Cooperation in Supply Chain Networks: Motives, Outcomes, and Barriers

This paper analyzes the phenomenon of cooperation in modern supply chains in the light of Game Theory. We first provide a discussion on the meaning of cooperation in supply chains, its motives, outcomes and barriers. We then highlighted the applicability of Cooperative Game Theory as methodology for analyzing cooperation in supply chains. Second, we review recent studies that analyze the cooperation in supply chains by means of cooperative game theory. A special emphasis will be given inventory centralizations games. Finally, gaps in the literature are identified to clarify and to suggest future research opportunities

Behavioral analyses of retailers’ ordering decisions

The main objective I pursue in this thesis is to better understand how different factors may independently and in combination influence retailers' ordering decisions under different supply chain structures (single agent and multi agent), different demand uncertainty (deterministic and stochastic), and different interaction among retailers (no interaction, competition and cooperation). I developed three different studies where I build on different formal management model and then run multiple behavioral studies to better understand subjects’ behavior. The first study analyzes order amplification in a single-supplier single-retailer supply chain. I used a behavioral experiment to test retailers’ orders under different ordering delays and different times to build supplier’s capacity. Results provide (i) a better understanding of the endogenous dynamics leading to retailers’ ordering amplification, and (ii) a description of subjects’ biases and deviation from optimal trajectories; despite subjects have full information about the system structure. The second study analyzes how order amplification can also take place when there is fierce retailer competition and limited supplier capacity. I study how different factors (different time to build supplier capacity, different levels of competition among retailers, different magnitudes of supply shortage and different allocation mechanisms) may independently and in combination influence retailers’ order in a system with two retailers under supply competition. Results show that (i) the bullwhip effect persists even when subjects do not have incentives to deviate, (ii) subjects amplify their orders in an attempt to build an unnecessary safety stock to respond to potential deviations from the other retailers, and (iii) retailers’ underperformance varies with the allocation mechanism used by the supplier. In the last study, I analyze retailers’ orders in a system where there is uncertainty in the final customer demand. I experimentally explore the effect of transshipments among retailers in a single-supplier multi-retailer supply chain. Specifically, I explore retailers’ orders under different profit and communication conditions. In addition, I integrate analytical and behavioral models to improve supply chain performance. Results show that (i) the persistence of common biases in a newsvendor problem (pull-to-center, demand chasing, loss aversion, psychological disutility), (ii) communication could improve coordination and may reduce demand chasing behavior, (iii) supply chain performance increases with the use of behavioral strategies embedded within a traditional optimization model, and (iv) dynamic heuristics improve overall coordination, outperforming a simple Nash Equilibrium strategy

A study of child labour with regard to Black newspaper vendors in the Cape Peninsula

Bibliography : leaves 142-148.The study was designed to investigate child labour with particular regard to Black newsvendors in the Cape Peninsula. Data was gathered from interviews with local organisations active in the field of child labour and the employment conditions of newsvendors, as well as a field study carried out in the Cape Peninsula. A review of local and international literature was also undertaken. A brief account of child labour in the Western Cape is given which provided the necessary backdrop to the study. The field study involved in-depth interviews with 52 Black newsvendors in the Cape Peninsula. This comprised interviews with the first available four newsvendors in each of the 13 areas in the Cape Peninsula in which newspapers are sold by vendors. Respondents completed an interview schedule administered by the researcher. The interview schedule furnished information on the employment conditions of newsvendors, their role as wage-earners, their education and training, their safety, health and welfare. Analysis of the data revealed that the majority of newsvendors worked as child labourers under deplorable working conditions. The findings demonstrated that young Black newsvendors comprised a pool of cheap and exploited labour. Their exploitation is evident in their deprivation of family life, of reasonable working hours, of time to pursue social and leisure interests as children, of a negotiated wage, of favourable working conditions, of dignity, of the acknowledgement of the value of their labour, of legal protection, of membership in an effective worker organisation, of further acquisition of knowledge and skills, of opportunities and scope for advancement. The findings reveal that young Black newsvendors work under conditions detrimental to their health, safety and welfare. Many young Black newsvendors who sell newspapers in the early hours of the morning often start to work without breakfast. They spend a considerable amount of time on the streets without any rest periods, leading to irregular mealtimes, while many survive on food of inferior nutritional value. These young newsvendors have to survive in occupational circumstances where robberies and assaults frequently occur. In these circumstances the peer group begins to play an important role. Young newsvendors are often induced to succumb to the influences of co-workers. The newsvendors in this study also expressed a deep sense of hopelessness and despondency about their own lives. Any prospects of a better future are seriously curtailed by the lack of formal education and industrial skills. The majority of the newsvendors said that they enjoyed going to school but had to leave in order to support the family income. The recommendations draw attention to the need for the improvement of working conditions, training and supportive services, but recognises that this is only possible once newsvendors are organised in an effective worker organisation

Some fairytales about risk management

When I started writing this paper, I thought I would only be writing about the parallel between the mathematical theory of inventory and production – as a familiar model of operations research – and liquidity management. And then during the writing process, predictably enough I must say, the scandals surrounding the Buda-Cash and Quaestor brokerages erupted. Likewise in this period, the debate about foreign currency lending gained fresh impetus; about who made which mistakes when, or whether there was anyone who didn’t make mistakes. The most surprising twist revealed in the Buda-Cash and Quaestor cases – beyond alleged losses running into several hundreds of billions of forints – was that all this could be accumulated in 15 years of selfless effort. And even if this information proves to be comment born of initial over-excitement, it still demands an explanation one way or another. If it’s true, then how can this be? And if it isn’t, then what made it appear as if this is what happened? The questions and contradictions are obvious. But the main questions are these: What do risk managers actually do? What do we pay them for? And how far can we trust them

Disaster relief inventory management: horizontal cooperation between humanitarian organizations

Cooperation among humanitarian organizations has attracted increasing attention to enhance effectiveness and efficiency of relief supply chains. Our research focuses on horizontal cooperation in inventory management which is currently implemented in the United Nations Humanitarian Response Depot (UNHRD) network. The present work follows a two-step research approach, which involves collection of empirical data and quantitative modeling to examine and overcome the coordination challenges of the network. Our interviews with members of the network identified several managerial issues for sustainable cooperative inventory management that the UNHRD network pursues. Using a newsvendor model in the context of non-cooperative game theory, our research has explored member humanitarian organizations' incentive of joining the network, a coordination mechanism which achieves system optimality, and impacts of members' decisions about stock rationing. Our results indicate that behaviors of member HOs do not necessarily align with the UNHRD's expectation. Our results suggest that for system optimality, a system coordinator should carefully assess the circumstances, including demand coefficient and stock rationing. Our research also proposes a policy priority for the first-best system optimal inventory management

The Newsvendor Problem: Review and Directions for Future Research

In this paper, we review the contributions to date for analyzing the newsvendor problem. Our focus is on examining the specific extensions for analyzing this problem in the context of modeling customer demand, supplier costs, and the buyer risk profile. More specifically, we analyze the impact of market price, marketing effort, and stocking quantity on customer demand; how supplier prices can serve as a coordination mechanism in a supply chain setting; integrating alternative supplier pricing policies within the newsvendor framework; and how the buyer’s risk profile moderates the newsvendor order quantity decision. For each of these areas,we summarize the current literature and develop extensions. Finally, we also propose directions for future research

Joint logistics and financial services by a 3PL firm

Integrated logistics and financial services have been practiced by third party logistics (3PL) firms for years; however, the literature has been silent on the value of 3PL firms as credit providers in budget-constrained supply chains. This paper investigates an extended supply chain model with a supplier, a budget-constrained retailer, a bank, and a 3PL firm, in which the retailer has insufficient initial budget and may borrow or obtain trade credit from either a bank (traditional role) or a 3PL firm (control role). Our analysis indicates that the control role model yields higher profits not only for the 3PL firm but also for the supplier, the retailer, and the entire supply chain. In comparison with a supplier credit model where the supplier provides the trade credit, the control role model yields a better performance for the supply chain as long as the 3PL firm’s marginal profit is greater than that of the supplier. We further demonstrate that, for all players, both the control role and supplier credit models can outperform the classic newsvendor model without budget constraint

Target-based Optimization in Operations Management

Ph.DDOCTOR OF PHILOSOPH

Biopsychosocial Assessment and Ergonomics Intervention for Sustainable Living: A Case Study on Flats

This study proposes an ergonomics-based approach for those who are living in small housings (known as flats) in Indonesia. With regard to human capability and limitation, this research shows how the basic needs of human beings are captured and analyzed, followed by proposed designs of facilities and standard living in small housings. Ninety samples were involved during the study through in- depth interview and face-to-face questionnaire. The results show that there were some proposed of modification of critical facilities (such as multifunction ironing work station, bed furniture, and clothesline) and validated through usability testing. Overall, it is hoped that the proposed designs will support biopsychosocial needs and sustainability

Modeling the values of private sector agents in multi-echelon humanitarian supply chains

© 2018 Elsevier B.V. Humanitarian organizations (HOs) increasingly look to engage private sector supply chains in achieving outcomes. The right engagement approach may require knowledge of agents' preferences across multi-echelon supply chains to align private sector value creation with humanitarian outcomes. We propose a multi-attribute value analysis (MAVA) framework to elucidate such preferences. We formalize this approach and apply it in collaboration with a HO pilot aiming to facilitate better private sector availability of malaria rapid diagnostic tests in Uganda. We demonstrate how HOs could use criteria weights and value functions from MAVA for project evaluation; in the process, we reveal business model insights for importers, distributors, and retailers in the pilot. We also show how MAVA facilitates the impact assessment of hypothetical options (i.e., combinations of products, services, and subsidies) to guide HO resource deployment. This paper offers the first attempt, to our knowledge, to develop quantitative measures for economic and non-economic objectives involving all agents in a multi-echelon supply chain, either humanitarian or commercial. We hope that this initial step stimulates further research to validate results and develop the framework proposed