inventory system with a reorder point/order quantity policy where the lead time is controllable based on the cost paid by the buyer for the service. Design/methodology/approach – Cost functions are presented to investigate how the changes in lead time affect different components of inventory cost in the present of random demand. Two methods including an iteration technique and Simulated Annealing (SA) algorithm are presented to deal with the cost optimization issue. The application of proposed model is illustrated using numerical case scenarios. Findings – The cost functions show that besides ordering cost, change in stochastic demand during lead time is the major factor that affects the other cost components such as holding and penalty costs. This finding is validated by numerical study. Results also show that performance of SA algorithm is highly similar to iteration methodology, while the former one is easier in application. Practical implications – This paper develops less complex, more pragmatic methods, easily adoptable by logistics managers for cost minimization. This paper also analyzes and highlights the unique characteristics and features of these two approaches that can help practitioners in making the right choice when faced with the identified logistics issue. Originality/value – This research explicitly investigate impacts of changing lead time on inventory cost components which enables informed decision making and inventory system planning for cost optimization by logistics practitioners. Two methodologies that can be easily used by practitioners without deep mathematical analysis and is cost effective are introduced to solve the optimization problem. Detailed roadmaps of how to implement proposed approaches have been illustrated by different case scenarios.

Responses of successful local firms to changing foreign partnership characteristics: a model of dynamic technology management strategies

This article investigates the technological development process in local firms in joint venture partnerships with foreign firms. It takes the perspective of the local firms located in a developing economy and presents a model of dynamic technology management strategies (MDTMS) of local firms for sustained technological development. Based on an analysis of six firms from the rubber products and garment accessories manufacturing in Sri Lanka, it reveals how the level of skills and competence development within the local firm, the potential for technological contribution by the foreign partner firm and the level of autonomy of the local firms are important determinants for shaping technology management strategies. It argues that these successful Sri Lankan firms adopt dynamic technology management strategies because of the evolving nature of the partnership. The proposed model has significant implications for the technology management practices of local firms in developing economies that engage in foreign partnerships.