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Book part
Publication date: 20 October 2015

Mohammad Shamsuddoha

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured…

Abstract

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78560-707-3

Keywords

Article
Publication date: 8 February 2016

Premaratne Samaranayake and Tritos Laosirihongthong

The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under…

1417

Abstract

Purpose

The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under dynamic and uncertain conditions.

Design/methodology/approach

The research methodology consists of two stages: configuration of a conceptual framework of integrated supply chain model linked with performance measures and illustration of the integrated supply chain model and delivery performance using a case of dairy industry. The integrated supply chain model is based on a unitary structuring technique and forms the basis for measuring and evaluating supply chain performance. Delivery performance with variation of demand (forecast and actual) is monitored using a fuzzy-based decision support system, based on three inputs: capacity utilization (influenced by production disruption), raw materials shortage and quality of dairy products.

Findings

Integration of supply chain components (materials, resources, operations, activities, suppliers, etc.) of key processes using unitary structuring approach enables information integration in real time for performance evaluation and monitoring in complex supply chain situations. In addition, real-time performance monitoring is recognized as being of great importance for supply chain management in responding to uncertainties inherent in the operational environment.

Research limitations/implications

Implementation of an integrated model requires maintenance of supply chain components with all necessary data and information in a system environment such as enterprise resource planning.

Practical implications

The integrated model provides decision-makers with an overall view of supply chain components and direct links that need to be maintained for supply chain performance evaluation and monitoring. Wider adaptation and diffusion of the proposed model require further validation of the model and feasibility of implementation, using real-time data and information on selected performance measures.

Originality/value

Integration of supply chain components across supply chain processes directly linked with performance measures is a novel approach for effective supply chain performance evaluation and monitoring in complex supply chains under dynamic and uncertain conditions.

Details

Journal of Modelling in Management, vol. 11 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 2 September 2014

Renwen Wang, Shuliang Zhao, Wei Song, Luca Cacciolatti, Xinyue Zhang, Chris Sausman and Yelin Fu

The purpose of this paper is to investigate the effects of product substitutability on sales performance of integrated and decentralised supply chains. The authors model supply

Abstract

Purpose

The purpose of this paper is to investigate the effects of product substitutability on sales performance of integrated and decentralised supply chains. The authors model supply chain performance effects by applying a Cournot equation to a combination of different industry configurations. The study aims to extend existing equilibria models in different supply chains by including the effects of product substitutability on supply chain performance. By extending existing equilibria models, the authors explore the relationship between the degree of product substitutability, chain structure and chain performance when some actors of the supply chain behave as Stackelberg leaders in a duopoly.

Design/methodology/approach

The paper models a supply chain performance by applying a Cournot equation to different supply chain structures in a duopoly.

Findings

The findings indicate that, for each specific-supply chain structures in different market configurations, when product substitutability reaches a certain threshold decentralised supply chains outperform integrated chains, in disagreement with common belief in current existing literature.

Research limitations/implications

The study is limited to the application of differential equations in a competitive market configured as a duopoly. Future studies might extend the same model to a competitive market characterised by more than two actors. The findings imply that current tendency of lean implementations through integrated supply chains does not always favour supply chain performance.

Practical implications

The paper includes implications for the development of a stronger differentiation strategy based on consumer value when markets are characterised by high-product substitutability.

Originality/value

These findings highlight the importance of differentiation and consumer-value generation in markets that follow Nash equilibria as opposed to the current focus on price competition.

Details

International Journal of Productivity and Performance Management, vol. 63 no. 7
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 11 August 2021

Jumpei Hamamura

This study aims to analytically explore the economic role of transfer pricing in a vertically integrated supply chain with a direct channel, specifically when it uses cost-based…

Abstract

Purpose

This study aims to analytically explore the economic role of transfer pricing in a vertically integrated supply chain with a direct channel, specifically when it uses cost-based transfer prices, as is frequently observed in management practices. We compare two representative transfer pricing methods: full-cost and variable-cost pricing. Although many firms open a direct channel, which affects the optimal decision on transfer prices, prior literature has not considered this case.

Design/methodology/approach

We demonstrate the results using a non-cooperative game theoretical approach.

Findings

The results show that full-cost pricing is more profitable than variable-cost pricing when the fixed cost allocation to the marketing division is low, contrary to the established position in prior studies, from which I select their benchmark case. Moreover, we obtain a counterintuitive result, whereby, the firm-wide profit of a vertically integrated supply chain increases with fixed cost allocation.

Originality/value

This study considers the direct channel and internal transfer pricing in a vertically integrated supply chain, while prior research only considers one or the other. This model suggests an optimal choice of cost-based transfer pricing in managerial decisions. In addition, the authors demonstrate the positive effect of increasing fixed cost allocation, which prior management studies do not show. The findings of this study have implications for managerial practice by providing insights into supply chain design and showing that firms should consider the competition between channels when making decisions about transfer pricing methods.

Details

Journal of Modelling in Management, vol. 17 no. 4
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 14 March 2008

Dean Elmuti, William Minnis and Michael Abebe

The purpose of this article is to investigate the impact of integrated supply chain management on productivity, efficiency, and performance of participants in the system, in an…

2583

Abstract

Purpose

The purpose of this article is to investigate the impact of integrated supply chain management on productivity, efficiency, and performance of participants in the system, in an industrial setting in the USA.

Design/methodology/approach

This study uses longitudinal and experiment field study. Actual organizational data from the survey firm was used. Follow‐up interviews were conduced with key managers in the manufacturing facility.

Findings

The results show positive and substantial improvements in overall performance as a result of integration and coordination of the internal functions within the firm and effectively linking them with their external suppliers. The results also support the claims that an integrated supply chain involves aligning outsourcing activities to achieve the organizational goal of responding positively to the needs of consumers. Several factors were identified as key contributors to supply chain program success in this firm. These included sharing information through new technologies, established partnerships with key suppliers, and constant communication with employees.

Research limitations/implications

Organizations must realize that integration and coordination in each stage of the supply chain design, planning and operation result in considerable impact on the complete chain. Firms should realize that it takes commitment and skill to implement an integrated supply chain program and reap its benefits. Managers interested in applying an integrated supply chain management system would benefit from this study.

Originality/value

This exploratory empirical study provides insight into the effectiveness of implementing an integrated supply chain management approach for increasing the probability of success in the supply chain management approach and identifies areas that need further investigation.

Details

Supply Chain Management: An International Journal, vol. 13 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 September 2002

R. Meenakshi Sundaram and Sameer G. Mehta

A comparative study of three different approaches on a hypothetical supply chain model is presented. The three approaches investigated are: independent; semi‐integrated; and…

3433

Abstract

A comparative study of three different approaches on a hypothetical supply chain model is presented. The three approaches investigated are: independent; semi‐integrated; and integrated. In the independent approach, it is assumed that decisions are made independently at three different levels. Decisions are assumed to be made at two different levels in the semi‐integrated approach. In the integrated approach, all decisions are assumed to be made at a single level.

Details

International Journal of Physical Distribution & Logistics Management, vol. 32 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 21 July 2021

Huailiang Zhang, Yan Zhou and Minghui Jiang

Based on the idea of part standardisation and product differentiation in lean management, this paper answers the question when integrate firms should choose market foreclosure to…

186

Abstract

Purpose

Based on the idea of part standardisation and product differentiation in lean management, this paper answers the question when integrate firms should choose market foreclosure to maximise profits by studying a two-tier supply chain, which contains three types of firms: suppliers, manufacturers and integrated firms. Moreover, the effect of the substitutability between final products and the competition among firms in the supply chain would be investigated from the perspective of dynamic analysis.

Design/methodology/approach

Considering the decision order of integrated firms and manufacturers in the downstream of the supply chain, the authors build three competition models. In each model, integrated firms compete with manufacturers in Bertrand–Nash fashion. And, suppliers compete with each other in Cournot fashion, so do integrated firms and manufacturers. The authors further discuss how the competitive relationship between firms affect the equilibrium result.

Findings

Numerical analysis reveals that under other conditions unchanged, the increased competition between downstream firms leads to the rise in the willingness of selling parts for integrated firms, while the increase in the number of suppliers has the opposite effect. In addition, due to the market change before and after the vertical merger, it may lead to the transition from profitable to unprofitable for the vertical merger.

Originality/value

This paper provides a theoretical analysis and managerial implication for integrated firms' market foreclosure decision. From the perspective of dynamic analysis, this paper demonstrates the result of vertical mergers and provides an explanation for the failure of vertical mergers.

Details

Kybernetes, vol. 51 no. 9
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 4 November 2014

Sanjay Sharma and Akshat Sisodia

The purpose of this paper is to compare various inventory policies and their effect on various performance metrics at different levels of a multi stage supply chain. Later the…

Abstract

Purpose

The purpose of this paper is to compare various inventory policies and their effect on various performance metrics at different levels of a multi stage supply chain. Later the model is integrated to include optimization of entire supply chain through implementation of collaborative supply chain model.

Design/methodology/approach

Alternative inventory policies have been developed at different echelons and a comparison reflecting the usability on various factors such as inventory level, inventory cost and service level is presented so as to support the decision-making process. Various inventory policies such as economic order quantity, periodic ordering (T, M) and stock to demand have been considered. Along with the basic assumptions; lead time, demand variability, variability in demand during lead time, stock out costs have also been included to make the model more applicable to practical situations.

Findings

After the selection of most appropriate inventory policy at each level through a decision matrix, the total cost of operating such a supply chain is calculated along with other parameters such as service level and inventory turns. The approach is of aggregating the optimized value at each echelon referred to as aggregated supply chain in the paper. Then the concept of integrated supply chain is introduced which optimizes the supply chain as a whole, rather than aggregating local optima. The comparison is made between the two approaches that prove the integrated supply chain's superiority. Furthermore, dependent optimization is run as it is not practically possible for each echelon to optimize at the same time.

Originality/value

Each echelon is allowed to optimize at a time and other echelons assume corresponding values. This final comparative multi criterion analysis is based on the three factors, i.e. inventory cost, customer service level and inventory turnover with different weights assigned to each factor at different levels of a supply chain. Finally a consolidation of results is made to reflect the overall preference which proves that an integrated supply chain best serves all the parameters combined together.

Details

International Journal of Productivity and Performance Management, vol. 63 no. 8
Type: Research Article
ISSN: 1741-0401

Keywords

Book part
Publication date: 4 December 2014

Katrin Molina-Besch and Henrik Pålsson

For packed products, packaging affects every logistical activity and thus the overall economic and ecological efficiency (eco-efficiency) of supply chains. The purpose of this…

Abstract

Purpose

For packed products, packaging affects every logistical activity and thus the overall economic and ecological efficiency (eco-efficiency) of supply chains. The purpose of this research is to explore how integrated approaches are used in packaging development processes to increase eco-efficiency along supply chains and how a set of pre-selected factors influences the adoption of practically integrated approaches within companies.

Methodology/approach

The research approach is explorative and based on nine cases in the food and manufacturing industries in Sweden. In total, 26 semi-structured interviews were conducted.

Findings

The chapter describes the way in which companies work with ‘integrative’ packaging development process elements. It explores how four factors – product characteristics, packaging requirements, logistical conditions and environmental efforts – influence their approach.

Research limitations/implications

The study analyses the packaging development processes at a limited number of companies in Sweden.

Practical implications

The findings can help logistics managers to better understand how integrated approaches can be applied in packaging development processes to increase eco-efficiency of logistical processes along the supply chain. The study provides logistic managers also with information about which influencing factors can serve as facilitators or barriers to these approaches in their organisations.

Originality/value

Previous research has demonstrated the potential economic and environmental benefits of integrating a logistics perspective into the packaging development process. This study complements existing knowledge by presenting extensive empirical data on the practical application of integrated approaches in packaging development processes in industry.

Article
Publication date: 14 July 2023

Kiran Patil, Vipul Garg, Janeth Gabaldon, Himali Patil, Suman Niranjan and Timothy Hawkins

This paper aims to examine how interfirm transactional and relational assets drive firm performance (FP) in digitally integrated supply chains.

Abstract

Purpose

This paper aims to examine how interfirm transactional and relational assets drive firm performance (FP) in digitally integrated supply chains.

Design/methodology/approach

The authors combine the Transaction Cost Economics (TCE) and Relational Exchange Theory (RET) frameworks to hypothesize that FP will be a function of Asset Specificity (AS), Digital Technology Usage (DTU) and Collaborative Information Sharing (CIS). In addition, the authors hypothesize that Supply Chain Integration (SCI) will partially mediate the effect of DTU and fully mediate the impact of AS and CIS on FP. A cross-sectional survey of supply chain managers is used to test the hypotheses.

Findings

Findings indicate that specific investments in digitally integrated supply chains would increase FP. In addition, SCI fully mediates the relationships between AS and FP and CIS and FP, while SCI partially mediates the influence of DTU on FP.

Practical implications

Managers could strategically engage in the technologies that effectively fit within the firm’s supply chain strategies and seek to develop a pragmatic expertise that enables the effective use of technology in a comprehensive setting.

Originality/value

The study enriches the extant literature by incorporating TCE and RET as contradictory viewpoints on AS and investigating how transactional and relational assets affect FP in digitally integrated supply chains.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

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