Pub Date : 2023-12-02DOI: 10.4995/ijpme.2024.19240
Ala H. Bani-Irshid, Mohammad M. Hamasha, Lubna Al-Nsour, Lana Mohammad, Anfal Al-Dabaibeh, Raya Al-Majali, Hala Al-Daajeh
Supply chain (SC) disruptions were massive in 2020, with many manufacturers forced to close their operations temporarily. The coronavirus pandemic (COVID-19) has changed the way enterprises perceive risks and the potential effect on their supply chain. Many enterprises are now very dependent on third-party services, so it is necessary to adapt to sustainability challenges. This paper aims to provide a detailed review of research related to risk assessment and mitigation of the SC under lockdown due to COVID-19. Then, it identifies risks associated with supply chains (SCs) during the pandemic using the Failure Mode Effect Analysis. Finally, it suggests improvements to have a fully resilient supply chain. In addition, it explored Supply Chain Resilience (SCR), its phases, and strategies by examining an enterprise that managed COVID-19 pandemic disruptions and turned their potential losses into revenue. Furthermore, we discussed a case study where the enterprise increased its total income by nearly $1 million.
{"title":"Supply chain risk assessment and mitigation under the global pandemic COVID-19","authors":"Ala H. Bani-Irshid, Mohammad M. Hamasha, Lubna Al-Nsour, Lana Mohammad, Anfal Al-Dabaibeh, Raya Al-Majali, Hala Al-Daajeh","doi":"10.4995/ijpme.2024.19240","DOIUrl":"https://doi.org/10.4995/ijpme.2024.19240","url":null,"abstract":"Supply chain (SC) disruptions were massive in 2020, with many manufacturers forced to close their operations temporarily. The coronavirus pandemic (COVID-19) has changed the way enterprises perceive risks and the potential effect on their supply chain. Many enterprises are now very dependent on third-party services, so it is necessary to adapt to sustainability challenges. This paper aims to provide a detailed review of research related to risk assessment and mitigation of the SC under lockdown due to COVID-19. Then, it identifies risks associated with supply chains (SCs) during the pandemic using the Failure Mode Effect Analysis. Finally, it suggests improvements to have a fully resilient supply chain. In addition, it explored Supply Chain Resilience (SCR), its phases, and strategies by examining an enterprise that managed COVID-19 pandemic disruptions and turned their potential losses into revenue. Furthermore, we discussed a case study where the enterprise increased its total income by nearly $1 million.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":"114 51","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138607516","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-26DOI: 10.4995/ijpme.2024.19279
Meryem Boutbagha, Laila El Abbadi
Heijunka is the central concept of the Toyota Production System which aims to maintain both flexibility and stability of the production system by producing the same quantity of products every time interval (a day, a shift, an hour, etc.). This study is a systematic literature review whose objective is to give an idea about the most important research areas regarding this concept and to propose an agenda for further research. A total of 60 articles were reviewed using specified inclusion and exclusion criteria. The review showed that heijunka received little attention in the academic literature and disclosed the existence of three main research topics, namely: Implementation of heijunka and its benefits, Heijunka-related problem-solving using optimization, and Heijunka and Industry 4.0 technologies. This review could have some limitations related to the number of reviewed articles. It is possible that, unintentionally, some important articles haven’t been included.
{"title":"Heijunka-Levelling customer orders: A systematic literature review","authors":"Meryem Boutbagha, Laila El Abbadi","doi":"10.4995/ijpme.2024.19279","DOIUrl":"https://doi.org/10.4995/ijpme.2024.19279","url":null,"abstract":"Heijunka is the central concept of the Toyota Production System which aims to maintain both flexibility and stability of the production system by producing the same quantity of products every time interval (a day, a shift, an hour, etc.). This study is a systematic literature review whose objective is to give an idea about the most important research areas regarding this concept and to propose an agenda for further research. A total of 60 articles were reviewed using specified inclusion and exclusion criteria. The review showed that heijunka received little attention in the academic literature and disclosed the existence of three main research topics, namely: Implementation of heijunka and its benefits, Heijunka-related problem-solving using optimization, and Heijunka and Industry 4.0 technologies. This review could have some limitations related to the number of reviewed articles. It is possible that, unintentionally, some important articles haven’t been included.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":"45 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139235897","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-02DOI: 10.4995/ijpme.2024.19277
Prasad Bari, Prasad Karande, Vaidehi Bag
This article presents two combinatorial genetic algorithms (GA), unequal earliness tardiness-GA (UET-GA) and job-dependent earliness tardiness-GA (JDET-GA) for the single-machine scheduling problem to minimize earliness tardiness (ET) cost. The sequence of jobs produced in basic UET and JDET as a chromosome is added to the random population of GA. The best sequence from each epoch is also injected as a population member in the subsequent epoch. The proposed improvement seeks to achieve convergence in less time to search for an optimal solution. Although the GA has been implemented very successfully on many different types of optimization problems, it has been learnt that the algorithm has a search ability difficulty that makes computations NP-hard for types of optimization problems, such as permutation-based optimization problems. The use of a plain random population initialization results in this flaw. To reinforce the random population initialization, the proposed enhancement is utilized to obtain convergence and find a promising solution. The cost is further significantly lowered offering the due date as a decision variable with JDET-GA. Multiple tests were run on well-known single-machine benchmark examples to demonstrate the efficacy of the proposed methodology, and the results are displayed by comparing them with the fundamental UET and JDET approaches with a notable improvement in cost reduction.
{"title":"Hybrid genetic algorithm to minimize scheduling cost with unequal and job dependent earliness tardiness cost","authors":"Prasad Bari, Prasad Karande, Vaidehi Bag","doi":"10.4995/ijpme.2024.19277","DOIUrl":"https://doi.org/10.4995/ijpme.2024.19277","url":null,"abstract":"This article presents two combinatorial genetic algorithms (GA), unequal earliness tardiness-GA (UET-GA) and job-dependent earliness tardiness-GA (JDET-GA) for the single-machine scheduling problem to minimize earliness tardiness (ET) cost. The sequence of jobs produced in basic UET and JDET as a chromosome is added to the random population of GA. The best sequence from each epoch is also injected as a population member in the subsequent epoch. The proposed improvement seeks to achieve convergence in less time to search for an optimal solution. Although the GA has been implemented very successfully on many different types of optimization problems, it has been learnt that the algorithm has a search ability difficulty that makes computations NP-hard for types of optimization problems, such as permutation-based optimization problems. The use of a plain random population initialization results in this flaw. To reinforce the random population initialization, the proposed enhancement is utilized to obtain convergence and find a promising solution. The cost is further significantly lowered offering the due date as a decision variable with JDET-GA. Multiple tests were run on well-known single-machine benchmark examples to demonstrate the efficacy of the proposed methodology, and the results are displayed by comparing them with the fundamental UET and JDET approaches with a notable improvement in cost reduction.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":"7 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136018440","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-31DOI: 10.4995/ijpme.2023.18077
A. A. Abdessemed, L. Mouss, K. Benaggoune
In this paper, we present a novel hybrid meta-heuristic by enhancing the Basic Bees Algorithm through the integration of a local search method namely Simulated Annealing and Variable Neighbourhood Search like algorithm. The resulted hybrid bees algorithm (BASA) is used to solve the Single Machine Scheduling Problem with Early/Tardy jobs, where the generated outcomes are compared against the Basic Bees Algorithm (BA), and against some stat-of-the-art meta-heuristics. Computational results reveal that our proposed framework outperforms the Basic Bees Algorithm, and demonstrates a competitive performance compared with some algorithms extracted from the literature.
{"title":"BASA: An improved hybrid bees algorithm for the single machine scheduling with early/tardy jobs","authors":"A. A. Abdessemed, L. Mouss, K. Benaggoune","doi":"10.4995/ijpme.2023.18077","DOIUrl":"https://doi.org/10.4995/ijpme.2023.18077","url":null,"abstract":"In this paper, we present a novel hybrid meta-heuristic by enhancing the Basic Bees Algorithm through the integration of a local search method namely Simulated Annealing and Variable Neighbourhood Search like algorithm. The resulted hybrid bees algorithm (BASA) is used to solve the Single Machine Scheduling Problem with Early/Tardy jobs, where the generated outcomes are compared against the Basic Bees Algorithm (BA), and against some stat-of-the-art meta-heuristics. Computational results reveal that our proposed framework outperforms the Basic Bees Algorithm, and demonstrates a competitive performance compared with some algorithms extracted from the literature.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":" ","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49548898","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-31DOI: 10.4995/ijpme.2023.19598
Andrei Bancovich Erquínigo, Jorge Ortiz Porras, Harold Quintana Saavedra, Paola Crispin Chamorro, Rosiand Manrique Alva, Pedro Vilca Carhuapuma
Nowadays, the waste of resources has become one of the biggest problems for industries, due to the serious environmental, social and economic consequences it generates. Therefore, to ensure a production based on sustainable processes, it’s essential to have a responsible management of resources, being the first step one of the most important ones, the identification. Thus, the present research work aims to develop and implement a method based on the integration of Green and Lean methodologies to systematically identify ecological waste, taking as a case study a nectar factory in Lima - Peru. Through the implementation of tools such as Environmental Value Stream Mapping, Process Mapping or Failure Mode and Effects Analysis, it was found that the company generated a waste of 1584 litres of water and 38.5 kg of conditioned fruit every month. The identification of green waste is vital, as it is the first link in a long chain that contributes directly to improving the company's efficiency, profitability and reputation, as well as protecting the environment and promoting sustainable development.
{"title":"Green lean method to identify ecological waste in a nectar factory","authors":"Andrei Bancovich Erquínigo, Jorge Ortiz Porras, Harold Quintana Saavedra, Paola Crispin Chamorro, Rosiand Manrique Alva, Pedro Vilca Carhuapuma","doi":"10.4995/ijpme.2023.19598","DOIUrl":"https://doi.org/10.4995/ijpme.2023.19598","url":null,"abstract":"Nowadays, the waste of resources has become one of the biggest problems for industries, due to the serious environmental, social and economic consequences it generates. Therefore, to ensure a production based on sustainable processes, it’s essential to have a responsible management of resources, being the first step one of the most important ones, the identification. Thus, the present research work aims to develop and implement a method based on the integration of Green and Lean methodologies to systematically identify ecological waste, taking as a case study a nectar factory in Lima - Peru. Through the implementation of tools such as Environmental Value Stream Mapping, Process Mapping or Failure Mode and Effects Analysis, it was found that the company generated a waste of 1584 litres of water and 38.5 kg of conditioned fruit every month. The identification of green waste is vital, as it is the first link in a long chain that contributes directly to improving the company's efficiency, profitability and reputation, as well as protecting the environment and promoting sustainable development.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":"24 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139353349","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-31DOI: 10.4995/ijpme.2023.19426
R. Schonberger
Process improvement through cellular manufacturing, engineering, and management (CEM) is largely dated and neglected. This article aims at rejuvenating the topic through re-conceptualization in the form of twelve principles of workcell design, operation, and management, plus six corollary principles. An assessment model, based on the twelve principles is suggested for planning and evaluating proposed or operational CEM cases. Much of the attendant research emerges from published case studies, along with authors’ own extensive, on-site visitations and analyses. Collectively, an intent to present rationale for considering and treating the workcell/cellular construct as among the more significant concepts/methodologies within the field of manufacturing/engineering/production management.
{"title":"Principles of cellular manufacturing/engineering/management: case studies and explications","authors":"R. Schonberger","doi":"10.4995/ijpme.2023.19426","DOIUrl":"https://doi.org/10.4995/ijpme.2023.19426","url":null,"abstract":"Process improvement through cellular manufacturing, engineering, and management (CEM) is largely dated and neglected. This article aims at rejuvenating the topic through re-conceptualization in the form of twelve principles of workcell design, operation, and management, plus six corollary principles. An assessment model, based on the twelve principles is suggested for planning and evaluating proposed or operational CEM cases. Much of the attendant research emerges from published case studies, along with authors’ own extensive, on-site visitations and analyses. Collectively, an intent to present rationale for considering and treating the workcell/cellular construct as among the more significant concepts/methodologies within the field of manufacturing/engineering/production management.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":" ","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46037858","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-31DOI: 10.4995/ijpme.2023.19135
Onailis Oramas Santos, L. Canós-Darós, E. Babiloni
This paper analyzes the value chain approach in the red biotechnology sector from a bibliometric perspective, using Scopus and Web of Science databases from 2011 to 2021. As a result, 82 documents that cover this topic are analyzed with VOSviewer and R studio. The main findings show that scientific interest increases with a positive publication trend during the considered time period. However, there are no authorship networks in both database. Furthermore, the main reason to use the value chain approach in the red biotech sector is that it highlights the government’s implication on the industry, given its social impact. As a research gap, we recommend to study the effects of Industry 4.0 on the red biotech value chain approach.
本文利用2011 - 2021年的Scopus和Web of Science数据库,从文献计量学的角度分析了红色生物技术领域的价值链方法。因此,使用VOSviewer和R studio分析了涵盖该主题的82个文档。主要发现表明,在考虑的时间段内,科学兴趣随着积极的出版趋势而增加。然而,在这两个数据库中都没有作者网络。此外,在红色生物技术领域使用价值链方法的主要原因是,鉴于其社会影响,它突出了政府对该行业的影响。作为研究缺口,我们建议研究工业4.0对红色生物技术价值链方法的影响。
{"title":"The value chain approach in red biotechnology companies from a bibliometric perspective","authors":"Onailis Oramas Santos, L. Canós-Darós, E. Babiloni","doi":"10.4995/ijpme.2023.19135","DOIUrl":"https://doi.org/10.4995/ijpme.2023.19135","url":null,"abstract":"This paper analyzes the value chain approach in the red biotechnology sector from a bibliometric perspective, using Scopus and Web of Science databases from 2011 to 2021. As a result, 82 documents that cover this topic are analyzed with VOSviewer and R studio. The main findings show that scientific interest increases with a positive publication trend during the considered time period. However, there are no authorship networks in both database. Furthermore, the main reason to use the value chain approach in the red biotech sector is that it highlights the government’s implication on the industry, given its social impact. As a research gap, we recommend to study the effects of Industry 4.0 on the red biotech value chain approach.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":" ","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47711995","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-31DOI: 10.4995/ijpme.2023.19138
Miguel Angel Mateo Casalí, Francisco Fraile Gil, A. Boza, A. Nazarenko
The next evolutionary technological step in the industry presumes the automation of the elements found within a factory, which can be accomplished through the extensive introduction of automatons, computers and Internet of Things (IoT) components. All this seeks to streamline, improve, and increase production at the lowest possible cost and avoid any failure in the creation of the product, following a strategy called “Zero Defect Manufacturing”. Machine Learning Operations (MLOps) provide a ML-based solution to this challenge, promoting the automation of all product-relevant steps, from development to deployment. When integrating different machine learning models within manufacturing operations, it is necessary to understand what functionality is needed and what is expected. This article presents a maturity model that can help companies identify and map their current level of implementation of machine learning models.
{"title":"An industry maturity model for implementing Machine Learning operations in manufacturing","authors":"Miguel Angel Mateo Casalí, Francisco Fraile Gil, A. Boza, A. Nazarenko","doi":"10.4995/ijpme.2023.19138","DOIUrl":"https://doi.org/10.4995/ijpme.2023.19138","url":null,"abstract":"The next evolutionary technological step in the industry presumes the automation of the elements found within a factory, which can be accomplished through the extensive introduction of automatons, computers and Internet of Things (IoT) components. All this seeks to streamline, improve, and increase production at the lowest possible cost and avoid any failure in the creation of the product, following a strategy called “Zero Defect Manufacturing”. Machine Learning Operations (MLOps) provide a ML-based solution to this challenge, promoting the automation of all product-relevant steps, from development to deployment. When integrating different machine learning models within manufacturing operations, it is necessary to understand what functionality is needed and what is expected. This article presents a maturity model that can help companies identify and map their current level of implementation of machine learning models.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":" ","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45786122","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-08DOI: 10.4995/ijpme.2023.18233
Dwi Agustina, Kurniawati, Muhammad Arief Rochman
Two stages of halal food distribution model for perishable food products are a mixed integer linear program (MILP) model proposed to solve the distribution problem of halal food, especially for perishable food products. The model can simultaneously minimize overstock, shortage, transportation, and deterioration costs. The model is developed into two stages. The first stage is the location-allocation model to determine the halal cluster and the number of suppliers in each cluster. The second stage is the vehicle routing model to determine the routing at each cluster. Numerical experiments are done using CPLEX Solver and the proposed model is applied to solve a real case of halal meat distribution in Yogyakarta. The results show that the proposed model can be used as a decision tool for supply chain and distribution managers to determine the strategy for distributing halal food products with the least total logistics cost for daily application.
{"title":"Two stages of halal food distribution model for perishable food products","authors":"Dwi Agustina, Kurniawati, Muhammad Arief Rochman","doi":"10.4995/ijpme.2023.18233","DOIUrl":"https://doi.org/10.4995/ijpme.2023.18233","url":null,"abstract":"Two stages of halal food distribution model for perishable food products are a mixed integer linear program (MILP) model proposed to solve the distribution problem of halal food, especially for perishable food products. The model can simultaneously minimize overstock, shortage, transportation, and deterioration costs. The model is developed into two stages. The first stage is the location-allocation model to determine the halal cluster and the number of suppliers in each cluster. The second stage is the vehicle routing model to determine the routing at each cluster. Numerical experiments are done using CPLEX Solver and the proposed model is applied to solve a real case of halal meat distribution in Yogyakarta. The results show that the proposed model can be used as a decision tool for supply chain and distribution managers to determine the strategy for distributing halal food products with the least total logistics cost for daily application.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":" ","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-06-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43245501","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-07DOI: 10.4995/ijpme.2023.18442
M. Rodríguez-García, Ángel Ortiz Bas, J. C. Prado-Prado, A. Lyons
This study develops a framework that structures the operational costs of online grocery retailing in order to identify which is the most suitable e-fulfillment strategy. The cost framework was designed by applying time-driven activity-based costing (TDABC) and is based on the insights of two large European grocery retailers, which operate retail store and warehouse e-fulfillment strategies respectively. Cost information was collected, and activity-oriented process modeling was carried out in the field to identify the most relevant e-fulfillment cost drivers. For the retail store strategy, picking costs were the highest among e-fulfillment activities and up to twice as high as for the warehouse strategy. For the warehouse strategy, delivery costs were the highest and 50% higher than for the retail store strategy. Less studied logistics activities such as unpacking and reverse logistics all together accounted for up to one third of total expenses for both strategies. In omnichannel, operations and logistics managers must still ensure the profitability of the online channel if they want to succeed in the grocery business. This framework will help managers identify and estimate the most relevant cost drivers, and to allocate them to the main operational activities.
{"title":"Fulfillment costs in online grocery retailing: comparing retail store and warehouse strategies","authors":"M. Rodríguez-García, Ángel Ortiz Bas, J. C. Prado-Prado, A. Lyons","doi":"10.4995/ijpme.2023.18442","DOIUrl":"https://doi.org/10.4995/ijpme.2023.18442","url":null,"abstract":"This study develops a framework that structures the operational costs of online grocery retailing in order to identify which is the most suitable e-fulfillment strategy. The cost framework was designed by applying time-driven activity-based costing (TDABC) and is based on the insights of two large European grocery retailers, which operate retail store and warehouse e-fulfillment strategies respectively. Cost information was collected, and activity-oriented process modeling was carried out in the field to identify the most relevant e-fulfillment cost drivers. For the retail store strategy, picking costs were the highest among e-fulfillment activities and up to twice as high as for the warehouse strategy. For the warehouse strategy, delivery costs were the highest and 50% higher than for the retail store strategy. Less studied logistics activities such as unpacking and reverse logistics all together accounted for up to one third of total expenses for both strategies. In omnichannel, operations and logistics managers must still ensure the profitability of the online channel if they want to succeed in the grocery business. This framework will help managers identify and estimate the most relevant cost drivers, and to allocate them to the main operational activities.","PeriodicalId":41823,"journal":{"name":"International Journal of Production Management and Engineering","volume":" ","pages":""},"PeriodicalIF":1.5,"publicationDate":"2023-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46709121","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}