{"title":"A Multi-Supplier Sourcing Problem with a Preference Ordering of Suppliers","authors":"Dorothée Honhon, V. Gaur, S. Seshadri","doi":"10.2139/ssrn.1678520","DOIUrl":"https://doi.org/10.2139/ssrn.1678520","url":null,"abstract":"We study a sourcing problem faced by a firm that seeks to procure a product or a component from a pool of alternative suppliers. The firm has a preference ordering of the suppliers based on factors such as their past performance, quality, service, geographical location, and financial strength, which are commonly included in a supplier scorecard system. Thus, the firm first uses available inventory from supplier 1, if any, then supplier 2, if any, and so on. The suppliers differ in costs and prices. The buyer firm seeks to determine which suppliers to purchase from and in what quantities to maximize its total expected profit subject to the preference ordering constraint. We present the optimal solution to this problem, and show that it has a portfolio structure. It consists of a sub-set of suppliers that are ordered by their underage and overage costs. This portfolio achieves a substantial profit gain compared to sourcing from a unique supplier. We present an efficient algorithm to compute the optimal solution. Our model applies to component sourcing problems in manufacturing, merchandizing problems in retailing, and capacity reservation problems in services.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"68 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126089861","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Coordinating Lead-Time and Safety Stock Decisions in a Two-Echelon Supply Chain with Autocorrelated Consumer Demand","authors":"R. Boute, S. Disney, M. Lambrecht, B. Van Houdt","doi":"10.2139/ssrn.1620237","DOIUrl":"https://doi.org/10.2139/ssrn.1620237","url":null,"abstract":"In this paper we study a two-echelon supply chain with a retailer serving a consumer who is sensitive to marketing and pricing promotions. This results in either positively or negatively autocorrelated demand. Based on the observed consumer demand, the retailer replenishes with an adaptive order-up-to inventory policy satisfying a pre-specified fill rate. We assume the manufacturer produces the retailer’s orders on a make-to-order basis and he decides on the lead time based on the retailer’s order pattern. We analyze the interaction between the consumer demand process, the retailer’s replenishment decision (and corresponding safety stock decision), and the manufacturer’s production lead time. We encounter a lead time/safety stock dependency problem – the retailer’s replenishment decision depends on the expected manufacturer’s lead time, whereas the actual manufacturing lead time depends on the replenishment decision (order size) – and develop an exact iterative procedure to solve this interaction effect. Surprisingly, given equal variability, a negatively autocorrelated, period-to-period oscillatory consumer demand provides shorter lead times and lower safety stocks as opposed to a positively autocorrelated, meandering consumer demand.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132055556","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Investigating Reservation Policies of Advance Orders in the Presence of Heterogeneous Demand","authors":"Bisheng Du, C. Larsen","doi":"10.2139/ssrn.1589525","DOIUrl":"https://doi.org/10.2139/ssrn.1589525","url":null,"abstract":"We consider an inventory system, operated by a base stock policy and serving two customer classes. One customer class, Class 1, does not provide any advance demand information at all, while the other, Class 2, does. In order to reward a customer of Class 2 for providing advance order information, it may be sensible to make reservations for the order in the inventory system, thereby preventing later arriving orders from getting access to the inventory before this particular order. We propose various reservation policies and study their impact on the performance of the inventory system.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123126026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Base Stock Policies with Degraded Service to Larger Orders","authors":"Bisheng Du, C. Larsen","doi":"10.2139/ssrn.1398665","DOIUrl":"https://doi.org/10.2139/ssrn.1398665","url":null,"abstract":"We study an inventory system controlled by a base stock policy assuming a compound renewal demand process. We extend the base stock policy by incorporating rules for degrading the service of larger orders. Two specific rules are considered, denoted as Postpone(q,t) and Split(q), respectively. The parameter q distinguishes between regular orders (of size less than or equal to q) and larger orders. We develop mathematical expressions for the performance measures: order fill rate of the regular orders and average on-hand inventory level. We make numerical experiments where the postpone parameter t and the base stock levels of each rule are such that all customers (of both order types) are indifferent between the two rules. When comparing the difference in the average on-hand inventory levels, we can then make an assessment of the threshold value of the cost of splitting an order (which may otherwise be hard to quantify) in the rule Split(q). Our numerical results indicate that this threshold value is increasing in the variance of the order sizes. Based on the numerical experiment our conclusion is therefore that when the variance of the order sizes is low, then Postpone(q,t) seems to be a good option, while when the variance is high, then Split(q) is more competitive.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"285 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124550925","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Remanufacturing","authors":"S. Bernard","doi":"10.2139/ssrn.1571095","DOIUrl":"https://doi.org/10.2139/ssrn.1571095","url":null,"abstract":"Remanufacturing is a form of recycling where used durable goods are refurbished to a condition comparable to new products. With reduced energy and resource consumption, remanufactured goods are produced at a fraction of the original cost and with lower emissions of pollution. This paper presents a theoretical model of remanufacturing where a duopoly of original manufacturers produce a component of a final good. The component needing to be replaced creates an aftermarket. An environmental regulation assessing a minimum level of remanufacturability is also introduced. The main results indicate that a social planner could use collusion of the firms on the level of remanufacturability as a substitute for environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. One of the results also coincides with the Porter Hypothesis.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134511333","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Bi-Criteria Measure to Assess Supply Chain Network Performance for Critical Needs Under Capacity and Demand Disruptions","authors":"Q. Qiang, A. Nagurney","doi":"10.2139/ssrn.1731943","DOIUrl":"https://doi.org/10.2139/ssrn.1731943","url":null,"abstract":"In this paper, we develop a supply chain/logistics network model for critical needs in the case of disruptions. The objective is to minimize the total network costs, which are generalized costs that may include the monetary, risk, time, and social costs. The model assumes that disruptions may have an impact on both the network link capacities as well as on the product demands. Two different cases of disruption scenarios are considered. In the first case, we assume that the impacts of the disruptions are mild and that the demands can be met. In the second case, the demands cannot all be satisfied. For these two cases, we propose two individual performance indicators. We then construct a bi-criteria indicator to assess the supply chain network performance for critical needs. An algorithm is described which is applied to solve a spectrum of numerical examples in order to illustrate the new concepts.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"91 ","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120940833","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Managing Supply Chain Risk - Role of It/Is","authors":"Ravi T. Seethamraju","doi":"10.2139/ssrn.2157360","DOIUrl":"https://doi.org/10.2139/ssrn.2157360","url":null,"abstract":"Measures aimed at making supply chains more efficient and responsive have also made them more vulnerable and exposed to disruptions. These measures include increased off-shoring and outsourcing of manufacturing and product development activities, contract manufacturing, global sourcing, lean operations with reduced inventories, centralised distribution and warehousing, reduction of supplier base and tightly integrated supply chains. In addition to this increased sensitivity of supply chains, a significant increase in the frequency and number of events leading to major disruptions, and their magnitude is forcing organizations to take supply chain risk more seriously. This paper discusses the concept of supply chain risk, supply chain risk management, its dimensions and the role of information technologies in general, and enterprise systems in particular. It will discuss the challenges faced by business organizations in leveraging existing and future information technologies and systems and their double-edged role. While industry reference models have the potential to internalise supply chain risk management processes, their ability in identification and mitigation of the supply chain risk is limited and depends upon other IT-dependent factors, such as information visibility, trust, security of intellectual property information, ability to collect snapshots of demand, inventory and capacity at key nodes in the supply chain, and the sense and respond capability of the organization to deal with material flow disruptions.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"73 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123483350","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Supply Chain Flexibility: Review and Future Directions","authors":"Wei Wei, Charles Møller","doi":"10.2139/ssrn.1463066","DOIUrl":"https://doi.org/10.2139/ssrn.1463066","url":null,"abstract":"The importance of flexibility has long been known in operations management and it is becoming a central issue in supply chain management. However, the terminology and methodology differ among researchers, leading to unsystematic theories. This paper surveys the recent high-quality literature, synthesizes the knowledge about relevant practices, their antecedents and consequences into a framework, which acts as common platform for modeling and empirical studies, and suggests future research directions. Risks, information, flexibility and control over demand or supply are identified as core issues and their interplay deserves further investigation.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115035312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Push or Pull? Auctioning Supply Contracts","authors":"Cuihong Li, Alan Scheller-Wolf","doi":"10.2139/ssrn.1335049","DOIUrl":"https://doi.org/10.2139/ssrn.1335049","url":null,"abstract":"Consider a buyer, facing uncertain demand, who sources from multiple suppliers via online procurement auctions (open descending price-only auctions). The suppliers have heterogeneous production costs, which are private information, and the winning supplier has to invest in production capacity before the demand uncertainty is resolved. The buyer chooses to offer a push or pull contract, for which the single price and winning supplier are determined via the auction. We show that with a pull contract, the buyer does not necessarily benefit from a larger number of suppliers participating in the auction, due to the negative effect of supplier competition on the incentive of supplier capacity investment. We thus propose an enhanced pull mechanism that mitigates this effect with a floor price. We then analyze and compare the outcomes of auctions for push and (enhanced) pull contracts, establishing when one form is preferred over the other based on the buyer's profits. We also compare our simple, price-only push and pull contract auctions to the optimal mechanisms, benchmarking the performance of the simple mechanisms as well as establishing the relative importance of auction design and contract design in procurement auctions.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123496375","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Leveraging Knowledge in Buyer-Supplier Alliances: A Theoretical Integration","authors":"Senthilkumar Muthusamy, Daesik Hur, Ramaraj Palanisamy","doi":"10.1504/IJMDM.2008.021217","DOIUrl":"https://doi.org/10.1504/IJMDM.2008.021217","url":null,"abstract":"Global competition, ever-demanding customer expectations, and rapid technological changes are forcing firms to restructure the scope of operations and then outsource non-core processes to outside suppliers. Such organisational efforts have resulted in increased dependence on supplier firms to sustain competitive advantage. This paper provides a theoretical model to understand the process of successful learning and knowledge transfer in buyer-supplier alliances. The proposed model uses a social exchange framework for effective knowledge exchange and learning. Reciprocal commitment, interorganisational trust, power sharing, and socialisation are identified as essential for collaborative behaviour for successful learning and knowledge transfer between alliance partners. Specific testable propositions are presented.","PeriodicalId":129698,"journal":{"name":"Supply Chain Management eJournal","volume":"132 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116043163","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}