An Ontology-based Bayesian network modelling for supply chain risk propagation

2019 ◽  
Vol 119 (8) ◽  
pp. 1691-1711 ◽  
Author(s):  
Shoufeng Cao ◽  
Kim Bryceson ◽  
Damian Hine

Purpose Supply chain risks (SCRs) do not work in isolation and have impact both on each member of a chain and the performance of the entire supply chain. The purpose of this paper is to quantitatively assess the impact of dynamic risk propagation within and between integrated firms in global fresh produce supply chains. Design/methodology/approach A risk propagation ontology-based Bayesian network (BN) model was developed to measure dynamic SCR propagation. The proposed model was applied to a two-tier Australia-China table grape supply chain (ACTGSC) featured with an upstream Australian integrated grower and exporter and a downstream Chinese integrated importer and online retailer. Findings An ontology-based BN can be generated to accurately represent the risk domain of interest using the knowledge and inference capabilities inherent in a risk propagation ontology. In addition, the analyses revealed that supply discontinuity, product inconsistency and/or delivery delay originating in the upstream firm can propagate to increase the downstream firm’s customer value risk and business performance risk. Research limitations/implications The work was conducted in an Australian-China table grape supply chain, so results are only product chain-specific in nature. Additionally, only two state values were considered for all nodes in the model, and finally, while the proposed methodology does provide a large-scale risk network map, it may not be appropriate for a large supply chain network as it only follows the process flow of a single supply chain. Practical implications This study supports the backward-looking traceability of risk root causes through the ACTGSC and the forward-looking prediction of risk propagation to key risk performance measures. Social implications The methodology used in this paper provides an evidence-based decision-making capability as part of a system-wide risk management approach and fosters collaborative SCR management, which can yield numerous societal benefits. Originality/value The proposed methodology addresses the challenges in using a knowledge-based approach to develop a BN model, particularly with a large-scale model and integrates risk and performance for a holistic risk propagation assessment. The combination of modelling approaches to address the issue is unique.

2014 ◽  
Vol 19 (2) ◽  
pp. 142-152 ◽  
Author(s):  
Kathryn A. Marley ◽  
Peter T. Ward ◽  
James A. Hill

Purpose – Existing supply chain literature provides examples of countermeasures that firms can adopt to mitigate abnormal or catastrophic supply chain disruptions. However, none address reducing interactive complexity prior to adopting countermeasures to mitigate everyday or normal supply chain disruptions. Most mitigation strategies focus on adding capabilities or resources to protect an organization. Here, the authors aim to consider an alternative strategy of examining current processes to determine whether processes can be simplified by using the normal accident theory and its constructs of interactive complexity and coupling as a theoretical basis. Design/methodology/approach – The authors develop a model based on the normal accident theory and use logistic regression to test their propositions in the context of a steel processing plant and its customers. Findings – The findings show the importance of reducing interactive complexity to mitigate supply chain disruptions. However, high inventory is not considered a significant countermeasure, and high inventory levels may increase the likelihood of causing a disruption downstream. These findings support the lean management approach of operating under low inventory levels while eliminating complexity to make problems more visible, causing fewer disruptions. Originality/value – While others have examined the impact of mitigation strategies conceptually, no study has captured information from actual supply chain disruptions to assess how interactive complexity and inventory levels affect disruption potential at downstream customers' facilities. Capturing information from supply chain disruptions enables managers to assess the situation as the disruption is occurring. The authors suggest a strategy in which countermeasures that increase slack in the system should be considered only after the system is sufficiently simplified to mitigate disruptions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme F. Frederico ◽  
Vikas Kumar ◽  
Jose Arturo Garza-Reyes

PurposeThis research investigates the impact of the strategic sourcing process on the supply chain response to COVID-19. The paper presents practitioners' perspectives (experts in supply chain management, especially involved in the procurement field) on the strategic sourcing process's impact on the supply chain response.Design/methodology/approachThe study follows a survey-based approach for data collection. It uses a descriptive survey methodology where questions related to the impact of the strategic sourcing process on the supply chain response in the face of the coronavirus pandemic were explored by practitioners.FindingsIn total, 130 valid responses were obtained. The results showed that the majority of respondents agreed or strongly agreed that strategic sourcing positively impacts the supply chain response amid the COVID-19 effects. Also, for the five phases of the strategic sourcing process, the majority of respondents considered them as a high and very high impact on the supply chain response.Research limitations/implicationsThis paper provides timely insights for practitioners and academics, especially those involved in the supply chain management area, showing how the strategic sourcing process plays an important role in making supply chains more responsive amid disruption situations.Practical implicationsFindings of this paper clearly shows the impact of the phases of the strategic sourcing process on the responsiveness of the supply chains amid the COVID-19 pandemic. This can encourage supply chain leadership to devote more time to strategic sourcing initiatives to generate improvements on the supply chain performance.Originality/valueThis paper is unique since it brings an unexplored relation in respect to strategic sourcing amid disruption situations, such as the COVID-19 pandemic, from a practitioner's perspective. It also significantly contributes to developing new directions for the supply chain management domain to deal with large-scale disruptions, such as the coronavirus pandemic.


2017 ◽  
Vol 22 (2) ◽  
pp. 172-185 ◽  
Author(s):  
Moh’d Anwer Al-Shboul

Purpose The main purpose of this study is to examine the role of delivery dependability and time to market, on the relation between the infrastructure framework and supply chain agility. Furthermore, the impacts of supply chain agility on firm performance are examined. Design/methodology/approach Data were collected from 113 respondents, senior executives and managers, in purchasing, operations, supplying, planning and other supply chain functions in large manufacturing firms in the MENA region, which includes 12 countries (Jordan, Lebanon, Egypt, Saudi Arabia, United Arab Emirates, Kuwait, Oman, Bahrain, Qatar, Morocco, Tunis and Algeria). A large-scale survey questionnaire was used for data collection process. The research framework was tested by using hypothesis-testing deductive approach. The results are based on covariance-based analysis and structural equation modelling using analysis of moment structures software. Findings The results show that infrastructure framework elements do not contribute significantly to support supply chain agility. It is also found that delivery dependability and time to market partially mediate the relationship between infrastructure framework elements and supply chain agility. Additionally, it is found that supply chain agility is associated with enhanced firm performance. Originality/value This paper provides an overview and empirically shows that delivery dependability and time to market are appropriate logistics practices for mediating the impact of infrastructure framework and supply chain agility. These relationships indicate a contribution to theory that explains how infrastructure framework elements can procreate supply chain agility, through the synchronising of appropriately matched logistics practices.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Temidayo Oluwasola Osunsanmi ◽  
Clinton Ohis Aigbavboa ◽  
Wellington Didibhuku Didibhuku Thwala ◽  
Ramabodu Molusiwa

Purpose The COVID-19 pandemic came with a lot of stress, uncertainty and disruption for managing the construction supply chain (CSC). The disruption in return caused weak resilience of CSC activities. Unfortunately, the existing models for managing CSC focus on preparedness and recovery while neglecting the visibility perspective of resilience CSC. Towards creating a resilience CSC, this study modelled construction 4.0 as the vaccine for supply chain resilience in the construction industry. Design/methodology/approach A survey questionnaire was used to collect data randomly from construction stakeholders. The questionnaire was analysed with a structural equation model analysis using SmartPLS while conducting tests such as path coefficient analysis, discriminant analysis and importance-performance analysis. Findings This study discovered that construction 4.0 is a significant tool and vaccine for ensuring visibility, recovery and adaptation within the supply chain. Construction 4.0 will function as a vaccine for ensuring resilience because of its capacity to optimise CSC management by introducing an evidence-based management approach and less dependent on implicit knowledge. Towards reaping the full potential of construction 4.0, it should be adopted as a moderating variable. Research limitations/implications The research is limited by the use of a single methodology (quantitative) without including a qualitative method to understand better and explore the impact of construction 4.0 on CSC resilience. The qualitative part can be carried out by conducting interviews targeted at construction stakeholders. Practical implications In spite of the limitations, the findings of this study contributed to building a more responsive and resilient CSC during the pandemic period. Furthermore, this study also presented the crucial construction 4.0 technology capable of ensuring resilience within the CSC. Originality/value This paper presents a model for applying construction 4.0 as a vaccine for ensuring CSC resilience during the COVID-19 pandemic period. This study contributed to ensuring that decisions made within the CSC adopt an evidence-based approach.


Author(s):  
Judy A. Siguaw ◽  
Jule B. Gassenheimer ◽  
Gary L. Hunter

Purpose – While prior studies have examined how loyal customers create value for preferred manufacturers, this study aims to focus on the supply chain and captures the indirect economic and relational benefits and costs of customer value creation on channel intermediaries. Design/methodology/approach – Service-dominant logic is used to explain the rationale behind consumer contributions and supply chain connectedness in an interactive online world. Drawing from the relevant literature, a conceptual model supported by propositions is presented. Findings – As manufacturers utilize consumer contributions, affiliated intermediaries will report having less informational power, providing less value to the channel, greater benefit-based and cost-based dependence, heightened efforts to create channel value, an enhanced reputation and greater sales, and greater collaboration with customers. Research limitations/implications – This conceptual paper is the beginning of an investigation into the pragmatic function of a service-dominant view as it pertains to a marketing channel. As this avenue for research is further developed, it is important that the propositions included in this study first be examined. Practical implications – Awareness of the underlying logic and the resulting impacts should aid channel intermediaries in realizing their own contributions throughout the manufacturer ' s value chain and recognizing changes to their positions of power. As a result, channel intermediaries should be better positioned to assess the health and future prospects of the relationship. Originality/value – This work is the first study to examine potential impacts on the intermediary operating in a channel in which the manufacturer is significantly influenced by consumer contributions.


Author(s):  
David Gligor ◽  
Siddik Bozkurt ◽  
Ismail Gölgeci ◽  
Michael J. Maloni

PurposeDespite the recent wealth of supply chain agility literature, scholars have yet to thoroughly examine its impacts on the customer experience. To address this gap, we assess the effects of supply chain agility on customer value and customer satisfaction, including the moderating role of customer loyalty, from the perspectives of both business customers (B2B) and end-customers (B2C).Design/methodology/approachWe used multivariate regression analysis to evaluate direct, indirect and conditional effects across survey responses from 148 senior-level supply chain managers (buyers) (Study 1) and 170 end-customers (i.e. consumers) (Study 2).FindingsThe results reveal that supply chain agility retains a direct link to both B2B and B2C’ value and satisfaction. However, a higher level of customer loyalty reduces the strength of these relationships, signifying that agility is less important with established customers. In this respect, agility is important to attract new customers, but more agility is not always beneficial once the customer relationship is established.Originality/valueThe current study is among the first to examine end-customer response to supply chain agility. The findings complement existing literature by providing novel insights into the impact of supply chain agility on both business customers (B2B) and end-customers (B2C).


2017 ◽  
Vol 40 (3) ◽  
pp. 254-269 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple ◽  
Thomas Goldsby

Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.


2017 ◽  
Vol 83 (24) ◽  
Author(s):  
Alistair H. Bishop

ABSTRACT Endospores of the genus Bacillus can be triggered to germinate by a limited number of chemicals. Mandelate had powerful additive effects on the levels and rates of germination produced in non-heat-shocked spores of Bacillus anthracis strain Sterne, Bacillus cereus, and Bacillus thuringiensis when combined with l-alanine and inosine. Mandelate had no germinant effect on its own but was active with these germinants in a dose-dependent manner at concentrations higher than 0.5 mM. The maximum rate and extent of germination were produced in B. anthracis by 100 mM l-alanine with 10 mM inosine; this was equaled by just 25% of these germinants when supplemented with 10 mM mandelate. Half the maximal germination rate was produced by 40% of the optimum germinant concentrations or 15% of them when supplemented with 0.8 mM mandelate. Germination rates in B. thuringiensis were highest around neutrality, but the potentiating effect of mandelate was maintained over a wider pH range than was germination with l-alanine and inosine alone. For all species, lactate also promoted germination in the presence of l-alanine and inosine; this was further increased by mandelate. Ammonium ions also enhanced l-alanine- and inosine-induced germination but only when mandelate was present. In spite of the structural similarities, mandelate did not compete with phenylalanine as a germinant. Mandelate appeared to bind to spores while enhancing germination. There was no effect when mandelate was used in conjunction with nonnutrient germinants. No effect was produced with spores of Bacillus subtilis, Clostridium sporogenes, or C. difficile. IMPORTANCE The number of chemicals that can induce germination in the species related to Bacillus cereus has been defined for many years, and they conform to specific chemical types. Although not a germinant itself, mandelate has a structure that is different from these germination-active compounds, and its addition to this list represents a significant discovery in the fundamental biology of spore germination. This novel activity may also have important applied relevance given the impact of spores of B. cereus in foodborne disease and B. anthracis as a threat agent. The destruction of spores of B. anthracis, for example, particularly over large outdoor areas, poses significant scientific and logistical problems. The addition of mandelate and lactate to the established mixtures of l-alanine and inosine would decrease the amount of the established germinants required and increase the speed and level of germination achieved. The large-scale application of “germinate to decontaminate” strategy may thus become more practicable.


2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.


2014 ◽  
Vol 40 (7) ◽  
pp. 734-754 ◽  
Author(s):  
Yoram Kroll ◽  
David Yechiam Aharon

Purpose – The purpose of this paper is to develop alternative analytical measures for the degree of operating leverage (DOL) that reflect the impact of uncertain demand shocks in the product's market on optimal production levels, sales and profits of the firm. Design/methodology/approach – The elasticity measures are constructed according to a theoretical formulation of optimal production level that corresponds to demand shocks for given predetermined levels of fixed cost. Findings – The paper suggests two main findings. First, the analytical marginal DOL is at least twice the traditional DOL depending on the structure of the shock, the production function and demand's elasticity. The traditional DOL is equal to the measure only when large-scale negative demand prompts the firm to abandon production. Second, the paper also provides an analytical measure of DOL in terms of elasticity of profit to sales rather than to production level. Both theoretically and empirically elasticity of profit to sales can be better measured and better reflects risk. Research limitations/implications – This paper should be extended to encompass multiple shocks on demand and supply while investigating the empirical multi variants distribution of the shocks. Practical implications – The model can be used by managers who are well informed about the fixed and variable costs of their firm. The model determines the mean profit- risk trade off which is an important factor in all investment decision problems. Originality/value – Surprisingly and according to the best knowledge, this paper is the first attempt in the literature for alternative analytical DOLs’ formulations that is coherent with basic economic theories of optimal production level under risk.


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