Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets

2019 ◽  
Vol 14 (2) ◽  
pp. 360-384 ◽  
Author(s):  
Maria Drakaki ◽  
Panagiotis Tzionas

PurposeInformation distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records. As inventory inaccuracy contributes to the bullwhip effect, the purpose of this paper is to investigate the impact of inventory inaccuracy on the bullwhip effect in radio-frequency identification (RFID)-enabled supply chains and, in this context, to evaluate supply chain performance because of the RFID technology.Design/methodology/approachA simulation modeling method based on hierarchical timed colored petri nets is presented to model inventory management in multi-stage serial supply chains subject to inventory inaccuracy for various traditional and information sharing configurations in the presence and absence of RFID. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results.FindingsThe bullwhip effect is increased in RFID-enabled multi-stage serial supply chains subject to inventory inaccuracy. The information sharing supply chain is more sensitive to the impact of inventory inaccuracy.Research limitations/implicationsInformation sharing involves collaboration in market demand and inventory inaccuracy, whereas RFID is implemented by all echelons. To obtain the full benefits of RFID adoption and collaboration, different collaboration strategies should be investigated.Originality/valueColored petri nets simulation modeling of the inventory management process is a novel approach to study supply chain dynamics. In the context of inventory errors, information on RFID impact on the dynamic behavior of multi-stage serial supply chains is provided.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt

PurposeThis study explores the countermeasures taken by retailers to mitigate the effects of COVID-19 on supply chain disruptions.Design/methodology/approachThis research uses a multiple case study approach and undertakes 36 semi-structured interviews with senior management of the four largest retailers of the United Arab Emirates. The respondents were designated at different positions such as Vice President, Director and Project Manager.FindingsResults reveal that retailers are employing six countermeasures to mitigate the effects of COVID-19 on supply chains. Particularly, retailers are securing required demand, preserving cash flows, redirecting inventory, adding capacity to their distribution centres, becoming more flexible with their direct or third-party logistics provider and finally widening delivery options for their suppliers to mitigate the impact of COVID-19.Research limitations/implicationsThis study has some limitations. First, the results of this study cannot be generalized to a broader population as it attempts to build an initial theory. Second, this study uses a cross-sectional approach to explore the countermeasures employed by retailing firms to mitigate the effects of COVID-19.Originality/valueA notable weakness in a supply chain disruption literature is an unfulfilled need for research examining the strategies employed by retailers to respond to/address the challenges posed by COVID-19. Our study fills this gap.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sindhuja P.N.

Purpose Information security is an essential element in all business activities. The damage to businesses from information security breaches has become pervasive. The scope of information security has widened as information has become a critical supply chain asset, making it more important to protect the organization’s data. Today’s global supply chains rely upon the speedy and robust dissemination of information among supply chain partners. Hence, processing of accurate supply chain information is quintessential to ensure the robustness and performance of supply chains. An effective information security management (ISM) is deemed to ensure the robustness of supply chains. The purpose of the paper is to examine the impact of information security initiatives on supply chain robustness and performance. Design/methodology/approach Based on extant literature, a research model was developed and validated using a questionnaire survey instrument administered among information systems/information technology managers. Data collected were analyzed using exploratory and confirmatory factor analysis. Further, to test the hypotheses and to fit the theoretical model, Structural equation modeling techniques were used. Findings Results of this study indicated that information security initiatives are positively associated with supply chain robustness and performance. These initiatives are likely to enhance the robustness and performance of the supply chains. Originality/value With the advancements in internet technologies and capabilities as well as considering the dynamic environment of supply chains, this study is relevant in terms of the capability that an organization needs to acquire with regards to ISM. Benefiting from the resource dependency theory, information security initiatives could be considered as a critical resource having an influence on the internal and external environment of supply chains.


2019 ◽  
Vol 24 (1) ◽  
pp. 5-21 ◽  
Author(s):  
Claudia Colicchia ◽  
Alessandro Creazza ◽  
Carlo Noè ◽  
Fernanda Strozzi

Purpose The purpose of this paper is to identify and discuss the most important research areas on information sharing in supply chains and related risks, taking into account their evolution over time. This paper sheds light on what is happening today and what the trajectories for the future are, with particular respect to the implications for supply chain management. Design/methodology/approach The dynamic literature review method called Systematic Literature Network Analysis (SLNA) was adopted. It combines the Systematic Literature Review approach and bibliographic network analyses, and it relies on objective measures and algorithms to perform quantitative literature-based detection of emerging topics. Findings The focus of the literature seems to be on threats that are internal to the extended supply chain rather than on external attacks, such as viruses, traditionally related to information technology (IT). The main arising risk appears to be the intentional or non-intentional leakage of information. Also, papers analyze the implications for information sharing coming from “soft” factors such as trust and collaboration among supply chain partners. Opportunities are also highlighted and include how information sharing can be leveraged to confront disruptions and increase resilience. Research limitations/implications The adopted methodology allows for providing an original perspective on the investigated topic, that is, how information sharing in supply chains and related risks are evolving over time because of the turbulent advances in technology. Practical implications Emergent and highly critical risks related to information sharing are highlighted to support the design of supply chain risks strategies. Also, critical areas to the development of “beyond-the-dyad” initiatives to manage information sharing risks emerge. Opportunities coming from information sharing that are less known and exploited by companies are provided. Originality/value This paper focuses on the supply chain perspective rather than the traditional IT-based view of information sharing. According to this perspective, this paper provides a dynamic representation of the literature on the investigated topic. This is an important contribution to the topic of information sharing in supply chains is continuously evolving and shaping new supply chain models.


2019 ◽  
Vol 10 (2) ◽  
pp. 290-313 ◽  
Author(s):  
Matloub Hussain ◽  
Mehmood Khan ◽  
Mian Ajmal ◽  
Karim Sajjad Sheikh ◽  
Amiruddin Ahamat

Purpose The purpose of this paper is to develop a framework for the identification, categorization and prioritization of social sustainability barriers in health-care supply chains. Design/methodology/approach An exploratory survey tool is used to identify barriers that are relevant to a health-care supply chain. The identified barriers are grouped into five main categories and experts’ opinions were applied to validate the content. Finally, an analytical hierarchical process (AHP) is used to prioritize the main categories and sub-categories of the barriers. Findings The exploratory phase identified 34 barriers that are relevant to a health-care supply chain. These barriers were grouped into the following categories: poor infrastructure, organizational culture, poor coordination, stakeholder disparity, and uncertainty. Organizational culture and poor coordination were assigned the highest priority through the AHP. Overall, lack of management support, lack of commitment and lack of coordination were found to be the top relevant barriers to a health-care supply chain. Research limitations/implications This study only explored and prioritized the barriers of social sustainability. Future research should explore the impact of the identified barriers on the overall performance of the hospital supply chain. Practical implications The findings of this study may be of value to the local health-care industry in achieving their objectives by overcoming social sustainability barriers, which would in turn facilitate the implementation of social sustainability programs that can positively contribute to the overall supply chain performance. Social implications Social sustainability has grown in importance as a pressurizing issue to push supply chain managers to assess their social impacts on the communities. This is especially important in service supply chains such as health care, where human element is a part of every stage. Originality/value Despite practitioners’ and academics’ growing emphasis on the social dimension of sustainability, the categorization and prioritization of social sustainability practices across health-care supply chains and general service care supply chains have not been addressed. This study aims to cover this gap by contributing to both the academic literature and the practical health-care environment.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahesh Kumar ◽  
Omkarprasad S Vaidya ◽  
Rajiv Kumar Srivastava

PurposeThe purpose of this paper is to improve the understanding of the role of the bottlenecks in the dynamic software development supply chains. The paper examines the effects of the task priorities in the software development and investigates the possible strategies to manage them effectively.Design/methodology/approachIn this paper, a software development supply chain has been simulated. This includes modeling of the various sizes of software requirement, different priorities, variations in development times, quality defects, etc. The model assumes a fixed set of resources of various skills. The model is studied for the bottlenecks, throughput, work in progress (WIP), etc. under various work preemption scenarios.FindingsThe results indicate that job priorities impact the bottleneck formulation, throughput and WIP of the software development. The work interruption policies to accommodate priority jobs adversely impact the throughput. Selective introduction of interruptions by leaving the bottlenecks from interruptions helps balancing the throughput and priorities.Research limitations/implicationsThe impact of the learning curve and knowledge acquisition time needed by the resources to restart the interrupted work has not been considered in this paper, which can be a future area of research.Practical implicationsThe paper helps the practicing managers evaluate the dynamics of the bottlenecks with various task management approaches and comprehend the possible tradeoffs between priority and throughout.Originality/valueThe paper looks at software development from a perspective of workflow dynamics. This is a pioneer effort, as it utilizes simulation and modeling approach in understanding the software supply chains better.


2020 ◽  
Vol 40 (10) ◽  
pp. 1649-1660 ◽  
Author(s):  
Robert B. Handfield ◽  
Gary Graham ◽  
Laird Burns

PurposeUsing the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are developing, the authors report interview findings with two senior VPs from two multi-national corporations being disrupted by COVID-19. This study suggests how this and recent events will impact on the design of future global supply chains.Design/methodology/approachThe authors apply the constructal law to explain the recent disruptions to the global supply chain orthodoxy. Two interviews are presented from case studies the authors are developing in the USA and UK – one a multi-national automobile parts supplier and the other is a earth-moving equipment manufacture. Specifically, this is an exploratory pathway work trying to make sense of the COVID-19 pandemic and its impact on supply chain scholarship.FindingsAdopting the approach of Bejan, the authors believe that what is happening today with COVID-19 and other trade disruptions such as Brexit and the USA imposing tariffs is creating new obstacles that will redirect the future flow of supply chains.Research limitations/implicationsIt is clear that the COVID-19 response introduced a bullwhip effect in the manufacturing sector on a scale never-before seen. For scholars, the authors would suggest there are four pathway topics going forward. These topics include: the future state of global sourcing, the unique nature of a combined “demand” and “supply shortage” bullwhip effect, the resurrection of lean and local production systems and the development of risk-recovery contingency strategies to deal with pandemics.Practical implicationsSupply chain managers tend to be iterative and focused on making small and subtle changes to their current system and way of thinking, very often seeking to optimize cost or negotiate better contracts with suppliers. In the current environment, however, such activities have proved to be of little consequence compared to the massive forces of economic disruption of the past three years. Organizations that have more tightly compressed supply chains are enjoying a significant benefit during the COVID-19 crisis and are no longer being held hostage to governments of another country.Social implicationsAn implicit assumption in the press is that COVID-19 caught everyone by surprise, and that executives foolishly ignored the risks of outsourcing to China and are now paying the price. However, noted scholars and epidemiologists have been warning of the threats of pandemics since the severe acute respiratory syndrome (SARS) virus. The pundits would further posit that in their pursuit of low-cost production, global corporations made naive assumptions that nothing could disrupt them. Both the firms the authors have interviewed had to close plants to protect their workforce. It was indicated in the cases the authors are developing that it is going to take manufacturers on average one month to recover from 4–6 days of disruption. These companies employ many thousands of people, and direct and ancillary workers are now temporarily laid off and face an uncertain future as/when they will recover back to normal production.Originality/valueUsing the constructal law of physics, the authors seek to provide guidance to future scholarship on global supply chain management. Further, through two case studies, the authors provide the first insight from two senior VPs from two leading multi-national corporations in their respective sectors being disrupted by COVID-19. This study is the first indication to how this and recent disruptive events will impact on the design of future global supply chains. Unlike the generic work, which has recently appeared in HBR and Forbes, it is grounded in real operational insight.


2019 ◽  
Vol 32 (6) ◽  
pp. 913-935 ◽  
Author(s):  
Caixia Chen ◽  
Tongyu Gu ◽  
Yuru Cai ◽  
Yixiong Yang

Purpose The purpose of this paper is to develop a novel research model to examine the relationship among information sharing (IS), supply chain integration (SCI), operational performance (OP) and business performance (BP) in the fashion supply chains. Design/methodology/approach A survey of 247 executives from Chinese fashion brand firms was conducted and the data were analyzed to investigate how IS affects the organizational BP. Structural equation modeling (SEM) was applied to study the relationship among IS, SCI, OP and BP. Findings The empirical research results indicate that IS is critical to enhance the SCI and OP, and both SCI and OP exert mediating effects on BP of fashion brands. This result also reveals constructive suggestions that allow fashion brands to strengthen their SCI and OP, as well as BP. Research limitations/implications Multiple data sources were applied to develop the sampling frame, and respondents were selected (according to their experience and position) to ensure they had the knowledge and expertise to provide valid response. However, this could not guarantee the adequacy of the sample. This limitation is compounded by the reliance on a simple respondent per firm, which precludes testing for inter-rater reliability. Practical implications The empirical findings provide an enhanced understanding of the relationship among IS, SCI, OP and BP in Chinese fashion brand settings. The research results will help fashion brands to improve supply chain efficiency and enhance company performance. Originality/value Although previous studies have realized that the value of IS varies in different industries, few have specifically explored the impact on the fashion industry characterized by short life cycles, high volatility, low predictability and high impulse purchasing. To fill this knowledge gap, the present study employed a questionnaire survey and SEM techniques to explore the relationship among IS, SCI, OP and BP in the fashion supply chain. Comprehending the impact mechanism of IS on organizational performance can provide useful management insights into the development of effective strategies that allow enterprise to improve BP.


2015 ◽  
Vol 20 (4) ◽  
pp. 455-470 ◽  
Author(s):  
Joakim Kembro ◽  
Kostas Selviaridis

Purpose – This paper aims to empirically explore demand-related information sharing in the extended supply chain. Design/methodology/approach – Through a single, embedded case design, a range of methods are used to collect data from companies representing three different supply chain tiers, including focal company, first-tier suppliers and first-tier customers. The collected data are analysed through the theoretical lens of interdependence. Findings – The findings indicate that the supply chain actors adapt information sharing to the pooled, serial or reciprocal type of interdependence. Information sharing is thus increased with key dyadic partners representing, for example, unique offerings and high market shares as percentage of total expenditure/sales. The study also unearths several barriers to information sharing beyond dyadic ties, including problems related to dis-aggregated, misinterpreted and/or incomplete information. Research limitations/implications – The study empirically contributes to the existing literature by exploring information sharing in the extended supply chain and by suggesting different approaches to information sharing depending on the type and intensity of interdependence between supply chain partners. Further, the paper contributes to the existing literature on barriers of information sharing in supply chains by identifying barriers specific to multi-tier information sharing. “Meta-information” (i.e. information about the shared information) is needed to overcome some of the barriers of sharing information in cases of weak, pooled interdependencies in the supply chain. Practical implications – Similar to previous empirical research, this exploratory study indicates that companies, in general, refrain from sharing information beyond dyadic ties. Supply chain managers would instead mostly focus on stronger, reciprocal interdependencies and emphasise dyadic information sharing. To further guide managers, a demand profiling framework considering market share and demand uncertainty is presented. It may be interesting to engage in multi-tier information sharing in particular cases where strong interdependence exists between three or more partners. Originality/value – This study contributes to existing research on information sharing in supply chains by empirically studying information sharing in an extended supply chain, applying interdependence theory as its analytical framework and unearthing several barriers that are specific to multi-tier information sharing.


2018 ◽  
Vol 38 (12) ◽  
pp. 2389-2412 ◽  
Author(s):  
Hugo K.S. Lam

Purpose The purpose of this paper is to theoretically hypothesise and empirically test the impact of sustainable supply chain practices (SSCPs) on firms’ financial risk. Design/methodology/approach This research adopts signalling theory to explain the signalling role of SSCPs and the moderating role of the signalling environment in terms of supply chain characteristics. It collects and combines longitudinal secondary data from multiple sources to test the direct impact of SSCPs on firms’ financial risk and the moderating role of supply chain complexity and efficiency. It conducts various additional tests to check the robustness of the findings and to account for alternative explanations. Findings This research shows that SSCPs help firms reduce financial risk but do not affect their returns. Moreover, the risk reduction of SSCPs is greater for firms with more complex and efficient supply chains. The findings are robust to alternative variable measurements and analysing strategies. Research limitations/implications This research reveals the role of SSCPs in reducing financial risk, urging researchers to pay more attention to the financial risk implications of supply chain practices in general and SSCPs in particular. Practical implications This research encourages firms to engage in SSCPs to reduce financial risk and enables them to assess the urgency of their SSCPs investments in view of the complexity and efficiency of their supply chains. Originality/value This is the first research examining the impact of SSCPs on financial risk, based on longitudinal secondary data and signalling theory. The empirical evidence documented and the theoretical perspective adopted offer important implications for future practice and research on SSCPs.


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