Market-Oriented Procurement Planning Leading to a Higher Service Level and Cost Optimization

Dynamic Innovation Information System (DIIS) for a New Management Age

Innovations are essential for global development and market dynamics. Innovation management is central to organizations for gaining adaptability and dynamic capabilities to ensure their sustainability over time. Right decisions are essential for the implementation of innovations. However, on many occasions, especially in the product development process, decisions are taken based on static analysis, qualitative criteria, questionnaires, and/or quantitative evaluations that are outdated. Moreover, many innovation developments do not consider the existing databases in their information systems of similar innovation projects, especially in the early phases of new innovations when evaluations are mainly driven by area, group, or person. Furthermore, inventions are introduced in different regions, plants, and socio-economic situations, providing different results. In this context, considering that innovations shape our current and future world, including all products and services, as well as how humans, organizations, and machines interact, the significance of the paper is clear. Therefore, it is necessary to develop an innovation management model based on the Viable System Model to cope with any potential future environment based on internal organizational capabilities. For this purpose, the paper designs a Digital Ecosystem for the Fourth Industrial Revolution (DE4.0) based on the Plan-Do-Check-Act methodology applicable to any information system consisting of a digital twin, a simulation model, databases from existing information systems, and quality management techniques. This DE4.0 provides a huge advantage for the applicability and scalability of innovations as it allows one to plan, monitor, assess, and improve. Moreover, based on the conceptual model, a generic project evaluation scheme is developed, providing a platform for innovation project management and control during the whole innovation life cycle. As a result, the research provides a scientific and practical contribution for an integrated management of innovations based on the best information and set of techniques available. Based on this framework, a supply-chain case study is developed. The results show how, depending on the intended goals, the past experiences, the evolution of the innovation, and the innovation scope, indicators can be influenced towards reaching the initial goals and reducing the innovation risks. Finally, a discussion about the potential use and role of the DE4.0 for innovation projects and the related learning process is performed.

A multi-stage supply chain disruption mitigation strategy considering product life cycle during COVID-19

The global pandemic of COVID-19 has caused severe damage to the supply chain such that manufacturers may face long-term supply disruptions. In this paper, a disruption recovery strategy of a supply chain system is investigated from the perspective of product change, in which the life cycle and design change time of a new product are both considered in order to minimize the losses of manufacturer after disruptions. A mixed-integer linear programming (MILP) model is presented to address the disruption recovery problem for this multi-period, multi-supplier, and multi-stage supply chain system. A two-stage heuristic algorithm is designed to solve the problem. Experimental results show that the proposed disruption mitigation strategy can effectively reduce the profit loss of manufacturer due to supply disruption, and demonstrate the impact of product life cycle in the selection of new product design planning. A sensitivity analysis is performed to ensure the applicability of the model in the actual environment, which illustrates the effect of different parameter changes on the results. This work can help manufacturers establish an optimal recovery strategy whenever the supply chain system experiences supply disruptions.

An Optimized System to Reduce Procurement Risks and Stock-Outs: A Simulation Case Study for a Component Manufacturer

In the current global system; supply chains are at risk due to increasing procurement shortages, supply disruptions, and the reliability of on-time deliveries with the original order quantities. As a result, an anticipated management model is of vital importance to provide companies with the productive flexibility necessary to adapt quickly to supply changes, in order to ensure the quality and delivery time through efficient management of stocks and supply costs. In this context, this research aims to develop a system to complement classical procurement planning based on inventory management methods and MRP (material requirements planning) systems by considering suppliers’ behavior regarding procurement risks. For this purpose, a system is developed that seeks to simulate the impacts of procurement shortages of different natures. Moreover, the research investigates the development of a system that performs procurement planning of a component manufacturer to determine the supply orders necessary to meet the master production schedule. The system is analyzed based on a set of indicators in the event that the supplier of a material needed for production does not supply on time or has short-term problems. Several scenarios are simulated, and the results are quantified by changing the procurement order quantities, which may or may not follow the economic order quantity (EOQ) model, and the potential procurement disruptions or shortages. The results show how the simulation and anticipation of potential suppliers’ procurement behavior concerning potential shortages and their probability are key for successful procurement within a joint strategy with classical procurement methods.

Maritime Supply Chain Optimization by Using Fuzzy Goal Programming

Fuzzy goal programming has important applications in many areas of supply chain, logistics, transportation and shipping business. Business management has complications, and there exist many interactions between the factors of its components. The locomotive of world trade is maritime transport and approximately 90% of the products in the world are transported by sea. Optimization of maritime operations is a challenge in order to provide technical, operational and financial benefits. Fuzzy goal programming models attract interests of many scholars, therefore the objective of this paper is to investigate the problem of minimization of total cost and minimization of loss or damage of containers returned from destination port. There are various types of fuzzy goal programming problems based on models and solution methods. This paper employs fuzzy goal programming with triangular fuzzy numbers, membership functions, constraints, assumptions as well as the variables and parameters for optimizing the solution of the model problem. The proposed model presents the mathematical algorithm, and reveals the optimal solution according to satisfaction rank from 0 to 1. Providing a theoretical background, this study offers novel ideas to researchers, decision makers and authorities.

Special Issue of the Manufacturing Engineering Society 2020 (SIMES-2020)

The Special Issue of the Manufacturing Engineering Society 2020 (SIMES-2020) has been launched as a joint issue of the journals “Materials” and “Applied Sciences”. The 14 contributions published in this Special Issue of Applied Sciences present cutting-edge advances in the field of Manufacturing Engineering focusing on advances and innovations in manufacturing processes; additive manufacturing and 3D printing; manufacturing of new materials; Product Lifecycle Management (PLM) technologies; robotics, mechatronics and manufacturing automation; Industry 4.0; design, modeling and simulation in manufacturing engineering; manufacturing engineering and society; and production planning. Among them, the topic “Manufacturing engineering and society” collected the highest number of contributions (representing 22%), followed by the topics “Product Lifecycle Management (PLM) technologies”, “Industry 4.0”, and “Design, modeling and simulation in manufacturing engineering” (each at 14%). The rest of the topics represent the remaining 35% of the contributions.

Saudi Procurement System and Regulations: Overview of Local and International Administrative Contracts

This research investigated the Saudi procurement system and regulations in the context of local and international administrative contracts. Mainly, Saudi Government Tenders and Procurement Law was investigated in more detail to understand basic rules and regulations of the bidding, selection process, and penalties in case of delay in the administrative contract process. Moreover, a matter of direct purchase was also investigated to understand the circumstances and conditions of a direct purchase. In addition, the international administrative contract was discussed to comprehend the nature and regulations of such contracts. A matter of arbitration was also investigated to know the arbitrator’s role and powers in case of a dispute in contracting and performing international administrative contracts outside the country. The arguments against arbitration were also deliberated to recognize the limitations of arbitration in the presence of local and foreign legislations. Overall, Saudi Government Tenders and Procurement Law is well-versed and organized in displaying all-important jurisdictions and matters regarding administrative contracts and the procurement system.