Operation decision of logistics service supply chain: considering interruption probability in emergencies

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guangsheng Zhang ◽  
Xiao Wang ◽  
Zhiqing Meng ◽  
Qirui Zhang ◽  
Kexin Wu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Evolutionary Game ◽  
Optimal Strategies ◽  
Optimal Decision ◽  
Content Type ◽  
Logistics Service ◽  
Social Reputation ◽  
Punishment Intensity ◽  
Optimal Decision Making

PurposeTo remedy the inherent defect in current research that focuses only on a single type of participants, this paper endeavors to look into the situation as an evolutionary game between a representative Logistics Service Integrator (LSI) and a representative Functional Logistics Service Provider (FLSP) in an environment with sudden crisis and tries to analyze how LSI supervises FLSP's operations and how FLSP responds in a recurrent pattern with different interruption probabilities.Design/methodology/approachRegarding the risks of supply chain interruption in emergencies, this paper develops a two-level model of single LSI and single FLSP, using Evolutionary Game theory to analyze their optimal decision-making, as well as their strategic behaviors on different risk levels regarding the interruption probability to achieve the optimal return with bounded rationality.FindingsThe results show that on a low-risk level, if LSI increases the degree of punishment, it will fail to enhance FLSP's operational activeness in the long term; when the risk rises to an intermediate level, a circular game occurs between LSI and FLSP; and on a high level of risk, FLSP will actively take actions, and its functional probability further impacts LSI's strategic choices. Finally, this paper analyzes the moderating impact of punishment intensity and social reputation loss on the evolutionary model in emergencies and provides relevant managerial implications.Originality/valueFirst, by taking both interruption probability and emergencies into consideration, this paper explores the interactions among the factors relevant to LSI's and FLSP's optimal decision-making. Second, this paper analyzes the optimal evolutionary game strategies of LSI and FLSP with different interruption probability and the range of their optimal strategies. Third, the findings of this paper provide valuable implications for relevant practices, such that the punishment intensity and social reputation loss determine the optimal strategies of LSI and FLSP, and thus it is an effective vehicle for LSSC system administrator to achieve the maximum efficiency of the system.

Design of coordination contract for quality control-based supply chain under consumer balking behavior with fuzzy environment

2021 ◽  
pp. 1-11
Author(s):  
Chongfeng Lan
Keyword(s):  
Decision Making ◽  
Quality Control ◽  
Supply Chain ◽  
Wholesale Price ◽  
Real Life ◽  
Optimal Strategies ◽  
Optimal Decision ◽  
Fuzzy Environment ◽  
Decentralized Decision Making ◽  
Optimal Decision Making

Considering the ubiquity of consumer balking behavior (CBB) in real-life economics and the importance of product quality control (QC) to supply chain (SC) competitiveness, this paper explores the SC coordination under both the QC and the CBB. Specifically, the consumer’s loss aversion behavior was illustrated at a fixed balking probability, and the SC models were created for centralized and decentralized decision-making modes. After that, the optimal strategies for the retailer and the manufacturer were identified, and the comparative static analysis was adopted to explore the effects of the CBB and QC on the optimal decision-making of the SC. The research results show that the QC-based SC under the CBB cannot be coordinated by wholesale price contract alone, but can be coordinated perfectly by this contract when the retailer shares the quality effort and the manufacturer shares the oversupply cost and analyzed through the fuzzy environment with the formulation. This finding sheds new light on the theory and application of wholesale price contract in SC coordination. Finally, the parameter sensitivity analysis was performed on balking probability and product qualification rate (PQR) through numerical experiments, which further discloses the impacts of the CBB and product QC on the optimal decision-making and profit of the SC.

Catch and release? NHL expansion draft endowment effects

2019 ◽  
Vol 9 (3) ◽  
pp. 301-312 ◽  
Author(s):  
Peter M. Tingling ◽  
Kamal Masri ◽  
Dani Chu
Keyword(s):  
Decision Making ◽  
Performance Appraisal ◽  
Natural Experiment ◽  
Learning Algorithm ◽  
Optimal Decision ◽  
High Stakes ◽  
Content Type ◽  
Catch And Release ◽  
Older Athletes ◽  
Optimal Decision Making

Purpose The purpose of this paper is to investigate National Hockey League (NHL) expansion draft decisions to measure divestment aversion and endowment effects, and analyze bias and its affect on presumed rational analytic decision making. Design/methodology/approach A natural experiment with three variables (age, minutes played and presence of a prior relationship with a team’s management), filtered athletes that were exposed or protected to selection. A machine learning algorithm trained on a group of 17 teams was applied to the remaining 13 teams. Findings Athletes with pre-existing management relationships were 1.7 times more likely to be protected. Athletes playing fewer relative position minutes were less likely to be protected, as were older athletes. Athlete selection was predominantly determined by time on ice. Research limitations/implications This represents a single set of independent decisions using publicly available data absent of context. The results may not be generalizable beyond the NHL or sport. Practical implications The research confirms the affect of prior relationships on decision making and provides further evidence of measurable sub-optimal decision making. Social implications Decision making has implications throughout human resources and impacts competitiveness and productivity. This adds to the need for managers to recognize and implement de-biasing in areas such as hiring, performance appraisal and downsizing. Originality/value This natural experiment involving high-stakes decision makers confirms bias in a setting that has been dominated by students, low stakes or artificial settings.

Environmental sustainability of logistics service provider: an ANP-QFD approach

2015 ◽  
Vol 26 (2) ◽  
pp. 313-333 ◽  
Author(s):  
Jasmine Siu Lee Lam ◽  
Jing Dai
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chains ◽  
Environmental Sustainability ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Chain Management ◽  
Content Type ◽  
Sustainability Performance ◽  
Logistics Service

Purpose – The purpose of this paper is to propose a methodology with systematic metrics for logistics service providers (LSPs) to develop their environmental sustainability performance in the context of green supply chain management. Design/methodology/approach – An integrated analytical approach which combines analytical network process (ANP) with quality function deployment (QFD) is proposed to develop LSPs’ environmental sustainability performance. In the approach, QFD is used to translate customer requirements (CRs) for “green” concerns into multiple criteria for LSP’s design requirements (DRs). ANP is used to analyze the inter-relationships among the various CRs and DRs. Findings – The effectiveness of the proposed approach is demonstrated by applying it to a global LSP. A case study shows how the proposed “ANP-QFD” technique can be deployed to understand customers’ expectation for environment management and develop tactics and measures with the aim to achieve the desirable outcome for LSPs’ environmental sustainability performance. Practical implications – Firms that emphasize sustainability as a competitive priority will benefit by communicating sustainability efforts to customers. Therefore, “ANP-QFD” is an integrative method which helps develop LSPs’ environmental sustainability performance by enabling logistics managers incorporate the “voice” of customers for environmental concerns into their decision-making process. The study demonstrates how to develop LSPs to be greener in order to realize the requirements of green supply chains. The proposed integrated approach can also be applied in other decision-making scenarios for effective green supply chain management. Originality/value – Various approaches that can deal with multiple and conflicting criteria have been adopted for LSP assessment in the literature. However, they fail to include the impact of business objectives and the requirements of company stakeholders (customer in this study) in the identification of performance criteria for LSP. They also did not incorporate the environmental sustainability perspective. This paper contributes to the emerging research topic of environmental sustainability in logistics and supply chains by tackling these inadequacies in the literature. The study facilitates LSPs and the supply chains they serve in achieving better economic and environmental performance, thus leading to truly sustainable outcomes.

scholarly journals Customer Knowledge Enabled Innovation: Analyzing Pricing-Promotion Coordination Mechanism

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Guanbing Zhao ◽  
Yangyang Qiu ◽  
Muhammad Imran ◽  
Fazal Manan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Repeated Game ◽  
Consumer Electronics ◽  
Coordination Mechanism ◽  
Optimal Decision ◽  
Consumer Electronic ◽  
Market Launch ◽  
Optimal Decision Making ◽  
New Consumer

Pricing and promotion are two important decisions during the market launch of new consumer electronics products. Nowadays, the pricing and promotion of consumer electronic products are often not made separately but at the same time. This study focuses on the pricing-promotion coordination mechanism of a secondary supply chain of new consumer electronics products (which consists of a manufacturer and a seller). Price and the degree of promotion together affect the demand for products. Manufacturers give sellers a sales target. Manufacturers and sellers set prices and promotions separately, introduce repurchase penalty joint contracts, and establish supply chain profit models to compare and analyze optimal pricing, promotion efforts, and maximum profit of supply chains under different decision-making situations. We prove that the repurchase penalty joint contract can coordinate the supply chain under the assumptions of a single-period game and a multiperiod repeated game. The results show that under the repurchase penalty joint contract, when manufacturers and sellers choose high prices and high promotions at the same time, the supply chain of new consumer electronics products has the largest profit. Finally, numerical experiments are conducted to study the influence of parameters on optimal decision-making and supply chain profits.

scholarly journals The impact of collaborative decision-making on logistics service performance for container shipping services

2020 ◽  
Vol 5 (2) ◽  
pp. 175-191
Author(s):  
Po-Lin Lai ◽  
Dong-Taur Su ◽  
Hui-Huang Tai ◽  
Ching-Chiao Yang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Information Integration ◽  
Service Performance ◽  
External Information ◽  
Container Shipping ◽  
Collaborative Decision Making ◽  
Content Type ◽  
Logistics Service ◽  
Collaborative Decision

Purpose The increasing demand for high-quality logistics services has forced container shipping firms to decrease logistics service failure to retain the customers. This study thus aims to apply organizational information processing theory (OIPT) to construct a maritime supply chain collaborative decision-making model and examine its impact on logistics service performance. Design/methodology/approach In total, 142 usable questionnaires were collected from questionnaire survey. A two-step structural equation modeling approach including confirmatory factor analysis was subsequently performed to test the hypotheses. Findings The results show that internal information integration positively impacts external information integration, that external information integration positively impacts collaborative decision-making, and that collaborative decision-making positively impacts logistics service performance for container shipping firms. However, a relationship between internal information integration and collaborative decision-making was not found in this study. Research limitations/implications This study primarily examines collaborative decision-making from the view of container shipping firms. Future research including other supply chain members is needed to generalize the results and could also incorporate other factors such as relationship quality and culture, into the model to address this issue. Practical implications To decrease the occurrence of logistics failures and improve service quality in the maritime logistics process, it is suggested that container shipping firms apply information technology for acquiring and assimilating logistics information internally and externally across the supply chain to facilitate decision-making. Originality/value This study contributes to the knowledge about the antecedents and impacts of collaborative decision-making for container shipping firms in Taiwan. Particularly, in line with OITP, the findings indicate that container shipping firms can facilitate logistics decision-making and strategy formulation through information integration, which in turn enhances logistics service performance.

A supply chain model for Medicare of impoverished people with the policy of targeted poverty alleviation of China

Kybernetes ◽  
2019 ◽  
Vol 49 (3) ◽  
pp. 896-915
Author(s):  
Ketong Zhao ◽  
Bingzhen Sun
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Integer Programming ◽  
Theoretical Model ◽  
Poverty Alleviation ◽  
Practical Problem ◽  
Programming Model ◽  
Medical Insurance ◽  
Optimal Decision ◽  
Content Type

Purpose The purpose of this paper is to present a new method and model for constructing a new decision-making paradigm of Medicare, which can not only satisfy the needs of the sick people but also reduce the possibility of people slipping back to poverty due to diseases under the policy of Targeted Poverty Alleviation (TPA) of China. Design/methodology/approach This paper uses the traditional supply chain theory to analyze the Medicare of impoverished people with the policy of TPA of China and transforms it into a multi-layer supply chain optimization decision-making problem. First, a nonlinear integer programming model for poor people’s Medicare decision with opportunity constraints is constructed. To facilitate the solution of the optimal decision scheme, the abovementioned model is transformed into a linear integer programming model with opportunity constraints by using the Newsvendor model for reference. Meanwhile, the scope of the inventory model is discussed, for it can be combined with the construction of the medical insurance system better. Second, the theoretical model is applied to the practical problem. Finally, based on the results of the theoretical model applying the practical problem, we give further improvement and modification of the theoretical model applies it to the actual situation further. Findings This paper presents a theoretical model about determine the optimal the inventory, under the framework of traditional supply chain decision-making, for it can be combined with the construction of the medical insurance system better. The theoretical model is applied to the practical problem of the fight against poverty in XX County, China. By using the actual data and MATLAB, optimal decision scheme is obtained. Originality/value There are two aspects of value. On the one hand, this paper provides a new way to construct a Medicare system of impoverished people with TPA of China. On the other hand, this paper tries making a new way to handle the storage of medicines and related medical devices at basic standard clinics decision-making problems based on above mentioned Medicare system.

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