On Demand Responsiveness in Additive Cost Sharing

We propose two new axioms of demand responsiveness for additive cost sharing with variable demands. Group Monotonicity requires that if a group of agents increase their demands, not all of them pay less. Solidarity says that if agent i demands more, j should not pay more if k pays less. Both axioms are compatible in the partial responsibility theory postulating Strong Ranking, i.e., the ranking of cost shares should never contradict that of demands. The combination of Strong Ranking , Solidarity and Monotonicity characterizes the quasi-proportional methods, under which cost shares are proportional to 'rescaled' demands. The alternative full responsibility theory is based on Separability, ruling out cross-subsidization when costs are additively separable. Neither the Aumann-Shapley nor the Shapley-Shubik method is group monotonic. On the otherhand, convex combinations of "nearby" fixed-path methods are group-monotonic: the subsidy-free serial method is the main example. No separable method meets Solidarity, yet restricting the axiom to submodular (or supermodular) cost functions leads to a characterization of the fixed-flow methods, containing the Shapley-Shubik and serial methods.

Enhancing the competitiveness of manufacturers through Small-scale Intelligent Manufacturing System (SIMS): A supply chain perspective

An electronic version of the final, peer-reviewed manuscript upon acceptance for publication made publicly after an IEEE embargo period of 24 months from the date of publication. Link to publishers version:http://doi.org/10.1109/ICITM.2017.7917904In order to survive in this competitive and ever changing market, manufacturers have to improve and enhance the competitiveness, flexibility, responsiveness and sustainability with the application of the cutting-edge technologies and innovative management methods. New concepts, i.e., Intelligent manufacturing, flexible manufacturing, agile manufacturing, network manufacturing, green manufacturing and Industry 4.0, etc., have been proposed and developed in recent years based upon the newest and most advanced manufacturing technologies and Information and Communication technologies (ICT). This paper presents a new concept: Small-scale Intelligent Manufacturing System (SIMS), and the comparison with previous concepts and the benefits of SIMS are discussed in this paper. Different from the previous research works which mainly emphasize the technological integration for improving the flexibility and intelligence of an individual manufacturing system, this paper, however, focuses on and discusses the supply chain problems arisen from a holistic perspective. The features of the supply chain for realizing small-scale intelligent production and responsive distribution are discussed, and the limitation and future works are also discussed and suggested latter in this paper

Contribution of additive manufacturing systems to supply chain

The current economic pressures have been challenging manufacturing SMEs that play a complicated role in the Supply Chain (SC); and innovation in the manufacturing supply chain which requires new approaches and technologies. Additive Manufacturing (AM) is considered by research studies as pioneering and disruptive technology that can drive such a transformation. This paper is aimed at investigating in what measures can additive manufacturing techniques adopted as an opportunity for the supply chain in SMEs. Initially, the literature review looks into needs and challenges of SMEs in the SC identifying solutions and strategies. The research further analyses AM’s impact on the supply chain, evaluating benefits and drawbacks that AM delivers in this context. IT aims to examine the use of strategic maps, analytical tools and suitable tactical paths to implement and integrate this technology within supply chain. The paper describes the potential effects of the open sources networks and hence argues that a gradual integration of AM with traditional technologies is a plausible way for small manufacturers. However, there are several innovative approaches, and this scenario is rapidly evolving. Material and machines costs reduction could deliver significant changes. Therefore, further and updated investigations from a supply chain perspective are recommended, especially looking at practical cases and examples for this study within this context

Economies of collaboration in build-to-model operations

This is the final version. Available from the publisher via the DOI in this record.The direct-from-model and tool-less manufacturing process of 3D printing (3DP) embodies a general-purpose technology, facilitating capacity sharing and outsourcing. Starting from a case study of a 3DP company (Shapeways) and a new market entrant (Panalpina), we develop dynamic practices for partial outsourcing in build-to-model manufacturing. We propose a new outsourcing scheme, bidirectional partial outsourcing (BPO), where 3D printers share capacity by alternating between the role of outsourcer and subcontractor based on need. Coupled with order book smoothing (OBS), where orders are released gradually to production, this provides 3D printers with two distinct ways to manage demand variability. By combining demand and cost field data with an analytical model, we find that BPO improves 3DP cost efficiency and delivery performance as the number of 3DP firms in the network increases. OBS is sufficient for an established 3D printer when alternatives to in-house manufacturing are few, or of limited capacity. Nevertheless, OBS comes at the cost of reduced responsiveness, whereas BPO shifts the cost and delivery performance frontier. Our analysis shows how BPO combined with OBS makes 3DP companies more resilient to downward movements in both demand and price levels.Innovate UKEngineering and Physical Sciences Research Council (EPSRC

Additive Manufacturing as a Manufacturing Method: an Implementation Framework for Additive Manufacturing in Supply Chains

The supply chain is changing speedily and on a continuous basis to keep up with the rapid changes in the market, which are summarized as increased competition, changes in traditional customer bases, and changes in customers’ expectations. Thus, companies have to change their way of manufacturing final products in order to customize and expedite the delivery of products to customers. Additive manufacturing, the new production system, effectively and efficiently increases the capability of personalization during the manufacturing process. This consequently increases customer’s satisfaction and company’s profitability. In other words, additive manufacturing has become one of the most important technologies in the manufacturing field. Full implementation of additive manufacturing will change many well-known management practices in the production sector. Theoretical development in the field of additive manufacturing in regards to its impact on supply chain management is rare. There is no fully applied approach in the literature that is focused on managing the supply chain when additive manufacturing is applied. While additive manufacturing is believed to revolutionize and enhance traditional manufacturing, there is no comprehensive toolset developed in the manufacturing field that evaluates the impact of additive manufacturing and determines the best production method that suits the applied supply chain strategy. A significant portion of the existing supply chain methods and frameworks were adopted in this study to examine the implementation of additive manufacturing in supply chain management. The aim of this study is to develop a framework to explain when additive manufacturing “3D printing” impacts supply chain management efficiently. To build the framework, interviews with some companies that already use additive manufacturing in their production system have been carried out. Next, an online survey and two case studies evaluated the framework and validated the results of the final version of the framework. The conceptual framework shows the relationship among supply chain strategies, manufacturing strategy and manufacturing systems. The developed framework shows not only the ability of additive manufacturing to change and re-shape supply chains, but its impact as an alternative manufacturing technique on supply chain strategies. This framework helps managers select more effective production methods based on certain production variables, including product’s type, components’ value, and customization level.The supply chain is changing speedily and on a continuous basis to keep up with the rapid changes in the market, which are summarized as increased competition, changes in traditional customer bases, and changes in customers’ expectations. Thus, companies have to change their way of manufacturing final products in order to customize and expedite the delivery of products to customers. Additive manufacturing, the new production system, effectively and efficiently increases the capability of personalization during the manufacturing process. This consequently increases customer’s satisfaction and company’s profitability. In other words, additive manufacturing has become one of the most important technologies in the manufacturing field. Full implementation of additive manufacturing will change many well-known management practices in the production sector. Theoretical development in the field of additive manufacturing in regards to its impact on supply chain management is rare. There is no fully applied approach in the literature that is focused on managing the supply chain when additive manufacturing is applied. While additive manufacturing is believed to revolutionize and enhance traditional manufacturing, there is no comprehensive toolset developed in the manufacturing field that evaluates the impact of additive manufacturing and determines the best production method that suits the applied supply chain strategy. A significant portion of the existing supply chain methods and frameworks were adopted in this study to examine the implementation of additive manufacturing in supply chain management. The aim of this study is to develop a framework to explain when additive manufacturing “3D printing” impacts supply chain management efficiently. To build the framework, interviews with some companies that already use additive manufacturing in their production system have been carried out. Next, an online survey and two case studies evaluated the framework and validated the results of the final version of the framework. The conceptual framework shows the relationship among supply chain strategies, manufacturing strategy and manufacturing systems. The developed framework shows not only the ability of additive manufacturing to change and re-shape supply chains, but its impact as an alternative manufacturing technique on supply chain strategies. This framework helps managers select more effective production methods based on certain production variables, including product’s type, components’ value, and customization level

Stochastic optimization and worst-case analysis in monetary policy design

In this paper, we examine the cost of insurance against model uncertainty for the Euro area considering four alternative reference models, all of which are used for policy-analysis at the ECB.We find that maximal insurance across this model range in terms of aMinimax policy comes at moderate costs in terms of lower expected performance. We extract priors that would rationalize the Minimax policy from a Bayesian perspective. These priors indicate that full insurance is strongly oriented towards the model with highest baseline losses. Furthermore, this policy is not as tolerant towards small perturbations of policy parameters as the Bayesian policy rule. We propose to strike a compromise and use preferences for policy design that allow for intermediate degrees of ambiguity-aversion.These preferences allow the specification of priors but also give extra weight to the worst uncertain outcomes in a given context. JEL Klassifikation: E52, E58, E6

The adjustment of global external balances: does partial exchange rate pass-through to trade prices matter?

This paper assesses whether partial exchange rate pass-through to trade prices has important implications for the prospective adjustment of global external imbalances. To address this question, we develop and estimate an open-economy DGE model in which pass-through is incomplete due to the presence of local currency pricing, distribution services, and a variable demand elasticity that leads to fluctuations in optimal markups. We find that the overall magnitude of trade adjustment is similar in a low and high pass-through world with more adjustment in a low pass-world occurring through a larger response of the exchange rate and terms of trade rather than real trade flows.Foreign exchange rates ; Imports - Prices

Investigation into re-shoring UK manufacturing using additive manufacturing as a method to enable manufacturing postponement

This thesis describes case study research investigation into re-shoring UK manufacturing using Additive Manufacturing as a method to enable manufacturing Postponement. After identifying the gap in the knowledge by conducting a literature review, the author aims to understand the primary motivation behind the re-shoring phenomenon in the UK. The initial investigation is done by targeting the UK based organisations that have been involved in supporting the re-shoring phenomenon. As a result, lack of responsiveness was found to be the key factor behind re-shoring in the UK. This is then followed by an investigation considering this issue from countries to which manufacturing has been offshored in the past, in particular, India. The research studies the factors that influence this decision from Indian industries perspectives and investigates what the key issues are behind the lack of responsiveness in India. This is whilst India is one of the most attractive offshoring destinations among the other low-cost countries. This introduces the next objective of this research which is to identify a strategy that could help the industries to address such issues. Consequently the concept of Postponement was selected as a strategy and Additive Manufacturing (AM) was identified as a manufacturing method that could enable Postponement. Such a combination can enable companies to shorten their lead-time and be more responsive to their domestic customers. This study also develops a clear picture of re-shoring in the UK and bridges this phenomenon to the new generation of technologies and emerging mega trends. It particularly focuses on AM technologies as an enabling manufacturing method the Industry 4.0. The results obtained from the survey study indicate that there is a positive view towards applicability of AM technologies within the supply chain of the re-shoring companies. The final section of this thesis aims to iii provide a series of case studies where AM technologies are used to further enable companies to reduce their lead time and achieve more customisation. It shows that the companies can re-shore their production activities back to the home country by using AM technologies and engage in a local supply chain. Therefore this study adds insight into manufacturing challenges related to re-shoring and provides a potential solution for the companies that are involved in the production of high value added production. The results from this section indicate that the re-shoring companies will be capable of accommodating product changes and process changes. They can also reduce their inventories, production lead-time, and transportation costs, meanwhile increase product customisation

The Role of the Mangement Sciences in Research on Personalization

We present a review of research studies that deal with personalization. We synthesize current knowledge about these areas, and identify issues that we envision will be of interest to researchers working in the management sciences. We take an interdisciplinary approach that spans the areas of economics, marketing, information technology, and operations. We present an overarching framework for personalization that allows us to identify key players in the personalization process, as well as, the key stages of personalization. The framework enables us to examine the strategic role of personalization in the interactions between a firm and other key players in the firm's value system. We review extant literature in the strategic behavior of firms, and discuss opportunities for analytical and empirical research in this regard. Next, we examine how a firm can learn a customer's preferences, which is one of the key components of the personalization process. We use a utility-based approach to formalize such preference functions, and to understand how these preference functions could be learnt based on a customer's interactions with a firm. We identify well-established techniques in management sciences that can be gainfully employed in future research on personalization.CRM, Persoanlization, Marketing, e-commerce,