A simulation-based logistics assessment framework in global pharmaceutical supply chain networks

Díaz, Rafael; Kolachana, Sailesh; Gomes, Rodrigo F.S.

doi:10.1080/01605682.2022.2077661

Cited by 10 publications

(5 citation statements)

References 76 publications

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“…As pointed out by Diaz et al . (2022), contrasting with the aggregation conditions that characterize most System Dynamics simulations, DES approaches offer the capability to manage more granularity in managing the different material flows, which is essential to model the flow of multi-product families as the ones studied in this study.…”

Section: Background and Positioningmentioning

confidence: 63%

“…Compared to Agent-based simulation (ABM), DES offers a reasonably standard format to develop simulation models (Law et al ., 2000) while ABM is well-known for its limitations due to lack of reproducibility and standards (Manzo and Matthews, 2014; Khodabandelu and Park, 2022). Similarly, compared with Monte Carlo simulation, DES paradigms can model different changing variables over time, while Monte Carlo is a static paradigm that does not allow it (Diaz et al ., 2022).…”

Section: Background and Positioningmentioning

confidence: 99%

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Innovating in data-driven production environments: simulation analysis of Net-CONWIP priority rule

Díaz

Ardalan

2023

IMDS

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PurposeMotivated by recent research indicating that the operational performance of an enterprise can be enhanced by building a supporting data-driven environment in which to operate, this paper presents a simulation framework that enables an examination of the effects of applying smart manufacturing principles to conventional production systems, intending to transition to digital platforms.Design/methodology/approachTo investigate the extent to which conventional production systems can be transformed into novel data-driven environments, the well-known constant work-in-process (CONWIP) production systems and considered production sequencing assignments in flowshops were studied. As a result, a novel data-driven priority heuristic, Net-CONWIP was designed and studied, based on the ability to collect real-time information about customer demand and work-in-process inventory, which was applied as part of a distributed and decentralised production sequencing analysis. Application of heuristics like the Net-CONWIP is only possible through the ability to collect and use real-time data offered by a data-driven system. A four-stage application framework to assist practitioners in applying the proposed model was created.FindingsTo assess the robustness of the Net-CONWIP heuristic under the simultaneous effects of different levels of demand, its different levels of variability and the presence of bottlenecks, the performance of Net-CONWIP with conventional CONWIP systems that use first come, first served priority rule was compared. The results show that the Net-CONWIP priority rule significantly reduced customer wait time in all cases relative to FCFS.Originality/valuePrevious research suggests there is considerable value in creating data-driven environments. This study provides a simulation framework that guides the construction of a digital transformation environment. The suggested framework facilitates the inclusion and analysis of relevant smart manufacturing principles in production systems and enables the design and testing of new heuristics that employ real-time data to improve operational performance. An approach that can guide the structuring of data-driven environments in production systems is currently lacking. This paper bridges this gap by proposing a framework to facilitate the design of digital transformation activities, explore their impact on production systems and improve their operational performance.

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Section: Background and Positioningmentioning

confidence: 63%

Section: Background and Positioningmentioning

confidence: 99%

Innovating in data-driven production environments: simulation analysis of Net-CONWIP priority rule

Díaz

Ardalan

2023

IMDS

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“…The systematic process of assessing, controlling, communicating, and reviewing hazards is known as risk management. By using the right plans and tactics, risk management in supply chains can raise performance levels and lessen uncertainty and susceptibility [1,32]. According to several suggestions, firms should manage risk according to a systematic framework that aids in supply chain risk identification, quantification, and mitigation.…”

Section: Risk Management and Risk Mitigation Approaches In Pharmaceut...mentioning

confidence: 99%

“…Ontologies and Fuzzy Quality Function Deployment PSC risks associated with the transport and storage of finished products for export in Columbia were evaluated [49] 2-Tuple ARAS-BWM approach PSC risks faced during the COVID-19 period in Tunisia were evaluated and mitigation strategies discussed [50] Taguchi Orthogonal methodology Uncertain variables associated with PSC risks were investigated and the effect of logistics evaluated [32] Pythagorean fuzzy AHP and Pythagorean fuzzy WASPAS method Procurement risks and PSC risks are investigated [51] The latest risk management methodology, which is focused on the pharmaceutical supply chain system, is summarized in Table 1.…”

Section: Risk Management and Risk Mitigation Approaches In Pharmaceut...mentioning

confidence: 99%

Pharmaceutical supply chain: The importance of outsourcing

Akbal Dağıstan

2023

Eur J Life Sci

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A vast web of organizations, companies, and teams involved in creating, researching, and producing drugs and associated products makes up the pharmaceutical sector. In this context, the term “supply chain” refers to the network of individuals, processes, information, and resources that transform raw materials and parts into finished goods and services before being supplied to customers. The pharmaceutical supply chain system, then, offers customers medications in the right amount, at the right time, with acceptable quality, and for the lowest feasible cost. Pharmaceutical companies are increasingly contracting out their supply chain activities due to the severe push to keep R&D expenses under control. Instead of being a cost-cutting measure, global supply chain outsourcing can be seen as a strategic competitive weapon that can improve positional advantage, offer production flexibility, and meet the ever-increasing expectations of final consumers. Global supply chain outsourcing is crucial for pharmaceutical firms to enhance performance and profit margins by leveraging core skills and resources beyond other strategies which can lower risk, increase flexibility, improve returns on capital, and improve a company’s ability to respond to the needs of its shareholders and consumers. Even while there is widespread recognition of the alluring advantages of global outsourcing, many of the related concerns are frequently disregarded. In addition to briefly discussing risk assessment methods, the goal of this work is to offer manufacturer-focused insight into supply chain-related outsourcing concerns within the pharmaceutical industry.

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“…Ahlaqqach et al [49] developed a closed-loop supply chain network model for pharmaceutical products that incorporates the recovery and recycling of packaging materials, promoting sustainability. Diaz et al [50] conducted a simulation-based analysis of the global pharmaceutical supply chain, exploring inventory management, transportation, and demand variability to identify areas for improvement and enhance efficiency and resilience.…”

Section: Literature Reviewmentioning

confidence: 99%

Scenario-Based Optimization of Supply Chain Performance under Demand Uncertainty

Gobachew

Haasis

2023

Sustainability

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This study presents a comprehensive supply chain performance optimization model that addresses the trade-off between supply chain cost and customer service level in the distribution network. The model incorporates both deterministic and scenario-based approaches, allowing for a more realistic representation of supply chain operations. The model is applied to a case company operating in the pharmaceutical supply chain in Ethiopia. The goal is to improve the company’s supply chain performance by optimizing various factors such as establishment costs, handling costs, transportation costs, and demand satisfaction. The study considers both financial measures (supply chain cost) and non-financial measures (customer service level) to evaluate the performance of the supply chain. The results of the study demonstrate the effectiveness of the proposed model in identifying the optimal trade-off between supply chain costs and customer service levels. By comparing the results of the model with the current situation of the case company, it is determined that the company can achieve significant cost reductions of up to 25.26% while still meeting customer demands. The model also takes into account the uncertainty in demand, providing more realistic recommendations for distribution center locations, transportation planning, and order fulfillment. The implications of using this optimization model include the potential for cost savings, improved decision-making, enhanced customer satisfaction, and, ultimately, a more successful supply chain. However, the study has some limitations, including a need for further research on other objectives and considerations, such as environmental impacts and disruptions, which could be addressed in future research directions.

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A simulation-based logistics assessment framework in global pharmaceutical supply chain networks

Cited by 10 publications

References 76 publications

Innovating in data-driven production environments: simulation analysis of Net-CONWIP priority rule

Innovating in data-driven production environments: simulation analysis of Net-CONWIP priority rule

Pharmaceutical supply chain: The importance of outsourcing

Scenario-Based Optimization of Supply Chain Performance under Demand Uncertainty

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