Disruptions to Supply Chains in Automotive Industry During COVID-19 Pandemic
MAGAZINE №6 (101) December 2020
AUTHORS BORZOVA T.
CATEGORY Analysis in logistics and SCM Industrial companies’ corporate logistics Supply chains reliability and sustainability Sourcing Supply chain management
ABSTRACT
The COVID-19 pandemic severely hit most industries and revealed a number of problems businesses were not prepared for. Manufacturing was one of the most vulnerable industries unlike companies involved in software development. Global lockdown and border closures broke the supply chain of materials and car parts. Car manufacturers and their suppliers were forced to find creative solutions to cope with the situation within a short period of time. The author of this article analyzes the effect of the pandemic on the U.S. vehicle manufacturing – members of the automotive supply chain from suppliers of raw materials to distributors and final consumers in particular. In addition, the author considers positive and negative effects of the government support. Finally, the author suggests several ideas that would make supply chains more flexible and adaptive to serious global issues in the future.
Keywords: supply chain planning procurement suppliers supplier map purchasing power unemployment distribution maketoorder
Role and Place of Replenishment Strategies in Distribution Systems
MAGAZINE №4(87) August 2018
AUTHORS BARASHKOV A.V. - Postgraduate student, Department of Logistics and Supply Chain Management, National Research University Higher School of Economics (St.-Petersburg, Russia)
CATEGORY Distribution logistics Optimization and mathematical modelling Inventory management
ABSTRACT
For complex logistic systems, in particular distribution systems, the issues related to inventory replenishment are one of the key ones in the framework of logistics management. This article discusses the problems associated with the timing of orders and the quantities of orders. One of the most common approaches to solving this issue is the choice of a replenishment strategy. As shown in the article, the choice of replenishment strategies has a big impact on all aspects of the logistic system. It was shown that at the moment little attention is paid to the formation of modified (joint) stock replenishment strategies that would consider existing restrictions both on the part of goods and on the part of supply chains. The article describes the place and role of replenishment strategies in logistic systems, in particular in distribution systems. The main types of basic and joint replenishment strategies are also described, and current methods of strategies selection are surveyed.
According to the study conducted in this paper, it is possible to single out a tendency for companies to move from basic strategies to joint strategies; the tendency is closely related to the increase in degree of the world economy globalization and the following complication of existing supply chains, which necessitates a review of existing replenishment strategies. However, it was shown that, despite the existing trend associated with changing of replenishment strategies selection and switching to the use of joint strategies, the methodological framework underlying joint strategies is just beginning to form, which leads to restriction in their use.
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The Goods Distribution in a Warehouse Network: Optimal Solutions for Many Criteria
MAGAZINE №1 (78) February 2017
AUTHORS
KULESHOVA E.S. - Planning Manager, Syngenta LTD (Moscow, Russia)
CATEGORY Optimization and economic-mathematical modeling Distribution logistics
ABSTRACT
The paper presents the research of features to determine the best solutions for the goods distribution in the warehouse network problem on many criteria. The authors have shown that the synthesis of the following methods or approaches can be applied effectively to a network for storage of optimization decisions. They are: 1) Simulation of random orders by Monte Carlo method at a regular interval of supply planning time. 2) Analytical hierarchy process to compare the importance of particular criteria, taking into account the decision maker's preferences. 3) Linear programming in order to minimize transportation and storage costs of the goods (in the format of apriori played out random shop’s orders scenarios to be analyzed in relation to the possible adoption of alternatives, and order execution strategies). The synthesis of these methods makes it possible to formalize a set of alternatives for the organization of deliveries from the central warehouse to the distribution warehouse and shops. The task of goods distribution in the warehouse network is formalized as the problem of multicriteria selection. The implementation of this approach to the solutions optimization for the goods distribution in the warehouse network is presented in this article. As partial criteria are considered: 1) the need to reduce the average daily stock levels, pallets (so the figure would be minimized); 2) the requirement to reduce the average daily cost of storage and cargo handling, USD (thus, the rate and should be minimized); 3) the need to reduce the average daily transport expenses, USD (and this figure will be reduced).
Approach to optimize the goods distribution in the warehouse network, presented in this article, has the following characteristics. Along with the optimization procedures in the article it is presented a special modification of indicators of partial criteria, which, in contrast to the traditional theory approaches of multicriteria optimization, allows to take into account the preferences of the decision maker more adequately. This is achieved by the developed synthesis procedures to be taken into account when optimizing the efficient approaches to providing indicators such as in the form of the theory of multicriteria optimization, and in the format of the method of analytic hierarchy. The paper reveals the procedure for determining the best solution on the basis of a) traditional and generalized selection criteria (multiplication, Hurwitz, maximin); b) the method of analytic hierarchy; c) modified selection criteria. The paper also gives recommendations how to adequately take into account the preferences of decision-makers on the importance of particular criteria and also analyzes the impact of changes in their structure on the ranking of alternatives for different selection criteria.
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Distribution of Products in Warehouse Network: Synthesis of Special Optimization Procedures
MAGAZINE №4 (75) August 2016
AUTHORS
KULESHOVA E.S. - Planning Manager, Syngenta LTD (Moscow, Russia)
CATEGORY Optimization and economic-mathematical modeling Inventory management
ABSTRACT
Research of new efficient optimization decisions related to the distribution tasks of goods in the warehouse network is particularly relevant today. The purpose of this article - to help practitioners working in this field in the development of new approaches and methods for finding the best solutions in relation to problems of this type that will use existing hidden reserves of improving the efficiency of such systems. In particular, we will focus on the possibility of taking into account in the optimization of goods distribution strategies of a number of important factors, such as: 1) the ability to select the period of time for supply planning by orders of stores; 2) the ability to simulate orders from stores with the defined probability distributions for random amounts of such orders; 3) the ability to adapt to the preferences of the selection decision maker; 4) the possibility of reducing transport costs for deliveries, using solutions such as transport problems played out for random order value. The article presents such procedures, which correspond with the task of determining the best solution for the distribution of the goods in the warehouse network problem on many criteria. These procedures involve the synthesis of these optimization processes during the selected period to plan the supply of solutions. 1) Simulation modelling with random orders to stores this next period at the Monte Carlo method. 2) The use of analytic hierarchy process to compare the importance of particular criteria for decision-makers. 3) Minimization the cost of transportation and storage of goods in the form of a linear programming problem (for simulated random orders in relation to the analyzed alternatives to the possible adoption of the strategy and execution of orders). This article shows that the implementation of a set of procedures mentioned would allow formalizing the task of selecting the solution as the problem of multi-criteria optimization. After that, choose the best solutions can be carried out on the basis of traditional theory, and taking into account the adaptation of such a choice to the decision maker's preferences. Such selection procedures will be presented in a separate article.
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Considering options of supply chains in promotion of the new product to the market
MAGAZINE №4 (63) August 2014
AUTHOR LUKINSKIY V.V., STRIMOVSKAYA A.V.
CATEGORY Logistics distribution
ABSTRACT
The growing interest in increasing supply chain efficiency claims the higher requirements to designing of supply chains. Searching and choosing options of different supply chains is supposed to be of a current interest in our country. By achieving this goal Russian enterprises could benefit significantly. To solve the problem of supply chain efficiency we consider the complex attitude to designing supply chains for new products, which are delivered to the market through the existing logistics channels, i.e. infrastructure and configuration.
The main idea is to propose a complex logistics network between supply chain designing from the very beginning and reengineering. In other words, the core idea is to develop different ways of decision making in order to promote new product to the market.
In the article ‘new product’ is determined as a product with significant differences from previous product lines by its’ customers’ features, demand, weight, forms, retail volumes and product life cycle. Apparently, changing weight and forms of the product could lead to the change of packaging. As a result, amount of units per one delivery will change too. In addition to this, we should think whether to change the existing logistics supply chain configuration or leave it untouched. Integral criteria could be used as an evaluation tool.
Developed methodology is supposed to be used in design of logistics networks in general. At the same moment, developed methodology could be applied to systems of smaller scale and certain logistics functions, such as storage, transportation, warehouse management, etc.
Article contains critical literature overview, methodological proposals and algorithm, example of calculations.
In the article is considered the topic of designing supply chains for a new product with the existing logistics configuration and infrastructure. The article deals with development of the new approach to supply chain management between designing supply chains and reengineering.
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