Supply chain lead time reduction in a pharmaceutical production warehouse – a case study

Investigation of the pharmaceutical warehouse locations under COVID-19-A case study for Duzce, Turkey

Pharmaceutical warehouses are among the centers that play a critical role in the delivery of medicines from the producers to the consumers. Especially with the new drugs and vaccines added during the pandemic period to the supply chain, the importance of the regions they are located in has increased critically. Since the selection of pharmaceutical warehouse location is a strategic decision, it should be handled in detail and a comprehensive analysis should be made for the location selection process. Considering all these, in this study, a real-case application by taking the problem of selecting the best location for a pharmaceutical warehouse is carried out for a city that can be seen as critical in drug distribution in Turkey. For this aim, two effective multi-criteria decision-making (MCDM) methodologies, namely Analytic Hierarchy Process (AHP) and Evaluation based on Distance from Average Solution (EDAS), are integrated under spherical fuzzy environment to reflect fuzziness and indeterminacy better in the decision-making process and the pharmaceutical warehouse location selection problem is discussed by the proposed fuzzy integrated methodology for the first time. Finally, the best region is found for the pharmaceutical warehouse and the results are discussed under the determined criteria. A detailed robustness analysis is also conducted to measure the validity, sensibility and effectiveness of the proposed methodology. With this study, it can be claimed that literature has initiated to be revealed for the pharmaceutical warehouse location problem and a guide has been put forward for those who are willing to study this area.

Leveraging Capabilities of Technology into a Circular Supply Chain to Build Circular Business Models: A State-of-the-Art Systematic Review

The recent technological inclusions in supply chains are encouraging practitioners to continuously rethink and redesign these supply chains. Organizations are trying to implement sustainable manufacturing and supply chain practices to utilize their resources to the full extent in order to gain a competitive advantage. Circular supply chain management acts as the main pathway to achieve optimal circular business models; however, research in this area is still in its infancy and there is a need to study and analyze how the benefits of technology can be leveraged in conventional models to impact circular supply chains and build smart, sustainable, circular business models. To gain better familiarity with the future research paradigms, a detailed systematic literature review was conducted on this topic to identify the dynamics of this field and domains deserving further academic attention. A holistic and unique review technique was used by the authors to capture maximal insights. A total of 96 publications from 2010 to 2021 were selected from the Web of Science core collection database through strict keyword search codes and exclusion criteria, with neat integration of systematic and bibliometric analyses. The findings of this study highlight the knowledge gaps and future research directions, which are presented at the end of this paper.

The nexus of information sharing, technology capability and inventory efficiency

Purpose

This paper aims to examine the effect of inventory information sharing on inventory efficiency and its intervening effect of information technology (IT) capability in manufacturing firms.

Design/methodology/approach

Stratified random sampling and filter questions selected targeted respondents, and an online survey collected 124 completed questionnaires from Malaysian manufacturing firms. partial least squares structural equation modeling (PLS-SEM) examined the structural model and hypothesis statement. An analysis of importance-performance map analysis (IPMA) test identified the relative importance drivers of inventory efficiency.

Findings

The findings showed that enhanced IT capabilities in manufacturing firms mediate a positive relationship between inventory sharing and inventory efficiency.

Research limitations/implications

This study portrays the relationship between inventory level, demand and information sharing. The research was carried out only within Malaysian manufacturing firms.

Practical implications

These findings will enable the management of manufacturing firms to design and visualise their inventory levels and share best practices across supply chain networks to achieve effective and optimised inventory planning.

Social implications

This study illustrates an intervention model that offers a direct and indirect impact of IT capabilities that allow scholars to close inventories productivity gaps in research.

Originality/value

This paper extends the limited literature on the sharing of inventory information and inventory productivity, notably from a strategic management perspective. The findings help scholars clearly understand the information systems capability and its mediating impact on information sharing and inventory efficiency’s relationship in the manufacturing sector. Moreover, demand information sharing affected the dynamic supply chain.

Improving the performance of a Malaysian pharmaceutical warehouse supply chain by integrating value stream mapping and discrete event simulation

Purpose

Lean implementation is vastly incorporated in core manufacturing processes; however, its applicability in the supply chain and service industry is still in its infancy. To acquire performance excellence and thrive in the global competitive market, many firms are adopting newer methodologies. But, there is a stringent need for production simulation systems to analyze supply chains both inbound and outbound. The era of face validation is slowly disappearing. Lean tools and procedures that provide future state assumptions need advanced tools and techniques to measure, quantify, analyze and validate them. The purpose of this study is to enable dynamic quantification and visualization of the future state of a warehouse supply chain value stream map using discrete event simulation (DES) technique.

Design/methodology/approach

This study aimed to apply an integrated approach of the value stream mapping (VSM) and DES in a Malaysian pharmaceutical production warehouse. The main focus is diverted towards reducing the warehouse supply chain lead time by initially constructing a supply chain value stream map (both present state and future state) and integrating its data in a DES modelling and simulation software to dynamically visualize the changes in future state value stream map.

Findings

The DES simulation was able to mimic the future state lead time reductions successfully, which assists in better decision-making. Improvements were seen related to total lead time, process time, value and non-value-added percentage. Warehouse performance metrics such as receiving, put away and storage rates were substantially improved along with pallet processing time, worker and forklift throughput usage percentage. Detailed findings are clearly stated at the end of this paper.

Research limitations/implications

This study is limited to the warehouse environment and further additional process models and functional upgrades in the DES software systems are very much needed to directly visualize and quantify all the possible Lean assumptions such as radio frequency image identification/Andon (Jidoka), 5S, Kanban, Just-In-Time and Heijunka. However, DES has a leading edge in extracting dynamic characteristics out of a static VSM timeline and capture details on discrete events precisely by picturizing facility modification and lead time related to it.

Practical implications

This paper includes all the fundamental pharmaceutical warehouse supply chain processes and the simulations of the future state VSM in a real-life context by successfully reducing supply chain lead time and allowing managers in inculcating near-optimal decision-making, controlling and coordinating warehouse supply chain activities as a whole.

Social implications

This integrated approach of DES and VSM can involve managers and top management to support the adoption of anticipated changes. This study also has the potential to engage practitioners, researchers and decision-makers in the warehouse industry.

Originality/value

This study involves a powerful DES software package that can mimic the real situation as a virtual simulation and all the data and model building are based on a real warehouse scenario in the pharmaceutical industry.