scholarly journals Coordinating Supply Chain Financing for E-commerce Companies Through a Loan Contract

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110654
Author(s):  
Jinjin Zhang ◽  
Xin Li ◽  
Yong-Hong Kuo ◽  
Yan Chen
Keyword(s):  
Supply Chain ◽  
Risk Premium ◽  
Wholesale Price ◽  
Fully Integrated ◽  
Finance Company ◽  
Supply Chain Financing ◽  
Financing Problem ◽  
The Cost ◽  
Loan Contract

This paper considers an online retailer and his or her manufacturer, both facing financial constraints and wishing to get loans from their e-commerce platform-backed finance company. Based on shared transaction data and monitored sales accounts, a tripartite loan contract is proposed to coordinate three parties’ actions in this supply chain financing problem. We prove that the proposed loan contract aligns the decentralized decision-makings of each party and duplicates the optimal channel performance under a fully integrated decision-making framework. A case study is then conducted to illustrate the performance of the proposed loan contract. The result shows that the proposed loan contract outperforms wholesale-price contracts, where coordination does not take place, and buyback contracts, where coordination happens between the retailer and the manufacturer only. Furthermore, a sensitivity analysis reveals that profit allocations among the lender, the retailer, and the manufacturer resulted from the proposed loan contract are more balanced when the cost-to-retail ratio or risk premium is high.

Competition and Coordination in a Dual-Channel Supply Chain With Asymmetric Retailers

2020 ◽  
pp. 1311-1328
Author(s):  
YuHang Zhang ◽  
Ying Wang
Keyword(s):  
Supply Chain ◽  
Single Channel ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Retail Market ◽  
Dual Channel ◽  
The Cost ◽  
Dual Channel Supply Chain ◽  
Different Characteristics ◽  
Linear Quantity

This article studies competition and coordination in a dual-channel supply chain where one supplier supplies homogeneous products to multiple asymmetric retailers, meanwhile, selling products to the end consumers acting as retailers, through a two-level Stackelberg game. This article first studies the asymmetry among the retailers in terms of the different characteristics of the cost, price, quantity. This article finds that a supplier's profits increase when the number of retailers are high enough in the retail market, even though the retail price of the retailers is lower than that of the supplier, or the wholesale price is cut down when there are many retailers competing in the retail market. On the other hand, under certain conditions, the efficiency of supply chain goes to 1. In this article, the authors show that some traditional contracts that can perfectly coordinate the single-channel supply chain, while failing to coordinate the dual-channel supply chain. Therefore, this article puts forth a linear quantity discount contract and first proves it can be applicable to the dual-channel supply chain with asymmetric retailers under a certain special condition where the lead retailer exits the retail market. The authors examine contracts which can reduce the loss of the efficiency, though they cannot completely coordinate a dual-channel supply chain.

Sharing Manufacturer’s Demand Information in a Supply Chain with Price and Service Effort Competition

2021 ◽  
Author(s):  
Yunjie Wang ◽  
Albert Y. Ha ◽  
Shilu Tong
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Problem Definition ◽  
Theoretic Model ◽  
Price Distortion ◽  
Demand Information ◽  
Private Demand ◽  
The Cost ◽  
The Impact ◽  
Share Information

Problem definition: This paper investigates the issue of sharing the private demand information of a manufacturer that sells a product to retailers competing on prices and service efforts. Academic/practical relevance: In the existing literature, which ignores service effort competition, it is known that demand signaling induces an informed manufacturer to distort the wholesale price downward, which benefits the retailers, and so, they do not have any incentive to receive the manufacturer’s private information. In practice, many manufacturers share demand information with their retailers that compete on prices and service efforts (e.g., demand-enhancing retail activities), a setting that has not received much attention from the literature. Methodology: We develop a game-theoretic model with one manufacturer selling to two competing retailers and solve for the equilibrium of the game. Results: We show how an informed manufacturer may distort the wholesale price upward or downward to signal demand information to the retailers, depending on the cost of service effort, the intensity of effort competition, and the number of uninformed retailers. We fully characterize the impact of such wholesale price distortion on the firms’ incentive to share information and derive the conditions under which the manufacturer shares information with none, one, or both of the retailers. We derive conditions under which a higher cost of service effort makes the retailers or the manufacturer better off. Managerial implications: Our results provide novel insights about how service effort competition impacts the incentives for firms in a supply chain to share a manufacturer’s private demand information. For instance, when the cost of effort is high or service effort competition is intense, a manufacturer should share information with none or some, but not all, of the retailers.

Costs and benefits of using cross-docking in the retail supply chain

2019 ◽  
Vol 47 (4) ◽  
pp. 412-432 ◽  
Author(s):  
Yassine Benrqya
Keyword(s):  
Supply Chain ◽  
Cost Model ◽  
Costs And Benefits ◽  
Actual Case ◽  
Content Type ◽  
Cross Docking ◽  
The Cross ◽  
The Right ◽  
The Cost

Purpose The purpose of this paper is to investigate the costs/benefits of implementing the cross-docking strategy in a retail supply chain context using a cost model. In particular, the effects of using different typologies of cross-docking compared to traditional warehousing are investigated, taking into consideration an actual case study of a fast-moving consumer goods (FMCG) company and a major French retailer. Design/methodology/approach The research is based on a case study of an FMCG company and a major French retailer. The case study is used to develop a cost model and to identify the main cost parameters impacted by implementing the cross-docking strategy. Based on the cost model, a comparison of the main cost factors characterizing four different configurations is made. The configurations studied are, the traditional warehousing strategy (AS-IS configuration, the reference configuration for comparison), where both retailers and suppliers keep inventory in their warehouses; the cross-docking pick-by-line strategy, where inventory is removed from the retailer warehouse and the allocation and sorting are performed at the retailer distribution centre (DC) level (TO-BE1 configuration); the cross-docking pick-by-store strategy, where the allocation and sorting are done at the supplier DC level (TO-BE2 configuration); and finally a combination of cross-docking pick-by-line strategy and traditional warehousing strategy (TO-BE3 configuration). Findings The case study provides three main observations. First, compared to traditional warehousing, cross-docking with sorting and allocation done at the supplier level increases the entire supply chain cost by 5.3 per cent. Second, cross-docking with allocation and sorting of the products done at the retailer level is more economical than traditional warehousing: a 1 per cent reduction of the cost. Third, combining cross-docking and traditional warehousing reduces the supply chain cost by 6.4 per cent. Research limitations/implications A quantitative case study may not be highly generalisable; however, the findings form a foundation for further understanding of the reconfiguration of a retail supply chain. Originality/value This paper fills a gap by proposing a cost analysis based on a real case study and by investigating the costs and benefits of implementing different configurations in the retail supply chain context. Furthermore, the cost model may be used to help managers choose the right distribution strategy for their supply chain.

Determination of the Optimal Number of Suppliers Considering the Risk: Emersun Company as a Case Study

2012 ◽  
Vol 433-440 ◽  
pp. 5873-5880 ◽  
Author(s):  
Nasim Mirahmadi ◽  
Esmaeel Saberi ◽  
Ebrahim Teimoury
Keyword(s):  
Supply Chain ◽  
Optimal Number ◽  
Development Cost ◽  
Supply Risk ◽  
Proposed Model ◽  
Management Area ◽  
The Cost ◽  
Tree Approach

Determining the number of suppliers chosen for cooperation in a supply chain is one of the most important problems in the supply chain management area. Regarding the fact that simultaneously decreasing the risk and cost is one of the most important objectives of every organization, besides the cost, the risk has also been introduced in the recent researches, as one of the most important criteria. In this paper, the decision tree approach is used for determining the optimal number of suppliers considering the supply risk and it has been tried to develop an applied method through expanding the cost criteria. The proposed model in this paper, therefore, contains any kind of cost ingredients such as cost of suppliers development, cost of suppliers management, cost of missing discount in volume due to increase in number of suppliers in supply base, and loss cost due to supply postponement from suppliers. This approach is implemented in Emersun Company.

scholarly journals SALES FORECAST FOR AGGREGATE PLANNING: CASE STUDY OF AN INDUSTRIAL PRODUCTS COMPANY IN MEXICO

2021 ◽  
Vol 8 (4) ◽  
pp. 381-392
Author(s):  
Ignacio Alvarez Placencia ◽  
Diana Sánchez-Partida ◽  
José-Luis Martínez-Flores ◽  
Patricia Cano-Olivos
Keyword(s):  
Supply Chain ◽  
Forecasting Model ◽  
Aggregate Level ◽  
Industrial Products ◽  
Sales Forecast ◽  
Demand Pattern ◽  
Best Execution ◽  
The Cost ◽  
Significant Effort

This case study presents the analysis through the use of sales estimation tools for planning demand for aggregate level as a finished product in a leading industrial products company in the market in Mexico. First, it aligned the demand plan and the supply plan, recommending the best execution scenario to increase operational efficiency and reduce the cost of operating the supply chain to increase the company's productivity and stay competitive. Then, after analysing the behaviour of the demand for selected products, the authors determined as the main affectation the inadequate precision of the method forecasting and the lack of an aggregate forecasting strategy that allows reducing the variation. Due to this, the most significant effort was concentrated on determining a better-forecasting model and the decision to aggregate the demand based on three relevant criteria: the demand pattern based on the Soft, Intermittent, Erratic or Irregular quadrant, the best method of the forecast for each product and the time in quarters. As a result, a reduction between 20% and 46% in the forecast variation can be obtained from the above.

Managing Cost of Quality in Supply Chains

2020 ◽  
pp. 231-249
Author(s):  
Ali Ghandour
Keyword(s):  
Supply Chain ◽  
Poor Quality ◽  
Chain Process ◽  
Cost Of Quality ◽  
The Past ◽  
The World ◽  
Key Factor ◽  
Supply Chain Process ◽  
The Cost

The purpose of this case study is to analyze the cost of quality (COQ) in the supply chain process at Arctic North Inc., one of the winter jackets manufacturers in Montreal, Canada. In addition to the case study, some proposed solutions and recommendations will be chosen based on the studied performance of the company. Over the past decades, quality is becoming more and more a key factor in customers' expectations. Organizations and businesses around the world are very interested in applying methodologies and techniques to reach higher quality levels since this will distinguish them from other competitors in the market. Furthermore, measuring the COQ in an organization is very important in order to be able to identify the problem of poor quality, quantify it, and analyze its causes to be able to solve it.

Competition and Coordination in a Dual-Channel Supply Chain With Asymmetric Retailers

2018 ◽  
Vol 14 (2) ◽  
pp. 98-115 ◽  
Author(s):  
YuHang Zhang ◽  
Ying Wang
Keyword(s):  
Supply Chain ◽  
Single Channel ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Retail Market ◽  
Dual Channel ◽  
The Cost ◽  
Dual Channel Supply Chain ◽  
Different Characteristics ◽  
Linear Quantity

This article studies competition and coordination in a dual-channel supply chain where one supplier supplies homogeneous products to multiple asymmetric retailers, meanwhile, selling products to the end consumers acting as retailers, through a two-level Stackelberg game. This article first studies the asymmetry among the retailers in terms of the different characteristics of the cost, price, quantity. This article finds that a supplier's profits increase when the number of retailers are high enough in the retail market, even though the retail price of the retailers is lower than that of the supplier, or the wholesale price is cut down when there are many retailers competing in the retail market. On the other hand, under certain conditions, the efficiency of supply chain goes to 1. In this article, the authors show that some traditional contracts that can perfectly coordinate the single-channel supply chain, while failing to coordinate the dual-channel supply chain. Therefore, this article puts forth a linear quantity discount contract and first proves it can be applicable to the dual-channel supply chain with asymmetric retailers under a certain special condition where the lead retailer exits the retail market. The authors examine contracts which can reduce the loss of the efficiency, though they cannot completely coordinate a dual-channel supply chain.

scholarly journals Biofuel from Balanites aegyptiaca: Optimization of the Feedstock Supply Chain

2018 ◽  
Vol 10 (12) ◽  
pp. 4501 ◽  
Author(s):  
Linda Bambara ◽  
Marie Sawadogo ◽  
Daniel Roy ◽  
Didier Anciaux ◽  
Joël Blin ◽  
...  
Keyword(s):  
Supply Chain ◽  
Cost Price ◽  
Transport Costs ◽  
Balanites Aegyptiaca ◽  
Optimal Organization ◽  
Seed Supply ◽  
Efficient Option ◽  
The Cost ◽  
And Storage

In arid and semi-arid climates, Balanites aegyptiaca (B. aegyptiaca) is a potential plant to produce oilseed-based biofuels. In this paper an optimization model for a wild biomass supply chain is presented. The model was developed to identify the optimal organization of the supply network that minimizes the cost of supplying the feedstock. It was applied to a case study on a B. aegyptiaca seed supply chain in Burkina Faso. Considering different means of transport and different pre-processing locations, the results show that in contexts such as Burkina Faso’s, the most efficient option for the supply of B. aegyptiaca seeds is using animal drawn carts to transport the biomass from the harvest sites to the collection points. Feedstock pre-processing should take place before transport and an improvement in pre-processing operations by mechanical de-hulling could help reduce the cost price of the seeds. The results also show that more than 35% of the cost price of B. aegyptiaca seed is accounted for by transport costs. Pre-processing, handling, and storage costs account for about 50% of the cost of the seeds.

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