Supply Chain Disturbances: Contextualising the Cost of Risk and Uncertainty in Outsourcing

2012 ◽  
pp. 145-164 ◽  
Author(s):  
Helen Rogers ◽  
Kulwant Pawar ◽  
Christos Braziotis
Keyword(s):  
Supply Chain ◽  
Risk And Uncertainty ◽  
The Cost

Inventory optimization considering the vehicle capacity and specifics of cash flows at rental storage sites

2020 ◽  
pp. 77-90
Author(s):  
V.D. Gerami ◽  
I.G. Shidlovskii
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Sufficient Conditions ◽  
Cash Flows ◽  
Management Systems ◽  
Cargo Capacity ◽  
Special Modification ◽  
The Cost ◽  
Necessary And Sufficient ◽  
Vehicle Capacity

The article presents a special modification of the EOQ formula and its application to the accounting of the cargo capacity factor for the relevant procedures for optimizing deliveries when renting storage facilities. The specified development will allow managers to take into account the following process specifics in the format of a simulated supply chain when managing inventory. First of all, it will allow considering the most important factor of cargo capacity when optimizing stocks. Moreover, this formula will make it possible to find the optimal strategy for the supply of goods if, also, it is necessary to take into account the combined effect of several factors necessary for practice, which will undoubtedly affect decision-making procedures. Here we are talking about the need for additional consideration of the following essential attributes of the simulated cash flow of the supply chain: 1) time value of money; 2) deferral of payment of the cost of the order; 3) pre-agreed allowable delays in the receipt of revenue from goods sold. Developed analysis and optimization procedures have been implemented to models of this type that are interesting and important for a business. This — inventory management systems, the format of which is related to the special concept of efficient supply. We are talking about models where the presence of the specified delays for the outgoing cash flows allows you to pay for the order and the corresponding costs of the supply chain from the corresponding revenue on the re-order interval. Accordingly, the necessary and sufficient conditions are established based on which managers will be able to identify models of the specified type. The purpose of the article is to draw the attention of managers to real opportunities to improve the efficiency of inventory management systems by taking into account these factors for a simulated supply chain.

A study of cane supply benefits associated with ad hoc mechanical harvesting to mitigate cutter absenteeism

2013 ◽  
pp. 532-538 ◽  
Author(s):  
Muhammad Kadwa ◽  
Carel N Bezuidenhout
Keyword(s):  
Supply Chain ◽  
South African ◽  
Ad Hoc ◽  
Sugar Mill ◽  
The South ◽  
Optimum Performance ◽  
Kwazulu Natal ◽  
Cane Quality ◽  
The Cost

The Eston Sugar Mill is the newest in the South African KwaZulu-Natal sugar belt. Like most other mills, it can be argued that there are inefficiencies in the supply chain due to systematic issues, which reduce optimum performance. It was alleged that mill processes are slowed, or stopped, on Sundays, Mondays, as well as some Tuesdays and Wednesdays, due to pay-weekends, because of the associated cutter absenteeism. This increases the length of the milling season (LOMS), increases milling costs and reduces the average cane quality for the season. Data on cane deliveries to the Eston Mill, over a period of five seasons, were analysed to study the magnitude of the problem. It was statistically verified that cane shortages occur immediately after payweekends and it was conservatively estimated that cutter absenteeism occurs between 25–29 days per season, which increases the LOMS by six to ten days. The associated cost of this problem equated to an average of US$159,500 (approximately EUR120,000) per milling season. In this paper, an alternative harvesting system scenario is suggested, assuming that mechanical harvesters be used after a pay-weekend, to mitigate the impacts of cutter shortages. However, the solution is calculated to be risky. When the cost of new equipment was considered, only two of the five seasons were able to justify the associated costs.

scholarly journals Evaluating the Economic Viability of Agricultural Pellets to Supplement the Current Global Wood Pellets Supply for Bioenergy Production

Energies ◽  
2021 ◽  
Vol 14 (8) ◽  
pp. 2263
Author(s):  
Mahmood Ebadian ◽  
Shahab Sokhansanj ◽  
David Lee ◽  
Alyssa Klein ◽  
Lawrence Townley-Smith
Keyword(s):  
Supply Chain ◽  
Western Europe ◽  
Small Scale ◽  
Economic Activities ◽  
Wood Pellets ◽  
Logistics System ◽  
Global Marketplace ◽  
Biomass Logistics ◽  
Production And Distribution ◽  
The Cost

In this study, an inter-continental agricultural pellet supply chain is modeled, and the production cost and price of agricultural pellets are estimated and compared against the recent cost and price of wood pellets in the global marketplace. The inter-continental supply chain is verified and validated using an integration of an interactive mapping application and a simulation platform. The integrated model is applied to a case study in which agricultural pellets are produced in six locations in Canada and shipped and discharged at the three major ports in Western Europe. The cost of agricultural pellets in the six locations is estimated to be in the range of EUR 92–95/tonne (CAD 138–142/tonne), which is comparable with the recent cost of wood pellets produced in small-scale pellet plants (EUR 99–109/tonne). The average agricultural pellet price shipped from the six plants to the three ports in Western Europe is estimated to be in a range of EUR 183–204 (CAD 274–305/tonne), 29–42% more expensive that the average recent price of wood pellets (EUR 143/tonne) at the same ports. There are several potential areas in the agricultural pellet supply chains that can reduce the pellet production and distribution costs in the mid and long terms, making them affordable supplement to the existing wood pellet markets. Potential economic activities generated by the production of pellets in farm communities can be significant. The generated annual revenue in the biomass logistics system in all six locations is estimated to be about CAD 21.80 million. In addition, the logistics equipment fleet needs 176 local operators with a potential annual income of CAD 2.18 million.

scholarly journals Application of the theory of decision making under risk and uncertainty at modelling of costs

2010 ◽  
Vol 56 (No. 5) ◽  
pp. 201-208 ◽  
Author(s):  
M. Beranová ◽  
D. Martinovičová
Keyword(s):  
Decision Making ◽  
Financial Accounting ◽  
Cost Functions ◽  
Risk And Uncertainty ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Bayesian Theorem ◽  
Long Run ◽  
Short Run ◽  
The Cost

The costs functions are mentioned mostly in the relation to the Break-even Analysis where they are presented in the linear form. But there exist several different types and forms of cost functions. Fist of all, it is necessary to distinguish between the short-run and long-run cost function that are both very important tools of the managerial decision making even if each one is used on a different level of management. Also several methods of estimation of the cost function's parameters are elaborated in the literature. But all these methods are based on the past data taken from the financial accounting while the financial accounting is not able to separate the fixed and variable costs and it is also strongly adjusted to taxation in the many companies. As a tool of the managerial decision making support, the cost functions should provide a vision to the future where many factors of risk and uncertainty influence economic results. Consequently, these random factors should be considered in the construction of cost functions, especially in the long-run. In order to quantify the influences of these risks and uncertainties, the authors submit the application of the Bayesian Theorem.

Network effect in shared supply chain platform value co-creation behavior in evolutionary game1

2021 ◽  
pp. 1-12
Author(s):  
Zou Xiaohong ◽  
Chen Jinlong ◽  
Gao Shuanping
Keyword(s):  
Boundary Condition ◽  
Supply Chain ◽  
Large Scale ◽  
Simulation Analysis ◽  
Supply And Demand ◽  
Evolutionary Game ◽  
Dynamic Game ◽  
Network Effect ◽  
Chain Model ◽  
The Cost

The shared supply chain model has provided new ideas for solving contradictions between supply and demand for large-scale standardized production by manufacturers and personalized demands of consumers. On the basis of a platform network effect perspective, this study constructs an evolutionary game model of value co-creation behavior for a shared supply chain platform and manufacturers, analyzes their evolutionary stable strategies, and uses numerical simulation analysis to further verify the model. The results revealed that the boundary condition for manufacturers to participate in value co-creation on a shared supply chain platform is that the net production cost of the manufacturers’ participation in the platform value co-creation must be less than that of nonparticipation. In addition, the boundary condition for the shared supply chain platform to actively participate in value co-creation is that the cost of the shared supply chain platform for active participation in value co-creation must be less than that of passive participation. Moreover, value co-creation behavior on the shared supply chain platform is a dynamic game interaction process between players with different benefit perceptions. Finally, the costs and benefits generated by the network effect can affect value co-creation on shared supply chain platforms.

scholarly journals The Impact of Supply Chain Management on Financial Performance and Responsibility Accounting Agribusiness Case from Egypt

2017 ◽  
Vol 6 (2) ◽  
pp. 136 ◽  
Author(s):  
Mohamed Ali Wahdan ◽  
Mohamed Ashraf Emam
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Financial Performance ◽  
Financial Statements ◽  
Net Income ◽  
Chain Management ◽  
Research Questions ◽  
The Cost ◽  
The Impact ◽  
Responsibility Accounting

This paper presents the impact of applying the supply chain management (SCM) on the agribusiness field to optimize productivity and decreasing cost which will have a direct impact on the net income of the organization. The main two research questions are: is there a significant impact of supply chain management on financial performance? and is there a significant relationship between supply chain management and financial performance as well as responsibility accounting? To answer the research questions, data was collected from financial statements of agribusiness case from Egypt and the survey was conducted. The findings of the study indicated that there is a significant impact of supply chain management on financial performance through enhancing the productivity, decreasing the cost and improving profitability. Moreover, applying the efficient supply chain management can improve the use of responsibility accounting through the efficient usage for the budget of the crop.

Enterprise Inventory Control Based on Supply Chain Management

2012 ◽  
Vol 472-475 ◽  
pp. 3273-3276
Author(s):  
Qing Ying Zhang ◽  
Ying Chi ◽  
Yu Liu ◽  
Qian Shi
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Inventory Control ◽  
Control Strategies ◽  
Minimum Cost ◽  
Chain Management ◽  
Main Target ◽  
The Cost

The main target of supply chain management is to control inventory of each node enterprise effectively with the minimum cost. In this paper, the control strategies and methods of inventory based on supply chain management are put forward, which are significant for saving the cost of supply chain and improving the overall benefits of the whole chain.

Cost Effectiveness Analysis in Short Sea Shipping: Evidence from Northeast Asian Routes

2021 ◽  
Vol 9 (12) ◽  
pp. 1340
Author(s):  
Xue-Bin Zheng ◽  
Yul-Seong Kim ◽  
Young-Ran Shin
Keyword(s):  
Supply Chain ◽  
Cost Effectiveness ◽  
Short Sea Shipping ◽  
Effectiveness Analysis ◽  
Transportation Modes ◽  
Lift Off ◽  
Cooperative Relationship ◽  
High Level ◽  
Northeast Asian ◽  
The Cost

Nowadays, roll-on/roll-off (Ro-Ro) is an important mode for short sea shipping (SSS) due to its advantages of fast and convenient load and unloading system. Despite the advantages, the market share of Ro-Ro is insignificant compared with lift-on/lift-off (Lo-Lo) in the Northeast Asian region that is geographically suitable for fostering SSS. Therefore, it is of utmost importance to have a better understanding of the effectiveness or Ro-Ro and Lo-Lo in the regional SSS market. For this purpose, this paper develops a model to estimate the total logistics cost of the two transportation modes. The total logistics costs of Ro-Ro and Lo-Lo are calculated on three major SSS routes between Korea and Japan. The results show that Lo-Lo outperforms Ro-Ro on most routes in terms of the cost effectiveness, and Ro-Ro is competitive only for high-priced and time-sensitive cargo. However, it is also documented that Ro-Ro transport has a significant impact on reduction in the total logistics costs when companies integrate the supply chain and improve the cooperative relationship to a high level.

PLANNING OF LOGISTICS SUPPORT FOR THE DISPOSAL OF HOUSEHOLD E-WASTE

2021 ◽  
Vol 1 (9) ◽  
pp. 79-84
Author(s):  
NGUYEN THI THU HUONG ◽  
◽  
O. N. LARIN ◽  
◽  
Keyword(s):  
Supply Chain ◽  
Cost Effectiveness ◽  
Garbage Collection ◽  
Electronic Waste ◽  
Waste Collection ◽  
Official Statistics ◽  
Factors Associated ◽  
The Creation ◽  
The Cost

The article describes the factors associated with the planning of logistics support for the disposal of household electronic waste. Identifying these factors plays an important role in coordinating to ensure the cost-effectiveness of the costs of recycling e-waste at all stages of the supply chain from the source of waste to where it is accumulated and then recycled. The article describes the importance of such processes as: the development of a method for determining the volume of household electronic waste generated in the administrative-territorial district, the creation of a network of waste collection points, the determination of the amount and throughput of waste collection points, the need to organize garbage collection from the place of collection at the lowest cost. The study was conducted on the basis of an analysis of official statistics from the five most populous cities in Vietnam and thirty regions of Hanoi.

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