scholarly journals Modelling decision making in digital supply chains: insights from the petroleum industry

Kybernetes ◽  
2019 ◽  
Vol 49 (4) ◽  
pp. 1213-1228 ◽  
Author(s):  
Florina Livia Covaci ◽  
Pascale Zaraté

Purpose This paper aims to overcome some of the limitations of previous works regarding automated supply chain formation (SCF). Hence, it proposes an algorithm for automated SCF using multiple contract parameters. Moreover, it proposes a decision-making mechanism that provides means for incorporating risk in the decision-making process. To better emphasize the features of the proposed decision-making mechanism, the paper provides some insights from the petroleum industry. This industry has a strategic position, as it is the base for other essential activities of the economy of any country. The petroleum industry is faced with volatile feed-stock costs, cyclical product prices and seasonal final products demand. Design/methodology/approach The authors have modeled the supply chain in terms of a cluster graph where the nodes are represented by clusters over the contract parameters that suppliers/consumers are interested in. The suppliers/consumers own utility functions and agree on multiple contract parameters by message exchange, directly with other participant agents, representing their potential buyer or seller. The agreed values of the negotiated issues are reflected in a contract which has a certain utility value for every agent. They consider uncertainties in crude oil prices and demand in petrochemical products and model the decision mechanism for a refinery by using an influence diagram. Findings By integrating the automated SCF algorithm and a mechanism for decision support under uncertainty, the authors propose a reliable and practical decision-making model with a practical application not only in the petroleum industry but also in any other complex industry involving a multi-tier supply chain. Research limitations/implications The limitation of this approach reveals in situations where the parameters can take values over continuous domains. In these cases, storing the preferences for every agent might need a considerable amount of memory depending on the size of the continuous domain; hence, the proposed approach might encounter efficiency issues. Practical implications The current paper makes a step forward to the implementation of digital supply chains in the context of Industry 4.0. The proposed algorithm and decision-making mechanism become powerful tools that will enable machines to make autonomous decisions in the digital supply chain of the future. Originality/value The current work proposes a decentralized mechanism for automated SCF. As opposed to the previous decentralized approaches, this approach translates the SCF optimization problem not as a profit maximization problem but as a utility maximization. Hence, it incorporates multiple parameters and uses utility functions to find the optimal supply chain. The current approach is closer to real life scenarios than the previous approaches that were using only cost as a mean for pairwise agents because it uses utility functions for entities in the supply chain to make decision. Moreover, this approach overcomes the limitations of previous approaches by providing means to incorporate risk in the decision-making mechanism.

2015 ◽  
Vol 26 (2) ◽  
pp. 313-333 ◽  
Author(s):  
Jasmine Siu Lee Lam ◽  
Jing Dai

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.


2021 ◽  
Vol 3 (2) ◽  
pp. 78-97
Author(s):  
Dhruman Gohil ◽  
Shivangi Viral Thakker

PurposeBlockchain technology was developed to synchronize the data and transactions over the supply chain network and connected nodes. This paper aims to show how blockchain technology can enhance flexibility and agility in supply chain operations. The integration of blockchain and other recently developed technology can help deal with supply chain uncertainties and other challenges being faced by the industry.Design/methodology/approachThrough an extensive literature review of existing research papers and conversation with supply chain managers, barriers and challenges in the supply chain were identified. Some elements were researched of blockchain technology that can be used to resolve some challenges. Blockchain technology and other technologies integration is developed for implementation in supply chain for better visibility and efficiency of supply chain.FindingsThe challenges in the supply chain are categorized, and the solution is given through the integration of blockchain and other technologies like Internet of Things and artificial intelligence. The integration shows the execution of tasks through blockchain and various technologies in supply chain.Research limitations/implicationsBlockchain in supply chain is finding its strong place in India when compared to developing nations. There is a need for technology experts, supply chain managers and consumers to understand blockchain’s importance. Challenges faced by industries to use blockchain may be analyzed further with real-life industry case studies.Practical implicationsThis research helps enterprises in successful execution of smart technologies in their supply chains. This research helps enterprises in successful execution of smart technologies in their supply chains. Managers and practitioners may use the models developed in real-time implementation. The technologies are described in detail to help the practitioners select the best suitable for their organization.Social implicationsDigital supply chains are finding the way in industries due to lean and efficient nature. It is beneficial to use the smart technologies to make supply chain green and sustainable.Originality/valueThe implementation of the digital supply chain and its challenges are discussed in the research paper. This will work as a platform for research in the area of technologies for supply chain.


Author(s):  
Ruth Banomyong ◽  
Puthipong Julagasigorn

Purpose The purpose of this paper is to provide a framework on how strategic philanthropy can be included in humanitarian supply chains delivery. This framework explains the modalities where strategic philanthropy can be successful when collaborating with key humanitarian supply chain actors. Design/methodology/approach A philanthropy delivery framework is developed based on the literature related to strategic philanthropy and humanitarian supply chains. The delivery framework is further validated with the real-life case study of a multinational firm during the 2011 Thai floods. Findings Procter and Gamble (P&G) was involved in the Thailand flood 2011 relief efforts in three phases: preparation, immediate response, and reconstruction phase. The company supported and distributed a water purifier through a non-governmental relief agency, the Princess Pa Foundation, under the Thai Red Cross Society, that enabled P&G to not only gain the trust of the targeted community during all the phases but in the continued usage of their water purifier after the event. Community leaders and P&G’s modern trade retailers played an important role in collaborating in this humanitarian supply chain to enable the successful delivery and usage of the donated water purifier. Research limitations/implications This proposed delivery framework is appropriate for in-kind products and services philanthropy. The case study describes how strategic philanthropy can be implemented in a specific case, i.e. flood disaster. Practical implications Academia, practitioners, and companies who are involved in humanitarian reliefs may adopt and adapt this framework in order to enable a win-win situation for all stakeholders in the humanitarian supply chain. Originality/value The delivery framework suggests that firms can develop successful strategic philanthropy through systematic humanitarian supply chain collaboration. It explains how a company can operate its philanthropic programs through collaboration with others as well as describes how these different actors can work together.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Usha Ramanathan ◽  
Olu Aluko ◽  
Ramakrishnan Ramanathan

PurposeAt its peak, the COVID-19 pandemic has created disruption to food supply chains in the UK and for the entire world. Although societal changes created some resilience within the supply chains, high volatility in demand creates supply, logistics and distribution issues. This is reflected in the economic instability of businesses and small and medium enterprises (SMEs). In this paper, the authors explore factors behind this initial disruption in the supply chains and offer suggestions to businesses based on the established practices and theories.Design/methodology/approachThe authors use mixed methods research. First, the authors conducted an exploratory study by collecting data from published online sources. Then, the authors analysed possible scenarios from the available information using regression. The authors then conducted two interviews with UK retail sector representatives. These scenarios have been compared and contrasted to provide decision-making points to businesses and supply chain players to tackle current and any future potential disruptions.FindingsThe findings from the current exploratory study inform the volatility of supply chains. The authors suggested some possible responses from businesses, during and after the pandemic.Originality/valueThe regression model provides a decision-making approach to help supply chain businesses during the pandemic outbreak. Once a complete data set of COVID-19 is available, the authors can create a resilience model that can help businesses and supply chains.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Remko van Hoek ◽  
David Dobrzykowski

Purpose Reshoring is one of the supply chain risk management techniques suggested in literature. However, literature suggests that the decision-making involved in reshoring is complex and not fully understood. In the context of the COVID-19 pandemic, reshoring may represent a way to reduce reliance on global sources and improve resilience of their supply chains. This paper aims to explore if the pandemic is driving reshoring decisions and if the pandemic will actually lead to companies reshoring parts of their supply chain. Design/methodology/approach This paper critically engages with senior(-most) supply chain managers from three manufacturing companies as they proceed through reshoring decision-making. This enables to develop experiential knowledge about reshoring decision-making processes and their context, as well as insights into the relevance of existing knowledge about reshoring. While not a full multiple case study, the opportunity to engage directly with senior(-most) supply chain managers as they consider reshoring, enables near real-time learning. Not only is reshoring a very timely topic literature has also called for more event-based empirical research. Further to that, it is hoped that this can complement this special issue and support, in a timely manner, the many researchers that are actively studying the impact of the pandemic on supply chains. Findings Reshoring was being actively considered by all three companies during the research process in Q3 and Q4 of 2020. During this period the pandemic has not yet led to substantial implementation of reshoring, at least by the companies studied in this paper. In response to tariffs on Chinese imports, companies had been diversifying their supply base away from China, but doing so by developing alternative, global sources. Additionally, companies are using alternative risk management techniques, such as supplier collaboration, in the short to medium term. Reshoring decision-making is indeed found to be complex and requires a longer-term time horizon for decision-making and implementation. Logistical challenges and growth in demand do drive a willingness of consumers to pay a premium for locally sourced products. However, when supply normalizes these considerations might lose relevance well before reshoring decision-making and implementation can be completed. Originality/value This paper studies reshoring in a real-world setting, learning directly from insights from industry as they emerge. This paper develops four extensions to existing knowledge, develop these in frameworks and hope that this will support ongoing consideration in industry and support the many researchers that are active in this domain today. This paper also suggests several directions for further research.


2014 ◽  
Vol 4 (1) ◽  
pp. 24-55 ◽  
Author(s):  
Anoop Kumar Sahu ◽  
Saurav Datta ◽  
Siba Sankar Mahapatra

Purpose – In today's competitive global marketplace, performance management has been identified as a key strategic consideration towards achieving an efficient supply chain management. The task of estimating supply chain performance extent is seemed a complex problem entitled with multiple subjective performance measures and metrics; subjected to decision-making environment which involves an inherent vagueness, inconsistency and incompleteness associated with decision-makers (DMs) (expert panel) commitment towards assessment of various subjective (quantitative) evaluation indices. Consequently, it becomes difficult towards making a comparative study on performances of alternative supply chains. It is, therefore, indeed essential to conceptualize and develop an efficient appraisement platform helpful for benchmarking of alternative supply chains based on their performance extent. The paper aims to discuss these issues. Design/methodology/approach – The work explores the concept of grey numbers combined with multi-objective optimization by ratio analysis (MOORA) in perceptive to evaluate best alternative from among available alternative supply chains. Findings – The method has been found fruitful to facilitate such a multi-criteria group decision-making (MCGDM) problem under uncertain environment and provides an appropriate compromise ranking order with respect to available possible alternatives. Originality/value – Supply chain performance appraisement provides necessary means by which an organization can assess whether its supply chain is performing well, whether it has been improved or degraded as compared to the past record. The purpose of this research is to develop and to empirically test a multiple-indices hierarchical appraisement model for benchmarking of supply chain performance and its impact on competitiveness of manufacturing industries.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sofie Stulens ◽  
Kim De Boeck ◽  
Nico Vandaele

PurposeDespite HIV being reported as one of the major global health issues, availability and accessibility of HIV services and supplies remain limited, especially in low- and middle-income countries. The effective and efficient operation of HIV supply chains is critical to tackle this problem. The purpose of this paper is to give an introduction to HIV supply chains in low- and middle-income countries and identify research opportunities for the operations research/operations management (OR/OM) community.Design/methodology/approachFirst, the authors review a combination of the scientific and grey literature, including both qualitative and quantitative papers, to give an overview of HIV supply chain operations in low- and middle-income countries and the challenges that are faced by organizing such supply chains. The authors then classify and discuss the relevant OR/OM literature based on seven classification criteria: decision level, methodology, type of HIV service modeled, challenges, performance measures, real-life applicability and countries covered. Because research on HIV supply chains in low- and middle-income countries is limited in the OR/OM field, this part also includes papers focusing on HIV supply chain modeling in high-income countries.FindingsThe authors conclude this study by identifying several tendencies and gaps and by proposing future research directions for OR/OM research.Originality/valueTo the best of the authors’ knowledge, this paper is the first literature review addressing this specific topic from an OR/OM perspective.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qingyun Zhu ◽  
Seyedehfatemeh Golrizgashti ◽  
Joseph Sarkis

PurposeProduct portfolio management is a strategic concern. Product portfolio management includes decisions associated with adding new products, maintaining existing products and deleting or phasing out problematic products. This paper first introduces a framework to identify risks of product deletion along supply chain activities. It utilizes failure mode and effects analysis (FMEA) to identify, analyse and evaluate product deletion risks on supply chains and proposes managerial implications for risk management in dynamic business scenarios. It is meant to build upon and address a gap in the product deletion and supply chain linkage literature.Design/methodology/approachFMEA is utilized in this study to structure and manage potential risks in product deletion decision-making on supply chains. FMEA is based on an analysis of severity, occurrence and detectability of failure modes. FMEA provides methods to help identify managerial preventive solutions to avoid and mitigate risk consequences of such decisions.FindingsTen top product deletion risks are identified in this study; discussions of their negative impact on supply chain performance, and possible managerial recommendations are followed for risk control, monitor and elimination.Practical implicationsFindings help managers to predict, avoid and mitigate risk consequences of product deletion decisions; especially those related to the supply chain. A framework to structure various risks of product deletion in the supply chain can be useful to both practitioners and researchers.Originality/valueThis study advances product portfolio management through enhanced understanding of product deletion decision-making in organizations; and especially contributes to a broader investigation of such decisions in supply chain management. It also structures the factors that play a role in identifying risks.


2017 ◽  
Vol 29 (3) ◽  
pp. 304-319 ◽  
Author(s):  
Enrico Fontana

Purpose This e-book sheds light on the concept of strategic corporate social responsibility (CSR) in supply chains within a developing country context. This paper aims to investigate cognitive antecedents as well as behavioral consequences of corporate executives toward investing in strategic CSR. Moreover, it displays if and how strategic CSR contributes to creating performance benefits for the supplier. Design/methodology/approach This study is qualitative and exploratory in its nature. After drafting a five-dimensional framework from extant literature, it empirically elaborates on a case-study analysis based on primary data gathered through semi-structured interviews on ten executives (i.e. top executives, directors, owners) in large-size supplier companies within the Bangladeshi ready-made garment (RMG) supply chain. Findings First, it highlights altruism and performance as being cognitively and theoretically espoused in strategic CSR; yet, one appears to oust the other. Second, it demonstrates that if CSR-driven investments allow for a competitive positional betterment, as for suppliers in the Bangladeshi RMG industry, profit-driven CSR diffuses at the expense of altruism. Third, it confirms CSR’s strategic role as necessary but not sufficient for competitive advantage, delivering insights on suppliers’ future posture vis-à-vis CSR in the Bangladeshi RMG supply chains. Research limitations/implications The e-book investigates strategic CSR’s struggle to maintain a balance between moral and profit-maximization motives at the cognitive level but being paradoxically required in supply chains. A limitation, inter alia, entails the focus on the horizontal perspective of the sample and the RMG supply chain. Originality/value The e-book provides valuable theoretical and practical insights by capitalizing on unique data retrieved from the Bangladeshi supply chain.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sam Solaimani ◽  
Jack van der Veen

Purpose In the ever-increasing dynamics of global business markets, firms must use all possible sources to innovate continually. This study aims to explore how supply chain innovation can be fostered through joint efforts between firms and their supply chain partners. Design/methodology/approach At least two areas advocate innovation through external relations, namely, supply chain collaboration and open innovation. This study aims to provide a holistic insight into how vertical and horizontal partnerships can be implemented to help supply chains become more innovative, building upon commonalities and differences between the two areas. Findings This study proposes a conceptual framework for supply chain innovation based on the following three ambidextrous capabilities: purpose (i.e. knowledge exploration and exploitation), span (horizontal and vertical collaboration) and orientation (i.e. incremental and radical innovation). With five propositions, the link between the three ambidextrous capabilities and supply chain innovation is explained. The implementation of the framework is articulated through an illustrative real-life case. Originality/value The concept of open innovation in supply chain settings is progressively essential yet under-researched. This study is an early attempt to draw on the available theories and literature on open innovation and supply chain collaboration and elaborates how supply chains can facilitate and adopt a more open approach toward innovation.


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