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Unformatted text preview: Volume 4, Number 2 - October, 2010 ● ● ● ● ● ● ● Heuristic Algorithms for Integration of Inventory and Transportation Decision in Single-depot Multi-Retailer System Chayathuch Phuaksaman The Potential of A Pan European Rail Freight Service Using Hub and Spoke Model D M Z Islam, T Zunder, and G Zome A Formal Approach for Setting The Optimal Design Specifications in House of Quality Dini Endah Setyo Rahaju and Dian Retno Sari Dewi Bi-Level Programming Approach of Location Model of State-owned Company Distribution System Ir. Sutanto Soehodho and Ir. Nahry, M.T. The Resource-Constraint Project Scheduling with Multi-mode under Fuzzy Random Environment Jun Gang and Jiuping Xu Multi-Objective Stochastic Optimization for Multi-Mode Resource-constrained Project Scheduling in The Highway Bridge Construction Projects Lu Gan and Jiuping Xu Aircraft Fleet Planning under Varying Demand Using Aggregate Resource Planning Concepts M. Ahsan Akhtar Hasin, Partha K. Pandit, and M. A. Shareef ● ● ● Supply Chain Performance: A Conceptual Model Rajwinder Singh, B.A. Metri, H. S. Sandhu, and Rajinder Kaur An Expected Value Model of Uncertain Multiobjective Bilevel Programming for Decentralization Problem and Its Application on Logistics Center Location Rui Wang and Jiuping Xu A Genetic Algorithm for Multicommodity Distribution Network Design of Supply Chain Voratas Kachitvichyanukul, Manavit Vinaipanit, and Kanokporn Kungwalsong Supported by Editors: The Chartered Institute of Logistics & Transport Thailand Thai Researchers' Consortium of Value Chain Management and Logistics Ruth Banomyong Ungul Laptaned Walailak Atthirawong Editor-In-Chief Assoc. Prof. Dr. Ruth Banomyong Thammasat University, Thailand E-mail: [email protected] Associate Editor Asst. Prof. Dr. Ungul Laptaned University of the Thai Chamber of Commerce, Thailand E-mail: [email protected] Assoc. Prof. Dr. Walailak Atthirawong King Mongkut University of Technology, Thailand E-mail: [email protected] Supported by Thai Researchers' Consortium of Value Chain Management and Logistics Executive Manager Chanond Rochanavirat, The Chartered Institute of Logistics and Transport, Thailand Thanachit Homkosol, Logistics Supply Chain Consultant Co., Ltd., Bangkok, Thailand International Editorial Board Anthony Beresford, Cardiff Business School, UK Chackrit Duangphastra, Ministry of Commerce, Thailand Britta Gamelgaard, Copenhagen Business School, Denmark David Grant, Hull University, UK Duangpun Kritchanchai, Mahidol University, Thailand Venus Lun, Hong Kong Polytechnic University, Hong Kong Tore Markeset, University of Stavanger, Norway David Menachof, City University, UK Dag Naslund, University of North Florida, USA Sathaporn Opasanon, Thammasat University, Thailand Yiannis E. Polychronakis, University of Salford, UK Mohammad Asif Salam, Assumption University, Thailand Tuanjai Somboonwiwat, King Mongkut University of Technology, Thailand Apichat Sopadang, Chiangmai University, Thailand Mahendrawathi E.R., Sepuluh Nopember Institute of Technology, Indonesia Thananya Wasusri, King Mongkut University of Technology, Thailand International Advisory Committee Pavel Catska, University of Canterbury, NZ Singha Chiamsiri, University of the Thai Chamber of Commerce, Thailand Martin Christopher, Cranfield School of Management, UK Erik J. de Bruijn, University of Twente, The Netherlands Mitsuo Gen, Waseda University, Japan Reza Lashkari, University of Winsor, Canada Patrick Le Mestre, Le Havre University, France John Liu, Hong Kong Polytechnic University, Hong Kong Bart MacCarthy, The University of Nottingham, UK Kai Mertins, Director Corporate Management, Berlin, Germany Rajesh Piplani, Nanyang Technological University, Singapore Nyoman Pujawan, Sepuluh Nopember Institute of Technology, Indonesia Saibal Ray, McGill University, Canada Vinod Singhal, Georgia Institute of Technology, USA Sompong Sirisoponsilp, Chulalongkorn University, Thailand Sathien Vongvichien, Chartered Institute of Logistics and Transport, Thailand Subash Wadhwa, Indian Institute of Technology, India Suhaiza Zailani - University Sains Malaysia, Malaysia The Chartered Institute of Logistics & Transport Thailand Publisher New UM Ad. Co. Ltd., Bangkok, Thailand Sales and Marketing Logistics Supply Chain Consultant Co., Ltd., Bangkok, Thailand Copyright © 2010 Thai Researchers’ Consortium of Value Chain Management and Logistics and The Chartered Institute of Logistics and Transport, Thailand All right reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without permission in writing from the editors. ISSN: 1906-0521 Editorial Welcome to the fourth issue of the International Journal of Logistics and Transport (IJLT). We, the editors, appreciate greatly the support of the Thai Researchers’ Consortium on Value Chain Management and Logistics (Thai-VCML) and The Chartered Institute of Logistics and Transport (Thailand) in asking us to become involved in this endeavor as editors of the IJLT. Over the past few years we have noticed the rapid development of transport, logistics and supply chain management within the industrial, academic and governmental sectors. More and more people are talking, researching and applying transport, logistics and supply chain management within a myriad of contexts. There is much excitement in the field. The IJLT has been established in response to this increased interest in transport, logistics and supply chain management issues as a forum for interested parties to advance knowledge and science of the said discipline. The geographical scope of the journal is not solely limited to Thailand and the surrounding region. This fourth issue of the IJLT represents a compilation of submitted papers. It is hoped that this issue will set a new benchmark in terms of academic publications in Thailand, especially in the field of business, economics, and accountancy. The Editors would like to invite academics, practitioners and policy makers to submit their manuscripts on transport, logistics and supply chain management. Through the support of our Editorial and Advisory Board, we hope to be able to provide academic articles of the highest quality to all our readers. 1 Ruth Banomyong Ungul Laptaned Walailak Atthirawong Editors The Editors Ruth Banomyong (PhD) Ruth Banomyong is an Associate Professor in the Department of International Business, Logistics and Transport Management at the Faculty of Commerce & Accountancy, Thammasat University in Thailand. He received his PhD in 2001, in the field of International Logistics within the Logistics & Operations Management Section (LOMS) at Cardiff Business School (UK). He was the winner of the James Cooper Cup in 2001 for the best PhD dissertation in logistics from the Chartered Institute of Logistics & Transport (CILT) in the United Kingdom. He has published over 50 papers and reports in such journals as International Journal of Physical Distribution and Logistics Management, International Journal of Logistics Research and Application, Asia Pacific Journal of Marketing and Logistics, Maritime Policy and Management, among others, and he has co-authored 3 books. Since 1995, Ruth has been a consultant on transport, logistics and supply chain management for international agencies such as the United Nations Conference on Trade & Development (UNCTAD), the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP), The World Bank, The Asian Development Bank (ADB) and, the Association of South East Asian Nations (ASEAN). Ungul Laptaned (PhD) Ungul Laptaned is an Assistant Professor in the Department of Logistics Engineering at the School of Engineering, University of the Thai Chamber of Commerce. He graduated with a Ph.D. in 2003 from the University of Nottingham, United Kingdom in the field of Manufacturing Engineering and Operations Management. Ungul has published over 30 proceedings and journal papers; for instances, Industrial Engineering Network, Asia Pacific Industrial Engineering and Management, International Association of Science and Technology for Development, Operations and Supply Chain Management, Intelligent Manufacturing System, etc. He was a program chair for previous international conference such as the 2nd International Conference on Operations and Supply Chain Management 2007, Bangkok. Ungul has been also assigned as organizing committee in the IASTED International Conference on Web-based Education 2009, Phuket. He is a journal editor of Thai Researchers’ Consortium of Value Chain Management and Logistics, and has consulted for several public organizations and industrial firms on logistics and supply chain management such as Thailand Research Fund, Phitsanulok Province, Public Warehouse Organization, Amatanakorn Industrial Estate, Wyncoast Industrial Park, and Iron and Steel Institute of Thailand. Walailak Atthirawong (PhD) Walailak Atthirawong is an Associate Professor in Department of Applied Statistics, Faculty of Science, King Mongkut’s Institute of Technology Ladkrabang, Thailand. She received a Ph.D. in Manufacturing Engineering and Operations Management at the University of Nottingham, England in 2002. Her teaching and research interests include applied operations research, supply chain management, forecasting and location decision. 2 Foreword Welcome to the 2nd edition of the 4th volume of the International Journal of Logistics & Transport (IJLT). The Editors are happy to note that the geographical diversity of submission has widely expanded with manuscripts from China, India, Indonesia, Thailand, and United Kingdom. The submitted manuscripts academic coverage represented the diverse scope of transport, logistics and supply chain management, and operations research. After the review process, a total of ten manuscripts were selected for publication. Article number one is co-authored by Chayathuch Phuaksaman and Paveena Chaovalitwongse, and is entitled “Heuristic Algorithms for Integration of Inventory and Transportation Decision in Single-Depot Multi-Retailer System”. This paper extends the inventory routing problem by considering periodic and dynamic demand. The goal is to seek replenishment quantity of each retailer and delivery route in each period which minimizes total inventory transportation cost. The second article was written by Dewan MZ Islam, and is entitled “Network Based Approach for Commercial Rail Freight Service in Europe”. This paper is developed through research methods including in-depth state-ofthe-art literature review, field surveys and interviews. This research adopted top-down and bottom-up analysis approach to identify the market potential and logistics requirements for a new pan European rail freight service. The bottom-up approach, based on interviews with potential users of the rail freight service, provides insights, characteristics, needs, requirements and the market potential within four market segments: dry and liquid bulk, specialized products, maritime containers and swap bodies. The third article deals with quality management issues. This paper is co-authored by Dini Endah Setyo Rahaju and Dian Retno Sari Dewi and is entitled “A Formal Approach for Setting the Optimal Design Specifications in House of Quality”. This paper proposes a formal HOQ procedure to determine the technical targets of engineering characteristics. The swing method and a certain normalization technique to involve the correlations between engineering characteristics are used to obtain better relationships ratings. An optimization model was developed to maximize customer satisfaction, subject to available organizational resource. The fourth article is entitled “Bi-Level Programming Approach of Location Model of State-Owned Company Distribution System”, and is authored by Ir. Sutanto Soehodho and Ir. Nahry, M.T. This paper focuses on the heuristic solution which employs network representation. Location decision of the proposed model is not based on the number of binary variable, as commonly used in the previous models. Alternately, we use flow-based decision principle, that is location decision is determined based on the amount of flow on links represent fixed cost of facility. In the fifth article, entitled “The Resource-Constraint Project Scheduling with Multi-Mode under Fuzzy Random Environment”, co-authored by Jun Gang and Jiuping Xu. This paper establishes a fuzzy random multi-objective mixed integer linear programming model which includes resource and two objectives, to describe the proposed problem appropriately and to transform this model to determinate model by the expected operator. The author proposes a critical chain method based on Adaptive weight hybrid genetic algorithm (aw-hGA) to solve this problem. The sixth paper is co-authored article by Lu Gan and Jiuping Xu and is entitled “Multi-Objective Stochastic Optimization for Multi-Mode Resource-Constrained Project Scheduling in the Highway Bridge Construction Projects”. This paper discusses about rc-PSP/mM in a stochastic uncertain environment and to obtain optimal solutions which can satisfy multiple objectives and their possibilities in practice. Three objectives are considered 1) minimization of the project duration, 2) minimization of the total premature and deferred costs of all the activities with stochastic cost coefficients, and 3) minimization of the executed costs. 3 The seventh paper is written by M. Ahsan Akhtar Hasin, Partha K. Pandit and M. A. Shareef. Their paper is entitled “Aircraft Fleet Planning under Varying Demand using Aggregate Resource Planning Concepts”. This research paper utilizes this concept of scheduling. A network model of Hax-Meal algorithm has been used for disaggregation of AFP. The model includes parameters, such as design characteristics, aircraft physical performance, maintenance needs, operating economics, acquisition cost, operating cost and customer satisfaction. The eighth article is co-authored by Rajwinder Singh, B.A. Metri, H. S. Sandhu and Rajinder Kaur and is entitled “Supply Chain Performance: A Conceptual Model”. In this paper an attempt has been made to identify the major supply chain performance dimensions of organized non-livestock retailing. A conceptual framework is proposed consisting of product quality, responsiveness, innovations, efficiency, and flexibility for organized non-livestock retailing. This framework shall help provide valuable insights to organized retailer players to solve supply chain problems. In the ninth selected article entitled “An Expected Value Model of Uncertain Multi-Objective Bi-level Programming for Decentralization Problem and its Application on Logistics Center Location”, which was co-authored by Rui Wang and Jiuping Xu. The authors develop the system applied to solve the problem of logistics center location in an uncertain environment that is consisted of some uncertain variables such as the future demands, transportation costs, and operation costs. This paper develops a simple numerical example launched into the system and tests the results indicating the validity of the system. Last but not the least, the final article entitled “A Genetic Algorithm for Multicommodity Distribution Network Design of Supply Chain” was co-authored by Voratas Kachitvichyanukul, Manavit Vinaipanit, and Kanokporn Kungwalsong. This paper presents a genetic algorithm for solving multicommodity distribution network design problem (MDNP) which involves decisions on locations of plants and distribution centers, and the determination of the best strategy to distribute the product in a distribution network. The problem is formulated as a mixed integer programming problem with an objective to minimize the total logistics costs. It is hoped that readers will enjoy reading these articles and that these articles will generate further discussions that will help advance our knowledge of transport, logistics and supply chain management, and operations research. The Editors and the Editorial Board of the IJLT would like to welcome future submissions that will make this journal a key forum for sharing ideas and research work with all stakeholders. 4 Ruth Banomyong Ungul Laptaned Walailak Atthirawong Editors Contents • HEURISTIC ALGORITHMS FOR INTEGRATION OF INVENTORY AND TRANSPORTATION DECISION IN SINGLE-DEPOT MULTI-RETAILER SYSTEM Chayathuch Phuaksaman................................................................................................................... 7 • THE POTENTIAL OF A PAN EUROPEAN RAIL FREIGHT SERVICE USING HUB AND SPOKE MODEL D M Z Islam, T Zunder, and G Zome............................................................................................. 19 • A FORMAL APPROACH FOR SETTING THE OPTIMAL DESIGN SPECIFICATIONS IN HOUSE OF QUALITY Dini Endah Setyo Rahaju and Dian Retno Sari Dewi..................................................................... 29 • BI-LEVEL PROGRAMMING APPROACH OF LOCATION MODEL OF STATE-OWNED COMPANY DISTRIBUTION SYSTEM Ir. Sutanto Soehodho and Ir. Nahry, M.T......................................................................................... 43 • THE RESOURCE-CONSTRAINT PROJECT SCHEDULING WITH MULTI-MODE UNDER FUZZY RANDOM ENVIRONMENT Jun Gang and Jiuping Xu................................................................................................................ 51 • MULTI-OBJECTIVE STOCHASTIC OPTIMIZATION FOR MULTI-MODE RESOURCE-CONSTRAINED PROJECT SCHEDULING IN THE HIGHWAY BRIDGE CONSTRUCTION PROJECTS Lu Gan and Jiuping Xu................................................................................................................... 81 • AIRCRAFT FLEET PLANNING UNDER VARYING DEMAND USING AGGREGATE RESOURCE PLANNING CONCEPTS M. Ahsan Akhtar Hasin, Partha K. Pandit, and M. A. Shareef...................................................... 113 • SUPPLY CHAIN PERFORMANCE: A CONCEPTUAL MODEL Rajwinder Singh, B.A. Metri, H. S. Sandhu, and Rajinder Kaur.................................................. 129 • AN EXPECTED VALUE MODEL OF UNCERTAIN MULTIOBJECTIVE BILEVEL PROGRAMMING FOR DECENTRALIZATION PROBLEM AND ITS APPLICATION ON LOGISTICS CENTER LOCATION Rui Wang and Jiuping Xu.............................................................................................................. 149 • A GENETIC ALGORITHM FOR MULTICOMMODITY DISTRIBUTION NETWORK DESIGN OF SUPPLY CHAIN Voratas Kachitvichyanukul, Manavit Vinaipanit, and Kanokporn Kungwalsong......................... 167 • Guide for Authors.......................................................................................................................... 183 5 HEURISTIC ALGORITHMS FOR INTEGRATION OF INVENTORY AND TRANSPORTATION DECISION IN SINGLE-DEPOT MULTI-RETAILER SYSTEM Chayathuch Phuaksaman Department of Industrial Engineering, Chulalongkorn University, Thailand Tel: +66-81558-2595, Email: [email protected] and Paveena Chaovalitwongse Department of Industrial Engineering, Chulalongkorn University, Thailand Tel: +66-2218-6829, Fax: +66-2251-3969, +66-2218-6413 Email: [email protected] 7 HEURISTIC ALGORITHMS FOR INTEGRATION OF INVENTORY AND TRANSPORTATION DECISION IN SINGLE-DEPOT MULTI-RETAILER SYSTEM by Chayathuch Phuaksaman Department of Industrial Engineering, Chulalongkorn University, Thailand Tel: +66-81558-2595, Email: [email protected] and Paveena Chaovalitwongse Department of Industrial Engineering, Chulalongkorn University, Thailand Tel: +66-2218-6829, Fax: +66-2251-3969, +66-2218-6413 Email: [email protected] ABSTRACT A multi-retailer single product distribution system is considered. In this system, the product must be shipped from a distribution center to several retailers in a finite time horizon. Shipments from the distribution center to retailers are delivered by a vehicle with unlimited capacity. Demand at e...
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