Inventory misplacement and demand forecast error in the supply chain: profitable RFID strategies under wholesale and buy-back contracts

We investigate RFID adoption strategies under wholesale price and buy-back contracts in a supply chain with one manufacturer and one retailer who faces inventory misplacement and demand forecast error. RFID can alleviate the misplacement problem, and can reduce demand forecast error by shortening order lead time. By a newsvendor model, we characterise the optimal contract terms in the supply chain without and with RFID adoption, respectively. We further analyse how the contract terms depend on RFID-related parameters (e.g. salable rate and demand forecast error). We find that both without and with RFID, the wholesale price contract will lead to the double marginalisation problem, while the buy-back contract can coordinate the supply chain. We show that the supply chain adopts RFID if and only if the tagging cost is below a threshold; the threshold is in negative correlation to the demand forecast error. The supply chain is more willing to adopt RFID under the buy-back contract than under the wholesale price contract. RFID adoption can sometimes lessen the double marginalisation problem under the wholesale price contract, improving the supply chain efficiency. A smaller RFID tagging cost or a reduced forecast error do not necessarily lead to higher supply chain efficiency.     

Simplicity is beauty: pricing coordination in two-product supply chains with simplest contracts under voluntary compliance

Pricing is an important topic in supply chains. In this paper, we explore the coordination challenge with the use of simplest contracts for the case with two products. To be specific, we consider a single-manufacturer single-retailer make-to-order supply chain. In the base model, we consider the case when the product demands are independent and derive the optimal pricing decisions under a decentralised setting. Comparing with the centralised setting, we show that double marginalisation in the decentralised setting reduces the supply chain efficiency by 25%. We then find that the simpler contracts such as the three-parameter two-part tariff (3P-TT) contract and the three-parameter revenue sharing (3P-RS) contract can coordinate the two-product supply chain. We extend the analysis in two cases: (i) the case when the products are substitutable and (ii) the case when the retailer is risk averse, and show that both the 3P-TT and 3P-RS contracts can coordinate the respective supply chain. We also find that the degrees of product substitution and retailer’s risk averse significantly influence the supply chain performance.     

不同碳排放政策下考虑碳减排投入的供应链协调

在考虑碳减排技术投入下,为了实现不同碳排放政策下的供应链协调,通过建立集中式和分散式决策下的供应链模型,根据供应链协调的条件,给出了供应链实现协调的契约形式及契约参数。为了确定不同碳排放政策下的最优订货量和最优碳减排率,通过对博弈模型进行优化,提出了具体的求解方法。数值计算结果表明：随着碳排放政策的变化,供应链的最优订货量、最优碳减排率和供应链的利润也将发生相应的变化,而生产成本、缺货损失、产品残值、销售价格、批发价格等参数变化不仅会影响最优订货量、最优碳减排率和供应链利润,还会影响收益共享比例、碳减排技术投入和碳排放成本的分摊比例。     

供应不可靠时下游企业投资上游企业的供应链协调

考虑由一个上游企业和一个下游企业构成的供应链,其中上游企业的供货是不可靠的。假定下游企业可以通过向上游企业投资提高其供货的可靠性。首先给出了批发价格契约下各节点企业的最优策略。分析发现:下游企业的投资虽然可以降低双重边际效应,但由于投资所导致的供应链系统利润增加的部分不能完全被下游企业拥有,下游企业投资的积极性可能会受影响;随后,通过引入由收益分享策略和成本分担策略构成的组合策略设计了协调机制,并指出该协调机制能使上下游企业实现双赢。     

Integrating carbon market uncertainties into a sustainable manufacturing investment decision: a Bayesian NPV approach

Net present value (NPV) is a widely used technique in capital budgeting. In this paper, we develop a Bayesian NPV framework using a Gibbs sampler. This approach allows decision-makers to integrate their knowledge, past experience, and uncertain and volatile cash flows from carbon emissions credits into decisions dealing with energy efficient, sustainable manufacturing equipment. The results indicate NPV is highly dependent on the nature of volatility and uncertainty of the cash flows. Without inclusion of this information through the Bayesian framework results, NPV becomes overstated, and thus it may provide biased guidance for the investment. The results developed in this paper further show that the frequency of very high and low cash flows and to a lesser degree their variability adversely impacts NPV. The results may also explain reasons for the economic phenomenon known as the energy efficiency gap.     

Optimal cycle time and inventory decisions in coordinated and non-coordinated two-echelon inventory system under inflation and time value of money

In this paper, a mathematical model is developed for a coordinated and non-coordinated two-echelon inventory system comprising of a single manufacturer and a single retailer. The objective of the model is to demonstrate the optimality of cycle time and inventory decisions under the phenomena of different inflation rates at the manufacturer and retailer points. Also, it is aimed at determining the annual net revenue of the supply chain (SC). In the proposed model, the present value of the inflated ordering/set-up costs, purchase/unit costs, carrying costs and the gross revenue is computed for the retailer, manufacturer and the SC. A numerical example is devised to illustrate the optimality of decision variables and the objective function. Also, the sensitivity analysis is carried out. Results show that the present value of the annual net revenue of the retailer, manufacturer and SC decreases with increased inflation rate at the retailer and decreased inflation rate at the manufacturer simultaneously.     

Cost and Waste Comparison of Reusable and Disposable Shipping Containers for Cut Flowers

Logistics is a fundamental component of the post‐harvest processes, especially in the floricultural sector where the products have to be marketed in short times after the cutting because of their fragility. In the previous years, new approaches to efficiently manage the logistical function and to reduce costs and environmental impacts have been consolidated. In this paper, the investments for two different containers for flower transportation, one disposable and one reusable, are compared, considering a specific supply chain located in central Italy. All data were provided by stakeholders. These were divided into four groups: purchasing, administration, logistical and disposal costs. For the reusable containers, a reverse logistical system, to collect the return components, was hypothesised by using the network analysis tool of the geographic information system (GIS). Results show that the use of a reusable system, which assures a production with less waste and less environmental pressures, is also economically advantageous. Reusable containers involve an initial investment but became cheaper from the second year of the investment and also remained convenient, considering all the costs related to the return collection of the items. Reusable system permits a financial advantage of approximately 140 k€ in total and 21 k€ for each year, considering all the nine years of analysis. Logistics is responsible of the great contribution of total cost in both the reusable and the disposable container (88% and 76%), probably because of the high fragmentation in the delivery service to sale points. Reverse logistics represents the 17% of the reusable container total costs. Copyright © 2011 John Wiley & Sons, Ltd.     

A risk-based optimisation for pavement preventative maintenance with probabilistic LCCA: a Chinese case

Compared to major structural repair or even replacement, preventative preservation of in-service pavements has been more popular in engineering practices, but recently, pavement preventative maintenance (PPM) has become more complex in China as the competition for pavement preservation funds has grown and the need to justify decisions has increased. Therefore, the life cycle cost analysis (LCCA) has increasingly attracted attention from transportation agencies. However, most of previous studies were conducted deterministically or only focused on a single factor, while PPM is apparently affected by many potential sources of uncertainty. The risk-based analysis to investigate potential risks and combined effects of multiple factors is a necessary component of PPM. This paper aims at presenting a risk-based PPM with the probabilistic LCCA for a Chinese highway case. Major analysis variables of different range are examined to probe risks of different scenarios, investigate combined effects of multiple variables and identify an optimal preservation strategy.     

Rewards-supply planning under option contracts in managing coalition loyalty programmes

We examine the problem of planning the supply of rewards in coalition loyalty programmes considering that the buyer–supplier relationships with commercial partners are governed by option contracts rather than wholesale price contracts similar to what is commonly used in practice. We develop a two-stage stochastic linear programme model with simple recourse which considers uncertain demand requirements, limited reward purchasing budgets, multiple programme partners of various sizes, point-liability control targets and overall profitability. A sampling average approximation scheme is used to solve the model. Numerical experiments show that option contracts perform better than wholesale price contracts when redemption demand uncertainty is high and the number of redemption partners is large. The results also suggest that the common practice of increasing redemption capacities is not the most effective way to cope with demand uncertainties. Programmes that reduce redemption demand variability and/or create better contracting structures are more promising in improving points-liability, redemption budget spending and overall profitability than traditional approaches.     

Contract negotiation and risk preferences in dual-channel supply chain coordination

This study employs profit-sharing contracts to coordinate dual-channel supply chains and examines the selection of profit-sharing parameters and the allocation of extra system profit gained from coordination. We characterise the Pareto-optimal contracts for the two- and three-stage dual-channel supply chains, by developing and maximising system utility function related to risk preferences and negotiating power. Under the optimal profit-sharing parameter in a two-stage supply chain, both members are reluctant to cooperate; however, in a three-stage supply chain, under the optimal two profit-sharing parameters selected by optimising the system utility function, the retailer is always reluctant to cooperate, but the distributor or the supplier may have incentives to deviate from cooperation. In this case, the distributor and the supplier will negotiate again as in a two-stage supply chain so that all three members can benefit from coordination with profit-sharing contracts. Besides acting independently, the distributor, in the process of contract negotiation, may choose to form an alliance with the upstream supplier or the downstream retailer, which means the relationship among the three members involving profit allocation after coordination is quite different from that for a two-stage supply chain and is not necessarily interest-contrary. In the contract negotiation, in any kind of scenario, risk aversion and negotiation power have a significant impact on the selection of optimal profit-sharing parameters and the allocation of extra system profit. One member’s risk aversion or its negotiation power may be advantageous to the other. Mathematical examples are illustrated to clarify the contract negotiation process.     

突发公共卫生事件下医疗防护用品供应链协调

针对一个生产商-第三方物流提供商-零售商组成的医疗防护用品三级供应链,在考虑随机性需求的基础上,利用收益共享契约来探讨突发事件对三级供应链的影响。研究表明：突发事件下,供应链成员企业通过调整收益共享契约中转移支付的产品批发价格及物流服务价格参数,可使收益共享契约具有抗突发事件性,同时也使得供应链收益在生产商、物流商和零售商之间重新分配,实现了供应链企业共赢。     

零售商主导的供应商创新投入的模糊期权契约

考虑由一个供应商和一个零售商组成的两级供应链,在此供应链系统中建立了一种新型的期权契约机制。在此契约中,零售商处于供应链的领导地位,而供应商处于追随地位,零售商提出期权契约而供应商购买期权。在模糊环境下零售商和供应商之间通过共同分担供应商的创新投入成本的期权契约进行协调,首次提出了可信性函数的反函数表达式及其数学期望的表达式,并通过此期望值函数对此问题进行了优化。研究表明,创新投入共担的期权契约能够实现零售商主导下的供应链的协调。通过仿真验证了研究结论。     

Capacity investment and the value of operational flexibility in manufacturing systems with product blending

A distinct feature of process industries such as food, chemical and consumer packaged goods is the blending of intermediates into finished goods. In the context of such manufacturing systems the levels of different inputs that can be blended to process a final good define the range of flexibility. Likewise, the cost for using (blending) different inputs defines the mobility element of flexibility. In this paper, we investigate capacity investment and the value of flexibility in the presence of such product blending constraints. We are motivated by recent case studies of food manufacturers, in particular, those manufacturers that seek to increase flexibility via blending of intermediates. We analyse stochastic programs under demand uncertainty of such manufacturing systems. We provide analytical insights into trade-offs when range and mobility are interdependent. Our analytical work gives structural insights into subtle complementarity and substitution effects between dedicated and shared resources in the presence of blending. We analytically show that there is a degradation in the cost performance of such systems with an increase in correlation. We characterise the optimal blending fraction that balances the benefits of higher range with higher costs (lower mobility). Our numerical work shows that a moderate level of blending can significantly improve flexibility and that well-known guidelines for designing limited flexibility change in the presence of blending. For example, blending, even if optimally designed, weakens the appeal of chaining configurations. Overall our work guides resource configuration in industries where product blending is an integral part of the production process.     

Exploring political risk in offshoring engagements

This research focuses on the analysis of political risk in the context of offshoring decisions. The study uses the Repertory Grid Technique, which entails a series of semi-structured interviews exploring key political risk experiences across offshoring engagements. The research extends the spectrum of political risk analysis in the context of offshoring engagements, and explores the varied impact of political risk across business activity types. The research identifies five key political risks affecting offshoring engagements and highlights the moderating effect of specific offshoring activity types Business Process Outsourcing, Information Technology Outsourcing or Knowledge Process Outsourcing on political risk implications. The research explores the conditioning effect of activity specific exposure to political risk and enhances the explanatory ability of the Transaction Cost Economics constructs, offering a novel operationalisation of the political risk component of external uncertainty. From a practical perspective, the research highlights the need for developing managerial tools to improve monitoring and identification of risks. The key practical contribution is the development of differentiated political risk typologies that can capture the nuances of external risks in offshoring, allowing for more accurate risk assessment of offshoring decisions.     

延迟制造技术在制造业中的应用研究

在分析延迟制造技术的理论基础上，提出基于延迟制造技术的供应链结构模型，并结合延迟制造技术理论与某企业具体条件和特点，探讨延迟制造技术在该制造业中实施的方法和效果。     

供应链信息共享技术的成本效益分析

介绍了主要的信息共享技术,并且对供应链信息共享技术进行了成本效益分析,包括分析步骤、成本效益组成以及分析方法等。     

时间敏感需求下的制造供应链研发协调研究

考虑由一个总装制造商和一个零部件供应商组成的制造供应链,在分别分析了集中系统和分散系统的研发决策的基础上,提出了研发费用分担机制,用博弈论的方法分析了供应商的研发投入决策和制造商的分担政策,探讨了博弈均衡存在的条件和供应链的系统协调性,得出了供应链Pareto有效研发合作方案。研究发现,研发费用分担机制可以刺激研发投入增加,不仅使供应链的利润得到优化,而且可以实现双赢;但这种激励还不足以使研发投入达到最优水平,不能实现供应链的Pareto最优。最后的赋值分析验证了理论分析得到的结论。     

农业高新技术与21世纪涉农供应链的战略性再造

21世纪农业高新技术的发展为涉农供应链提供了战略性再造的契机。它能够营造涉农供应链的高度稳定、促进其柔性机制塑造，提高与时间竞争能力，显著改善一体化涉农物流，并强力支持涉农供应链的基本竞争战略及其高度集成化进程。     

零售商主导下考虑增值物流服务的供应链期权契约协调

在零售商为主导者,生产商为跟随者且承担物流服务的模式下,考虑物流服务价值增值,建立了物流服务水平影响市场需求情形下的两级Stackelberg博弈模型。研究表明,分散决策下生产商的生产量和物流服务水平均低于集中决策下的结果,引入期权契约和物流服务成本共担契约可同时协调生产量和物流服务水平。最后,通过算例验证了上述契约组合的可行性,改变物流服务成本分担比例的取值,分析了零售商期权价格、期望利润以及第一次订购产品量的变化情况。     

Preventing failure in IT-enabled systems for supply chain management

Supply chain management (SCM) emphasises the overall and long-term benefit of all parties on the chain through cooperation and information sharing. This signifies the importance of communication and the application of IT-enabled systems in SCM. A supply chain management information system (SCMIS) is usually user-interfaced and designed to provide information and information processing capability to support the strategy, operations, management analysis, and decision-making functions in an organisation's supply network. SCMIS provides high quality, relevant and timely information flow that effectively supports decision-making for inventory replenishment, capacity activation, and for synchronising material flows at all tiers within the supply chain. In recent years, there have been some efforts on designing efficient information systems for supply chain management; but many of them have led to failure. Using a critical failure factor (CFF) approach and based on a perfect study, we investigate this crucial issue in-depth and put forward feasible solutions regarding failure prevention in such systems throughout this article. Three main purposes of this paper are to: (1) identify SCMIS and its characteristics, (2) introduce and categorise the critical failure factors of SCM and SCMIS, and (3) investigate the explanatory power of these CFFs on the performance of supply channel processes performed through SCMIS.