scholarly journals Effect of Additional Order in Two-Stage Supply Chain Contract under the Demand Uncertainty

Computation ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 37
Author(s):  
Suphannee Chueanun ◽  
Rawee Suwandechochai
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Demand Uncertainty ◽  
Two Stage ◽  
Supply Chain Contract ◽  
Decentralized System ◽  
Numerical Studies ◽  
Total Profit ◽  
Buyback Contract ◽  
The Impact

In this work, mathematical models are formulated in order to investigate the effect of the additional order on the expected total profit of a two-stage supply chain. A multi-period buyback contract between a supplier and a retailer under the demand uncertainty is considered. Under the contract, an advance order is submitted to the supplier in advance when the demand is unknown, and an additional order can be made at the beginning of each period after the previous period demand is realized. The impact of the coordination on the supply chain’s expected total profit is also considered. The results show that the additional order does not always increases the supply chain profit. The additional order increases the supply chain profit only when both the retailer and supplier are coordinated. Under the decentralized system with the buyback contract, the retailer tends to order less in an advance order to reduce the risk. This leads to the higher cost due the additional order after the demand is realized. As a result, it is lowers the supply chain profit. Moreover, the sensitivity analysis is performed using numerical studies in order to observe the behavior of the expected total profit of the supply chain.

scholarly journals Robust Inferences from a Before-and-After Study with Multiple Unaffected Control Groups

2013 ◽  
Vol 1 (2) ◽  
pp. 209-234 ◽  
Author(s):  
Pengyuan Wang ◽  
Mikhail Traskin ◽  
Dylan S. Small
Keyword(s):  
Sensitivity Analysis ◽  
Control Groups ◽  
Two Stage ◽  
Time Effects ◽  
Unaffected Control ◽  
Group Time ◽  
Before And After ◽  
Group Variation ◽  
The Impact ◽  
Before And After Study

AbstractThe before-and-after study with multiple unaffected control groups is widely applied to study treatment effects. The current methods usually assume that the control groups’ differences between the before and after periods, i.e. the group time effects, follow a normal distribution. However, there is usually no strong a priori evidence for the normality assumption, and there are not enough control groups to check the assumption. We propose to use a flexible skew-t distribution family to model group time effects, and consider a range of plausible skew-t distributions. Based on the skew-t distribution assumption, we propose a robust-t method to guarantee nominal significance level under a wide range of skew-t distributions, and hence make the inference robust to misspecification of the distribution of group time effects. We also propose a two-stage approach, which has lower power compared to the robust-t method, but provides an opportunity to conduct sensitivity analysis. Hence, the overall method of analysis is to use the robust-t method to test for the overall hypothesized range of shapes of group variation; if the test fails to reject, use the two-stage method to conduct a sensitivity analysis to see if there is a subset of group variation parameters for which we can be confident that there is a treatment effect. We apply the proposed methods to two datasets. One dataset is from the Current Population Survey (CPS) to study the impact of the Mariel Boatlift on Miami unemployment rates between 1979 and 1982.The other dataset contains the student enrollment and grade repeating data in West Germany in the 1960s with which we study the impact of the short school year in 1966–1967 on grade repeating rates.

Service capacity coordination in IT services supply chain

2018 ◽  
Vol 13 (4) ◽  
pp. 952-972 ◽  
Author(s):  
Sanjay Kumar Prasad ◽  
Ravi Shankar
Keyword(s):  
Supply Chain ◽  
Demand Uncertainty ◽  
Degree Of Substitution ◽  
Future Research ◽  
It Services ◽  
Two Stage ◽  
Content Type ◽  
Optimal Capacity ◽  
Automated Software ◽  
Capacity Cost

Purpose The purpose of this paper is to investigate capacity coordination in services supply chain (SSC). It provides discussion and application of various contracts in a two-stage single period SSC. Design/methodology/approach This paper considers a two-stage serial supply chain with demand uncertainty and price insensitivity. A model is developed to represent a global IT SSC incorporating services specific factors like over-capacity cost and higher degree of substitution resulting in flexibility to meet unplanned demand. At first, centralized and competitive solutions of the model are studied. Then, the paper studies coordination in this supply chain using some of widely used contract templates. Findings This paper finds several key insights for the researchers and practitioners in this area around adverse impact of over-capacity cost on demand, positive effect of delivery team’s exposure to market on contracting terms and better understanding of efficient frontiers for selected contracting mechanism. Research limitations/implications This paper has limited its analysis to three key and most widely used contracts and made assumptions about risk-neutrality of the firms. Future research can study other contracting templates and/or relax for the model as laid out in this paper. Practical implications An automated software agent can be built leveraging the closed form equations developed here to help decide on optimal capacity investment and devise coordinating contracts. Originality/value This paper established that because of higher degree of substitution, perishability and non-trivial over-capacity cost, SSC behave bit differently than the physical goods supply chain and coordination of participating firms needs to be studied in a services specific context for improving system-wide performance.

Manufacturing and selling tactics for a green supply chain under a green cost sharing and a refund agreement

2020 ◽  
Vol 15 (4) ◽  
pp. 1419-1450 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Mahsa Noori-Daryan ◽  
Shib Sankar Sana
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Cost Sharing ◽  
Green Supply Chain ◽  
Chain Model ◽  
Content Type ◽  
Decentralized System ◽  
Quality Item ◽  
Decision Variables ◽  
Refund Rate

Purpose This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios. Demand depends on a price, refund and quality where the producer controls quality and the vendor proposes a refund policy to purchasers to encourage them to order more. Design/methodology/approach In the first scenario, the members seek to optimize their optimum decision variables under a centralized decision-making method while in the second scenario, a decentralized system is assumed where the members make a decision about variables and profits under a non-cooperative game. In the third scenario, a cost-sharing agreement is concluded between the members to provide a high-quality item to the purchasers. Findings The performance of the proposed model is investigated by illustrating a numerical example. A sensitivity analysis of some key parameters has been done to study the effect of the changes on the optimal values of the decision variables and profits. From sensitivity analysis, the real features are observed and mentioned in this section. Originality/value This research examines the behavior of partners in a green supply chain facing with a group of purchasers whose demand is the function of a price, greenery degree and refund rate. This proposed mathematical model is developed and analyzed which has an implication in supply chain model.

scholarly journals Product bundling and advertising strategy for a duopoly supply chain: a power-balance perspective

2020 ◽  
Author(s):  
Sarat Kumar Jena ◽  
Abhijeet Ghadge
Keyword(s):  
Supply Chain ◽  
Price Competition ◽  
Market Size ◽  
Power Balance ◽  
Supply Chain Network ◽  
Product Bundling ◽  
Advertising Strategy ◽  
Advertising Effort ◽  
Total Profit ◽  
The Impact

AbstractThe paper studies product bundling in a duopoly supply chain network under the influence of different power-balance structures, bundling decisions and advertising efforts on total supply chain profit. Mathematical models comprising two manufacturers and a single retailer are developed to capture the impact of bundling policy and advertisement strategy under three power-balance structures, namely Manufacturer Stackelberg, Retailer Stackelberg and Vertical Nash. Following game theory models and numerical examples, the study found that the total profit of the supply chain is undifferentiated under the manufacturer Stackelberg and Vertical Nash case in the manufacturer bundling and retailer bundling strategies. However, total supply chain profit under manufacturer bundling strongly dominates under retailer bundling in Retailer Stackelberg and Vertical Nash, and remains valid under multiple settings of market size, price elasticity and advertising elasticity. It is also found that manufacturer bundling is significantly affected by advertising effort compared to retailer bundling. The study contributes to the literature interfacing supply chain and marketing by studying bundling policy and advertising strategy simultaneously for homogenous products, under various power-balance structures and price competition.

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.

Research on Supply Chain Profit Coordination Mechanism Based on JIT Lot-Splitting

2013 ◽  
Vol 694-697 ◽  
pp. 3466-3471
Author(s):  
Qin Lv
Keyword(s):  
Supply Chain ◽  
Cost Saving ◽  
Bargaining Power ◽  
Simulation Analysis ◽  
Coordination Mechanism ◽  
Two Stage ◽  
Total Cost ◽  
Lot Splitting ◽  
The Impact ◽  
Stackelberg Leader

A supply chain profit coordination mechanism based on JIT lot-splitting, which involves a two stage supply chain consisted of a supplier and a buyer, is discussed. Based on the bargaining power of supplier, the profit coordination with and without incentives are respectively explored. For the total cost minimizations of buyer and supplier separately, two stage stackelberg leader-follower game models, in which buyer is the leader and supplier is the follower, are established. Supplier applies JIT delivery to reduce buyer’s cost and the total cost of the supply chain via dividing buyer’s order per batch into some batches to deliver. Finally, a numerical example and a simulation analysis are given and the impact of the variation of relative parameters on the total cost saving of buyer, supplier and system is discussed. In addition, the efficiency of game decision on the basis of JIT lot-splitting is proved.

scholarly journals Two-Stage Pricing Decision for Low-Carbon Products Based on Consumer Strategic Behaviour

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Cheng Che ◽  
Zhihong Zhang ◽  
Xiaoguang Zhang ◽  
Yi Chen
Keyword(s):  
Low Carbon ◽  
Carbon Product ◽  
Two Stage ◽  
Strategic Consumers ◽  
Strategic Behaviour ◽  
Product Pricing ◽  
Pricing Decision ◽  
Total Profit ◽  
Time Changes ◽  
The Impact

The development of information technology has changed the pricing strategy of retailers, and consumers have also made strategic consumption behaviours accordingly. At the same time, changes in the environment have caused changes in the retailer’s products and raised consumers’ environmental awareness. This paper uses a two-stage pricing model to study the low-carbon product pricing decisions of retailers based on strategic consumers with low-carbon preferences in two situations. Through the analysis of low-carbon and ordinary products in two situations, the following conclusions can be drawn: (1) In a market where retailers only sell low-carbon products, product prices and profits increase as consumers’ green preference θ increases. (2) In the low-carbon product and ordinary product markets, the price and profit of low-carbon products increase with regard to consumers’ green preference θ . (3) In the second stage, when consumers’ intertemporal discount factor β for ordinary products is larger than that of low-carbon products, the retailer’s total profit is smaller. The research conclusion comprehensively analyses the impact of customer strategic behaviour on the two-stage pricing decision of green differentiated products, which provides a very important reference for retailers to make pricing optimization decisions.

scholarly journals COVID-19 Disruption Strategy for Redesigning Global Supply Chain Network across TPP Countries

Logistics ◽  
2021 ◽  
Vol 6 (1) ◽  
pp. 2
Author(s):  
Takaki Nagao ◽  
Hiromasa Ijuin ◽  
Tetsuo Yamada ◽  
Keisuke Nagasawa ◽  
Lei Zhou
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Integer Programming ◽  
Supply Chains ◽  
Positive Impact ◽  
Cost Minimization ◽  
Global Supply Chain ◽  
Supply Chain Network ◽  
Structural Effects ◽  
The Impact

Background: COVID-19 has disrupted and adversely affected supply chains worldwide. A global supply chain network that considers disruptions is needed. This study strategically analyzes the economic and structural effects of disruption on a global supply chain network with customs duty and the trans-pacific partnership (TPP) agreement. Methods: We present a cost minimization model which helps in understanding the difficulty of supplying materials or products to factories or customers if the supplier’s cities are facing disruption. This enables us to model and evaluate simultaneous considerations of supplier disruption, customs duty, and TPP in redesigning a global supply chain network. This network is modeled and formulated using integer programming, disruption scenarios, and a sensitivity analysis for customs duty. Results: Regarding the impact of disruptions on suppliers, two patterns emerge in the reconfigured network: direct changes due to supplier disruptions and indirect changes due to factory relocation. The sensitivity analysis for customs duty shows that the TPP has a positive impact on cost maintained, even in the presence of disruptions. Conclusions: Suppliers should be switched depending on the scale of disruption; when many distant suppliers need to be switched, the factory should be relocated to the country where these suppliers are located.

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