An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management

[EN] In this paper, a closed-loop supply chain composed of dual-channel retailers and manufacturers, a dynamic game model under the direct recovery, and an entrusted third-party recycling mode of the manufacturer is constructed. The impact of horizontal fairness concern behavior is introduced on the pricing strategies and utility of decision makers under different recycling models. The equilibrium strategy at fair neutrality is used as a reference to compare offline retails sales. Research shows that in the closed-loop supply chain of dual-channel sales, whether in the case of fair neutrality or horizontal fairness concerns, the manufacturer's direct recycling model is superior to the entrusted third-party recycling, and the third-party recycling model is transferred by the manufacturer. In the direct recycling model, the horizontal fairness concern of offline retailers makes two retailers in the positive supply chain compete to lower the retail price in order to increase market share. Manufacturers will lower the wholesale price to encourage competition, and the price will be the horizontal fairness concern coefficient, which is negatively correlated. In the reverse supply chain, manufacturers increase the recycling rate of used products. This pricing strategy increases the utility of manufacturers and the entire supply chain system compared to fair neutral conditions, while two retailers receive diminished returns. Manufacturers, as channel managers to encourage retailers to compete for price cuts, can be coordinated through a three-way revenue sharing contract to achieve Pareto optimality.This research was funded by Ministerio de Economia, Industria y Competitividad, Gobierno de Espana grant number BIA2017-87573-C2-2-P.Arshad, M.; Khalid, QS.; Lloret, J.; León Fernández, A. (2018). An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management. Sustainability. 10(10). https://doi.org/10.3390/su10103433S101

Blockchain for supply chain traceability and anticounterfeiting: the oracles’ enabling role

Blockchain and physical oracles in the Collectible Industry. Supply chain fairness and bargaining power in agriculture supply chain: the blockchain effect. Unlocking the Blockchain Potentials through Oracles: Empirical Evidences on Supply Chain Challenges and Performance

Human Aspect on Chain of Custody (CoC) System Performance

The tropical forests cover 24% of tropical land area. They are the most productive terrestrial ecosystems on earth with high priorities for biodiversity conservation. These forests store a substantial amount of carbon in biomass and soil, and they also regulate the transfer of carbon into the atmosphere as carbon dioxide (CO2). Indonesia is having the third tropical forest area in the world after Brazil and Congo. Over 50 years forest has been felled both legally as well as illegally. High rate of forest degradation resulted from unsustainable forest management, rampant illegal logging, forest area encroachment, conversion and natural disaster. All urges rapid improvement of management system of Indonesia’s forest resources (Holmes, 2002). Forest certification is one tool that can support the achievement of sustainable forest management goal. Under current operation of join certification protocol between the Forest Stewardship Council (FSC) and the Indonesian Ecolabelling Institute (LEI) in Indonesia, forest management units must be able to show the required performance indicated in LEI criteria and indicator as well as FSC principles and criteria to attain certification of their products. The gap between current practices and performance required by forest certifications schemes is still enormous. The performance of forest certification system from LEI is determined very much by the human that is involved in the process of planning and operation. The name of certification system is chain of custody (CoC) certification. CoC operation involves activities such as tracing raw material from the forest to the factory, through shipping and manufacturing, to the final end product. In all of the above processes, the roles of human are critical, although the specific roles played from one process to another are different. In this paper we present an identification of human aspect and other factors that predominantly affect CoC system performance

Supply chain collaboration and sustainable development goals (SDGs). Teamwork makes achieving SDGs dream work

The global push towards sustainable development has led to an upsurge in academic literature at the juncture of supply chain collaboration (SCC) and sustainability. The present paper aims to map this growing literature to understand how SCC can contribute to the achievement of broader Sustainable Development Goals (SDGs). Via a systematic review of literature (SLR), the paper maps key themes at the intersection of SCC and sustainable development. Relying on nine key themes, the study presents novel insights into the domain of SCC for sustainable development. The results of the SLR reveal that collaborative innovation, collaborative process and product development are key mechanisms driving SCC. However, the extant literature has not devoted much attention to the effectiveness of SCC mechanisms or their performance. Further, the current study posits that more effective SCC strategies can boost the sustainable operational performance of the supply chain (SC) by enhancing capacity building and resource utilisation. Based on the contingency approach, this study offers a novel framework linking SCC to SDGs. The study thus has the potential to help managers and practitioners identify strategic fields of action for achieving SDGs.publishedVersionPaid open acces

Supply chain collaboration and sustainable development goals (SDGs). Teamwork makes achieving SDGs dream work

The global push towards sustainable development has led to an upsurge in academic literature at the juncture of supply chain collaboration (SCC) and sustainability. The present paper aims to map this growing literature to understand how SCC can contribute to the achievement of broader Sustainable Development Goals (SDGs). Via a systematic review of literature (SLR), the paper maps key themes at the intersection of SCC and sustainable development. Relying on nine key themes, the study presents novel insights into the domain of SCC for sustainable development. The results of the SLR reveal that collaborative innovation, collaborative process and product development are key mechanisms driving SCC. However, the extant literature has not devoted much attention to the effectiveness of SCC mechanisms or their performance. Further, the current study posits that more effective SCC strategies can boost the sustainable operational performance of the supply chain (SC) by enhancing capacity building and resource utilisation. Based on the contingency approach, this study offers a novel framework linking SCC to SDGs. The study thus has the potential to help managers and practitioners identify strategic fields of action for achieving SDGs.publishedVersio

Conceptual System Dynamics and Agent-Based Modelling Simulation of Interorganisational Fairness in Food Value Chains: Research Agenda and Case Studies

© 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/)System dynamics and agent-based simulation modelling approaches have a potential as tools to evaluate the impact of policy related decision making in food value chains. The context is that a food value chain involves flows of multiple products, financial flows and decision making among the food value chain players. Each decision may be viewed from the level of independent actors, each with their own motivations and agenda, but responding to externalities and to the behaviours of other actors. The focus is to show how simulation modelling can be applied to problems such as fairness and power asymmetries in European food value chains by evaluating the outcome of interventions in terms of relevant operational indicators of interorganisational fairness (e.g., profit distribution, market power, bargaining power). The main concepts of system dynamics and agent-based modelling are introduced and the applicability of a hybrid of these methods to food value chains is justified. This approach is outlined as a research agenda, and it is demonstrated how cognitive maps can help in the initial conceptual model building when implemented for specific food value chains studied in the EU Horizon 2020 VALUMICS project. The French wheat to bread chain has many characteristics of food value chains in general and is applied as an example to formulate a model that can be extended to capture the functioning of European FVCs. This work is to be further progressed in a subsequent stream of research for the other food value chain case studies with different governance modes and market organisation, in particular, farmed salmon to fillet, dairy cows to milk and raw tomato to processed tomato.Peer reviewedFinal Published versio

Cost-sharing contract design in a low-carbon service supply chain

This paper investigates a service supply chain (SC) consisting of a service provider (SP) who is in charge of carbon emission reduction and service, and a service integrator (SI) who is responsible for low-carbon advertising, considering corporate social responsibility (CSR). Given that SP shares SI’s advertising cost, SI may have three types of cost sharing decisions, namely, not sharing any cost of SP (contract PA), sharing SP’s emission reduction cost (contract PAIE), or sharing SP’s service cost (contract PAIS). We establish three differential game models to explore the optimal decisions, and identify the conditions under which SP and SI would provide positive participation rates. Our findings demonstrate that consumers’ low-carbon preference, and chain members’ marginal profits and CSR behaviors significantly influence the optimal solutions. Furthermore, we indicate that two-way contracts (contracts PAIE and PAIS) could benefit the entire service SC and its members. Specifically, SI prefers contract PAIE when SP’s service cost efficiency is lower, whereas he would rather choose contract PAIS under a higher one. More importantly, contracts PAIS and PAIE would be the potential equilibrium contract when SI has a relatively high marginal profit. When it is sufficiently low, contracts PAIE and PA would be the possible equilibrium contract

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

External financing, channel power structure and product green R&D decisions in supply chains

Purpose – This study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint, financing cost, channel power structure and cost-reducing efficiency on green R&D and supply chain profitability. Design/methodology/approach – A two-echelon supply chain is considered. The upstream firm engages in green R&D but has capital constraints that can be overcome by external financing. Green R&D is beneficial to reduce production costs and increase consumer demand. Based on whether or not the upstream firm is capital constrained and dominates the supply chain, four models are developed. Findings – Capital constraints significantly lower green R&D and supply chain profitability. Transferring leadership from the upstream to the downstream firms leads to higher green R&D levels and downstream firm profitability, whereas the upstream firm's profitability is increased (decreased) if green R&D investment efficiency is high (low) enough. Greater financing costs reduce green R&D and downstream firm profitability; however, the upstream firm's profitability under the model in which it functions as the follower increases if the initial capital is sufficient. More importantly, empirical analysis based on practice data is used to verify the theoretical results reported above. Practical implications – This study reveals how upstream firms in supply chains decide green R&D decisions in situations with capital constraints, providing managers and governments with an understanding of the impact of capital constraint, channel power structure, financing cost and cost-reducing efficiency on supply chain green R&D and profitability. Originality/value – The major contributions are the exploration of supply chain green R&D by taking into consideration channel power structures and cost-reducing efficiency and the validation of theoretical results using practice data