IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v324y2023i1d10.1007_s10479-022-04571-0.html
   My bibliography  Save this article

Supply chain network redesign problem for major beverage organization in ASEAN region

Author

Listed:
  • Gajanan B. Panchal

    (Aston University)

  • Hassan Mirzahosseinian

    (SupChainEra Company)

  • Sunil Tiwari

    (ESSCA School of Management)

  • Ajay Kumar

    (EMLYON Business School)

  • Sachin Kumar Mangla

    (O P Jindal Global University)

Abstract

Global supply chains engage in economic exchanges and flows of capital across borders. The free flow of economic goods opens opportunities for organizations to optimize supply chains across global networks and develop socially embedded interdependent relationships. This study explores issues related to multi-echelon supply chains and the effect of economic integration on a major beverage company’s distribution in the emerging Association of Southeast Asian Nations (ASEAN) Economic Community (AEC). Case-based modeling is conducted to resolve discrepancies in perceptions of supply chain network formation between academic research and industry. This paper determines the network configuration involving minimum gross cost while considering the impacts of barriers to resource accessibility and external economic decisions on infrastructure in a real-world supply chain network where end products of in-house manufacturing are acquired from external sources and incorporated in warehouses. A mixed-integer linear programming model was developed to design a multi-stage supply chain network using ILOG LOGIC NET. The model explores location and capacity selection for plants and warehouses in parallel with capacity selection for suppliers and transportation in the AEC, and we determine the optimal flow of products and product families through the network medium. Three different scenarios were evaluated to obtain differing resolutions that can empower decision-makers to understand influences on overall supply chain networks based on futuristic development preferences and regional economic integration.

Suggested Citation

  • Gajanan B. Panchal & Hassan Mirzahosseinian & Sunil Tiwari & Ajay Kumar & Sachin Kumar Mangla, 2023. "Supply chain network redesign problem for major beverage organization in ASEAN region," Annals of Operations Research, Springer, vol. 324(1), pages 1067-1098, May.
    • Handle: RePEc:spr:annopr:v:324:y:2023:i:1:d:10.1007_s10479-022-04571-0
    DOI: 10.1007/s10479-022-04571-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-04571-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-022-04571-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Broekmeulen, Rob A.C.M. & Sternbeck, Michael G. & van Donselaar, Karel H. & Kuhn, Heinrich, 2017. "Decision support for selecting the optimal product unpacking location in a retail supply chain," European Journal of Operational Research, Elsevier, vol. 259(1), pages 84-99.
    2. Jahani, Hamed & Abbasi, Babak & Alavifard, Farzad & Talluri, Srinivas, 2018. "Supply chain network redesign with demand and price uncertainty," International Journal of Production Economics, Elsevier, vol. 205(C), pages 287-312.
    3. Stephen C. Graves & Sean P. Willems, 2005. "Optimizing the Supply Chain Configuration for New Products," Management Science, INFORMS, vol. 51(8), pages 1165-1180, August.
    4. Dionisius A. NARJOKO, 2015. "AEC Blueprint Implementation Performance and Challenges: Non-Tariff Measures and Non-Tariff Barriers," Working Papers DP-2015-36, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Tsiakis, Panagiotis & Papageorgiou, Lazaros G., 2008. "Optimal production allocation and distribution supply chain networks," International Journal of Production Economics, Elsevier, vol. 111(2), pages 468-483, February.
    6. Reza Farahani & Zvi Drezner & Nasrin Asgari, 2009. "Single facility location and relocation problem with time dependent weights and discrete planning horizon," Annals of Operations Research, Springer, vol. 167(1), pages 353-368, March.
    7. Bruce C. Arntzen & Gerald G. Brown & Terry P. Harrison & Linda L. Trafton, 1995. "Global Supply Chain Management at Digital Equipment Corporation," Interfaces, INFORMS, vol. 25(1), pages 69-93, February.
    8. Yang, Shanping & Martinez-Zarzoso, Inmaculada, 2014. "A panel data analysis of trade creation and trade diversion effects: The case of ASEAN–China Free Trade Area," China Economic Review, Elsevier, vol. 29(C), pages 138-151.
    9. Salehi Sadghiani, N. & Torabi, S.A. & Sahebjamnia, N., 2015. "Retail supply chain network design under operational and disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 95-114.
    10. Owen, Susan Hesse & Daskin, Mark S., 1998. "Strategic facility location: A review," European Journal of Operational Research, Elsevier, vol. 111(3), pages 423-447, December.
    11. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    12. Staiger, Robert W., 2012. "Non-tariff measures and the WTO," WTO Staff Working Papers ERSD-2012-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    13. John Miltenburg, 2015. "Changes in manufacturing facility-, network-, and strategy-types at the Michelin North America Company from 1950 to 2014," International Journal of Production Research, Taylor & Francis Journals, vol. 53(10), pages 3175-3191, May.
    14. Haddadsisakht, Ali & Ryan, Sarah M., 2018. "Closed-loop supply chain network design with multiple transportation modes under stochastic demand and uncertain carbon tax," International Journal of Production Economics, Elsevier, vol. 195(C), pages 118-131.
    15. Dionisius A. NARJOKO, 2015. "AEC Blueprint Implementation Performance and Challenges: Service Liberalization," Working Papers DP-2015-39, Economic Research Institute for ASEAN and East Asia (ERIA).
    16. Miyagiwa, Kaz & Song, Huasheng & Vandenbussche, Hylke, 2016. "Size matters! Who is bashing whom in trade war?," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 33-45.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivares-Benitez, Elias & Ríos-Mercado, Roger Z. & González-Velarde, José Luis, 2013. "A metaheuristic algorithm to solve the selection of transportation channels in supply chain design," International Journal of Production Economics, Elsevier, vol. 145(1), pages 161-172.
    2. Schuster Puga, Matías & Minner, Stefan & Tancrez, Jean-Sébastien, 2019. "Two-stage supply chain design with safety stock placement decisions," International Journal of Production Economics, Elsevier, vol. 209(C), pages 183-193.
    3. Güden, Hüseyin & Süral, Haldun, 2014. "Locating mobile facilities in railway construction management," Omega, Elsevier, vol. 45(C), pages 71-79.
    4. Moritz Julius Ziegler & Kilian Seifried & Philipp Kuske & Moritz Fleischmann, 2019. "TRUMPF Uses a Mixed Integer Model as Decision Support for Strategic Production Network Design," Interfaces, INFORMS, vol. 49(3), pages 213-226, May.
    5. Wang, Mengyue & Huang, Hongxuan, 2019. "The design of a flexible capital-constrained global supply chain by integrating operational and financial strategies," Omega, Elsevier, vol. 88(C), pages 40-62.
    6. Holzapfel, Andreas & Potoczki, Tobias & Kuhn, Heinrich, 2023. "Designing the breadth and depth of distribution networks in the retail trade," International Journal of Production Economics, Elsevier, vol. 257(C).
    7. Varsei, Mohsen & Polyakovskiy, Sergey, 2017. "Sustainable supply chain network design: A case of the wine industry in Australia," Omega, Elsevier, vol. 66(PB), pages 236-247.
    8. Blossey, Gregor & Hahn, Gerd J. & Koberstein, Achim, 2022. "Planning pharmaceutical manufacturing networks in the light of uncertain production approval times," International Journal of Production Economics, Elsevier, vol. 244(C).
    9. Elias Olivares-Benitez & José González-Velarde & Roger Ríos-Mercado, 2012. "A supply chain design problem with facility location and bi-objective transportation choices," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 20(3), pages 729-753, October.
    10. Allman, Andrew & Zhang, Qi, 2020. "Dynamic location of modular manufacturing facilities with relocation of individual modules," European Journal of Operational Research, Elsevier, vol. 286(2), pages 494-507.
    11. Sauvey, Christophe & Melo, Teresa & Correia, Isabel, 2019. "Two-phase heuristics for a multi-period capacitated facility location problem with service-differentiated customers," Technical Reports on Logistics of the Saarland Business School 16, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    12. Feng, Cheng-Min & Wu, Pei-Ju, 2009. "A tax savings model for the emerging global manufacturing network," International Journal of Production Economics, Elsevier, vol. 122(2), pages 534-546, December.
    13. Shabnam Rekabi & Ali Ghodratnama & Amir Azaron, 2022. "Designing pharmaceutical supply chain networks with perishable items considering congestion," Operational Research, Springer, vol. 22(4), pages 4159-4219, September.
    14. Chloe Kim Glaeser & Marshall Fisher & Xuanming Su, 2019. "Optimal Retail Location: Empirical Methodology and Application to Practice," Service Science, INFORMS, vol. 21(1), pages 86-102, January.
    15. Šárka Štádlerová & Sanjay Dominik Jena & Peter Schütz, 2023. "Using Lagrangian relaxation to locate hydrogen production facilities under uncertain demand: a case study from Norway," Computational Management Science, Springer, vol. 20(1), pages 1-32, December.
    16. Liying Yan & Manel Grifoll & Hongxiang Feng & Pengjun Zheng & Chunliang Zhou, 2022. "Optimization of Urban Distribution Centres: A Multi-Stage Dynamic Location Approach," Sustainability, MDPI, vol. 14(7), pages 1-16, March.
    17. Roberto León & Pablo A. Miranda-Gonzalez & Francisco J. Tapia-Ubeda & Elias Olivares-Benitez, 2024. "An Inventory Service-Level Optimization Problem for a Multi-Warehouse Supply Chain Network with Stochastic Demands," Mathematics, MDPI, vol. 12(16), pages 1-20, August.
    18. Jimenez, Charlotte & Dauzère-Pérès, Stéphane & Feuillebois, Christian & Pauly, Eric, 2013. "Optimizing the positioning and technological choices of RFID elements for aircraft part identification," European Journal of Operational Research, Elsevier, vol. 227(2), pages 350-357.
    19. Sahling, Florian & Kayser, Ariane, 2016. "Strategic supply network planning with vendor selection under consideration of risk and demand uncertainty," Omega, Elsevier, vol. 59(PB), pages 201-214.
    20. Mejía, Gonzalo & Aránguiz, Raúl & Espejo-Díaz, Julián Alberto & Granados-Rivera, Daniela & Mejía-Argueta, Christopher, 2023. "Can street markets be a sustainable strategy to mitigate food insecurity in emerging countries? Insights from a competitive facility location model," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:324:y:2023:i:1:d:10.1007_s10479-022-04571-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.