APPROACH OF ASSESSMENT THE PRIORITY OF SUPPLY LOGISTICS

Central European Review of Economics & Finance Vol. 17, No. 1(2017), pp. 53–63

Ivan Dimitrov

, Adile Dimitrova

, Petko Yangyozov

APPROACH OF ASSESSMENT THE PRIORITY OF SUPPLY LOGISTICS

SUB-PROCESSES IMPROVEMENT

The aim of this research paper is to present an approach of assessment the priorities for improve- ments of each supply logistics sub-process in the organization. The ways of comparison of targets sub-processes and their corresponding real sub-processes are explained. Algorithm for calculating of priority of supply logistics sub-process improvement is reviewed. It includes calculating of vector that describes the necessity of sub-process improvement in each measurement as well as determin- LQJRIDJJUHJDWHFRHIÀFLHQWWKDWUHSUHVHQWVWKHQHHGIRUHDFKVXSSO\ORJLVWLFVVXESURFHVVRSWLPL]D- tion in all its measurements.

-(/&ODVVLÀFDWLRQ&RGHVL23.

Keywords: ssupply logistics, sub-process, optimization, methodology, priority of improvement, algorithm.

Introduction

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that end, it is necessary the actual and the desired state of the processes of VXSSO\ORJLVWLFVWREHSUHVHQWHGE\YHFWRUV²UHDODQGWDUJHWRQHV7KHUHDO

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is represented as a partial vector with the relevant coordinates. The coor- GLQDWHVGHVFULEHWKHUHDOYDOXHVRIWKHSDUDPHWHUVFKDUDFWHUL]LQJYDULRXV

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vector. If comparison between the vector which represent the real process

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comparison between coordinates of both vectors enables the determination of the overall necessity of improvement as well the necessity of sub-process LPSURYHPHQWIRUVXSSO\ORJLVWLFV·SURFHVV)XUWKHUPRUHLWFDQEHDVVHVVPHQW

the necessity of improvement of each sub-process, which builds up the entire VXSSO\ORJLVWLFVSURFHVVWKURXJKFDOFXODWLQJWKHLUHIÀFLHQF\EHVLGHWKHWDUJHW

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t assessment of the priority of sub-process improvement.

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may be selected as measurements, such as „accuracy of deliveries from VXSSOLHUVµÅWLPHRIVXSSO\µÅKLJKPDLQWHQDQFHµÅORZSURFHVV·VFRVWVµÅORZ

cost reserves”, etc. The choice of parameters to be used as measurements RIWKHFRRUGLQDWHV\VWHPLVLQFRPSOLDQFHZLWKWKHXQGHUO\LQJORJLVWLFVVWUDW- HJ\RIWKHRUJDQL]DWLRQWKHLPSURYHPHQWJRDOVHWIRUWKDVZHOODVZLWKWKH

necessity to follow up the deviations in their values.

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) can be calculated by division the coordinates RIWKHWDUJHWSURFHVV3

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, which is calculated by formula 2.

¦

=

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M

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δ (2)

where:

G

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j Q²QXPEHURIFRQVLGHUHGVXESURFHVV

i P²QXPEHURIFRQVLGHUHGPHDVXUHPHQW

Figure 1. R 63



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al and Target supply logistics process visualization

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and ƣ

can be pre- VHQWHGDVDQDOJRULWKPFRQVLVWLQJRIWKUHHEORFNV)LJXUH,QEORFNÅ$µ

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) is compared to zero. This is the way to assessment the necessity of improvement of the real VXESURFHVVHV)XUWKHULWFDQEHFDOFXODWHGZLWKKRZPDQ\XQLWVWKHFRRU- dinates of the partial real vectors should be increased or reduced. In block Å&µZKHWKHUWKHPHDVXUHPHQWVDUHWUDGHRIILVFKHFNHGDQGGHSHQGLQJRQ

that ƣ

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its measurements is calculated. In addition, the values of ƣ

are ranked in GHVFHQGLQJRUGHUE\VL]H

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.

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step 4. Otherwise, all values of the new vector’s coordinates (Ƅ

) are mul- WLSOLHGE\

After those actions and calculation of the values of G

, step 3 and block $ of WKHDOJRULWKPHQGV

Step 4 ² &RPSDULVRQ ZLWK ]HUR WKH QHZO\ FDOFXODWHV YHFWRUV· FRRUGLQDWHV

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in measurement

LVPRUHHIÀFLHQWWKDQWKHUHDORQH

. In this case, optimization RI WKH UHVSHFWLYH PHDVXUHPHQW RI WKH UHDO VXSSO\ ORJLVWLFV VXESURFHVV LV

QHHGHGDQGDOJRULWKPFRQWLQXHZKLWVWHSLQEORFNC. In case that G

is less WKDQ]HURLWPHDQVWKDWWKHH[LVWLQJVXESURFHVV

in measurement

is more HIÀFLHQWWKDQWKHWDUJHWRQH

and improvement is not needed. In the third case G

 ZKLFKPHDQVWKDWWKHUHDOVXSSO\ORJLVWLFVsub-process

is as ef- ÀFLHQWDVWKHWDUJHWone

in measurement

$JDLQRSWLPL]DWLRQLVQRWQHHGHG

Table 1. Interpretation of „d

” correlations interpretation

d

> 0 SP

> SP

The target sub-process

in measurement

LVPRUHHI¿FLHQWWKDQ

the real one

. There is necessity of improvement.

d

= 0 SP

= SP

The real sub-process

in measurement

LVDVHI¿FLHQWDVWKHWDUJHW

one

. There isn’t necessity of improvement.

d

< 0 SP

< SP

The real sub-process

in measurement

LVPRUHHI¿FLHQWWKDQ

the target one

. There isn’t necessity of improvement.

Step 5²&KHFNLQJIRUWUDGHRIIDERXWDOORIPHDVXUHPHQWV,QWKLVVLWXDWLRQ

it is assumed that the deviations in the various measurements are balanced DPRQJWKHPVLQFHWKHFKDUDFWHULVWLFVRIWKHVXSSO\ORJLVWLFVSURFHVVYHF- WRUFRQWULEXWHWRGLIIHUHQWH[WHQWIRUWKHDFKLHYHPHQWRIWKHVXSSO\ORJLVWLFV·

JRDO,IDOOH[DPLQHVPHDVXUHPHQWVDUHWUDGHRIIWKHFRHIÀFLHQWƣ

is calcu- lated in step 6. Otherwise, proceed to step 7, and step 6 is not performed.

4

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Step 6²&DOFXODWLRQWKHFRHIÀFLHQWƣ

by formula 2.

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VXSSO\ORJLVWLFV·SURFHVV,IWKLVLVVRDOJRULWKPSDVVHVWRVWHS,WLVDV- sumed that if one of measurement needs to be improved, then the entire real process needs improvement. There is a third case in which, part of the meas- XUHPHQWVDUHWUDGHRIIDQGSDUWRIWKHP²DUHQ·W7KHQLWLVQHHGWRPDNH

VXEVHTXHQWYHULÀFDWLRQRIPHDVXUHPHQWVZKLFKDUHQWWUDGHRIILQVWHS

Step 8 ² &KHFNLQJ IRU H[LVWHQFH RI PHDVXUHPHQWV ZKLFK DUHQ·W WUDGHRII

and at the same time there are no need of improvement. If there are such PHDVXUHPHQWVDOJRULWKPSURFHHGZLWKFDOFXODWLRQRIFRHIÀFLHQWƣMRQO\IRU

WKHPHDVXUHPHQWVWKDWDUHWUDGHRIILQVWHS2WKHUZLVHLWSDVVWRVWHS

Step 9²&DOFXODWLRQRIFRHIÀFLHQWƣ

only for measurements that are trade- RIIDQGQHHGRSWLPL]DWLRQ7KHFRHIÀFLHQWLVPDUNHGZLWKƣ·

and calculat- HG E\ IRUPXOD  )RU WKLV SXUSRVH WKH PHDVXUHPHQWV RI VXSSO\ ORJLVWLFV·

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GHVFULELQJDOOPHDVXUH- ments and subset $

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is subset of C

(all examined measurements) and its elements assume values for q P7KHFRHIÀFLHQWLVƣ·

is calculated like ƣ

, but only for those PHDVXUHPHQWVWKDWDUHWUDGHRII$IWHUFDOFXODWLQJWKHFRHIÀFLHQWDOJRULWKP

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¦

=

T M

 T

M

G



δ (3)

where

G

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,

j n²QXPEHURIFRQVLGHUHGVXESURFHVV

T m²QXPEHURIFRQVLGHUHGPHDVXUHPHQW

Step 10²7KHFRHIÀFLHQWƣ

accepts the values of coordinates of vector Ƅ

which has need of improvement.

Step 11²%\WKHODVWRSHUDWLRQLQWKLVEORFNDOOYDOXHVRIƣ

are ranked by VL]HLQGHVFHQGLQJRUGHU$VXESURFHVVRIVXSSO\ORJLVWLFVZKLFKFRHIÀFLHQW

LV KLJKHVW JHWV UDQN ÅRQHµ ,W PXVW EH RSWLPL]HG ÀUVW VLQFH LQ SUDFWLFH LV

ÅRXWHUPRVWµIURPWKHVHWIRUWKWDUJHWSURFHVV

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(

)

5

 M

 L 7

 L

DEV

3 63  G  G  G

  Q

=

−

Δ =  (4)

A



Ci,j

Start

The real sub-processjin measurementi is more efficient than the target

onej

The target sub-processjin measurementi is more efficient than the real onej

N No

di,j>0

di,j<0

Yes

Yes

The real sub-processj in measurementi is as efficient

as the target onej

No

Block “B”

Yes

Block “A”

Ci are No maximizing

i=1,2,…,m

di,j*(-1) ߂_௔௕௦ǣ ൌͳ

݊ܲ_௜ǡ்െ ܵܲ_{௜ǡ௝ǡோ}ǣ ൌ ൫݀_ଵǡଵǢ ݀_ଶǡଵǢ ڮ Ǣ ݀_௠ǡ௡൯

OJRULWKP

Figure 2. A



No Yes

ߜ_௝ǣ ൌ ෍ ݀_௜ǡ௝

௠

௜ୀଵ

All Ciare trade-off

All Ciaren’t trade-off

For Ci which aren’t trade-off and di,j”1

No

No Yes

Yes ߜԢ_௝ǣ ൌ ෍ ݀_௤ǡ௝

௠

௤ୀଵ

 Ci = i = 1,…,m Aq = q = 1,…,m A ك C

Block “C”

ߜ_௝ǣ ൌ ݀_௜ǡ௝

N

ƣi are rank to descending order

End

lgorithm for assessment of priority of supply logistics sub-process improvement

Conclusion

In the present paper an approach that can determine the priority of supply ORJLVWLFVVXESURFHVVHVLPSURYHPHQWLQWKHRUJDQL]DWLRQZDVSUHVHQWHG,W

LVEDVHGRQHVWDEOLVKLQJWKHHIÀFLHQF\RIWKHUHDOVXESURFHVVHVFRPSDUHG

WRWKHVHWIRUWKWDUJHWHIÀFLHQF\)LUVWLWPXVWEHFDOFXODWHDYHFWRUGHVFULE-

LQJWKHQHFHVVLW\RIVXESURFHVVLPSURYHPHQWLQHDFKPHDVXUHPHQWƄ

).

'HSHQGLQJRQWKHREWDLQHGFRRUGLQDWH·VYDOXHVRIWKLVYHFWRUDFRQFOXVLRQ

whether optimization of the real sub-processes is necessary is drawn. Sub- VHTXHQWO\LWFDQEHGHWHUPLQHWKHDFWXDOQXPHULFYDOXHE\ZKLFKWRFRUUHFW

the coordinates of the real partial vectors under the relevant measurements.

6HFRQGFRHIÀFLHQWUHSUHVHQWLQJWKHQHHGIRUHDFKVXSSO\ORJLVWLFVVXESUR- cess optimization in all its measurements (ƣ

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References:

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%UJJHPDQQ-+HLQULFK%6REF]DN5Mathematik, Cornelsen Ver- ODJ%HUOLQ

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&DUO+DQVHU9HUODJ0QFKHQ

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3XEOLVKLQJ

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3DSXOD/0DWKHPDWLNIU,QJHQLHXUHXQG1DWXUZLVVHQVFKDIWOHU)ULH- GULFK9LHZHJXQG6RKQ9HUODJVJHVHOOVFKDIW%UDXQVFKZHLJ

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