Analysis of Traceability Optimization and Shareholder's Profit for Efficient Supply Chain Operation under Product Recall Crisis

Title
Analysis of Traceability Optimization and Shareholder's Profit for Efficient Supply Chain Operation under Product Recall Crisis
Author
이영해
Keywords
FINANCIAL VALUE; FOOD-INDUSTRY; MANAGEMENT; IMPACT; RISKS; MODEL
Issue Date
2015-10
Publisher
HINDAWI PUBLISHING CORPORATION
Citation
MATHEMATICAL PROBLEMS IN ENGINEERING, V. 2015, Article ID 896239
Abstract
Product recall gains considerable importance in recent times; the reason may be the huge losses faced by manufacturers because of product recall issues. Furthermore, the revenue of the firm is immensely affected as a result of product recall, which may lead to serious outcomes. Huge recall cost (such as repairing or destroying the recalled products and cost of notification) occurs as a result of large recall. Therefore, in order to minimize the quantity and probability of recalls the traceability systems are widely used and considered as a necessary part of product safety strategies. However, from literature it is clear that manufacturers are still struggling to obtain the significant results. This study helps the managers to understand the importance of recall cost by analysing its impact on shareholders profit. Keeping in view the importance of problem, the paper proposed an integrated optimization model to minimize the expected loss to shareholders in recall crisis using batch dispersion methodology. The analysed results show that reduction in traceability level increases the expected shareholders losses while decreasing the operational costs. This will help managers to optimally set the production batch sizes in order to reduce the product recall impact.
URI
https://www.hindawi.com/journals/mpe/2015/896239/abs/http://hdl.handle.net/20.500.11754/40232
ISSN
1024-123X; 1563-5147
DOI
10.1155/2015/896239
Appears in Collections:
COLLEGE OF ENGINEERING SCIENCES[E](공학대학) > INDUSTRIAL AND MANAGEMENT ENGINEERING(산업경영공학과) > Articles
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