Risk assessment and relationship management: practical approach to supply chain risk management

The literature suggests the need for incorporating the risk construct into the measurement of organisational performance, although few examples are available as to how this might be undertaken in relation to supply chains. A conceptual framework for the development of performance and risk management within the supply chain is evolved from the literature and empirical evidence. The twin levels of dyadic performance/risk management and the management of a portfolio of performance/risks is addressed, employing Agency Theory to guide the analysis. The empirical evidence relates to the downstream management of dealerships by a large multinational organisation. Propositions are derived from the analysis relating to the issues and mechanisms that may be employed to effectively manage a portfolio of supply chain performance and risks

Multi Agent Systems in Logistics: A Literature and State-of-the-art Review

Based on a literature survey, we aim to answer our main question: “How should we plan and execute logistics in supply chains that aim to meet today’s requirements, and how can we support such planning and execution using IT?†Today’s requirements in supply chains include inter-organizational collaboration and more responsive and tailored supply to meet specific demand. Enterprise systems fall short in meeting these requirements The focus of planning and execution systems should move towards an inter-enterprise and event-driven mode. Inter-organizational systems may support planning going from supporting information exchange and henceforth enable synchronized planning within the organizations towards the capability to do network planning based on available information throughout the network. We provide a framework for planning systems, constituting a rich landscape of possible configurations, where the centralized and fully decentralized approaches are two extremes. We define and discuss agent based systems and in particular multi agent systems (MAS). We emphasize the issue of the role of MAS coordination architectures, and then explain that transportation is, next to production, an important domain in which MAS can and actually are applied. However, implementation is not widespread and some implementation issues are explored. In this manner, we conclude that planning problems in transportation have characteristics that comply with the specific capabilities of agent systems. In particular, these systems are capable to deal with inter-organizational and event-driven planning settings, hence meeting today’s requirements in supply chain planning and execution.supply chain;MAS;multi agent systems

Enhancing the Supply Chain Performance by Integrating Simulated and Physical Agents into Organizational Information Systems

As the business environment gets more complicated, organizations must be able to respond to the business changes and adjust themselves quickly to gain their competitive advantages. This study proposes an integrated agent system, called SPA, which coordinates simulated and physical agents to provide an efficient way for organizations to meet the challenges in managing supply chains. In the integrated framework, physical agents coordinate with inter-organizations\' physical agents to form workable business processes and detect the variations occurring in the outside world, whereas simulated agents model and analyze the what-if scenarios to support physical agents in making decisions. This study uses a supply chain that produces digital still cameras as an example to demonstrate how the SPA works. In this example, individual information systems of the involved companies equip with the SPA and the entire supply chain is modeled as a hierarchical object oriented Petri nets. The SPA here applies the modified AGNES data clustering technique and the moving average approach to help each firm generalize customers\' past demand patterns and forecast their future demands. The amplitude of forecasting errors caused by bullwhip effects is used as a metric to evaluate the degree that the SPA affects the supply chain performance. The experimental results show that the SPA benefits the entire supply chain by reducing the bullwhip effects and forecasting errors in a dynamic environment.Supply Chain Performance Enhancement; Bullwhip Effects; Simulated Agents; Physical Agents; Dynamic Customer Demand Pattern Discovery

Sustainable operations of industrial symbiosis: an enterprise input-output model integrated by agent-based simulation

Industrial symbiosis (IS) is a key for implementing circular economy. Through IS, wastes produced by one company are used as inputs by other companies. The operations of IS suffers from uncertainty barriers since wastes are not produced upon demand but emerge as secondary outputs. Such an uncertainty, triggered by waste supply-demand quantity mismatch, influences IS business dynamics. Accordingly, companies have difficulty to foresee potential costs and benefits of implementing IS. The paper adopts an enterprise input-output model providing a cost–benefit analysis of IS integrated to an agent-based model to simulate how companies share the total economic benefits stemming from IS. The proposed model allows to explore the space of cooperation, defined as the operationally favourable conditions to operate IS in an economically win-win manner. This approach, as a decision-support tool, allows the user to understand whether the IS relationship is created and how should the cost-sharing policy be. The proposed model is applied to a numerical example. Findings show that cost-sharing strategies are dramatically affected by waste supply-demand mismatch and by the relationship between saved and additional costs to run IS. Apart from methodological and theoretical contributions, the paper proposes managerial and practical implications for business strategy development in IS

Cooperation in manure-based biogas production networks: An agent-based modeling approach

Biogas production from manure has been proposed as a partial solution to energy and environmental concerns. However, manure markets face distortions caused by considerable unbalance between supply and demand and environmental regulations imposed for soil and water protection. Such market distortions influence the cooperation between animal farmers, biogas producers and arable land owners causing fluctuations in manure prices paid (or incurred) by animal farmers. This paper adopts an agent-based modeling approach to investigate the interactions between manure suppliers, i.e., animal farmers, and biogas producers in an industrial symbiosis case example consisting of 19 municipalities in the Overijssel region (eastern Netherlands). To find the manure price for successful cooperation schemes, we measure the impact of manure discharge cost, dimension and dispersion of animal farms, incentives provided by the government for bioenergy production, and the investment costs of biogas plants for different scales on the economic returns for both actor types and favorable market conditions. Findings show that manure exchange prices may vary between −3.33 €/t manure (i.e., animal farmer pays to biogas producer) and 7.03 €/t manure (i.e., biogas producer pays to animal farmer) and thanks to cooperation, actors can create a total economic value added between 3.73 €/t manure and 39.37 €/t manure. Hence, there are cases in which animal farmers can profitably be paid, but the presence of a supply surplus not met by demand provides an advantage to arable land owners and biogas producers in the price contracting phase in the current situation in the Netherlands