Integrated Operational and Financial Approaches in Supply Chain Risk Management

Like other relatively more established sub-areas of Supply Chain Management, Supply Chain Risk Management (SCRM) is an emerging field that mostly lacks integrative approaches across disciplines. This study attempts to narrow this gap by developing an integrated approach to SCRM using operational tools and financial instruments. The conceptualization of SCRM is examined with reference to the broader literature on risk management. A SCRM framework is developed based on our taxonomies of risk and risk management approaches. Our unit of analysis is a supply chain composed of an aluminum can supplier, a brewery and a distributor. We develop a (base) stochastic optimization model that incorporates operational and financial features of the aforementioned supply chain. The supply chain is exposed to aluminum price fluctuation and demand uncertainty. Through simulation based optimization, we compare the performance of the integrated model (under which operational and financial hedging decisions are made simultaneously) to a sequential model (under which the financial decisions are made after the operational decisions are finalized, a common practice for many supply chains even today). Using experimental designs and statistical analyses, we analyze the performance of the two models in minimizing the expected total opportunity cost of the supply chain. We examine the supply chain performance in different business environments defined by iv three factors, each at three levels: risk aversion, demand variability and aluminum price volatility. We find that the integrated model outperforms the sequential model in most cases. The results also shed light on significant variations in supply chain performance under changing business environments. Managerial insights are offered based on optimization results and statistical analyses. The base model developed is then extended in two directions. First, we incorporate lead time variability as a fourth factor and study the effects of this variability. For the second extension, we introduce exchange rate risk into our base model. We examine the variations in the benefits of hedging exchange rate risk under two risk aversion levels and different exchange rate volatilities. Managerial insights on the findings of both extensions are provided. The thesis concludes with a summary of overall findings. Areas for further research are also highlighted.N/Av, 192 p: illIncludes bibliographical reference

Supply chain risk management – I: Conceptualization, framework and planning process

Supply chain risk management (SCRM) is an interdisciplinary emerging area of research crossing over operations management, finance and marketing, among other disciplines. Conceptualization of SCRM is argued in reference to previous studies on risk identification, risk assessment, supply chain vulnerabilities and risk management approaches used. A SCRM framework is then developed based on taxonomies defined for risk events and risk management approaches. In line with this framework, a risk management planning process is proposed with an illustrative example

Supply chain risk management – II: A review of operational, financial and integrated approaches

This article is a sequel to Bandaly et al. (2011). Structured around the supply chain risk management (SCRM) typology and framework presented in the aforementioned article, this article provides a review on individual operational and financial risk management approaches reported in the literature. Avoidance, prevention and mitigation approaches reported are also summarized in tabular format for the four risk domains covered (internal operations, external stakeholders, marketplace and environment). Distinctions between operational and financial approaches are highlighted. A review of studies integrating both approaches is then presented. Areas for future research in SCRM are argued

A manufacturer-buyers integrated inventory model with generic distribution of lead times to deliver equal and/or unequal batch sizes

Although lead time variation is common in practice, integrated single-manufacturer multi-buyer model considering this factor is unavailable in the extant literature. This article considers generic distribution of lead times of delivering equal and/or unequal batch (sub-lot) sizes of a lot in developing a synchronised integrated single-manufacturer multi-buyer model. The batch sizes are assumed to be in geometric series. The variables considered in the model are the smallest batch size, total number of batches and number of unequal batch sizes delivered from the manufacturer to buyers. The smallest batch sizes delivered to the buyers are bounded below by 1 and above by the capacity of the transport vehicle. The minimal total cost solution technique to the model is derived by the method of differentiation. Significant minimal total cost reductions by the synchronised flow is illustrated through solutions to some numerical example problems. Sensitivity analyses on increasing costs of transportation, shortage, inventory and increasing mean lead times upon the optimal solution have been performed

Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis

The purpose of this study is twofold: first, to establish the current themes on the topic of manufacturing and supply chain flexibility (MSCF), assess their level of maturity in relation to each other, identify the emerging ones and reflect on how they can inform each other, and second, to develop a conceptual model of MSCF that links different themes connect and highlight future research opportunities. The study builds on a sample of 222 articles published from 1996 to 2018 in international, peer-reviewed journals. The analysis of the sample involves two complementary approaches: the co-word technique to identify the thematic clusters as well as their relative standing and a critical reflection on the papers to explain the intellectual content of these thematic clusters. The results of the co-word analysis show that MSCF is a dynamic topic with a rich and complex structure that comprises five thematic clusters. The value chain, capability and volatility clusters showed research topics that were taking a central role in the discussion on MSCF but were not mature yet. The SC purchasing practices and SC planning clusters involved work that was more focused and could be considered more mature. These clusters were then integrated in a framework that built on the competence–capability perspective and identified the major structural and infrastructural elements of MSCF as well as its antecedents and consequences. This paper proposes an integrative framework helping managers keep track the various decisions they need to make to increase flexibility from the viewpoint of the entire value chain

Study of the fate of viruses on the filters of the air hundling unit : influence of the process parameters and impact on health

La pollution de l'air est l'un des principaux problèmes de santé publique de notre siècle et surtout de l'air intérieur alors que nous passons environ 90% de notre temps dans des environnements fermés. Parmi les polluants les bioaérosols ont été peu étudiés. Cependant des études épidémiologiques ont déjà montré une relation entre les bioaérosols et la santé. Le but de cette thèse est d’étudier les virus respiratoires dans les milieux clos via les systèmes de ventilation. A l’issue d’un état de l’art des polluants de l’air, il est important de définir ceux nécessitant d’être traités, les systèmes de ventilation, les procédés de filtration par médias fibreux et les procédés de traitement pouvant être mis en oeuvre. Les effets des bioaérosols viraux dans les environnements intérieurs sur la santé publique ont été discutés dans une revue bibliographique. Une méthodologie a été mise en oeuvre pour étudier le comportement des virus dans une centrale de traitement de l’air (CTA). Les virus respiratoires, mengovirus (virus nu à ARN de la même famille que les rhinovirus responsables du rhume) et adénovirus (virus respiratoire nu à ADN), ont été choisis et étudiés dans un système expérimental miniature représentatif des systèmes de traitement d’air. La performance de filtration d’un filtre de CTA vis-à-vis des aérosols viraux a été évaluée avec une validation du système expérimental utilisé. Cette étude a montré la capacité des virus de passer à travers le filtre tout en restant infectieux. Peu de littérature existant sur le sujet, ce projet a permis d’ajouter de nouvelles données pertinentes quant à la persistance des virus respiratoires dans l’air intérieur et plus précisément au niveau des filtres dans les centrales de traitement d’air.Air pollution is one of the major public health problems of our century and especially of indoor air as we spend about 90% of our time in closed environments. Among pollutants bioaerosols have been poorly studied. However, epidemiological studies have already shown a relationship between bioaerosols and human health. The aim of this PhD work is to learn about respiratory viruses in closed environments via ventilation systems in order to study indoor air quality. At the end of state of the art of air pollutants, it is important to define those present in the air that need to be treated, ventilation systems, filtration processes by fibrous media and the processing methods being able to be implemented. The effects of viral bioaerosols on public health in indoor environments were discussed and drafted in a bibliographic review. The methodology of the study was to assess the fate of respiratory viruses, mengoviruses and adenoviruses, in a miniature experimental system similar to air treatment systems used in closed environments. The experimental system used was validated and the filter performance against viral aerosols was investigated. This study presented originality for the characterization and the fate of two non-enveloped respiratory viruses, mengovirus (RNA) and adenovirus (DNA), in indoor environments and their fate on fiber glass filter. This study showed the ability of viruses to pass through the filter and to remain infectious upstream and downstream the filter. There is scarce literature on this subject, and this project allowed us to add new relevant data on the persistence of respiratory viruses in indoor air and more precisely at the level of filters in air handling units

International Journal of Production Research Integrated supply chain risk management via operational methods and financial instruments Integrated supply chain risk management via operational methods and financial instruments

Supply chain risk management (SCRM) is an emerging field that generally lacks integrative approaches across different disciplines. This study contributes to narrowing this gap by developing an integrated approach to SCRM using operational methods and financial instruments. We study a supply chain composed of an aluminium can supplier, a brewery and a distributor. The supply chain is exposed to aluminium price fluctuation and beer demand uncertainty. A stochastic optimisation model is developed for managing operational and financial risks along the supply chain. Using this model as a base, we compare the performance of an integrated risk management model (under which operational and financial risk management decisions are made simultaneously) to a sequential model (under which the financial risk management decisions are made after the operational risk management decisions are finalised). Through simulation-based optimisation and using experimental designs and statistical analyses, we analyse the performance of the two models in minimising the expected total opportunity cost of the supply chain. We examine the supply chain performance as a function of three factors, each at three levels: risk aversion, demand variability and aluminium price volatility. We find that the integrated model outperforms the sequential model in most but not in all cases. Furthermore, while the results indicate that the supply chain improves its performance by being less risk averse, there exists a threshold beyond which accepting a higher risk level is not justified. Managerial insights are provided for various business scenarios experimented with. Keywords: risk management; supply chain; finance; inventory; integrated methods; optimisation via simulation Introduction Risk management provides an important arena to visualise and understand the true nature of supply chain management and its interdisciplinary context. As corporate risk management spans several disciplines such as procurement, finance, operations and marketing, the approaches used to manage risks along a supply chain also need to be interdisciplinary. As reported in a survey by , the literature is short on studies using interdisciplinary and integrated approaches to supply chain risk management (SCRM). This article contributes to research on SCRM by examining an integrated approach to risk management using operational and financial risk management methods. The application venue considered is the beer industry with three members along its supply chain: an aluminium can supplier, a brewery and a beer distributor. Faced with beer demand uncertainty and volatile aluminium prices, a simulation-based optimisation model is developed which incorporates both operational and financial risk management methods. The operational risk management method exploits the timing and sizes of aluminium sheet procurements, as well as the inventory levels of raw material, work in process and finished goods maintained at all three supply chain members. The financial risk management method focuses on the optimal purchase of call, and put options on aluminium futures to manage aluminium price uncertainty and the uncertainty in aluminium demand. The optimisation model developed minimises the expected total opportunity cost of the supply chain over an eight-week peak demand period

Respiratory viruses' fate on filters of air handling units

International audienc

The persistence of respiratory viruses on filters of air handling units

International audienc