Effects of a Trust Mechanism on Complex Adaptive Supply Networks: An Agent-Based Social Simulation Study

This paper models a supply network as a complex adaptive system (CAS), in which firms or agents interact with one another and adapt themselves. And it applies agent-based social simulation (ABSS), a research method of simulating social systems under the CAS paradigm, to observe emergent outcomes. The main purposes of this paper are to consider a social factor, trust, in modeling the agents\' behavioral decision-makings and, through the simulation studies, to examine the intermediate self-organizing processes and the resulting macro-level system behaviors. The simulations results reveal symmetrical trust levels between two trading agents, based on which the degree of trust relationship in each pair of trading agents as well as the resulting collaboration patterns in the entire supply network emerge. Also, it is shown that agents\' decision-making behavior based on the trust relationship can contribute to the reduction in the variability of inventory levels. This result can be explained by the fact that mutual trust relationship based on the past experiences of trading diminishes an agent\'s uncertainties about the trustworthiness of its trading partners and thereby tends to stabilize its inventory levels.Complex Adaptive System, Agent-Based Social Simulation, Supply Network, Trust

Risk assessment and relationship management: practical approach to supply chain risk management

The literature suggests the need for incorporating the risk construct into the measurement of organisational performance, although few examples are available as to how this might be undertaken in relation to supply chains. A conceptual framework for the development of performance and risk management within the supply chain is evolved from the literature and empirical evidence. The twin levels of dyadic performance/risk management and the management of a portfolio of performance/risks is addressed, employing Agency Theory to guide the analysis. The empirical evidence relates to the downstream management of dealerships by a large multinational organisation. Propositions are derived from the analysis relating to the issues and mechanisms that may be employed to effectively manage a portfolio of supply chain performance and risks

Supply chain management as the key to a firm’s strategy in the global marketplace

Purpose: This research aims to analyze the intersection of two literature streams: that of strategy and supply chain management (SCM). This review should create a better understanding of “strategic SCM” by focusing on relevant theories in the strategic management field and their intersection with SCM to develop a joint research agenda. Design/Methodology/Approach: We conducted a correspondence analysis on the content of 3,402 articles from the top SCM journals. This analysis provides a map of the intellectual structure of content in this field to date. The key trends and changes were identified in strategic SCM research from 1990-2014 as well as the intersection with the key schools of strategic management. Findings: The results suggest that SCM is key to a successful deployment of strategy for competing in the global marketplace. The main theoretical foundations for research in this field were identified and discussed. Gaps were detected and combinations of theoretical foundations of strategic management and SCM suggest four poles for future research: agents and focal firm; distributions and logistics strategic models; SCM competitive requirements; SCM relational governance. Research limitations/implications: Scholars in both the strategy and the SCM fields continue to search for competitive advantages. Much recent research indicates that strategic SCM can be a critical source for that advantage. One of the limitations of our research is that the analysis does not include every journal that published an article mentioning SCM. However, the 34 journals selected are reputed to be the most influential on SCM and focused primarily on SCM. Practical implications: The map of the intellectual structure of research to strategic SCM highlights the need to combine different theoretical approaches to the complex phenomenon of SCM. Practitioners should consider the supply chain as an informal organization and should devote time and resources to build a shared advantage across the supply chain. They should also consider the inherent benefits and risks that sharing Originality/value: The paper demonstrates that strategic SCM needs a balanced and rigorous combination of theoretical approaches to deliver more theory-driven evidences. Our research combines both a qualitative analysis and a quantitative methodology that summarizes gaps and then outlines future research from a large sample of articles. This methodology is an original contribution to this field and offers some assistance for enlarging the sample of future literature reviews

Improving working relationships for smallholder farmers in formal organic crop supply chains: Evidence from KwaZulu-Natal, South Africa

The 48 members of the Ezemvelo Farmers' Organisation (EFO) in KwaZulu-Natal, South Africa (SA), that are fully-certified as organic farmers were surveyed in October-December 2004 to assess their perceived levels of satisfaction, trust, cooperation and commitment in a formal supply chain producing amadhumbes (a traditional vegetable tuber), potatoes and sweet potatoes for a major SA supermarket group. Empirical recursive models show that a high level of satisfaction in the working relationship results in these farmers trusting the pack-house agent more. High levels of trust, in turn, lead to higher levels of both commitment to, and cooperation in, the supply chain. A simultaneous-equation model showed that EFO members with higher levels of commitment tend to be more cooperative, and that members with higher levels of cooperation tend to be more committed toward the working relationship. These results suggest that strategies to improve the working relationship with the pack-house agent need to promote satisfaction, trust, cooperation and commitment. For example, co-investment in better crop storage facilities at farm-level would promote satisfaction and hence trust. There is also scope for more cooperation in the planning of new organic crop products to grow and market, and to remove some price uncertainty by giving EFO farmers more information about prices that they will be paid by the pack-house in this supply chain.Industrial Organization,

Multi Agent Systems in Logistics: A Literature and State-of-the-art Review

Based on a literature survey, we aim to answer our main question: “How should we plan and execute logistics in supply chains that aim to meet today’s requirements, and how can we support such planning and execution using IT?†Today’s requirements in supply chains include inter-organizational collaboration and more responsive and tailored supply to meet specific demand. Enterprise systems fall short in meeting these requirements The focus of planning and execution systems should move towards an inter-enterprise and event-driven mode. Inter-organizational systems may support planning going from supporting information exchange and henceforth enable synchronized planning within the organizations towards the capability to do network planning based on available information throughout the network. We provide a framework for planning systems, constituting a rich landscape of possible configurations, where the centralized and fully decentralized approaches are two extremes. We define and discuss agent based systems and in particular multi agent systems (MAS). We emphasize the issue of the role of MAS coordination architectures, and then explain that transportation is, next to production, an important domain in which MAS can and actually are applied. However, implementation is not widespread and some implementation issues are explored. In this manner, we conclude that planning problems in transportation have characteristics that comply with the specific capabilities of agent systems. In particular, these systems are capable to deal with inter-organizational and event-driven planning settings, hence meeting today’s requirements in supply chain planning and execution.supply chain;MAS;multi agent systems

EDI and intelligent agents integration to manage food chains

Electronic Data Interchange (EDI) is a type of inter-organizational information system, which permits the automatic and structured communication of data between organizations. Although EDI is used for internal communication, its main application is in facilitating closer collaboration between organizational entities, e.g. suppliers, credit institutions, and transportation carriers. This study illustrates how agent technology can be used to solve real food supply chain inefficiencies and optimise the logistics network. For instance, we explain how agribusiness companies can use agent technology in association with EDI to collect data from retailers, group them into meaningful categories, and then perform different functions. As a result, the distribution chain can be managed more efficiently. Intelligent agents also make available timely data to inventory management resulting in reducing stocks and tied capital. Intelligent agents are adoptive to changes so they are valuable in a dynamic environment where new products or partners have entered into the supply chain. This flexibility gives agent technology a relative advantage which, for pioneer companies, can be a competitive advantage. The study concludes with recommendations and directions for further research

From supply chains to demand networks. Agents in retailing: the electrical bazaar

A paradigm shift is taking place in logistics. The focus is changing from operational effectiveness to adaptation. Supply Chains will develop into networks that will adapt to consumer demand in almost real time. Time to market, capacity of adaptation and enrichment of customer experience seem to be the key elements of this new paradigm. In this environment emerging technologies like RFID (Radio Frequency ID), Intelligent Products and the Internet, are triggering a reconsideration of methods, procedures and goals. We present a Multiagent System framework specialized in retail that addresses these changes with the use of rational agents and takes advantages of the new market opportunities. Like in an old bazaar, agents able to learn, cooperate, take advantage of gossip and distinguish between collaborators and competitors, have the ability to adapt, learn and react to a changing environment better than any other structure. Keywords: Supply Chains, Distributed Artificial Intelligence, Multiagent System.Postprint (published version

Inter-Organizational Learning and Collective Memory in Small Firms Clusters: an Agent-Based Approach

Literature about Industrial Districts has largely emphasized the importance of both economic and social factors in determining the competitiveness of these particular firms\' clusters. For thirty years, the Industrial District productive and organizational model represented an alternative to the integrated model of fordist enterprise. Nowadays, the district model suffers from competitive gaps, largely due to the increase of competitive pressure of globalization. This work aims to analyze, through an agent-based simulation model, the influence of informal socio-cognitive coordination mechanisms on district\'s performances, in relation to different competitive scenarios. The agent-based simulation approach is particularly fit for this purpose as it is able to represent the Industrial District\'s complexity. Furthermore, it permits to develop dynamic analysis of district\'s performances according to different types of environment evolution. The results of this work question the widespread opinion that cooperative districts can answer to environmental changes more effectively that non-cooperative ones. In fact, the results of simulations show that, in the presence of turbulent scenarios, the best performer districts are those in which cooperation and competition, trust and opportunism balance out.Firm Networks, Collective Memory, Agent Based Models, Uncertainty