International Journal of Physical Distribution & Logistics Management

Krapp, Michael; Nebel, Johannes; Sahamie, Ramin

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-03-2012-0078

Purpose The purpose of this paper is to provide a generic forecasting approach for predicting product returns in closedloop supply chains.Designmethodologyapproach The approach is based on Bayesian estimation techniques. It permits to forecast product returns on the basis of fewer restrictions than existing approaches in CLSC literature. A numerical example demonstrates the application of the proposed approach using return times drawn from a Poisson distribution.Findings The Bayesian estimation approach provides at least 50 percent higher accuracy in terms of error measures compared to traditional methods in all scenarios examined in the empirical part. Hence, more precise results can be obtained when predicting product returns.Research limitationsimplications The flexibility of the proposed approach allows for numerous applications in the field of CLSC research. Areas that depend on the results from a forecasting system, such as inventory management, can embed our estimation procedure in order to reduce safety stocks. Further research should address the incorporation of the quality of returned products and its impact on the actual utilizable amount of product returns.Originalityvalue The generic character of the proposed forecasting approach leaves degrees of freedom to the user when adapting it to a specific problem. This adaptability is enabled by the following features first, an arbitrary function is allowed for capturing the customers' demand. Second, the stochastic timeframe between sale and product return may follow an arbitrary distribution. Third, by adjusting two parameters finite as well as infinite planning horizons can be incorporated. Fourth, no assumptions regarding the joint distribution of product returns are necessary.

Singhaseni, Chalermkiat; Wu, Yue; Ojiako, Udechukwu

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-11-2011-0201

Purpose In order to hedge against fluctuation in actual show for air freight services, cargo airlines engage in the allocation of more space capacity than they actually have. This practice can lead to overbooking of capacity which can incur costs to the airline when a cargo does show that is larger than predicted. In this study, the authors set out to model an optimised value for air cargo booking which is tested against five different cargo caserepresentative scenarios. The paper aims to discuss these issues.Designmethodologyapproach The methodology which is primarily discursive utilises a synthesis of existing literature to develop a model to replicate the overbooking problem.Findings This paper finds that the optimised value of cargo size may not necessarily depend on the probability of actual show. Instead, this variation appears dependent on a random demand for larger sized cargo, and thus, price.Practical implications The model which is developed serves as a potential framework for airlines to avoid uncertainty associated with cargo capacity spoilage and overbooking.Originalityvalue In this study, the passenger overbooking model under the cancellation and noshow problems in the static single leg case was adapted for use during the modelling of air cargo overbooking.

Hwang, BangNing; Lu, Taping

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-03-2012-0062

Purpose The semiconductor market exceeded US250 billion worldwide in 2010 and has had a doubledigit compound annual growth rate CAGR in the last 20 years. As it is located far upstream of the electronic product market, the semiconductor industry has suffered severely from the bullwhip effect. Therefore, effective ebased supply chain management eSCM has become imperative for the efficient operation of semiconductor manufacturing SM companies. The purpose of this research is to define and analyze the key success factors KSF for eSCM system implementation in the semiconductor industry.Designmethodologyapproach A hierarchy of KSFs is defined first by a combination of a literature review and a focus group discussion with experts who successfully implemented an interorganizational eSCM project. Fuzzy analytic hierarchy process FAHP is then employed to rank the importance of these identified KSFs. To confirm the research result and further explore the managerial implications, a second indepth interview with the eSCM project executives is conducted.Findings The KSF hierarchy is constructed with two levels a toplevel consisting of four dimensions and a detailedlevel consisting of 15 individual factors. The research shows that, in the toplevel, strategy is the most critically successful dimension followed by process, organization, and technical whereas in the detailedlevel, the top management commitment, clear project goal and business requirements, and business process reengineering are the top three critical successful factors.Research limitationsimplications Research surveys and interviews were conducted with two leading companies Taiwan Semiconductor Manufacturing Company TSMC and ASE they are the largest frontend and backend SM companies in the world, respectively. Although the data collected was primarily based on the experience of one successful eSCM project, the significant roles of these two companies and compelling contribution made by the eSCM project leading to the research resulted in valuable guidelines for the companies in the semiconductor industry and a useful reference for companies in other manufacturing industries.Originalityvalue eSCM system has a high failure rate and there is little literature discussing the KSF of eSCM implementation from a holistic view for certain industries. This paper not only provides a structured and comprehensive list of KSFs but also illustrates the application of the most critical factors by examples. In addition to the contributions made to industries, the research results can also serve as a foundation for related academic research when comparing the KSFs of implementing eSCM by different industries.

Son, Joong Y.; Orchard, Ryan K.

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-04-2012-0109

Purpose The purpose of this paper is to examine supplyside disruptions in a supply chain, and to analyse the effectiveness of two inventorybased policies for mitigating the impact of supply disruptions maintaining strategic inventory reserves the Rpolicy, and using larger orders the Qpolicy.Designmethodologyapproach The paper assess the effectiveness of two inventorybased mitigating policies implemented at a reseller when end customer demand is stable but supply can be disrupted. An analytical model is provided, and numerical experiments are conducted to evaluate the effectiveness of the policies for mitigating the impact of disruption under different disruption scenarios.Findings Results indicate that the Rpolicy performs consistently better than the Qpolicy in terms of product availability measures, as tested under a wide range of frequency and duration of supply disruptions.Practical implications Supply chain trends of lean operations and global sourcing have exposed business organizations to a greater risk and have further raised the need to protect businesses against random supply disruptions.Originalityvalue The paper intends to contribute to the narrowing of the gap in the research of supplyside disruptions. Further, the topic of inventory reserves has been discussed to date in only a very general sense the paper proposes conditions for practical implementation and provides unique insights into the effectiveness of the use of strategic inventory reserves as a supply disruption mitigation policy.

Kye, Dongmin; Lee, Jeongeun; Lee, KangDae

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-08-2011-0143

Purpose This paper aims to explore the perceived impact of packaging logistics on the efficiency of freight transportation EOT, and examine the interaction and relationship between packaging logistics and EOT.Designmethodologyapproach The paper set up the conceptual model with seven hypotheses from the findings of previous literatures, and this model was tested with data and SEM.Findings The paper provided empirical insights about the perceived impact of packaging logistics on EOT and clarified the relative impact levels in the relationship between packaging logistics and EOT.Research limitationsimplications In spite of the chosen research approach, the perceived impact of information system on EOT may lack generalisability. Therefore, researchers are encouraged to test the proposed propositions in further studies.Practical implications Findings of this study can be used by practioners to improve EOT and by researchers to investigate further studies.Originalityvalue The paper fulfilled a need from previous literatures to clarify the interaction and relationship between packaging logistics and EOT.