Quantity Flexibility Contract in the Presence of Discount Incentive

We design a new contract, which we refer to as the QFi contract, that combines the quantity flexibility (QF) mechanism and the price‐only discount incentive. Under the QF contract, the buyer does not assume full responsibility for the forecast, yet the supplier guarantees the availability of the forecasted quantity and extra buffer inventory. In contrast, the price‐only discount contract places full inventory burden on the buyer. We show that the proposed QFi contract effectively balances the inventory risk for both the buyer and the supplier considering both the QF and discount mechanisms. We also show that the QFi contract is able to achieve supply chain coordination. More importantly, the QFi contract's coordinating price scheme does not require knowledge of demand distribution. We identify areas where the buyer and supplier may both benefit from implementing the QFi contract as opposed to the extant QF or price‐only (wholesale) discount contractual decisions in a decentralized supply chain. We also specify the conditions under which supply chain coordination can be achieved in a win‐win manner. We conclude with managerial implications and provide directions for future research.     

Quality and flexibility performance trade-offs between lean and agile manufacturing firms in the automotive industry

Abstract

Firms operating in the automotive industry have traditionally been ascribed with efficiency and high levels of quality, as lean production has been extensively applied within this context, but given the recent dynamics in the automotive sector, there is also a need for high levels of flexibility, widening our attention to agile production. However, when lean and agile production have been explored simultaneously, the quality and flexibility trade-offs have been mixed and unclear. In order to dispel the lean-agile ambiguity, and given that both high levels of flexibility and quality are required within the automotive industry, the purpose of this study was to: (a) Identify the relationship between flexibility and quality; and (b) Explore the quality and flexibility differences between lean and agile production. Primary quantitative data was obtained via a survey and a total of 140 automotive manufacturing firms within the UK returned the survey. Logistic regressions were utilised as the main mode of analysis. Not only was an inverse relationship found between quality and flexibility, but our findings depict two distinctive Business Models (BMs) existing in the automotive industry, one lean and one agile. We advance the lean-agile debate by asserting that lean and agile firms acquire quality (efficiency) and flexibility strengths respectively, and not vice-versa. Given this, we theoretically side with the notion of performance ‘trade-offs’ and contend the idea that capabilities are cumulatively gained. By incorporating an argument built on the strategy literature on BMs and Dynamic Capabilities, we assert that lean and agile firms have evolved to underpin different kinds of competitive advantage within the same industry, but these advantages are placed at different tiers in the automotive supply chain.     

Strategic Maneuvers for Outsourcing Flexibility: An Empirical Assessment

Tan and Sia (2006) conceptualize outsourcing flexibility within a set of four dimensions: robustness, modifiability, new capability, and ease of exit, and propose a portfolio of preemptive, protective, exploitive, and corrective maneuvers to manage flexibility in outsourcing. In this article, we build upon their proposed framework by anchoring the strategic maneuvers through a multitheoretic lens and empirically validate the research propositions. A survey of 171 outsourcing projects in Singapore was conducted. The findings bear evidence that the four proposed dimensions of outsourcing flexibility are conceptually distinct and that different strategic maneuvers contribute differently to the various flexibility dimensions. The empirical findings also affirm the importance of structuring flexibility for outsourcing success, with some flexibility dimensions manifesting different intensity in enabling outsourcing success for IT outsourcing versus business process outsourcing. We conclude by proposing a more holistic approach for effective flexibility management in outsourcing and highlighting research gaps that may need deeper theorizing and empirical extension.     

Flexibility or Cost Saving? Sourcing Decisions with Two Suppliers

This article studies a decentralized supply chain in which there are two suppliers and a single buyer. One supplier offers the quantity flexibility (QF) contract to the buyer, while the other offers the cheaper price. Under the QF contract, the buyer does not assume full responsibility for the forecast, yet the supplier guarantees the availability of the forecasted quantity with additional buffer inventory. On the other hand, the price‐only contract places full inventory burden on the buyer, but with a cheaper price. We study this problem from the buyer's perspective and solve for the buyer's optimal procurement and forecasting decisions. We identify areas where flexibility and cheaper price have an advantage, one over the other. Our results indicate that the buyer significantly benefits from having multiple sources of supply. We also find that, from the system's standpoint, a multisupplier system may outperform a single‐supplier supply chain under certain conditions. Interestingly, we observe that providing too much flexibility may benefit the low‐price supplier rather than benefiting the QF supplier. We discuss the managerial implications and provide directions for future research opportunities.     

On Preference for Flexibility and Complexity Aversion: Experimental Evidence1

Desire for flexibility suggests that the value of a choice-menu should increase with the number of options included. Complexity-aversion on the other hand may imply that the value of a menu decreases with its cardinality. We present the results of an experiment where 5 groups of subjects were asked to evaluate saving plans that let the investor choose between alternative indexing-schemes before the saving period ends. The complexity of the different plans was manipulated in two ways: (1) increasing the number of indexing options; (2) reducing the quality of information upon which the choice between different indices is made. We show that an increase in the number of indexing-options produces a negative complexity effect when the quality of information is high. The same change however results in a positive flexibility effect when the quality of information is low. More generally our results suggest a `negative cross interaction of complexity effects' and that the impact of complexity is marginally decreasing. We discuss possible cognitive explanations to the observed evaluation-patterns. This revised version was published online in June 2006 with corrections to the Cover Date.     

介入——试论丁玲的女性写作姿态雷水莲

丁玲是一位政治化了的女性作家,她始终致力于对女性命运的关注,并表现出对男性中心世界的挑战。在女性文本中表现出对外部世界的直接介入,其女性书写也逐渐向政治文本倾斜。女性意识由"莎菲期"的个人化向"莎菲后"的社会化转型。她随时势变化而调整文学创作的趋向,革命越深入,个人意识越是向人的类意识趋近。从而将女性解放的主题与其他各种斗争形式融合在一起。她是中国特殊政治环境下的一个典型。     

Economic Insecurity and Global Casualisation: Threat or Promise?

Casualisation has both negative and positive sides, for both workers and employers. This article considers how the positive sides could be developed while allowing casual work to continue to grow. In reviewing the advantages and disadvantages of casual labour for employers, the paper depicts casualisation (and the related process of ‘informalisation’) as usually involving seven forms of economic insecurity for the worker. The modern casualisation that is taking place as part of globalisation involves a steady restructuring of social income and labour recommodification, in which many workers are finding that an increasing share of their remuneration is coming from money wages, which are a relatively insecure part of their social income. As a result, there is a need to find new ways of providing income security that could allow workers to accept the more casual work arrangements without excessive anxiety and alienation. The article is, essentially, an argument for a re-assertion of a common sense of social solidarity, in which casual work can be a normal part of a flexible labour and work system.

Capacity Investment Under Responsive Pricing: Implications of Market Entry Choice*

We consider a manufacturer’s new market entry problem when it already has some established facility in its existing market. We consider two common market entry strategies: the export strategy and the foreign direct investment (FDI) strategy. In the export strategy the firm increases the capacity at its existing facility and subsequently allocates the output to the existing and the new market dynamically, depending on realized market conditions. The export strategy is a flexible strategy. In the FDI strategy, the firm invests in a dedicated capacity to serve the new market only. The FDI strategy is a (partially) dedicated strategy. We study these two strategies from a planning perspective, that is, how the firm’s strategy choice influences the optimal capacity levels. We find that the firm’s strategy choice can significantly impact the optimal capacity investment levels. We prove, for example, that the firm may enter the new market in the export strategy but not in the FDI strategy, even if the capacity investment cost is identical in the existing and the new market. In addition, we prove that the firm may invest a strictly higher capacity level in the export strategy than that in the FDI strategy. We also prove that new market entry in the FDI strategy may strictly decrease the firm’s supply to its existing market but this is not so in the export strategy, and hence policy makers should carefully consider the implications of trade regulations on firms’ market entry choices.     

Distribution Channel Network and Relational Performance: The Intervening Mechanism of Adaptive Distribution Flexibility

Network theories argue that organizations can enjoy information and control benefits from the network in which they are embedded. Focusing on distribution channel networks with strong, prominent, and central ties, this article argues that distribution flexibility, composed of logistics and relationship flexibility, is a response to environmental uncertainty that mediates the effect of channel network embeddedness on relationship performance. Results show that logistics flexibility and relationship flexibility fully mediate the effect of channel network embeddedness on relationship satisfaction, but that only relationship flexibility mediates the effect of channel network embeddedness on long‐term relationship orientation. Furthermore, not only is the effect of tie strength on logistics flexibility stronger in an uncertain environment, but relationship flexibility also decreases as the congruence between uncertainty and tie strength increases, suggesting a complex higher‐order contingency model.     

Offshore but on track? Hypermobile and hyperflexible working lives

In the spring 2011, and again during summer 2012, the small coastal town of Hirtshals (approx. 6000 inhabitants) on the north-western shore of Denmark was home to two spectacular symbols of the success of an emergent offshore sector in the region, namely the upgrading and overhauling of two gigantic oil rigs. Providing temporary work for an estimated 800 persons who literally worked day and night for the 100 days each rig was at dock, these events affected the entire community. The paper presents evidence from seven biographical interviews with local men whose working lives were directly or indirectly affected by these events. As the interviews illuminate, respondents are often extremely mobile and flexible in terms of their jobs, in some cases ‘bungy jumping’ through working life in an apparent effort to retain local ties while pursuing global opportunities. The paper contributes to qualifying more general sociological discussions about the push for increased mobility and flexibility in a presumably increasingly globalising labour market reality. Ultimately, it seems that the multiple ways in which Hirtshals is marked as marginal – in terms of geography, socio-economic profile and discourse – may serve to normalise demands for flexibility and mobility, at least amongst parts of the local working population.