scholarly journals Contracting for Competitive Supply Chains under Network Externalities and Demand Uncertainty

2016 ◽  
Vol 2016 ◽  
pp. 1-9 ◽  
Author(s):  
Xiaojing Liu
Keyword(s):  
Supply Chain ◽  
Demand Uncertainty ◽  
Network Externalities ◽  
Profit Sharing ◽  
Competition Model ◽  
Supply Chain Competition ◽  
Vertical Alliance ◽  
Product Substitutability ◽  
Uncertainty Environment ◽  
The Impact

Based on network externalities and demand uncertainty environment, supply chain competition model is built; we identify the valid mechanism for the alternative range of profit-sharing contracts and also analyze the effect of product substitutability coefficient and network externalities on the alliance and profit-sharing contract. The results show that the vertical alliance contributes profit improvement to both the manufacturer and the retailer when the impact of network externalities on the product substitutability is not strong. However, vertical alliance will be out of operation when the effect of network externalities on the product substitutability is strong.

The impact of supply chain fit on business and innovation performance in Brazilian companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Zimmermann ◽  
Luis Miguel D.F. Ferreira ◽  
Antonio Carrizo Moreira ◽  
Ana Cristina Barros ◽  
Henrique Luiz Correa
Keyword(s):  
Supply Chain ◽  
Business Performance ◽  
Demand Uncertainty ◽  
Supply And Demand ◽  
Empirical Studies ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Positive Effect

PurposeThis paper investigates the effect of the fit between supply and demand uncertainty (SDU) and supply chain responsiveness (SCR) (SC fit) on business and innovation performance in Brazilian companies.Design/methodology/approachThe study presented an analysis carried out on an empirical study based on a sample of 150 manufacturing companies. Business and innovation performance of companies with different types of SC fit ( high–high and low–low fits) and misfit (positive and negative) are compared and discussed.FindingsThe results indicated that SC fit had a positive effect on both business and innovation performance. Further analyses suggested that companies with SC fit present similar business performance, independent of the level of SDU that characterizes the environment where they compete, while companies in environments with higher levels of uncertainty tend to present superior innovation performance. Companies with positive and negative misfit present similar performance.Originality/valueAn analysis of the literature showed that there is no consensus when it comes to the definitions and measurements of SC fit. The paper investigates the effects of SC fit on business and innovation performance, while previous empirical studies have mainly addressed its impact on financial performance. Moreover, this study compares the effects of two types of fit and two types of misfit and assesses SC fit in Brazilian manufacturing companies, analyzing the context of an under-researched reality.

scholarly journals The Impact of Service and Channel Integration on the Stability and Complexity of the Supply Chain

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-27 ◽  
Author(s):  
Jianheng Zhou ◽  
Xingli Chen
Keyword(s):  
Supply Chain ◽  
Dynamic Models ◽  
Stackelberg Game ◽  
Profit Sharing ◽  
System Stability ◽  
Stable Region ◽  
Channel Integration ◽  
Profit Allocation ◽  
The Stability ◽  
The Impact

This paper constructs a supply chain consisting of a manufacturer and a retailer. Considering channel integration and service cooperation, two dynamic Stackelberg game models are established: one without unit profit allocation M and the other one with unit profit allocation Mε. In two dynamic models, we analyze the influence of relevant parameters on the stability and complexity of the dynamic system and system profit by nonlinear system theory and numerical simulation. We find that the higher adjustment parameters can cause the system to lose stability, showing double period bifurcation or wave-shape chaos. The stable region becomes larger with increase in service value and value of unit profit sharing. Besides, when the system is in chaotic state, we find that the profit of the system will fluctuate or even decline sharply; however, keeping the parameters in a certain range is helpful in maintaining the system stability and is conducive to decision-makers to obtain steady profits. In order to control the chaos phenomenon, the state feedback method is employed to control the chaotic system well. This study provides some valuable significance to supply chain managers in channel integration and service cooperation.

scholarly journals Supply Chain Contracts in Fashion Department Stores: Coordination and Risk Analysis

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Bin Shen ◽  
Pui-Sze Chow ◽  
Tsan-Ming Choi
Keyword(s):  
Supply Chain ◽  
Brand Management ◽  
Absolute Risk ◽  
Profit Sharing ◽  
Private Label ◽  
Fashion Industry ◽  
Department Stores ◽  
National Brand ◽  
Supply Chain System ◽  
The Impact

In the fashion industry, department stores normally trade with suppliers of national brands by markdown contract whilst developing private labels with cooperated designers by profit sharing contract. Motivated by this real industrial practice, we study a single-supplier single-retailer two-echelon fashion supply chain selling a short-life fashion product of either a national brand or a private label. The supplier refers to the national/designer brand owner and the retailer refers to the department store. We investigate the supply chain coordination issue and examine the supply chain agents’ performances under the mentioned two contracts. We find the analytical evidence that there is a similar relative risk performance but different absolute risk performances between the national brand and the private label. This finding provides an important implication in strategic interaction for the risk-averse department stores in product assortment and brand management. Furthermore, we explore the impact of sales effort on the supply chain system and find that the supply chain is able to achieve coordination if and only if the supplier (i.e., the national brand or the private label) is willing to share the cost of the sales effort.

scholarly journals Can Decentralization Drive Green Innovation? A Game Theoretical Analysis of Manufacturer Encroachment Selection with Consumer Green Awareness

Processes ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 990
Author(s):  
Dan Cao ◽  
Jin Li ◽  
Gege Liu ◽  
Ran Mei
Keyword(s):  
Supply Chain ◽  
Social Welfare ◽  
Stackelberg Game ◽  
Environmental Damage ◽  
Green Innovation ◽  
Online Sales ◽  
Dual Channel ◽  
Numerical Studies ◽  
Product Substitutability ◽  
The Impact

With the increase of public environmental awareness and the growth of e-commerce, sustainable development promotes the manufacturer to increasingly participate in green innovation and make full use of the online sales channel to enhance competitiveness. Despite decentralized encroachment being widely adopted in business reality, the current literature has commonly paid more attention to centralized encroachment. To complement related research, a dual-channel green supply chain composed of a manufacturer (its retail subsidiary) and a retailer is investigated. We focus on what encroachment strategy (centralization vs. decentralization) drives the green innovation and analyze the impact of consumer green awareness and product substitutability on the manufacturer’s encroachment strategy, green innovation efforts and supply chain performance. Under each encroachment strategy, we build a Stackelberg game model and derive the equilibrium outcome. Then, we theoretically analyze the effects of consumer green awareness and product substitutability on green innovation and each party’s profitability. Our comparative analysis shows what encroachment strategy drives green innovation and what encroachment strategy benefits both parties and social welfare. Numerical studies are also conducted to support the analytical results. Our key findings reveal that decentralization improves the green innovation and achieves a both-win situation for the manufacturer and the retailer. Besides that, decentralization can reduce the environmental damage and increase social welfare as well.

scholarly journals Floricultural supply chain network design and control: industry needs and modelling challenges

2015 ◽  
Vol 15 (1) ◽  
pp. 61-81 ◽  
Author(s):  
M. de Keizer ◽  
J.G.A.J. van der Vorst ◽  
J.M. Bloemhof ◽  
R. Haijema
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Demand Uncertainty ◽  
Decision Problems ◽  
Logistics Network ◽  
Key Stakeholders ◽  
And Control ◽  
Industry Needs ◽  
The Impact ◽  
Conceptual Research

The floricultural sector is facing market developments that have forced a redesign of the European logistics network. Via workshops and interviews with key stakeholders the main developments and industry needs are identified. These are then summarised in three central themes that require further investigation, i.e. decision problems (e.g. network design and control), context factors (e.g. demand uncertainty and product perishability), and objectives (e.g. efficiency and product quality). Thereafter, 17 articles that review Supply Chain Management (SCM) research are analysed to obtain more insight into the state-of-the-art on these themes and to identify the main issues within the themes and their interrelationships. This resulted in a conceptual research framework in which particular attention is given to how decision problems could be modelled and solved in order to get quantitative insights into the impact of logistics network redesign. Successively, 71 SCM articles were analysed in depth to classify current SCM research and to determine research gaps and challenges. Results show that Floricultural SCM research challenges can be found in integrated, quality-driven and responsive network design and control using hybrid optimisation and simulation.

Information Sharing in Supply Chain Management with Demand Uncertainty

2011 ◽  
pp. 44-62 ◽  
Author(s):  
Zhensen Huang ◽  
Aryya Gangopadhyay
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Demand Uncertainty ◽  
Bullwhip Effect ◽  
Supply Chain Performance ◽  
Chain Model ◽  
Simulation Approach ◽  
Supply Chain Model ◽  
Trading Partners ◽  
The Impact

Information sharing is a major strategy to counteract the amplification of demand fluctuation going up the supply chain, known as the bullwhip effect. However, sharing information through interorganizational channels can raise concerns for business management from both technical and commercial perspectives. The existing literature focuses on examining the value of information sharing in specific problem environments with somewhat simplified supply chain models. The present study takes a simulation approach in investigating the impact of information sharing among trading partners on supply chain performance in a comprehensive supply chain model that consists of multiple stages of trading partners and multiple players at each stage.

scholarly journals Trade credit or vertical merger strategy for financial constrained retailer in a supply chain with asymmetric competing retailers

2021 ◽  
Author(s):  
Jizhou Zhan ◽  
Tiantian Xu ◽  
Xun Xu
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Profit Sharing ◽  
Administrative Cost ◽  
Competition Intensity ◽  
Financing Policy ◽  
Vertical Merger ◽  
Horizontal Competition ◽  
Financing Strategy ◽  
The Impact

Motivated by the practices that many small and middle-sized enterprises (SME) retailers have financial constraints due to their limited budget and financing access, this paper studies the manufacturer's financial strategy (i.e., trade credit versus vertical merger with a capital-constrained retailer) in a supply chain with two financial asymmetric retailers. We first compare the equilibrium profits under different financing modes and find that if manufacturer's capital cost under trade credit or administrative cost under vertical merger is below a certain threshold, the manufacturer should finance instead of deselect the capital-constrained retailer even though the competition is intensified. Furthermore, manufacturer can choose a financing strategy based on the tradeoff between financing value and cost from trade credit or vertical merger. Under trade credit, the increased horizontal competition intensity is against the capital-constrained retailer while with vertical merger the competition intensity is harmful to the capital-abundant retailer. In addition, through investigating the impact of different financial modes on the equilibrium profits of the supply chain players, we find that whether trade credit can outperform vertical merger for both the manufacturer and the capital-constrained retailer depends on horizontal competition intensity, profit-sharing proportion and administrative cost of vertical merger. Moreover, the capital-abundant retailer will get the lowest profit when other participators act like an alliance. Our study provides a roadmap for the manufacturer to make a financing policy for capital-constrained retailer who competes with a funded retailer.

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