Eleonora Bottani

A fuzzy TOPSIS methodology to support outsourcing of logistics services

Purpose – To present a multi‐attribute approach for the selection and ranking of the most suitable 3PL service provider.Design/methodology/approach – The approach is based on the TOPSIS technique (Technique for Order Preference by Similarity to Ideal Solution) and the fuzzy set theory.Findings – A quantitative methodology based on a structured framework, for the selection of the most appropriate 3PL service provider.Research limitations/implications – Future research may attempt to compare the results of the methodology proposed with those of other Multi Attribute Group Decision Making methods. In particular, the selection tree could be developed in a multi‐tier hierarchy, trying to punctually address the relationships between the upper tier criteria and the lower level ones. With multi‐tier hierarchies, the performance of AHP could be compared with the one obtained with TOPSIS, not only with respect to “technical suitability” but also in terms of easiness to implement, shortcomings and general managerial...

Performance measurement in the food supply chain: a balanced scorecard approach

Purpose – The primary objective of this paper is to develop a balanced scorecard (BSC) model that is designed and delimited for performance measurement in the food supply chain.Design/methodology/approach – The research methodology is a combination of literature analysis, Delphi technique and case study‐based research. Starting from the literature concerning performance measurement and metrics, the food industry and the BSC model, the relevant financial and non‐financial indicators, suitable to be used for companies belonging to the food industry, were first identified. Indicators were submitted to a panel of experts, which operated following the Delphi technique, to gather possible suggestions or amendments. In its final form, the resulting BSC model was tested on two companies operating in the food industry, for a final validation.Findings – Results of the case studies show that the companies examined have a similar view for three of the four perspectives of the BSC, which can be thus considered as vali...

Supply chain design and cost analysis through simulation

This paper is grounded on a discrete-event simulation model, reproducing a fast moving consumer goods (FMCG) supply chain, and aims at quantitatively assessing the effects of different supply configurations on the resulting total supply chain costs and bullwhip effect. Specifically, 30 supply chain configurations are examined, stemming from the combination of several supply chain design parameters, namely number of echelons (from 3 to 5), re-order and inventory management policies (EOQ vs. EOI), demand information sharing (absence vs. presence of information sharing mechanisms), demand value (absence vs. presence of demand ‘peak’), responsiveness of supply chain players. For each configuration, the total logistics costs and the resulting demand variance amplification are computed. A subsequent statistical analysis is performed on 20 representative supply chain configurations, with the aim to identify significant single and combined effects of the above parameters on the results observed. From effects analysis, bullwhip effect and costs outcomes, 11 key results are derived, which provide useful insights and suggestions to optimise supply chain design.

A fuzzy multi-attribute framework for supplier selection in an e-procurement environment

Many studies have addressed which criteria have to be considered in order to weight potential suppliers when traditional vendor–buyer purchasing transactions take place. However, due to the peculiarities of the e-procurement process, new paradigms and criteria have to be added to traditional ones for the selection of viable suppliers when these kinds of internet-based transactions are set up. In this paper, the relevant criteria to be considered for the selection of the most viable suppliers in an e-procurement environment are first defined. The outcomes are based, on the one hand, on the work of a focus group especially set up for this purpose, and, on the other hand, on the literature review. Then, the proposed selection criteria are structured into an original framework. The scaffold is of general purpose, since it can be adopted for the assessment of both raw materials/components and MRO (maintenance, repair and operating supplies) suppliers. The framework has been conceived for the direct in-field application by practitioners by means of common multi-attribute decision-making methods, such as the fuzzy analytic hierarchy process, which has been proved to solve well the traditional supplier selection problem. Owing to its structure, the framework can thus be integrated to traditional supplier selection hierarchies, extending the general selection processes to an e-procurement environment. In order to test its practical implications, the framework has been applied in a major Italian company operating in the food industry, which has recently set up a programme for the e-procurement of MRO materials.

The impact of RFID technology on logistics processes of the fashion industry supply chain

This paper aims at quantitatively assessing the impact of radio frequency identification (RFID) technology and electronic product code (EPC) system on the main processes of the fashion industry supply chain. A fashion supply chain, composed of a distribution centre (DC) and a retail store (RS), is examined. A questionnaire survey and several site visits were performed to collect both quantitative and qualitative data related to current (AS IS) supply chain processes of each player investigated. Starting from data collected, re-engineered (TO BE) procedures were designed, hypothesising the implementation of RFID technology. Grounding on the gap between AS IS and TO BE scenarios, a detailed investment evaluation was performed in order to assess the profitability of RFID and EPC implementation in the fashion supply chain, both for each player and for different supply chain configurations. Results show that RFID and EPC implementation is profitable under several scenarios examined, and that the profitability ...

Reverse Logistics: a stochastic EOQ-based inventory control model for mixed manufacturing/remanufacturing systems with return policies

This paper focuses on mixed manufacturing/remanufacturing systems, where manufacturing or purchase of new items integrates product reuse or remanufacturing, with the purpose to achieve a complete and timely demand satisfaction. We formulate a stochastic Economic Order Quantity (EOQ)-based inventory control model for a mixed manufacturing/remanufacturing system. The model is intended to identify the need of placing a manufacturing/purchasing order, to avoid the occurrence of stock-out situations. We then formulate a total cost minimisation problem, to derive the optimal return policy, this latter being a financial incentive paid to customers to increase the flow of returned items. The model developed is investigated through simulations, in order to assess the effect of stochasticity (of demand, return fraction and return delay) on the optimal return policy of the system; then, it is validated through a case study, to derive indications concerning its practical application in real cases. Our study ultimately provides a framework for practitioners to establish EOQ policies in reverse logistics contexts and to evaluate the opportunity of establishing a return policy in those contexts.

Experimental evaluation of business impacts of RFID in apparel and retail supply chain

The purpose of this paper is to present and quantify the business benefits that can be achieved through the deployment of Radio frequency identification (RFID) technology in the apparel and fash- ion supply chain. The goal is to provide quantitative results regarding logistics and store processes, as well as different areas and processes that could be affected by RFID, including both operational aspects (e.g. shipping and receiving, inventory counts, etc.) and strategic issues related to garments try-ons, store replenishment, inventory management, customer satisfaction and sales volume. Results presented stem from an experimental campaign carried out in Italy in 2010. We applied RFID UHF gen2 tags to approximately 20,000 garments of the spring/summer and fall/winter 2010 collections, shipped from a distribution centre to a retail store of a major Italian fashion brand. We monitored the flow of goods through the logistics pipeline by means of mobile and fixed RFID readers, and collected the related data. Through proper elaboration of those data, we provided an estimate of the RFID benefits, both at operational and strategic levels. The main findings of our research have to be found in a punctual assessment of savings and increase in sales volume that can be achieved in the apparel supply chain through RFID deployment, with a special focus at the store level. Specifically, RFID is proven to provide benefits at operational levels through increased visibility of materials flows, labour reduction and higher accuracy of the store operations; moreover, it is demonstrated that the greatest contribution of RFID lies in its ability to provide new data, which allows consistently increasing sales and improving customer satisfaction.

Optimisation of storage allocation in order picking operations through a genetic algorithm

This paper explores the use of a genetic algorithm (GA) to optimise item allocation in a warehouse, with the ultimate purpose of reducing the travel time of pickers, thus streamlining order picking operations. The GA is described along with a numerical example, reflecting a fast moving consumer goods warehouse, where items are assumed to be allocated according to a class-based storage system. Starting from that configuration, and taking into account the set of orders to be fulfilled, the GA identifies a new item allocation, which significantly decreases the travel distance (by approximately 20%). This involves a corresponding decrease in the cost of picking operations, and allows the warehouse to respond quicker to the requests of customers. The GA and its numerical implementation are supported by a general purpose software, such as Microsoft Excel®, programmed under visual basic for applications; the resulting tool is thus easy to use in real scenarios.

On the assessment of enterprise agility: issues from two case studies

In this paper, we explore the main issues arising when attempting to quantitatively assess the agility level of a company. More precisely, the key questions of this study concern the suitability of available agility metrics to: (1) assess the agility level reached by companies; (2) assess the agility level of companies operating in different market segments; and (3) capture all aspects of agility. To answer those questions, two manufacturing companies, operating in the mechanical engineering and food processing industries, are examined through site visits and direct interviews, and detailed pieces of information are derived about their perception of agility drivers, attributes and enablers, and the corresponding degree of implementation. The results of the case studies show that available metrics of agility suffer from several limitations and do not consider all aspects of agility. Based on these outcomes, gaps for further research are identified and suggested.

The impact of RFID technology and EPC system on stock-out of promotional items

This paper examines the impact of radio frequency identification (RFID) and EPC Network on out‐of‐stocks of promotional items during a sales promotion in the fast-moving consumer goods (FMCG) context. A mathematical model is developed to estimate savings achievable by reducing the main causes of unavailability of promotional items. In particular, the model compares the current performance of sales promotion of FMCG retail stores, in terms of stock‐out occurrence and related duration, with a re-engineered situation where RFID and EPC are exploited in the store to reduce stock‐out causes. The model has been applied to a retail store of a major Italian distributor of FMCG. Results of the application suggest that RFID and EPC have the potential to substantially reduce economical losses due to unavailability of promotional items, thus proving the economical profitability of their implementation in the FMCG field.