The impacts of piracy and supply chain contracts on digital music channel performance

We explore the impact of piracy on digital music supply chain profitability under different contract arrangements. Consumers' piracy risk cost is divided into two cases: 1) linear piracy cost and 2) fixed piracy cost. We also analyze two contract types: 1) fixed fee contract and 2) per song contract. Our findings indicate that the magnitude of profit loss depends on the type of consumers' piracy risk cost and the type of contract. In addition, changes in consumers' piracy risk cost change the distribution of the profit between the record label and the retailer. As the investment in piracy controls increases, the retailer keeps a larger share of the profit surplus leaving the record label with a smaller share. We demonstrate that a fixed fee full transfer contract will always coordinate the supply chain, and the profitability further increases as 1) market size increases, 2) piracy risk cost increases, and 3) marginal cost decreases.     

Optimal configuration of cluster supply chains with augmented Lagrange coordination

Enterprises in an industrial cluster could dynamically alliance in the form of cluster supply chains to share inner-cluster resources and services, and respond to the ever-fluctuating customer demands in a cost-effective way. However, an effective and feasible method enabling such dynamic cluster supply chain configuration (CSCC) lags behind practice due to the conflict of interests. Researchers are designing All-in-One theoretic models to optimize CSCC with the assumed decision details of all enterprises, while in fact clustered enterprises are seeking effective decentralized decision mechanisms which protect their decision autonomy in the frequently re-configured CSC. A newly emerged multi-disciplinary optimization method, Augmented Lagrangian Coordination (ALC), which supports the open-structure collaboration with strict optimization convergence, is thoroughly investigated in this paper and applied to solve the conflict. Through a complete analysis of CSC’s configuration policies in typical stages, a generic CSCC model is proposed and then partitioned into an ALC-based decentralized decision model by the typical decision autonomy distribution in clusters. Clustered enterprises collaborate vertically and laterally along the ALC model through multi-dimensional couplings to achieve the overall consistency and optimality. Results have proved the effectiveness of ALC for CSCC problem. A set of sensitivity analysis is also conducted to find out the condition in which an order has to be fulfilled in a CSC and the most appropriate configuration.     

Coordination-based inventory management for deteriorating items in a two-echelon supply chain with profit sharing

This study develops a model for inventory management consisting of a two-echelon supply chain (SC) with profit sharing and deteriorating items. The retailer and the supplier act as the leader and follower, in which the supplier faces a huge setup cost and economic order quantity ordering strategy. The market demand is affected by the sale price of the product, and the inventory has a deterioration rate following a Weibull distribution. The retailer executes three profit-sharing mechanisms to motivate the supplier to participate in SC optimisation and to extend the life cycle of the product. A search algorithm is developed to determine the solutions as using the profit-sharing mechanisms. The outcomes from numerical experiments demonstrate the profitability of the proposed model.     

线性时变需求的二级供应链协调模型

考虑由一个供应商和一个零售商构成的二级供应链系统,在线性时变需求、产品的零售价格与其存储时间有关、货栈容量有限且不允许缺货的情形下,研究了供应商如何利用全数量折扣计划来激励零售商合作从而实现自身利润最大化和供应链系统完美协调的问题。从理论上证明和分析了模型最优解的存在性,同时提供了求解最优解的简单方法,并通过算例对上述结论进行佐证。     

Electronic supply chains: Status & perspective

The area of e-commerce based supply chains (or e-supply chains) has received significant attention in the last two decades. Despite the high level of activity, the most recent reviews on this topic date back to the beginning of this century. In this paper, we analyzed the state of e-supply chain research published during January 2000–January 2015 AD, covering 165 articles from 47 ISI indexed journals. The analysis is performed using a five-dimensional framework comprising Topic-of-Study, Unit-of-Analysis, Research Perspective, Industry Type, and Research Method. Within these dimensions, Topic-of-Study plays a pivotal role, whereas the other four dimensions are analyzed around its sub-classification scheme. Our main objective is to establish a broader interdisciplinary understanding of the e-supply chain research domain, and to identify trends and gaps in contemporary e-supply chain theory and practice. The findings indicate that problems are addressed from different perspectives with varying levels of interest from researchers belonging to several academic disciplines including business, economics, engineering and social sciences. Our analysis also identified two distinct periods (2000–2006 and 2007 onwards) with different foci of research attention. The problems that received significant attention in the earlier period include innovation, adoption and barriers, and supply chain integration; while in the latter period, the focus seemed to have shifted towards supply chain integration and collaboration issues. Problems that received minimum interest across the two periods include customer relationship, economic and environmental impact.     

A study on inventory replenishment policies in a two-echelon supply chain system

Inventory control plays an important role in supply chain management. Properly controlled inventory can satisfy customers’ demands, smooth the production plans, and reduce the operation costs; yet failing to budget the inventory expenses may lead to serious consequences. The bullwhip effect, observed in many supply chain management cases, causes excessive inventory due to information distortion, i.e. the order amount is exaggerated while a minor demand variation occurs, and the information amplified dramatically as the supply chain moves to the upstream. In this paper, one of the main causes of bullwhip effect, order batching, is considered. A simplified two-echelon supply chain system, with one supplier and one retailer that can choose different replenishment policies, is used as a demonstration. Two types of inventory replenishment methods are considered: the traditional methods (the event-triggered and the time-triggered ordering policies), and the statistical process control (SPC) based replenishment method. The results show that the latter outperforms the traditional method in the categories of inventory variation, and in the number of backlog when the fill-rate of the prior model is set to be 99%. This research provides a different approach to inventory cost-down other than the common methods like: information sharing, order batch cutting, and lead time reduction. By choosing a suitable replenishment policy, the number of backorder and the cost of inventory can be reduced.     

Intelligent evaluation of supplier bids using a hybrid technique in distributed supply chains

The main idea of this research is to devise the smart module to pick the best supplier bid(s) automatically. The hybrid model is composed of three useful tools: fuzzy logic, AHP, and QFD. The approach has been carefully implemented and verified via a real-world case study in a medium-to-large industry manufacturing vehicle tires and other rubber products. A collection of 12 assessment criteria classified into two categories have been considered. Eight factors are derived from customer suggestions and the other four are design specifications required to manufacture the product. The main outcomes are: a hybrid autonomous model to evaluate supplier bids without direct human intervention; devising a hybrid three-module method and overcoming complexity of computations in resulting algorithm by means of agents; outlining the best criteria to assess suppliers; evaluating the suppliers based on voice of customer during all stages of the process; and discussing analysis, design, and implementation issues of the evaluation agent. The paper includes implications for development of an integrated total system for supply chain coordination. The most important advantages of this work over earlier researches on supplier selection are: implementation of an autonomous assessment mechanism using intelligent agents for the first time, making the best out of three widely applied methodologies all at once, evaluation process mainly based on features of customer order, coordination of supply job based on a bidding system, and portal-mediated operation and control.     

Supporting agile supply chains using a service-oriented shop floor

The globalized nature of current business environments led to the emergence of new networked enterprise organizational paradigms (supply chains, extended enterprises, virtual enterprises, collaborative networks, etc.) to meet changing requirements and tackle profitable but volatile opportunities overall agility is required.Eventually the shop floor will have to react and accommodate (re)adjustments in the supply chain making it an important piece in the competitiveness puzzle. So far, the research focus has been in high level aspects of supply chain management and the integration of shop floor activities in the process has been left relatively unattended.However, shop floor data is increasingly required in business tools that support decision making. In this context, failing to support agility at shop floor level can compromise the agility of the supply chain.Recent developments in networked information technologies and embedded devices allow enabling intelligence in shop floor rendering it an active and live entity that further enhances the dynamics of the supply chain.The goal of the present work, supported by an implemented test case in the assembly domain, is to demonstrate how one is able to seamless integrate the shop floor with external tools and achieve a highly reconfigurable environment that adapts to changing production requirements and disturbances using service-oriented technology.     

两级供应链减排与促销的合作策略研究

首先假设在由零售商主导的供应链中, 制造商的低碳声誉和零售商的促销都能增加产品的需求, 减排对制造商的低碳声誉有正面影响; 然后运用微分博弈理论, 比较了不合作、成本分担契约以及合作3 个契约对供应链成员的影响. 研究发现, 制造商和零售商的促销及减排水平在合作契约下最高, 但供应链的总价值在合作契约下最大是有条件的. 当存在合作价值时, 为了使制造商和零售商获得更多的价值设计了利润共享契约.     

A framework for evaluation of coordination by contracts: A case of two-level supply chains

A supply chain consists of disparate but inter-dependent members who are dependent on each other to manage various resources (such as inventory, money and information). The conflicting objectives and lack of coordination between these members may often cause uncertainties in supply and demand. Coordination may help in managing inter-dependencies and reducing uncertainties. Typically, a mechanism is required to streamline the whole supply chain and motivate all the members to be a part of the entire supply chain for sharing risks and rewards through supply chain contracts.The objective of this paper is to explore the applicability and benefits of the contracts. A two-phase framework is proposed consisting of a decision support tool and a graph-theoretic model for evaluation of coordination in a two-level supply chain. In Phase I, an analytical model is proposed based on the classical newsboy problem. Various contract mechanisms have been explored through a decision support tool based on the simulation. The effectiveness of these contracts is evaluated through a graph-theoretic model in Phase II. It is expected that by designing the contracts as per the requirements of the supply chain members as well as the whole supply chain, supply chain performance may be improved.     

基于期权与现货市场的供应链契约式协调的研究

通过期权机制,建立了电子市场与传统契约市场共存下的供应链中各决策主体的决策模型,求得协调状况下供应商的最优价格政策、产能决策和零售商的最优购买决策,数值实例对各决策模型中的影响因素进行了敏感性分析,进一步验证了结论的有效性．     

A new network epsilon-based DEA model for supply chain performance evaluation

Supply chain performance evaluation problems are inherently complex problems with multilayered internal linking activities and multiple entities. Data Envelopment Analysis (DEA) has been used to evaluate the relative performance of organizational units called Decision Making Units (DMUs). However, the conventional DEA models cannot take into consideration the complex nature of supply chains with internal linking activities. Network DEA models using radial measures of efficiency are used for supply chain performance evaluation problems. However, these models are not suitable for problems where radial and non-radial inputs and outputs must be considered simultaneously. DEA models using Epsilon-Based Measures (EBMs) of efficiency are proposed for a simultaneous consideration of radial and non-radial inputs and outputs. We extend the EBM model and propose a new Network EBM (NEBM) model. The proposed NEBM model combines the radial and non-radial measures of efficiency into a unified framework for solving network DEA problems. A case study is presented to exhibit the efficacy of the procedures and to demonstrate the applicability of the proposed method to a supply chain performance evaluation problem in the semiconductor industry.     

Multi-tag and multi-owner RFID ownership transfer in supply chains

In any supply chain, there is a high likelihood for individual objects to change ownership at least once in their lifetime. As RFID tags enter the supply chain, these RFID-tagged objects should ideally be able to seamlessly accommodate ownership transfer issues while also accomplishing their primary intended purpose. Physical ownership transfer does not translate to strict ownership transfer in the presence of RFID tags given the wireless nature of communication with these tags. Moreover, whereas existing protocols implicitly assume a single tag that is owned by a single entity, it is not uncommon to encounter scenarios where tag ownership is shared among multiple entities. A dual of this is the case of an object with multiple tags. We consider ownership transfer scenarios for shared ownership transfer and single object with multiple RFID tags. In the multiple-tagged object case, we consider the possibility where objects gain and lose tags over time. We also present a protocol for simultaneous transfer of ownership of multiple tags between owners. Since ownership transfer without a trusted third party (TTP) is difficult to achieve, we propose a shared ownership sharing protocol and evaluate its properties.     

Optimal decisions for a two-echelon supply chain with capacity and demand information

Due to the applications of Internet of Things and big data in the Industry 4.0 context, more information in and out of a smart factory can be collected and shared between manufacturers and retailers. In this study, we consider two types of information that can be available in a supply chain consisting of a manufacturer and a retailer in Industry 4.0: the capacity information for the later rush production and the demand information shared between the retailer and manufacturer. In the supply chain, the manufacturer provides two orders with maximum limits by using a capacitated normal production and two capacitated rush production modes. To study the effects of the information, we investigate the optimal decisions and profits for the supply chain with and without the capacity information and demand information sharing. In addition, we propose a coordination mechanism for the supply chain with both the capacity information and demand information sharing. The coordination mechanism does not only rely on cost parameters, but also on the capacity and demand information. The numerical examples show that the supply chain profit can be improved by as large as 16.76% in the coordinated system, compared with the original system without the capacity information and demand information sharing.     

基于WTP差异化的再制造闭环供应链利益协调机制

考虑到消费者对新产品和再制造产品支付意愿的差异, 分别建立了分散决策和集中决策下多周期再制造闭环供应链的决策模型, 得出了各供应链成员的最优决策, 通过shapley值法来确定利益协调机制, 并利用数值仿真对模型进行求解和分析。研究结果表明, 分散决策存在效益缺失, 中间商的减少可有效提高供应链系统的效益; 可通过shapley值对再制造闭环供应链的利益进行合理有效的分配。     

A flexible agent system for change adaptation in supply chains

The importance of supply chain management is increasing with globalization and the advancement of electronic business. Supply chains are dynamic due to frequent changes in suppliers, customers, and products. However, information systems for supply chains are not flexible enough to adapt to the changes, requiring high cost and time for re-implementation and re-customization. This paper suggests a flexible agent system for supply chains that can adapt to the changes in transactions introduced by new products or new trading partners. The flexible agent system consists of an interpretable conversation policy model, a procedure for exchanging new conversation policies, and a mechanism for actual transactions with newly acquired conversation policies. By using the flexible agent system, formation of supply chains becomes more robust to the dynamic changes. To show how the approach can be realized, a PC supply chain application is illustrated with a prototype agent platform.     

A statistical tolerancing approach for design of synchronized supply chains

Supply chain (SC) can be visualized as a means to fulfilling the customer's requirement with the objective to maximize the overall value generated. With the rapid change of world economy, firms need to deploy alternative methodologies to improve the responsiveness of SC. In this regard, one important issue is the synchronization and co-ordination of supply chain network (SCN). In order to ensure the dispatch of finished product to the customer, with in customers specified delivery window, with a fierce high probability, the delivery performance of any SCN is to be minimized by forcing the work in the system. These requirements can be achieved by SC coordination, where timing of the actions performed by each of the business entities must be perfectly synchronized in SCN.This research is first of its kind where a probabilistic model is conceptualized to allocate the tolerances on lead times of internal business processes of a SCN. Various linear and nonlinear constraints have been considered with an end goal of minimizing the total cost of given network. In the proposed approach, synchronization among the members of SC has been achieved in the similar fashion as that of tolerance allocation on mechanical assemblies.The effectiveness of the proposed model is illustrated with a case study. The probabilistic model for ensuring synchronization shows much promise for improving the entire performance of network in terms of greater profit, speed, flexibility, quality, and product development etc., in a long run manufacturing enterprise.     

Coordinating a two-level supply chain with delay in payments and profit sharing

Achieving effective coordination among suppliers and retailers has become a pertinent research issue in supply chain management. Channel coordination is a joint decision policy achieved by a supplier(s) and a retailer(s) characterized by an agreement on the order quantity and the trade credit scenario (e.g., quantity discounts, delay in payments). This paper proposes a centralized model where players in a two-level (supplier–retailer) supply chain coordinate their orders to minimize their local costs and that of the chain. In the proposed supply chain model the permissible delay in payments is considered as a decision variable and it is adopted as a trade credit scenario to coordinate the order quantity between the two-levels. Computational results indicate that with coordination, the retailer orders in larger quantities than its economic order quantity, with savings to either both players, or to one in the supply chain. Moreover, a profit-sharing scenario for the distribution of generated net savings among the players in the supply chain is presented. Analytical and experimental results are presented and discussed to demonstrate the effectiveness of the proposed model.     

A typology of the situations of cooperation in supply chains

Pushed by globalization and its consequent increased competition, supply chain managers have understood the importance of information sharing, joint decision-making and cooperation across supply chains. Therefore, how to synchronize local activities through global processes and how to establish a collaborative supply chain relationship are actual difficulties that supply chain members have to address. In this context, this paper suggests a model of the situations of cooperation in supply chains for coping with real industrial situations, based on the analysis of the limitations of previous models. It is shown how the suggested model may allow to identify dysfunctions in the cooperation process, especially when both large and small companies are involved, and can also be used to describe and monitor the possible evolution of the cooperation process. Finally, the model may help to specify the way information should be efficiently processed all along a supply chain, depending on the situation of cooperation.     

The impact of reputation on supply chains. An analysis of permanent and discounted reputation

In long-term recurring contractual relationships, which are common in the B2B-arena, reputation and trust play a crucial role. This analysis investigates the joint impact of reputation and price-based ranking of suppliers on the material flow in the supply chain. Positive reputation proves to be a key factor in reaching dominating market positions, which illustrates the importance of building brand awareness in all stages of a supply chain. Through our simulation, it will be observed that the ranking of suppliers by reputation-based choice has a stabilizing effect on the material flow in the supply chain. A strong reputation component in the individual choice stimulates the formation of monopolies, while the discount of reputation imposes a countertendency on this effect. The Bullwhip Effect, another phenomenon that carries a countertendency to the reputation-based monopoly effect, is observed to be even stronger for members of tiers with a high fluctuation of order rates.