scholarly journals Coordination of a fresh agricultural product supply chain with option contract under cost and loss disruptions

PLoS ONE ◽  
2021 ◽  
Vol 16 (6) ◽  
pp. e0252960
Author(s):  
Nana Wan ◽  
Li Li ◽  
Xiaozhi Wu ◽  
Jianchang Fan
Keyword(s):  
Supply Chain ◽  
Production Cost ◽  
Loss Rate ◽  
Option Price ◽  
Chain Structure ◽  
Agricultural Product ◽  
Coordination Problem ◽  
Profit Allocation ◽  
Exercise Price ◽  
Supply Chain Structure

This paper analyzes the option coordination problem of a fresh agricultural product supply chain under two supply chain structures, when the production cost and the loss rate are disrupted simultaneously. This paper provides the explicit option coordination conditions for the disrupted supply chain under two supply chain structures, and then explores the effects of the disruptions and supply chain structure on the option coordination conditions. The results suggest that it is unfavorable to apply the original coordinating contracts without disruptions to coordinate the disrupted supply chain. The coordination of the disrupted supply chain can be achieved with knowledge of the distribution of demand. In two coordinating contracts for the disrupted supply chain, the exercise price is still at the original level without disruptions while the option price deviates from the original level without disruptions. Moreover, the relationships of the coordination conditions in two supply chain structures depend on the value of the profit allocation coefficient. When the profit allocation coefficient exceeds (falls behind) a certain threshold, the option price is set at a higher (lower) value in the supplier-led supply chain structure than in the distributor-led supply chain structure, while the exercise price is set at a lower (higher) value in the supplier-led supply chain structure than in the distributor-led supply chain structure. Finally, the disrupted supply chain with any supply chain structure will perform better in the modified coordinating contracts than in the original coordinating contracts without disruptions.

scholarly journals Impacts of put option contract and supply chain structure in a multi-period supply chain with uncertain demand

2020 ◽  
Author(s):  
Nana Wan ◽  
Jianchang Fan
Keyword(s):  
Supply Chain ◽  
Option Price ◽  
Service Level ◽  
Chain Structure ◽  
Approximate Algorithm ◽  
Put Option ◽  
Option Contract ◽  
Exercise Price ◽  
Total Profit ◽  
Supply Chain Structure

This paper builds the multi-period optimization models that incorporate put option contract and two supply chain structures to determine the production decision for a supplier and the ordering decision for a manufacturer in a two-stage supply chain. This paper applies the method of dynamic programming to derive the structures of optimal policies and provides an approximate algorithm to evaluate the myopic policies. This paper also conducts numerical examples to illustrate the impacts of put option contract, supply chain structure and demand risk on the members’ decisions and total profits as well as the channel’s total profit. The results indicate that put option contract can motivate to increase the channel’s service level and reduce the manufacturer’s inventory risk under two supply chain structures, when compared to the case without put option contract. In the manufacturer-led structure, the channel always benefits from put option contract, the supplier benefits from put option contract with a high option price and a low exercise price, while the manufacturer benefits from put option contract with a low option price and a high exercise price. In the supplier-led structure, the channel and the manufacturer always benefit from put option contract, while the supplier benefits from put option contract with a high option price and a low exercise price. With put option contract, the supplier is more profitable in the manufacturer-led structure than in the supplier-led structure, while the manufacturer and the channel are more profitable in the supplier-led structure than in the manufacturer-led structure. Without and with put option contract, the optimal total profits of two members and the channel will first decrease and then increase in the demand risk. Finally, this paper identifies the explicit conditions under which the multi-period supply chain can be coordinated via put option contract under two supply chain structures. With a coordinating contract, the supplier and the manufacturer are better off compared to the case without put option contract.

The relationship between internal supply chain structure and operational performance: survey results from Japanese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama
Keyword(s):  
Supply Chain ◽  
Structural Properties ◽  
Operations Management ◽  
Chain Structure ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Wide Range ◽  
Supply Chain Structure ◽  
The Relationship

Purpose The purpose of this paper is to discuss the roles of a supply chain management (SCM) department. To achieve that, this study empirically examines the relationship between internal supply chain structure and operational performance, using survey data collected from 108 Japanese manufacturers. Design/methodology/approach Based on a literature review of not only organizational theory but also other fields such as marketing, logistics management, operations management and SCM, this study focused on two structural properties, formalization and centralization and divided operational performance to firm-centric efficiency and customer-centric responsiveness. To examine the analytical model using these dimensions, this study conducted a structural equation modeling. Findings The correlation between centralization of operational tasks and centralization of strategic tasks, the impacts of centralization of both tasks on formalization and the effect of formalization on responsiveness performance were demonstrated. In addition, the reasons for formalization not positively influencing efficiency performance were explored through follow-up interviews. Practical implications Manufacturers need to formalize, as much as possible, a wide range of SCM tasks to realize operational excellence. To establish such formalized working methods, it is effective to centralize the authorities of both operational and strategic tasks in a particular department. In addition, inefficiency due to strict logistics service levels is a problem that all players involved in the supply chain of various industries should work together to solve. Originality/value The theoretical contribution of this study is that the authors established an empirical process that redefined the constructs of formalization and centralization, developed these measures and examined the impacts of these structural properties on operational performance.

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