A three layer supply chain model with multiple suppliers, manufacturers and retailers for multiple items

The replenishment size/production lot size problem both for perfect and imperfect quality products studied in this paper is motivated by the optimal strategy in a three layer supply chain consisting of multiple suppliers, manufacturers and retailers. In this model, each manufacturer produces each product with a combination of several raw materials which are supplied by each supplier. The defective products at suppliers and manufacturers are sent back to the respective upstream members at lower price than the respective purchasing price. Finally, the expected average profits of suppliers, manufacturers and retailers are formulated by trading off set up costs, purchasing costs, screening costs, production costs, inventory costs and selling prices. The objective of this chain is to compare between the collaborating system and Stakelberg game structure so that the expected average profit of the chain is maximized. In a numerical illustration, the optimal solution of the collaborating system shows a better optimal solution than the approach by Stakelberg

New Product Development and Product Supply Within a Network Setting: The Case of the Chilled Ready-Meal Industry in the UK

This paper analyses inter-organizational networks that link together firms operating in the food processing and distribution industry in the UK. In doing so, the paper draws on insights recently developed by Mark Casson that treat inter-firm networks as an institutional response to the changing costs and opportunities of information management. Detailed analysis of product innovation and supply chain management issues within the industry, exemplified by the growth of chilled ready-meals, leads to the identification of two distinct but complementary inter-firm networks: a network of control and a network of innovation. In each case, the study finds that the critical information is derived from the retailers’ interface with consumers and thus that these information-based networks are effectively controlled by the leading supermarket chains. The study’s conclusions are considered in relation to the recent findings of the Competition Commission following its investigation into grocery retailing in the UK

Data Synchronization Technology: Standards, Business Values and Implications

The Internet-enabled connectivity has created opportunities for businesses to conduct various forms of collaborative activities. However, the findings of several surveys indicate that the deficiencies in data quality might compromise the potential benefits of joint efforts. Global data synchronization (GDS), the process of timely updating product data to maintain the data consistency among business partners, is viewed as the key to materialize the benefits of e-collaboration in the global supply chain setting. In the paper, we present the need for data synchronization, discuss the evolution of technical standards of data identification schemes, and introduce the Global Data Synchronization Network (GDSN), the platform on which global data synchronization is substantiated. We detail the structure of GDSN and the protocols for the process of GDS. Furthermore, we discuss business and management implications of GDS, different approaches to implementing GDS, and challenges to the implementation of GDS. The emergence of GDS and GDSN presents research opportunities on issues relating to the implementation of GDS, the relationship between GDSN and EPCglobal Network, the impact of GDS on inter-organizational relationships, the network effect of global standards, and evolution of complementary standards. We discuss these research opportunities. In brief, the article covers the history, present status, and future of GDS and GDSN, as well as their potentials, benefits, and implementation issues

Growth of Additive Manufacturing Due to Global Pandemic and its Effect on Supply Chain Management

Additive manufacturing is a revolutionary technology because of its ability to creates objects by adding material layer by layer rather than removing material from a block or by moulding procedure. Additive manufacturing has been around for more than three decades but still, traditional manufacturing is the dominant method for manufacturing. COVID-19 pandemic has been a torment globally and has brought distress and instability to the global economy. Due to this, the manufacturing sectors are badly affected. In this time of crisis, additive manufacturing has played a major role. This paper discusses the upsurge of Additive manufacturing due global COVID-19 pandemic and its worldwide impact on supply chain management

Managing supply disruption in a three-tier supply chain with multiple suppliers and retailers

© 2014 IEEE. In this paper, a supply disruption management model is introduced in a three-tier supply chain with multiple suppliers and retailers, where the system may face sudden disruption in its raw material supply. At first, we formulated a mathematical model for ideal conditions and then reformulated it to revise the supply, production and delivery plan after the occurrence of a disruption, for a future period, to recover from the disruption. Here, the objective is to minimize the total cost during the recovery time window while being subject to supply, capacity, demand, and delivery constraints. We have also proposed an efficient heuristic to solve the model and the results have been compared, with another established solution approach, for a good number of randomly generated test problems. The comparison showed the consistent performance of our developed heuristic. This paper also presents some numerical examples to explain the usefulness of the proposed approach

Toward the Inter-organizational Product Information Supply Chain – Evidence from the Retail and Consumer Goods Industries

Since the 1980s, the retail and consumer goods industries have been making very extensive use of EDI-based data exchange and subsequently developed the vision of Efficient Consumer Response (ECR). In the meantime, a growing number of studies report that poor data quali¬ty, in particular out¬dated or wrong product information, negatively impacts demand and supply chain performance. Whereas prior literature intensively studied the positive effects of information sharing on the coordination of supply and demand, this research is aimed at establishing a basis for understanding the phenomena of the underlying inter-organizational product information supply chain. Using coordination theory as an overarching framework, the main research contribution is a set of dependencies, coordination problems, and coordination mechanisms that characterize the product information supply chain. From an analysis of two retailer-manufacturer relationships, we conclude that flow and sharing dependencies evolve into reciprocal dependencies as the intensity of demand and supply collaboration increases. We also find that industry standards ?notably Global Data Synchronization (GDS) ?do not yet fully cover the inter-organizational coordination requirements that result from the identified set of sharing and flow dependencies

Static efficiency in Dutch supermarket chain

In this study, we analyse changes in market power in the Dutch supermarket chain and discuss the effects on welfare. The supermarket chain includes consumers, supermarkets, buyer groups and food manufactures. We look at the theoretical background of market power. �Special attention has been paid to recent theories of buyer power of retailers in the vertical chain. Theory suggests that supermarkets can enhance their buyer power by, for instance, using own private brands as an outside option in bargaining with manufacturers. Using firm-level data, indicators reveal that profit margins of both supermarkets and of manufacturers have declined between 1993 and 2005. Hence, competition on these markets seems to have become tougher and mark-ups lower over time. Furthermore, we find no significant empirical indications that supermarkets were able to use their buyer power to shift profits from manufacturers to supermarkets after 1993. Finally, all else equal, in terms of welfare consumers have benefited from fiercer competition in terms of lower prices.

The role of packaging in minimising food waste in the supply chain of the future

This report focuses on packaging opportunities that may help to reduce or recover food waste, proposes opportunities for industry to address food waste through innovative and sustainable primary, secondary and tertiary packaging. Food security is an emerging challenge for policy makers and companies in the food supply chain. The global population is expected to grow to 9 billion and demand for food by 77% by 2050. Over the same period food production will be under threat from climate change, competing land uses, erosion and diminishing supplies of clean water. One of the solutions to this dilemma is increased efficiency and waste reduction in the food supply chain. This report focuses on packaging opportunities that may help to reduce or recover food waste. Packaging has a vital role to play in containing and protecting food as it moves through the supply chain to the consumer. It already reduces food waste in transport and storage, and innovations in packaging materials, design and labelling provide new opportunities to improve efficiencies. Product protection needs to be the primary goal for packaging sustainability, and sometimes this requires trade-offs between packaging and food waste. The report draws on an international literature review and interviews with representatives from 15 organisations in the Australian food and packaging supply chain. It considers food waste along the entire food supply chain, but with a particular emphasis on food waste that occurs prior to consumption, i.e. during agriculture production, post-harvest handling and storage of raw materials, and in the commercial and industrial (C&I) sector consisting of food manufacturing, wholesale trade, food retail and distribution and food services. Food rescue through charities is also a focus of the report. Over 4.2 million tonnes of food waste is disposed to landfill in Australia each year. Around 1.5 million tonnes of this is from the commercial and industrial sector (the focus of this report), costing around $10.5 billion in waste disposal charges and lost product. The largest single contributor in the commercial and industrial sector is food service activities (e.g., cafes, restaurants, fast food outlets), which generate 661,000 tonnes of food waste per year, followed by food manufacturing (312,000 tonnes) and food retail (179,000 tonnes). Most waste in food manufacturing is unavoidable, and almost 90% is already recovered as animal feed, compost or energy

Traceability system for capturing, processing and providing consumer-relevant information about wood products: System solution and its economic feasibility

Current research and practice reports indicate the existence of purchase barriers concerning eco-friendly products, e.g. wood products. These can be ascribed to consumers' mistrust regarding the non-observable environmental impact of wood products. To counter the mistrust, wood products are commonly endowed with eco-labels, which may be perceived mostly as a marketing tool, therefore not fulfilling their intended purpose. Current studies have shown that providing consumers with wood product information based on traceability systems increases product trust and purchase intentions, with those information items most valued by consumers being identified as well. Based on this, the paper proposes a traceability information system for the capturing, processing, and provision of product information using examples of wood furniture. Furthermore, a cost-benefit model for the proposed solution is developed. The calculations indicate the possibility of implementing traceability at the item level based on a four-layer system architecture enabling the capture and delivery of all information valued by consumers at acceptable costs. The proposed system helps to overcome purchase barriers of eco-friendly products, increasing consumers' product trust and purchase intentions

Critical Management Issues for Implementing RFID in Supply Chain Management

The benefits of radio frequency identification (RFID) technology in the supply chain are fairly compelling. It has the potential to revolutionise the efficiency, accuracy and security of the supply chain with significant impact on overall profitability. A number of companies are actively involved in testing and adopting this technology. It is estimated that the market for RFID products and services will increase significantly in the next few years. Despite this trend, there are major impediments to RFID adoption in supply chain. While RFID systems have been around for several decades, the technology for supply chain management is still emerging. We describe many of the challenges, setbacks and barriers facing RFID implementations in supply chains, discuss the critical issues for management and offer some suggestions. In the process, we take an in-depth look at cost, technology, standards, privacy and security and business process reengineering related issues surrounding RFID technology in supply chains