Competition and disruption in a dynamic urban supply chain

Rapid changes and complexities in business environments have stressed the importance of interactions between partners and competitors, leading supply chains to become the most important element of contemporary business environments. There is a concomitant need for foresight in describing supply chain performance in all operating environments, including those involving punctuated disruptions. Furthermore, the urban metropolis is now widely recognized to be an environment which is especially vulnerable to supply chain disruptions and for which integrated supply chain decisions can produce very substantial net benefits. Accordingly, this paper presents a dynamic supply chain network model formulated as a differential variational inequality; the model is fashioned to allow consideration of supply chain disruption threats to producers, freight carriers, and retail enterprises. The DVI is solved using a fixed-point algorithm, and a simple numerical example, introduced to illustrate how the impacts of supply chain disruptions may be quantified, is presented.     

Integrating intermodal transport with logistics: a case study of the UK retail sector

Retail traffic is one of the main drivers for the growth of intermodal transport services in the UK. This paper examines the key factors underpinning this modal shift in order to learn lessons for other market and geographical contexts. Since successful retail intermodal logistics involves many actors, this paper is based on semi-structured interviews with major UK retailers, third-party logistics providers (3PLs) and rail operators, supplemented by document analysis. The qualitative data are analysed via a conceptual framework derived from the literature. Despite past successes and the presence of drivers for future growth, the paper identifies many operational issues without current solutions and the presence of ongoing public subsidy. The major conclusion is that the importance of 3PLs, aggregation and multi-user platforms must be recognised by transport planners in supporting the use of intermodal transport by retailers and other large shippers.     

Eco-design of transportation in sustainable supply chain management: A DEA-like method

This study addresses the issue of eco-design for transportation in sustainable supply chain management (SSCM). Data envelopment analysis (DEA) is adopted and extended to construct a model for this application. This proposed model, together with the tractable algorithm developed in this research, can provide stakeholders with a Pareto Optimal transportation strategy. This derived transportation strategy can help stakeholders realize certain transportation goals with less resource consumption and pollution emission. The discussion presented leads to a heuristic Joint Transportation Policy and concludes with two useful suggestions for putting the strategy into practice. The proposed model was used in an empirical study of design sustainable transportation mechanism for one air-condition manufacturer in China to transport its products as well, the analysis further demonstrating the theoretical and practical value of this research.     

Quasi-landlord port financing in China: Features,practice and a contract theory analysis

Since the 1970s and 80s, landlord port has been the dominant port financing model in western large and medium-sized container ports. In China, many prospective port projects have also explored a landlord port financing model. However, some evidence suggests that landlord port financing in China is a variant of the international mainstream landlord port financing model. Based on an explanation of their unique features and practices, this paper analyzes the Chinese quasi-landlord port financing model from a contract theory perspective, in which it can be viewed as a double-level principal–agent relationship and two-layer profit distribution contract with three participants: the state-owned assets administration department, the port investment company and the operators. Furthermore, the results show that in the Chinese quasi-landlord port financing model, whether in the case of both joint venture and port land lease (fixed rent), or in the case of both joint venture and port land transfer, the optimal incentive scheme is the same as in the international landlord port financing model with profit sharing rent or mixed rent.     

Estimation of cost and CO2 emissions with a sustainable cross-border supply chain in the automobile industry: A case study of Thailand and neighboring countries

CO₂ emissions are increasing because of the growth in the cross-border supply chain, which is leading the locations of assembly plants and suppliers to spread across a wider area. Given that one passenger vehicle needs more than 20,000 components and parts, the automobile industry exploits the cross-border supply chain. Recently, the free cross-border movement of people, goods, capital, and information has accelerated in Asia. Therefore, a sustainable cross-border supply chain is required to reduce both CO₂ emissions and cost. This study estimates total CO₂ emissions per vehicle including production and transportation processes in Thailand and neighboring countries and the change in CO₂ emissions based on future policy scenarios that consider the automobile market and locational conditions in 2030. The results show that locating production close to the place of consumption and the electricity emissions factors in each country should be considered.     

Sustainable cold supply chain management under demand uncertainty and carbon tax regulation

Increasing awareness of sustainability in supply chain management has prompted organizations and individuals to consider environmental impacts when managing supply chains. The issues concerning environmental impacts are significant in cold supply chains due to substantial carbon emissions from storage and distribution of temperature-sensitive product. This paper investigates the impact of carbon emissions arising from storage and transportation in the cold supply chain in the presence of carbon tax regulation, and under uncertain demand. A two-stage stochastic programming model is developed to determine optimal replenishment policies and transportation schedules to minimize both operational and emissions costs. A matheuristic algorithm based on the Iterated Local Search (ILS) algorithm and a mixed integer programming is developed to solve the problem in realistic sizes. The performance and robustness of the matheuristic algorithm are analyzed using test instances in various sizes. A real-world case study in Queensland, Australia is used to demonstrate the application of the model. The results highlight that higher emissions price does not always contribute to the efficiency of the cold supply chain system. Furthermore, the analyses indicate that using heterogeneous fleet including light duty and medium duty vehicles can lead to further cost saving and emissions reduction.     

A carbon footprint-based closed-loop supply chain model under uncertainty with risk analysis: A case study

The management of products’ end-of-life and the recovery of used products has gained significant importance in recent years. In this paper, we address the carbon footprint-based problem that arises in a closed-loop supply chain where returned products are collected from customers. These returned products can either be disposed of or be remanufactured to be resold as new ones. Given this environment, an optimization model for a closed-loop supply chain (CLSC) in which carbon emission is expressed in terms of environmental constraints, i.e., carbon emission constraints, is developed. These constraints aim to limit the carbon emission per unit of product supplied with different transportation modes. Here, we design a closed-loop network where capacity limits, single-item management and uncertainty on product demands and returns are considered. First, fuzzy mathematical programming is introduced for uncertain modeling. Then, the statistical approach to the possibility to synthesize fuzzy information is utilized. Therefore, using a defined possibilistic mean and variance, we transform the proposed fuzzy mathematical model into a crisp form to facilitate efficient computation and analysis. Finally, the risk caused by violating the estimated resource constraints is analyzed so that decision makers (DMs) can trade off between the expected cost savings and the expected risk. We utilize data from a company located in Iran.     

Shipment forecasting for supply chain collaborative transportation management using grey models with grey numbers

The sharing of forecasts is vital to supply chain collaborative transportation management (CTM). Shipment forecasting is fundamental to CTM, and is essential to carrier tactical and operational planning processes such as network planning, routing, scheduling, and fleet planning and assignment. By applying and extending grey forecasting theory, this paper develops a series of shipment forecasting models for supply chain CTM. Grey time-series forecasting and grey systematic forecasting models are developed for shipment forecasting under different collaborative frameworks. This paper also integrates grey numbers with grey models for analyzing shipment forecasting under partial information sharing in CTM frameworks. An example of an integrated circuit (IC) supply chain and relevant data are provided. The proposed models yield more accurate prediction results than regression, autoregressive integrated moving average (ARIMA), and neural network models. Finally, numerical results indicate that as the degree of information sharing increases under CTM, carrier prediction accuracy increases. This paper demonstrates how the proposed forecasting models can be applied to the CTM system and provides the theoretical basis for the forecasting module developed for supply chain CTM.     

Multi-period planning of closed-loop supply chain with carbon policies under uncertainty

Climate change and greenhouse gases emissions have caused countries to implement various carbon regulatory mechanisms in some industrial sectors around the globe to curb carbon emissions. One effective method to reduce industry environmental footprint is the use of a closed-loop supply chain (CLSC). The decision concerning the design and planning of an optimal network of the CLSC plays a vital role in determining the total carbon footprint across the supply chain and also the total cost. In this context, this research proposes an optimization model for design and planning a multi-period, multi-product CLSC with carbon footprint consideration under two different uncertainties. The demand and returns uncertainties are considered by means of multiple scenarios and uncertainty of carbon emissions due to supply chain related activities are considered by means of bounded box set and solve using robust optimization approach. The model extends further to investigate the impact of different carbon policies such as including strict carbon cap, carbon tax, carbon cap-and-trade, and carbon offset on the supply chain strategic and operational decisions. The model captures trade-offs that exist among supply chain total cost and carbon emissions. Also, the proposed model optimizes both supply chain total cost and carbon emissions across the supply chain activities. The numerical results reveal some insightful observations with respect to CLSC strategic design decisions and carbon emissions under various carbon policies and at the end we highlighted some managerial insights.     

Assessing carbon footprint and energy efficiency in competing supply chains: Review - Case studies and benchmarking

This article compares the energy consumption and CO₂ emissions of supply chains in Belgium, France and UK looking in particular at, jeans, yogurts, apples, tomatoes and furniture. We use a generic methodology that allows comparability across the supply chain of products, supply chains, and countries. Our benchmarking show relatively high emissions for maritime transport and the consumer leg, while logistics activities such as storage and road freight exhibit relatively low emissions. The influences of distance, retail type, area density and consumer behaviour are also examined.     

Understanding connectivity to international markets: a systematic review

Improving freight connectivity is increasingly a topic at the centre of the international trade and transport policy agendas. An examination of available documents and studies in both the policy-making and the academic fields shows that the concept of freight connectivity has often been defined in different ways, and thus has taken a variety of meanings. This poses the question on what connectivity is and what are its determinants in the context of international trade. We are not aware of any studies that have analysed, in a systematic way, the different perspectives and determinants of freight connectivity so as to increase access to international markets. This paper seeks to fill this gap by performing a systematic literature review that spans disciplines such as Transport Engineering, Transport and International Economics, and Supply Chain Management. The outcome of this examination is a multidisciplinary framework that hopefully will help stakeholders to understand freight connectivity to international markets better, as well as guide future research and analysis in policy-making.     

Characteristics of European inland ports: A statistical analysis of inland waterway port development in Dutch municipalities

Most scientific attention in port studies centers on deep-sea ports, in particular container ports. In our paper, in contrast, we focus our attention on the characteristics of inland waterway ports in a European context. This is an overlooked part in the scientific literature on inland port development, which is up to now mainly concerned with US-based understandings of inland ports. We try to broaden the application of the inland port concept by explaining the development of inland ports in terms of inland waterway bounded cargo throughput. Based on a large-scale quantitative dataset of inland port development in Dutch municipalities we perform various statistical analyses to arrive at a more detailed understanding of the question: What are the characteristics of European inland waterway ports and what transport and economic factors influence cargo throughput on the municipal level? The results in particular highlight the importance of the presence of a container terminal, the diversity in types of goods which are being handled by the inland port and the accessibility of the inland port relative to the regional motorway network as important factors in explaining the size and growth of inland ports. Interestingly, the popular claim in policy of ‘investments in inland port development leading to employment growth’ cannot be confirmed.     

Coordination problems in container barging in the port of Rotterdam: an institutional analysis

Container barging has gained in importance in port-related transport along with the need for sustainable transport. Nevertheless, coordination problems between terminal operator and barge operator exist, and performance lags behind. This paper analyses factors that may hinder or stimulate a better future performance of container barging in the port of Rotterdam. A case study is accomplished and guided by a framework rooted in Institutional Economics. Despite favourable conditions set by governments and the port authority, the share of container barging has hardly grown. The container barging sector in Rotterdam is embedded in a history with many alliances, a high degree of organisation, and a good track record in the development of institutional arrangements to solve coordination problems. However, the present contractual relations in the transport chain form an inadequate condition. From a theoretical perspective, the paper shows the value of studying port-related transport chains by acknowledging their institutional context.     

Analytic hierarchy process application in selecting the mode of transport for a logistics company

As a multi‐criteria decision‐making (MCDM) method, the analytic hierarchy process (AHP) has been used considerably to solve hierarchical or network‐based decision problems in socio‐economic fields. Following an in‐depth explanation of the transport function in logistics and an overview of the MCDM methods, the AHP model is employed in the paper for a logistics company in selecting the most suitable way of transportation between two given locations in Turkey. The criteria used in the selection of transportation modes are identified as the cost, speed, safety, accessibility, reliability, environmental friendliness, and flexibility. Several cost parameters (transportation, storage, handling, bosphorus crossover) are incorporated into the decision‐making process. The application is carried out in instructional character. The results of the study indicate that the railway transportation, which is not widely used in Turkey, is also an alternative and suitable means of transportation. Copyright © 2013 John Wiley & Sons, Ltd.     

Framing the Nexus of Globalisation,Logistics and Manufacturing in Europe

Abstract

Under the ongoing influence of globalisation, supply chains have changed significantly. New logistics and manufacturing systems have emerged, causing longer transport distances and increasing transport emissions. The existing research into the sustainability impacts of freight transport has largely viewed it as being a macro-level economic and political phenomenon and has ignored the interdependencies amongst micro-level economic actors, including firms and businesses in the private sector. In this paper, we presume that the lack of conceptualisation of freight transport in relation to wider institutional contexts and firm behaviour results in the lack of a holistic approach to understanding freight governance in the face of globalisation. We argue for the use of institutional economic geography lenses to elucidate the distribution networks of emerging logistics and manufacturing practices and its implications for freight transport. We illustrate our argument through a broad look at the European logistics and manufacturing practices and global production.     

Short Sea Shipping in Supply Chains. A Strategic Assessment

The feasibility of implementing short sea shipping (SSS) between two specific ports has been typically approached on the operative level, in terms of time and cost for a specific origin–destination pair. This paper focuses on the strategic level. Particularly, its goal is to study the potential of SSS in different industrial sectors by analysing their freight-distribution strategies. To achieve the objective, some standard freight-distribution strategies are defined based on the requirements of the industry, the demand and the product being transported. The information is complemented with a survey of more than 100 Spanish companies distributing internationally. As a result it is concluded that there are economies of scale related to the size of the carrier (the ship) and its capacity to absorb the variability in demand. This potential increases with the cargo value. Additionally, a framework of supply/distribution chains is provided which can help to identify potential customers/sectors and the feasibility of new potential shipping lines. The value of this paper resides in its approach (strategic, instead of operational/tactical), and the solid groundwork point provided for future researchers.     

Robust optimization for emergency logistics planning: Risk mitigation in humanitarian relief supply chains

This paper proposes a methodology to generate a robust logistics plan that can mitigate demand uncertainty in humanitarian relief supply chains. More specifically, we apply robust optimization (RO) for dynamically assigning emergency response and evacuation traffic flow problems with time dependent demand uncertainty. This paper studies a Cell Transmission Model (CTM) based system optimum dynamic traffic assignment model. We adopt a min–max criterion and apply an extension of the RO method adjusted to dynamic optimization problems, an affinely adjustable robust counterpart (AARC) approach. Simulation experiments show that the AARC solution provides excellent results when compared to deterministic solution and sampling based stochastic programming solution. General insights of RO and transportation that may have wider applicability in humanitarian relief supply chains are provided.     

Evaluating sustainability of supply chains by two-stage range directional measure in the presence of negative data

Assessing sustainability of supply chains is a critical and increasingly complex problem. In recent years sustainability has received more attention in supply chain management (SCM) literature with triple bottom lines including social, environmental, and economic factors. Conventional data envelopment analysis (DEA) models consider decision making units (DMUs) as black boxes that consume a set of inputs to produce a set of outputs and do not take into consideration internal interactions of DMUs. Two-stage DEA models deal with such DMUs. However, existing two-stage DEA models are applicable only in technologies characterized by positive inputs/outputs. This paper aims to build and present a new two-stage DEA model considering negative input-intermediate-output data. Some numerical examples along with some theorems and properties are given to show capability of proposed method. The proposed ideas are used in a case study where 29 Iranian supply chains producing equipment of expendable medical devices are evaluated in terms of sustainability.     

The capitalization of subway access in home value: A repeat-rentals model with supply constraints in Beijing

Urban rail transit enhances accessibility of the communities it serves and often contributes to the value of local real properties. A small number of studies have gone beyond the traditional cross-sectional hedonic analysis to use repeat-sales data in the US for more robust estimation of rail transit’s impact on property value. While the empirical literature generally supports the positive capitalization of rail transit in home value, it has produced widely varied estimates and failed to incorporate the theoretical insight that more elastic housing supply would reduce the extent of local amenities’ capitalization in home value. Observing Beijing’s rapid expansion of subway lines during the late 2000s, this study uses repeat rental transactions from 2005 to 2011 to investigate how home value reacts to the change in the home’s distance to nearest subway station. Repeat-rentals estimates suggest a rent-distance elasticity of −0.02, 70% below the cross-sectional hedonic estimate. Moreover, using the unique history of state-owned enterprise relocations as instrument for intra-city variation in land supply, we find that the capitalization of subway proximity in home value is weaker where land supply is more elastic. Our findings support the significant bias caused by omitted variables in the hedonic estimates and confirm housing supply’s role in explaining the intra-city spatial variation in estimates.