Production Networks in East Asia: What We Know So Far

Production networks in East Asia, particularly in the manufacturing and machinery industries, are well recognized as the most advanced in the world, in terms of their magnitude, extensiveness, and sophistication. This paper tries to link various economic studies on related topics, to see how much we understand about production networks in East Asia. After providing a brief overview of international trade statistics, the paper reviews a number of academic papers concerning (i) the structure and mechanics of production networks, (ii) the conditions for production networks, and (iii) the properties and implications thereof.fragmentation; agglomeration; vertical specialization; multinational enterprises; foreign direct investment

Real-time optimization of an integrated production-inventory-distribution problem.

In today\u27s competitive business environment, companies face enormous pressure and must continuously search for ways to design new products, manufacture and distribute them in an efficient and effective fashion. After years of focusing on reduction in production and operation costs, companies are beginning to look into distribution activities as the last frontier for cost reduction. In addition, an increasing number of companies, large and small, are focusing their efforts on their core competencies which are critical to survive. This results in a widespread practice in industry that companies outsource one or more than one logistics functions to third party logistics providers. By using such logistics expertise, they can obtain a competitive advantage both in cost and time efficiency, because the third party logistics companies already have the equipment, system and experience and are ready to help to their best efforts. In this dissertation, we developed an integrated optimization model of production, inventory and distribution with the goal to coordinate important and interrelated decisions related to production schedules, inventory policy and truckload allocation. Because outsourcing logistics functions to third party logistics providers is becoming critical for a company to remain competitive in the market place; we also included an important decision of selecting carriers with finite truckload and drivers for both inbound and outbound shipments in the model. The integrated model is solved by modified Benders decomposition which solves the master problem by a genetic algorithm. Computational results on test problems of various sizes are provided to show the effectiveness of the proposed solution methodology. We also apply this proposed algorithm on a real distribution problem faced by a large national manufacturer and distributor. It shows that such a complex distribution network with 22 plants, 7 distribution centers, 8 customer zones, 9 products, 16 inbound and 16 outbound shipment carriers in a 12-month planning period can be redesigned within 33 hours. In recent years, multi-agent simulation has been a preferred approach to solve logistics and distribution problems, since these problems are autonomous, distributive, complex, heterogeneous and decentralized in nature and they require extensive intelligent decision making. Another important part in this dissertation involved a development of an agent-based simulation model to cooperate with the optimal solution given by the optimization model. More specifically, the solution given by the optimization model can be inputted as the initial condition of the agent-based simulation model. The agent-based simulation model can incorporate many other factors to be considered in the real world, but optimization cannot handle these as needed. The agent-based simulation model can also incorporate some dynamics we may encounter in the real operations, and it can react to these dynamics in real time. Various types of entities in the entire distribution system can be modeled as intelligent agents, such as suppliers, carriers and customers. In order to build the simulation model more realistic, a sealed bid multiunit auction with an introduction of three parameters a, ß and y is well designed. With the help of these three parameters, each agent makes a better decision in a simple and fast manner, which is the key to realizing real-time decision making. After building such a multi-agent system with agent-based simulation approach, it supports more flexible and comprehensive modeling capabilities which are difficult to realize in a general optimization model. The simulation model is tested and validated on an industrial-sized problem. Numerical results of the agent-based simulation model suggest that with appropriate setting of three parameters the model can precisely represent the preference and interest of different decision makers

Simulation and optimization of a multi-agent system on physical internet enabled interconnected urban logistics.

An urban logistics system is composed of multiple agents, e.g., shippers, carriers, and distribution centers, etc., and multi-modal networks. The structure of Physical Internet (PI) transportation network is different from current logistics practices, and simulation can effectively model a series of PI-approach scenarios. In addition to the baseline model, three more scenarios are enacted based on different characteristics: shared trucks, shared hubs, and shared flows with other less-than-truckload shipments passing through the urban area. Five performance measures, i.e., truck distance per container, mean truck time per container, lead time, CO2 emissions, and transport mean fill rate, are included in the proposed procedures using real data in an urban logistics case. The results show that PI enables a significant improvement of urban transportation efficiency and sustainability. Specifically, truck time per container reduces 26 percent from that of the Private Direct scenario. A 42 percent reduction of CO2 emissions is made from the current logistics practice. The fill rate of truckload is increased by almost 33 percent, whereas the relevant longer distance per container and the lead time has been increased by an acceptable range. Next, the dissertation applies an auction mechanism in the PI network. Within the auction-based transportation planning approach, a model is developed to match the requests and the transport services in transport marketplaces and maximize the carriers’ revenue. In such transportation planning under the protocol of PI, it is a critical system design problem for decision makers to understand how various parameters through interactions affect this multi-agent system. This study provides a comprehensive three-layer structure model, i.e. agent-based simulation, auction mechanism, and optimization via simulation. In term of simulation, a multi-agent model simulates a complex PI transportation network in the context of sharing economy. Then, an auction mechanism structure is developed to demonstrate a transport selection scheme. With regard of an optimization via simulation approach and sensitivity analysis, it has been provided with insights on effects of combination of decision variables (i.e. truck number and truck capacity) and parameters settings, where results can be drawn by using a case study in an urban freight transportation network. In the end, conclusions and discussions of the studies have been summarized. Additionally, some relevant areas are required for further elaborate research, e.g., operational research on airport gate assignment problems and the simulation modelling of air cargo transportation networks. Due to the complexity of integration with models, I relegate those for future independent research

Green port development in Hong Kong - reduction of marine and port-related emissions

The Conference proceedings' website is located at http://www.hsmc.edu.hk/images/scm_CallForPaper/Conference%20Proceedings.pdfThe impact of air pollutant emissions from shipping and port operations towards environment and health is a pressing global concern. The marine and port sectors have contributed significantly to the growth of the supply chain industry and the economic development, while, at the same time, the pollutant emissions rising from ships and port-related operations have inflicted adverse public health concerns. Leading ports and terminals continuously impose measures to reduce the greenhouse gas emitted during vessel berthing. Hong Kong, being the third largest container port in the world and having the second cruise terminal running into operation, urgently requires comprehensive green port operations and practices. This paper evaluates and benchmarks the latest measures conducted by the leading ports over the world in reducing the greenhouse gas emissions from ship and port operations. International regulations, onshore power supply, vessel speed reduction, and fuel switching are analyzed. Recommendations on the future green port development in Hong Kong are proposed.postprin

HOW TO MINIMIZE RISK: THE IMPLEMENTATION OF PUBLIC SECTOR SERVICES ELECTRONIC PROCUREMENT IN INDONESIA

The trend of corruption cases in the types of goods and services procurement cases handled by the Corruption Eradication Commission of the Republic of Indonesia in 2004-2019 shows an increasing number in every year. In certain types of case studies the implementation of e-Procurement with e-Cataloq is proven to play a role in reducing the risk of corrupt practices in public organizations. The objectives of this research are to build an e-Procurement implementation model in Indonesia especially on electronic identity card procurement, identify external factors that encourage individuals to commit fraudulent behavior and the approval of procurement process of government goods and services. We operate a qualitative method with a case study on the implementation of e-Procurement of electronic identity cards. The results of the study explained that the implementation model of the procurement of goods and services using the e-Purchasing method through the e-Catalog mechanism is the best e-Procurement implementation model in the procurement of government goods and services specifically for the case of procurement of electronic identity cards

Management of food cold chains traceability amid the COVID-19 pandemic

The present article considers the functioning of food supply chains and their major component — a continuous cold chain of perishable food products, including meat products, under the conditions of COVID‑19 pandemic. The issues of the impact of the pandemic on production, processing and commercial supply of meat and meat products in Russia and worldwide are being considered. The traceability of temperature fluctuations in meat processing plants is relevant; it becomes an increasingly important factor for efficient logistics to provide the best supply and to keep the food safe in the current conditions. Research data is presented here. The results of the research show that frozen foods serve as carriers and distributors of SARS-CoV‑2 infection without any contact between people. This conclusion highlights additional challenges in controlling the spread of COVID‑19 worldwide, and reveals the mechanism of the disease transmission, taking into account the peculiarities of temperature modes during storage and transportation of perishable meat products. The risks of food cold chains functioning under the conditions of pandemic, the adaptive strategies for their mitigation and logistical systems of tracking are considered, in particular, the application of various data technologies

Analysis of Current Supplier Relationship Management Practices: A Solution Proposal

The work contributes with the existing literature by investigating current SRM practices. Based on the research, the author has designed an information system framework, which provides companies with an innovative SRM solution to manage their indirect material purchasing process through an environment that supports companies entire plan-to-order activities, including functionalities such as central data management, spend data management, e-sourcing and the usual e-procurement features

Assessing West Java Supply Chain Financing System (SCFS) Using SWOT Analysis

Supply chain system implementation consists of two necessary elements, the network design and the information technology (IT). In West Java, Supply Chain Center (SCC) implementation notion is based on the province’s current SMEs circumstances, including low financial performance, decentralized data, and no roadmap between actors. This research analyzes West Java Supply Chain Financing System (SCFS) using strengths, weaknesses, opportunities, and threats (SWOT) analysis. Qualitative methodology was employed for this research. First, the primary data was collected from focus group discussion (FGD) and the secondary data was obtained from West Java government documents. Second, this research used SWOT analysis from collected data which generate nine alternative strategies to build effective SCFS to cope with identified issues and its implications to expand rural financial services, supply chains, and overall sustainable development

Collaborative systems and business models to support the forest products industry

La concurrence internationale, notamment dans l'industrie des produits forestiers, est en constante augmentation et elle oblige les entreprises à produire des produits novateurs, à satisfaire la demande de plus en plus personnalisée des clients et à chercher l'accès à de nouveaux marchés. Néanmoins, les entreprises n'ont pas nécessairement la capacité d'atteindre ces réalisations individuellement. Par conséquent, établir une collaboration avec d'autres organisations pourrait les aider à résoudre des problèmes, qui peuvent ne pas être résolus individuellement. Dans cette recherche, la pertinence de la collaboration dans l'industrie des produits forestiers et des modèles d'affaires possibles pour l'établissement d'une cour de triage forestier sont étudiés, dans le but d'aider les investisseurs potentiels, les analystes commerciaux et les gestionnaires à avoir une analyse approfondie et rapide des aspects commerciaux clés de ces activités. La première partie de cette recherche examine les principaux moteurs, avantages, facilitateurs et défis des collaborations dans l'industrie des produits forestiers, afin d'aider les entreprises à identifier les mécanismes de collaboration les mieux adaptés à leur initiative de collaboration particulière. Un cadre conceptuel est élaboré pour identifier les diverses composantes affectant les mécanismes de collaboration pour créer une collaboration réussie dans l'industrie des produits forestiers. La deuxième partie de cette recherche examine les aspects commerciaux critiques de l'établissement d'une cour de triage forestier pour faciliter l'accès à la ressource tout en supportant une collaboration entre les parties prenantes. Pour atteindre cet objectif, le modèle d'affaires proposé par Osterwalder et Pigneur (2010) est appliqué pour développer des modèles spécifiques au cas d'une cour de triage. Deux canevas de modèles d'affaires différents sont donc proposés et peuvent être applicables aux entreprises pour analyser l'aspect commercial de la mise en œuvre d'une cour de triage forestier. Une analyse de planification stratégique (FFOM) est développée pour répertorier les forces, les faiblesses, les opportunités et les menaces associées à ces modèles.International competition, particularly in the forest products industry, is constantly increasing and it forces companies to produce innovative products, satisfy more customized demand, and develop new markets. Nevertheless, firms do not necessarily have the ability to reach these achievements individually. Therefore, establishing a collaboration with other organizations could help them in solving problems, which may not be solved individually. In this research, the relevance of collaboration in the forest products industry as well as possible business models to establish a log sort yard are investigated with the aim of giving potential investors, business analysts, and managers a detailed overview of the key business aspects of these business units. The first part of this research investigates the main drivers, benefits, facilitators, and challenges of collaborations in the forest products industry, in order to help firms identify the best-fit collaborative mechanisms for their particular collaborative initiative. A conceptual framework is elaborated to identify the various components affecting the collaboration mechanisms needed to create successful collaboration in the forest products industry. The second part of this research investigates the critical business aspects of establishing a log sort yard related to its specific goal and support collaboration. To reach this goal, the Business Model Canvas proposed by Osterwalder and Pigneur (2010) is applied to develop possible business models for log sort yards. Two different business models are proposed which may be useful to firms to analyze the business aspect of implementing a log sort yard. A strategic planning analysis (SWOT analysis) is developed to list the strengths, weaknesses, opportunities and threats associated with these models

Electronic Business (EB) in the Context of Global Sourcing: A Proposed Framework

Global sourcing operates under the challenges and pressures of intensive global-wide competition. Global sourcing can benefit from the functionality of electronic business (EB) by exhibiting more flexible structures and added opportunities in communications and transactions with partners among worldwide supply chains/networks. This study aims to answer two research questions, “what are the relationships between global sourcing and EB?” and “how do EB applications and strategies help global sourcing lead to better performance?” Our literature review addresses the relationships between global sourcing and EB from three perspectives: the applied theories, the covered business scope, and the changing roles of flows. In analyzing the potential benefits of EB to global sourcing, the enhancement on SC components and alignment effects are discussed. Finally, a framework is proposed to highlight how EB and global sourcing interact with each other, resulting in five major issues: the enhancement of SC components, the changing micro-environment, the effect of accelerating evolution of global sourcing, the integration of activities, and the significant improvement on outcomes