Supporting the collaborative decision-making process in an automotive supply chain with a multi-agent system

Collaborative initiatives such as collaborative design, collaborative planning and forecasting, and open collective innovation are increasingly accepted as approaches that can effectively support decision-making (DM) processes in a range of different industries. However, justifying and demonstrating the benefits of collaborative solutions remains a challenge and has been under-researched. Demonstrating the feasibility of implementing collaborative solutions as opposed to traditional, linear and transactional solutions is even less evident. The purpose of this paper is to conceive a collaborative solution that supports the multi-level DM process in a real, tree-based automotive supply chain environment. The hypothesis presented posits that by sharing information collaboratively, improvements in terms of the profit and service levels will be found within the supply chain and at every supply chain node.     

Green supply chain performance measurement using fuzzy ANP-based balanced scorecard: a collaborative decision-making approach

The purpose of this paper is to delineate a green supply chain (GSC) performance measurement framework using an intra-organisational collaborative decision-making (CDM) approach. A fuzzy analytic network process (ANP)-based green-balanced scorecard (GrBSc) has been used within the CDM approach to assist in arriving at a consistent, accurate and timely data flow across all cross-functional areas of a business. A green causal relationship is established and linked to the fuzzy ANP approach. The causal relationship involves organisational commitment, eco-design, GSC process, social performance and sustainable performance constructs. Sub-constructs and sub-sub-constructs are also identified and linked to the causal relationship to form a network. The fuzzy ANP approach suitably handles the vagueness of the linguistics information of the CDM approach. The CDM approach is implemented in a UK-based carpet-manufacturing firm. The performance measurement approach, in addition to the traditional financial performance and accounting measures, aids in firm’s decision-making with regard to the overall organisational goals. The implemented approach assists the firm in identifying further requirements of the collaborative data across the supply-cain and information about customers and markets. Overall, the CDM-based GrBSc approach assists managers in deciding if the suppliers’ performances meet the industry and environment standards with effective human resource.     

Eco-efficient supply chain networks: development of a design framework and application to a real case study

This paper presents a supply chain network design framework that is based on multi-objective mathematical programming and that can identify ‘eco-efficient’ configuration alternatives that are both efficient and ecologically sound. This work is original in that it encompasses the environmental impact of both transportation and warehousing activities. We apply the proposed framework to a real-life case study (i.e. Lindt & Sprüngli) for the distribution of chocolate products. The results show that cost-driven network optimisation may lead to beneficial effects for the environment and that a minor increase in distribution costs can be offset by a major improvement in environmental performance. This paper contributes to the body of knowledge on eco-efficient supply chain design and closes the missing link between model-based methods and empirical applied research. It also generates insights into the growing debate on the trade-off between the economic and environmental performance of supply chains, supporting organisations in the eco-efficient configuration of their supply chains.     

Implementation of customisation strategies in collaborative networks through an innovative Reference Framework

Consumer needs and expectations of specific target groups – such as elderly, obese, disabled or diabetic persons – are arising as challenging opportunities for European companies which are asked to supply innovative customised goods of high quality at affordable price. This is particularly true in the fashion as well as in the orthopaedic sector where there are many different competences to conjugate to offer dedicated products to the mentioned target groups. This paper aims at proposing a reference model to support companies in defining collaborative supply networks for customised production. In particular, this work describes the implementation of the developed model in a real case highlighting the changes implied at network level to address the need for fashionable and healthy products.     

A model-driven DSS architecture for delivery management in collaborative supply chains with lack of homogeneity in products

Uniform product deliveries are required in the ceramic, horticulture and leather sectors because customers require product homogeneity to use, present or consume them together. Some industries cannot prevent the lack of homogeneity in products in their manufacturing processes; hence, they cannot avoid non-uniform finished products arriving at their warehouses and, consequently, fragmentation of their stocks. Therefore, final uniform product amounts do not match planned production ones, which frequently makes serving previous committed orders with homogeneous quantities impossible. This paper proposes a model-driven decision support system (DSS) to help the person in charge of delivery management to reallocate the available real inventory to orders to satisfy homogenous customer requirements in a collaborative supply chain (SC). The DSS has been validated in a ceramic tile collaborative SC.     

A Structural model for the impact of supply chain relationship traits on project performance in construction

The objectives of this study are to discover the supply chain relationship traits in construction and their impact on the project performance. Using factor analysis technique, the supply chain relationship traits were determined to be collaboration in the supply chain, support and commitment to the supply chain, and sharing the benefits and risks. A two-step SEM model was then established to test the hypothesised relationship between the supply chain relationship traits and the project performance. The findings indicated that the supply chain relationship traits have a significant positive impact on the project performance. This study contributes to the body of knowledge relating to the construction supply chain management. The findings may help the parties to identify the attributes that may improve the relationships among them and result in better project performance.     

A Reply to Williamson's “Outsourcing …”

A recent article by Oliver Williamson essentially comprises a critique of supply chain management (SCM) from the perspective of his own field, transaction‐cost economics. Here is one reader's response. SCM can indeed be faulted for inflated rhetoric, among other sins. I believe, however, that the two fields have much to learn from each other.     

A visual planning solution to streamline the processes of hybrid cross-dockings

Cross-docking is a logistic strategy widely adopted both in manufacturing and distribution contexts. Despite the huge number of researches on this topic, most of them remain rather theoretical as they do not pay enough attention to operational aspects and daily functioning patterns of cross-dockings. This article aims at introducing a new focus for cross-docking research by proposing a visual planning solution to manage daily operation of a manufacturing cross-docking. By avoiding complex optimization algorithms and by adopting concepts belonging to the lean management theory, the article shows the potential of visual planning techniques to improve performance of cross-dockings. Starting from a specific industrial context, the shipping warehouse of an Italian company of the oil andand gas sector, a visual management methodology has been proposed to support the operation of cross-dockings. Although developed in a particular context, the proposed methodology and its underlying principles are to be considered general and potentially applicable to a wide range of cross-dockings. The methodology fully exploits an analytical tool, namely, the Safety Margin coefficientthat could be used for capacity planning purposes and to evaluate quantitatively the system performance at a given time instant.     

Fairness in Selling to the Newsvendor

This paper studies the impact of fairness concerns on supply chain performance (SCP) in the two‐party newsvendor setting. We extend prior fairness analysis to a wide range of demand distributions, and also allow the degree and definition of fairness to assume a broader range of preferences than those in prior literature. Contrary to prior literature, we find that if the retailer's ideal allocation to the supplier is not sufficiently large, regardless of demand variability, a fair‐minded retailer makes no difference to system efficiency when facing a traditional profit‐maximizing supplier. Only when the retailer's ideal allocation to the supplier is above a threshold can the retailer's fairness concern improve the system efficiency for sufficiently high demand uncertainty. In order for the retailer's fairness concern to improve expected profits of both parties compared to the traditional supply chain case (win–win), the demand uncertainty cannot be too low, the retailer is not very averse to disadvantageous inequity, and his ideal allocation to the supplier is within a specific range. If only the supplier is concerned for fairness, the results range from worsening to improving (but not coordinating) the system and a win–win situation is impossible. Finally, when both the supplier and retailer are fair‐minded, SCP is improved unless both parties prefer to allocate small portions of system profit to the other. Again, win–win will be achieved only when the demand uncertainty is sufficiently high, the retailer's ideal allocation is within a certain range, and he is not very averse to disadvantageous inequity.     

一个VMI环境下的协调合约及其抗突发事件性

本文通过在销售商主导的合约制定中引入惩罚函数,为不确定需求环境下供应商管理库存(VMI)提出一个新的合作合约,使供应商的存货量符合供应链利润最大的要求。该合约具有参数简单,管理费用低,并能将供应链的利润在供应商和销售商之间任意分配等优点。然后研究了该合约抗突发事件的能力,证明了如果突发事件导致供应商的生产费用变化,原合约仍然使供应链合作,合约具有一定的鲁棒性。若突发事件导致需求变化,则要对原来的合约作相应的修改。修改后的合约具有抗突发事件性。     

供应链中销售商不同竞争地位的比较研究

本文在确定性需求的假设下,基于销售商竞争地位的不同,对由一个制造商和两个供应商组成的供应链进行分析,得出了销售商谋求不同竞争地位应满足的不同条件,比较了不同竞争地位情况下相对应的社会福利、消费者剩余和产业利润等。     

Multiperiod Models with Capacities in Competitive Supply Chain

This paper considers a supply chain setting where several capacitated suppliers compete for orders from a single retailer in a multiperiod environment. At each period, the retailer places orders to the suppliers in response to the prices they announce. Each supplier has a fixed capacity. We consider a make‐to‐stock setting where the retailer can carry inventory. The retailer faces exogenous, price‐dependent demand. We study the problem using ideas from fluid models. In particular, we (i) analyze when there are pure equilibrium policies in this setting and characterize the structure of these policies; (ii) consider coordination mechanisms; and (iii) present some preliminary computational results. We also consider a modified model that uses option contracts to coordinate the supply chain.     

Managing knowledge in supply chains: a catalyst to triple bottom line sustainability

Abstract

Sustainable supply chain management (SSCM) and knowledge management’s (KM) positive role in improving supply chain development and performance have both attracted attention in recent years, the former arguably stimulated by the triple bottom line (TBL). Despite the positive development, there is a paucity of theoretical and empirical studies identifying the broad capabilities that affect a firm’s ability to simultaneously pursue economic, environmental and social success. We use the natural-resource-based (NRBV) and knowledge-based (KBV) views to develop a series of propositions linking KM capability to strategic and operational supply chain sustainability and competiveness and test their veracity with practicing managers (n?=?275). We offer a systematic analysis of KM’s role in the development of SSCM. The findings confirm the credibility of the theoretical propositions and identify how different KM processes specifically facilitate strategic or operational development of SSCs. We provide researchers with a framework to guide future research at the KM/TBL nexus.     

Promotion Planning and Supply Chain Contracting in a High–Low Pricing Environment

Demand forecast errors threaten the profitability of high–low price promotion strategies. This article shows how to match demand and supply effectively by means of two‐segment demand forecasting and supply contracts. We find that demand depends on the path of past retail prices, which leads to only a limited number of reachable demand states. However, forecast errors cannot be entirely eliminated because competitive promotions entail some degree of random (i.e., last‐minute) pricing. A hedging approach can be deployed to distribute demand risk efficiently over multiple promotional campaigns and within the supply chain. A retailer that employs a portfolio of forward, option, and spot contracts can avoid both stockouts and excess inventories while achieving the first‐best solution and Pareto improvements. We provide an improved forecasting method as well as stochastic programs to solve for optimal production and purchasing policies such that the right amount of inventory is available at the right time. By connecting a stockpiling model of demand with the supply side, we derive insights on optimal risk management strategies for both manufacturers and retailers in a market environment characterized by frequent price promotions and multiple discount levels. We employ a data set of the German retail market for a key generator of store traffic—namely, diapers.     

Pricing Policy in a Supply Chain: Negotiation or Posted Pricing

This article examines the choice of pricing policy (posted pricing or negotiation) toward end customers in a supply chain. Many retailers actively decide whether or not to encourage negotiation on the shop floor. Of course, the retailer's pricing policy influences not only the retailer's profit, but also the profits of the manufacturers who sell through the retailer. However, little is known about the forces that shape the pricing policy when two self‐interested parties interact in a supply chain. We consider two alternative models depending on who has the power to decide the pricing policy: the manufacturer or the retailer. We find that an increase in the wholesale price weakens the retailer's ability to price discriminate through negotiation. Therefore, the retailer prefers negotiation at lower wholesale prices and posted pricing at higher wholesale prices. We also find that whenever the retailer prefers negotiation, the manufacturer does too. Therefore, the retailer's discretion over the pricing policy causes friction only when the retailer wants to use posted pricing, while the manufacturer wishes the retailer to use negotiation. We show that such friction arises only when product availability or the cost of negotiation is moderate. In this case, we show that the manufacturer may offer a substantial discount to persuade the retailer to negotiate. Surprisingly, in this region of friction, a decrease in the supply chain's capacity or an increase in negotiation costs (both of which are typically considered as worsening the retailer's business environment) translates into higher profit for the retailer.     

Mathematical modelling to improve Rolled Throughput Yield in a supply chain

The outspread of supply chains competition entails inevitable application of quality improvement methods, such as Six Sigma. It is less than a decade that Six Sigma methodology has entered the supply chain scope; however, researches undertaken in this field have massively increased. Most of these research works have been done towards the application of the Six Sigma method for supply chain improvement, yet nothing has been done about suitable entity selection in supply chain for improvement. The purpose of this article is to propose a method for individual entity selection in the supply chain. Accordingly, a mixed integer non-linear programming model is presented that shows which supply chain entity should be selected, and how much to improve, in order to maximise financial benefit. This article also presents new comprehensive criteria based on the previous approach, which can measure the performance of the supply chain. Moreover, the ability of the proposed criteria is shown through a numerical example. Finally, the optimisation model was applied for selecting individual entity in tweedy supply chain in order to illustrate the capability of the model. In addition, sensitivity analysis is carried out on the parameters of the model.     

A knowledge chain management framework to support integrated decisions in global supply chains

Knowledge management has been identified as a key enabler to achieve organisation’s value chain competitiveness. It, however, has been facing fresh challenges in a global supply chain setting. This paper proposes a global knowledge chain management (GKCM) framework that identifies and prioritises critical knowledge that a global supply chain can focus on to support integrated decisions. The framework explores three types of global context knowledge, namely global market knowledge, global capacity knowledge and global supply network configuration knowledge. Empirical study has been undertaken within the manufacturing industry to evaluate the GKCM framework. Analytic network process has been explored as a key method to assess the importance of the global knowledge constructs from supply chain managers’ perspectives. A key contribution of the paper is that it advances existing knowledge chain management approaches within one organisation and its local supply chain to include the global context knowledge applicable to global manufacturing settings, and highlights how the GKCM framework can support global supply chain integrated decisions.     

The impact of timely information on organisational performance in a supply chain

Information produced by ERP systems is termed JIT-information, since it is provided at the right time in the right place with a minimum of waste. The JIT-information construct is defined and described and a measurement scale is developed. A JIT-information performance model is proposed and assessed using a structural equation modelling methodology. The results indicate that the model fits the data well: (1) supply chain management strategy positively impacts JIT-information, (2) JIT-information directly impacts both logistics and organisational performance, and (3) logistics performance directly impacts organisational performance.     

具有灰色随机动态特征的供应链牛鞭效应的鲁棒性分析

供应链的随机动态性和牛鞭效应加大了供应链系统建模鲁棒性的难度,供应链的平稳运行是供应链管理的重要基础。针对具有区间灰色特征的随机动态供应链系统,以线性时不变系统作为研究基础,提出使用Markov算法解决供应链系统随机线性跳变的鲁棒性问题,获取了判定随机动态供应链系统鲁棒性的一个有效度量指标。算例结果表明:随机动态供应链系统的牛鞭放大效应与节点间的变化幅度和长期概率的平均值均无关;Markovian跳变线性供应链系统的整体性能不能仅凭单个节点的性能来预测;供应链运作的不确定性将会导致系统整体性能的降低。     

Revenue‐Sharing vs. Wholesale‐Price Contracts in Assembly Systems with Random Demand

Assembly and kitting operations, as well as jointly sold products, are rather basic yet intriguing A decentralized supply chains, where achieving coordination through appropriate incentives is very important, especially when demand is uncertain. We investigate two very distinct types of arrangements between an assembler/retailer and its suppliers. One scheme is a vendor‐managed inventory with revenue sharing, and the other a wholesale‐price driven contract. In the VMI case, each supplier faces strategic uncertainty as to the amounts of components, which need to be mated with its own, that other suppliers will deliver. We explore the resulting components' delivery quantities equilibrium in this decentralized supply chain and its implications for participants' and system's expected profits. We derive the revenue shares the assembler should select in order to maximize its own profits. We then explore a revenue‐plus‐surplus‐subsidy incentive scheme, where, in addition to a share of revenue, the assembler also provides a subsidy to component suppliers for their unsold components. We show that, by using this two‐parameter contract, the assembler can achieve channel coordination and increase the profits of all parties involved. We then explore a wholesale‐price‐driven scheme, both as a single lever and in combination with buybacks. The channel performance of a wholesale‐price‐only scheme is shown to degrade with the number of suppliers, which is not the case with a revenue‐share‐only contract.