A Roadmap to Reduce U.S. Food Waste by 20 Percent

The magnitude of the food waste problem is difficult to comprehend. The U.S. spends $218 billion a year -- 1.3% of GDP -- growing, processing, transporting, and disposing of food that is never eaten. The causes of food waste are diverse, ranging from crops that never get harvested, to food left on overfilled plates, to near-expired milk and stale bread. ReFED is a coalition of over 30 business, nonprofit, foundation, and government leaders committed to building a different future, where food waste prevention, recovery, and recycling are recognized as an untapped opportunity to create jobs, alleviate hunger, and protect the environment -- all while stimulating a new multi-billion dollar market opportunity. ReFED developed A Roadmap to Reduce U.S. Food Waste as a data-driven guide to collectively take action to reduce food waste at scale nationwide.This Roadmap report is a guide and a call to action for us to work together to solve this problem. Businesses can save money for themselves and their customers. Policymakers can unleash a new wave of local job creation. Foundations can take a major step in addressing environmental issues and hunger. And innovators across all sectors can launch new products, services, and business models. There will be no losers, only winners, as food finds its way to its highest and best use

Coordinating a Supply Chain with a Loss-Averse Retailer under Yield and Demand Uncertainties

This paper investigates the channel coordination of a supply chain (SC) consisting of a loss-averse retailer and a risk-neutral supplier under yield and demand uncertainties. Three existing contracts are analyzed. Our results demonstrate that the buyback (BB) and quantity flexibility (QF) contracts can not only coordinate the supply chain but also lead to Pareto improvement for each player, while the wholesale price (WP) contract fails to coordinate the chain due to the effects of double marginalization and risk preference. For comparison, a chain with a risk-neutral retailer is also analyzed. Furthermore, numerical examples are provided to demonstrate the effectiveness of the coordination contracts, and the impacts of loss aversion and random yield on the decision-making behaviors and system performance are then discussed

Structuring postponement strategies in the supply chain by analytical modeling

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Emerging Operational Contracts in Competitive Markets.

This dissertation consists of three essays, each dealing with an emerging type of operational contracts. The first essay considers a resource exchange model where the effects of collaboration and competition are intertwined. Exchanging resources often improves utilization and is intended to increase profitability of involved firms. However, it does not guarantee success in competitive settings. More efficient use of resources might actually leads to increased competition. We explore how resource exchange contracts impact the firms and consumers. The results indicate that the resource exchange tends to benefit both firms and the consumers in most situations, except for the extreme situations where simultaneously competition is strong and the purchasing cost is either very low or very high. The second essay focuses on vertical pricing control contracts that manufacturers use to coordinate online and offline retailers. Resale Price Maintenance (RPM) policy requires all retailers to sell at the price suggested by manufacturers. Minimum Advertised Price (MAP) policy is less strict, as it allows retailers to sell at lower prices than the manufacturer suggested, as long as these lower prices are not advertised. This essay studies which of these two policies is more beneficial to each member of the supply chain. We show that manufacturers prefer MAP policy when the customers' valuations vary significantly and the information search requires significant effort. The MAP policy is also favorable to retailers and consumers under similar market conditions. The third essay concerns the contractual issues when energy service companies (ESCOs) provide energy efficiency projects to residential clients. While performance based contracts have been proven successful in public, commercial, and industrial sectors, ESCOs face challenges in the residential sector. Residential clients often change consumption behavior after the project, which makes the real energy savings difficult to measure. Additionally, residential clients are much more risk averse and vulnerable to uncertain outcomes of projects. We show that piecewise linear contracts perform reasonably well. To further improve profitability, ESCOs can either reduce uncertainty of technology involved or develop the ability to verify post-project energy efficiency. We also make recommendations in monetary incentives and regulations from policy makers' perspective.PhDBusiness AdministrationUniversity of Michigan, Horace H. Rackham School of Graduate Studieshttp://deepblue.lib.umich.edu/bitstream/2027.42/133457/1/lgding_1.pd

Supply chain contract design in supplier- versus buyer-driven channels

In the context of supply contract design, the more powerful party has the lib- erty of withholding private information which also improves its bargaining power. Traditionally, the supplier (e.g., manufacturer) has been more powerful, and, hence, the existing literature in the area emphasizes supplier-driven contracts. However, in some current markets, such as the grocery channel, the bargaining power has shifted to the buyer (e.g., retailer). For example, in the United States, large retailers, such as Wal-Mart, exert tremendous market power over their suppliers. Also, with the advent of the Internet, buyers have gained access to much more information about multiple potential suppliers. Hence, this dissertation takes into account the recent trends in power shifting between suppliers and buyers, and it attempts to provide a comparison of optimal supply contract designs in supplier- versus buyer-driven chan- nels. This research is unique in that we explore the impact of both power shifting and information asymmetry while designing optimal supply chain contracts under supply uncertainty and competition. Placing an emphasis on the cases of stochastic and/or price-sensitive demand, we work on several novel problems in stochastic mod- eling, nonlinear and dynamic optimization, and game theory. Hence, this research has roots in applied probability, optimization, inventory theory, game theory, and eco- nomics. The goal is to advance our practical knowledge of designing implementable contracts because such knowledge is crucial for optimizing supply chain performance in the real world. This dissertation provides insights about * the individual and joint impacts of the power structure and information asym- metry on supply chain performance, * the value of information for contract design in supplier- versus buyer-driven channels, * the impact of supply uncertainty and supplier competition on contract design in supplier- versus buyer-driven channels

Analysis of the Project Supply Chains: Coordination and Fair Allocation

This research investigates how project contracts can coordinate the supply chain between a project manager and contractor and if the solutions can be ensured as equitable. The main features of this type of supply chain are the trade-offs between the selection of a higher rate of resource consumption with a consequent higher cost to the contractor and a lower rate of resource consumption leading to later delivery and a reduction of the project-reward to the project manager. This broader problem could lead to a coordination problem for the overall supply chain. This research proposed a solution to this broader problem in two different scenarios: Take it or leave it scenario and negotiation scenario. Finally, the fair allocation of the risks and benefits and the related decision-making issues are addressed as one of the behavioural barriers to the supply chain coordination. The coordination issues in a take it or leave it scenario are addressed using time-based and fixed price project contracts using Stackelberg games. Models of coordination were proposed with time-based contracts, but the fixed price contracts failed to coordinate. The coordination problems in negotiation scenario are addressed with the Nash's bargaining, the Kalai Smorodinsky bargaining, and the utilitarian approach. A cost plus contract has been found to dominate the solutions over any cost sharing contract and fixed price contract for Nash's bargaining and Kalai Smorodinsky bargaining cases. Finally, the issues of fairness of allocation of risks and benefits as one of the challenges of supply chain coordination, have been investigated. The fixed price contracts were found to coordinate the supply chain under consideration alongside the time-based contracts if the members had fairness concern. Some of the key features of this research include the incorporation of various probability distributions for the project completion time and cost, the inclusion of various forms of risk preference, and addressing the challenges of fair allocation in project supply chains

Disintermediation and co-opetition in platform ecosystems and modern value chains

textThis dissertation investigates partial disintermediation and co-opetition in platform-based ecosystems and modern supply chains. Disintermediation has been an intriguing puzzle for managers for the last several decades, but recent development in electronic commerce makes the management of this trade-off even more challenging. The first type of partial disintermediation I study, often referred to as platform envelopment, is widely observed in platform-based businesses. Platform owners often rely on complementary innovations from third-party providers (i.e., third-party contents), while providing their own products/services to consumers (i.e., first-party contents). The second type of partial disintermediation I study is referred to as supplier encroachment. Due to the fast development of electronic commerce, many manufacturers have established their direct-selling channels on the internet (e.g., online stores), instead of completely relying on third-party retailers to reach customers. The widespread observation of disintermediation and the resulting co-opetition behaviors in various industries has motivated me to investigate two important questions: (1) what's the impact of partial disintermediation on consumer demand and firm profits? (2) what strategies can be used to manage the co-opetition relationship? I use both analytical modeling and empirical methods to study the impact of disintermediation on consumer behaviors, firm profits, and social welfare. The findings provide managerial insights into how to manage the co-opetition dilemma due to disintermediation.Information, Risk, and Operations Management (IROM

Genetic Algorithm for Solving the Integrated Production-Distribution-Direct Transportation Planning

This paper proposes a model of integrated production, distribution and transportation planning for 4-echelon supply chain system that consists of a manufacturer using a continuous production process, a distribution center, distributors and retailers. By means of time-dependent demand at all retailers and direct transportation from one echelon to its successive echelons, the purpose of this paper is to determine production/replenishment and transportation policies at manufacturer, distribution center, distributors and retailers in order to minimize annually total system cost. Due to the proposed model is classified as a mixed integer non-linear programming so it is almost impossible to solve the model using the exact optimization methods and a lot of time is needed when the enumeration methods is applied to solve only a small scale problem. In this paper, we apply the genetic algorithm for solving the model. Using integer encoding for constructing the chromosome, the best solution is going to be searched. Compared with enumeration method, the difference of the result is only 0.0594% with the consumption time is only 0.5609% time that enumeration methods need

Interplay between network configurations and network governance mechanisms in supply networks a systematic literature review

Purpose: This work systematically reviews the extant academic management literature on supply networks. It specifically examines how network configurations and network governance mechanisms influence each other in supply networks. Design: 125 analytical and empirical studies were identified using an evidence-based approach to review the literature mainly published between 1985 and 2012. Synthesis: Drawing on a multi-disciplinary theoretical foundation, this work develops an integrative framework to identify three distinct yet interdependent themes that characterize the study of supply networks: a) Network Configurations (structures and relationships); b) Network Governance Mechanisms (formal and informal); and c) The Interplay between Network Configurations and Network Governance Mechanisms. Findings: Network configurations and network governance mechanisms mutually influence each other and cannot be considered in isolation. Formal and informal governance mechanisms provide better control when used as complements rather than as substitutes. The choice of governance mechanism depends on the nature of exchange; role of management; desired level of control; level of flexibility in formal contracts; and complementary role of formal and informal governance mechanism. Research implications: This nascent field has thematic and methodological research opportunities for academics. Comparative network analysis using longitudinal case studies offers a rich area for further study. Practical Implications: The complexity surrounding the conflicting roles of managers at the organisation and network levels poses a significant challenge during the development and implementation stage of strategic network policies. Originality/value: This review reveals that formal and informal governance mechanisms provide better control when used as complements rather than as substitutes

Impact of knowledge management and inter-organizational system on supply chain performance : the case of Australian agri-food industry

Motivated by the problems of cost competitiveness, profitability and market development issues in the Australian agri-food industry, this study was designed to addresses research questions as to how levels of knowledge asset management, inter-organizational systems (IOS) and relationship structures impact on the performance of a supply chain and differentiate the performance of the industry. Supply chains in the Australian agri-food industry have been based mainly on market arrangements with operation production pushed and, often, adversarial, resulting in profitability problems and a lack of innovative actions in developing products and a business based on insights from customers.With the main objective of investigating sources of supply chain performance in the Australian agri-food industry, five specific objectives were investigated. The preliminary conceptual model were developed principally using supply chain management and marketing literature in agribusiness and concepts from resource-based view (RBV), knowledge-based view (KBV) and transaction cost economics (TCE). The study objectives were addressed by a mixed method research methodology through a pragmatist approach that involved a first phase of qualitative data collection to enhance the theoretical model and develop survey instruments, followed by a second phase of quantitative data collection and analysis to test the research hypotheses.The qualitative first phase was based on in-depth interviews with eight agri-food firms to explore the research questions in real-world conditions. Content analysis of the interview transcripts helped identifying important factors and variables related to the performance of the supply chain which, later, were aligned with the literature and enhanced the initial theoretical research model and hypothesized relationships. The second phase involved finalizing the research model that used 22 hypotheses targeting factors of supply chain performance in the specific agri-food industry; viz., the Australian beef industry. A questionnaire was developed and pretested, followed by a pilot study of 68 participants. Finally, data were collected through a random telephone survey of 315 firms including input suppliers, producers, processors and retailers in the beef industries of Western Australia and Queensland. The data were analyzed using partial least square (PLS) based structural equation modelling (SEM).Assessment of the research model demonstrated that 18 of the 22 hypotheses, made up of 11 primary factors and 15 sub-factors, were supported. Results indicated that, among the predictive factors, knowledge asset management was the strongest predictor of supply chain performance, followed by negotiation power, price uncertainty, inter-firm relationship strength and environmental management practices. Competition intensity, vertical coordination and transaction climate were significant antecedents of knowledge asset management, IOS use and inter-firm relationship strength in the Australian context. Results established that relationship strength in the supply chain depends on the level of commitment, mutual investments, trust and interdependence of the firms. The non-significant relationship between IOS and supply chain performance indicated that IOS, by itself, cannot produce sustained performance advantages unless pre-existing complementary human and business resources are exploited in an integrated way. Finally, statistical evidence proved that the supply chain is a source of competitiveness in the industry and that competitive advantage lies in system efficiencies in the performance of the supply chain.Finally, the study provides frameworks for developing the strategies of inter-firm relationships, knowledge asset management and the use of electronic systems in the supply chain to align the best principles of value-creating strategy in firms and in the industry, for competitive advantage. Thus, the results have provided a comprehensive, reliable and valid model of supply chain performance that contributes to knowledge at the strategic level for appropriate planning and benchmarking to improve performance of the agri-food industry. Finally, although the hypothesized relationships in the model have been tested in the beef industry in Australia, the issues can be examined not only in other sectors of the Australian agri-food industry supply chain but also in other agricultural sectors within Australia and overseas