Search

The efficiency and responsiveness of supply chains are vitally dependent on inventory replenishment and transportation decisions. In this paper, we study a supply chain consisting of a single retailer ordering seasonal products within the newsvendor framework. The primary objective of the paper is to investigate the retailer's decision-making process, aimed at determining the optimal replenishment quantities and selecting the appropriate mix and size of the truck fleet. Initially, we formulate a mathematical model where the retailer exclusively manages a limited fleet of its own trucks for inbound transportation of a single seasonal product. In this context, we determine a lower breakeven point for the fixed transportation cost than what has been previously proposed in the literature. Subsequently, we examine a commonly encountered transportation scenario where the retailer has the opportunity to expand its fleet size by leasing trucks from the external market. The outcomes of the numerical example indicates that the flexibility resulting from the utilization of different types of trucks can lead to reduced overall costs. We also address the practical transportation problem of efficiently shipping various seasonal products solely with the retailer's own trucks. For this complex problem, we propose an optimal solution procedure based on Lagrangian method. We show that the joint replenishment of multiple products results in cost savings and enhances utilization of the trucks' capacities. [ABSTRACT FROM AUTHOR]

In today's competitive and environmentally conscious business landscape, companies constantly seek more efficient ways to conduct their daily operations. Horizontal Logistics Collaboration (HLC), in which firms at the same supply chain level share resources such as trucks and information, has proven effective in achieving synchronized deliveries, optimizing transport equipment usage, and reducing carbon footprint. This study implements HLC between two neighboring companies ordering different products from the same supplier. The study adopts the can-order policy, employing three threshold values to define each company's ordering policy and potential joint orders. To better reflect real-world operational aspects, a simulation-based optimization approach is employed, allowing experimentation with various realistic scenarios. The developed model assumes stochastic demand and lead time for both companies and assesses the benefits of HLC from both economic and environmental standpoints, one at a time. Computational experiments consistently demonstrate cost savings through collaboration, especially when both companies are similar with low unit holding costs. From an environmental standpoint, adopting the collaborative model can reduce carbon emissions by up to 27%, particularly when both companies are identical and have low demand and low products' weight. Statistical analysis using paired t-tests confirms the significant differences in cost and carbon emissions after implementing HLC. [ABSTRACT FROM AUTHOR]

This paper adopts a holistic approach to the integrated water supply chain system, considering water-related aspects including production, technology selection, distribution routes, and storage, among others. It also introduces a multi-period comprehensive mathematical model that assists decision makers in jointly optimizing a multitude of decisions pertaining to the water supply chain, ranging from strategic to tactical ones. In particular, the former address the installation of new desalination plants along with their operational capacity, capacity expansion of existing plants and infrastructure assets (storage and distribution), as well as the selection of the best-suited desalination technologies. On the other hand, tactical decisions consider issues such as the allocation of water resources among end users, production level of desalinated water at the different plants, and storage levels across various demand zones. All these decisions are being optimized in every period towards minimizing financial and environmental costs throughout the planning horizon. To illustrate the model's practical relevance and assess its validity, a case study focused on an Emirate in the United Arab Emirates (UAE). Results highlight the need for increased desalination capacity over the next 15 years to match growing demand. The study pinpoints the timings for desalination facility expansions, compensating for decreased capacity due to degradation or retirement. The study underscores the superiority of reverse osmosis technology over other desalination options. [ABSTRACT FROM AUTHOR]