Short‐term vs. Long‐term Contracting: Empirical Assessment of the Ratchet Effect in Supply Chain Interaction

In early January 2020, coronavirus outbreak started to build up as a pandemic in the city of Wuhan in China, leading to social, human as well as economic disturbance, leaving no life untouched. COVID-19, the coronavirus pandemic impacted the production, logistics as well as the supply chain system in the entire world. As companies, around the globe are trying to repair their shattered value chains in the short-term and reduce their supply chain risks in the long-term, India also has an exclusive chance to emerge as a business terminus during and after the COVID-19 pandemic.

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How to Bail Out a Defense Contractor: Cases on Securing a Supply Chain in extremis

Defense Acquisition Research Journal ◽

10.22594/dau.20-858.28.02 ◽

2021 ◽

Vol 28 (96) ◽

pp. 166-189

Author(s):

James Hasik

Keyword(s):

Supply Chain ◽

Supplier Management ◽

Short Term ◽

Defense Contractors ◽

The Past ◽

Defense Contractor ◽

Necessary And Sufficient ◽

Industry Structures ◽

Bail Out

How can governments effectively bail out faltering defense contractors? While the idea may seem politically distasteful, any defense ministry with domestic suppliers may view the problem as supplier management in extremis. Reviewing nine prominent bailouts of defense contractors from the past 50 years, the author draws two conclusions. Providing long-term demand is very likely necessary and sufficient to maintain industry structures. Providing short-term infusions of cash may be necessary to maintain programs, but it is not always sufficient. If legislators and defense officials wish to consider either approach for short-term or long-term objectives, they should also consider the historical lessons of the financial and information asymmetries between government and industry, and the general uncertainty over how technologies will evolve.

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Game—The Transportation Game

INFORMS Transactions on Education ◽

10.1287/ited.2019.0223 ◽

2020 ◽

Vol 21 (1) ◽

pp. 1-12 ◽

Cited By ~ 1

Author(s):

Foroogh Abasian ◽

Mikael Rönnqvist ◽

Philippe Marier ◽

Dag Fjeld

Keyword(s):

Supply Chain ◽

Transportation Costs ◽

Educational Game ◽

Optimal Solutions ◽

Short Term ◽

Purchasing Cost ◽

Hierarchical Decision ◽

Individual Decisions ◽

Forest Supply Chain

This paper presents an online educational game focusing on hierarchical procurement planning in a simulated forest supply chain with multiple companies. The purpose is to provide an understanding of the importance of individual decisions and their medium- to long-term impacts on the entire supply chain. The transportation game comprises three phases, each simulating hierarchical decision making when three competing companies (i.e., the game players) are making simultaneous decisions on the available resources. Each game phase also requires concurrent collaboration and competition. The phases represent different planning levels from long-term to short-term planning, considering the collaboration concept within the supply chain. The simulated supply chain objective is to minimize resource purchasing and transportation costs. The purchasing cost will be fixed after the first phase. The chance of decreasing transportation costs, however, is available until the end of the game. We develop three optimization models for each game phase. Once the game is finished, it compares the players’ results with optimal solutions prepared upfront. Finally, we present some comments about the game experience in various classrooms.

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The Logic of Illicit Flows in Armed Conflict

World Politics ◽

10.1017/s0043887120000040 ◽

2020 ◽

Vol 72 (3) ◽

pp. 335-376 ◽

Cited By ~ 1

Author(s):

Annette Idler

Keyword(s):

Spatial Distribution ◽

Supply Chain ◽

Organized Crime ◽

Armed Conflict ◽

Process Tracing ◽

Short Term ◽

Group Interactions ◽

Supply Chain Networks ◽

Illicit Flows

ABSTRACTWhy is there variation in how violent nonstate groups interact in armed conflict? Where armed conflict and organized crime converge in unstable regions worldwide, these groups sometimes enter cooperative arrangements with opposing groups. Within the same unstable setting, violent nonstate groups forge stable, long-term relations with each other in some regions, engage in unstable, short-term arrangements in others, and dispute each other elsewhere. Even though such paradoxical arrangements have intensified and perpetuated war, extant theories on group interactions that focus on territory and motivations overlook their concurrent character. Challenging the literature that focuses on conflict dynamics alone, the author argues that the spatial distribution of illicit flows influences how these interactions vary. By mapping cocaine supply chain networks, the author shows that long-term arrangements prevail at production sites, whereas short-term arrangements cluster at trafficking nodes. The article demonstrates through process tracing how the logic of illicit flows produces variation in the groups’ cooperative arrangements. This multiyear, multisited study includes over six hundred interviews in and about Colombia’s remote, war-torn borderlands.

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Short-Term and Long-Term Impacts of a Quick Response Strategy on a Dual Channel Apparel Supply Chain

International Journal of Bifurcation and Chaos ◽

10.1142/s0218127419501906 ◽

2019 ◽

Vol 29 (14) ◽

pp. 1950190 ◽

Cited By ~ 4

Author(s):

Junhai Ma ◽

Shunqi Hou ◽

Binshuo Bao

Keyword(s):

Supply Chain ◽

Dynamic Game ◽

Response Strategy ◽

System Stability ◽

Stable Region ◽

Quick Response ◽

Short Term ◽

Supply Chain System ◽

Dual Channel

This paper studies a dual-channel apparel supply chain faced with strategic consumers and uncertain demands, where the dominant retailer decides its service level and offline price first, and the manufacturer decides the online price later on. This paper develops a framework to examine the impacts of quick response on the system’s short-term profitability and long-term stability. To make comparisons, two scenarios are considered, in which the supply chain system adopts and does not adopt quick response, respectively. The optimal decisions and profits of the firms are first analyzed in two scenarios, and dynamic game models are then developed to study the complex characteristics. Comparisons in supply chain outputs and system stability are further made between these two scenarios. The results show that the imbalance of risks in two channels affects the performance of quick response that tends to benefit the retailer more, while it benefits the manufacturer only when the return rate is extremely high and consumers care much about the purchase channels. However, quick response certainly contributes to the system stability, which not only provides a larger stable region for firms to adjust their decisions, but also makes the system less sensitive to the consumers’ valuation for the product. Along with this, it is easier for the chaotic system with quick response to restore the stability.

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Disruptions in the Upstream Palm Oil Supply Chain – A case of Covid-19 Impact on Upstream Intermediaries in Malaysia

International Journal of Environmental Sustainability and Green Technologies ◽

10.4018/ijesgt.289035 ◽

2022 ◽

Vol 13 (1) ◽

pp. 0-0

Keyword(s):

Supply Chain ◽

Palm Oil ◽

Global Economy ◽

Risk Mitigation ◽

World Health ◽

Security Risk ◽

Short Term ◽

Oil Supply ◽

Health Organization

The COVID-19 pandemic had a global impact since it was first discovered in late 2019, in Wuhan, China. According to the World Health Organization (WHO), COVID-19 has affected over 179 million people and killed approximately 3.9 million people in more than 200 countries across the globe (WHO,2021). This outbreak has not only affected people’s lives but also disrupted global supply chains. It has shown significant effects on businesses, consumers, and the global economy. Fear of the virus has led to many companies scrambling to respond regarding employees’ job security, ensuring supply security, risk mitigation strategy, and addressing market uncertainties that are driving down demand. Broadly, the objective of this article is to highlight issues faced by the upstream palm oil supply chain actors during this pandemic. Based on the problem, the study concluded that some forms of actions (short-term & long-term) have been proposed to ensure an agile palm oil supply chain.

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Global Supply Chains: New Trends in the Context of the Coronavirus Pandemic

Administrative Consulting ◽

10.22394/1726-1139-2020-11-42-48 ◽

2021 ◽

pp. 42-48

Author(s):

I. V. Boiko ◽

A. G. Getman

Keyword(s):

Supply Chain ◽

Supply Chains ◽

Risk Reduction ◽

Global Supply Chain ◽

The Other ◽

Global Supply Chains ◽

Short Term ◽

The One ◽

National Governments

The article is dedicated to the new trends emerging in the global supply chain, related to the coronavirus pandemic COVID-19, substantially affected production, transportation and marketing of goods. The authors underline a high risks of initial chain location in China, which sporadically leads to a localization of production supply within national borders. This biase in the international logistics is rather long term than short term I terms of national sustainability. The authors underline the icreasing significance of risk reduction and supply chain reliability over minimization of cost in the logistical decision makings. The ambivalency in the trade of the pandemic emergency goods is analysed in a sense of providing specifically favourable terms for its sirculation among the countries on the one side and the national protection issued for such goods by the national governments, pursuing its sufficient provision on the domestic market on the other side.

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Assessing supply chain risk for apparel production in low cost countries using newsfeed analysis

Supply Chain Management An International Journal ◽

10.1108/scm-11-2019-0423 ◽

2020 ◽

Vol 25 (6) ◽

pp. 803-821 ◽

Cited By ~ 2

Author(s):

Robert Handfield ◽

Hang Sun ◽

Lori Rothenberg

Keyword(s):

Supply Chain ◽

Low Cost ◽

Developed Countries ◽

Unstructured Data ◽

Risk Scores ◽

Supply Chain Risk ◽

Short Term ◽

Workplace Issues ◽

Content Type

Purpose With the growth of unstructured data, opportunities to generate insights into supply chain risks in low cost countries (LCCs) are emerging. Sourcing risk has primarily focused on short-term mitigation. This paper aims to offer an approach that uses newsfeed data to assess regional supply base risk in LCC’s for the apparel sector, which managers can use to plan for future risk on a long-term planning horizon. Design/methodology/approach This paper demonstrates that the bulk of supplier risk assessments focus on short-term responses to disruptions in developed countries, revealing a gap in assessments of long-term risks for supply base expansion in LCCs. This paper develops an approach for predicting and planning for long-term supply base risk in LCC’s to address this shortfall. A machine-based learning algorithm is developed that uses the analysis of competing hypotheses heuristic to convert data from multiple news feeds into numerical risk scores and visual maps of supply chain risk. This paper demonstrates the approach by converting large amounts of unstructured data into two measures, risk impact and risk probability, leading to visualization of country-level supply base risks for a global apparel company. Findings This paper produced probability and impact scores for 23 distinct supply base risks across 10 countries in the apparel sector. The results suggest that the most significant long-term risks of supply disruption for apparel in LCC’s are human resource regulatory risks, workplace issues, inflation costs, safety violations and social welfare violations. The results suggest that apparel brands seeking suppliers in the regions of Cambodia, India, Bangladesh, Brazil and Vietnam should be aware of the significant risks in these regions that may require mitigative action. Originality/value This approach establishes a novel approach for objectively projecting future global sourcing risk, and yields visually mapped outcomes that can be applied in forecasting and planning for future risks when considering sourcing locations in LCC’s.

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Research of Vulnerability for Fresh Agricultural-Food Supply Chain Based on Bayesian Network

Mathematical Problems in Engineering ◽

10.1155/2018/6874013 ◽

2018 ◽

Vol 2018 ◽

pp. 1-17 ◽

Cited By ~ 1

Author(s):

Juan Yang ◽

Haorui Liu

Keyword(s):

Supply Chain ◽

Bayesian Network ◽

Evaluation System ◽

Operation Time ◽

Weak Links ◽

Agricultural Product ◽

Accident Risk ◽

Short Term ◽

Dynamic Risk

Unbalanced supply and demand, bottleneck of transport capacity, seasonal cycle, and other factors lead to fragile supply chain of fresh agricultural products led by the platform, impeding smooth operation of the supply chain and even causing disruption risk. This paper studies the short-term and long-term vulnerability of the platform leading fresh agricultural product supply chain under the influence of logistics capital flow and information flow, defines its structure and the meaning of its vulnerability, analyzes the vulnerability of each link, and finds out the existing weak links in the supply chain through empirical research. The probability of accident is quantitatively analyzed by using the Bayesian Network. Firstly, the bow-tie model is used to identify the cause and consequence of the accident, and then it is transformed into the Bayesian Network model; then, the “Precursor Incident” information and prior probability are introduced to derive the posterior accident occurrence probability, and the probability of accident occurrence changing with time is quantitatively analyzed; finally, the dynamic risk calculation of fresh agricultural product trading center dominated by a certain platform was carried out. The results show that, with the increase of supply chain operation time and Precursor Incident, the probability of short-term supply chain vulnerability and accident risk present a significant increase trend, while the probability of long-term supply chain vulnerability and accident risk present a significant decrease trend. Therefore, it is suggested that enterprises should establish a dynamic risk evaluation system to monitor and predict the probability of event vulnerability, pay attention to “Precursor Incident,” and take measures to reduce it, such as effective integration of supply chain principal information, timely improvement of information integrated technologies, and comprehensive training on food safety and moral credibility.

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A knowledge-based system for overall supply chain performance evaluation: a multi-criteria decision making approach

Supply Chain Management An International Journal ◽

10.1108/scm-06-2017-0197 ◽

2019 ◽

Vol 24 (3) ◽

pp. 377-396 ◽

Cited By ~ 5

Author(s):

Sharfuddin Ahmed Khan ◽

Amin Chaabane ◽

Fikri Dweiri

Keyword(s):

Supply Chain ◽

Performance Evaluation ◽

Decision Makers ◽

Supply Chain Performance ◽

Decision Criteria ◽

Short Term ◽

Content Type ◽

Knowledge Based System ◽

Knowledge Based

Purpose Existing supply chain (SC) performance models are not able to cope with the potential of intensive SC digitalisation and establish a relationship between decisions and decision criteria. The purpose of this paper is to develop an integrated knowledge-based system (KBS) that creates a link between decisions and decision criteria (attributes) and evaluates the overall SC performance. Design/methodology/approach The proposed KBS is grounded on the fuzzy analytic hierarchy process (fuzzy AHP), which establishes a relationship between short-term and long-term decisions and SC performance criteria (short-term and long-term) for accurate and integrated Overall SC performance evaluation. Findings The proposed KBS evaluates the overall SC performance, establishes a relationship between decisions (long-term and short-term) and decision criteria of SC functions and provides decision makers with a view of the impact of their short-term or long-term decisions on overall SC performance. The proposed system was implemented in a case company where the authors were able to develop a SC performance monitoring dashboard for the company’s top managers and operational managers. Practical implications The proposed KBS assists organisations and decision makers in evaluating their overall SC performance and helps in identifying underperforming SC functions and their associated criteria. It may also be considered as a tool for benchmarking SC performance against competitors. It can efficiently point to improvement directions and help decision makers improve overall SC performance. Originality/value The proposed KBS provides a holistic and integrated approach, establishes a relationship between decisions and decision criteria and evaluates overall SC performance, which is one of the main limitations in existing supply chain performance measurement systems.

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