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The primary goal is to establish how procurement ethics will influence stakeholders' satisfaction among selected health centers in Ghana, with an emphasis on the role of organizational culture. The specific objectives of the study were: to examine the effect of procurement ethics on stakeholder satisfaction, to assess the effect of organizational culture on stakeholder satisfaction, as well as assess the moderating effect of organizational culture on the relationship between procurement ethics and stakeholders' satisfaction. A case study approach was adopted and a sample size of 120 was chosen using a purposive sampling technique. The findings of the study show that procurement ethics has a positive and significant relationship with stakeholder satisfaction. Also, the result indicates that organizational culture positively influenced stakeholders' satisfaction. Finally, findings indicates that organizational culture positively moderates the link between procurement ethics and stakeholders' satisfaction. The study concluded that management should consider organizational culture such as clan, adhocracy, and market culture, to ensure value for money, transparency, accountability, fair dealings, and professionalism in order to enhance employee's satisfaction, customers satisfaction, communities' satisfaction, and shareholders satisfaction. [ABSTRACT FROM AUTHOR]

Provision of integrated solutions is a relational process in which suppliers address buyers' unique requirements through the integration of physical goods, services and knowledge. Although the integrated solutions in the supply chain context require both parties' involvement to the process, the concept is not yet fully understood from the dual perspectives of buyers and suppliers. This study explores integrated solutions process in the supply chain context from a dyadic perspective, in an emerging economy setting. The chosen setting is particularly important, due to the possibility of market dynamics affecting the process of integrated solutions. We adopt a perspective of dyadic relationship between buyers and suppliers in supply chains and use multiple case study research design to analyse relations between leading manufacturing companies and their suppliers in the consumer durables industry. Findings reveal a need for a new viewpoint based on a cyclical solutions process. Findings also show suppliers' limited awareness on integrated solutions, despite their full involvement in the integrated solutions creation process. Thus, one of the critical findings is the integration solutions process starts with the need recognition of the buyer. We develop a framework detailing the capabilities and tools needed for each stage of the integrated solutions process. Additionally, we propose a new definition for integrated solutions in the supply chain context, from a dyadic perspective in an emerging economy setting. To the best of our knowledge, this is the first study that explores the concept in the supply chain context reflecting a dyadic perspective of buyers and their multiple suppliers in an emerging economy context. [ABSTRACT FROM AUTHOR]

Supply networks (SNs) play a vital role in fuelling trade and economic growth. Due to their interconnectedness, firm-level disruptions can cause perturbations to ripple through SNs, magnifying initial impact. Contemporary research on ripple effects focussed on understanding various structural features of SNs to predict and control disruption propagation. Our work adds to this body of knowledge by analysing an intriguing topological property that emerges in SNs: ‘nestedness’, which is defined as a pattern of organisation where products that are supplied by specialist suppliers are a subset of products that are supplied by generalist suppliers. In other words, generalists are also specialists. While previous research examined the emergence of nestedness and its possible reasons, its relationship to SN resilience remained unknown. Here,we develop a cascade model by bringing together the product-supplier-buyer structure; which provides us with fine-grained information on SN dependencies. We simulate disruptions in nested and non-nested organisations of the global automotive SN, and find that nested organisations are significantly more robust to random disruptions but vulnerable to hub disruptions under cascade conditions. However, nested structures are not as resilient; as they do not benefit from a response strategy where buyers seek alternative suppliers; because alternative suppliers do not exist. On the other hand, randomly connected SNs are vulnerable to cascades but can allow network reconfiguration. [ABSTRACT FROM AUTHOR]

Supply chains are increasingly global, complex and multi-tiered. Consequently, companies often struggle to maintain complete visibility of their supply network. This poses a problem as visibility of the network structure is required for tasks like effectively managing supply chain risk. In this paper, we discuss automated supply chain mapping as a means of maintaining structural visibility of a company's supply chain, and we use Deep Learning to automatically extract buyer–supplier relations from natural language text. Early results show that supply chain mapping solutions using Natural Language Processing and Deep Learning could enable companies to (a) automatically generate rudimentary supply chain maps, (b) verify existing supply chain maps, or (c) augment existing maps with additional supplier information. [ABSTRACT FROM AUTHOR]

Purpose: A supplier may sell not only to one buyer (sole relationship configuration) but also to the buyers competitors (shared relationship configuration) for a specific product category. This study examines the performance implications when suppliers establish shared relationships with the buyer's competitors. Design/methodology/approach: Secondary data are used to test hypotheses relating a supplier's relationship configurations to its operational performance. A seemingly unrelated regression approach (SUR) is applied to analyze the data, followed by endogeneity checks of the empirical findings. Findings: The study shows that suppliers with less-shared ties with buying firms' competitors exhibit superior inventory efficiency and asset turnover. Thus, suppliers can improve operational efficiency by creating relatively exclusive, deep and trust-based relations instead of more extensively shared and shallower relationships. Research limitations/implications: Based on agency theory as a theoretical lens and aerospace industry data, this research contributes by addressing the supplier's perspective and linking its operational efficiency performance with its chosen supply relationship configuration. Practical implications: Suppliers need to understand the performance implications of choosing relatively exclusive relationships versus shared relationships with buying firms. The research provides new insights for managers and can guide their supply chain decision-making. Originality/value: Little is known about how a supplier's relationship configurations can elevate, or impair, its operational efficiency. While conventional wisdom holds that suppliers should focus on multiple avenues of revenue growth by selling to buyers' competitors, this study demonstrates that more sales to a buying firm's rivals might, in fact, reduce a supplier's efficiency. [ABSTRACT FROM AUTHOR]

Striving for new business opportunities automotive original equipment manufacturers established overseas plants in emerging markets and global manufacturing networks evolved. In this regard so-called knocked down supply chains have been the key for the establishment of successful overseas operations. Importing all parts required from the original plants in form of easy to be handled kits secures a high product quality and stable supply despite lacking qualification of local workforce and supplier bases. Over time the overseas plants and global manufacturing networks have matured by increasingly taking over value adding processes and integrating local suppliers. However, the supply chain structure and management have not been adapted accordingly and still comprise high inventory buffers and lead times. There is little research on the integrated design of global manufacturing networks and knocked down supply chains. This research aims to contribute to close this research gap by means of a cross-case study with six globally operating OEMs investigating the fit of knocked down supply chains and global manufacturing networks. On the basis of transaction cost theory, we develop an integrated framework to align global manufacturing networks and knocked down supply chain design that can serve as guideline to open logistics performance and cost potentials. [ABSTRACT FROM AUTHOR]

The benefits organisations can gain from outsourcing include cost savings and higher levels of innovation. On the other hand, outsourcing drawbacks include potential operations and performance issues such as capability and capacity problems. Some large organisations are pursuing the practice of outsourcing, more specifically, targeting global outsourcing from developing and low-wage countries. However, the perception of expected cost saving benefits when outsourcing to low-wage countries does not always reflect reality. A number of companies have failed to achieve the expected cost savings in sourcing from low-wage countries due to operational-level capability. The objective of this study is to develop an extended evaluation method that takes into account operational-level influence factors, in addition to the procurement factors, in the context of non-developed supplier markets. Our extended evaluation method of potential suppliers addressed the paradigm of ‘standard industry recipes’, by encompassing operational-level influence factors and integrating supplier value stream analysis into the evaluation and selection process of outsourcing. A survey was distributed to 369 international manufacturers. Operational levels were categorised into seven latent constructs: Customer Service/Sales, Purchasing, Production Planning and Control, Manufacturing Engineering, Shop Floor and Quality Control, Receiving and Shipping. Structural Equation Modelling (SEM) confirmed the seven constructs, but measuring items were reduced from 39 to 23 significant observed measuring items, compromising the supplier selection framework. Our proposed framework will help practitioners make better informed decisions in outsourcing from non-developed supplier markets. [ABSTRACT FROM AUTHOR]

This paper considers a creditworthy buyer who has two supplies: a low-cost but capital-constrained unreliable SME (small and medium-sized enterprise), and a high-cost but reliable backup source. The buyer may consider a novel financing mechanism named BPOF (buyer-backed purchase order financing) for supporting the SME indirectly. Under the BPOF scheme, the buyer provides partial or full guarantee to share the bank’s financing risk thus facilitate the SME’s loan application. To balance the risk with the benefit due to BPOF, we specify the conditions under which BPOF works and identify the properties of the buyer’s optimal strategy for sourcing and guaranteeing jointly. Generally speaking, a rational buyer’s guarantee should positively correlate to her product margins and the suppliers’ reliability. Finally, we claim when the risk-adjusted wholesale price is sufficiently low, dual financing (BPOF and subsidy) should be suggested. [ABSTRACT FROM AUTHOR]

The value of reverse factoring consists of interest arbitrage and the potential option to enable production. We provide closed-form expressions for both components, building on financial theory and a stochastic model of liquidity needs. We characterise industries in terms of growth and volatility to identify supply chains that benefit most from adopting reverse factoring. Our results suggest how buyers should introduce reverse factoring to their supply chain to maximise their profit. Besides contributing to the understanding of reverse factoring, we provide managers with both an exact formula and an approximate rule to assess their value of reverse factoring. Our analytic and numerical results also indicate that, in many but not all cases, buyers should ask for payment term extensions rather than price reductions to obtain direct benefits from reverse factoring. [ABSTRACT FROM AUTHOR]

This study investigates the effects of individual negotiation styles on a buyer’s stated behaviour and a supplier’s anticipation of the buyer’s behaviours with regard to opportunism and compliance in a multi-echelon production network under different firm-level governance mechanisms. We design a between-subjects matched-scenario experiment to collect data from both sides of a buyer‒supplier dyad. We find that agent negotiation styles do exert influences on opportunism but not compliance. Specifically, we find that the effects of firm-level governing mechanisms dominate the effects of individual negotiation styles with regard to compliance, while individual negotiation styles have influence beyond firm-level governing mechanisms with regard to opportunism. Theoretical contributions of our findings to the current literature and managerial implications to practice are discussed. [ABSTRACT FROM PUBLISHER]

By-product synergy (BPS) is considered an effective measure to support a circular economy and sustainable development as it can reduce waste disposal and natural resource consumption. The adoption of BPS can create new supplier-buyer relations that are different from traditional ones because the traded products are usually outside of the core business of the supplier, so the new relations need to be coordinated. This paper considers a two-echelon supply chain consisting of a manufacturer and a retailer. The by-product is randomly generated along with the production of the core product. The manufacturer sells its core product directly to the market with uncertain demand and sells the by-product to the retailer facing stochastic demand. To coordinate both the manufacturer's production and retailer's order decisions and achieve efficient performance, we analyze several contracts and find that a combined contract with an ABD contract and a revenue sharing contract could coordinate the supply chain and realize Pareto-improvement. A numerical experiment is also carried out to explore the influences of fluctuations in demand and supply on the performance of the manufacturer, the retailer, and the total supply chain. [ABSTRACT FROM AUTHOR]

Supplier selection is an important strategic design decision in closed-loop supply chain systems. In addition, and after identifying the candidate suppliers, optimal order allocations are also considered as crucial tactical decisions. This research presents a multi-objective optimisation model to select the best suppliers and configure manufacturing and refurbishing facilities with the optimal number of parts and products in a closed-loop supply chain network. The objective functions in this research are formulated as total profit, total defective parts, total late delivered parts and economic risk factors of the candidate suppliers. The proposed multi-objective model is solved by hybrid Monte Carlo simulation integrated with three different variants of goal programming method. The effectiveness of the mathematical model and the proposed solution algorithms in obtaining Pareto-optimal solutions is demonstrated in a numerical example adopted from a real case study. [ABSTRACT FROM AUTHOR]

A well-established scheme and mechanism for deciding product acceptance is perceived as a win-win situation for the long-term supplier–buyer relationship. In this paper, we develop a lots-dependent variables sampling scheme for product acceptance determination. The dependent state is based on the sample information of the process capability index that incorporates the supplier’s process loss and the buyer’s demanded specifications requirement. This main scheme is implemented by a three-rule process that accepts or rejects a related lot conditional on the sample results of past lots. The plan-operational parameters satisfying the desired quality levels and constraining the supplier–buyer risks are determined by a non-linear optimisation model. In performance comparisons, our proposed plan demonstrated higher cost effectiveness and discriminatory power than the traditional variables single sampling plan. Finally, industrial applicability of our recommended sampling plans was investigated in a case study. [ABSTRACT FROM AUTHOR]

This study examines the determinants of opportunism in supply chain relationships in emerging markets. Drawing on transaction cost theory and resource dependence theory, we propose that external uncertainties (environmental uncertainty and legal unprotectability) influence opportunism through power (coercive and non-coercive). The results, based on 240 companies in China, indicate that environmental uncertainty enhances supplier opportunism directly and indirectly through the buyer’s use of coercive power over the supplier, while legal unprotectability enhances supplier opportunism directly, but reduces it indirectly through the buyer’s use of non-coercive power. While buyer coercive power increases supplier opportunism, buyer non-coercive power decreases it. [ABSTRACT FROM AUTHOR]

Lack of knowledge about demand responses or about behavioural aspects of decision-making within procurement processes is a significant cost driver in modern supply chains. Very often, this lack of knowledge leads to a substantial increase in inventories and may endanger negotiated service levels. For instance, various studies reveal that decision- makers tend to anchor orders close to the average past demand although the target order size is significantly higher or lower. In order to improve this situation, feedback has to be systematically provided to the decision-makers. In combination with modern big data analytics and reporting instruments that enable exhaustive monitoring, effective indicators have to be applied in order to directly detect processes with significant potential for improvement. Hence, this paper proposes a new approach for measuring the intricacy in purchase order sizing that addresses self-awareness skills of decision-makers. By simultaneously analysing the amount and structure of occurring costs, processes with a significant and simple structured error pattern are identified. In order to identify these processes more reliably, a new approach that supplements former information-theoretic entropy measures by an additional cost value is proposed. By analysing costs and the structure of deviations from target values in a two-dimensional measure, a more comprehensive understanding of the considered order sizing process is pursued. In order to illustrate the application of the new approach and show limitations of one-dimensional measures, different scenarios that exemplify the new approach are presented. [ABSTRACT FROM AUTHOR]

All organisations face partner selection. It is the first step in establishing partnership. Over recent decades, a one-way selection approach has been dominant in the literature. It is assumed that a buyer searches for one or more suppliers from a set of suppliers. Once the best supplier is found and selected, a partnership is formed. However, in reality, not only is the selection not a one-way process as the relationship itself is bilateral, but the existence of other buyers and suppliers also needs to be taken into account. In this study, a two-way partner selection approach is proposed, where not only the buyers evaluate suppliers, but also the suppliers have the opportunity to evaluate buyers. Considering a marketplace where there are several buyers and suppliers, an integrative model is proposed in the form of an assignment model to optimally match all the buyers and suppliers. A generalised model is also formulated to take the suppliers’ capacity and buyers’ demand into account. The proposed models are illustrated using some numerical examples. Finally, conclusions and recommendations for future research are provided. [ABSTRACT FROM PUBLISHER]

Collaborative planning, forecasting and replenishment (CPFR) as an interconnection scheme between organisations have been shown to have significant benefits. Since its inception in the 1990s, its uptake has been lower than originally predicted. This paper identifies the major barriers and their interrelationships in CPFR implementations with a focus on high-tech industries. Interpretive Structural Modelling is used with a group of CPFR experts from industry/academia and Matrice d’Impacts Croisés Multiplication Appliquée àun Classement analysis to identify the driving and dependence powers. The paper identified 45 CPFR barriers and classifies them into four categories based on expert opinion, with only 13 of these determined to be significant. The results indicate that in terms of categories, managerial barriers are a significant root cause for both process and cultural barriers and CPFR implementation difficulties. It also indicates that although the importance of information technology to launch collaborative schemes has been addressed by many scholars, technology alone is not the complete solution for successful CPFR implementation. The paper has significant practical implications for organisations as it identifies the main CPFR barriers and their causal relationships. This will help firms in the process of CPFR strategy development particularly for mitigation strategies for dominant barriers. [ABSTRACT FROM PUBLISHER]

The objective of this paper is to provide an empirical evidence for whether the hierarchical position (determined by firm’s quality strength) of different types of quality supply chain categories implies the same hierarchy in terms of economic gains. Using data collected in France through a survey, we distinguish between four types of quality supply chain categories that help us to empirically construct a relationship between firms and their suppliers (quality certified/non-quality certified). Our findings, from a two-regime switching model, reveal that there is a positive correlation between the hierarchical positions of the quality supply chain categories and the impact on firm performance (measured by profit per employee). [ABSTRACT FROM PUBLISHER]

In practice, it is common for companies to purchase multiple products simultaneously. For the multiple required products, a large number of interested suppliers are involved. It is necessary for the purchasing company to shortlist a small number of qualified and competitive potential suppliers prior to finalising the suppliers for order fulfilment. In addition, synergy effect which is an effect arising between two or more products that produce an effect greater than the sum of their individual effects, could exist in the multi-product supplier selection environment. Since synergy effect between products can affect the choice of suppliers, it is also necessary to incorporate the synergy effect between products in the supplier selection for multiple products. However, few research efforts have been focused on the supplier pre-selection problem, let alone explicitly for multiple products with synergy effect. This paper presents a supplier pre-selection model for multiple products with synergy effect. The model is able to evaluate interested suppliers on the multiple pre-selection criteria, by the fuzzy Technique for Order Preference by Similarity to Ideal Solution (TOPSIS)-based supplier pre-selection algorithm, and shortlist a small number of potential suppliers. Illustrative examples are conducted to demonstrate the function and application of the supplier pre-selection model for multiple products with synergy effect. [ABSTRACT FROM PUBLISHER]

The paper investigates newsvendor problem for a dyadic supply chain in which both the supplier and the retailer have the preference of status-seeking with fairness concerns. Nash bargaining solution is introduced as the fairness reference point and equilibrium results are derived. The effects of fairness-concerned status-seeking behaviors on optimal decisions as well as channel efficiency are further analyzed. It is shown that the channel efficiency will decrease because of such behavioral preference. The retailer’s share will be larger when the supplier concerns fairness less, and the supplier’s sensitivity to fairness plays a relatively more important role for the channel efficiency. Additionally, another interesting managerial insight is concluded that fairness concerns will not change the status of channel coordination in certain conditions. More specifically, those contracts able (unable) to coordinate fairness-neutral supply chain, based on affine transformations with scale factors within certain ranges, still succeed (fail) to coordinate the fairness-concerned. Furthermore, several insights on bargaining powers are given as well. [ABSTRACT FROM PUBLISHER]

This paper considers a supply chain in which a buyer purchases finished items from a contracting supplier to satisfy a stochastic market demand, where the supplier’s production is subject to random yield. We assume that the buyer can make up the shortage by sourcing from an emergency backup supplier. We develop two Stackelberg game models, i.e. buyer-Stackelberg (BS) model and supplier-Stackelberg (SS) model, and find that the decentralised BS model results in a higher stocking factor of supplier’s input than the decentralised SS model. Compared with BS model, the buyer in SS model performs more explicit order plan, and we find that only when the actual yield of the supplier is insufficient, the buyer would use emergency backup sourcing to make up the shortage. When the manufacturing operation of the supplier is in the good state, the buyer only orders a certain amount and has some leftover. When the actual yield of the supplier is moderate, the buyer uses up every item produced from the supplier regardless of the yield rate. Comparing both channel structures, SS operation is a more effective way of controlling both inventory cost and backup sourcing cost, and it can be beneficial for each player as well as for the whole channel. Finally, we develop the coordination mechanism for each channel to investigate the issues of risk handling and risk sharing for uncertain demand and uncertain yield. [ABSTRACT FROM PUBLISHER]

The inventory-routing problem (IRP) is a typical logistics optimisation problem that supply chains, implementing vendor managed inventory (VMI), are confronted with. It combines inventory control and vehicle routing. The main objective of the IRP is to jointly determine optimal quantities of the product to be delivered to the retailers, delivery periods and optimal vehicle routes for the shipment of these quantities. This paper considers a multiperiod inventory-routing problem with stochastic stationary demand rates (MP-SIRP). The problem is first formulated as a linear mixed-integer stochastic program for which we propose a deterministic equivalent approximation model (MP-DAIRP). This latter model can be decomposed into two well-know subproblems: an inventory allocation subproblem and a vehicle routing subproblem. The stochastic aspect of the demand is accounted for in the inventory allocation subproblem. The vehicle routing subproblem is solved as a deterministic mixed-integer problem. Lagrangian relaxation is used to determine close to optimal feasible solutions for the MP-DAIRP. Results of the proposed Lagrangian relaxation approach on some numerical examples are reported and thoroughly discussed. [ABSTRACT FROM AUTHOR]

In previous studies on the order allocation of the supply chain, suppliers involved in order allocation are expected to accept orders passively. However, in the actual order allocation process of logistics service supply chain (LSSC), functional logistics service providers (FLSPs) are strategic. They will pre-estimate the order allocation results to decide whether or not to participate in order allocation. Besides, FLSPs will compete for orders by bidding strategy when there are more than one FLSP in order allocation. Therefore, it is necessary to introduce the pre-estimate behaviour and competitive-bidding strategy of FLSPs into the study of order allocation in LSSC. In this article, the pre-estimate behaviour and competitive-bidding strategy are considered and the bidding range of each FLSP is obtained. It is assumed that the logistics service integrator (LSI) allocates the order sequentially to FLSPs from the lowest price to highest price. Then, a multi-objective dynamic programming model with the objectives of the cost of LSI and the order satisfaction of FLSPs is built. Numerical analysis is followed to discuss the effects of some parameters on the order allocation results. Research shows that the quote of a FLSP only depends on its own cost and the highest industry cost but irrelevant to the industry lowest cost when considering competitive-bidding strategy of FLSPs; besides, too low or too high in industry cost affects the performance of order allocation; furthermore, pre-estimate behaviour and competitive-bidding strategy of FLSPs can help reduce the order allocation cost of LSI and improve the performance of LSSC. In the end, an example of Tianjin Baoyun Logistics Company is used to introduce the order allocation process of logistics service when Baoyun considers pre-estimate behaviour and competitive-bidding strategy of FLSPs, which helps to illustrate the application of model conclusions. [ABSTRACT FROM AUTHOR]

The inventory model in this paper is targeted to production systems with constant production rates but underlying possibilities for undesirable circumstances to threaten the production schedule. The inventory policy proposed explicitly considers energy cost when determining optimal size for order quantity, safety stock and inventory cycle length such that the total expected cost per unit time is minimised. The results are compared to a traditional inventory policy that does not consider the direct impact of energy cost. An analysis of the model reveals three production environment characteristics in which inventory policies are most significantly affected by changes in energy cost: heavy product weight, high regular product demand or high emergency product demand. If any one of the three key factors increases, then changes of the inventory decisions or related logistics costs become more significant. The cost effectiveness of implementing the proposed inventory policy also becomes more significant as any one of the three key factors increase with respect to energy cost. [ABSTRACT FROM PUBLISHER]

The term ‘supply chain’ has been, perhaps surprisingly, highly successful since it was proposed. This paper discusses the material and theoretical roots from which the concept arises, as well as its content and implications. It focuses especially on the question of whether the term is useful only to, say, put old wine into new wineskins or responds to a very different reality from that we had a few decades ago. The latter poses new problems, some of which are pointed out, whose resolution requires new theoretical and computational tools. The obvious inadequacy of the term to describe the reality it refers to is emphasised. Some challenges, opportunities and switchpoints for the future of the supply chain are listed as well. [ABSTRACT FROM PUBLISHER]

A supply chain ecosystem consists of the elements of the supply chain and the entities that influence the goods, information and financial flows through the supply chain. These influences come through government regulations, human, financial and natural resources, logistics infrastructure and management, etc., and thus affect the supply chain performance. Similarly, all the ecosystem elements also contribute to the risk. The aim of this paper is to identify both performances-based and risk-based decision criteria, which are important and critical to the supply chain. A two step approach using fuzzy AHP and fuzzy technique for order of preference by similarity to ideal solution has been proposed for multi-criteria decision-making and illustrated using a numerical example. The first step does the selection without considering risks and then in the next step suppliers are ranked according to their risk profiles. Later, the two ranks are consolidated into one. In subsequent section, the method is also extended for multi-tier supplier selection. In short, we are presenting a method for the design of a resilient supply chain, in this paper. [ABSTRACT FROM PUBLISHER]

We consider a decentralised supply chain with demand uncertainty, wherein a manufacturer sells a single product that consists of two components to the end consumer through an independent distributor. Assume that one component has a random yield, the manufacturer may rely on the spot market to replenish any shortage components after the random yield is realised. We identify the optimal product order, component production and replenishment decisions under two different situations. One is the traditional arrangement that the distributor decides the product procurement quantity and the manufacturer chooses the production quantity. The other is vendor-managed inventory (VMI) arrangement in which the manufacturer is responsible for both the order and the production decisions. The results show that the role of spot market can effectively offset the negative effects from production yield’s, market demand’s and component spot price’s variances. Consequently, the spot market leads to the cooperation between the manufacturer and the distributor, and improves the channel’s overall performance, in particular under the VMI arrangement when the wholesale price is sufficiently high. [ABSTRACT FROM PUBLISHER]

This paper deals with the integrated facility location and supplier selection decisions for the design of supply chain network with reliable and unreliable suppliers. Two problems are addressed: (1) facility location/supplier selection; and (2) facility location/supplier reliability. We first consider the facility location and supplier selections problem where all the suppliers are reliable. The decisions concern the selection of suppliers, the location of distribution centres (DCs), the allocation of suppliers to DCs and the allocation of retailers to DCs. The objective is to minimise fixed DCs location costs, inventory and safety stock costs at the DCs and ordering costs and transportation costs across the network. The introduction of inventory costs and safety stock costs leads to a non-linear NP-hard optimisation problem. To solve this problem, a Lagrangian relaxation-based approach is developed. For the second problem, a two-period decision model is proposed in which selected suppliers are reliable in the first period and can fail in the second period. The corresponding facility location/supplier reliability problem is formulated as a non-linear stochastic programming problem. A Monte Carlo optimisation approach combining the sample average approximation scheme and the Lagrangian relaxation-based approach is proposed. Computational results are presented to evaluate the efficiency of the proposed approaches. [ABSTRACT FROM PUBLISHER]

This article proposes a simulation approach based on system dynamics for operational procurement and transport planning in a two-level, multi-product and multi-period supply chain. This work uses the Vensim® simulation tool to highlight the potential of system dynamics for supply chain simulation. A real continuous simulation application is presented in an automobile supply chain. The effectiveness of the proposed model is validated through the comparison of the results provided by spreadsheet-based simulation, fuzzy multi-objective programming and system dynamics-based simulation models. The fundamental point of this paper is that the simulation model is the most effective approach in quantifying the trade-off between number of truck shipments and average inventory level. In this case, the number of truck shipments is to be minimised, resulting in a higher inventory level. If the average inventory level were minimised, then there would be more truck shipments. Here, it is shown the benefit of this type of simulation model in reducing inventory by about 10%. [ABSTRACT FROM AUTHOR]

Information sharing has been shown previously in the literature to be effective in reducing the magnitude of the bullwhip effect. Most of these studies have focused on a particular information-sharing setting that assumes demand follows an autoregressive process. In this paper, we contribute to the literature by presenting a price-sensitive demand model and a first-order autoregressive pricing process that is coupled to the optimal order-up-to inventory policy and the optimal minimum mean-squared error forecasting technique. We compare a no information-sharing setting – in which only the first stage of the supply chain observes end-customer demands and market prices, and upstream echelons must base their forecasts on downstream incoming orders – with two information-sharing settings, end-demand and order information and end-demand information. In the case of end-demand and order information, upstream echelons develop their forecasts and plan their inventories based on the end-customer demand, price information, and downstream orders. With end-demand information, upstream echelons use only end-customer demands and market prices to conduct their forecasting and planning. We derive the analytical expressions of the bullwhip effect with and without information sharing, quantify the impact of information sharing on the reduction of the bullwhip effect associated with end-demand and order information and end-demand information, and explore the optimal information setting that could most significantly restrain the bullwhip effect. Our analysis suggests that the value of these two information-sharing settings can be high, especially when the pricing process is highly correlated over time or when the product price sensitivity coefficient is small. Moreover, we find that the value of adopting end-demand and order information is always greater than that of end-demand information. [ABSTRACT FROM AUTHOR]

Campuzano, Mula, and Peidro (“Fuzzy estimations and system dynamics for improving supply chains.” Fuzzy Sets and Systems 161: 1530–1542) evaluate the behaviour of fuzzy estimations of demand instead of exponential smoothing for demand forecasts in a two-level (manufacturer and end customer) supply chain and demonstrate how the bullwhip effect and the amplification of inventory variance (NSAmp) can be effectively reduced. In this note, we extend and test the previous model to a three-level supply chain which consists of an end consumer, a retailer and a manufacturer. Here, the model is tested by using both Gaussian and autoregressive demand patterns. We show that the bullwhip effect and NSAmp also reduce at the level where fuzzy orders exist with good fill rate values. [ABSTRACT FROM PUBLISHER]

This paper examines the crude oil procurement practices of Chinese oil refineries to suggest improved procurement policies that can reduce the cost associated with fluctuating oil prices in the international spot market. In the industrial environment, the purchase price of crude oil is based on the spot price at the time of delivery rather than that at the time of ordering. Therefore, the purpose of this paper is to develop a procurement model that factors in the spot prices at both the time of ordering and the time of delivery so that the total procurement cost can be minimised over the planning horizon. First, the shortcomings of the current procurement policy of a typical Chinese refinery are presented. A model to address these shortcomings is then developed and embellished by incorporating market information dynamics through Bayesian learning. The effectiveness of the proposed models is compared with the current practice using the historical spot price data of crude oil from two representative spot markets; this comparison verifies that the model with Bayesian sampling performs well empirically and can result in considerable cost savings. [ABSTRACT FROM AUTHOR]

This paper develops a taxonomy of buyer–supplier relationships (BSRs), based on the supplier’s absorptive capacity (AC). AC encompasses three learning processes: exploration, assimilation, and exploitation. The aim is to develop a taxonomy that can predict a firm’s performance with regard to innovation and operational efficiency. This research complements the literature, which presently focuses on descriptive rather than predictive taxonomies. Data from 153 firms were collected through survey research. Confirmatory factor analysis was used to assess the quality of data and calculate composite scores to be used in the cluster analysis to develop the BSRs patterns. Analysis of variance was used to explore the relationships between BSR type and firm performance. Finally, semi-structured interviews aided interpretation of the proposed taxonomy. Findings support the identification of groups of dyads through different combinations of the learning processes underlying AC. The different combinations are typified through AC strength and AC reinforcement. The results provide evidence of a significant relationship between AC strength and firm performance. Surprisingly, we did not find empirical support for the relationship between AC reinforcement and performance. [ABSTRACT FROM PUBLISHER]

Most automotive companies outsource the design, manufacturing and assembly of some complete cars to independent suppliers or full service vehicle companies (FSVs). FSVs represent a relatively unexplored form of outsourcing which combines joint efforts in developing a modular product with the externalisation of specific niche manufacturing processes. On the basis of comparative cases and of qualitative information collected within three FSVs and three OEMs, this study aims to investigate the associated advantages and risks for FSVs, commonalities/differences from the practices of outsourcing to component/module specialists that can be found in other industries and why and for what kind of products FSVs can be appropriate in automotive supply networks. The study contributes to the debate on outsourcing in the automotive industry by providing an original interpretation on why FSVs have recently seen a shakeout with some growing whilst others have faltered. [ABSTRACT FROM PUBLISHER]

This study aims to investigate how different knowledge-management processes (i.e. knowledge acquisition and dissemination) affect the manufacturers’ performance in collaborative economic exchanges with their suppliers. Drawing upon the knowledge based view and transaction cost economics, this study proposes that knowledge-management processes are positively related to the performance of the manufacturers in a collaborative buyer–supplier relationship. It also posits that this link is stronger when the levels of supply-chain integration and relational stability are higher rather than lower. The findings of this study show strong support for these propositions. Theoretical and practical contributions of this study are also addressed. [ABSTRACT FROM PUBLISHER]

This article sheds light on the role of information systems in product recovery management. We first develop analytical models and then provide a numerical example to determine under what conditions investments in Information-intensive Product Recovery Systems (IPRS) are economically justifiable for manufacturers and when policy-makers need to consider facilitating their implementation. The results of the analytical models indicate that the recovery network (collection) structure and product characteristics determine if precision improvements or increased sorting speed associated with IS investments will lead to higher profit gains. Manufacturers should carefully assess conflicting impacts of current manufacturing and recycling technology trends on the value of IPRS. Implementing IPRS might end up reducing manufacturers' profits under a highly time efficient decentralised collection structure. We show that negotiations with competitors about IPRS implementation may lead to a win–win situation and allow consumers to enjoy the lowest product price if the binding force of the agreement is strong. Otherwise, some manufacturers follow free-rider strategies. This article has immediate application to manufacturers' IS strategy and to government policy-makers considering investing in and/or structuring product recovery closed-loop supply chain processes within their jurisdictions. It also opens a potential stream of research concerning the role of IPRS to automate, informate and transform closed-loop supply chains for eco-efficiency. [ABSTRACT FROM PUBLISHER]

The market is changing from minute to minute nowadays. Increasing cooperation and pursuing of the optimal interest of the integrated supply chain system become more effective than acting alone in the face of competition. In this research, an integrated inventory policy between a single producer and a multi-buyer is developed. The model extends the research of Lin and Lin (2007, A cooperative inventory policy with deteriorating items for a two-echelon model. European Journal of Operational Research, 178 (1), 92–111) by changing the single-buyer system to the multi-buyer system. This problem is solved under the assumptions of equal replenishments and production cycles. The producer and buyers collaboratively intend to decrease their joint total cost of operation. We consider the deterioration of items at all levels of producer, buyer and in-transport, and the backorders at buyer's level only. The algorithm to find the optimal solution is given, and Matlab and Maple software are used. A numerical example is also presented. [ABSTRACT FROM PUBLISHER]

The COVID-19 pandemic struck the world hard in early 2020, and we are still coping with the ramifications of the ongoing crisis. The most acute concerns deal with the gloomy economic impact of the pandemic. However, the crisis has also revealed severe shortcomings in the EU's approach to the security of supply. Many member states initially found themselves dealing with the crisis alone or lacking essential medical resources. Since the early stages, it has become evident that while security of supply has so far been a matter of national decisions, the EU needs a comprehensive strategy to improve its crisis resilience. Finland has a long tradition of making a coordinated effort to ensure an adequate supply of items needed for emergencies. Thus, the Finnish model could provide the basis for a more inclusive and integrated EU-level security of supply. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to investigate how supply chains can become more resilient through innovation initiatives. It examines the expansion and deepening of relationships between buyers and suppliers and the facilitatory role of the government in this process. Design/methodology/approach: This study compares supply chains in the advanced manufacturing and food industries. It is based on qualitative research involving case studies and in-depth interviews with buyers, suppliers and facilitators from government. Findings: The study reveals that innovation is critical in building more resilient supply chains. It uncovers the importance of power distribution, coordination, communication, trust and commitment for innovation within these relationships. Practical implications: It provides implications about how best to develop effective buyer–supplier relationships through innovation and diversification, for marketing and purchasing managers, CEOs of manufacturing companies and suppliers and government players with responsibility for industry development and innovation. Originality/value: It advances the industrial buyer–supplier literature by extending the predominantly business-to-business supply chain perspective to include the role of government in supply chains and their innovation. [ABSTRACT FROM AUTHOR]

Purpose: This paper develops a conceptual framework to analyze the impact of a supply chain network (SCN) structure on relationship management strategies (RMS) that focal firms apply to manage sustainability issues within the SCN. Design/methodology/approach: This paper is based on a comprehensive review and analysis of the industrial marketing and purchasing (IMP), sustainable supply chain management (SSCM), and SCN literature. Findings: The conceptual framework expands the network perspective in the SSCM context by considering the important role of the SCN structure in the firm's decision-making process. Four factors (dependency, distance, power, and transparency) were found that are useful in conceptualizing the SCN structure. The conceptual framework also categorizes various sustainability practices into four RMS (noncompliance, transactional, dictatorial, and collaborative), which are needed to make an SCN more sustainable. In addition, 16 propositions are developed based on how firms may identify the most effective RMS to implement appropriate sustainability practices through examining their SCN structure. Research limitations/implications: The conceptual framework, developed as a result of a comprehensive review of the literature, led to the development of 16 propositions, which can assist in furthering a research agenda on RMS to diffuse various sustainability practices within SCN structures. Originality/value: The relationship between SCN structure and RMS in the sustainability context remains an under-researched but emerging area of interest. This paper leverages existing research to develop a conceptual framework suitable for empirical testing. [ABSTRACT FROM AUTHOR]

The paper describes variance amplification of orders in a car manufacturing context. Demand fluctuation in inter-company supply chains has been well described in literature over many years. The specific contribution of this paper is to examine the cyclical boom-and-bust behaviour, commonly known as the bullwhip effect, inside the plant boundaries of a single company with the help of system dynamics modelling. To gain insight into this phenomenon we will first perform an extensive literature review on the subject of factory relevant internal bullwhip. Based on these results we illustrate through a real-life car assembly operation the existence of internal bullwhip. Finally we conclude with a discussion of our results and future research opportunities. [ABSTRACT FROM PUBLISHER]

This paper studies the flow of material between two vendors and a buyer and develops alternative delivery structures with the intention of minimising total system costs. The proposed delivery structures employ alternative design features and give varying degrees of flexibility to the system as to the emergence of inventory and the allocation of inventory among both stages of the supply chain. The delivery structures are compared in a numerical study and it is shown that an increasing degree of flexibility in the delivery structure always leads to lower total system costs. Further, contextual factors that influence relative performance advantages of the structures are identified. [ABSTRACT FROM AUTHOR]

This paper addresses a crucial objective of the strategic purchasing function in supply chains, i.e. optimal supplier selection. We present a hierarchical extension of the data envelopment analysis (DEA), the most widespread method for supplier rating in the literature, for application in a multiple sourcing strategy context. The proposed hierarchical technique is based on three levels. First, a modified DEA approach is used to evaluate the efficiency of each supplier according to some criteria proposed by the buyer. Second, the well known technique for order preference by similarities to ideal solution (TOPSIS) is applied to rank the maximally efficient suppliers given by the previous step. Third and finally, a linear programming problem is stated and solved to find the quantities to order from each maximally efficient supplier in the multiple sourcing context. The presented approach is able to straightforwardly discern between efficient and inefficient partners, avoid the confusion between efficient and effective suppliers and split the supply in a multiple sourcing context. The hierarchical model is applied to the supply of a C class component to show its robustness and effectiveness, while comparing it with the DEA and TOPSIS approaches. [ABSTRACT FROM AUTHOR]

The responsiveness and efficiency of distributed and multi-echelon supply chains are increasingly reliant upon reduced cycle times within forward and reverse logistics operations. Within the high-tech industry, Reverse Logistics (RL) in the form of end-of-life, stock balancing, defective/warranty, recycle, and re-use product returns, is particularly important owing to the complexity and dependency that exist throughout the extended supply chain in order to maintain brand loyalty and customer satisfaction (source, OEM vendors and end customers alike). RL is fast becoming a strategy to acquire an organisational competitive advantage, making the quest to exploit such a function a premeditated decision. The introduction of Third-Party Logistics (3PL) providers has become a necessity for those supply-chain operations where issues of cost and risk mitigation need to be balanced with agility and responsiveness. This paper develops a conceptual framework of the factors influencing Reverse 3PL based upon Information Systems (IS) and associated Resource Commitment (RC) factors. The framework is then tested using a mixed-method research based approach using a 3PL organisation based in Thailand. The research findings reveal that among the proposed factors, IS- and RC-based operating performance, resource cost-effectiveness and RC (at financial, managerial and technological levels in the firm) were deemed to have a stronger positive relationship and input into reverse 3PL operations for the firm in context. The model is validated using the techniques of System Dynamics and Fuzzy Cognitive Mapping. [ABSTRACT FROM AUTHOR]