Coordinating Dual-Channel Supply Chain Under Price Mechanism With Production Cost Disruption

This paper studies a two-stage dual-channel supply chain consisting of one manufacturer and one traditional retailer. The manufacturer has its own online channel when he sells the product to the offline retailer. There exists a Stackelberg game between the manufacturer and the offline retailer, in which the manufacturer is the leader and the retailer is the follower. The manufacturer abandons the pricing right in the online channel and adopts the marketing strategy which the online retail price is equal to the offline one. When the supply chain is in a static (undisrupted) condition, it can obtain Pareto improvement and eventually be coordinated by a two-part-tariff contract with a one-time transfer payment. When disruptions make the manufacturer’s unit production cost change, we can obtain the retail price, the production quantity and the total supply chain profit under different disruption levels in the centralized supply chain. Then, we find that there are some certain robustness both in the manufacturer’s production quantity and in the offline retail price. When the supply chain is decentralized, we can coordinate the supply chain by changing the wholesale price according to different disruption levels. Finally, some numerical examples are presented to illustrate the results

Technology Supply Chain or Innovation Capacity?: Contrasting Experiences of Promoting Small Scale Irrigation Technology in South Asia

The most effective approach to agricultural technology promotion and innovation is still a source of considerable debate, and nowhere more so than in the context of agricultural engineering hardware. Contemporary perspective on agricultural innovation stress the importance of institutional change and give emphasis to the need to develop innovation capacity in systems terms rather address limitations of technology transfer mechanisms. This paper illustrates using the case of manual irrigation technology - treadle pumps -- in Bangladesh and India. It identifies 5 elements of this capacity: (i) A sector coordination mechanism; (ii) a developmental rather than technical organising principle for sector development; (iii) habits and practices (institutions) of key organisations; (iv) Interaction as a learning and knowledge transmission mechanism (v) Market demand as key an incentive for innovation; and (vi) Policies and institutional innovations to ensure adequate stakeholder participation. The paper concludes by suggesting that identifying new sources of institutional innovation is the most presses task for initiatives that seek to make more effective use of knowledge and technology in development.Agricultural Technology, Innovation Systems, Innovation Capacity, Agricultural Research, Poverty Reduction, Small Scale Irrigation, Supply Chains

New business and economic models in the connected digital economy

This paper discusses business models as a systemic phenomenon as opposed to traditional reductionistic approaches of business disciplines. It presents the ways connectivity change economic models due to the availability of consumption data as an economic resource, markets forming at consumption spaces, and how industries could disrupt one another when connected through consumption technologies. The paper further suggests that the challenges posed by connectivity results in the redrawing of traditional firm and market boundaries. It proposes for more research into modularity, transaction costs, the future role of the firm, and the necessary transformation of businesses to stay agile in a connected digital economy

Natural disasters : what is the role for social safety nets?

This paper makes the case for why safety nets are an important tool for managing the risk of natural hazards. The use of safety nets is advocated both ex ante, to prevent and mitigate the impact of natural disaster and ex post, to cope with the impacts of natural shocks. Firstly, the paper explores the implications of contextual factors to be taken into account in the design of an effective safety net system to respond to the needs generated by natural disasters. Learning from the responses to a number of recent natural disasters, a typology of the different types of natural hazards which require different approaches to reduce their risk is introduced. Secondly, the paper considers some'guidelines'for improving the design and implementation of safety nets either to prevent and/or to recover from natural disasters. Finally, some conclusions and recommendations for more effective safety net and suggestions for addressing key issues are outlined.Safety Nets and Transfers,Hazard Risk Management,Food&Beverage Industry,Labor Policies,Natural Disasters

Public-private perspectives on supply chains of essential goods in crisis management

Public authorities are responsible to maintain the population’s supply with essential goods like food or drugs at any time. Such goods are produced, transported and sold by companies in supply chains. Past supply crises all over the world have showcased numerous examples of spontaneous collaboration between public authorities and companies in supply chains. However, insights on formal collaboration which is agreed upon in the preparedness phase is rare in both practice and literature. Therefore, this dissertation’s first research objective is to identify under which circumstances companies are most willing to collaborate with public authorities. In this context, public authorities\u27 and companies\u27 characteristics, resources and roles in a collaboration are identified from literature research as well as real-life cases in Study A. Study B empirically determines companies\u27 preferred preconditions for collaboration: Companies value the continuity of their business processes and expect to be compensated monetarily or by lifted restrictions. The second research objective is to develop collaborative supply chain concepts and evaluate them from public and private perspectives. Study C develops a collaboration concept in a real-time setting in which commercial trucks are jointly re-routed into crisis regions. In Study D, public authorities coordinate tactical use of commercial last-mile delivery vehicles for the home supply with food and drugs. In Study E, strategic collaboration in using dual-use warehouses is investigated with a focus on logistics networks. Study F determines the impact of demand shortfalls and payment term extensions on financial and physical flows in food supply chains. In Studies C-F, the main drivers for effectiveness and efficiency are investigated. By examining collaboration between companies and public authorities in supply crises, this dissertation contributes to the research streams of supply chain risk management and so-called extreme supply chain management. The results provide public decision-makers with insights into companies\u27 motivation to engage in public crisis management. The developed collaborative supply chain concepts serve public authorities as a basis for collaboration design and companies as starting points for integrating public-private collaboration into their endeavors to make supply chains more resilient

Beyond Bitcoin: Issues in Regulating Blockchain Transactions

The buzz surrounding Bitcoin has reached a fever pitch. Yet in academic legal discussions, disproportionate emphasis is placed on bitcoins (that is, virtual currency), and little mention is made of blockchain technology—the true innovation behind the Bitcoin protocol. Simply, blockchain technology solves an elusive networking problem by enabling “trustless” transactions: value exchanges over computer networks that can be verified, monitored, and enforced without central institutions (for example, banks). This has broad implications for how we transact over electronic networks. This Note integrates current research from leading computer scientists and cryptographers to elevate the legal community’s understanding of blockchain technology and, ultimately, to inform policymakers and practitioners as they consider different regulatory schemes. An examination of the economic properties of a blockchain-based currency suggests the technology’s true value lies in its potential to facilitate more efficient digital-asset transfers. For example, applications of special interest to the legal community include more efficient document and authorship verification, title transfers, and contract enforcement. Though a regulatory patchwork around virtual currencies has begun to form, its careful analysis reveals much uncertainty with respect to these alternative applications

The Covid-19 Pandemic and the Future of Global Value Chains (GVCs)

The Covid-19 pandemic has shown the importance of a better understanding of GVCs in relation to epidemic outbreaks. The literature also mentions that there is now an opportunity for building inclusive and sustainable GVCs. This rapid review synthesises the literature from academic, policy, knowledge and business institution sources on the discourse on reshaping Global Value Chains (GVCs) as a result of the current Covid-19 pandemic and how GVC support programmes might have to adapt to the “new normal”. This review concludes that lead firms in GVCs could decide to diversify suppliers, reshore (near-shore) production closer to demand or intensify linkages with existing suppliers.FCDO (Foreign, Commonwealth and Development Office

Appendix B: Systemic risk and the financial system (background paper)

The Federal Reserve Bank of New York released a report -- New Directions for Understanding Systemic Risk -- that presents key findings from a cross-disciplinary conference that it cosponsored in May 2006 with the National Academy of Sciences' Board on Mathematical Sciences and Their Applications. ; The pace of financial innovation over the past decade has increased the complexity and interconnectedness of the financial system. This development is important to central banks, such as the Federal Reserve, because of their traditional role in addressing systemic risks to the financial system. ; To encourage innovative thinking about systemic issues, the New York Fed partnered with the National Academy of Sciences to bring together more than 100 experts on systemic risk from 22 countries to compare cross-disciplinary perspectives on monitoring, addressing and preventing this type of risk. ; This report, released as part of the Bank's Economic Policy Review series, outlines some of the key points concerning systemic risk made by the various disciplines represented -including economic research, ecology, physics and engineering - as well as presentations on market-oriented models of financial crises, and systemic risk in the payments system and the interbank funds market. The report concludes with observations gathered from the sessions and a discussion of potential applications to policy. ; The three papers presented in this conference session highlighted the positive feedback effects that produce herdlike behavior in markets, and the subsequent discussion focused in part on means of encouraging heterogeneous investment strategies to counter such behavior. Participants in the session also discussed the types of models used to study systemic risk and commented on the challenges and trade-offs researchers face in developing their models.Financial risk management ; Financial markets ; Financial stability ; Financial crises

Strategic risk in contract design

Supply chains facing asymmetric information can either operate in a cooperative mode with information and benefit sharing or can choose a non-cooperative form of interaction and align their incentives via screening contracts. In the cooperative mode, supply chain efficiency can be achieved, but high levels of trust and trustworthiness are required. In the non-cooperative mode, the contract mechanism guarantees a second best supply chain performance, but only if all parties choose their equilibrium strategies without trembles. Experimental evidence, however, shows that both operating modes often fail due to strategic risk. Cooperation is disrupted by deceptive signals and the lack of trust, whereas non-cooperative strategies suffer from persistent out-of-equilibrium behavior. We present an experiment on supply chain interaction with reduced strategic risk in both operating modes. We find that supply chain performance can reach a second-best level in either operating mode, if strategic risk is sufficiently reduced. We present two means to reduce strategic risk. First, a punishment mechanism leads to a better matching of trust and trustworthiness and supports the cooperative operating mode. Second, an enforcement of self-selection supports the non-cooperative equilibrium by increasing the attractiveness of screening contracts. We conclude that supply chain managers should seek to reduce the variability of the supply chain partners\u27 behavior no matter what operating mode is considered