Developments in Logistics and Supply Chain Management This page intentionally left blank Developments in Logistics and Supply Chain Management Past, Present and Future Edited by Kulwant S. Pawar Nottingham University Business School, UK Helen Rogers Nuremberg Institute of Technology, Germany Andrew Potter Cardiff University, UK Mohamed Naim Cardiff University, UK Introduction, selection and editorial matter © Kulwant Pawar, Helen Rogers, Andrew Potter and Mohamed Naim 2016 Individual chapters © Respective authors 2016 Softcover reprint of the hardcover 1st edition 2016 978-1-137-54123-9 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2016 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-55848-3 ISBN 978-1-137-54125-3 (eBook) DOI 10.1057/9781137541253 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Contents List of Figures v iii List of Tables x Notes on Contributors xii 1 Introduction 1.1 Introduction and Overview 3 Kulwant S. Pawar, Helen Rogers, Andrew Potter and Mohamed Naim 2 Supply Chain Design and Configurations 2.1 Framework for Designing Robust Supply Chains 13 Jelena V. Vlajic, Jack G. A. J. van der Vorst and Rene Haijema 2.2 Collaborative Supply Chain Configurations: The Implications for Supplier Performance in Production and Inventory Control 27 Jan Holmstrőm, Johanna Småros, Stephen M. Disney and Denis R. Towill 2.3 A Critical Review of Surveys in Supply Chain Integration Research 38 Dirk Pieter van Donk and Taco van der Vaart 2.4 The Reverse Amplification Effect in Supply Chains 5 2 Matthias Holweg and John Bicheno 3 Agility, Flexibility and Risk 3.1 Creating the Agile Supply Chain: Issues and Challenges 6 1 Martin Christopher, Alan Harrison and Remko van Hoek 3.2 Process Control in Agile Supply Chain Networks 69 Michael Pearson, Ron Masson and Anthony Swain 3.3 The Power of Flexibility for Mitigating Supply Chain Risks 8 0 Christopher Tang and Brian Tomlin 3.4 Managing Risk in International Inbound Supply Chains 9 0 Claudia Colicchia, Fabrizio Dallari and Marco Melacini v vi Contents 4 Supplier Management 4.1 A Computerised Vendor Rating System 103 Abby Ghobadian, Alan Stainer, Jonathan Liu and Tibor Kiss 4.2 Toyota Supplier System in Japan and the UK 1 13 Peter Hines 4.3 Readiness for Supply Chain Collaboration and Supplier Integration – Findings from the Chinese Automotive Industry 125 Joachim Schadel, Martin Lockström, Roger Moser and Norma Harrison 4.4 Business Process Management and Supply Chain Collaboration: Critical Comparison of Four Thai Case Studies 138 Jiraporn Pradabwong, Christos Braziotis and Kulwant S. Pawar 5 Retail Logistics 5.1 Customer Segmentation Based on Buying and Returning Behaviour: Supporting Differentiated Service Delivery in Fashion E-Commerce 153 Klas Hjort, Björn Lantz, Dag Ericsson and John Gattorna 5.2 The Retailer’s Stock-Keeping Unit Allocation Problem 170 Balram Avittathur and Janat Shah 5.3 Exploring Supply Chain Relationships and Information Exchange in UK Grocery Supply Chains: Some Preliminary Findings 181 Mark Barratt 6 ICT and Decision Support 6.1 Traceability Information Management System for Composite Production Process 191 Takeo Takeno, Azuma Okamoto, Mitsuyoshi Horikawa, Toshifumi Uetake, Mitsumasa Sugawara and Masaaki Ohba 6.2 Flexible Mass Customisation: Managing Its Information Logistics Using Adaptive Cooperative Multi-agent Systems 2 03 Ingo J. Timm, Peer-Oliver Woelk, Peter Knirsch, Hans-Kurt Tönshoff and O. Herzog Contents vii 7 Transport and Distribution 7.1 The Determinants of Containerised Grain Shipping 2 15 Ted T. C. Lirn and Jung-De Wang 7.2 Modelling the Impact of Factory Gate Pricing on Transport and Logistics 231 Andrew Potter, Chandra Lalwani, Stephen Disney and Helder Velho 7.3 The Load Planning Problem for Less-Than-Truckload Motor: Carriers and a Solution Approach 2 40 Naoto Katayama and Shigeru Yurimoto 8 Sustainable and Responsible Supply Chains 8.1 Does Firm Size Influence Sustainable Performance in Food Supply Chains: Insights from Greek SMEs 2 53 Michael Bourlakis, George Maglaras, Emel Aktas, David Gallear and Christos Fotopoulos 8.2 Setting Targets for Reducing Carbon Emissions from Logistics Operations: Principles and Practice 2 66 Alan McKinnon 8.3 On the Operational Logistic Aspects of Reuse 2 79 Simme Douwe P. Flapper Index 289 List of Figures 2.1.1 R esearch model for robust supply chain design 1 4 2.1.2 P reliminary list of sources of supply chain vulnerability ( italic letters denote specific sources related to food supply chains) 1 6 2.2.1 A Type 0 supply chain conceptualised by a water tank model 3 0 2.2.2 A Type I supply chain conceptualised by a water tank model 3 1 2.2.3 A Type II supply chain conceptualised by a water tank model 3 2 2.2.4 A Type III supply chain conceptualised by a water tank model 3 3 2.2.5 A Type IV supply chain conceptualised by a water tank model 3 4 2.3.1 R esearch model 4 7 2.4.1 R everse amplification effect 5 6 3.1.1 F isher’s supply chain matrix 6 2 3.2.1 K ey retailer 7 0 3.2.2 D ecision frontiers for a typical agile supply chain network 7 2 3.2.3 T ime series life cycle of high fashion product over nine-week period 7 5 3.2.4 G lobal phase plane 7 6 3.2.5 M ix phase plane 7 6 3.3.1 T he relative value of flexibility 8 3 3.3.2 f -flexibility manufacturing systems 8 6 3.3.3 A manufacturing process associated with the f -postponement strategy 8 8 3.4.1 E xemplification of contingency plans in the supply process 9 5 3.4.2 I mpact of the DS and DC on the expected annual LC (Strategy 3) 9 8 4.2.1 S upply chain responsiveness: UK and Japanese automotive industry 1 15 4.2.2 V alue adding in the Toyota supplier system in Japan and UK supplier system 1 17 viii List of Figures ix 4.2.3 D emand amplification in UK and Japanese automotive industries 1 18 4.2.4 T he quality filter concept 1 20 4.3.1 C onceptual framework of antecedents to supplier integration 1 35 5.1.1 T he four types of customers 1 61 5.3.1 Research themes 1 82 6.1.1 Three-layered traceability system 1 93 6.1.2 An example of composite production process 1 96 6.1.3 Relations between sales division and manufacturing division 1 98 6.1.4 A list of surplus stocks 2 00 6.1.5 Process of implosion MRP 2 00 6.1.6 A list of available additional sales orders 2 01 6.2.1 IntaPS architecture 2 06 6.2.2 M ulti-agent system architecture 2 09 7.1.1 Number of containerised grain cargo export volume (in terms of TEUs) 2 18 7.1.2 Exhibition of triangular fuzzy function 2 22 7.1.3 Five linguistics variable and their membership function from the survey 2 23 7.1.4 Hierarchical structure of grain importers’ transport mode choice behaviour 2 26 7.2.1 The evolution of grocery distribution 2 31 7.2.2 The location of the consolidation centres for ambient and composite products 2 37 7.3.1 Illustrative load planning network 2 41 7.3.2 Frequency of direct service between a pair of terminals 242 7.3.3 C onvergence of method for 30 nodes 248 8.2.1 Carbon abatement and related cost profiles for four business functions 2 69 8.3.1 G oods flows in the context of reuse 281