Modelling of just-in-time distrubution network under raw material quality and time constraints


Gürsoy B. , Soner Kara S.

Sigma Journal of Engineering and Natural Sciences, vol.3, no.39, pp.313-321, 2021 (Journal Indexed in ESCI)

  • Publication Type: Article / Article
  • Volume: 3 Issue: 39
  • Publication Date: 2021
  • Doi Number: 10.14744/sigma.2021.00019
  • Title of Journal : Sigma Journal of Engineering and Natural Sciences
  • Page Numbers: pp.313-321

Abstract

Just-in-time (JIT) delivery is one of the key delivery strategies that enable the right quality

product to reach the point of demand at the right time without creating unnecessary costs in

the supply chain network. The concepts of quality and time are two main factors to be considered

in this issue. Particularly because the variability in quality directly affects cost and time,

it is very important for JIT delivery. In this study, the effect of raw material quality within the

supply chain network which tries to ensure JIT delivery is examined. For this, a multi-stage,

multi-period mixed-integer mathematical model is proposed in the study. The model aims to

minimize the total supply chain cost by trying to balance the purchasing and quality costs for

manufacturers. In addition to standard constraints, the stock balance and time constraints

have been developed for JIT delivery. As a result of the model resolved with the GAMS Distribution

21.6 program, 34.5% of the raw material supplied from suppliers is provided from

1st quality raw materials, while 65.5% is provided from 2nd quality raw materials. Despite its

low purchasing costs, 3rd quality raw material has not been preferred by the producers in any

period because it causes a delay in JIT delivery. Besides, it is seen that deliveries are made very

close to the maximum delivery time of distribution centers, depending on the variability in

raw material quality. It is understood that raw material quality is an important concept in a JIT

supply chain network due to its significant impact on time.