Queueing network modeling and lead time compression of electronic procurement (original) (raw)

Performance analysis of e-supply chain using M/M/1 queue in Business to Business

2014

Business to business is the transaction of information between businesses carried out using the e-supply chain. Manufacturer use e-supply chain for producing products to satisfy the needs of the end users to do these correct suppliers should be identified by the manufacturer. The ordering of the sub product which is to be manufactured by the supplier is done through internet. In this paper we are proposing integrated e-supply chain framework consists of a manufacturer and any number of suppliers who are going to selected depending among the utilization of the queue, average number of packet in the queue and the number of packet processed time in seconds using M/M/1 queue. An algorithm is proposed and same is executed in the MATLAB.

Exploring the Optimal Path for Supply Chain System Using Queueing Models

2019

In this paper, we are exploring the optimal path for the supply chain system by using queueing models. We analyze different optimal paths are designed using various optimal channels from a different location. This article aims to obtain the best optimal path so that the delivery of the system makes more effective. The various performance measures have been determined such as queue length, response time and waiting time corresponding to store, packing, and transportation by adopting different paths. Numerical results have been obtained using MATLAB which validates for our model.

Modelling and simulation of procurement processes

Research in Logistics and Production, 2014

The Authors’ research has concentrated on the modelling and parametrization of procurement processes – oder/ delivery processes. The methods employed in the research were: modelling approach towards logistics systems and processes as well iGrafx software. The result of the works is the Authors’ own project composed of 10 elements, which allows for conducting a multi-criteria analysis of procurement and transportation processes. This paper describes the simulation of procurement according to economic order quantity method. Business processes today are volatile, complex and with many interdependencies; a tendency to reduce the risk of failure is prevalent. Computer simulation as a tool for analysing and predicting future enables the testing of various solution variants over a short period of time – at no capital investment cost or without taking unnecessary risk. The result of the research has a practical application in both manufacturing and trading companies. Paper type: Research pa...

Moving Procurement Systems to the Internet

European Management Journal, 2003

This paper reports the results of a research project addressing the current state of eprocurement technologies. It analyzes which companies are moving fast into these technologies, how experimentation is taking place to learn about the business opportunities that may emerge through these technologies, the risks and benefits associated with them, and the expected evolution of e-procurement technologies in the near future. Predictions few years back indicated that e-procurement technologies would grow exponentially over the first half of the decade. However, these expectations have not been met. Current e-procurement technologies are in their developmental infancy and a dominant design is still unavailable. The results of our survey indicates that the final equilibrium may include several technologies, each one serving a different segment of the market. This multiplicity of solutions is likely to further delay the transition of the industry to its growth stage. Companies are approaching eprocurement technologies with very different strategies based upon the perceived risks and benefits associated with the technology and their competitive position and environment. We identify two main types of companies. The first type is moving aggressively to adopt eprocurement technologies, frequently experimenting with various solutions. The second type adopts a more conservative strategy by selectively experimenting, typically with one technology. This latter group relies on these limited experiences to provide the capabilities to move quickly into the technology as a dominant design emerges. The survey results suggest that e-procurement technologies will become an important part of supply chain management and that the rate of adoption will accelerate as aggressive adopters share their experiences and perceptions of low risk.

e-Procurement and Purchase Algorithm for Supply Chain Management

International Journal of Computer and Communication Technology, 2017

A technique is developed for use in supply-chain management that assists the decision-making process for purchases of direct goods. Based on projections for future prices and demand, Request for quotes are constructed and quotes are accepted that optimize the level of inventory each day, while minimizing total cost. The problem is modeled as a Markov decision process, which allows for the computation of the utility of actions to be based on the utilities of consequential future states. Dynamic programming is then used to determine the optimal quote requests and accepts at each state in Markov Decision Process. A mathematical algorithm for purchasing can also be developed which is suitable for manufacturing companies to solve the supply chain management problems.

Hidden opportunities to reduce order fulfilment costs

MATEC Web of Conferences, 2021

The purpose of the work is to draw attention to the existing hidden reserves of increasing the efficiency of systems, in which solutions for their optimisation are associated with the analysis of models of problems of the theory of queueing networks (for example, problems of transport support for the supply of multiple orders). We are talking about such models that correlate precisely with the choice of queueing the existing portfolio of orders. Approaches to the optimisation of such systems are considered, allowing to consider the random nature of the change in the rates of fines over time and special additional costs related to the moment of order set formation.

Auction-Based Mechanisms for Electronic Procurement

IEEE Transactions on Automation Science and Engineering, 2007

This article reviews recent research and current art in the area of auction based mechanisms for electronic procurement. These mechanisms are becoming increasingly relevant in modern day e-procurement systems since they enable a promising way of automating negotiations with suppliers and achieving the ideal goals of procurement efficiency, cost minimization, and agent based deployment. The survey delineates different representative scenarios in e-procurement where auctions can be deployed and describes the conceptual and mathematical aspects of different categories of procurement auctions. We discuss three categories: (1) multi-unit auctions for a single homogeneous type of item; (2) combinatorial procurement auctions where the buyer seeks to procure a bundle of multiple items and the suppliers bid for subsets of the bundle; and (3) multi-attribute auctions where the procurement decisions transcend cost considerations alone, to take into account lead times, logistics costs, and other important attributes. In all three cases, the winner determination problem and the determination of payments turn out to be interesting and challenging combinatorial optimization problems. In our review, we present mathematical formulation of procurement scenarios under each category, bring out the challenge involved in solving the problems, and indicate active research topics. We also present a case study of electronic procurement at General Motors. A Note to Practitioners-Since the burst of the dot.com bubble, many procurement professionals and purchasing managers have begun to question the ability of the Internet to redefine procurement processes within their firms. In this article we set out to show that this would be a misplaced sense of deja vu because the Internet along with a milieu of decision technologies based on Game Theory and Optimization is proving to be a significant tool in the hands of procurement professionals. Sans all the hype, the dot.com phenomena has left behind useful ideas including that of e-platforms for on-line auctions. Building upon this core conceptual construct, familiar to most procurement professionals, we first illustrate the successful implementation of sophisticated auction models by pioneering firms, based on optimization technologies, that meet the requirements of complex business-to-business procurement. We then discuss the exciting field of research this has opened up with a vast potential for immediate and gainful applications. We review the existing stateof-the-art in this field, track its recent developments and classify the models available for different procurement scenarios. We also provide pointers to areas that require further fundamental as well as applied research which calls for the attention of not just academic researchers but also practicing professionals.

Queueing-Inventory Models for a Two-Vendor System with Positive Service Times

2020

Queueing-inventory systems wherein the demands are processed with random service times have been getting a lot of attention recently. In such systems, each demand needs one or more inventory items and needs positive processing times. The inventory is generally replenished using -type policy and the lead times are assumed to be random. In this paper we introduce the concept of multiple vendors who will be responsible for the replenishment of inventory. Under the assumptions of a two-vendor system wherein the demands occurring according to a Markovian arrival process, the service times to be of phase type, and the lead times to be exponentially distributed with parameter depending on the vendor, we analyze the model in steady-state using the well-known matrix-analytic methods. Some interesting numerical examples are presented including one comparing the one and the two-vendor systems.

Modeling the Multi-channel Section in the Supply Chain System using the Multiserver Queue Analogy

Jurnal Teknik Industri, 2021

The industry generally consists of a supply chain system. The main constituents of any supply chain system are suppliers, manufacturers, distribution centers, and retailers. The system configuration can be straight chain, branched, cyclic, or a combination of all. An analytical model is needed to study system behavior as a result of the dynamics of its constituents. Modeling a multi-channel section becomes quite a challenging job in this regard. A method of modeling the multi-channel section will be discussed in this paper by adopting multi-server queues. As is well known, in a multi-server queue, there is a branching point at which the flow of entities begins to spread across several parallel servers. In the modeling perspective of this paper, the branching point is in the buffer (finished good warehouse in the factory, i.e., the focal echelon). That is the end of the waiting line from which the entity specifically moves to one of the servers, or in this context; it is called a cha...