9.7 Key Terms, References, and Accessibility Descriptions

Key Terms

Batch Sizes – The number of products manufactured in one batch

Big Data – as extremely large sets of data or fast growing amounts of data from different sources that present industrial organizations with a variety of storage and analysis issues (Agarwal, Shiralkar, Aaher, & Jawade, 2021)

Blockchain – is mostly referred to as a cryptocurrency or digital money such as Bitcoin, Dogecoin, ripple etc. Blockchain is a decentralized digital ledger. Ledgers are used to keep a record of important things, financial or something else  (Agarwal, Shiralkar, Aaher, & Jawade, 2021)

Changeover Time – Time elapsed during converting a line or machine from running one product to another

Cycle Time – Time taken from start of product to its completion

Geographical Coverage – Some actors act at regional and local levels, others operate at national and some at a global level.

Information and Communication Technology (ICT) – means all devices, components, applications, systems that allow people and organizations to be connected and interact in the digital world (Pratt, 2019).

Internet of things (IoT) – is used to connect various devices through a network in order to sense and collect data around the world on the internet to process various intelligent applications with the aid of embedded systems, artificial intelligence (AI), various software and sensors (Agarwal, Shiralkar, Aaher, & Jawade, 2021)

Lead Time – The time gap between placing an ordering and receiving it

Pull Value – The process that starts with customer demand.

Recalls products – mean officially retrieving products from manufacturers or users to the place of origin because discovered defects can harm consumers or hinder performance or realize more cost-effective product production.

Reverse logistics – “Reverse logistics is the process of dealing with goods that have been returned to the company by customers” (Cambridge Dictionary, 2022).

Scrap Rate – The rate that measures quality of output

Stakeholders – Participants

Uptime – Time during which a piece of equipment (such as a computer) is functioning or able to function (Mariam Webster, n.d.)

Working Time – The time spend on job for which a worker is paid salary

Chapter References

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Amrina, U. & Fitrahaj, M.U.R. (2020). An Application of Value Stream Mapping to Reduce Waste in Livestock Vitamin Raw Material Warehouse. International Journal of Science and Research, 9(3), 1541 – 1546. https://www.researchgate.net/publication/340443479_Licensed_Under_Creative_Commons_Attribution_CC_BY_An_Application_of_Value_Stream_Mapping_to_Reduce_Waste_in_Livestock_Vitamin_Raw_Material_Warehouse. CC BY.

Amrina, U. & Zagloel, T. Y. M. (2019). The Harmonious Strategy of Lean and Green Production: Future Opportunities to Achieve Sustainable Productivity and Quality. 2019 IEEE 6th International Conference on Industrial Engineering and Applications (ICIEA), 187-192, 10.1109/IEA.2019.8714768.

Balcik, B., Beamon, B.M., Krejci, C.C., Muramatsu, K.M. & Ramirez, M. (2010). Coordination in humanitarian relief chains: Practices, Challenges and Opportunities. International Journal of Production Economics, 126(1). https://doi.org/10.1016/j.ijpe.2009.09.008.

Behl, A. & Dutta, P. (2018). Humanitarian supply chain management: a thematic literature review and future directions of research. Annals of Operations Research, 283, 1001-1044. https://doi.org/10.1007/s10479-018-2806-2.

Boers, J. (n.d.). Global Business. Pressbooks. https://oer.gsu.edu/globalbusiness/chapter/supply-chain-shifts-the-knowns-and-the-unkowns/ CC BY-4.0.

Cambridge Dictionary. (2022). Reverse Logistics. https://dictionary.cambridge.org/dictionary/english/reverse-logistics.

Dubey et al. (2019). Big data analytics and organizational culture as complements to swift trust and collaborative performance in the humanitarian supply chain. International Journal of Production Economics, 210, 120-136. https://doi.org/10.1016/j.ijpe.2019.01.023.

Fabre, C. (2017). Localising the response. Organisation for Economic Co-operation and Development. https://www.oecd.org/development/humanitarian-donors/docs/Localisingtheresponse.pdf

Helleno, A.L., Moraes, A. & Simon, A. T. (2017). Integrating Sustainability Indicators and Lean Manufacturing to assess manufacturing processes: Application case studies in Brazilian Industry. Journal of Cleaner Production, 153, 405-416. https://doi.org/10.1016/j.jclepro.2016.12.072.

Humanitarian Insight. (2022). Syria Humanitarian Response Plan 2022 – 2023. https://hum-insight.info/plan/1088. CC BY 4.0.

IndustryStar. (2017, Nov. 9). Value Stream Mapping to Eliminate Waste in the Supply Chain. https://www.industrystar.com/blog/2017/11/value-stream-mapping-eliminate-waste/.

Kamble, S. S., Gunasekaran, A., Subramanian, N., Ghadge, A., Belhadi, A., & Venkatesh, M. (2021). Blockchain technology’s impact on supply chain integration and sustainable supply chain performance: evidence from the automotive industry. Annals of Operations Research; ISSN 0254-5330 1572-9338. https://link.springer.com/article/10.1007/s10479-021-04129-6#citeas. CC BY-4.0.

Karuppiah, K., Sankarnarayanan, B., Ali, S.M. & Paul, S.K. (2021). Key Challenges to Sustainable Humanitarian Supply Chains: Lessons from the COVID-19 Pandemic. Sustainability, 13, 5850. https://doi.org/10.3390/su13115850.

Larsen, A. (2020, November 23). Sustainability, innovation and entrepreneurship. LibreTexts. https://biz.libretexts.org/Bookshelves/Business/Advanced_Business/Book%3A_Sustainability_Innovation_and_Entrepreneurship/02%3A_Sustainability_Innovation_in_Business/2.02%3A_Defining_Sustainability_Innovation  CC BY-NC-SA-3.0

Linh Thi Truc Doan, Yousef Amer, Sang-Heon Lee, Phan Nguyen Ky Phuc, & Luu Quoc Dat. (2019). E-Waste Reverse Supply Chain: A Review and Future Perspectives. Applied Sciences; Volume 9; Issue 23. https://www.mdpi.com/2076-3417/9/23/5195. CC BY.

Lu, Z., Gao, Y. & Zhao, W. (2020). A TODIM-based approach for environmental impact assessment of pumped hydro energy storage plant. Journal of Cleaner Production, 248, 119265. https://doi.org/10.1016/j.jclepro.2019.119265.

Maon, F., Lindgreen, A. and Vanhamme, J. (2009). Developing supply chains in disaster relief operations through cross-sector socially oriented collaborations: a theoretical model. Supply Chain Management: International Journal, 14(2), 149-164. https://www.emerald.com/insight/content/doi/10.1108/13598540910942019/full/html.

Maqbool, A. & Khan, N. Z. (2020). Analyzing barriers for implementation of public health and social measures to prevent the transmission of COVID-19 disease using DEMATEL method. Diabetes & Metabolism Syndrome: Clinical Research & Reviews, 14(5). https://doi.org/10.1016/j.dsx.2020.06.024.

O’Donnell, M.R., Bacos, D. and Bennish, M.L. (2002). Nutritional response to the 1998 Bangladesh flood disaster: sphere minimum standards in disaster response. Disasters, 26 (3), 229-241. https://doi.org/10.1111/1467-7717.00202.

Ozdemir et al. (2020). The role of blockchain in reducing the impact of barriers to humanitarian supply chain management. The International Journal of Logistics Management, 32(2). https://www.emerald.com/insight/content/doi/10.1108/IJLM-01-2020-0058/full/html.

Paciarotti, C., Piotrowicz, W.D. & Fenton, G. (2021). Humanitarian logistics and supply chain standards. Literature review and view from practice. Journal of Humanitarian Logistics and Supply Chain Management, 11(3), 550-573. https://doi.org/10.1108/JHLSCM-11-2020-0101. CC BY 4.0.

Prasad, S., Zakaria, R. & Altay, N. (2018). Big data in humanitarian supply chain networks: a resource dependence perspective. Annals of Operations Research, 270, 383-413. https://link.springer.com/article/10.1007/s10479-016-2280-7.

Pratt, M. K. (2019). ICT (Information and communications technology, or technologies). https://www.techtarget.com/searchcio/definition/ICT-information-and-communications-technology-or-technologies.

Queiroz, M.M., Wamba, S.F., Bourmont, M.D. & Telles, R. (2020). Blockchain adoption in operations and supply chain management: empirical evidence from an emerging economy. International Journal of Production Research, 59(20), 6087-6103. https://doi.org/10.1080/00207543.2020.1803511.

Rother, M. & Shook, J. (2018). Learning to see: Value stream mapping to create value and eliminate muda. Lean Enterprise Institute.

Sabri, Y., Zarei, M.H. & Harland, C. (2019). Using collaborative research methodologies in humanitarian supply chains. Journal of Humanitarian Logistics and Supply Chain Management, 9(3). https://www.emerald.com/insight/content/doi/10.1108/JHLSCM-06-2018-0041/full/html.

Salvatore Cannella, Roberto Dominguez, Jose M. Framinan, & Borja Ponte. (2018). Evolving Trends in Supply Chain Management: Complexity, New Technologies, and Innovative Methodological Approaches. Complexity, 2018. https://www.hindawi.com/journals/complexity/2018/7916849/. CC BY.

Sharma, M. & Luthra, S. (2020). Developing a framework for enhancing survivability of sustainable supply chains during and post-COVID-19 pandemic. International Journal of Logistics Research and Applications. https://doi.org/10.1080/13675567.2020.1810213.

Statista. (August 4, 2021). Size of the reverse logistics market worldwide from 2020 to 2028 (in billion U.S. dollars)* [Graph]. In Statista. Retrieved April 01, 2022, from https://www.statista.com/statistics/1090465/reverse-logistics-market-size-worldwide/#:~:text=In%202020%2C%20the%20global%20reverse,exceed%20958%20billion%20U.S.%20dollars.

Vega, D. (2018). Case studies in humanitarian logistics research. Journal of Humanitarian Logistics and Supply Chain Management, 8(2). https://www.emerald.com/insight/content/doi/10.1108/JHLSCM-01-2018-0005/full/html.

World Humanitarian Summit. (2016, August 16). Commitments to action [Summary Report]. Agenda for Humanity. https://agendaforhumanity.org/sites/default/files/resources/2017/Jul/WHS_Commitment_to_Action_8September2016.pdf

Zhang, Y. (2017). Global Supply Chain Management with Advanced Information and Production Technologies. https://dukespace.lib.duke.edu/dspace/bitstream/handle/10161/14393/Zhang_duke_0066D_13840.pdf?sequence=1.  CC BY-NC-ND.

Image Descriptions

Chart 9.2: Bar graph showing size of reverse logistics market world wide from 2020 to 2028 in billion US dollars. The chart gradually increases starting at 635.60 in 2020 to 958.3 in 2028.
2020 = 635.60
2021 = 669.07
2022 = 704.31
2023 = 741.40
2024 = 780.45
2025 = 821.50
2026 = 864.81
2027 = 910.36
2028 = 958.3

[Return to image].

Fig 9.2: Depictions of 2 product flows, forward and reverse.
Forward: Suppliers, factory, distributor/wholesaler, stores/consumers.
Reverse: Stores/consumers, defective returns/excess product returns, seasonal returns, fix/refurbish (can return to forward here through discount or regular channels), remove item, dispose of product/good will/waste, recycling/re-manufacturing [Return to image].

Fig 9.3: Letter reads:
April 6, 2022
Important Recall Notice Rattlesnake Bicycles spirit road bike Model #10445 – Spirit
Dear Davis & Daughters Bicycle shop customer,
Our records show that you purchased a spirit road bike (Model #10445) built by rattlesnake bicycles between June 1, 2020 and August 2021.
Rattlesnake Bicycles is recalling this bicycle for a potential hazard regarding the frame. The weld where the Top Tube joins with the Head Tube can fracture. If a fracture occurs, the bike may become unstable and potentially lead to a crash.
[Image of the bicycle with area indicated]
Stop using it immediately if you have a Rattlesnake Spirit (Model #10445). Return the bike to Davis & Daughters Bicycle for repairs. We will replace the frame without cost.
If you are not sure if your bicycles is involved in the recall or if you have questions, please contact Davis & Daughters at: 555-555-0101 or visit the shop located at 25 Avenue B. Please bring your bicycle.
You may also contact Rattlesnake Bicycles: phone 1-800-555-0112, website https://rattleshankebikes.ca
We apologize for any inconveniences this recall may cause.
Respectfully,
Rattlesnake Bicycles

[Return to image].

Figure 9.5: The image shows parts of value stream map – Information flow, Material Flow and Lead Time Ladder. Information flows are at the top indicating flow of information from customs to company to suppliers. Material flow is in the middle indicating flow of material from upstream to downstream. Finally, lead time ladder is at the bottom indicating calculation of lead time between different processes.

[Return to image].

Figure 9.6: The circular chart shows stakeholders in Humanitarian Logistics. Clockwise from top: government, donors, inter-governmental organizations, non-governmental organizations, national police and armed forces, media, commercial/private sector organizations, and local populations.

[Return to image].

Figure 9.7: The image indicates the severity of Syria Crisis. It shows a person standing looking at demolished buildings around them.

[Return to image].

 

Alternative Text-Based Activities

Assessing What You Already Know

Question 1:

What does IT stand for?

  • International Technology
  • Information Technology – Correct
  • Interactive Television
  • Intercommunication technology

Feedback: IT stands for Information Technology.

Question 2:

What is Blockchain Technology?

  • cryptocurrency
  • digital money such as Bitcoin
  • decentralized digital ledger
  • All of the above – Correct

Feedback: All are blockchain technologies. 

Question 3:

Value Stream Mapping is a Lean Concept that increases efficiency by reducing Muda (Waste).

  • True (Correct)
  • False

Feedback: Yes, Value Stream Mapping is a Lean Concept that increases efficiency by reducing Muda (Waste).

Question 4:

Supply Chain Logistics works around 7 R’s. Which of the following is NOT one of them?

  • Right time
  • Right Condition
  • Right Place
  • Right Loading (Correct)

Feedback: Logistics aims at having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer.

[Return to activity].

Check Your Understanding: Explain the concept of Reverse Logistics and Recalls

Question 1:

Drag and Drop definitions in correct category:

Recalls products officially retrieving products from manufacturers or users to the place of origin because discovered defects can harm consumers or hinder performance or realize more cost-effective product production
Reverse logistics is the process of dealing with goods that have been returned to the company by customers

Feedback: Recall products mean officially retrieving products from manufacturers or users to the place of origin because discovered defects can harm consumers, hinder performance, or realize more cost-effective product production. The request to recall products can be by the government or company. This official act helps prevent and reduce risks related to injuries or safety concerns. In this scenario, companies provide consumers with compensation. Recalls can be mandated by Safety Commissions or voluntary. “Reverse logistics is the process of dealing with goods that have been returned to the company by customers” (Cambridge Dictionary, 2022).

Question 2:

To mitigate the amount of product disposal, industries have been carrying out 6R concepts to improve recovery implementation and minimize non-value-added activities within end-of-life (EoL) management. Check all 6R concepts that apply.

  • Reduce (Correct)
  • Reuse (Correct)
  • Recycle (Correct)
  • Recover (Correct)
  • Redesign (Correct)
  • Remanufacture (Correct)
  • Recreate (Incorrect)
  • Reupdate (Incorrect)

Feedback: To mitigate the amount of product disposal, industries have been carrying out 6R concepts (namely, Reduce, Reuse, Recycle, Recover, Redesign, and Remanufacture) to improve recovery implementation and minimize non-value added activities within end-of-life (EoL) management.

Question 3:

According to Statista (2021), the size of the reverse logistics market globally will be
continuously expanded and projected to reach (_____) billion U.S. dollars by 2028

  • 958.3 (Correct)
  • 900.3 (Incorrect)
  • 938.3 (Incorrect)
  • 853.6 (Incorrect)

Feedback: The size of the reverse logistics market worldwide has been
significantly increasing. According to Statista (2021), the size of the reverse
logistics market globally will be continuously expanded and projected to reach
958.3 billion U.S. dollars by 2028 (Statista, August 4, 2021).

Question 4:

Drag and Drop differences between forward and reverse supply chains in correct Category

Table 9.1

Differences between forward and reverse supply chains

Forward Supply Chain Reverse Supply Chain
Focus on increasing profit and cost minimization Focus on environmental issues, regulations, profit and cost minimization
Product demand is quite straightforward to forecast Returned products are relatively difficult to estimate
The quantity of product is less variation The quantity of returned products are highly uncertain
Conventional marketing techniques can be used There are some elements requiring complicated marketing
Processing times and stages are well identified Processing times and stages are vary based on the quality of returned products
Products are delivered from one location to other locations Used products are collected from a lot of locations and then reach to one processing center
Speed is one of the main factors in terms of competitive advantage Speed is not an important element
Product packaging is standard Returned product packaging highly varies or lack of packaging
Product structure is standard Returned product structure is modified
Cost estimation is quite easier because of accounting systems Cost factors are complicated to determine
Disposition options are rather clear Disposition alternatives depended on the condition of a returned product
Inventory management is consistent Inventory management is chaotic
Cost implications are quite clear Cost implications are unclear
Processes for real-time product tracking are highly visible Processes for returned product tracking are less visible because of lack of information system infrastructure
Product life cycle changes are easily managed Product life cycle changes are difficulty managed
Models are relatively deterministic Models are more stochastic
Key importance to manufacturers Key importance to end-of-life processors (such as remanufacturers, recyclers)

[Return to activity].

Check Your Understanding: Define how ICT is supporting the global value chain

Question 1:

Companies are lucky to have advanced ICT because it provides a (_______).

  • slew of cost savings – (Correct)
  • lack of visibility (Incorrect)
  • raw materials (Incorrect)

Feedback: Companies are lucky to have advanced ICT because it provides a slew of cost savings. Advantages include insights, building customer bases, creating new products and services, internet shopping, transactions, digitalization of businesses, finding fast solutions, speeding up order tracking and processes, enhancing the exchange of information, increasing collaboration, and transparency in the global value chain.

Question 2:

Today’s organizations are constantly searching for innovative ways to integrate ICT into their business process to acquire sustainable benefits.

  • True (Correct)
  • False (Incorrect)

Feedback: Today’s organizations are constantly searching for innovative ways to integrate ICT into their business process to acquire sustainable benefits.

Question 3:

What does blockchain mean? Write your response in the box below.

Feedback: Blockchain is mostly referred to as a cryptocurrency or digital
money such as Bitcoin, Dogecoin, ripple etc. Blockchain is a decentralized
digital ledger. Ledgers are used to keep a record of important things,
financial or something else.

Question 4:

Drag and Drop definitions in correct category

Blockchain is mostly referred to as a cryptocurrency or digital money such as Bitcoin, Dogecoin, ripple etc. Blockchain is a decentralized digital ledger. Ledgers are used to keep a record of important things, financial or something else
Information and Communication Technology (ICT) means all devices, components, applications, systems that allow people and organizations to be connected and interact in the digital world (Pratt, 2019).
Big Data as extremely large sets of data or fast growing amounts of data from different sources that present industrial organizations with a variety of storage and analysis issues.
Internet of things (IoT) is used to connect various devices through a network in order to sense and collect data around the world on the internet to process various intelligent applications with the aid of embedded systems, artificial intelligence (AI), various software and sensors

[Return to activity].

Check Your Understanding: Value Stream Mapping

Question 1:

Which of the following is not among the eight wastes discussed in the section:

  • Unnecessary Inventory
  • Waiting
  • Unutilized Talent
  • Water (Correct)

Question 2:

Drag the words. Value Stream Maps include:

*Process Flow*

*Information Flow*

*Material Flow*

Question 3:

Information flow indicates Push Value Principle.

  • True
  • False (Correct)

Question 4:

Is it True: The shorter your production lead time, the shorter the time between paying for raw material and getting paid for product made from those materials. A shorter production lead time will lead to an increasing in the number of inventory turns, a measure with which you may be more familiar.

  • Yes (Correct)
  • No

[Return to activity].

 

definition

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Global Value Chain Copyright © 2022 by Dr. Kiranjot Kaur and Iuliia Kau is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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