Optimal Strategies of Retailers Facing Potential Crisis in an Online-to-Offline Supply Chain

We confine our interest to the O2O (online-to-offline) supply chain system consisting of an online retailer and an offline retailer. Given that the brand they sell may encounter a brand crisis that will damage the goodwill, we formulate an O2O supply chain model with the impact of random crisis to explore the countermeasures of retailers when facing a potential crisis. After analysis, we find the following: (1) The crisis happened earlier with the increase of hazard rate and retailers should lower their investment in the precrisis stage. (2) The existence of crisis divides the whole planning period into two phases and make retailers have different phase preference in different scenarios. In a word, retailers will pay more attention to the postcrisis stage with the increase of hazard rate and damage rate and therefore invest more in the postcrisis stage. (3) Crisis will decrease the investment level of retailers and therefore make the goodwill and profits lower than when there is no crisis.

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Decision Analysis of Advertising and Price for Bilateral Competing Supply Chain

Mathematical Problems in Engineering ◽

10.1155/2013/395210 ◽

2013 ◽

Vol 2013 ◽

pp. 1-7

Author(s):

Cheng-Tang Zhang ◽

Shan-Lin Yang

Keyword(s):

Supply Chain ◽

Decision Model ◽

Prisoner's Dilemma ◽

Prisoner’S Dilemma ◽

Decision Models ◽

Competition Intensity ◽

Supply Chain System ◽

Investment Level ◽

First Mover Advantage ◽

The Impact

The outcome of centralized equilibrium, prisoner's dilemma equilibrium, and decentralized equilibrium under different decision models has been provided with regards to bilateral competing supply chain system, either side of which is composed of one manufacturer and one retailer. Theoretical analysis indicates a positive correlation between price and one's own advertising investment level and a negative correlation between price and the opponent's advertising investment level. Through analysis of numerical examples, the results reveal a first mover advantage that leads to prisoner's dilemma in the system as well as the impact that price and advertising competition intensity has on the supply chain's choice of decision model.

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Study of the Bullwhip Effect in a Multistage Supply Chain with Callback Structure considering Two Retailers

Complexity ◽

10.1155/2018/3650148 ◽

2018 ◽

Vol 2018 ◽

pp. 1-12 ◽

Cited By ~ 1

Author(s):

Junhai Ma ◽

Liqing Zhu ◽

Ye Yuan ◽

Shunqi Hou

Keyword(s):

Supply Chain ◽

Moving Average ◽

Bullwhip Effect ◽

Lead Times ◽

Chain Model ◽

Supply Chain System ◽

Forecasting Method ◽

Supply Chain Model ◽

The Impact ◽

Demand Processes

With the purpose of researching the bullwhip effect when there is a callback center in the supply chain system, this paper establishes a new supply chain model with callback structure, which has a material supplier, a manufacture, and two retailers. The manufacture and retailers all employ AR(1) demand processes and use order-up-to inventory policy when they make order decisions. Moving average forecasting method is used to measure the bullwhip effect of each retailer and manufacture. We investigate the impact of lead-times of retailers and manufacture, forecasting precision, callback index, and marketing share on the bullwhip effect of both retailers and manufacture. Then we use the method of numerical simulation to indicate the different parameters in this supply chain. Furthermore, this paper puts forward some suggestions to help the enterprises to control the bullwhip effect in the supply chain with callback structure.

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The impact for retailer’s policy in supply chain system under trade credit and quantity discounts

RAIRO - Operations Research ◽

10.1051/ro/2020115 ◽

2020 ◽

Author(s):

Tien-Yu Lin ◽

Ying-Chun Li

Keyword(s):

Supply Chain ◽

Trade Credit ◽

Supply Chain Coordination ◽

Optimal Solution ◽

Chain Model ◽

Quantity Discounts ◽

Setup Cost ◽

Supply Chain System ◽

Coordination Systems ◽

The Impact

This paper develops a powerful retailer inventory model under trade credit and quantity discounts in which the retailer’s order quantity is calculated for each setup and shipped in equal lots over multiple deliveries. Furthermore, the trade credit condition is that the retailer must make partial payments in cash for a given number of sub-shipments, with the remaining balance paid in trade credit time that expires after the inventory is depleted. This integrated powerful retailer supply chain model has not yet been discussed in previous supply chain coordination systems literature. We propose an annual total cost function and properties and develop theorems to illustrate that a unique optimal solution minimizes the relevant cost per year. We also develop an efficient algorithm to determine the optimal set of the replenishment time and the number of shipments. Numerical examples are provided to demonstrate the proposed model and algorithm. A sensitivity analysis is explored to examine the effects of four important parameters (i.e., setup cost, unit holding cost, interest rate, and receiving cost) on the optimal strategy. Finally, managerial insights are drawn

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Dynamic Adjustment Mechanism and Differential Game Model Construction of Mask Emergency Supply Chain Cooperation Based on COVID-19 Outbreak

Sustainability ◽

10.3390/su13031115 ◽

2021 ◽

Vol 13 (3) ◽

pp. 1115

Author(s):

Shufan Zhu ◽

Kefan Xie ◽

Ping Gui

Keyword(s):

Supply Chain ◽

Differential Game ◽

Production Technology ◽

Wholesale Price ◽

Transfer Payment ◽

Dynamic Adjustment ◽

Supply Chain System ◽

Government Subsidies ◽

Technology Investment ◽

The Impact

Incorporating the impact of the COVID-19 pandemic on the mask supply chain into our framework and taking mask output as a state variable, our study introduces the differential game to study the long-term dynamic cooperation of a two-echelon supply chain composed of the supplier and the manufacturer under government subsidies. The study elaborates that government subsidies can provide more effective incentives for supply chain members to cooperate in the production of masks compared with the situation of no government subsidies. A relatively low wholesale price can effectively increase the profits of supply chain members and the supply chain system. The joint contract of two-way cost-sharing contract and transfer payment contract can promote production technology investment efforts of the supply chain members, the optimum trajectory of mask production, and total profit to reach the best state as the centralized decision scenario within a certain range. Meanwhile, it is determined that the profits of supply chain members in the joint contract can be Pareto improvement compared with decentralized decision scenario. With the increase of production technology investment cost coefficients and output self-decay rate, mask outputs have shown a downward trend in the joint contract decision model. On the contrary, mask outputs would rise with growing sensitivity of mask output to production technology investment effort and increasing sensitivity of mask demand to mask output.

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Mathematical model of the feedback between global supply chain disruption and COVID-19 dynamics

Scientific Reports ◽

10.1038/s41598-021-94619-1 ◽

2021 ◽

Vol 11 (1) ◽

Author(s):

Xingyu Li ◽

Amin Ghadami ◽

John M. Drake ◽

Pejman Rohani ◽

Bogdan I. Epureanu

Keyword(s):

Mathematical Model ◽

Supply Chain ◽

Care Delivery ◽

Global Supply Chain ◽

Economic Losses ◽

Chain Model ◽

Supply Chain Disruption ◽

Disease Networks ◽

Resource Allocation Strategy ◽

The Impact

AbstractThe pandemic of COVID-19 has become one of the greatest threats to human health, causing severe disruptions in the global supply chain, and compromising health care delivery worldwide. Although government authorities sought to contain the spread of SARS-CoV-2, by restricting travel and in-person activities, failure to deploy time-sensitive strategies in ramping-up of critical resource production exacerbated the outbreak. Here, we developed a mathematical model to analyze the effects of the interaction between supply chain disruption and infectious disease dynamics using coupled production and disease networks built on global data. Analysis of the supply chain model suggests that time-sensitive containment strategies could be created to balance objectives in pandemic control and economic losses, leading to a spatiotemporal separation of infection peaks that alleviates the societal impact of the disease. A lean resource allocation strategy can reduce the impact of supply chain shortages from 11.91 to 1.11% in North America. Our model highlights the importance of cross-sectoral coordination and region-wise collaboration to optimally contain a pandemic and provides a framework that could advance the containment and model-based decision making for future pandemics.

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Simulation of marine vehicles operation in the state of wind and wave conditions

MORSKIE INTELLEKTUAL`NYE TEHNOLOGII ◽

10.37220/mit.2021.52.2.027 ◽

2021 ◽

pp. 191-199

Author(s):

А.А. Карпенко

Keyword(s):

Supply Chain ◽

Simulation Model ◽

Transport System ◽

Wind Wave ◽

Supply Chain System ◽

Chain System ◽

Marine Vehicles ◽

Marine Transport ◽

The Impact ◽

The City

Эксплуатация морского транспорта подвержена влиянию множества факторов, учет которого требует высокой трудоемкости. Как правило, моделирование морских транспортных систем, выступающих в роли связующего звена различных экономических процессов, производится на стадии предпроектной разработки. На этой стадии, помимо прочего, необходимо оценить влияние на проектируемую систему не только детерминированных, но и стохастических процессов. В данной работе описан алгоритм учета влияния ветро-волновых режимов морских участков на эксплуатацию морских транспортных судов. Данный алгоритм реализован на примере модели системы поставок сжиженного природного газа (СПГ) морским транспортом потребителям г. Мурманск. Научной новизной данной работы является комплексный подход к логико-математическому описанию эксплуатации морских транспортных средств. Этот подход включает в себя моделирование эксплуатации судна на базе агентного подхода, моделирование ветро-волновых режимов на основе анализа временных рядов и стохастических экспериментов и определение скорости движения судна на основе эмпирико-статистических формул расчета скорости судна и теории гидродинамики судна. В ходе выполнения данной работы была построена имитационная модель поставок СПГ в г. Мурманск морским транспортом. Результаты прогонов этой модели были верифицированы на основе технико-экономического обоснования АО «ЦНИИМФ». Алгоритм построения имитационной модели, описанный в данной работе, может быть применен для имитационного моделирования морских транспортных систем с различными целями функционирования. Marine transport operation is affected by a lot of factors taking into account of which requires a high laboriousness. In most cases modelling of marine transport operation as a link in various economic processes is performed at the pre-design development stage. By the way, evaluation of the impact of both deterministic and stochastic processes on the designed system is necessary at this stage. Evaluation of transport system efficiency based on pre-formed system of criteria is in progress at this stage. This paper describes an algorithm for modeling the operation of marine vessels taking into account wind-wave regime of sea areas. This algorithm is implemented by the model of liquified natural gas (LNG) supply chain system by marine transport to consumers of the city of Murmansk. Scientific novelty of this paper is a complex approach to logical-mathematical description of marine vehicles exploitation. This approach consists of agent-based simulation of vessel exploitation, modelling of wind-wave regimes by means of time series analysis and stochastic modelling and the speed determination of the vessel movement based on the empirical-statistical formulas for calculating the speed of the vessel and the theory of vessel hydrodynamics. During this research simulation model LNG supply chain system by marine transport to consumers of the city of Murmansk was developed. The results of the model have been verified by the feasibility study performed by CNIIMF JSC. The algorithm for constructing simulation model described in this paper could be implemented in modelling of marine transport system for various purposes.

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Integrated Supply Chain Contract Model With Drop-Shipper Players

Jurnal Teknik Industri ◽

10.22219/jtiumm.vol19.no1.58-72 ◽

2018 ◽

Vol 19 (1) ◽

pp. 58

Author(s):

Faisal Ibrahim

Keyword(s):

Supply Chain ◽

Chain Model ◽

Actual System ◽

Supply Chain System ◽

Supply Chain Contract ◽

Total Cost ◽

Chain System ◽

Coordination Model ◽

Supply Chain Model ◽

Integrated Supply Chain

In this paper, we developed model integrated supply chain model with drop-shipper players. The aim of the study is to integrate players in the supply chain system that one of its players is a drop shipper. This coordination model considers the policy of late payment and prosecution for delivery of goods. Previous, The author has described the supply chain system in detail. The experiments were conducted into different case scenarios, where each scenario would represent the actual system that occurred. Then also conducted sensitivity analysis on some predicted variables significantly influence the total cost of the supply chain. From the results obtained, it can be concluded that coordination with consideration of delay in payment and penalty contract for drop ship has successfully integrated the players in the supply chain system under study. This can be proved by the lower total cost of the supply chain when it is integrated with that consideration.

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Simulation Research on Information-Sharing Value of Two-Level Supply Chain

Security and Communication Networks ◽

10.1155/2021/5361887 ◽

2021 ◽

Vol 2021 ◽

pp. 1-8

Author(s):

Xiaheng Zhang ◽

Zekai Lin ◽

Lin Xiao

Keyword(s):

Supply Chain ◽

Performance Evaluation ◽

Information Sharing ◽

Chain Model ◽

Simulation Research ◽

Incentive Effect ◽

Actual Evaluation ◽

Demand Information ◽

And Performance ◽

The Impact

In the two-stage supply chain model, the incentive effect to the supplier’s sharing of demand information and performance evaluation and the effect of various parameters on the incentive effect of the supply chain are studied through a multiagent simulation model constructed for the purpose. It is found that the incentive coefficient of demand information-sharing degree, the number of selected suppliers, the order allocation coefficient, and the order proportion are positively related to the incentive effect of demand information sharing. So, the greater the demand information sharing is, the greater the impact of these parameters on the incentive effect is. Based on the demand information sharing, the supplier performance evaluation rules are shared, and when the actual evaluation rules are inconsistent with the supplier’s expectations, the incentive effect is further enhanced. Other parameters do not affect the incentive effect of demand information sharing and performance evaluation rule sharing.

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The Impact of RFID Investment on Complex Product in Three-Level Assembly Supply Chain

Mathematical Problems in Engineering ◽

10.1155/2013/271496 ◽

2013 ◽

Vol 2013 ◽

pp. 1-11 ◽

Cited By ~ 1

Author(s):

Wei Xu ◽

Zhaotong Lian ◽

Xifan Yao

Keyword(s):

Information Technology ◽

Supply Chain ◽

Supply Chain Coordination ◽

Stackelberg Games ◽

Optimal Decision ◽

Chain Model ◽

Complex Product ◽

Coordination Model ◽

Technology Investment ◽

The Impact

Motivated by the complex product with the feature about error-prone assembly system and supply chain inventory inaccuracy, this paper elaborates on the impact of information technology investment on complex product by establishing a three-stage supply chain model involving two suppliers, one manufacturer, and retailer which carried out Stackelberg games. In addition, it not only compares the manufacturer and the retailer’s optimal decision and maximum profit under the situation of the information asymmetry and free information sharing, but also analyzes their market behavior and changes in market performance. Meanwhile, it points out that the downstream in supply chain masters more information about market demands compared to the upstream one. The optimal cost threshold values of technology investment are also examined both for the centralized and the decentralized scenarios utilizing quantitative and modeling methods. By analyzing and comparing the optimal profit with or without investment on information technology, it establishes a supply chain coordination model which boosts the application of information technology. At the same time, it offers the conditions on which the upstream and downstream enterprises can coordinate with one another. The results of this paper have contributed significantly to making the price and ordering decisions on whether RFID should be adopted among members of the supply chain. Finally, we present numerical analyses, and several extensions of the model are considered as well.

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Prioritization of the Best Sustainable Supply Chain Risk Management Practices Using a Structural Analysis Based-Approach

Sustainability ◽

10.3390/su13094608 ◽

2021 ◽

Vol 13 (9) ◽

pp. 4608

Author(s):

Manel Elmsalmi ◽

Wafik Hachicha ◽

Awad M. Aljuaid

Keyword(s):

Risk Management ◽

Supply Chain ◽

Structural Analysis ◽

Management Practices ◽

Supply Chain Risk Management ◽

Sustainable Supply Chain ◽

Supply Chain Risk ◽

Delayed Differentiation ◽

Two Phases ◽

The Impact

Companies attempt to improve the performance of their supply chain (SC) by distinguishing and presenting feasible sustainable development practices (SDP). Considering SDP without focusing on sustainability risks may disturb the company’s future. Very few studies in the extant literature have dealt with the impact of (SDP) on the supply chain risk management (SCRM). In fact, the aim of this paper is to classify and prioritize SDPs according to their priority for better risk management and effective SC performance. The proposed approach comprises two phases. First, 14 SDPs are identified and selected from the literature. Second, MICMAC (Matrice d’impacts croisés multiplication appliquée à un classement) method as a structural analysis method applies to identify and assess sustainable supply chain risk management (SSCRM) practices which reduce risk in the SC. The input data for each phase are based on Delphi technique, which is a process group used to collect the opinions of experts in the field. The aim of the proposed approach is to prioritize SSCRM practices and classify them into influential, non-influential, independent and dependent practices and their mutual relationships. The six key findings SSCRM practices from direct and indirect classification include the following elements: (1) Delayed differentiation, (2) Information sharing with upstream and/or downstream partners, (3) Simplification of product dismantling/anticipation of product end of life, (4) Supplier/subcontractor’s performance assessment, (5) establishing shared supply management and (6) establishment of contracts with transporters.

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