Article: Global and local supply chain sourcing design: cost and delivery reliability comparison in unimodal and intermodal transportation Journal: International Journal of Shipping and Transport Logistics (IJSTL) 2022 Vol.15 No.1/2 pp.164 - 190 Abstract: The design of the sourcing strategy is key to gain a competitive advantage. In recent times, supplier failure is one of the most crucial risks of supply chains. The purpose of this study is to investigate the cost of local and global sources of the supply chain (SC) with the comparison of delivery reliability. The approach of this study applied data from one of the largest paper and board industries in Asia. We used a bi-objective mixed-integer linear programming (BOMILP) model for the formulation of the problem. Pareto optimal solutions are generated by implementing the multi-objective genetic algorithm (MOGA) to facilitate decision-makers to trade-off between cost and delivery reliability. The results reveal significant savings of 138.51 million Pkr per year by contracting with local suppliers (Pakistan) as compared to global suppliers from Turkey, China and Vietnam. However, the delivery reliability of global suppliers is higher than local suppliers. Further, this study can be developed by investigating the performance, wastage, and quality of the supplies provided by local and global suppliers. Inderscience Publishers - linking academia, business and industry through research

Title: Global and local supply chain sourcing design: cost and delivery reliability comparison in unimodal and intermodal transportation

Authors: Rizwan Shoukat; Xiaoqiang Zhang

Addresses: School of Transportation and Logistics, Southwest Jiaotong University, Chengdu, China; National Engineering Laboratory of Integrated Transportation Big Data Application Technology, Chengdu, China; Lab of National United Engineering Laboratory of Integrated and Intelligent Transportation, No. 111, North Second Ring Road, Chengdu, China ' School of Transportation and Logistics, Southwest Jiaotong University, Chengdu, China; National Engineering Laboratory of Integrated Transportation Big Data Application Technology, Chengdu, China; Lab of National United Engineering Laboratory of Integrated and Intelligent Transportation, No. 111, North Second Ring Road, Chengdu, China

Abstract: The design of the sourcing strategy is key to gain a competitive advantage. In recent times, supplier failure is one of the most crucial risks of supply chains. The purpose of this study is to investigate the cost of local and global sources of the supply chain (SC) with the comparison of delivery reliability. The approach of this study applied data from one of the largest paper and board industries in Asia. We used a bi-objective mixed-integer linear programming (BOMILP) model for the formulation of the problem. Pareto optimal solutions are generated by implementing the multi-objective genetic algorithm (MOGA) to facilitate decision-makers to trade-off between cost and delivery reliability. The results reveal significant savings of 138.51 million Pkr per year by contracting with local suppliers (Pakistan) as compared to global suppliers from Turkey, China and Vietnam. However, the delivery reliability of global suppliers is higher than local suppliers. Further, this study can be developed by investigating the performance, wastage, and quality of the supplies provided by local and global suppliers.

Keywords: supply chain; genetic algorithm; Pareto solutions; mixed-integer linear programming; local and global sources.

DOI: 10.1504/IJSTL.2022.125863

International Journal of Shipping and Transport Logistics, 2022 Vol.15 No.1/2, pp.164 - 190

Received: 22 Nov 2020
Accepted: 03 Nov 2021
Published online: 30 Sep 2022 *

Title: Global and local supply chain sourcing design: cost and delivery reliability comparison in unimodal and intermodal transportation

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