2012
Authors
Amorim, P; Guenther, HO; Almada Lobo, B;
Publication
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
Abstract
Integrated production and distribution planning have received a lot of attention throughout the years and its economic advantages are well documented. However, for highly perishable products this integrated approach has to include, further than the economic aspects, the intangible value of freshness. We explore, through a multi-objective framework, the advantages of integrating these two intertwined planning problems at an operational level. We formulate models for the case where perishable goods have a fixed and a loose shelf-life (i.e. with and without a best-before-date). The results show that the economic benefits derived from using an integrated approach are much dependent on the freshness level of products delivered.
2023
Authors
Wagner, L; Calvo, E; Amorim, P;
Publication
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
Abstract
Problem definition: Online retailers often receive customer orders comprising several products of differing origins. To fulfill these orders, retailers must ship multiple parcels from different locations and-unless they are grouped somewhere along the supply chain-these may reach the customer's doorstep one by one. Academic/practical relevance: We conjecture here that receiving products sequentially instead of all together affects a consumer's reaction to her purchases, possibly influencing-for good or ill-her decision to return products, as well as her overall service satisfaction. We use two-year granular data from an online fashion marketplace to test this hypothesis and characterize consumer behavioral responses to delivery consolidation and examine how it impacts supply chain stakeholders. Methodology: To achieve causal inference, we exploit the fact that the couriers used by the focal marketplace gather together certain parcels for reasons related more to the timing of their arrival than their actual customers, thereby exogenously consolidating the delivery of some orders. We construct a balanced sample of matched twin multiproduct orders that are alike in all respects except their delivery: consolidated (all parcels delivered jointly) versus otherwise (split). Results: We find that delivery consolidation benefits the marketplace and all its suppliers. By eliminating the stress associated with split deliveries, delivery consolidation pleases consumers as it leads to fewer returns and higher overall satisfaction. Managerial implications: Delivering all products in an order together, even if later, reduces the probability of a return, which improves the financial performance of the marketplace and its suppliers and reduces reverse logistics. Our results suggest that in our context, delivery speed matters less than the convenience of receiving all ordered goods in a single delivery, and we provide directions for adapting logistics strategies accordingly. Our empirical findings also imply that the return decisions of multiple products purchased at once should not be considered to be independent. Finding tractable ways of modeling this feature will be necessary in further driving retail practice through theoretical research that accounts for the behavioral implications of delivery consolidation when optimizing fulfillment decisions.
2023
Authors
Moreira, FN; Amorim, P;
Publication
CoRR
Abstract
2022
Authors
Figueira, G; van Jaarsveld, W; Amorim, P; Fransoo, JC;
Publication
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
Abstract
Problem definition: Online retailers are on a consistent drive to increase on-time delivery and reduce customer lead time. However, in reality, an increasing share of consumers places orders early. Academic/practical relevance: Such advance demand information can be deployed strategically to reduce costs and improve the customer service experience. This requires inventory and allocation policies that make optimal use of this information and that induce consumers to place their orders early. An increasing number of online retailers not only offer customers a choice of lead time but also, actively back-order missing items from a consumer basket. Methodology: We develop new allocation policies that commit to a customer order upon arrival of the order rather than at the moment the order is due. We provide analytical results for the performance of these allocation policies and evaluate their behavior with real data from a large food retailer. Results: Our policy leads to a higher fill rate at the expense of a slight increase in average delay. The analysis based on real-life data suggests a sizeable impact that should impact current best practices in online retail. Managerial implications: With the changing landscape in online retail, customers increasingly place baskets of orders that they would like to receive at a planned and confirmed moment in time. Especially in grocery, this has grown fast. This fundamentally changes the strategic management of inventory. We demonstrate that online retailers should commit early to customer orders to enhance the customer service experience and eventually, to also create opportunities for reducing the cost of operations.
2023
Authors
Curcio, E; de Lima, VL; Miyazawa, FK; Silva, E; Amorim, P;
Publication
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Abstract
Interest in integrating lot-sizing and cutting stock problems has been increasing over the years. This integrated problem has been applied in many industries, such as paper, textile and furniture. Yet, there are only a few studies that acknowledge the importance of uncertainty to optimise these integrated decisions. This work aims to address this gap by incorporating demand uncertainty through stochastic programming and robust optimisation approaches. Both robust and stochastic models were specifically conceived to be solved by a column generation method. In addition, both models are embedded in a rolling-horizon procedure in order to incorporate dynamic reaction to demand realisation and adapt the models to a multistage stochastic setting. Computational experiments are proposed to test the efficiency of the column generation method and include a Monte Carlo simulation to assess both stochastic programming and robust optimisation for the integrated problem. Results suggest that acknowledging uncertainty can cut costs by up to 39.7%, while maintaining or reducing variability at the same time.
2023
Authors
Cunha, NFE; Gan, TS; Curcio, E; Amorim, P; Almada Lobo, B; Grunow, M;
Publication
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Abstract
Original Equipment Manufacturers (OEMs) have sought new supply chain paradigms that allowed them to focus on core activities, i.e. overall product design and commercialisation. This pursuit led to partnerships with a new generation of tier-1 strategic suppliers acting as integrators. Integrators are not only responsible for system supply, but also for system design. However, critical integrators were not able to live up to their new roles, which led to costly delays in development and production. These failures highlight the ineptitude of current risk management practices employed by OEMs. To support OEMs in implementing a more differentiated and suitable approach to the use of integrators, this paper proposes a mathematical programming model for Supply Chain Design (SCD). Instead of looking at the introduction of integrators as a dichotomous decision, the model suggests the optimal number of integrators, i.e. systems, and individual part suppliers. We propose new measures for integration risk, which build upon current risk assessment practices. Robust optimisation is used to study the effect of uncertainty over baseline risk values. All approaches were tested using both randomly generated instances and real data from a large European OEM in the aerospace industry.
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