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

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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.

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Notes

  1. http://logisticsviews.blogspot.sg/2012/11/the-future-of-global-supply-chain.html#!/2012/11/the-future-of-global-supply-chain.html.

  2. Graves, S.C. and Tomlin, B.T. (2003) Process flexibility in supply chains. Management Science, 49, 907–919.

  3. http://www.ainonline.com/aviation-news/air-transport/2016-02-11/changi-airport-outlines-expansion-plans.

  4. https://www.singaporepsa.com/our-business/terminals.

  5. http://service.suvarnabhumiairport.com/business_phase2_en.php.

  6. http://www.businesstimes.com.sg/companies-markets/coca-cola-singapore-beverages-to-shut-Singapore-plant-commits-us100m-investment.

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Acknowledgements

We thank the editor-in-chief and anonymous reviewers for their constructive comments.

Author information

Authors and Affiliations

  1. Aston Business School, Aston University, Birmingham, UK

    Gajanan B. Panchal

  2. SupChainEra Company, Melbourne, Victoria, 3128, Australia

    Hassan Mirzahosseinian

  3. ESSCA School of Management, Lyon, France

    Sunil Tiwari

  4. EMLYON Business School, Ecully, France

    Ajay Kumar

  5. Jindal Global Business School, O P Jindal Global University, Sonepat, Haryana, India

    Sachin Kumar Mangla

Authors
  1. Gajanan B. Panchal
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  2. Hassan Mirzahosseinian
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  3. Sunil Tiwari
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  4. Ajay Kumar
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  5. Sachin Kumar Mangla
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Correspondence to Ajay Kumar.

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Appendices

Appendix A

See Tables

Table 9 Lead-time matrix
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Table 10 Cost matrix
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Appendix B

See Figs.

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Plant's utilization

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Fig. 15
figure 15

New plant utilization after lines’ capacity adjustment

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15.

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Panchal, G.B., Mirzahosseinian, H., Tiwari, S. et al. Supply chain network redesign problem for major beverage organization in ASEAN region. Ann Oper Res 324, 1067–1098 (2023). https://doi.org/10.1007/s10479-022-04571-0

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  • DOI: https://doi.org/10.1007/s10479-022-04571-0

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