Systemic Evaluation of a Policy of Volume Flexibility in a Papaya Distribution Supply Chain

Systemic Evaluation of a Policy of Volume Flexibility in a Papaya Distribution Supply Chain

Main Article Content

Andrés Mauricio Paredes Rodríguez
Andrés Felipe Salazar Ramos


Volume flexibility is used in this article to determine responsiveness to changes in the deterioration factors of perishable stages in a supply chain. The main objective of this study is to evaluate the impact of this strategy on two key indicators for network performance, such as logistics costs and service levels. The research involves the operation of a papaya distribution network formed by a producer and a retailer, which is simulated through System Dynamics. A policy of flexibility is achieved, which dramatically improves volume indicators such as the level of service and costs considered in the study. However, using this strategy involves taking on a higher cost of inventory storage and an additional cost of capacity increase.

Article Details

##references## ##ver##

Bhunia, a. K., & Maiti, M. (1999). An inventory model of deteriorating items with lot-size dependent replenishment cost and a linear trend in demand. Applied Mathematical Modelling, 23(4), 301–308.

Blome, C., Schoenherr, T., & Eckstein, D. (2014). The impact of knowledge transfer and complexity on supply chain flexibility: A knowledge-based view. International Journal of Production Economics, 147, 307–316.

Braunscheidel, M. J., & Suresh, N. C. (2009). The organizational antecedents of a firm’s supply chain agility for risk mitigation and response. Journal of Operations Management, 27(2), 119–140.

Castellanos, O., Fúquene, A., Fonseca, S., Ramírez, D., Giraldo, E., & Valencia, M. (2011). ESTUDIO DE LA CADENA PRODUCTIVA DE LA PAPAYA EN LA REGIÓN DEL NORTE DEL VALLE-BRUT.

Croom, S., Romano, P., & Giannakis, M. (2000). Supply chain management: an analytical framework for critical literature review. European Journal of Purchasing & Supply Management, 6(1), 67–83.

Disney, S. M., & Towill, D. R. (2003). The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains. International Journal of Production Economics, 85(2), 199–215.

Higuchi, T., & Troutt, M. D. (2004). Dynamic simulation of the supply chain for a short life cycle product—Lessons from the Tamagotchi case. Computers & Operations Research, 31(7), 1097–1114.

Jack, E. P., & Raturi, A. (2002). Sources of volume flexibility and their impact on performance. Journal of Operations Management, 20(5), 519–548.

Lee, H. L., Padmanabhan, V., & Whang, S. (1997). The bullwhip effect in supply chains. MIT Sloan Management Review, 38(3), 93–102.

Li, R., Hongjie, L., & Mawhinney, J. (2010). A Review on Deteriorating Inventory Study. Journal of Service Science and Management, 03(01), 117–129.

Minegishi, S., & Thiel, D. (2000). System dynamics modeling and simulation of a particular food supply chain. Simulation Practice and Theory, 8(5), 321–339.

Nita.H. Shah. (1993). Probabilistic time-scheduling model for an exponentially decaying inventory when delays in payments are permissible. International Journal of Production Economics, 32(1), 77–82.

Padmanabhan, G., & Vrat, P. (1995). EOQ models for perishable items under stock dependent selling rate. European Journal of Operational Research, 86(2), 281–292.

Paredes, A. M., & Salazar, A. F. (2014). Visión sistémica del análisis de la flexibilidad en cadenas de suministro de productos perecederos. Sistemas & Telemàtica, 63–86.

Sicilia, J., González, M., Febles, J., & Alcaide, D. (2014). An inventory model for deteriorating items with shortages and time-varying demand. International Journal of Production Economics, (2003), 1–8.

Stevenson, M., & Spring, M. (2007). Flexibility from a supply chain Flexibility perspective : definition and review. International Journal of Operations & Production Management, 27(7), 685–713.

Vickery, S., Calantone, R., & Dröge, C. (1999). Supply Chain Flexibility : An empirical study. Journal of Supply Chain Management, 35(3), 16–24.

Zhang, Q., Vonderembse, M. A., & Lim, J.-S. (2003). Manufacturing flexibility: defining and analyzing relationships among competence, capability, and customer satisfaction. Journal of Operations Management, 21(2), 173–191.