Improving Humanitarian Operations through Technology‐Enabled Collaboration

Humanitarian supply chains involve many different entities, such as government, military, private, and non‐governmental organizations and individuals. Well‐coordinated interactions between entities can lead to synergies and improved humanitarian outcomes. Information technology (IT) tools can help facilitate collaboration, but cost and other barriers have limited their use. We document the use of an IT tool to improve last‐mile supply distribution and data management in one of many camps for internally displaced persons after the January 2010 earthquake in Haiti, and we describe other current uses of technology in camp management. Motivated by these examples and the interest among humanitarian organizations in expanding the use of such tools to facilitate coordination, we introduce a cooperative game theory model and explore insights about the conditions under which multi‐agency coordination is feasible and desirable. We also outline an agenda for future research in the area of technology‐enabled collaboration in the humanitarian sector.     

Local Resources and Procurement Practices in Humanitarian Supply Chains: An Empirical Examination of Large‐Scale House Reconstruction Projects

Different procurement decisions taken by relief organizations can result in considerably different implications in regards to transport, storage, and distribution of humanitarian aid and ultimately can influence the performance of the humanitarian supply chain and the delivery of the humanitarian aid. In this article, we look into what resources are needed and how these resources evolve in the delivery of humanitarian aid. Drawing on the resource‐based view of the firm, we develop a framework to categorize the impact of local resources on the configuration of humanitarian supply chains. In contrast to other papers, the importance of localizing the configuration of the humanitarian supply chain is not only conceptually recognized, but empirical investigations are also provided. In terms of methodology, this article is based on the analysis of secondary data from two housing reconstruction projects. Findings indicate that the use of local resources in humanitarian aid has positive effects on programs’ overall supply chain performance and these effects are not only related to the macroeconomic perspective, but benefits expand to improvements related to the use of knowledge. At the same time, it was found that local sourcing often comes with a number of problems. For example, in one of the cases, significant problems existed, which were related to the scarcity of local supplies. Both housing reconstruction projects have indicated the continuous need for changes throughout the programs as a dynamic supply chain configuration is important for the long‐term sustainability of reconstruction aid.     

Internal Infrastructural Impacts on RFID Perceptions and Commitment: Knowledge,Operational Procedures,and Information‐Processing Standards

For many firms, radio frequency identification (RFID) suggests not only a new alternative to existing tracking methods but also a means to a range of previously cost‐prohibitive internal control and supply chain coordination innovations. In any event, and even in light of possible external pressures to adopt, the full potential of RFID for an individual firm must ultimately be viewed in consideration with the infrastructural capabilities of that firm. Furthermore, because adoption decisions are fundamentally based on managerial perceptions, it is critical to consider how certain forms of infrastructure provide the necessary transparency into other infrastructural characteristics to augment such decisions. We use multisource survey data in this work to consider several elements that contribute to this infrastructure and subsequently to perceptions of RFID benefit and actual commitment to adoption. Results demonstrate that the complementary effects of these infrastructural capabilities significantly impact both perceptions of and commitments to RFID.     

Decision Making and Cognition in Multi‐Echelon Supply Chains: An Experimental Study

Supply chain performance often depends on the individual decisions of channel members. Even when individuals have access to relevant information, order variation tends to increase when moving up the supply chain, a phenomenon known as the bullwhip effect. While prior research has investigated several structural/environmental factors which can mitigate the bullwhip effect, the underlying behavioral factors contributing to it are an open question. Using a production and distribution decision‐making simulation representing a four‐stage serial supply chain, we find that the cognitive profile of decision makers contributes to the bullwhip effect. We found that the specific decision tendency to underweight the supply line is linked to an individual's level of cognitive reflection. Furthermore, performance differs for entire supply chains and for specific echelons, and holds under standard mitigation efforts. The findings have implications for supply chain design, education, and industry.     

航运供应链上的品牌价值、公平关切与契约协调

航运供应链上的船公司提高企业品牌价值需要付出大量的投资成本,因此将会更加关注供应链上利润分配的公平。本文以单个船公司和单个货代公司构成的两级航运供应链为研究对象,运用博弈论分析船公司的公平关切行为和品牌投入意愿对航运供应链上各方利润的影响,探讨决策者非理性条件下航运供应链的合作模式和协调机制。研究表明：1）船公司的公平关切提高了其在供应链上利润分配占比,但降低了整个航运供应链的利润和效率;2）随着品牌投入意愿的提高,船公司的公平关切对航运供应链上各方决策的负作用就越明显;3）"收益共享成本共担"式契约能够消除公平关切的负作用,达到航运供应链纵向联盟的最优收益和整体效率。     

The Impact of E‐Replenishment Strategy on Make‐to‐Order Supply Chain Performance

This research investigates the impact of electronic replenishment strategy on the operational activities and performance of a two‐stage make‐to‐order supply chain. We develop simulation‐based rolling schedule procedures that link the replenishment processes of the channel members and apply them in an experimental analysis to study manual, semi‐automated, and fully automated e‐replenishment strategies in decentralized and coordinated decision‐making supply chain structures. The average operational cost reductions for moving from a manual‐based system to a fully automated system are 19.6, 29.5, and 12.5%, respectively, for traditional decentralized, decentralized with information sharing, and coordinated supply chain structures. The savings are neither equally distributed among participants, nor consistent across supply chain structures. As expected, for the fully coordinated system, total costs monotonically decrease with higher levels of automation. However, for the two decentralized structures, under which most firms operate today, counter‐intuitive findings reveal that the unilateral application of e‐procurement technology by the buyer may lower his purchasing costs, but increase the seller's and system's costs. The exact nature of the relationship is determined by the channel's operational flexibility. Broader results indicate that while the potential economic benefit of e‐replenishment in a decentralized system is substantial, greater operational improvements maybe possible through supply chain coordination.     

Managing Slow‐Moving Perishables in the Grocery Industry

We address the value of information and value of centralized control in the context of a two‐echelon, serial supply chain with one retailer and one supplier that provide a single perishable product to consumers. Our analysis is relevant for managing slow‐moving perishable products with fixed lot sizes and expiration dates of a week or less. We evaluate two supply chain structures. In the first structure, referred to as decentralized information sharing, the retailer shares its demand, inventory, and ordering policy with the supplier, yet both facilities make their own profit‐maximizing replenishment decisions. In the second structure, centralized control, incentives are aligned and the replenishment decisions are coordinated. The latter supply chain structure corresponds to the industry practices of company‐owned stores or vendor‐managed inventory. We measure the value of information and value of centralized control as the marginal improvement in expected profits that a supply chain achieves relative to the case when no information is shared and decision making is decentralized. Key assumptions of our model include stochastic demand, lost sales, and fixed order quantities. We establish the importance of information sharing and centralized control in the supply chain and identify conditions under which benefits are realized. As opposed to previous work on the value of information, the major benefit in our setting is driven by the supplier's ability to provide the retailer with fresher product. By isolating the benefit by firm, we show that sharing information is not always Pareto‐improving for both supply chain partners in the decentralized setting.     

基于税盾效应的供应链贸易信用融资优化决策研究

针对中小企业融资困境的现实,本文基于贸易信用融资模式,引入税盾效应,建立了由单一核心供应商和单一经销商组成的含税盾的贸易信用模型,探讨有融资需求的经销商进行订货、核心供应商定价的决定策略,探究不同计息方式的价值实现和融资模式优选。通过stackbelberg博弈、比较分析和算例验证,研究发现以订货量确定为基准,融资需求出现的时点对供应链企业计息方式的选择均有影响。税法关于利息抵扣上限、贸易信用贷款利率、订货量等均影响经销商计息方式的选择,融资额度影响其订货策略;生产成本的差额、定价策略影响供应商的计息方式。     

Item‐Level RFID in the Retail Supply Chain

Analyzing the proliferation of item‐level RFID, recent studies have identified the cost sharing of the technology as a gating issue. Various qualitative studies have predicted that conflict will arise, in particular in decentralized supply chains, from the fact that the benefits and the costs resulting from item‐level RFID are not symmetrically distributed among supply chain partners. To contribute to a better understanding of this situation, we consider a supply chain with one manufacturer and one retailer. Within the context of this retail supply chain, we present analytic models of the benefits of item‐level RFID to both supply chain partners. We examine both the case of a dominant manufacturer as well as the case of a dominant retailer, and we analyze the results of an introduction of item‐level RFID to such a supply chain depending on these market power characteristics. Under each scenario, we show how the cost of item‐level RFID should be allocated among supply chain partners such that supply chain profit is optimized.     

Integrating Operational and Organizational Aspects in Interdependent Infrastructure Network Recovery

Managing risk in infrastructure systems implies dealing with interdependent physical networks and their relationships with the natural and societal contexts. Computational tools are often used to support operational decisions aimed at improving resilience, whereas economics‐related tools tend to be used to address broader societal and policy issues in infrastructure management. We propose an optimization‐based framework for infrastructure resilience analysis that incorporates organizational and socioeconomic aspects into operational problems, allowing to understand relationships between decisions at the policy level (e.g., regulation) and the technical level (e.g., optimal infrastructure restoration). We focus on three issues that arise when integrating such levels. First, optimal restoration strategies driven by financial and operational factors evolve differently compared to those driven by socioeconomic and humanitarian factors. Second, regulatory aspects have a significant impact on recovery dynamics (e.g., effective recovery is most challenging in societies with weak institutions and regulation, where individual interests may compromise societal well‐being). And third, the decision space (i.e., available actions) in postdisaster phases is strongly determined by predisaster decisions (e.g., resource allocation). The proposed optimization framework addresses these issues by using: (1) parametric analyses to test the influence of operational and socioeconomic factors on optimization outcomes, (2) regulatory constraints to model and assess the cost and benefit (for a variety of actors) of enforcing specific policy‐related conditions for the recovery process, and (3) sensitivity analyses to capture the effect of predisaster decisions on recovery. We illustrate our methodology with an example regarding the recovery of interdependent water, power, and gas networks in Shelby County, TN (USA), with exposure to natural hazards.     

Understanding and Reducing Inconsistency in Seatbelt‐Use Decisions: Findings from a Cardinal Decision Issue Perspective

This article has two aims. The first is to present results that partly explain why some automobile drivers choose to use their seatbelts only part time, thereby exposing themselves to unnecessary risk. The second is to offer and illustrate the “cardinal decision issue perspective”⁽¹⁾ as a tool for guiding research and development efforts that focus on complex real‐life decision behaviors that can entail wide varieties of risk, including but not limited to inconsistent seatbelt use. Each of 24 young male participants drove an instrumented vehicle equipped to record continuously seatbelt use as well as other driving data. After all trips were finished, each participant completed an interview designed to reconstruct how he made randomly selected seatbelt‐use decisions under specified conditions. The interview also examined whether and how drivers established “decision policies” regarding seatbelt use. Such policies were good predictors of inconsistent seatbelt use. Drivers who had previously adopted policies calling for consistent seatbelt use were significantly more likely than others to actually drive belted. Meta‐decisions about seatbelt policy adoption appeared to rest on factors such as whether the driver had ever been asked to consider selecting a policy. Whether a driver made an ad hoc, on‐the‐spot seatbelt‐use decision was associated with a perceived need to make such a decision. Finally, participants with full‐time policies were especially likely to deploy their seatbelts by default, without recognizing the need to decide about belt use on a trip‐by‐trip basis. We end with recommendations for reducing inconsistencies in seatbelt use in actual practice.     

Managing Engineering Design for Competitive Sourcing in Closed‐Loop Supply Chains

We examine the strategic interplay between a buyer's design decision and the ensuing competition between suppliers in a three‐tier closed‐loop supply chain setting with significant recycling considerations. The nature of the engineering design decision in our research entails choice of integral versus modular design that has direct implications for the input raw material waste and ensuing competition between suppliers (i.e., incumbent and new). Whereas the integral design requires a large blank and generates excessive material scrap, the modular design reduces the generated scrap, and enhances cut‐to‐fit modularity, but incurs joining cost and yield loss. The incumbent supplier who supports the status quo choice of integral design can effectively recycle excessive material waste, as it is strategically located close to the source of material. The engineering design team at our study firm is currently exploring the option to source from alternative suppliers that can support either integral or modular designs, but have significantly lower effectiveness in recycling scrap material. We characterize the buyer's price sensitivity levels, component characteristics, supply chain configurations, and virgin and scrap specialty material prices that yield various design and sourcing policy alternatives. The buyer's optimal policy choice, the ensuing price–demand dynamics, and the resulting recycling implications demonstrate that the buyer can benefit from strategically tailoring his design decisions to affect the suppliers' material requirements and costs. We show that utilizing an alternative supply option is particularly valuable for components made from a material with a low price differential in virgin and scrap forms in supply chains wherein the new supplier base can recycle effectively. In such cases, the buyer induces severe price competition by dual sourcing the integral design, and competition may negate the seemingly obvious benefits of operational improvements (e.g., higher scrap material return rate).      

Optimal Sourcing and Lead‐Time Reduction under Evolutionary Demand Risk

We develop a real‐options model for optimizing production and sourcing choices under evolutionary supply‐chain risk. We model lead time as an endogenous decision and calculate the cost differential required to compensate for the risk exposure coming from lead time. The shape of the resulting cost‐differential frontier reveals the term structure of supply‐chain risk premiums and provides guidance as to the potential value of lead‐time reduction. Under constant demand volatility, the break‐even cost differential increases in volatility and lead time at a decreasing rate, making incremental lead‐time reduction less valuable than full lead‐time reduction. Stochastic demand volatility increases the relative value of incremental lead‐time reduction. When demand has a heavy right tail, the value of lead‐time reduction depends on how extreme values of demand are incorporated into the forecasting process. The cost‐differential frontier is invariant to discount rates, making the cost of capital irrelevant for choosing between lead times. We demonstrate the managerial implications of the model by applying it first to the classic Sport‐Obermeyer case and then to a supplier‐selection problem faced by a global manufacturer.     

Corporate Responses to HIV/AIDS: Experience and Leadership from South Africa

HIV/AIDS harms the viability and competitiveness of African businesses. As a consequence, companies increasingly subscribe to the view that taking a proactive role to combat HIV/AIDS is not simply a question of compassion and good corporate citizenship. Rather, these firms see assertive action against HIV as critical to their long‐term profitability, and some have concluded that it is cost effective even in the short term. The article discusses how South African companies are taking action against HIV in ways that set new benchmarks, enhance the effectiveness of international AIDS advocacy efforts, and spur businesses across Africa and beyond to strengthen their corporate responses to HIV/AIDS.     

Complexity and Self‐Sustainment in Disaster Response Supply Chains

Governmental organizations play a major role in disaster relief operations. Supply chains set up to respond to disasters differ dramatically in many dimensions that affect the cost of relief efforts. One factor that has been described recently is self‐sustainment, which occurs when supplies consumed by intermediate stages of a supply chain must be provided via the chain itself because they are not locally available. This article applies the concept of self‐sustainment to response supply chains. A mathematical model of a self‐sustaining response supply chain is developed. Analysis of this model yields insights about the relationships and interactions among self‐sustainment, speed of disaster onset, dispersion of impact, and the cost of the relief efforts.     

Equity‐Based Incentives and Supply Chain Buy‐Back Contracts*

We analyze the effect of equity‐based incentives in a supply chain with a downstream firm and an upstream supplier. By using the operational decision as a signal to influence external investors’ beliefs, the downstream firm's manager intends to maximize a convex combination of the interim share price and the terminal cash flows. We show that equity‐based incentives create a side effect. Specifically, with a universal buy‐back contract, the deadweight loss of signaling induced by equity‐based incentives could spread throughout the supply chain and cause chain‐wide damages. To mitigate such undesirable consequences, we propose a new mechanism to eliminate the inefficiency. We derive the optimal mechanism that maximizes the downstream firm's profits subject to the constraint that the supply chain efficiency is not undermined. In contrast to the full‐information benchmark, this mechanism gives positive surplus to the supplier. [Submitted: January 5, 2011. Revisions received: June 20, 2011; December 11, 2011. Accepted: December 22, 2011.]     

Balancing Inventory and Stockout Risk in Retail Supply Chains Using Fast‐Ship

In this study, we consider a two‐retailer, one‐supplier supply chain in which retailers satisfy excess demand by offering to directly ship out‐of‐stock items on an expedited basis at no extra cost to customers. This practice is referred to as the fast‐ship option. We consider two scenarios along with the fast‐ship option. In the first scenario, retailers transship when out of stock, whereas in the second scenario, they do not. If they do not transship, some customers may perform the search on their own. In each scenario, the wholesale prices are either exogenous, or chosen endogenously by the supplier. For both cases, we determine the supplier's and the retailers’ optimal decisions. The key research question we ask and answer is the following: which of the two scenarios is preferred by either player when all decisions are made optimally? We show that when fewer customers are willing to search on their own and wholesale prices are exogenous, both the supplier and the retailers prefer to transship. In addition, the decision maker in a centralized chain will have the exact same preference as that of players in a decentralized setting when the retailers’ and the supplier's preferences coincide and wholesale prices are exogenous. This preference concordance does not hold if wholesale prices are endogenous.     

具有公平感的零售商订购决策研究

供应链系统中,零售商的公平感知会对其订购决策产生影响。将公平感细分为四类：过程双边公平、结果双边公平、过程单边公平和结果单边公平,研究了具有不同公平感类型的零售商在批发价合同下的订购决策。第一,在批发价合同中,具有过程或结果双边公平感的零售商,其订购量各不相同,与不考虑公平感的零售商的相对大小关系取决于系统参数;并且,零售商的公平感无法协调系统,但在某些条件下,可以改善其在系统中的相对收益。第二,在批发价合同中,具有过程或结果单边公平感的零售商,若零售商关注过程单边公平,其订购量总小于不具有公平感的零售商的;若零售商关注结果单边公平,在某些条件下,其订购量大于不具有公平感的零售商的;并且,零售商的公平感无法协调系统,但在某些条件下,可以改善其在系统中的相对收益。     

Entrepreneurs’ Decisions to Exploit Opportunities

Opportunity exploitation is a necessary step in creating a successful business in the entrepreneurial process, yet there has been little conceptual and empirical development of this issue in the literature. This study examines the decisions of entrepreneurs to begin exploiting business opportunities from a resource-based view. Our analysis of a sample of entrepreneurs whose businesses are located in incubators suggests that entrepreneurs are more likely to exploit opportunities when they perceive more knowledge of customer demand for the new product, more fully developed necessary technologies, greater managerial capability, and greater stakeholder support. Moreover, the findings of this study shed a light on a less emphasized aspect of the resource-based view: the new product’s anticipated lead time acts as an enhancing moderator in entrepreneurs’ exploitation decision policies. Implications for future research on opportunity exploitation are discussed.