scholarly journals Sourcing decision under interconnected risks: an application of mean–variance preferences approach

2022 ◽  
Author(s):  
Soumyatanu Mukherjee ◽  
Sidhartha S. Padhi
Keyword(s):  
Supply Chain ◽  
Decision Maker ◽  
Raw Materials ◽  
Drug Manufacturer ◽  
Perfect Competition ◽  
Supply Side ◽  
Demand Side ◽  
The Mean ◽  
Supply Chain Risks ◽  
Mean Variance

AbstractSupply chains are customarily associated with multiple interconnected risks originated from supply side, demand side, or from the unanticipated background uncertainties faced by a firm. Also, effective functioning of supply chain hinges on sourcing decisions of inputs (raw materials). Therefore, there is a striking need to analyse the risk preference of the decision maker while going for optimal sourcing decision under varying degree of interconnected supply chain risks. This study addresses this issue by analysing the comparative static effects under interconnected supply chain risks for a risk averse decision-maker, manufacturing and selling products in a regulated market under perfect competition. The decision-maker faces not only supply-side risk (due to random input material prices) but also interconnected risks arising out of background risk (setup costs risk) and demand-side risk (output prices risk). With preferences defined over the mean and standard deviation of the uncertain final profit, this study illustrates the effects of the changes in the pairwise correlations between the three above mentioned risks on the optimum input choice of the manufacturer. To contextualise this study, an India-based generic drug manufacturer cum seller has been considered as a case in the parametric example of our model. Adaptation of the mean–variance framework helps obtaining all the results in terms of the relative trade-off between risk and return, with simple yet intuitive interpretations.

scholarly journals Pandemic turned into pandemonium: the effect on supply chains and the role of accounting information

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ajantha Velayutham ◽  
Asheq Razaur Rahman ◽  
Anil Narayan ◽  
Michael Wang
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Raw Materials ◽  
Accounting Information ◽  
Supply Side ◽  
Demand Side ◽  
Content Type ◽  
Business Entities ◽  
Respiratory Devices

PurposeThe purpose of this study is to examine the disruptive effects of COVID-19 on supply chains and question the role of accounting information in managing these supply chains in the face of such disruptive effects.Design/methodology/approachThe study first explains the effects of COVID-19 on the supply chains of business entities. It then explains the role of accounting information in supply chain management, questions accounting information's ability to play such a role, and makes recommendations for better accounting disclosures and accounting research for supply chains of firms. To illustrate the salient points, a case study of Fisher and Paykel Healthcare is conducted. It identifies the risks and uncertainties of supply chains exposed by COVID-19 disruptions to businesses.FindingsCOVID-19 has affected Fisher and Paykel Healthcare from both the supply-side (upstream) and demand-side (downstream) perspectives. On the supply side, it has disrupted the supply of raw materials used in the manufacture of respiratory devices and the costs of importing such materials. On the demand side, it has disrupted market logistics and customer demand. This has subsequently affected production. Such disruptions can be overcome through the dissemination of appropriate accounting information for the different stages of the supply chain to the managers. Such accounting information can also be useful to external stakeholders for minimizing their risks.Originality/valueThe study attempts to create an awareness of the supply chain uncertainties faced by managers and stakeholders arising from exogenous shocks, such as a pandemic, and how these uncertainties can be mitigated by aligning accounting information flows with the supply chain activity flows. The observations made in this paper are at a conceptual level and, therefore, can be applied to any industry.

Supply chain networks, electronic commerce, and supply side and demand side risk

2005 ◽  
Vol 164 (1) ◽  
pp. 120-142 ◽  
Author(s):  
Anna Nagurney ◽  
Jose Cruz ◽  
June Dong ◽  
Ding Zhang
Keyword(s):  
Supply Chain ◽  
Electronic Commerce ◽  
Supply Side ◽  
Demand Side ◽  
Supply Chain Networks

Global Value Chains, Industrial Hubs, and Economic Development in the Twenty-first Century

2020 ◽  
pp. 1048-1068
Author(s):  
Gary Gereffi ◽  
Xinyi Wu
Keyword(s):  
Value Chain ◽  
Raw Materials ◽  
The United States ◽  
First Century ◽  
Value Chains ◽  
Supply Side ◽  
Global Value Chain ◽  
Demand Side ◽  
Trade War ◽  
Athletic Footwear

This chapter uses the global value chain (GVC) framework to analyse the shifting strategies of key lead firms and first-tier suppliers in the athletic footwear and electronics industries. Growing cost pressures for labour and raw materials, as well as the potential political disruption from the escalating ‘trade war’ between the United States and China and the accelerating technological disruption sparked by the digital economy on both the demand side (e.g. e-commerce) and the supply side (e.g. automation) of GVCs, are encouraging brand leaders and major suppliers in both GVCs (such as Adidas and Nike in footwear, and Apple and Foxconn in electronics) to pursue automation in select factories in their supply chains. However, the industrial hubs where athletic footwear and electronics production is concentrated remain overwhelmingly labour-intensive, both in China and elsewhere in Asia (such as Vietnam and Indonesia) where big suppliers are moving to diversify their options.

Application of MSTAM Methodology in Project Management

2019 ◽  
pp. 298-323
Author(s):  
Siu Cheung Ho ◽  
Kong Bieng Chuah
Keyword(s):  
Supply Chain ◽  
Technology Development ◽  
Two Dimensions ◽  
Supply Side ◽  
Demand Side ◽  
User Perspective ◽  
Innovation And Technology ◽  
Project Deliverables ◽  
Pilot Implementation

Innovation technology development and commercialization are not new, but this is a hot topic in this decade in Hong Kong. The relevant researches are focused on two dimensions from research and development (R&D) technologist perspective (supply-side) and industry user perspective (demand-side). This is a part of the author's engineering doctorate thesis. The thesis title is “An Analysis of the Determinants of Innovation and Technology Fund (ITF) R&D Projects Commercialization in Hong Kong's Logistics and Supply Chain Industries.” A pilot implementation case study has been conducted and tested, and the MSTAM methodology are workable for ITF R&D project deliverables commercialization to the industry.

scholarly journals Profiling Actors and Risk Management in the Cashew Supply Chain in Kogi State, Nigeria

2021 ◽  
pp. 11-20
Author(s):  
M. K. Ibrahim
Keyword(s):  
Supply Chain ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Primary Data ◽  
Socioeconomic Indicators ◽  
Agricultural Insurance ◽  
Cashew Nut ◽  
Related Risk ◽  
The Mean ◽  
Supply Chain Risks

This study profiled actors and analysed the risks associated with cashew supply chain in Kogi State, Nigeria. It specifically profiled actors in the cashew supply chain by socioeconomic indicators, identified the risks associated with the cashew supply chain, ascertain the severity of the supply chain risks, and assessed the strategies employed by the actors to mitigate the effects of the risks. Multistage random sampling technique was used to select one hundred cashew nut farmers, twenty each of major buyers, warehouse owners and processors. Primary data used for the study was obtained using questionnaire design and interview schedule. Data obtained were analysed using descriptive statistics.. More males were involved in the cashew supply chain than their female counterpart. The mean age was 37 years, 39 years, 40 years and 37 years for farmers, major buyers, warehouse owners, and processors respectively. Production and climate related risks were more recorded among the cashew nut farmers and processors. Financial related risks is a major source of risk among actors whose activities are marketing related, while government policy or institutional related risks was recorded across all actors in the cashew supply chain. Furthermore, 95% and 65% of farmers and processors respectively, in the cashew supply chain agreed to the severity of production related risks in their activities, while 85%, 80%, 75% and 70% of farmers, major buyers, warehouse owners and processors respectively, agreed to the severity of financial related risks. Climate related risk were more severe among the farmers (75%) while the severity of institutional related risk were more among major buyers (85%) and warehouse owners (75%).  The various strategies employed by actors across the cashew supply chain to mitigate the effects of risks were generally preventive strategies. Based on the findings from the study, the need for cooperative formation, financial literacy training, and awareness on the need for agricultural insurance participation by farmers and other agribusiness actors were recommended.

Application of MSTAM Methodology in Project Management

2022 ◽  
pp. 135-160
Author(s):  
Siu Cheung Ho ◽  
Kong Bieng Chuah
Keyword(s):  
Supply Chain ◽  
Technology Development ◽  
Two Dimensions ◽  
Supply Side ◽  
Demand Side ◽  
User Perspective ◽  
Innovation And Technology ◽  
Project Deliverables ◽  
Pilot Implementation

Innovation technology development and commercialization are not new, but this is a hot topic in this decade in Hong Kong. The relevant researches are focused on two dimensions from research and development (R&D) technologist perspective (supply-side) and industry user perspective (demand-side). This is a part of the author's engineering doctorate thesis. The thesis title is “An Analysis of the Determinants of Innovation and Technology Fund (ITF) R&D Projects Commercialization in Hong Kong's Logistics and Supply Chain Industries.” A pilot implementation case study has been conducted and tested, and the MSTAM methodology are workable for ITF R&D project deliverables commercialization to the industry.

scholarly journals Strategic planning in a forest supply chain: a multigoal and multiproduct approach

2017 ◽  
Vol 47 (3) ◽  
pp. 297-307 ◽  
Author(s):  
Diego Broz ◽  
Guillermo Durand ◽  
Daniel Rossit ◽  
Fernando Tohmé ◽  
Mariano Frutos
Keyword(s):  
Supply Chain ◽  
Carbon Capture ◽  
Net Present Value ◽  
Raw Materials ◽  
Forest Biomass ◽  
Computationally Efficient ◽  
Economic Activities ◽  
Industrial Plants ◽  
The Mean ◽  
Forest Supply Chain

Supply chain management problems are widespread across all economic activities. We analyze here how to address these in the case of the forest industry, which in emerging economies such as Argentina is subject to high logistic costs and faces problems of biological and economic sustainability. In this work, we analyze a management model covering from the schedule of harvesting activities and the transportation of raw materials to the final transformation at several industrial plants. Since this involves more than one objective, single-criterion mathematical programming methods are not appropriate. Here, instead, we introduce an extended goal programming formulation of the problem, able to yield good solutions in a computationally efficient way. We consider four goals: the maximization of the net present value of the production, the minimization of interannual variations in harvests, the maximization of carbon capture in the form of forest biomass, and the minimization of variations in the mean annual distance covered in transportation to the industrial plants. We apply this theoretical model to derive solutions for an actual Argentinean company. We show that the model reaches the target levels of the different goals, except for carbon balance, which is negative in all of the scenarios under evaluation.

PP155 Demand Side And Supply Side Of Healthcare Supply Chain

2019 ◽  
Vol 35 (S1) ◽  
pp. 66-67
Author(s):  
Isotta Triulzi ◽  
Flavia Di Pasquale ◽  
Leopoldo Trieste ◽  
Andrea Antonel ◽  
Ettore Rossi ◽  
...  
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Cold Chain ◽  
Public Healthcare ◽  
Supply Side ◽  
Local Health ◽  
Demand Side ◽  
The Public ◽  
High Interest ◽  
Private Providers

IntroductionThe re-organization of the supply chain (SC) of medicines and medical devices may improve the efficacy and efficiency of the National Health Service (NHS). The aims of this study were to (i) identify the offers provided by private operators to NHS, and (ii) analyze the organizational model of the public healthcare SC system and its criticalities.MethodsTwo online surveys have been designed. Regarding the first survey, managers of private providers associated with the National Association of Commercial and Logistic Operators (ASSORAM) have been interviewed to identify the offers provided to the NHS. The second has been submitted to managers of local health authorities and university hospitals associated to the Italian Association of Hospitals (FIASO) to gather both organizational/managerial information (warehouse capacity, purchasing, registry, security) and qualitative aspects of the SC. Data was collected in 2015.ResultsOn the supply side, 41 providers have been interviewed. More than 70 percent of associates managed mainly hospital products; 67 percent of interviewees delivered less than 30 percent of products to hospitals, and only eight percent delivered about 70 percent of the products to hospitals. The providers’ infrastructure (warehouses, transport, information technology, cold chain, gross domestic product) were adequately regulated and they adopted a wide list of indicators for monitoring performance. Private providers showed high interest in investing in the hospital sector. On the demand side (56 hospitals from 28 regions) the main weaknesses of SC are related to infrastructure, information technology, human resources, a lack of financial resources and inadequate process control.ConclusionsThe study highlighted extremely limited outsourcing in the hospital field to date, weaknesses in the public system and a high interest of private providers in investing in public hospital SC.

scholarly journals Optimization of the Mean-Variance Model Investment Portfolio in Five Mining Stocks Traded on the IDX

2021 ◽  
Vol 2 (2) ◽  
pp. 64-70
Author(s):  
Guskenoly Fauziah
Keyword(s):  
Industrial Development ◽  
Raw Materials ◽  
Energy Resource ◽  
Optimization Method ◽  
Capital Allocation ◽  
Investment Portfolio ◽  
Variance Model ◽  
The Mean ◽  
Investment Portfolios ◽  
Mean Variance

The Mining and Energy sector is a major foreign exchange earner, provides the largest energy resource, and as an absorber of labor. In addition, most of the energy resources used in the Indonesian economy come from mining. namely oil and coal. Investment for mining and energy exploration in Indonesia needs to be a priority and continue to be encouraged to maintain the level of reserves as raw materials for future industrial development, including downstream. This study aims to measure the performance of investment portfolios in several stocks in the Mining and Energy sectors. The portfolio optimization method is carried out using the Mean-Variance model (Markowitz model). Based on the results of the analysis, it is obtained that the combination and proportion of capital allocation on several stocks in the formation of an investment portfolio that has better performance, where the optimum portfolio composition obtained a portfolio return of 0.000866205 with a portfolio variance of 0.000261104. In addition, the results of the analysis can be concluded that the return ratio can affect the model.

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