ArticlePDF Available

A multiple objective optimization based QFD approach for efficient resilient strategies to mitigate supply chain vulnerabilities: The case of garment industry of Bangladesh

Authors:
  • University of Technnology Sydney

Abstract

With the upsurge of frequent disruptive events, organizations have become more vulnerable to the consequences of these disruptive events. As a result, the need for more resilient supply chain (SC) to mitigate the vulnerabilities has become paramount. Supply chain resilience (SCR) has been discussed in the literature and resilience index has been developed, but developing and selecting a portfolio of supply chain resilience capabilities in order to mitigate the vulnerabilities have not been studied. In this research we develop a 0-1 multi-objective optimization model based on QFD methodology. Our multi-objective method is interactive and interacts with the decision makers to choose the most satisfactory efficient portfolio of supply chain resilience strategies. We apply our methodology to three large ready-made garment (RMG) companies of Bangladesh. Results show that lack of materials (high dependence on imported materials), disruptions in utility supply, increased competition (and hence competitive pressure), impact of economic recession, and reputation loss are the top most vulnerabilities of Bangladesh RMG industry. The most preferred resilience strategies to mitigate the vulnerabilities are: back-up capacity, building relation with buyers and suppliers, quality control, skill and efficiency development, ICT adoption, demand forecasting, responsiveness to customers, and security system improvement. Theoretical and managerial implications of our study are included.
... Previous research on supply-chain risk management and several supply-chain risk-management methods include challenges in reducing seaweed supply chain risks in remote islands [12], the integration of the HOR and the analytical network process [12], DEMATEL [14], and Quality Function Deployment [15]. Several other methods are Fuzzy AHP [16], AHP [17], Fuzzy Bayesian-based Failure Mode Effect Analysis [18], and fuzzy-based HOR [19]. ...
... The literature suggests that IT capability can be deconstructed in a number of dichotomous ways to resemble support for work processes vs business strategies-for example, inside-out vs. outside-in IT capabilities [11], IT exploitation vs exploration [24], IT infrastructure capability vs IT proactive stance [9], software modularity vs IT business partnership [12], and IS integration vs analytical ability [10]. Summarizing prior IT capability research, drawing on the wider capability-based research (e.g., [25,26]), we apply a widely conceptualized notion of IT capability. We identify those two complementary views on IT capability as (1) reactive IT capability and (2) proactive IT capability. ...
Article
Full-text available
Information technology (IT) capability is an organizational capability that enables organizations to acquire, deploy, combine, and reconfigure IT resources. As such, it is often investigated in conjunction with organizational agility—an organization’s ability to sense and respond to changes—and organizational performance. Studies on IT capability distinguish between reactive and proactive IT capability and identify varying effects in relation to agility and performance. While reactive IT capability supports and enhances work processes, proactive IT capability supports and enhances business strategies. In the light of the mixed results of prior research, we conduct a meta-analytical investigation into the varying effects that reactive and proactive IT capability have on organizational agility and organizational performance. We identified 6.436 studies from multiple sources that we systematically reduced to include 72 empirical studies in our analysis. Contrary to previous results and widely held opinion, our meta-analysis neither finds support for differences in effect size between reactive (r+ = 0.39, k = 34, 95% Confidence Interval (CI) [0.34, 0.44]) and proactive IT capability (r+ = 0.38, k = 21, 95% CI [0.31, 0.45]) toward agility (z = 0.68, p = 0.25), nor from reactive IT capability (r+ = 0.31, k = 43, 95% CI [0.26, 0.37]) and proactive IT capability (r+ = 0.33, k = 25, 95% CI [0.27, 0.40]) toward performance (z = 1.11, p = 0.13). Given the importance of IT capability, we discuss possible explanations and propose four areas for future research: latency, sequence, configurational, and theoretical multiplicity of IT capability.
... Supply chains must understand the market position to enable them to use their financial strength (Ali et al., 2017a) and organisational efficiency (Ponomarov and Holcomb, 2009) to recover. Specific financial strength capabilities include insurance, portfolio diversification, financial reserves and liquidity, price margin, profitability and availability of funds (Chowdhury and Quaddus, 2015;Pettit et al., 2013). Financial strength is also a measure of readiness to build supply chain resilience (Kochan and Nowicki, 2018). ...
Conference Paper
Full-text available
Selection of structural system for new highway bridges during the conceptual design stage is critical to the success of the project and meeting stakeholders' requirements. During bridge conceptual design, a large set of subjective requirements must be considered and evaluated in terms of multiple criteria. In addition, it is critical to incorporate client needs and expectation during the conceptual design stage to achieve their satisfaction toward the delivery stage of the project. For this reason, this paper is proposing an integrated methodology to improve the decision-making process during bridge conceptual design. The proposed methodology utilises the quality function deployment (QFD) method to translate client needs into design requirements and the analytic hierarchy process (AHP) to prioritizes competing alternatives based on multicriteria decision analysis. The main advantage of integrating QFD and AHP is their ability to rank the design alternatives in order of their effectiveness in meeting client needs. While the QFD analysis has the power to optimize the designers' solutions from the point of view of quality engineering, the AHP analysis helps to make the best decision in a multicriteria decision-making situation.
Article
Purpose Society's concerns about environmental degradation have tightened competitive pressure and brought new challenges to small firms. Against this backdrop, this study develops a decision model to determine a suitable configuration for entrepreneurial orientation to help small firms manage circular economy challenges and improve their performance. Design/methodology/approach This study used a multi-study and multi-method approach. Study 1, through qualitative in-depth interviews, identified a portfolio of circular economy challenges and entrepreneurial-orientation components. Study 2 applied the quality function deployment technique to determine the most important components of entrepreneurial orientation. Study 3 adopted a fuzzy set qualitative comparative analysis to determine the best configuration for challenges and components. Findings The findings reveal a set of challenges and identify the salient need to combine the negation of these challenges with the components of entrepreneurial orientation; this combination will improve the performance of small firms. The research extends the current knowledge of managing circular economy challenges and offers decision-makers insights into improving their resilience. Originality/value The use of the dynamic capability view, together with the multi-study and multi-method approach, may lead to an appropriate reconfiguration of entrepreneurial orientation, which, to date, has received limited empirical attention in the small-business-management discipline.
Preprint
Full-text available
The economic losses and the number of people who have been vulnerable to natural disasters particularly flooding have increased dramatically over the past decades. The intensity of flood vulnerability is more severe in cities of developing countries. Adama City, which is located at the heart of Ethiopia is among the major cities regularly facing challenges of flood Vulnerability. This study was conducted with the objectives to assess the flood vulnerability and Management system of Adama city. To meet the intended objective, the study employed analytic hierarchy process using Geographic information system. To identify the flood hazard map later vulnerability, various factors such as slope, distance from the river, elevation, precipitation, NDVI, and population density were considered. As to hazard map is concerned, the results of the study showed that large areas of the city fall under moderate hazard zones followed by high hazard zones. The result further indicated that significant number of areas also fall under very high hazard zone. With regard to Vulnerability, large areas of the city (5941.44 hectare) fall under moderate flood vulnerability flowed by low (5217.66) and high (1661.58) hectares, respectively. Moreover, out of 18 villages, 8 of them (Badhatuu (07), Abba_Gadaa (12), Odaa (08), Gurmuu (06), Barreecha (11), Biqqa (10), Gaara Luugo (03), Caffee (13) partly experience very high levels of flood vulnerability. As to flood management is concerned, the result shows that the residents of Adama city are practicing peculiar flood management strategies such as flood septic tank in their garden, improve door size and gravel filling. To this end, it is highly recommended that these locations within high and very high hazard zone needs immediate intervention and decision making for future flood hazard management and planning of the city.
Article
Purpose Grounding on relational view and contingent resource-based views, the authors investigate the conditional indirect effect of Supply Chain Relational Practices (SCRPs) on supply chain performance (SCP) through proactive and reactive supply chain resilience (SCRE) capabilities at different levels of network complexity (NC). Design/methodology/approach The authors adopt an “exploratory sequential mixed methods design” combining the qualitative and quantitative approaches under a positivist paradigm. The qualitative method is primarily used to contextualize and develop better measurements of the factors and variables using content analysis of the field studies. This then informs the quantitative phase which conducts a questionnaire survey among the apparel manufacturing firms in Bangladesh. The authors analyzed the quantitative data using Partial Least Square based Structural Equation Modelling. The authors also used PROCESS integrated regression analysis to test conditional indirect effects. Findings Our research findings indicate that the indirect effect of SCRPs on SCP through proactive and reactive SCRE is positive and significant. It also finds that the conditional indirect effect is high at higher NC. Practical implications The results have immense practical implications as it proposes to enhance relational practices in order to develop SCRE as a contingent resource to mitigate disruptions. This will also help the supply chain (SC) managers to work through smoothly at different levels of supply chain NC and improve SCP. Originality/value Extant literature does not provide a deeper understanding of the impact of SCRPs on SCP, while SCRE and NC influence the link. Therefore, investigation of the conditional direct and indirect effect of SCRPs on SCP through proactive and reactive SCRE at different levels of NC is novel in SC management literature.
Article
Full-text available
Considering supply chain efficiency during the network design process significantly affect chain performance improvement. In this paper, the design process of a sustainable lead-acid battery supply chain network was addressed. Because the design of such networks always involves great computational complexity, in the present study, a two-stage model was proposed to overcome this issue. In the first stage, candidate sites of recycling centers were identified using data envelopment analysis (DEA) and based on their efficiency scores. Unlike the previous studies, not only economic criteria but also technical and geographical criteria were employed to select these locations. In the second stage, a bi-objective programming model was developed to simultaneously determine the tactical and strategic decisions of the chain. Since some data was subject to uncertainty, a robust possibilistic approach was presented. The model ensures that the resulting structure for the chain will be robust to noise and disturbance in parameters. A life cycle assessment model based on the ReCiPe 2008 method was developed in SimaPro software. To evaluate the applicability of the presented method, a case study in the automotive industry was used. The results of implementing the DEA method showed that from among 23 available locations, 11 potential places were selected for construct recycling centers. The final results showed that the inappropriate potential locations of recycling centers were eliminated, and the complexity of the mathematical model proposed in the second stage was reduced. The obtained results of environmental protection costs revealed that this criterion changed from 0 to 8,333,874,332. Moreover, the first objective function resulted in a centralized network to minimize costs, and in contrast, the second objective function tended to decentralize the network to minimize environmental impacts.
Article
Full-text available
With the increase in disruptions and vulnerabilities, demand for more resilient supply chain is echoed vibrantly in business world. It is important to develop resilient capability in right time because supply chain disruptions may be the cause of serious financial loss to the organizations as well as their supply chains. Supply chain managers need to identify supply chain disruptions and vulnerabilities so that they can develop resilience capability corresponding to those disruptions. In this paper, an Analytical Hierarchy Process (AHP) integrated Quality Function Deployment (QFD) technique has been used to identify prioritized vulnerabilities and corresponding resilience capability requirements. Such approach is still absent in the supply chain literature. An illustrative example has also been introduced to get a clear picture of the research process and future research plan.
Article
We study a single-product setting in which a firm can source from two suppliers, one that is unreliable and another that is reliable but more expensive. Suppliers are capacity constrained, but the reliable supplier may possess volume flexibility. We prove that in the special case in which the reliable supplier has no flexibility and the unreliable supplier has infinite capacity, a risk-neutral firm will pursue a single disruption-management strategy: mitigation by carrying inventory, mitigation by single-sourcing from the reliable supplier, or passive acceptance. We find that a supplier's percentage uptime and the nature of the disruptions (frequent but short versus rare but long) are key determinants of the optimal strategy. For a given percentage uptime, sourcing mitigation is increasingly favored over inventory mitigation as disruptions become less frequent but longer. Further, we show that a mixed mitigation strategy (partial sourcing from the reliable supplier and carrying inventory) can be optimal if the unreliable supplier has finite capacity or if the firm is risk averse. Contingent rerouting is a possible tactic if the reliable supplier can ramp up its processing capacity, that is, if it has volume flexibility. We find that contingent rerouting is often a component of the optimal disruption-management strategy, and that it can significantly reduce the firm's costs. For a given percentage uptime, mitigation rather than contingent rerouting tends to be optimal if disruptions are rare.
Article
Traditional methods of managing supply chain risk require estimations of how likely a disruption is to occur. For fairly common risks-poor supplier performance, forecast errors, transportation breakdowns-the traditional methods work quite well. But it's a different story for rare, high-impact events such as megadisasters, pandemics, and political upheavals. These risks are hard to quantify using traditional models, and as a result, many companies do not adequately prepare for them, which can have calamitous consequences when catastrophes do strike. A new model allows managers to quantify the impact of a supply chain disruption on a company's operational and financial performance, rather than focusing on the cause or likelihood of the disruption. This type of analysis obviates the need to determine the probability of any specific risk's occurring-a valid approach since the mitigation strategies are equally effective regardless of what caused the disruption. In this article, the authors describe how companies can use the model to reduce their exposure to all types of supply chain risk.
Article
The ready-made garment (RMG) industry of Bangladesh started in the late 1970s and became a prominent player in the economy within a short period of time. The industry has contributed to export earnings, foreign exchange earnings, employment creation, poverty alleviation and the empowerment of women. The export-quota system and the availability of cheap labour are the two main reasons behind the success of the industry. In the 1980s, the RMG industry of Bangladesh was concentrated mainly in manufacturing and exporting woven products. Since the early 1990s, the knit section of the industry has started to expand. Shirts, T-shirts, trousers, sweaters and jackets are the main products manufactured and exported by the industry. Bangladesh exports its RMG products mainly to the United States of America and the European Union. These two destinations account for more than a 90 per cent share of the country’s total earnings from garment exports. The country has achieved some product diversification in both the United States and the European Union. Recently, the country has achieved some level of product upgrading in the European Union, but not to a significant extent in the United States. Bangladesh is less competitive compared with China or India in the United States and it is somewhat competitive in the European Union. The phase-out of the export-quota system from the beginning of 2005 has raised the competitiveness issue of the Bangladesh RMG industry as a top priority topic. The most important task for the industry is to reduce the lead time of garment manufacturing. The improvement of deep-level competitiveness through a reduction in total “production and distribution” time will improve surface-level competitiveness by reducing lead time. Such a strategy is important for long-term stable development of the industry, but its implementation will take time. In contrast, the establishment of a central or common bonded warehouse will improve surface-level competitiveness by reducing lead time, but deep-level competitiveness will not be improved and long-term industry development will be delayed. Therefore, granting permission to establish in the private sector such warehouses with special incentives, such as the duty-free import of raw materials usable in the export-oriented garment industry for reducing the lead time in garment manufacturing, is a critical issue for Bangladesh. Second, Bangladesh needs to improve the factory working environment and various social issues related to the RMG industry. International buyers are very particular about compliance with codes of conduct. Third, issues related to product and market diversification as well as upgrading products need to be addressed with special care. Moreover, the Government of Bangladesh needs to strengthen its support. The development of the port and other physical infrastructure, the smooth supply of utilities, a corruption-free business environment and political stability are some priority concerns for the Government to consider in its efforts to attract international buyers and investors.