Strategic integration decision under supply chain competition in the presence of online channel

This study explores the pricing decisions of substitutable products for two competing supply chains in the presence of an online channel. Each supply chain consisting of a single manufacturer and an exclusive retailer and one of the manufacturers distributes products through the online channel. We examine optimal decisions under five scenarios to explore how the strategic cooperation between two manufacturers at the upstream horizontal level or with the retailer at the vertical level affects product pricing decisions and the performance of two supply chains? The results reveal that decisions for cooperation with competing manufacturers and opening an online channel are correlated. In the absence of an online channel, cooperation with their respective retailer can lead to a higher supply chain profit. However, if a manufacturer opens an online channel, then cooperation with competing manufacturers can lead to a higher supply chain profit. Under the vertical integration, total supply chain profit might be lower compared to a scenario where members in each supply chain remain independent. Consumers also need to pay more for products

Sustainable supply chain management towards disruption and organizational ambidexterity:A data driven analysis

Balancing sustainability and disruption of supply chains requires organizational ambidexterity. Sustainable supply chains prioritize efficiency and economies of scale and may not have sufficient redundancy to withstand disruptive events. There is a developing body of literature that attempts to reconcile these two aspects. This study gives a data-driven literature review of sustainable supply chain management trends toward ambidexterity and disruption. The critical review reveals temporal trends and geographic distribution of literature. A hybrid of data-driven analysis approach based on content and bibliometric analyses, fuzzy Delphi method, entropy weight method, and fuzzy decision-making trial and evaluation laboratory is used on 273 keywords and 22 indicators obtained based on the experts’ evaluation. The most important indicators are identified as supply chain agility, supply chain coordination, supply chain finance, supply chain flexibility, supply chain resilience, and sustainability. The regions show different tendencies compared with others. Asia and Oceania, Latin America and the Caribbean, and Africa are the regions needs improvement, while Europe and North America show distinct apprehensions on supply chain network design. The main contribution of this review is the identification of the knowledge frontier, which then leads to a discussion of prospects for future studies and practical industry implementation

SUPPLY CHAIN RISK MANAGEMENT IN AUTOMOTIVE INDUSTRY

The automotive industry is one of the world\u27s most important economic sectors in terms of revenue and employment. The automotive supply chain is complex owing to the large number of parts in an automobile, the multiple layers of suppliers to supply those parts, and the coordination of materials, information, and financial flows across the supply chain. Many uncertainties and different natural and man-made disasters have repeatedly stricken and disrupted automotive manufacturers and their supply chains. Managing supply chain risk in a complex environment is always a challenge for the automotive industry. This research first provides a comprehensive literature review of the existing research work on the supply chain risk identification and management, considering, but not limited to, the characteristics of the automotive supply chain, since the literature focusing on automotive supply chain risk management (ASCRM) is limited. The review provides a summary and a classification for the underlying supply chain risk resources in the automotive industry; and state-of-the-art research in the area is discussed, with an emphasis on the quantitative methods and mathematical models currently used. The future research topics in ASCRM are identified. Then two mathematical models are developed in this research, concentrating on supply chain risk management in the automotive industry. The first model is for optimizing manufacturer cooperation in supply chains. OEMs often invest a large amount of money in supplier development to improve suppliers’ capabilities and performance. Allocating the investment optimally among multiple suppliers to minimize risks while maintaining an acceptable level of return becomes a critical issue for manufacturers. This research develops a new non-linear investment return mathematical model for supplier development, which is more applicable in reality. The solutions of this new model can assist supply chain management in deciding investment at different levels in addition to making “yes or no” decisions. The new model is validated and verified using numerical examples. The second model is the optimal contract for new product development with the risk consideration in the automotive industry. More specifically, we investigated how to decide the supplier’s capacity and the manufacturer’s order in the supply contract in order to reduce the risks and maximize their profits when the demand of the new product is highly uncertain. Based on the newsvendor model and Stackelberg game theory, a single period two-stage supply chain model for a product development contract, consisting of a supplier and a manufacturer, is developed. A practical back induction algorithm is conducted to get subgame perfect optimal solutions for the contract model. Extensive model analyses are accomplished for various situations with theoretical results leading to conditions of solution optimality. The model is then applied to a uniform distribution for uncertain demands. Based on a real automotive supply chain case, the numerical experiments and sensitivity analyses are conducted to study the behavior and performance of the proposed model, from which some interesting managerial insights were provided. The proposed solutions provide an effective tool for making the supplier-manufacturer contracts when manufacturers face high uncertain demand. We believe that the quantitative models and solutions studied in this research have great potentials to be applied in automotive and other industries in developing the efficient supply chains involving advanced and emerging technologies

Modeling interactions between institutions of housing markets based on nonlinear functions of costs

Objective: to study the optimal pricing strategies of firms in the “realtor - bank - insurer” system under nonlinear cost functions.Methods: game theory, supply chain coordination, multi-criteria optimization. Results: the housing market is one of the most dynamically developing segments of the economy. Pricing patterns in this market are not always subject to market laws, since they are influenced by other factors, such as the availability of loans, the presence of agents, the rates in the insurance market, etc. To analyze the pricing processes, the authors consider a vertically integrated system of interaction of agents “realtor - bank - insurer”. A system of optimality conditions for housing market agents (realtor, bank, and insurer) under nonlinear cost functions is derived, corresponding to different types of scale effects. The results of numerical experiments are presented, showing the nature of price interdependencies in these markets in cases of convexity or concavity of the agents’ cost functions.Scientific novelty: in contrast to the “realtor - bank - insurer” system with linear cost functions, our study demonstrates the following insights: first, if all agents have concave cost functions, then the housing price, mortgage interest rate, and insurance rate are lower compared to the situation in which agents have convex cost functions; second, an increase in the intra-system commission rate leads to an increase in the price of the agent who pays the commission, and a decrease in the price of the agent who receives it; third, an increase in the commission rate causes a sharper reduction in the agent’s price if the agent has a convex cost function and the counterparty has a concave one, than in the opposite case.Practical significance: the results can be applied in the elaboration of state programs for the development of the housing market, mortgage subsidies and regulation of the insurance market; in addition, on the basis of our recommendations, firms in the “realtor - bank - insurer” system can make mutually beneficial decentralized decisions

Stakeholder Management in Maritime Logistics Ecosystems: How tackling the main challenges of the industry

This PhD thesis deals with stakeholder management theoretical constructs and empirical practices within maritime logistics ecosystems. The rationale of the study grounds on the recent shift of the academic literature\u2019s focus on maritime logistics from the single organisation to the whole business ecosystem. In this perspective, formal and informal relationships with business partners and related parties have been demonstrated to become fundamental for the survival and success of firms and organisations belonging to maritime logistics ecosystems. The constant dialogue and coordination of strategic and operational activities between the heterogeneous actors constitute the preconditions to build wider and more resilient networks as well as to generate benefits for all parties and stakeholders involved. In this context, stakeholder management theoretical constructs can provide maritime logistics firms and organisations with useful managerial practices and best practices for identifying and exploiting unprecedented opportunities to handle relationships and interactions with both business parties and different categories of stakeholders. The variety of actors belonging to maritime logistics ecosystems as well as the array of related stakeholders, that unveils heterogeneous needs and interests, urge further empirical research to disentangle multiple practices of stakeholder management that have not all been investigated yet. In this vein, collaborative and responsible behaviours from maritime logistics firms and other involved organizations may support key actors with facing the new environmental, social, and technological challenges shaping the industry. In this perspective, this PhD thesis examines the main theoretical constructs of stakeholder management by performing an extensive literature review to comprehend the foundations and managerial benefits of stakeholder relationship management and corporate social responsibility. Then, it provides four empirical research to disentangle both strategies and behaviours of different maritime logistics actors, stressing the business benefits and managerial opportunities emerging from the adoption of well-defined and planned stakeholder management practices. Each empirical research addresses multiple challenges (i.e., environmental, social, and technological challenges) and assumes the perspective of one of the key actors of the maritime logistics ecosystem (i.e., once port managing bodies, once shipping companies, and twice terminal operators). The thesis investigates specific dimensions related to the strategic objectives, behaviours, and managerial options of these actors for effectively managing the relationships with their salient stakeholders. The outcomes of empirical research provide four valuable exploratory and qualitative studies grounding on stakeholder management literature. Managerial implications for private, public and hybrid actors of maritime logistics are extensively debated to pave the way for future studies on stakeholder management within this business ecosystem. In this perspective, this PhD thesis would take a step forward in the research on new managerial practices to effectively manage stakeholder relationships in the maritime logistics ecosystem

Lean, agile, resilient and green supply chain management interoperability assessment methodology

Dissertação para obtenção de grau de Mestre em Engenharia e Gestão Industrial (MEGI)Supply Chain Management has become a tactic asset for the current global competition situation. Innovative strategies such as Lean, Agile, Resilient and Green emerged as a response, requiring high levels of cooperation and of great complexity. However, the strategic alignment of operations with partners in supply chains is affected by lack of interoperability. The present work provides a framework to enhance SC competitiveness and performance by assessing interoperable SCM Practices applied in automotive industry. Through a pragmatic interoperability approach, this methodology describes in detail the form of application using analytical hierarchical process (AHP) and Fuzzy sets as support decision making models, ensuring a systematic approach to the analysis of interoperability with appropriate criteria for assessment of situations that require high levels of collaboration between partners. Through a case study in a Portuguese automaker, it was possible to test the methodology and analyse which areas lack interoperability in the implementation of SCM practices