A Modeling Framework for Supply Chain Simulation: Opportunities for Improved Decision Making*

Owing to its inherent modeling flexibility, simulation is often regarded as the proper means for supporting decision making on supply chain design. The ultimate success of supply chain simulation, however, is determined by a combination of the analyst's skills, the chain members' involvement, and the modeling capabilities of the simulation tool. This combination should provide the basis for a realistic simulation model, which is both transparent and complete. The need for transparency is especially strong for supply chains as they involve (semi)autonomous parties each having their own objectives. Mutual trust and model effectiveness are strongly influenced by the degree of completeness of each party's insight into the key decision variables. Ideally, visual interactive simulation models present an important communicative means for realizing the required overview and insight. Unfortunately, most models strongly focus on physical transactions, leaving key decision variables implicit for some or all of the parties involved. This especially applies to control structures, that is, the managers or systems responsible for control, their activities and their mutual attuning of these activities. Control elements are, for example, dispersed over the model, are not visualized, or form part of the time‐indexed scheduling of events. In this article, we propose an alternative approach that explicitly addresses the modeling of control structures. First, we will conduct a literature survey with the aim of listing simulation model qualities essential for supporting successful decision making on supply chain design. Next, we use this insight to define an object‐oriented modeling framework that facilitates supply chain simulation in a more realistic manner. This framework is meant to contribute to improved decision making in terms of recognizing and understanding opportunities for improved supply chain design. Finally, the use of the framework is illustrated by a case example concerning a supply chain for chilled salads.     

Special Research Focus on Supply Chain Linkages: Challenges for Design and Management in the 21st Century*

Supply chain management is a central and important area for academic research due to its impact on firms competing in today's global economy. Managing the flow of materials from supply sources to the ultimate customer represents a major challenge for today's managers. To assist managers, the concept of supply chain management has been adopted by many business leaders as an important way to assist in designing, planning, and controlling the network of facilities and tasks that comprise the many stages of the supply chain. In turn, the flow of academic research in the area has increased to provide a better set of guidelines for effective implementation and execution. This article sets the stage for recently completed research concentrating on supply chain management issues. First, a definition of supply chain management is provided and compared to recent usage in this area and logistics management. Also, a framework is provided that structures this dynamic and complex management task. Second, a review of past research is presented to illustrate the many paths supply chain management has traveled, and important contributions to supply management understanding and decision making. Third, recently completed research articles are introduced that have been selected to be part of this special issue of Decision Sciences. And fourth, future research directions for supply chain management that need to be pursued by interested investigators are discussed.     

一体化下游企业的零部件自制与外包决策的供应链短期均衡研究

企业常常面临选择:零部件生产是自己制造还是外包给零部件供应商,在产业组织理论中是一个企业纵向一体化的选择问题。在分析指出下游企业零部件生产的外包和自制的市场行为改变了该产业组织的结构的基础上,本文分别以上游供应商利润、下游企业利润和消费者剩余为优化目标,研究上游供应商的产品定价、下游企业零部件生产的外包和自制决策,将cournot博弈嵌套到Stackelberg博弈中,建立该产业组织的复合博弈模型,得到了该产业组织在不同结构下的不同均衡,即相关企业的最优生产经营决策。对于上游供应商,下游企业零部件生产的外包比自制总是可以获得较高的利润,并且两者的差距随着市场容量的增加而增大,对于下游企业,其零部件自制获得的利润总是高于外包获得的利润,其竞争的下游企业的利润则也是与之同方向变化。这些结果可供供应链的企业在竞争环境下制定最优市场策略时参考,尤其是可供企业在零部件外包或自制决策时参考。     

e‐Business and Supply Chain Management

In recent years, the area of Supply Chain Management has generated a substantial amount of interest both by managers and researchers. This interest has also been fueled by the growth in the development and application of e‐business technologies. These technologies enable the supply chain manager to make coordinated decisions by integrating the diverse and sometimes conflicting objectives of the various trading partners in a chain. The purpose of this paper is to: (a) highlight strategic and tactical issues for analyzing supply chains in an e‐business setting based on papers published in this special issue; and (b) describe future research opportunities in this emerging interdisciplinary area.     

缩短供应链多阶响应周期的物流模式研究

为了满足最终客户的多样化、及时化的需求,供应链的物流模式成了缩短供应链多阶响应周期的一个重要的研究领域。对比传统的物流模式,快速响应的供应链物流模式的主要改进点在制造商及其以下的节点企业的物流上。四种物流模式对于缩短供应链最终用户的响应周期有极大的意义和作用,它们是:基于制造商的直销模式、以批发商为改进点的零售支持型批发物流和区域零售支持型综合批发物流,以及以零售商为切入点的产销联盟的物流模式,并且它们各自不同的适用范围取决于供应链的运作特点和行业特征。     

The Interdisciplinary Future of Supply Chain Management Research

Since the term supply chain management (SCM) was first introduced over 30 years ago, the field of SCM has undergone numerous transformations. Today, it is a prevailing theme in scholarly and popular research, and numerous disciplines claim its ownership. However, current and emerging SCM research challenges are becoming increasingly more complex. Fragmented and "siloed" research efforts across a range of disciplines may not be adequate to address the full complexities associated with these phenomena. We interviewed 50 SCM academic thought leaders, across a range of disciplines, and 20 SCM executives with the goal of helping researchers develop a consistent stream of work that builds on existing research, identifies relevant research directions, and provides guidance for the future. Although there were some differences in opinions, there was consensus on the boundary characteristics of SCM, as well as the identification of interdisciplinary research (IDR) as necessary for the enablement of SCM to address the numerous current and emerging intractable SCM challenges. In this article, we present these findings and provide a path forward based on the collective wisdom of these academics and executives.     

e‐Integration in the Supply Chain: Barriers and Performance*

Current opinion holds that Internet‐based supply chain integration with upstream suppliers and downstream customers (called “e‐integration” in this paper) is superior to traditional ways of doing business. This proposition remains untested, however, and similarly we know little about what are the upstream, internal, and downstream barriers to implementing e‐integration. This paper empirically addressed these questions using data from a large single nation study, and found (1) a positive link between e‐integration and performance, and (2) that internal barriers impeded e‐integration more than either upstream supplier barriers or downstream customer barriers. Findings from this study contribute to our theoretical understanding of implementing change in contemporary supply chains, and have important implications for manufacturers interested in improving their supply chain's performance using the Internet.     

Health Care Supply Chain Design: Toward Linking the Development and Delivery of Care Globally*

This article is motivated by the gap between the growing demand and available supply of high‐quality, cost‐effective, and timely health care, a problem faced not only by developing and underdeveloped countries but also by developed countries. The significance of this problem is heightened when the economy is in recession. In an attempt to address the problem, in this article, first, we conceptualize care as a bundle of goods, services, and experiences—including diet and exercise, drugs, devices, invasive procedures, new biologics, travel and lodging, and payment and reimbursement. We then adopt a macro, end‐to‐end, supply chain–centric view of the health care sector to link the development of care with the delivery of care. This macro, supply chain–centric view sheds light on the interdependencies between key industries from the upstream to the downstream of the health care supply chain. We propose a framework, the 3A‐framework, that is founded on three constructs—affordability, access, and awareness—to inform the design of supply chain for the health care sector. We present an illustrative example of the framework toward designing the supply chain for implantable device–based care for cardiovascular diseases in developing countries. Specifically, the framework provides a lens for identifying an integrated system of continuous improvement and innovation initiatives relevant to bridging the gap between the demand and supply for high‐quality, cost‐effective, and timely care. Finally, we delineate directions of future research that are anchored in and follow from the developments documented in the article.     

The Impact of Forecast Errors on Early Order Commitment in a Supply Chain*

Supply chain partnership involves mutual commitments among participating firms. One example is early order commitment, wherein a retailer commits to purchase a fixed‐order quantity and delivery time from a supplier before the real need takes place. This paper explores the value of practicing early order commitment in the supply chain. We investigate the complex interactions between early order commitment and forecast errors by simulating a supply chain with one capacitated supplier and multiple retailers under demand uncertainty. We found that practicing early order commitment can generate significant savings in the supply chain, but the benefits are only valid within a range of order commitment periods. Different components of forecast errors have different cost implications to the supplier and the retailers. The presence of trend in the demand increases the total supply chain cost, but makes early order commitment more appealing. The more retailers sharing the same supplier, the more valuable for the supply chain to practice early order commitment. Except in cases where little capacity cushion is available, our findings are relatively consistent in the environments where cost structure, number of retailers, capacity utilization, and capacity policy are varied.     

Modeling Supply Chain Dynamics: A Multiagent Approach*

A global economy and increase in customer expectations in terms of cost and services have put a premium on effective supply chain reengineering. It is essential to perform risk-benefit analysis of reengineering alternatives before making a final decision. Simulation provides an effective pragmatic approach to detailed analysis and evaluation of supply chain design and management alternatives. However, the utility of this methodology is hampered by the time and effort required to develop models with sufficient fidelity to the actual supply chain of interest. In this paper, we describe a supply chain modeling framework designed to overcome this difficulty. Using our approach, supply chain models are composed from software components that represent types of supply chain agents (e.g., retailers, manufacturers, transporters), their constituent control elements (e.g., inventory policy), and their interaction protocols (e.g., message types). The underlying library of supply chain modeling components has been derived from analysis of several different supply chains. It provides a reusable base of domain-specific primitives that enables rapid development of customized decision support tools.     

Decision Sciences Research in China: A Critical Review and Research Agenda—Foundations and Overview*

This article focuses on decision sciences research in China, providing an overview of current research and developing a foundation for future China‐based research. China provides a unique research opportunity for decision sciences researchers, owing to its recent history, rapid economic development, and strong national culture. We examine recent economic reforms and their impact on the development of research questions in the decision sciences, as well as discuss characteristics of the diverse regions in China and their potential as sites for various types of research. We provide a brief overview of recent China‐based research on decision sciences issues relating to national culture, supply chain management, quality management, production planning and control, operations strategy, and new product development and discuss some of the unique methodological challenges inherent in China‐based research. We conclude by looking forward to emerging research opportunities in China.     

绿色供应链管理的集成特性和体系结构

绿色供应链管理是一种现代企业的可持续发展模式。本文论述了绿色供应链管理的概念,分析了绿色供应链管理的集成特性,并建立了绿色供应链管理的体系结构。     

Designing Distribution Systems to Support Vendor Strategies in Supply Chain Management*

The interactions among a firm's distribution strategy, market share, and distribution costs are an important consideration in the design of supply chain networks. However, these interactions are largely ignored by existing distribution system design methodologies, which assume demand is constant regardless of the firm's distribution strategy. This paper describes a multidisciplinary framework that considers these interactions in the design of “profit maximizing” distribution networks. The framework employs two major decision support methodologies: (1) binary logit models for estimating market share considering various demand-influencing parameters such as product price and distribution service, and (2) a mixed-integer programming (MIP) model for finding optimal distribution network designs. We applied the framework to an actual design problem facing a national distributor of industrial chemical products. The test results verify the framework's large-scale capability and the potential benefit of the integrated solution methodology.     

西方国家供应链联盟演变历程及对中国的启示

供应链联盟是一种基于网络经济的新型经济组织形式。本文主要以汽车业为例,对供应链联盟在西方国家产生、发展和演变的现实背景进行了分析,在此基础之上,指出我国企业参与供应链联盟需要解决的问题。     

Flow Coordination and Information Sharing in Supply Chains: Review,Implications, and Directions for Future Research

Advances in information technology, particularly in the e‐business arena, are enabling firms to rethink their supply chain strategies and explore new avenues for inter‐organizational cooperation. However, an incomplete understanding of the value of information sharing and physical flow coordination hinder these efforts. This research attempts to help fill these gaps by surveying prior research in the area, categorized in terms of information sharing and flow coordination. We conclude by highlighting gaps in the current body of knowledge and identifying promising areas for future research.     

The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities

Supply chain disruptions and the associated operational and financial risks represent the most pressing concern facing firms that compete in today's global marketplace. Extant research has not only confirmed the costly nature of supply chain disruptions but has also contributed relevant insights on such related issues as supply chain risks, vulnerability, resilience, and continuity. In this conceptual note, we focus on a relatively unexplored issue, asking and answering the question of how and why one supply chain disruption would be more severe than another. In doing so, we argue, de facto, that supply chain disruptions are unavoidable and, as a consequence, that all supply chains are inherently risky. Employing a multiple‐method, multiple‐source empirical research design, we derive novel insights, presented as six propositions that relate the severity of supply chain disruptions (i) to the three supply chain design characteristics of density, complexity, and node criticality and (ii) to the two supply chain mitigation capabilities of recovery and warning. These findings not only augment existing knowledge related to supply chain risk, vulnerability, resilience, and business continuity planning but also call into question the wisdom of pursuing such practices as supply base reduction, global sourcing, and sourcing from supply clusters.     

A Transaction‐Efficiency Analysis of an Internet Retailing Supply Chain in the Music CD Industry*

The emergence of the Internet may have fundamentally altered the mechanisms underlying information exchanges between sellers and end consumers. However, little attention has been given to the impact these mechanisms have on the efficiency of supply chain operations. This paper begins to address this deficiency in the literature by evaluating supply chain transaction efficiency effects from Internet purchases by consumers. It develops and empirically tests a theoretical framework examining the role Internet purchases have in establishing transaction‐efficiency levels in product exchanges involving sellers, placed at different supply chain echelons, and consumers. The theoretical framework integrates the transaction‐cost and internet economics, inter‐organizational information systems, and supply chain management literatures. Empirical testing, via structural equation modeling, is based on archival data in the Internet music CD market. The results show that Internet‐mediated purchases by consumers allow for greater transaction efficiencies when inventory ownership is postponed farther upstream in the supply chain and supply chain echelons are disintermediated. The results also indicate that channel structure configuration, defined by the supply chains' Internet retailing echelon, moderates these transaction efficiency effects.     

组织的环境适应性及生存战略--基于知识供应链的分析

在经济生态系统中,由于组织学习能力的不同,企业具有对环境的不同适应性.本文构建了从个体知识到组织知识的组织知识供应链模型,根据知识供应过程,本文区分了组织的静态适应性、动态适应性以及临界适应性三种不同适应性,在此基础上,我们总结了企业的三种生存战略,它们是产品中心战略、能力中心战略以及组织学习战略.     

Channel Strategies and Stocking Policies in Uncapacitated and Capacitated Supply Chains*

A supply chain consisting of a single supplier distributing two independent products through multiple retailers is analyzed in this paper. The supplier needs to incentivize its retailers to adopt stocking policies that are mutually advantageous and that result in the optimal level of market coverage. The focus is on determining the optimal stocking policies for retailers and the resulting distribution strategy given that the supplier has either unlimited or limited capacity. The results provide insights on the optimal distribution strategy and stocking policies for the supply chain. In general, the paper shows that it is optimal for the supplier to use an intensive distribution strategy (i.e., the products are stocked by all retailers). Selective or exclusive strategies are optimal only when retailers are risk averse, stocking synergies exist, and there are differences in demand or supply uncertainties across products. The analysis also shows that retailers hold larger stocks of a product which generates higher supplier margins but only when the supplier has unlimited capacity. If the supplier has limited capacity, then their margins have no effect on retailers' stocking decisions. Contrary to conventional wisdom, retailers hold larger stocks of a product that has less demand uncertainty as compared to one that has more demand uncertainty.