{"title":"AI in Logistics and Supply Chain Management","authors":"R. Boute, Maximiliano Udenio","doi":"10.2139/ssrn.3862541","DOIUrl":"https://doi.org/10.2139/ssrn.3862541","url":null,"abstract":"Artificial Intelligence (AI) applications are pervading logistics and supply chain management. The widespread availability of data, combined with sustained improvements in computing power, provide new opportunities to improve supply chain decision-making. Data may originate from digital logistics applications, or the connectivity of assets through Internet of Things technologies. AI can also facilitate the automation of well-defined workflows. Yet, while AI may appropriate certain tasks, we believe it will not make the job of the logistics planner obsolete. AI empowers and augments human capabilities. This chapter explores and demystifies the opportunities of AI for logistics and supply chain management.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127192392","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":"Product Market Risk, Financial Development and Firm Creation Along the Supply Chain","authors":"Minwen Li, Tanakorn Makaew, Vojislav Maksimovic","doi":"10.2139/ssrn.3758219","DOIUrl":"https://doi.org/10.2139/ssrn.3758219","url":null,"abstract":"We study the effects of product market risk on entrepreneurial activities in China, using a favorable change in U.S. trade policy as a plausibly exogenous shock. We do not find an increase in entry rates for domestic firms in exposed industry. However, for upstream suppliers, entry rates increase significantly in undeveloped cities, but decrease in developed cities. We also find that domestic entrepreneurs in undeveloped areas are more likely to enter the upstream industry by exporting following the shock. Our results suggest that the product market shock only increases domestic firm formation in China at one remove along the supply chain.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"2014 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114683025","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":"Stock Price Movement Cross-Predictability in Supply Chain Networks","authors":"J. Rios, K. Zhao, W. Street, J. Blackhurst","doi":"10.2139/ssrn.3737658","DOIUrl":"https://doi.org/10.2139/ssrn.3737658","url":null,"abstract":"In today’s interconnected business world, firms are part of a much larger interconnected supply chain network. Individual firms are not working in isolation but rather depend on, build, and leverage the connected nature of the supply chain network. In fact, an individual firm’s performance measures, such as stock return, can be impacted by other firms in the supply chain network. In this paper, we leverage structure and connections of firms in the supply chain network as well as each firms’ performance to predict a firm’s stock price movement. Using data from real-world supply chain connections, we build the supply chain network of firms in S&P500 and utilize this network to predict a firm’s stock movements by leveraging the performance of its network neighbors. We propose four different approaches to identify network neighbors for a focal firm based on its business partners, its network community, and its role in the supply chain network. Once neighbors of the focal firm are identified, we aggregate their performance with a set of network-based feature representations we developed. Experimental results show that our approach significantly improves the performance of stock movement prediction compared to traditional features proposed in the finance literature. We are also the first to show that the performance of a focal firm is associated not only with its business partners, but also with similar firms located farther away in the network. We then analyze the contribution of upstream suppliers and downstream customers of a firm to the prediction of its stock price movement. Managerial insights from our results can improve investment decision making, as well as help supply chain managers to proactively predict risks in the supply chain network rather than simply reacting to them.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129221724","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":"Operational Disruptions, Firm Risk, and Control Systems","authors":"W. Schmidt, A. Raman","doi":"10.2139/ssrn.3629801","DOIUrl":"https://doi.org/10.2139/ssrn.3629801","url":null,"abstract":"Problem definition: Operational disruptions can impact a firm’s risk, which manifests in a host of operational issues, including a higher holding cost for inventory, a higher financing cost for capacity expansion, and a higher perception of the firm’s risk among its supply chain partners. Academic/practical relevance: Although disruptions have been studied extensively in the operations management literature, the emphasis has been on mitigating the deleterious impact on the firm’s production potential rather than its risk. We examine whether implementing and credibly attesting to having effective internal control systems will meaningfully influence the impact of operational disruptions on the firm’s risk and market valuation. Methodology: We exploit a 2004 regulatory change that required certain firms to attest to having control systems in place. Our triple-difference regression specification takes advantage of a regulatory anomaly that excluded a well-defined set of firms from complying with the control system requirement. Results: We find that firms that were obligated to comply with this regulatory requirement experienced a materially smaller increase in their risk and a smaller decrease in their market value in the aftermath of an operational disruption. Firms that were not obligated to comply with this requirement did not experience such benefits in the aftermath of a disruption and instead, experienced a larger increase in their risk. Managerial implications: Fostering a better understanding of whether credible control systems can reduce the impact of disruptions on the firm’s risk and value is important as it identifies a broader set of mitigation strategies available to operations managers. This can help managers achieve a better fit between their risk mitigation initiatives and their objectives and budget constraints.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"58 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121233768","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}
Vilachoor Srinivasan Kumar Vilachoor Srinivasan Kumar, Dr Utham Kumar, Dr. R. Thenmozhi
{"title":"Importance of Supply Chain Integration in Auto Industry","authors":"Vilachoor Srinivasan Kumar Vilachoor Srinivasan Kumar, Dr Utham Kumar, Dr. R. Thenmozhi","doi":"10.34218/jom.6.2.2019.007","DOIUrl":"https://doi.org/10.34218/jom.6.2.2019.007","url":null,"abstract":"The Auto Industry plays an significant role in the Indian Economy. The current challenges in manufacturing of Automobile involves the role of Supply Chain Management. The effectiveness of the function could be enhanced by the Integration of SCM especially in Auto industry wherein the research is undertaken. The detailed description of the process, The study deals with integration is given an approach of explanatory design and questionnaire are used as an instrument to capture the main data furthermore the study also uses descriptive statistics with the help of SPSS for quantitative data analysis. To link the dependant and independent variables, a conceptual framework is developed, to stress the needs and importance of integration of SCM. The study reveals the importance of supplies innovatives.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116019869","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":"Warranty Length, Product Reliability, and Secondary Markets","authors":"Wayne Fu, A. Atasu, Necati Tereyağoğlu","doi":"10.2139/ssrn.3273621","DOIUrl":"https://doi.org/10.2139/ssrn.3273621","url":null,"abstract":"Problem definition: Inspired by variations in warranty length specifications in the U.S. automotive industry, we study how a durable good producer’s product warranty length choice relates to its product reliability. We introduce a producer’s secondary market interference (e.g., buyback of used products) as a possible driver for such variations observed in practice. Methodology/results: Using an analytical model of a monopolist finitely durable good producer, we first study the interaction between product reliability and the producer’s warranty length choice in the presence of secondary market interference. This analysis suggests that a durable good producer’s warranty length offering is U-shaped in its product reliability. That is, only producers with sufficiently low or high product reliability benefit from offering longer product warranties. Otherwise, a short warranty offering is preferred. We show that this result is driven by a producer’s strategic use of secondary market interference. We then test the predictions from these results in the automotive industry. An exploratory analysis of U.S. automotive industry data also suggests a U-shaped association between warranty offerings and product reliability, and points to the theoretically predicted dependency between producers’ secondary market interference and warranty length. Managerial implications: Producers with sufficiently high product reliability will benefit from longer warranties, as longer warranty coverage has marginal impact on their new product demand cannibalization by used products and warranty fulfillment costs. In contrast, producers with sufficiently low product reliability can use secondary market interference to jointly avoid the cannibalization from used products and high warranty fulfilment costs associated with long warranties for low reliability products. Producers with moderate product reliability, on the other hand, cannot leverage secondary market interference as effectively, and benefit more from shorter warranty offerings.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"35 9","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120905781","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":"Financing Strategies for a Capital-Constrained Supplier under Yield Uncertainty","authors":"Hongjun Peng, Tao Pang","doi":"10.2139/ssrn.2862074","DOIUrl":"https://doi.org/10.2139/ssrn.2862074","url":null,"abstract":"We consider a supply chain consisting of a supplier and a distributor, in which the supplier has a capital constraint and faces productivity yield uncertainty. To solve the capital constraint problem, we propose an advance payment with risk compensation (APRC) mechanism, under which the distributor finances the supplier with an advance payment, and the supplier provides a price discount to compensate the distributor for the supplier's bankruptcy risk. The optimal solutions are derived under the APRC mechanism and the results indicate that under the APRC, the whole supply chain performs as well as if there is no capital constraint, in terms of profits and optimal strategies. Therefore, the APRC is an efficient solution for the supplier's capital constraint issue. In addition, when the deficit is big, the APRC provides an alternative financing arrangement and it can bring higher profits for both parties. Another very interesting finding is that, when the capital deficit is small, the supplier can do better with the bank loan financing, despite that a higher interest rate needs to be paid in this case.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123851012","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":"The Missing Link? The Strategic Role of Procurement in Building Sustainable Supply Networks","authors":"Verónica H. Villena","doi":"10.2139/ssrn.3310919","DOIUrl":"https://doi.org/10.2139/ssrn.3310919","url":null,"abstract":"The increasing number of scandals about supplier violations of environmental and social regulations has put multinational companies’ (MNCs) reputations at risk. Customers make MNCs accountable for such violations, regardless of whether the violations involve tier‐one or lower‐tier suppliers. To address this pressure, some MNCs require their tier‐one suppliers to comply with their sustainability requirements and ask them to “cascade” such requirements to their (lower‐tier) suppliers. This research investigates why this cascading effect often fails. I used inductive research to study three supply networks in the automotive, electronics, and pharmaceutical/consumer product industries. Three MNCs, 9 tier‐one suppliers, 22 lower‐tier suppliers, and 3 industry associations participated. This research (a) reveals that to cascade a buyer's sustainability requirements, the buyer's procurement unit needs to directly engage the supplier's procurement unit; (b) identifies three key interlinked procurement processes—assessing, training, and incentivizing—involving both suppliers and procurement personnel who are instrumental in building sustainable supply networks; and (c) shows how the lack of collaboration between procurement and internal (i.e., sustainability and R&D) and external stakeholders (i.e., industry associations) limits an MNC's effort to promote sustainability throughout the supply network. Thus, this study highlights procurement's strategic role in building sustainable supply networks and suggests important research directions for how to achieve sustainability throughout the supply networks.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127860719","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":"The Relationship between Green Purchasing Supply Chain Initiatives that Foster the Development of Management and Firm in Malaysia","authors":"S. Shari","doi":"10.2139/ssrn.3090095","DOIUrl":"https://doi.org/10.2139/ssrn.3090095","url":null,"abstract":"Purpose – The purpose of this paper is to propose that the drivers and develop three dimension which is regulatory measures, customer pressure and socio-cultural responsibility that motivate firms to adopt green supply chain management into a supply chain initiatives. Green supply chain management has been acknowledged as a key factor to promote organizational sustainability. Design/methodology/approach – Data were collected through a survey questionnaire responded by 100 senior executive in the industry in Malaysia. The relationships proposed in the developed theoretical framework were represented through three hypothesis: H1- there is a significant relationship between regulatory measures and green purchasing supply chain. H2- There is a significant relationship between customer pressure and green purchasing supply chain. H3- there is a significant relationship between socia-cultural responsibility and green purchasing supply chain. Linear regression, ANOVA and Pearson correlation were used to test the hypotheses. Findings – Strong evidence was found of a positive relationship between regulatory customer pressures and socia-cultural responsibility with the green purchasing supply chain. Green purchasing was most strongly influenced and significant by customer pressures and socia-cultural responsibility, whilst regulatory measures was not strongly influenced by green purchasing supply chain and not significant. Practical Implication - Based on the findings, the regulatory measures did not influences or affect the green purchasing supply chain initiatives in the form at Malaysia this is because the firm only apply the green supply chain due to the law that required in their firm only not because of their product or environment itself. In Malaysia, monitoring of individual business behavior continues to find a high incidence of non-compliance. This may reflect surveillance effort rather than attitudes to environmental responsibility, but it suggests that business acceptance of regulatory obligations needs to be strengthened before increasing the reliance on voluntary improvement initiatives. Originality/value - The role of the drivers is crucial in motivating these firms to adopt green supply chain initiatives and facilitate their adoption. Firms in emerging countries need to realize that green supply chain initiatives can result in significant benefits to their firms, environment, and the society at large which gives them additional incentives to adopt these initiatives.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"85 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121925195","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}
Kevin D. Sweeney, Yuliang Yao, R. Windle, Yongrui Duan, Jia-zhen Huo
{"title":"When Less is More: Estimating the Effect of Product Variety on Retail Operational Performance","authors":"Kevin D. Sweeney, Yuliang Yao, R. Windle, Yongrui Duan, Jia-zhen Huo","doi":"10.2139/ssrn.2982022","DOIUrl":"https://doi.org/10.2139/ssrn.2982022","url":null,"abstract":"Managing product variety has long been a concern for firms from many different industries, with less product variety typically associated with higher operational performance. However, most contemporary research on product variety has looked at its impacts on the operations and sales performance of manufacturing firms. In this research, we investigate the impact of product variety on the operational performance at a retail setting. The distinction between retailer and manufacturer is important because of the unique product assortment issues retailers face, such as selling competing brands, offering many different types of product categories, or product substitutability. Using data gathered over a 7-month period for two product categories, we develop econometric models and find that product variety has a positive effect on inventory levels, and that this impact is moderated by product category substitutability. We also find that product variety increases product availability in product categories that are more substitutable, with a 1% increase in product variety leading to 0.67% fewer stockouts in some product categories. Our findings suggest both a positive and negative impact of product variety on operational performance.","PeriodicalId":421794,"journal":{"name":"PROD: Empirical (Supply) (Topic)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114217448","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}