Supply Chain

Traditionally supply chain management has meant factories, assembly lines, warehouses, transportation vehicles, and time sheets. Modern supply chain management is a highly complex, multidimensional problem set with virtually endless number of variables for optimization. An Internet enabled supply chain may have just-in-time delivery, precise inventory visibility, and up-to-the-minute distribution-tracking capabilities. Technology advances have enabled supply chains to become strategic weapons that can help avoid disasters, lower costs, and make money. From internal enterprise processes to external business transactions with suppliers, transporters, channels and end-users marks the wide range of challenges researchers have to handle. The aim of this book is at revealing and illustrating this diversity in terms of scientific and theoretical fundamentals, prevailing concepts as well as current practical applications

Integrated inventory model for single vendor–single buyer with probabilistic demand

In this paper, we consider single vendor–single buyer integrated inventory model with probabilistic demand and equal delivery lot size. The model contributes to the current literature by relaxing the deterministic demand assumption which has been used for almost all integrated inventory models. The objective is to minimise expected total costs incurred by the vendor and the buyer. We develop effective iterative procedures for finding the optimal solution. Numerical examples are used to illustrate the benefit of integration. A sensitivity analysis is performed to explore the effect of key parameters on delivery lot size, safety factor, production lot size factor and the expected total cost. The results of the numerical examples indicate our integrated model gives a significant cost savings over independent model

Review and critique of supplier selection process and practices

With increasingly competitive global world markets, companies are under intense pressure to find ways to cut production and material costs to survive and sustain their competitive position in their respective markets. Since a qualified supplier is a key element and a good resource for a buyer in reducing such costs, evaluation and selection of the potential suppliers has become an important component of supply chain management. Hence, development of an effective and rational supplier selection model is naturally desirable. Several evaluation and selection models for supplier selection have been proposed and reported in the supply chain literature. This paper reveals the findings of a wide ranging literature review of supplier selection practices and models. Altogether 147 refereed academic journal articles are reviewed and classified into five categories. A list and summary of the papers falling into each category with brief annotations is provided. The areas that have received little attention or lack of research interest are discussed and some new research settings are also suggested

Supplier-Switching Inertia and Competitive Asymmetry: A Demand-Side Perspective

Building on strategic management, operations strategy, and supplier management literatures, this article presents a framework for supplier selection from the demand-side perspective. We highlight the role of a purchasing firm’s switching inertia in the supplier selection process and demonstrate the usefulness of our framework for the industrial automation industry. Empirical data for this study was collected from 171 corporate and plant-level executives in pharmaceutical, chemical, and paper-and-pulp manufacturing industries in the United States. A series of Web-based individually customized discrete choice experiments asked the respondents to either switch to the new supplier or stay with the existing supplier. Based on the results of these experiments, we demonstrate the existence of switching inertia in the supplier-selection process and discuss the managerial implications for incumbent and challenger supplier firms

The Effect of Supply Chain Configuration on Small Modular Reactor Economics

This thesis examines the opportunity presented by small modular reactors (SMRs) to bring down the cost of nuclear power. The economies of scale that have traditionally driven nuclear vendors to design larger reactors can be overcome for small reactors by the combination of standardisation of design, modularisation of the build process, and progressive reduction in production cost through learning. By employing the most comprehensive nuclear plant construction cost data available, in conjunction with established cost estimating methods, a model was devised to estimate the capital costs and levelized electricity cost of a SMR, based on conventional light water reactor technology. Key elements of supply chain configuration were parameterised in the model, enabling the investigation of its effect on SMR economics. Credible SMR supply chain configurations were hypothesised, by applying procurement decision models to industry data and nuclear sector specific constraints. These configurations were evaluated using the model against a range of programme conditions. Beyond single programme supply chain design, the challenges posed by global production and deployment were considered, such as the segmentation of market demand, variations in labour costs, and the implications of regulatory barriers and localisation for SMR cost reduction methods. The costs of first developing a SMR programme were also estimated. It was established that in order for SMRs to become cost competitive with large nuclear plants, a sizeable programme of at least 10 GW of standard units is needed to achieve sufficient production volume and production rate. The preferred SMR size is in the region of 250 MWe, to achieve a balance between economies of scale and learning. Progress needs to be made in harmonising global technical standards and safety regulation to make the product-like reactor concept feasible. Moreover, a committed supply chain of collaborative enterprise partners, rather than competing transactional suppliers, is required to realise the necessary learning cost reduction.Funded by EPSRC through the ICO CDT in Nuclear Energ

Supply chain finance for ameliorating and deteriorating products: a systematic literature review

Ameliorating and deteriorating products, or, more generally, items that change value over time, present a high sensitiveness to the surrounding environment (e.g., temperature, humidity, and light intensity). For this reason, they should be properly stored along the supply chain to guarantee the desired quality to the consumers. Specifically, ameliorating items face an increase in value if there are stored for longer periods, which can lead to higher selling price. At the same time, the costumers’ demand is sensitive to the price (i.e., the higher the selling price the lower the final demand), sensitiveness that is related to the quality of the products (i.e., lower sensitiveness for high-quality products). On the contrary, deteriorating items lose quality and value over time which result in revenue losses due to lost sales or reduced selling price. Since these products need to be properly stored (i.e., usually in temperature- and humidity-controlled warehouses) the holding costs, which comprise also the energy costs, may be particularly relevant impacting on the economic, environmental, and social sustainability of the supply chain. Furthermore, due to the recent economic crisis, companies (especially, small and medium enterprises) face payment difficulties of customers and high volatility of resources prices. This increases the risk of insolvency and on the other hand the financing needs. In this context, supply chain finance emerged as a mean for efficiency by coordinating the financial flow and providing a set of financial schemes aiming at optimizing accounts payable and receivable along the supply chain. The aim of the present study is thus to investigate through a systematic literature review the two main themes presented (i.e., inventory management models for products that change value over time, and financial techniques and strategies to support companies in inventory management) to understand if any financial technique has been studied for supporting the management of this class of products and to verify the existing literature gap

Climate Change Reporting: A Resource Based Perspective

Kajian ini dilakukan untuk mengkaji tahap serta faktor yang mengalakkan laporan pemanasan global di antara syarikat-syarikat yang tersenarai di Bursa Malaysia. This study investigates the extent of climate change disclosure among Malaysian public listed companies

Interfirm Strategic Information Flows in Logistics Supply Chain Relationships

This paper focuses on strategic information flows between buyers and suppliers within logistics supply chain relationships and on subsequent relationship-specific performance outcomes. Our analysis of dyadic data collected from 91 buyer–supplier logistics relationships finds that buyer and supplier strategic information flows positively impact the relationship-specific performance of both sharing and receiving parties. Specifically, each party gains financially from improved management of assets, reduced costs of operations, and enhanced productivity. Moreover, each benefits operationally from improved planning, control, and flexibility of resources. Buyer dependence on the supplier increases buyer strategic information flows to the supplier. Additionally, buyer IT customization and both buyer and sup plier trusting beliefs in the receiving party positively impact strategic information sharing with partners. This study suggests that partnerships for supply chain services engage in cooperative initiatives to generate relational rents and are an alternative to conventional “arms length” transactional exchanges. These partnerships need to be motivated to go beyond the sharing of order-related information (which must occur in transactional exchanges) and to share strategic information (which has the potential for both additional rent generation and risks of misappropriation)

Risk Mitigation Of Outsourcing Manufacturing Process: A Study On The Semiconductor Manufacturing Organizations In Malaysia

Penggunaan perkhidmatan pihak ketiga daripada proses pembuatan semikonduktor menjadi sebahagian daripada strategi korporat sebuah organisasi yang didorong oleh kelebihan kos dan fleksibiliti dalam ketidakpastian. Outsourcing of semiconductor manufacturing process is becoming integral part of the corporate strategy of an organization which is driven by cost advantage and flexibility during uncertainty