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1 – 10 of over 23000Zhen Hong, C.K.M. Lee and Linda Zhang
The purpose of this paper is twofold, first providing researchers with an overview about the uncertainties occurred in procurement including applicable approaches for analyzing…
Abstract
Purpose
The purpose of this paper is twofold, first providing researchers with an overview about the uncertainties occurred in procurement including applicable approaches for analyzing different uncertain scenarios, and second proposing directions to inspire future research by identifying research gaps.
Design/methodology/approach
Papers related to supply chain risk management and procurement risk management (PRM) from 1995–2017 in several major databases are extracted by keywords and then further filtered based on the relevance to the topic, number of citations and publication year. A total of over 156 papers are selected. Definitions and current approaches related to procurement risks management are reviewed.
Findings
Five main risks in procurement process are identified. Apart from summarizing current strategies, suggestions are provided to facilitate strategy selection to handle procurement risks. Seven major future challenges and implications related PRM and different uncertainties are also indicated in this paper.
Research limitations/implications
Procurement decisions making under uncertainty has attracted considerable attention from researchers and practitioners. Despite the increasing awareness for risk management for supply chain, no detail and holistic review paper studied on procurement uncertainty. Managing procurement risk not only need to mitigate the risk of price and lead time, but also need to have sophisticated analysis techniques in supply and demand uncertainty.
Originality/value
The contribution of this review paper is to discuss the implications of the research findings and provides insight about future research. A novel research framework is introduced as reference guide for researchers to apply innovative approach of operations research to resolve the procurements uncertainty problems.
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Chong Li and Kejia Chen
The purpose of this paper is to explore new methods to improve supply chain management in uncertain environment, more specifically, to tackle the uncertain demand problem and the…
Abstract
Purpose
The purpose of this paper is to explore new methods to improve supply chain management in uncertain environment, more specifically, to tackle the uncertain demand problem and the inventory optimization problem faced by most supply chain systems.
Design/methodology/approach
The paper develops a multi‐objective inventory optimization model, which combines the classic grey prediction GM(1,1) model with the metaheuristic method. The former is applied to achieve the forecasting mechanism in supply chain operations, and the latter is applied to optimize the model solution.
Findings
Results show that the grey‐based forecasting mechanism performs better than other prediction methods, such as the double exponential smoothing method used in this paper. The solution of the multi‐objective inventory optimization model is also improved with the integration of grey prediction method. These indicate the importance of a forecasting mechanism in supply chain management.
Originality/value
The paper succeeds in constructing a novel inventory optimization model and in providing a novel supply chain management framework. It shows for the first time that grey prediction method combined with metaheuristic method may be a valid approach to supply chain management under uncertain environment.
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Lingcheng Kong, Zhong Li, Ling Liang and Jiaping Xie
When the power generator faces uncertain and independent electricity spot price and renewable energy source supply, two different conditions need to be considered: the…
Abstract
Purpose
When the power generator faces uncertain and independent electricity spot price and renewable energy source supply, two different conditions need to be considered: the distributions of renewable energy source electricity and electricity spot price are independent or dependent. The purpose of this paper is to explore the capacity investment strategy under volatile electricity spot price when renewable energy penetration rate is low, taking into account these two conditions.
Design/methodology/approach
The authors design a capacity investment model under dual uncertainties and consider how to optimize the investment capacity in order to maximize profit under two different conditions.
Findings
The authors find that when renewable energy supply fluctuation is unrelated to spot electricity price fluctuation, the renewable energy power profitability is determined by the average cost of spot electricity price and equivalent cost. When renewable energy supply fluctuation is related to spot electricity price fluctuation, the renewable energy power profitability is determined by the market value and the construction and maintenance cost.
Practical implications
Faced with the conflict of the renewable energy supply, the authors need to understand how to plan the generation capacity with intermittent renewable sources. The result helps renewable energy become competitive in the electricity market under loose regulations.
Originality/value
The authors compare two capacity investment strategies that the renewable energy supply fluctuation is related and unrelated to spot electricity price.
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Linan Zhou, Gengui Zhou, Fangzhong Qi and Hangying Li
This paper aims to develop a coordination mechanism that can be applied to achieve the channel coordination and information sharing simultaneously in the fresh agri-food supply…
Abstract
Purpose
This paper aims to develop a coordination mechanism that can be applied to achieve the channel coordination and information sharing simultaneously in the fresh agri-food supply chain with uncertain demand. It seeks to elucidate how the producer can use an option contract to transfer the risk caused by uncertain demand, impel the retailer to share demand information and improve the performance of supply chain.
Design/methodology/approach
An option contract model based on the basic model of fresh agri-food supply chain is introduced to compare the production, profit, risk and information sharing condition of the supply chain in different cases. In addition, a case study focusing on the sale of autumn peaches produced by a local producer is investigated, which provides evidence of the applicability of the authors’ approach.
Findings
The optimal option contract can help the supply chain achieve channel coordination and reach Pareto improvement. In the meantime, such a contract will encourage the retailer to share market demand information with producer spontaneously and help maintain the strategic cooperation between two parties.
Research limitations/implications
This paper considers a single-producer, single-retailer system and both of them are risk neutral.
Practical implications
Presented results can be used as suggestions for improving the contract design of fresh agri-food supply chain in China and can also provide references for other countries with similar experiences as China in fresh agri-food production.
Originality/value
This research introduces the option contract into fresh agri-food supply chain and takes information sharing and the risk caused by uncertain demand into consideration.
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Xinxuan Cheng, Guoqing Yang and Longfei Fan
This paper aims to develop an uncertain global supply chain network design (GSCND) model with rules of origin (RoOs) and limited import quotas, and to discuss the international…
Abstract
Purpose
This paper aims to develop an uncertain global supply chain network design (GSCND) model with rules of origin (RoOs) and limited import quotas, and to discuss the international factors’ effects on location decisions.
Design/methodology/approach
The authors establish an uncertain GSCND model with the international factors. The transportation costs and customers’ demands are characterized as random variables. To deal with the risk of uncertainty, the authors introduce the customers’ demand service level. A sample approximation approach (SAA) is used to deal with the service level constraint and turn the proposed model into a mixed integer programming. On the basis of the properties of the proposed model, a hybrid memetic algorithm (MA) is designed to solve it.
Findings
The authors find that the proposed MA is efficient to the real supply chain network design problem. Besides, the RoOs and limited import quotas can affect the optimal choices of plant and distribution center locations.
Originality/value
The authors propose an uncertain GSCND model with RoOs and limited import quotas. An MA with SAA is designed to solve the proposed model. The authors apply the proposed model into a real global supply chain of an apparel corporation in East Asia, and give some managerial insights.
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Zhenning Zhu, Lingcheng Kong, Jiaping Xie, Jing Li and Bing Cao
In the hybrid electricity market, renewable energy power generator faces the uncertainty of power market demand and the randomness of the renewable energy generation output. In…
Abstract
Purpose
In the hybrid electricity market, renewable energy power generator faces the uncertainty of power market demand and the randomness of the renewable energy generation output. In order to improve the grid-connected quantity of green power, the purpose of this paper is to design the pricing mechanism for renewable energy power generator with revenue-sharing contract in a two-stage “multi-single” electricity supply chain which contains a single dominant power retailer and two kinds of power suppliers providing different power energy species.
Design/methodology/approach
Considering the dual uncertainties of renewable energy power output and power market demand, the authors design the full-cooperative contract decision-making model, wholesale price contract decision-making model and revenue-sharing contract decision-making model to compare and optimize grid-connected pricing in order to maximize profit of different parties in power supply chain. Then, this paper performs a numerical simulation, discusses the existence of the equilibrium analytical solutions to satisfy the supply chain coordination conditions and analyzes the optimal contract parameters’ variation characteristics and their interaction relationship.
Findings
The authors find that the expected profits of the parties in the hybrid power supply chain are concave about their decision variables in each decision-making mode. The revenue-sharing contract can realize the Pareto improvement for all parties’ interest of the supply chain, and promote the grid-connected quantity of green power effectively. The grid-connected price will reduce with the increase of revenue-sharing ratio, and this impact will be greater on the renewable energy power. The greater the competition intensity in power supply side, the smaller the revenue-sharing ratio from power purchaser. And for the same rangeability of competition intensity, the revenue-sharing ratio reduction of thermal power is less than that of the green power. The more the government subsidizing green power supplier, the smaller the retailer sharing revenue to it.
Practical implications
Facing with the dual uncertainties of green power output and market demand and the competition of thermal power in hybrid electricity market, this study can provide a path to solve the problem of renewable energy power grid-connecting. The results can help green power become competitive in hybrid power market under loose regulations. And this paper suggests that the government subsidy policy should be more tactical in order to implement a revenue-sharing contract of the power supply chain.
Originality/value
This paper studies the renewable energy electricity grid-connected pricing under the uncertainty of power supply and market demand, and compares different contract decision-making strategies in order to achieve the power supply chain coordination. The paper also analyzes the competition between thermal power and renewable energy power in hybrid electricity market.
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Shams Rahman and Christopher Findlay
Supply chains in East Asia are being redesigned following the reassessment of the risk of disruption through terrorist attacks. The nature of these risks and of the costs of the…
Abstract
Supply chains in East Asia are being redesigned following the reassessment of the risk of disruption through terrorist attacks. The nature of these risks and of the costs of the private sector responses is reviewed. The research available suggests the costs incurred are substantial. Government regulation applied to security matters also applies within supply chains. It too has been redesigned in response to the change in the risk of terrorist attacks. Examples of its impacts, and its costs and benefits, are presented. Relevant empirical work remains scarce, but principles for government's role can be identified.
Mahendrawathi Er and Bart MacCarthy
For manufacturing enterprises, today's business environment is characterised by globally dispersed supply and manufacturing networks. In addition, the level of variety in products…
Abstract
Purpose
For manufacturing enterprises, today's business environment is characterised by globally dispersed supply and manufacturing networks. In addition, the level of variety in products continues to increase in almost all sectors. Greater understanding of the management of product variety in international operations is required. Aims to discuss this issue.
Design/methodology/approach
A generic simulation model representing a multinational corporation (MNC) supply chain is used to investigate the impact on supply chain performance of increasing product variety in combination with supply lead‐time and demand uncertainty in an international setting. The simulation focuses on the upstream activities of production planning, inbound supply and manufacturing. The structure and logic of the simulation model are based on insights obtained from an empirical study of real MNC supply networks.
Findings
The study shows that increasing the level of product variety has a detrimental impact on supply chain performance. In the presence of supply lead‐time and demand uncertainty, high levels of variety result in much longer flow times and much higher system inventory relative to more stable conditions. The impact is greatest when variety involves critical materials which are required early in the production process and that entail long set‐up times.
Research limitations/implications
The study could be extended to incorporate more advanced inventory control models, the inclusion of downstream activities, multiple manufacturing sites and multiple potential supply routes.
Practical implications
Implications for the selection of suppliers and for inventory control policies are discussed in the context of international operations. The potential value of postponement strategies and the need in some cases for fundamental product and process redesign to mitigate the negative impacts of variety are highlighted.
Originality/value
Managing product variety in the context of international operations has received very little attention to date in the research literature. This study quantifies the potential impact of increasing product variety on supply chain performance in an international setting.
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Erno Salmela and Janne Huiskonen
The purpose of this paper is to promote decision-making structures between the customer and the supplier in a highly uncertain environment. This phenomenon of demand-supply chain…
Abstract
Purpose
The purpose of this paper is to promote decision-making structures between the customer and the supplier in a highly uncertain environment. This phenomenon of demand-supply chain synchronisation includes sharing of high-quality and timely demand and supply information in order to improve the quality and speed of decision-making.
Design/methodology/approach
The study was carried out as an abductive case study, which started from empirical observations that did not match the prior theoretical framework. Through abductive reasoning and empirical experiments, the prior framework was extended to a new synchronisation model and tools that better accommodate the observed need.
Findings
A new co-innovation toolbox was developed to create common understanding of demand-supply chain synchronisation between the customer and the supplier. The toolbox includes Demand Visibility Point-Demand Penetration Point, Supply Visibility Point–Supply Penetration Point and Integrative Synchronisation tools.
Research limitations/implications
The study extends the current models and tools of demand-supply chain synchronisation. With the new toolbox, the development needs of decision-making structures can be identified more comprehensively than with the current tools.
Practical implications
The developed visual toolbox helps partners create a common understanding of problems and development possibilities in demand-supply chain synchronisation in a highly uncertain environment. Common understanding is a starting point for changing decision-making structures to improve the overall performance of a demand-supply chain.
Originality/value
The new toolbox is both more comprehensive and more detailed than the previous tools.
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Keywords
In light of the recently experienced systemic shocks (the COVID-19 pandemic and the war in Ukraine), we investigate supply chain robustness. We aim to understand the potential…
Abstract
Purpose
In light of the recently experienced systemic shocks (the COVID-19 pandemic and the war in Ukraine), we investigate supply chain robustness. We aim to understand the potential consequences of uncertain events or adversary’s action on critical supplies in the Alliance.
Design/methodology/approach
We leverage a parsimonious supply chain model and investigate the relationship between upstream supplier concentration/diversification and the supply chain’s robustness (survival probability) in the presence of uncertain systemic shocks. In several scenarios of shock events, we simulate alternative input sourcing strategies in the presence of uncertainty.
Findings
A firm-level cost-focused optimisation may lead all upstream suppliers to concentrate in one location, which – when subsequently hit by a shock – would result in a disruption of the entire supply chain. A chain-level forward-looking optimisation diversifies the upstream supplier location and sourcing decisions. As a result, the supply chain’s survival probability is maximised, and critical supplies will continue even under the most demanding circumstances.
Research limitations/implications
Our findings encourage political and military decision makers to enhance upstream supply chain robustness in critical and strategic sectors, such as the diversification of nitrocellulose supplies currently sourced almost exclusively from China by European gunpowder manufacturers.
Practical implications
Our findings have direct recommendations to supply chain downstream decision makers and to the government’s policy choices. Since global supply chain (GSC) disruptions in critical sectors may have catastrophic impacts on social welfare and the probability of shocks such as COVID-19 and Russia’s war may not be known even approximately, robust decision rules seem to be the appropriate tools for policymaking in critical and strategic sectors such as energy supplies, food and water, communication and defence. A robust supply chain is one in which the survival probability is maximised, which we show in a central planner strategy’s simulations.
Originality/value
The paper shows formally why a market-based global input sourcing strategy may be efficient from an individual firm’s perspective but may be suboptimal from a societal resilience perspective.
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