Supply Chain Management Models: Forward, Reverse, Uncertain, and Intelligent PDF by Hamed Fazlollahtabar

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Supply Chain Management Models: Forward, Reverse, Uncertain, and Intelligent: Foundations with Case Studies
By Hamed Fazlollahtabar
Supply Chain Management Models: Forward, Reverse, Uncertain, and Intelligent

Contents
Preface............................................................................xiii
Acknowledgments...................................................xvii
Author..........................................................xix
I Forward Supply Chain Models
1 Multi-Layer Multi-Product Supply Chain: Strategic Marketing Model......................3
1.1 Introduction....................................................................................................................3
1.2 Problem Definition.........................................................................................................4
1.3 Strategic Marketing Model...........................................................................................4
1.3.1 Quantitative Strategic Planning Matrix (QSPM)........................................10
1.3.2 Analytic Hierarchy Process (AHP)...............................................................10
1.4 Discussions...............................................................................15
References.....................................................................15 

2 Multi-Layer and Multi-Product Supply Chain: Performance Evaluation Model.....17
2.1 Introduction..................................................................................................................17
2.2 Problem Definition.......................................................................................................19
2.3 Data Mining Model.....................................................................................................20
2.4 Discussions...................................................................................................................22
References..............................................................................23 

3 Multi-Layer Supply Chain: Mathematical Evaluation Model......................................25
3.1 Introduction..................................................................................................................25
3.2 Problem Definition.......................................................................................................27
3.3 Mathematical Model for Performance Evaluation..................................................27
3.3.1 Objective Functions........................................................................................28
3.3.2 Constraints.......................................................................................................29
3.4 An Example...................................................................................................................30
3.5 Discussions...................................................................................................................32
Bibliography............................................................35 

4 Supply Chain Inventory Planning: System Dynamics Model....................................37
4.1 Introduction..................................................................................................................37
4.2 Problem Definition.......................................................................................................39
4.3 System Dynamic Model..............................................................................................40
4.3.1 Dynamic Hypothesis......................................................................................40
4.3.2 Casual-Loop Diagram (CLD)........................................................................41
4.3.3 Goal Seeking Loop of Sale–Inventory.........................................................41
4.3.4 Goal Seeking Loop of Transmission............................................................41
4.3.5 Goal Seeking Loop of Transmission Material............................................42
4.3.6 Growth Loop of Sale-Transfer.......................................................................43
4.3.7 Growth Loop of Sales-Production................................................................43
4.3.8 State-Flow Diagram........................................................................................43
4.4 Discussions...................................................................................................................46
References............................................................46 

5 Supplier Evaluation: Six Sigma Model.............................................................................47
5.1 Introduction..................................................................................................................47
5.2 Problem Definition.......................................................................................................48
5.3 Process Control Model................................................................................................49
5.3.1 Quality Control...............................................................................................49
5.3.2 C-Chart.............................................................................................................50
5.3.3 Process Capability Index...............................................................................50
5.3.4 Normalization Process...................................................................................52
5.4 Discussions...................................................................................................................53
References................................................................................................................................53
6 Supplier Selection and Order Allocation: Process Performance Index......................55
6.1 Introduction..................................................................................................................55
6.2 Problem Definition.......................................................................................................57
6.3 Integrated Performance Evaluation Model..............................................................58
6.3.1 X-bar/S Chart..................................................................................................58
6.3.2 Process Performance Index...........................................................................59
6.3.3 Objective Functions........................................................................................60
6.3.4 The AHP...........................................................................................................60
6.3.5 Construction of the Hierarchy......................................................................61
6.3.6 Priority Setting................................................................................................61
6.3.7 Logical Consistency........................................................................................62
6.3.8 Identify the Relationships and the Weights of Criteria with AHP..........62
6.3.9 From Bi-Objective to Mono-Objective.........................................................65
6.4 Numerical Illustrations...............................................................................................66
6.5 Discussions...................................................................................................................68
References................................................................................................................................69
7 Supply Chain: Product Life Cycle Model.........................................................................73
7.1 Introduction..................................................................................................................73
7.2 Problem Definition.......................................................................................................76
7.3 Product Life Cycle Model...........................................................................................76
7.3.1 Objective Functions........................................................................................77
7.3.2 Constraints.......................................................................................................78
7.4 Discussions...................................................................................................................80
References................................................................................................................................80
8 Multi Echelon Supply Chain: CRM Model......................................................................83
8.1 Introduction..................................................................................................................83
8.2 Problem Definition.......................................................................................................87
8.3 Integrated Customer Related Life Cycle Model.......................................................88
8.3.1 Objective Functions........................................................................................89
8.3.2 Constraints.......................................................................................................89
8.3.3 Linearization...................................................................................................90
8.3.4 Weighing the Objectives by AHP.................................................................91
8.3.5 Construction of the Hierarchy......................................................................91
8.3.6 Priority Setting................................................................................................91
8.3.7 Consistency Check..........................................................................................92
8.4 Numerical Example.....................................................................................................95
8.5 Discussions.................................................................................................................100
References..............................................................................................................................101
9 Supply Chain: Activity-Based Costing, Pricing and Earned Value..........................103
9.1 Introduction................................................................................................................103
9.2 Problem Definition.....................................................................................................104
9.2.1 Activity Based Costing................................................................................105
9.2.2 Costs of Manufacturing...............................................................................105
9.2.3 The Earned Value..........................................................................................105
9.3 Pricing Model.............................................................................................................106
9.3.1 Calculate the Costs of Supply Chain Based on Activity Based Costing...........................................................................................................107
9.3.2 Customer Demands......................................................................................107
9.4 Discussions.................................................................................................................107
References..............................................................................................................................107
10 Multi-Product Supply Chain: Customer Utility and Risk Model.............................109
10.1 Introduction................................................................................................................109
10.2 Problem Definition.....................................................................................................112
10.3 Utility-Based Model...................................................................................................112
10.3.1 Designing Cost Functions...........................................................................112
10.3.2 Functions of Manpower Costs....................................................................112
10.3.3 The Function of Suppliers’ Manpower Cost.............................................112
10.3.4 The Function of Manufacturers’ Manpower............................................113
10.3.5 Functions of Transportation Costs.............................................................113
10.3.6 Transportation Costs of Raw Materials from Suppliers to Manufacturers...............................................................................................113
10.3.7 The Function of Goods’ Transportation Cost from Manufacturers to Consumers.................................................................................................114
10.3.8 Functions of Inventory Holding Costs......................................................114
10.3.9 The Function of Raw Material Holding Costs by Suppliers...................114
10.3.10 The Function of the Holding Cost of Products by Manufacturers........114
10.3.11 Function of Production Cost.......................................................................115
10.3.12 Product Pricing Based on Customers’ Demand and Willingness to Pay..............................................................................................................115
10.3.13 The Function of Profit...................................................................................116
10.3.14 Supply Chain Risk........................................................................................116
10.3.15 Inflation Rate Risk........................................................................................116
10.3.16 Exchange Rate Risk......................................................................................116
10.3.17 Competitors Risk..........................................................................................117
10.3.18 The Risk of Lost Sales...................................................................................117
10.3.19 The Function of Risk....................................................................................117
10.4 Numerical Study........................................................................................................118
10.4.1 Supply Chain Costs......................................................................................118
10.4.2 Calculation of the Customers’ Favorable Prices.......................................119
10.4.3 Calculating the Supply Chain Profit and the Risks.................................119
10.4.4 Calculating Supply Chain Favorable Price according to Supply Chain Profit Considering Risk....................................................................120
10.5 Discussions.................................................................................................................121
References..............................................................................................................................121
11 Flexible Supply Network: VRP Model............................................................................123
11.1 Introduction................................................................................................................123
11.2 Problem Definition.....................................................................................................125
11.3 Vehicle Routing Model..............................................................................................125
11.3.1 Objective Function........................................................................................127
11.3.2 Constraints.....................................................................................................127
11.4 Numerical Illustrations.............................................................................................131
11.5 Discussions.................................................................................................................133
References..............................................................................................................................133
12 Multi-Aspect Supply Chain: Depot-Customer-Depot Model....................................135
12.1 Introduction................................................................................................................135
12.2 Problem Definition.....................................................................................................137
12.3 Returning Vehicle Model..........................................................................................138
12.3.1 Objective Function........................................................................................139
12.3.2 Constraints.....................................................................................................140
12.3.3 Linearization.................................................................................................142
12.4 Numerical Illustration...............................................................................................143
12.5 Discussions.................................................................................................................143
References..............................................................................................................................149
13 Food Supply Chain: Two-Stage Model...........................................................................151
13.1 Introduction................................................................................................................151
13.2 Problem Definition.....................................................................................................152
13.3 Bi-Stage Model............................................................................................................152
13.3.1 Stage 1: Location-Allocation........................................................................155
13.3.1.1 Objective Function........................................................................155
13.3.1.2 Constraints.....................................................................................155
13.3.2 Stage 2: MDMTSP.........................................................................................156
13.3.2.1 Objective Function........................................................................156
13.3.2.2 Constraints.....................................................................................156
13.4 Numerical Illustration...............................................................................................157
13.5 Discussions.................................................................................................................160
References..............................................................................................................................160
14 Multi-Period Food Supply Chain: Time-Windows Model.........................................161
14.1 Introduction................................................................................................................161
14.2 Problem Definition.....................................................................................................163
14.3 Time-Windows Model...............................................................................................166
14.3.1 Objective Function........................................................................................168
14.3.2 Constraints.....................................................................................................168
14.4 Numerical Example...................................................................................................170
14.5 Discussions.................................................................................................................172
References..............................................................................................................................172
II Reverse Supply Chain Models
15 Return Items in a Multi-Layer Multi-Product Reverse Supply Chain: Clustering Model.................................................................................................................177
15.1 Introduction................................................................................................................177
15.2 Problem Definition.....................................................................................................179
15.3 Return Items’ Clustering Model..............................................................................180
15.4 Application Study......................................................................................................182
15.5 Discussions.................................................................................................................187
References..............................................................................................................................187
16 Sustainable Reverse Supply Chain: Customer Requirement Fulfillment Model......189
16.1 Introduction................................................................................................................189
16.2 Problem Definition.....................................................................................................191
16.3 Customers’ Requirement Model..............................................................................192
16.3.1 Sampling by Using STRATA Method........................................................195
16.3.2 Average Factors Weight................................................................................196
16.3.3 k-Means Algorithm.......................................................................................196
16.4 Application Study......................................................................................................197
16.4.1 Results of k-means Algorithm....................................................................197
16.4.2 Calculation and Determining the Mathematical Model Parameters....198
16.4.3 Using AHP for Multi-Objective Optimization.........................................200
16.4.4 Mathematical Model Results.......................................................................200
16.5 Discussions.................................................................................................................201
References..............................................................................................................................202
17 Multi-Layer Multi-Product Reverse Supply Chain: Defects and Pricing Model......203
17.1 Introduction................................................................................................................203
17.2 Problem Definition.....................................................................................................205
17.3 Defect Model...............................................................................................................207
17.3.1 The Mathematical Model.............................................................................208
17.3.2 The Willingness to Pay Function................................................................209
17.4 Computational Results..............................................................................................210
17.4.1 The Model Solutions.....................................................................................213
17.4.2 The Decision Variables.................................................................................213
17.5 Discussions.................................................................................................................214
References..............................................................................................................................215
18 Reverse Supply Chain Vehicle Routing Problem: Similarity Pattern Model.........217
18.1 Introduction................................................................................................................217
18.2 Problem Definition.....................................................................................................219
18.3 Similarity Pattern Model...........................................................................................221
18.4 Computational Results..............................................................................................223
18.5 Discussions.................................................................................................................224
References..............................................................................................................................225
19 Reverse Supply Chain: Waste Pricing Model................................................................227
19.1 Introduction................................................................................................................227
19.1.1 Reverse Supply Network.............................................................................228
19.1.2 Framework for Remanufacturing...............................................................229
19.2 Problem Definition.....................................................................................................230
19.3 Waste Collection Model............................................................................................231
19.3.1 Pricing.............................................................................................................234
19.4 Illustrative Example...................................................................................................235
19.5 Discussions.................................................................................................................240
References..............................................................................................................................241
20 Multiple Item Reverse Supply Chain: Comprehensive Mathematical Model........243
20.1 Introduction................................................................................................................243
20.2 Problem Definition.....................................................................................................245
20.3 Proposed Comprehensive Model............................................................................246
20.3.1 Mathematical Formulation..........................................................................248
20.3.2 Objective Function........................................................................................251
20.3.3 Constraints.....................................................................................................252
20.4 Analytical Example....................................................................................................253
20.5 Discussions.................................................................................................................257
References..............................................................................................................................257
III Uncertain and Intelligent Supply Chain Models
21 Multi-Layer Electronic Supply Chain: Intelligent Information System..................261
21.1 Introduction................................................................................................................261
21.2 Problem Definition.....................................................................................................263
21.3 Intelligent Model........................................................................................................264
21.3.1 Clustering Algorithms.................................................................................265
21.3.2 Distance Measure.........................................................................................266
21.4 Discussions.................................................................................................................269
References..............................................................................................................................269
22 Multi-Layer Electronic Supply Chain: Agent-Based Model.......................................271
22.1 Introduction................................................................................................................271
22.2 Problem Definition.....................................................................................................272
22.3 Agent-Based Model....................................................................................................273
22.3.1 Agent-Based Supplier Layer........................................................................273
22.3.2 Agent-Based Manufacturer Layer..............................................................273
22.3.3 Agent-Based Distributor-Retailer Layer....................................................274
22.3.4 Agent-Based Retailer-Customer Layer......................................................274
22.4 Discussions.................................................................................................................275
References..............................................................................................................................277
23 Multi-Layer Electronic Supply Chain: Dynamic Route Selection in an Agent Model.....................................................................................................................................279
23.1 Introduction................................................................................................................279
23.2 Problem Definition.....................................................................................................280
23.3 Route Selection Model...............................................................................................281
23.3.1 Information Flow Interaction......................................................................281
23.3.2 Element Scoring Threshold.........................................................................284
23.3.3 A Dynamic Program for the Optimal Route............................................285
23.4 Numerical Example...................................................................................................286
23.5 Discussions.................................................................................................................289
References..............................................................................................................................289
24 Electronic Supply Chain Management System: Electronic Market, Customer Satisfaction, and Logistic Model......................................................................................291
24.1 Introduction................................................................................................................291
24.2 Problem Definition.....................................................................................................292
24.3 Web-Based Model......................................................................................................294
24.4 Numerical Illustration...............................................................................................299
24.4.1 Input Data......................................................................................................299
24.5 Discussions.................................................................................................................301
References..............................................................................................................................303
25 Electronic Supply Chain System: Fuzzy Logistic Model............................................305
25.1 Introduction................................................................................................................305
25.1.1 Ranking Function.........................................................................................305
25.2 Problem Definition.....................................................................................................306
25.3 Fuzzy Logistic Model................................................................................................306
25.3.1 Mathematical Model.....................................................................................307
25.4 Discussions.................................................................................................................310
References..............................................................................................................................311

26 Multiple Supply Network: Fuzzy Mathematical Programming Model...................313
26.1 Introduction................................................................................................................313
26.2 Problem Definition.....................................................................................................314
26.3 Fuzzy Mathematical Model......................................................................................316
26.3.1 Fuzzy Mathematical Programming...........................................................316
26.3.2 Objective Functions......................................................................................317
26.3.3 Constraints.....................................................................................................317
26.4 Comprehensive Example..........................................................................................321
26.5 Discussions.................................................................................................................339
References..............................................................................................................................339
27 Facilities Relocation Problem in Supply Chain: Genetic Optimization Model.....341
27.1 Introduction................................................................................................................341
27.2 Problem Definition.....................................................................................................343
27.3 Genetic Algorithm Model.........................................................................................345
27.3.1 Objective Function........................................................................................347
27.3.2 Optimization by Genetic Algorithm..........................................................351
27.4 Discussions.................................................................................................................352
References..............................................................................................................................354

28 Reconfigurable Supply Chain: Immunity-Based Control Model..............................357
28.1 Introduction................................................................................................................357
28.2 Problem Description..................................................................................................358
28.2.1 Artificial Immune Systems..........................................................................358
28.3 Immunity-Based Model............................................................................................359
28.3.1 An Immunity-Based Control Framework.................................................360
28.3.2 The Control Framework...............................................................................361
28.3.3 Strategic Behavioral Control for Facilities Relocation.............................364
28.3.4 The Algorithm...............................................................................................366
28.4 Discussions.................................................368
References............................................................................368
Index......................................................371

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