scholarly journals Developing Fair Investment Plans to Enhance Supply Chain Visibility Using Cooperative Games

2019 ◽  
Vol 11 (11) ◽  
pp. 3209 ◽  
Author(s):  
Changhyun Kim ◽  
KwangSup Shin

As supply chains become more complex and globalized, the individual participants of the supply chains should invest in systems based on information communication technologies (ICT) such as the remote frequency identification device (RFID) with tags that secure the visibility of the entire supply chain. In addition, the level of visibility, such as the container, pallet, carton, and box, should be determined for each participant to optimize its own profit function. By using a collaborative game scheme, the present study illustrates the relationships among participants who invest to a certain level of visibility, and then how much value each participant gets. To find feasible solutions, a genetic algorithm-based mechanism is devised for modeling various fitness functions considering the total profit and benefit to cost (B/C) ratio. The proposed framework considers the relationship among participants, as well as the impact from the enhanced visibility, and it may be possible to make fair and rational decisions for all participants based on the quantitative metrics such as the B/C ratio. In this paper, we propose a novel method based on the game-theoretic approach where the enhanced visibility prevents a certain participant from taking most of the benefit. It seems possible to establish a long-term sustainable supply chain visibility by distributing profit fairly to all participants in the supply chain.

2020 ◽  
Vol 12 (18) ◽  
pp. 7413
Author(s):  
Jiguang Wang ◽  
Jianhong Chang ◽  
Yucai Wu

Nowadays, the green supply chain has become an exciting concept in academic societies. This paper focuses on the optimal production decisions of two competing supply chains from the perspective of green degree. The manufacturers in each supply chain have two options—producing a green product or a non-green product. Game theory is applied to study four decision scenarios, which are derived from the difference in the products of the two supply chains. This study investigates the influence of inter-supply-chain competition on the wholesale price, green degree, and profits of the supply chain members. The results indicate that the inter-supply-chain competition has a negative correlation with the wholesale price. The inter-supply-chain competition has a significant impact on green degree in the four decision scenarios. In addition, green products are not always the dominant strategy of manufacturers. Both the competitors’ product decisions and the degree of inter-supply-chain competition should be considered. Finally, weak inter-supply-chain competition is beneficial to the leader supply chain, while strong competition is beneficial to the follower supply chain.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patanjal Kumar ◽  
Dheeraj Sharma ◽  
Peeyush Pandey

PurposeSupply chain network is complicated to manage due to the involvement of a number of agents. Formation of virtual organization using Industry 4.0 (I4.0) is an approach to improve the efficiency and effectiveness and to overcome the complexities of the channel. However, the task of managing the channel further becomes complicated after incorporating sustainability into the supply chain. To fill this gap, this paper focuses on designing of mechanism and demonstration of I4.0-based virtual organization to coordinate sustainable supply chain.Design/methodology/approachIn this paper, we model and compare I4.0-based virtual organization models using four other traditional contracts with centralized supply chain. The non-cooperative game theoretic approach has been used for the analysis of models.FindingsOur game-theoretic analysis shows that investment in I4.0 and sustainable innovation are beneficial for the overall supply chain. Our results show that linear two-part tariff contract and I4.0-based virtual organization model can perfectly coordinated with the supply chain.Research limitations/implicationsThis study consider deterministic model settings with full information game. Therefore researchers are encouraged to study I4.0-based coordination models under information asymmetry and uncertain situations.Practical implicationsThe paper includes implications for the development of I4.0-based coordination model to tackle the problems of channel coordination.Originality/valueThis study proposes I4.0-based game-theoretic model for the sustainable supply chain coordination.


2016 ◽  
Vol 9 (5) ◽  
pp. 1020
Author(s):  
Borja Ponte ◽  
Isabel Fernández ◽  
Rafael Rosillo ◽  
José Parreño ◽  
Nazario García

Purpose: This paper aims to develop a theoretical framework for profit allocation, as a mechanism for aligning incentives, in collaborative supply chains.Design/methodology/approach: The issue of profit distribution is approached from a game-theoretic perspective. We use the nucleolus concept. The framework is illustrated through a numerical example based on the Beer Game scenario.Findings: The nucleolus offers a powerful perspective to tackle this problem, as it takes into consideration the bargaining power of the different echelons. We show that this framework outperforms classical alternatives.Research limitations/implications: The allocation of the overall supply chain profit is analyzed from a static perspective. Considering the dynamic nature of the problem would be an interesting next step. Practical implications: We provide evidence of drawbacks derived from classical solutions to the profit allocation problem. Real-world collaborative supply chains need of robust mechanisms like the one tackled in this work to align incentives from the various actors.Originality/value: Adopting an efficient collaborative solution is a major challenge for supply chains, since it is a wide and complex process that requires an appropriate scheme. Within this framework, profit allocation is essential.


2020 ◽  
Vol 39 (2) ◽  
pp. 147-168
Author(s):  
Ryan Atkins ◽  
Cam Caldwell ◽  

Decisions made by supply chain managers have a far-reaching impact on the economic, environmental, and social performance of entire supply chains, even though many activities in the supply chain occur beyond the direct control of those managers. Some firms establish a line of moral disengagement, beyond which they distance themselves from the impact of the activities of the supply chain. This research addresses the question of why some managers choose to take responsibility for the sustainability of their supply chain, while others do not. We argue that the ethical predisposition and moral complexity of the individual employee moderates the interpretation of the drivers of sustainability, increasing or decreasing their ability to build a business case for supply chain responsibility. We also argue that ethical predisposition moderates the likelihood of a business case being enacted. We then discuss theoretical and managerial implications resulting from this finding.


2016 ◽  
Vol 23 (2) ◽  
pp. 235-249 ◽  
Author(s):  
Bruno Silvestre

Abstract This paper is a research brief on sustainable supply chain management and covers some of the key elements of literature’s past debate and trends for future directions. It highlights the growth of this research area and reinforces the importance of a full consideration of all three key dimensions of sustainability when managing sustainable supply chains, i.e., the financial, environmental and social dimensions. Therefore, supply chain decision makers need to unequivocally assess the impact of their decisions on the financial, environmental and social performances of their supply chains. This paper also argues that risks and opportunities are the key drivers for supply chain decision makers to adopt sustainability within their operations, and that barriers to sustainability adoption exist. This research highlights that, depending on the focus adopted, supply chains can evolve and shift from more traditional to more sustainable approaches over time. The paper concludes with some promising avenues for future investigation.


2021 ◽  
Author(s):  
Hamed Jafari

Abstract This study considers a sustainable supply chain including the collector, cleaner, and recycler for recycling of PET plastic bottles and reusing them in textile industry. In the market, some suppliers of textile industry purchase cleaned and non-fragmented bottles and then they fragment them, whereas others prefer to buy recycled materials (i.e., cleaned and fragmented bottles). The collector collects used plastic bottles. To meet demand of the recycled materials, the collector transfers a portion of the collected bottles to the recycler and then the recycler cleans and fragments them. Furthermore, the collector cleans another portion of the collected bottles himself or via a cleaner to meet demand of the cleaned and non-fragmented bottles. In this setting, two different structures are established for transferring the cleaned bottles to suppliers. Under the first structure, the collector cleans the collected bottles through the cleaner by giving a share of the profit to him, while he is equipped with the bottles cleaning technology by paying a setup cost under the second structure. Moreover, the game-theoretic models are developed including Nash, Stackelberg, and Centralized to make decisions under two considered structures.


2017 ◽  
Vol 22 (6) ◽  
pp. 542-563 ◽  
Author(s):  
Maysara Sayed ◽  
Linda C. Hendry ◽  
Marta Zorzini Bell

Purpose The purpose of this study is to empirically investigate the impact of institutional pressures, institutional logics and institutional complexity on Sustainable Supply Chain Management (SSCM) practices across mixed public and private sector supply chains. Design/methodology/approach Multi-case study data were collected from three tiers of food and catering supply chains: the customer/consumer tier; focal public sector UK Universities; and private sector suppliers/contractors. Findings The findings indicate that: normative and mimetic pressures are more prevalent in focal Universities, compared to suppliers; there is typically no single dominant logic across these supply chains; and the multiplicity of institutional logics (e.g. sustainability logic versus financial logic) increases institutional complexity. Therefore, in the typical case of homogeneity in terms of institutional pressures and logics, e.g. with a dominant sustainability logic throughout the supply chain, radical change in SSCM practices is facilitated. In contrast, in the more typical case when there is heterogeneity, with competing logics at different supply chain tiers, this limits SSCM to more incremental changes in practices. Research limitations/implications This study is limited to three tiers of the food and catering supply chains of UK Universities. Practical implications To aid in the successful implementation of SSCM, this study suggests a need for managers to develop an initial understanding of the prevailing institutional logics and pressures at different tiers of the supply chain. Social implications A number of the SSCM practices studied address social sustainability. Originality/value No previous studies have empirically investigated the impact of institutional complexity in the context of SSCM practices across supply chains, involving both mixed public and private sector organisations.


Sign in / Sign up

Export Citation Format

Share Document