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Application of Optimization in Production, Logistics, Inventory, Supply Chain Management...
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Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain

A special issue of Mathematics (ISSN 2227-7390).

Deadline for manuscript submissions: closed (31 July 2019) | Viewed by 118294

Printed Edition Available!
A printed edition of this Special Issue is available here.

Special Issue Editors

Dr. Mitali Sarkar

E-Mail Website
Guest Editor
Information Technology Research Center, Chung-Ang University, Seoul 06974, Korea
Interests: sustainability; energy supply chain; supply chain management
Special Issues, Collections and Topics in MDPI journals
Prof. Dr. Biswajit Sarkar

E-Mail Website
Guest Editor
Department of Industrial Engineering, Yonsei University, 50 Yonsei-ro, Sinchon-dong, Seodaemun-gu, Seoul 03722, Republic of Korea
Interests: supply chain management; optimization; artificial intelligence; smart production; mathematical modelling; inventory management; smart logistics; biomathematics; circular economy; sustainability; renewable energy
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Under any competitive scenario, the application of optimization in any field of production, inventory management, supply chain management, and logistics is really important. The main task for the industries is to obtain more and more profit or to reduce costs more. Optimization may not always be linear for all fields: it can sometimes be a nonlinear but classical, or metaheuristic, or simulation technique. Those can be used to solve the research models related to abovementioned field. In any kind of production, the basic needs are human labor and machines to continue production. The main contemporary issue of the production system is that the revolution of industry effects a lot to change in the traditional production to smart or additive production management, the direction of sustainable smart production, and, finally the formation of a smart supply chain management using the perfect logistics management. Sustainability issues mainly relate to the optimum values of economic, social, and environmental effects and the logistics management is a subpart of supply chain management, which gives details of organization and the implementation of a business operation. Thus, these optimizations cannot always be improved through an analytical procedure. That can be solved by a simulation or metaheuristic approach. These recent issues should be solved under the framework of the present Special Issue.

Prof. Dr. Biswajit Sarkar
Dr. Mitali Sarkar
Guest Editors

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Keywords

  • nonlinear optimization in any production management
  • classical, heuristic, and metaheuristic optimization approach in a supply chain and logistics management
  • optimum solution in any smart production
  • optimization in third party in the logistics management
  • cost optimization or profit maximization in an inventory management
  • application of graph theory in real life

Published Papers (29 papers)

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Research

19 pages, 982 KiB  
Article
Dynamic Agile Distributed Development Method
by Muhammad Asgher Nadeem and Scott Uk-Jin Lee
Mathematics 2019, 7(10), 963; https://0-doi-org.brum.beds.ac.uk/10.3390/math7100963 - 13 Oct 2019
Cited by 2 | Viewed by 3616
Abstract
“Agile” is an effective software engineering model with a high trust and acceptance rate among its users. The term agility comes from the concept of rapid development and working in a team for better results and a faster competition rate when compared with [...] Read more.
“Agile” is an effective software engineering model with a high trust and acceptance rate among its users. The term agility comes from the concept of rapid development and working in a team for better results and a faster competition rate when compared with any other software engineering model. In this study, an assessment of the different patterns, frameworks, and application program interfaces available for distributed development in an agile model is given. After analyzing the state-of-the-art distributed models, a novel framework of a dynamic agile distributed development method (DADDM) is introduced in this paper. Many researchers have worked on global software development using the agile approach; however, we are presenting the idea of incorporating the agile benefits with dynamic distributed software development. The applicability of the proposed model is checked via two selected parameters: a feasibility study and a business study. The complete DADDM development life cycle is presented in the methodology section. The techniques used in DADDM and team members’ roles and responsibilities in DADDM are defined in this study. This study reflects all pillars of planning, controlling, organizing, and management of leadership. The use of DADDM in distributed agile development encourages future researchers to use this proposed framework for comparison and testing of their models and to check the effectiveness through a comparison with DADDM. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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17 pages, 505 KiB  
Article
Maintenance Optimization for Repairable Deteriorating Systems under Imperfect Preventive Maintenance
by Juhyun Lee, Byunghoon Kim and Suneung Ahn
Mathematics 2019, 7(8), 716; https://0-doi-org.brum.beds.ac.uk/10.3390/math7080716 - 7 Aug 2019
Cited by 11 | Viewed by 3752
Abstract
This study deals with the preventive maintenance optimization problem based on a reliability threshold. The conditional reliability threshold is used instead of the system reliability threshold. Then, the difference between the two thresholds is discussed. The hybrid failure rate model is employed to [...] Read more.
This study deals with the preventive maintenance optimization problem based on a reliability threshold. The conditional reliability threshold is used instead of the system reliability threshold. Then, the difference between the two thresholds is discussed. The hybrid failure rate model is employed to represent the effect of imperfect preventive maintenance activities. Two maintenance strategies are proposed under two types of reliability constraints. These constraints are set to consider the cost-effective maintenance strategy and to evaluate the balancing point between the expected total maintenance cost rate and the system reliability. The objective of the proposed maintenance strategies is to determine the optimal conditional reliability threshold together with the optimal number of preventive maintenance activities that minimize the expected total maintenance cost per unit time. The optimality conditions of the proposed maintenance strategies are also investigated and shown via four propositions. A numerical example is provided to illustrate the proposed preventive maintenance strategies. Some sensitivity analyses are also conducted to investigate how the parameters of the proposed model affect the optimality of preventive maintenance strategies. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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17 pages, 629 KiB  
Article
A Generalized Process Targeting Model and an Application Involving a Production Process with Multiple Products
by Mohammad A. M. Abdel-Aal and Shokri Z. Selim
Mathematics 2019, 7(8), 699; https://0-doi-org.brum.beds.ac.uk/10.3390/math7080699 - 3 Aug 2019
Viewed by 2433
Abstract
This paper presents a generalized targeting model that subsumes most known targeting problems. In this paper, a recurrent state is defined as a condition that requires reprocessing or rework. The generalized model can accommodate one or two specifications limits and can be used [...] Read more.
This paper presents a generalized targeting model that subsumes most known targeting problems. In this paper, a recurrent state is defined as a condition that requires reprocessing or rework. The generalized model can accommodate one or two specifications limits and can be used for the following quality characteristics: The nominal-the-better, the larger-the-better, and the smaller-the-better. This model can be used to find the optimal mean of a quality characteristic, as well as the optimal specification limits. In addition, the paper studies the conditions under which the solution to the proposed model can provide a global solution. The paper shows that, for some of the special cases and under very general conditions, the optimal lower limit should be zero and the optimal upper limit should be infinity. This paper proves that the expected profits improve for the case where only a lower limit on the quality characteristic is used, if a recurrent state is included by adding an optimized upper limit. A special case of the model is used to study the problem of determining a common mean for multiple products, as well as the optimal upper specification limits for each product. A solution procedure for maximizing the expected profits and obtaining the optimal solution is introduced. A numerical example is presented. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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18 pages, 409 KiB  
Article
The Quantitative Analysis of Workers’ Stress Due to Working Environment in the Production System of the Automobile Part Manufacturing Industry
by Muhammad Omair, Misbah Ullah, Baishakhi Ganguly, Sahar Noor, Shahid Maqsood and Biswajit Sarkar
Mathematics 2019, 7(7), 627; https://0-doi-org.brum.beds.ac.uk/10.3390/math7070627 - 15 Jul 2019
Cited by 17 | Viewed by 4677
Abstract
Production now requires the management of production processes and operations on the basis of customers’ demand to ensure the best combination of technology and humans in the system. The role of the humans in the production process is very significant for the production [...] Read more.
Production now requires the management of production processes and operations on the basis of customers’ demand to ensure the best combination of technology and humans in the system. The role of the humans in the production process is very significant for the production and quality of the product. The production system depends upon technology and human factors and is highly influenced by the working conditions of the workers, that is, work load, physical, dealings, job timings and so forth. In the current global economy, minimizing production costs is a serious priority for the industries. However, the costs of bad working conditions increase the intensity of the average stress among employees to cause extra costs by affecting the workers’ efficiency and products’ quality, which is invisible in the eyes of decision makers. This research identifies the cost of workers’ stress by developing a linkage between the economic benefits of the firms and the social upgrading of the workers. A numerical example of a production based system is performed to represent the real-time application of the proposed model. A sensitivity analysis is also carried out to quantify the impact of average stress among workers on the production system. Sequential quadratic programming is used to optimize the given nonlinear model for production planning. The optimal results influence ergonomics awareness and the relationship with the safety culture among managers in a firm. It is concluded that efficient and effective production cannot be possible without considering the working conditions of humans in the firm. Managerial insights are also generated from the implications of the results and sensitivity analysis. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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20 pages, 333 KiB  
Article
The Inventory Model for Deteriorating Items under Conditions Involving Cash Discount and Trade Credit
by Kun-Jen Chung, Jui-Jung Liao, Shy-Der Lin, Sheng-Tu Chuang and Hari Mohan Srivastava
Mathematics 2019, 7(7), 596; https://0-doi-org.brum.beds.ac.uk/10.3390/math7070596 - 2 Jul 2019
Cited by 15 | Viewed by 3086
Abstract
In the year 2004, Chang and Teng investigated an inventory model for deteriorating items in which the supplier not only provides a cash discount, but also allows a permissible delay in payments. The main purpose of the present investigation is three-fold, as follows. [...] Read more.
In the year 2004, Chang and Teng investigated an inventory model for deteriorating items in which the supplier not only provides a cash discount, but also allows a permissible delay in payments. The main purpose of the present investigation is three-fold, as follows. First, it is found herein that Theorem 1 of Chang and Teng (2004) has notable shortcomings in terms of their determination of the optimal solution of the annual total relevant cost Z ( T ) by adopting the Taylor-series approximation method. Theorem 1 in this paper does not make use of the Taylor-series approximation method in order to overcome the shortcomings in Chang and Teng (2004) and alternatively derives all the optimal solutions of the annual total relevant cost Z ( T ) . Secondly, this paper systematically revisits the annual total relevant cost Z ( T ) in Chang and Teng (2004) and presents in detail the mathematically correct ways for the derivations of Z ( T ) . Thirdly, this paper not only shows that Theorem 1 of Chang and Teng (2004) is not necessarily true for finding the optimal solution of the annual total relevant cost Z ( T ) , but it also demonstrates how Theorem 1 in this paper can locate all of the optimal solutions of Z ( T ) . The mathematical analytic investigation presented in this paper is believed to be useful for correct managerial considerations and managerial decisions. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
22 pages, 2649 KiB  
Article
Pricing Decision within an Inventory Model for Complementary and Substitutable Products
by Ata Allah Taleizadeh, Masoumeh Sadat Babaei, Shib Sankar Sana and Biswajit Sarkar
Mathematics 2019, 7(7), 568; https://0-doi-org.brum.beds.ac.uk/10.3390/math7070568 - 26 Jun 2019
Cited by 12 | Viewed by 3776
Abstract
A combination of substitutable and complementary products is very important for any business industry to make all-round profit from different aspects. How deterioration affects complementary products or substitutable products is discussed in this study. This study investigates the pricing and inventory decisions for [...] Read more.
A combination of substitutable and complementary products is very important for any business industry to make all-round profit from different aspects. How deterioration affects complementary products or substitutable products is discussed in this study. This study investigates the pricing and inventory decisions for complementary and substitutable items which are deteriorating in nature. Four models are analyzed where the demand of one product is dependent upon the selling price and the price of another product. This paper tries to compute the optimum prices and order quantities to optimize the total profit, which is the main aim. Theoretically, this model is solved by a classical optimization method. Numerical examples demonstrate the applicability of this model. Results conclude that the total profit is dependent on the degree of substitutability and complementarity. A sensitivity analysis of optimal solutions is given to test the stability of the proposed model. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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19 pages, 2292 KiB  
Article
A Meta-Model-Based Multi-Objective Evolutionary Approach to Robust Job Shop Scheduling
by Zigao Wu, Shaohua Yu and Tiancheng Li
Mathematics 2019, 7(6), 529; https://0-doi-org.brum.beds.ac.uk/10.3390/math7060529 - 10 Jun 2019
Cited by 8 | Viewed by 2621
Abstract
In the real-world manufacturing system, various uncertain events can occur and disrupt the normal production activities. This paper addresses the multi-objective job shop scheduling problem with random machine breakdowns. As the key of our approach, the robustness of a schedule is considered jointly [...] Read more.
In the real-world manufacturing system, various uncertain events can occur and disrupt the normal production activities. This paper addresses the multi-objective job shop scheduling problem with random machine breakdowns. As the key of our approach, the robustness of a schedule is considered jointly with the makespan and is defined as expected makespan delay, for which a meta-model is designed by using a data-driven response surface method. Correspondingly, a multi-objective evolutionary algorithm (MOEA) is proposed based on the meta-model to solve the multi-objective optimization problem. Extensive experiments based on the job shop benchmark problems are conducted. The results demonstrate that the Pareto solution sets of the MOEA are much better in both convergence and diversity than those of the algorithms based on the existing slack-based surrogate measures. The MOEA is also compared with the algorithm based on Monte Carlo approximation, showing that their Pareto solution sets are close to each other while the MOEA is much more computationally efficient. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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15 pages, 461 KiB  
Article
Dynamic Pricing in a Multi-Period Newsvendor Under Stochastic Price-Dependent Demand
by Mehran Ullah, Irfanullah Khan and Biswajit Sarkar
Mathematics 2019, 7(6), 520; https://0-doi-org.brum.beds.ac.uk/10.3390/math7060520 - 6 Jun 2019
Cited by 21 | Viewed by 4549
Abstract
The faster growth of technology stipulates the rapid development of new products; with the spread of new technologies old ones are outdated and their market demand declines sharply. The combined impact of demand uncertainty and short life-cycles complicate ordering and pricing decision of [...] Read more.
The faster growth of technology stipulates the rapid development of new products; with the spread of new technologies old ones are outdated and their market demand declines sharply. The combined impact of demand uncertainty and short life-cycles complicate ordering and pricing decision of retailers that leads to a decrease in the profit. This study deals with the joint inventory and dynamic pricing policy for such products considering stochastic price-dependent demand. The aim is to develop a discount policy that enables the retailer to order more at the start of the selling season thus increase the profit and market share of the retailer. A multi-period newsvendor model is developed under the distribution-free approach and the optimal stocking quantities, unit selling price, and the discount percentage are obtained. The results show that the proposed discount policy increases the expected profit of the system. Additionally, the stocking quantity and the unit selling price also increases in the proposed discount policy. The robustness of the proposed model is illustrated with numerical examples and sensitivity analysis. Managerial insights are given to extract significant insights for the newsvendor model with discount policy. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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16 pages, 510 KiB  
Article
Monitoring the Performance of Petrochemical Organizations in Saudi Arabia Using Data Envelopment Analysis
by Hisham Alidrisi, Mehmet Emin Aydin, Abdullah Omer Bafail, Reda Abdulal and Shoukath Ali Karuvatt
Mathematics 2019, 7(6), 519; https://0-doi-org.brum.beds.ac.uk/10.3390/math7060519 - 6 Jun 2019
Cited by 13 | Viewed by 4207
Abstract
The petrochemical industry plays a crucial role in the economy of the Kingdom of Saudi Arabia. Therefore, the effectiveness and efficiency of this industry is of high importance. Data envelopment analysis (DEA) is found to be more acceptable in measuring the effectiveness of [...] Read more.
The petrochemical industry plays a crucial role in the economy of the Kingdom of Saudi Arabia. Therefore, the effectiveness and efficiency of this industry is of high importance. Data envelopment analysis (DEA) is found to be more acceptable in measuring the effectiveness of various industries when used in conjunction with non-parametric methods such as multiple regression, analytical hierarchy process (AHP), multidimensional scaling (MDS), and other multiple criteria decision making (MCDM) approaches. In this study, ten petrochemical companies in the Kingdom of Saudi Arabia are evaluated using Banker, Charnes and Cooper (BCC)/Charnes, Cooper, and Rhodes (CCR) models of DEA to compute the technical and super-efficiencies for ranking according to their relative performances. Data were collected from the Saudi Stock Exchange on key financial performance measures, five of which were chosen as inputs and five as outputs. Five DEA models were developed using different input–output combinations. The efficiency plots obtained from DEA were compared with the Euclidean distance scatter plot obtained from MDS. The dimensionality of MDS plots was derived from the DEA output. It was found that the two-dimensional positioning of the companies was congruent in both plots, thus validating the DEA results. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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26 pages, 2698 KiB  
Article
Stochastic-Petri Net Modeling and Optimization for Outdoor Patients in Building Sustainable Healthcare System Considering Staff Absenteeism
by Chang Wook Kang, Muhammad Imran, Muhammad Omair, Waqas Ahmed, Misbah Ullah and Biswajit Sarkar
Mathematics 2019, 7(6), 499; https://0-doi-org.brum.beds.ac.uk/10.3390/math7060499 - 1 Jun 2019
Cited by 23 | Viewed by 3160
Abstract
Sustainable healthcare systems are gaining more importance in the era of globalization. The efficient planning with sustainable resources in healthcare systems is necessary for the patient’s satisfaction. The proposed research considers performance improvement along with future sustainability. The main objective of this study [...] Read more.
Sustainable healthcare systems are gaining more importance in the era of globalization. The efficient planning with sustainable resources in healthcare systems is necessary for the patient’s satisfaction. The proposed research considers performance improvement along with future sustainability. The main objective of this study is to minimize the queue of patients and required resources in a healthcare unit with the consideration of staff absenteeism. It is a resource-planning model with staff absenteeism and operational utilization. Petri nets have been integrated with a mixed integer nonlinear programming model (MINLP) to form a new approach that is used as a solution method to the problem. The Petri net is the combination of graphical, mathematical technique, and simulation for visualizing and optimization of a system having both continuous and discrete characteristics. In this research study, two cases of resource planning have been presented. The first case considers the planning without absenteeism and the second incorporates planning with the absenteeism factor. The comparison of both cases showed that planning with the absenteeism factor improved the performance of healthcare systems in terms of the reduced queue of patients and improved operational sustainability. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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20 pages, 984 KiB  
Article
Joint Inventory and Pricing Policy for an Online to Offline Closed-Loop Supply Chain Model with Random Defective Rate and Returnable Transport Items
by Biswajit Sarkar, Mehran Ullah and Seok-Beom Choi
Mathematics 2019, 7(6), 497; https://0-doi-org.brum.beds.ac.uk/10.3390/math7060497 - 1 Jun 2019
Cited by 27 | Viewed by 4369
Abstract
Environmental deterioration is one of the current hot topics of the business world. To cope with the negative environmental impacts of corporate activities, researchers introduced the concept of closed-loop supply chain (CLSC) management and remanufacturing. This paper studies joint inventory and pricing decisions [...] Read more.
Environmental deterioration is one of the current hot topics of the business world. To cope with the negative environmental impacts of corporate activities, researchers introduced the concept of closed-loop supply chain (CLSC) management and remanufacturing. This paper studies joint inventory and pricing decisions in a multi-echelon CLSC model that considers online to offline (O2O) business strategy. An imperfect production process is examined with a random defective rate that follows a probability distribution. The results show that the O2O channel increases the profit of the system. For the defective rate, three different distributions are considered and three examples are solved. The results of the three examples conclude that the highest profit is generated when the defective rate follows a uniform distribution. Furthermore, based on the salvage value of defective items, two cases were studied. Results and sensitivity analysis show that the increase in defective rate does not reduce total profit in every situation, as perceived by the existing literature. Sensitivity analysis and numerical examples are given to show robustness of the model and draw important managerial insights. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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19 pages, 404 KiB  
Article
How Does a Radio Frequency Identification Optimize the Profit in an Unreliable Supply Chain Management?
by Rekha Guchhait, Sarla Pareek and Biswajit Sarkar
Mathematics 2019, 7(6), 490; https://0-doi-org.brum.beds.ac.uk/10.3390/math7060490 - 29 May 2019
Cited by 16 | Viewed by 4063
Abstract
Competition in business is higher in the electronics sector compared to other sectors. In such a situation, the role of a manufacturer is to manage the inventory properly with optimized profit. However, the problem of unreliability within buyers still exists in real world [...] Read more.
Competition in business is higher in the electronics sector compared to other sectors. In such a situation, the role of a manufacturer is to manage the inventory properly with optimized profit. However, the problem of unreliability within buyers still exists in real world scenarios. The manufacturer adopts the radio frequency identification (RFID) technology to manage the inventory, which can control the unreliability, the inventory pooling effect, and the investment on human labor. For detecting RFID tags, a reasonable number of readers are needed. This study investigates the optimum distance between any two readers when using the optimum number of readers. As a vendor managed inventory (VMI) policy is utilized by the manufacturer, a revenue sharing contract is adopted to prevent the loss of buyers. The aim of this study is to maximize the profits of a two-echelon supply chain management under an advanced technology system. As the life of electronic gadgets is random, it may not follow any specific type of distribution function. The distribution-free approach helps to solve this issue when the mean and the standard deviation are known. The Kuhn-Tucker methodology and classical optimization are used to find the global optimum solution. The numerical analysis demonstrates that the manufacturer can earn more profit in coordination case after utilizing revenue sharing and the optimum distance between readers optimizing cost related to the RFID system. Sensitivity analysis is performed to check the sensibility of the parameters. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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42 pages, 3716 KiB  
Article
Change Point Detection for Airborne Particulate Matter (PM2.5, PM10) by Using the Bayesian Approach
by Muhammad Rizwan Khan and Biswajit Sarkar
Mathematics 2019, 7(5), 474; https://0-doi-org.brum.beds.ac.uk/10.3390/math7050474 - 24 May 2019
Cited by 5 | Viewed by 3002
Abstract
Airborne particulate matter (PM) is a key air pollutant that affects human health adversely. Exposure to high concentrations of such particles may cause premature death, heart disease, respiratory problems, or reduced lung function. Previous work on particulate matter ( P M 2.5 and [...] Read more.
Airborne particulate matter (PM) is a key air pollutant that affects human health adversely. Exposure to high concentrations of such particles may cause premature death, heart disease, respiratory problems, or reduced lung function. Previous work on particulate matter ( P M 2.5 and P M 10 ) was limited to specific areas. Therefore, more studies are required to investigate airborne particulate matter patterns due to their complex and varying properties, and their associated ( P M 10 and P M 2.5 ) concentrations and compositions to assess the numerical productivity of pollution control programs for air quality. Consequently, to control particulate matter pollution and to make effective plans for counter measurement, it is important to measure the efficiency and efficacy of policies applied by the Ministry of Environment. The primary purpose of this research is to construct a simulation model for the identification of a change point in particulate matter ( P M 2.5 and P M 10 ) concentration, and if it occurs in different areas of the world. The methodology is based on the Bayesian approach for the analysis of different data structures and a likelihood ratio test is used to a detect change point at unknown time (k). Real time data of particulate matter concentrations at different locations has been used for numerical verification. The model parameters before change point ( θ ) and parameters after change point ( λ ) have been critically analyzed so that the proficiency and success of environmental policies for particulate matter ( P M 2.5 and P M 10 ) concentrations can be evaluated. The main reason for using different areas is their considerably different features, i.e., environment, population densities, and transportation vehicle densities. Consequently, this study also provides insights about how well this suggested model could perform in different areas. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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20 pages, 880 KiB  
Article
Multi-Product Production System with the Reduced Failure Rate and the Optimum Energy Consumption under Variable Demand
by Shaktipada Bhuniya, Biswajit Sarkar and Sarla Pareek
Mathematics 2019, 7(5), 465; https://0-doi-org.brum.beds.ac.uk/10.3390/math7050465 - 24 May 2019
Cited by 32 | Viewed by 3793
Abstract
The advertising of any smart product is crucial in generating customer demand, along with reducing sale prices. Naturally, a decrease in price always increases the demand for any smart product. This study introduces a multi-product production process, taking into consideration the advertising- and [...] Read more.
The advertising of any smart product is crucial in generating customer demand, along with reducing sale prices. Naturally, a decrease in price always increases the demand for any smart product. This study introduces a multi-product production process, taking into consideration the advertising- and price-dependent demands of products, where the failure rate of the production system is reduced under the optimum energy consumption. For long-run production systems, unusual energy consumption and machine failures occur frequently, which are reduced in this study. All costs related with the production system are included in the optimum energy costs. The unit production cost is dependent on the production rate of the machine and its failure rate. The aim of this study is to obtain the optimum profit with a reduced failure rate, under the optimum advertising costs and the optimum sale price. The total profit of the model becomes a complex, non-linear function, with respect to the decision variables. For this reason, the model is solved numerically by an iterative method. However, the global optimality is proved numerically, by using the Hessian matrix. The numerical results obtained show that for smart production, the maximum profit always occurs at the optimum values of the decision variables. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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18 pages, 723 KiB  
Article
A Single-Stage Manufacturing Model with Imperfect Items, Inspections, Rework, and Planned Backorders
by Chang Wook Kang, Misbah Ullah, Mitali Sarkar, Muhammad Omair and Biswajit Sarkar
Mathematics 2019, 7(5), 446; https://0-doi-org.brum.beds.ac.uk/10.3390/math7050446 - 19 May 2019
Cited by 21 | Viewed by 3941
Abstract
Each industry prefers to sell perfect products in order to maintain its brand image. However, due to a long-run single-stage production system, the industry generally obtains obstacles. To solve this issue, a single-stage manufacturing model is formulated to make a perfect production system [...] Read more.
Each industry prefers to sell perfect products in order to maintain its brand image. However, due to a long-run single-stage production system, the industry generally obtains obstacles. To solve this issue, a single-stage manufacturing model is formulated to make a perfect production system without defective items. For this, the industry decides to stop selling any products until whole products are ready to fulfill the order quantity. Furthermore, manufacturing managers prefer product qualification from the inspection station especially when processes are imperfect. The purpose of the proposed manufacturing model considers that the customer demands are not fulfilled during the production phase due to imperfection in the process, however customers are satisfied either at the end of the inspection process or after reworking the imperfect products. Rework operation, inspection process, and planned backordering are incorporated in the proposed model. An analytical approach is utilized to optimize the lot size and planned backorder quantities based on the minimum average cost. Numerical examples are used to illustrate and compare the proposed model with previously developed models. The proposed model is considered more beneficial in comparison with the existing models as it incorporates imperfection, rework, inspection rate, and planned backorders. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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25 pages, 512 KiB  
Article
A Two-Echelon Supply Chain Management With Setup Time and Cost Reduction, Quality Improvement and Variable Production Rate
by Bikash Koli Dey, Biswajit Sarkar and Sarla Pareek
Mathematics 2019, 7(4), 328; https://0-doi-org.brum.beds.ac.uk/10.3390/math7040328 - 3 Apr 2019
Cited by 39 | Viewed by 5508
Abstract
This model investigates the variable production cost for a production house; under a two-echelon supply chain management where a single vendor and multi-retailers are involved. This production system goes through a long run system and generates an out-of-control state due to different issues [...] Read more.
This model investigates the variable production cost for a production house; under a two-echelon supply chain management where a single vendor and multi-retailers are involved. This production system goes through a long run system and generates an out-of-control state due to different issues and produces defective items. This model considers the reduction of the defective rate and setup cost through investment. A discrete investment for setup cost reduction and a continuous investment is considered to reduce the defective rate and to increase the quality of products. Setup and processing time are dependent on lead time in this model. The model is solved analytically to find the optimal values of the production rate, safety factors, optimum quantity, lead time length, investment for setup cost reduction, and the probability of the production process going out-of-control. An efficient algorithm is constructed to find the optimal solution numerically and sensitivity analysis is given to show the impact of different parameters. A case study and different cases are also given to validate the model. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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26 pages, 1584 KiB  
Article
Constrained FC 4D MITPs for Damageable Substitutable and Complementary Items in Rough Environments
by Sharmistha Halder Jana, Biswapati Jana, Barun Das, Goutam Panigrahi and Manoranjan Maiti
Mathematics 2019, 7(3), 281; https://0-doi-org.brum.beds.ac.uk/10.3390/math7030281 - 19 Mar 2019
Cited by 4 | Viewed by 2684
Abstract
Very often items that are substitutable and complementary to each other are sent from suppliers to retailers for business. In this paper, for these types of items, fixed charge (FC) four-dimensional (4D) multi-item transportation problems (MITPs) are formulated with both space and budget [...] Read more.
Very often items that are substitutable and complementary to each other are sent from suppliers to retailers for business. In this paper, for these types of items, fixed charge (FC) four-dimensional (4D) multi-item transportation problems (MITPs) are formulated with both space and budget constraints under crisp and rough environments. These items are damageable/breakable. The rates of damageability of the items depend on the quantity transported and the distance of travel i.e., path. A fixed charge is applied to each of the routes (independent of items). There are some depots/warehouses (origins) from which the items are transported to the sales counters (destinations) through different conveyances and routes. In proposed FC 4D-MITP models, per unit selling prices, per unit purchasing prices, per unit transportation expenditures, fixed charges, availabilities at the sources, demands at the destinations, conveyance capacities, total available space and budget are expressed by rough intervals, where the transported items are substitutable and complementary in nature. In this business, the demands for the items at the destinations are directly related to their substitutability and complementary natures and prices. The suggested rough model is converted into a deterministic one using lower and upper approximation intervals following Hamzehee et al. as well as Expected Value Techniques. The converted model is optimized through the Generalized Reduced Gradient (GRG) techniques using LINGO 14 software. Finally, numerical examples are presented to illustrate the preciseness of the proposed model. As particular cases, different models such as 2D, 3D FCMITPs for two substitute items, one item with its complement and two non substitute non complementary items are derived and results are presented. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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19 pages, 5523 KiB  
Article
A Decision Support System for Dynamic Job-Shop Scheduling Using Real-Time Data with Simulation
by Ahmet Kursad Turker, Adnan Aktepe, Ali Firat Inal, Olcay Ozge Ersoz, Gulesin Sena Das and Burak Birgoren
Mathematics 2019, 7(3), 278; https://0-doi-org.brum.beds.ac.uk/10.3390/math7030278 - 19 Mar 2019
Cited by 35 | Viewed by 6106
Abstract
The wide usage of information technologies in production has led to the Fourth Industrial Revolution, which has enabled real data collection from production tools that are capable of communicating with each other through the Internet of Things (IoT). Real time data improves production [...] Read more.
The wide usage of information technologies in production has led to the Fourth Industrial Revolution, which has enabled real data collection from production tools that are capable of communicating with each other through the Internet of Things (IoT). Real time data improves production control especially in dynamic production environments. This study proposes a decision support system (DSS) designed to increase the performance of dispatching rules in dynamic scheduling using real time data, hence an increase in the overall performance of the job-shop. The DSS can work with all dispatching rules. To analyze its effects, it is run with popular dispatching rules selected from the literature on a simulation model created in Arena®. When the number of jobs waiting in the queue of any workstation in the job-shop falls to a critical value, the DSS can change the order of schedules in its preceding workstations to feed the workstation as soon as possible. For this purpose, it first determines the jobs in the preceding workstations to be sent to the current workstation, then finds the job with the highest priority number according to the active dispatching rule, and lastly puts this job in the first position in its queue. The DSS is tested under low, normal, and high demand rate scenarios with respect to six performance criteria. It is observed that the DSS improves the system performance by increasing workstation utilization and decreasing both the number of tardy jobs and the amount of waiting time regardless of the employed dispatching rule. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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24 pages, 2727 KiB  
Article
Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items
by Yosef Daryanto, Hui Ming Wee and Gede Agus Widyadana
Mathematics 2019, 7(3), 234; https://0-doi-org.brum.beds.ac.uk/10.3390/math7030234 - 5 Mar 2019
Cited by 32 | Viewed by 3357
Abstract
Nowadays, many countries have implemented carbon pricing policies. Hence, the industry adapts to this policy while striving for its main goal of maximizing financial benefits. Here, we study a single manufacturer–retailer inventory decision considering carbon emission cost and item deterioration for an imperfect [...] Read more.
Nowadays, many countries have implemented carbon pricing policies. Hence, the industry adapts to this policy while striving for its main goal of maximizing financial benefits. Here, we study a single manufacturer–retailer inventory decision considering carbon emission cost and item deterioration for an imperfect production system. This study examines two models considering two cases of quality inspection. The first is when the buyer performs the quality inspection, and the second is when the quality inspection becomes the vendor’s responsibility so that no defective products are passed to the buyer. Carbon emission costs are incorporated under a carbon tax policy, and we consider the carbon footprint from transporting and warehousing the items. The objective is to jointly optimize the delivery quantity and number of deliveries per production cycle that minimize the total cost and reduce the total carbon emissions. This study provides solution procedures to solve the models, as well as two numerical examples. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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20 pages, 5823 KiB  
Article
Effects of Preservation Technology Investment on Waste Generation in a Two-Echelon Supply Chain Model
by Mehran Ullah, Biswajit Sarkar and Iqra Asghar
Mathematics 2019, 7(2), 189; https://0-doi-org.brum.beds.ac.uk/10.3390/math7020189 - 17 Feb 2019
Cited by 26 | Viewed by 3962
Abstract
This study develops an integrated production-inventory model for a two-echelon supply chain network with controllable probabilistic deterioration. The investment in preservation technology is considered a decision variable to control the deteriorated quantity of an integrated system. The objective of the study is to [...] Read more.
This study develops an integrated production-inventory model for a two-echelon supply chain network with controllable probabilistic deterioration. The investment in preservation technology is considered a decision variable to control the deteriorated quantity of an integrated system. The objective of the study is to optimize preservation investment, the number of shipments and shipment quantity, so that the total cost per unit of time of the supply chain is minimized. The study proposes a solution method, and the results show that investment in preservation technology reduces the total supply chain cost by 13%. Additionally, preservation increases the lot size, thus increasing the production cycle length, which reduces the ordering cost of the system. Furthermore, this study shows that preservation leads to a reduction of solid waste from deteriorated products. Total deteriorated products reduced to 8 units from 235 units, hence, preservation generates positive environmental benefits along with economic impacts. The robustness of the proposed model is illustrated with a numerical example, sensitivity analysis, and graphical representations. Moreover, comparative study and managerial insights are given to extract significant insights from the model. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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16 pages, 1394 KiB  
Article
Interactive Fuzzy Multi Criteria Decision Making Approach for Supplier Selection and Order Allocation in a Resilient Supply Chain
by Sonia Irshad Mari, Muhammad Saad Memon, Muhammad Babar Ramzan, Sheheryar Mohsin Qureshi and Muhammad Waqas Iqbal
Mathematics 2019, 7(2), 137; https://0-doi-org.brum.beds.ac.uk/10.3390/math7020137 - 1 Feb 2019
Cited by 29 | Viewed by 4550
Abstract
Modern supply chains are vulnerable to high impact, low probability disruption risks. A supply chain usually operates in such a network of entities where the resilience of one supplier is critical to overall supply chain resilience. Therefore, resilient planning is a key strategic [...] Read more.
Modern supply chains are vulnerable to high impact, low probability disruption risks. A supply chain usually operates in such a network of entities where the resilience of one supplier is critical to overall supply chain resilience. Therefore, resilient planning is a key strategic requirement in supplier selection decisions for a competitive supply chain. The aim of this research is to develop quantitative resilient criteria for supplier selection and order allocation in a fuzzy environment. To serve the purpose, a possibilistic fuzzy multi-objective approach was proposed and an interactive fuzzy optimization solution methodology was developed. Using the proposed approach, organizations can tradeoff between cost and resilience in supply networks. The approach is illustrated using a supply chain case from a garments manufacturing company. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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19 pages, 1223 KiB  
Article
Application of Optimization to Select Contractors to Develop Strategies and Policies for the Development of Transport Infrastructure
by Chia-Nan Wang, Tien-Muoi Le and Han-Khanh Nguyen
Mathematics 2019, 7(1), 98; https://0-doi-org.brum.beds.ac.uk/10.3390/math7010098 - 18 Jan 2019
Cited by 5 | Viewed by 3273
Abstract
Many factors influence the efficiency and quality of transport works. In particular, consultants and construction contractors of these works play important roles, and critical factors directly affect the quality of traffic works. If the quality of consultancy and construction is good, the project [...] Read more.
Many factors influence the efficiency and quality of transport works. In particular, consultants and construction contractors of these works play important roles, and critical factors directly affect the quality of traffic works. If the quality of consultancy and construction is good, the project will reduce the total investment; if the contractor is good, the completion time of the new project is guaranteed, thus reducing construction costs. The longer the construction time is, the higher the cost of the project. In this study, the authors used optimal algorithms to evaluate past, present, and future contractors’ technical, technological, and performance effectiveness. Research results show that bidders are divided into three groups: highly effective bidders, stable contractors, and inefficient groups. Research results for this subject will help the government, regulatory agencies, and investors select good contractors as the basis for developing strategies and policies for the development of transport infrastructure. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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18 pages, 1090 KiB  
Article
Effect of Time-Varying Factors on Optimal Combination of Quality Inspectors for Offline Inspection Station
by Muhammad Babar Ramzan, Shehreyar Mohsin Qureshi, Sonia Irshad Mari, Muhammad Saad Memon, Mandeep Mittal, Muhammad Imran and Muhammad Waqas Iqbal
Mathematics 2019, 7(1), 51; https://0-doi-org.brum.beds.ac.uk/10.3390/math7010051 - 7 Jan 2019
Cited by 8 | Viewed by 3980
Abstract
With advanced manufacturing technology, organizations like to cut their operational cost and improve product quality, yet the importance of human labor is still alive in some manufacturing industries. The performance of human-based systems depends much on the skill of labor that varies person [...] Read more.
With advanced manufacturing technology, organizations like to cut their operational cost and improve product quality, yet the importance of human labor is still alive in some manufacturing industries. The performance of human-based systems depends much on the skill of labor that varies person to person within available manpower. Much work has been done on human resource and management, however, allocation of manpower based on their skill yet not investigated. For this purpose, this study considered offline inspection system where inspection is performed by the human labor of varying skill levels. A multi-objective optimization model is proposed based on Time-Varying factors; inspection skill, operation time and learning behavior. Min-max goal programming technique was used to determine the efficient combination of inspectors of each skill level at different time intervals of a running order. The optimized results ensured the achievement of all objectives of inspection station: the cost associated with inspectors, outgoing quality and inspected quantity. The obtained results proved that inspection performance of inspectors improves significantly with learning and revision of allocation of inspectors with the proposed model ensure better utilization of available manpower, maintain good quality and reduce cost as well. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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18 pages, 2487 KiB  
Article
Sustainable Lot Size in a Multistage Lean-Green Manufacturing Process under Uncertainty
by Muhammad Tayyab, Biswajit Sarkar and Misbah Ullah
Mathematics 2019, 7(1), 20; https://0-doi-org.brum.beds.ac.uk/10.3390/math7010020 - 25 Dec 2018
Cited by 28 | Viewed by 4553
Abstract
Optimal lot sizing is the primary tool applied by lean practitioners to reduce inconsistency in the manufacturing system to cut down inventories, which are often considered as a type of waste in the lean culture. Managers attempt to consider environmental impacts of the [...] Read more.
Optimal lot sizing is the primary tool applied by lean practitioners to reduce inconsistency in the manufacturing system to cut down inventories, which are often considered as a type of waste in the lean culture. Managers attempt to consider environmental impacts of the manufacturing system and find ways to reduce these effects while making efforts to achieve environmental protection. From a sustainability standpoint, carbon emissions are the major source of environmental contamination and degradation. In this context, this research provides an economic production quantity model with uncertain demand and process information in a multistage manufacturing process. This imperfect manufacturing process produces defective products at an uncertain rate, and is reworked to convert them into perfect quality products and reduce wastages. To control this uncertainty in the manufacturing process, the decomposition principle and the signed distance method of fuzzy theory are applied. The manufacturing process is analyzed with regard to environmental concerns, and a sustainable lot size is obtained through an interactive Weighted Fuzzy Goal Programming (WFGP) approach for the simultaneous achievement of economic and environmental sustainability. An experimental study is performed to verify the practical implication of the model, and results are evaluated through a sensitivity analysis. Important managerial insights and graphical illustrations are provided to elaborate the model. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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18 pages, 3150 KiB  
Article
Imperfect Multi-Stage Lean Manufacturing System with Rework under Fuzzy Demand
by Muhammad Tayyab, Biswajit Sarkar and Bernardo Nugroho Yahya
Mathematics 2019, 7(1), 13; https://0-doi-org.brum.beds.ac.uk/10.3390/math7010013 - 24 Dec 2018
Cited by 41 | Viewed by 5034
Abstract
Market conditions fluctuate abruptly in today’s competitive environment and leads to imprecise demand information. In particular, market demand data for freshly launched products is highly uncertain. Further, most of the products are generally manufactured through complex multi-stage production systems that may produce defective [...] Read more.
Market conditions fluctuate abruptly in today’s competitive environment and leads to imprecise demand information. In particular, market demand data for freshly launched products is highly uncertain. Further, most of the products are generally manufactured through complex multi-stage production systems that may produce defective items once they enter the out-of-control state. Production management of a multi-stage production system in these circumstances requires robust production model to reduce system costs. In this context, this paper introduces an imperfect multi-stage production model with the consideration of defective proportion in the production process and uncertain product demand. Fuzzy theory is applied to handle the uncertainty in demand information and the center of gravity approach is utilized to defuzzify the objective function. This defuzzified cost objective is solved through the analytical optimization technique and closed form solution of optimal lot size and minimum cost function are obtained. Model analysis verifies that it has successfully achieved global optimal results. Numerical experiment comprising of three examples is conducted and optimal results are analyzed through sensitivity analysis. Results demonstrate that larger lot sizes are profitable as the system moves towards a higher number of stages. Sensitivity analysis indicates that the processing cost is the most influencing factor on the system cost function. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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12 pages, 1571 KiB  
Article
Product Channeling in an O2O Supply Chain Management as Power Transmission in Electric Power Distribution Systems
by Biswajit Sarkar, Muhammad Tayyab and Seok-Beom Choi
Mathematics 2019, 7(1), 4; https://0-doi-org.brum.beds.ac.uk/10.3390/math7010004 - 20 Dec 2018
Cited by 13 | Viewed by 6347
Abstract
With the aim of delivering goods and services to customers, optimal delivery channel selection is a significant part of supply chain management. Several heuristics have been developed to solve the variants of distribution center allocation and vehicle routing problems. In reality, small-scale suppliers [...] Read more.
With the aim of delivering goods and services to customers, optimal delivery channel selection is a significant part of supply chain management. Several heuristics have been developed to solve the variants of distribution center allocation and vehicle routing problems. In reality, small-scale suppliers cannot afford research and development departments to optimize their distribution networks. In this context, this research work develops a model for an online to offline (O2O) supply chain management network of a small-scale household electric components manufacturer for delivering goods to its distribution centers and retailers. Retailers are acquired by the company through investment in the O2O channel of e-commerce. Electric power transmission and distribution is considered as representative of the product distribution network. A model is developed using a combination of the supply chain management technique and power transmission terminologies. The constrained linear programming model is solved through the linear programming tool of the LINGO optimization software and the global optimum results for the proposed quantity allocation problem are achieved. A numerical experiment is provided to illustrate the practical applicability of the model and the optimal results are analyzed for model robustness. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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19 pages, 895 KiB  
Article
A Model and an Algorithm for a Large-Scale Sustainable Supplier Selection and Order Allocation Problem
by Jong Soo Kim, Eunhee Jeon, Jiseong Noh and Jun Hyeong Park
Mathematics 2018, 6(12), 325; https://0-doi-org.brum.beds.ac.uk/10.3390/math6120325 - 13 Dec 2018
Cited by 14 | Viewed by 3568
Abstract
We consider a buyer’s decision problem of sustainable supplier selection and order allocation (SSS & OA) among multiple heterogeneous suppliers who sell multiple types of items. The buyer periodically orders items from chosen suppliers to refill inventory to preset levels. Each supplier is [...] Read more.
We consider a buyer’s decision problem of sustainable supplier selection and order allocation (SSS & OA) among multiple heterogeneous suppliers who sell multiple types of items. The buyer periodically orders items from chosen suppliers to refill inventory to preset levels. Each supplier is differentiated from others by the types of items supplied, selling price, and order-related costs, such as transportation cost. Each supplier also has a preset requirement for minimum order quantity or minimum purchase amount. In the beginning of each period, the buyer constructs an SSS & OA plan considering various information from both parties. The buyer’s planning problem is formulated as a mathematical model, and an efficient algorithm to solve larger instances of the problem is developed. The algorithm is designed to take advantage of the branch-and-bound method, and the special structure of the model. We perform computer experiments to test the accuracy of the proposed algorithm. The test result confirmed that the algorithm can find a near-optimal solution with only 0.82 percent deviation on average. We also observed that the use of the algorithm can increase solvable problem size by about 2.4 times. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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16 pages, 1145 KiB  
Article
Sustainable Supplier Selection Process in Edible Oil Production by a Hybrid Fuzzy Analytical Hierarchy Process and Green Data Envelopment Analysis for the SMEs Food Processing Industry
by Chia-Nan Wang, Van Thanh Nguyen, Hoang Tuyet Nhi Thai, Ngoc Nguyen Tran and Thi Lan Anh Tran
Mathematics 2018, 6(12), 302; https://0-doi-org.brum.beds.ac.uk/10.3390/math6120302 - 4 Dec 2018
Cited by 54 | Viewed by 5500
Abstract
Today, business organizations are facing increasing pressure from a variety of sources to operate using sustainable processes. Thus, most companies need to focus on their supply chains to enhance sustainability to meet customer demands and comply with environmental legislation. To achieve these goals, [...] Read more.
Today, business organizations are facing increasing pressure from a variety of sources to operate using sustainable processes. Thus, most companies need to focus on their supply chains to enhance sustainability to meet customer demands and comply with environmental legislation. To achieve these goals, companies must focus on criteria that include CO2 (carbon footprint) and toxic emissions, energy use and efficiency, wastage generations, and worker health and safety. As in other industries, the food processing industry requires large inputs of resources, which results in several negative environmental effects; thus, decision-makers have to evaluate qualitative and quantitative factors. This work identifies the best supplier for edible oil production in the small and medium enterprise (SME) food processing industry in Vietnam. This study also processes a hybrid multicriteria decision-making (MCDM) model using a fuzzy analytical hierarchy process (FAHP) and green data envelopment analysis (GDEA) model to identify the weight of all criteria of a supplier’s selection process based on opinions from company procurement experts. Subsequently, GDEA is applied to rank all potential supplier lists. The primary objective of this work is to present a novel approach which integrates FAHP and DEA for supplier selection and also consider the green issue in edible oil production in uncertain environments. The aim of this research is also to provide a useful guideline for supplier selection based on qualitative and quantitative factors to improve the efficiency of supplier selection in the food industry and other industries. The results reveal that Decision-Making Unit 1 (DMU 1), DMU 3, DMU 7, and DMU 9 are identified as extremely efficient for five DEA models, which are the optimal suppliers for edible oil production. The contributions of this research include a proposed MCDM model using a hybrid FAHP and GDEA model for supplier selection in the SME food processing industry under a fuzzy environment conditions in Vietnam. This research also is part of an evolution of a new hybrid model that is flexible and practical for decision-makers. In addition, the research also provides a useful guideline in supplier selection in the food processing industry and a guideline for supplier selection in other industries. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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35 pages, 4691 KiB  
Article
Supply Chain with Customer-Based Two-Level Credit Policies under an Imperfect Quality Environment
by Aditi Khanna, Aakanksha Kishore, Biswajit Sarkar and Chandra K. Jaggi
Mathematics 2018, 6(12), 299; https://0-doi-org.brum.beds.ac.uk/10.3390/math6120299 - 3 Dec 2018
Cited by 18 | Viewed by 3187
Abstract
The present model develops a three-echelon supply chain, in which the manufacturer offers full permissible delay to the whole seller, while the latter, in turn, adopts distinct trade credit policies for his subsequent downstream retailers. The type of credit policy being offered to [...] Read more.
The present model develops a three-echelon supply chain, in which the manufacturer offers full permissible delay to the whole seller, while the latter, in turn, adopts distinct trade credit policies for his subsequent downstream retailers. The type of credit policy being offered to the retailers is decided on the basis of their past profiles. Hence, the whole seller puts forth full and partial permissible delays to his old and new retailers respectively. This study considers bad debts from the portion of new retailers who fail to make up for the delayed part of the partial payment. The analysis shows that it is beneficial for the whole seller to make shorter contracts, particularly with new retailers, along with the fetching of a higher fraction of initial purchase cost from them. In addition to the above-described scenario, the lot received by the whole seller from the manufacturer is not perfect, and it contains some defects for which he employs an inspection process before selling the items to the retailers. In order to make the study more realistic, Type-I, as well as Type-II misclassification errors, and the case of out-of-stock are considered. The impact of Type-I error has been found to be crucial in the study. The present paper determines the optimal policy for the whole seller by maximizing the expected total profit per unit time. For the optimality of the solution, theoretical results are provided. Finally, a numerical example and a sensitivity analysis are done to validate the model. Full article
(This article belongs to the Special Issue Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain)
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