scholarly journals Empirical Detection and Quantification of Price Transmission in Endogenously Unstable Markets: The Case of the Global–Domestic Coffee Supply Chain in Papua New Guinea

2021 ◽  
Vol 13 (16) ◽  
pp. 9172
Author(s):  
Ray Huffaker ◽  
Garry Griffith ◽  
Charles Dambui ◽  
Maurizio Canavari
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Transaction Costs ◽  
Papua New Guinea ◽  
New Guinea ◽  
Global Market ◽  
Price Transmission ◽  
Detection Methods ◽  
Long Run ◽  
Spatial Arbitrage

Price transmission through global–domestic agricultural supply chains is a fundamental indicator of domestic market efficiency and producer welfare. Conventional price-transmission econometrics test for a theory-based spatial-arbitrage restriction that long-run equilibrium prices in spatially distinct markets differ by no more than transaction costs. The conventional approach is ill-equipped to test for price transmission when endogenously unstable markets do not equilibrate due to systematic arbitrage-frustrating frictions including financial and institutional transaction costs and biophysical constraints. We propose a novel empirical framework using price data to test for market stability and price transmission along international-domestic supply chains incorporating nonlinear time series analysis and recently emerging causal-detection methods from empirical nonlinear dynamics. We apply the framework to map-out and quantify price transmission through the global-exporter–processor–producer coffee supply chain in Papua, New Guinea. We find empirical evidence of upstream price transmission from the global market to domestic exporters and processors, but not through to producers.

scholarly journals Market Integration and Price Transmission in the Vertical Supply Chain of Rice: An Evidence from Bangladesh

Agriculture ◽  
2020 ◽  
Vol 10 (7) ◽  
pp. 271
Author(s):  
Limon Deb ◽  
Yoonsuk Lee ◽  
Sang Hyeon Lee
Keyword(s):  
Supply Chain ◽  
Market Integration ◽  
Threshold Effect ◽  
Price Transmission ◽  
Causality Test ◽  
Threshold Autoregressive ◽  
Market Participants ◽  
Long Run ◽  
Short Run ◽  
Retail Prices

As a staple food, rice has an enormous market in Bangladesh in terms of market participants and the volume of the product. As the price of rice is always a sensitive factor for producers, poor consumers and policy makers, this paper investigates market integration and price transmission along the vertical supply chain of rice. Johansen’s test of co-integration confirmed that farm, wholesale and retail prices are co-integrated in the long-run. A causality test revealed that prices were found to be at wholesale levels for both the upstream and downstream markets. The asymmetry error correction model (ECM) has discovered short-run and long-run asymmetry in price transmission in the vertical supply chain where both producers and consumers were being affected due to positive and negative asymmetry. Threshold autoregressive (TAR) and momentum threshold autoregressive (M-TAR) models have confirmed threshold co-integration as well as threshold effect on asymmetry in price transmission. The results highlight the inevitability of policy implementations and increased public interventions to reduce asymmetry for engendering greater pricing efficiency in Bangladesh rice markets.

scholarly journals Market integration and price transmission in Ethiopian banana supply chain

2020 ◽  
Author(s):  
Zewdie Habte Shikur
Keyword(s):  
Supply Chain ◽  
Granger Causality ◽  
Market Integration ◽  
Geographic Distance ◽  
Price Transmission ◽  
Transport Costs ◽  
Wholesale Market ◽  
Market Prices ◽  
Long Run ◽  
Banana Market

Abstract Local banana market prices in surplus areas are asymmetrically integrated and transmitted with that in central banana market prices or deficit areas due to geographic distance between markets, market power, and high transportation costs. As the result, the banana marketing margin is high due to high transport costs and transaction costs. Although the policy relevance of degree of vertical and spatial price transmission in banana supply chain, in Ethiopia is largely unknown, and this study assists to bridge the existing gap. The study investigates degree of spatial and vertical market integration and price transmission of banana supply chain in Ethiopia. ARDL co-integration bound tests and Granger causality tests are employed to examine vertical and horizontal price transmissions in banana supply chain using 10 years average monthly banana prices. The study finds relatively a higher degree of price transmission from central wholesale banana market to surplus banana market. Central wholesaler price has a significant effect on both banana producer and retailer prices in both long-run and short‐run. The result indicates that Granger causality is running from central wholesale market to local markets. There may be high transaction cost may reflect the vertical and spatial asymmetric price transmissions in banana supply chain. Policy interventions in banana supply chains could facilitate a faster and substantial degree of price transmission between actors in banana supply chain.

scholarly journals Agile Port and Intermodal Transport Operations Model to Secure Lean Supply Chains Concept

2012 ◽  
Vol 23 (2) ◽  
pp. 105-112 ◽  
Author(s):  
Bojan Beškovnik ◽  
Elen Twrdy
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Transport Model ◽  
Global Market ◽  
Intermodal Transport ◽  
Container Shipping ◽  
Shipping Industry ◽  
Chain Management ◽  
Operation Procedure

This article presents a strategic view of industry’s expectations from the lean supply chains concept in relation to the container shipping industry. The global market is putting the shipping industry under strong pressure as new trends in logistics seek new opportunities to cut unnecessary costs and players in the supply chain management and in the intermodal transport. For this reason we performed a research on how the intermodal transport can secure efficient transport operations. The emphasis is mainly on setting up the agile port and intermodal transport model, in which all necessary subjects should be involved in a unique supply chain. Thus we analyzed port operators, shipping lines and inland transport operators and the way they eliminate waste processes in their everyday operation procedure. Considering all important dynamic facts in the container and shipping industry and our analyses of the intermodal service through the port of Koper we propose the agile port and inland operations model suitable to improve intermodal service and to secure lean supply chains for containerized cargo. Consequently, we came to the conclusion that some traditional subjects in the traditional supply chain are not needed; while others, like customs authorities and inspection companies should be involved adequately to secure efficient organization of agile services in the ports, on the borders between different countries and at final destinations. KEY WORDS: lean supply chains, agile intermodal operations, shipping lines, port operators, inland transport operators

Fundamental Characteristics of the Lean Supply Chain

2015 ◽  
Vol 4 (2) ◽  
pp. 29-31
Author(s):  
Козлов ◽  
A. Kozlov
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Competitive Advantage ◽  
Global Market ◽  
Rapid Response ◽  
Shop Floor ◽  
Industrial Complex ◽  
Reduced Costs ◽  
To Receive ◽  
Lean Supply Chain

This article is devoted to the fundamental characteristics of lean supply chains. Lean technology is not limited to the shop floor, single factory or industrial complex. The best effect from utilizing lean technologies is can be obtained by applying them to the entire supply chain. The benefit of lean supply chains is, above all, in a more rapid response to customer demands in comparison to conventional supply chains. Reduced costs along with improved service enable all lean supply chain members to receive a significant competitive advantage on the global market.

Price Transmission along the European Food Supply Chain in Selected Northern-Southern Countries

2016 ◽  
Vol 1 (2) ◽  
pp. 31-48
Author(s):  
Wael Chouayet ◽  
Anthony Rezitis
Keyword(s):  
Supply Chain ◽  
Food Supply ◽  
Price Transmission ◽  
Food Supply Chain ◽  
Small Magnitude ◽  
Food Supply Chains ◽  
Use Of Time ◽  
Long Run ◽  
Short Run ◽  
Different Characteristics

This study intends to estimate the different characteristics of price transmission and aims to test the hypothesis of price transmission asymmetry based on agricultural, processor and consumer monthly series of price indexes from 2005 to 2012 in 8 European countries from both Southern and Northern Europe and via the use of time series as well as econometric approaches such as co-intergation and error correction models. The results obtained reveal that price transmission has very small magnitude. Indeed, just 10 to 12% of price shocks at one level are corrected in the long-run by prices at another level both downstream and upstream of the food supply chain. The results also show that prices are transmitted mutually in both directions downstream and upstream the food supply chain in the two European groups. Furthermore, they indicate that in the long-run prices are transmitted symmetrically both downstream and upstream of the food supply chains in Northern as well as in Southern Europe. Finally, in the short-run different conclusions are found depending on the region.

Modeling reconfigurability in supply chains using total interpretive structural modeling

2017 ◽  
Vol 14 (2) ◽  
pp. 194-221 ◽  
Author(s):  
Pallab Biswas
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
New Product Development ◽  
Structural Changes ◽  
Structural Modeling ◽  
Global Market ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Micmac Analysis ◽  
Expert Opinions

Purpose The purpose of this paper is to identify, analyze, and categorize the major enablers of reconfigurability that can facilitate structural changes within a supply chain in a global scenario. The paper also addresses five reconfigurability dimensions in the perspective of supply chains and the major enablers to attain them. The paper further aims to understand the mutual interactions among these enablers through the identification of hierarchical relationships among them. Design/methodology/approach A framework that holistically considers all the major enablers of reconfigurability has been developed. The hierarchical interrelationships between major enablers have been presented and interpreted using a novel qualitative modeling technique, i.e., total interpretive structural modeling (TISM), which is an extension of ISM. SPSS 22.0 is employed to carry out a one-tailed one-sample t-test further to test the hypotheses for validating the results of TISM. Impact matrix cross-reference multiplication applied to a classification (MICMAC) analysis has been employed to identify the driving and dependence powers of these reconfigurability enablers. Findings In this paper, 15 enablers for reconfigurability paradigm have been identified through literature review and expert opinions. The authors established interrelationships and interdependencies among these enablers and categorized them as enablers of each dimension. New product development and customer satisfaction come at the highest level of priority. The levels of these enablers were obtained using TISM. The authors compared the results with the clusters derived from MICMAC analysis, and the results are found to be well within the acceptable range. Research limitations/implications The study has implications for both practitioners and academia. The work provides a comprehensive list of enablers that are relevant to reconfigure supply chains in today’s volatile global market. This research will also help decision makers to strategically focus on the top-level enablers and their concerned dimensions. The research is based on an automobile company case study and can be extended to products with volatile and changing demands. Originality/value The proposed model for reconfigurability enablers using TISM is a new effort altogether in the area of supply chain management. The novelty of this research lies in its identification of specific enablers to reconfigure a supply chain through different dimensions.

The changing dynamics in the worldwide mobile phone market: creating excellence through innovation management and collaborative relationships

2015 ◽  
Vol 5 (1) ◽  
pp. 1-7 ◽  
Author(s):  
Pankaj Kumar Medhi ◽  
Sandeep Mondal
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Mobile Phone ◽  
Innovation Management ◽  
World Market ◽  
Global Market ◽  
High Tech ◽  
Global Supply Chains ◽  
Content Type ◽  
Market Dominance

Subject area Supply chain management (SCM). Study level/applicability Graduate students. Case overview In recent times, the world market of mobile phone is in a flux due to many phenomena of importance like strong emergence of smartphones, Nokia losing market share in all segments of market and fast technological and supply chain innovation by players like Apple and Google. Elements of SCM and the way technology is acquired have assumed a place of importance to compete in the global market. A new standard of innovation and SCM is emerging together as the rules of market dominance are re-written all-over again. Expected learning outcomes After completion of the case study, the students will understand: role of technological innovation in high-tech industry and global supply chains in changing the consumer behavior world over; the classic battle for market dominance with a new way of innovation management in technology and processes to create most efficient global supply chains; importance of SCM practices of collaboration like tighter partner integration, use of power asymmetry and contract by dominant players to create efficient supply chains; and how visionaries like late Steve Job are shaping the new era of technology. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email: [email protected] to request teaching notes.

scholarly journals Detecting Market Power Along Food Supply Chains: Evidence and Methodological Insights from the Fluid Milk Sector in Italy

Agriculture ◽  
2018 ◽  
Vol 8 (12) ◽  
pp. 191 ◽  
Author(s):  
Daniele Cavicchioli
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Food Supply ◽  
Imperfect Competition ◽  
Price Transmission ◽  
Equilibrium Displacement Model ◽  
Food Supply Chains ◽  
Equilibrium Displacement ◽  
National Competition ◽  
Fluid Milk

Concerns about the functioning of food supply chains have been raised by the European Commission over past years, calling for more effective and coordinated action by National Competition Authorities (NCAs). To fill this knowledge gap, an equilibrium displacement model is used to screen conduct along the supply chain, combining the advantages of asymmetric price transmission (APT) studies and structural models. The test was carried out on the Italian fluid milk supply chain following market monitoring action by the NCA. Three periods (1996–2003; 2000–2008 and 1996–2008) have been examined, finding imperfect competition over 1996–2008 and 2000–2008, while no conclusions may be drawn over the time span 1996–2003. In the testing process, the model’s peculiarities and certain limitations emerged, and related suggestions for its improvement are discussed. This approach may be used as a preliminary “fast” test for competition policy screening, as a complement to other methodologies. However, further theoretical and empirical model validation is necessary.

scholarly journals Impact of supply chain on the competitiveness of the automotive industry

2019 ◽  
Vol 54 (2) ◽  
pp. 205-225
Author(s):  
Carlos Sakuramoto ◽  
Luiz Carlos Di Serio ◽  
Alexandre de Vicente Bittar
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Transaction Costs ◽  
Automotive Industry ◽  
Chain Structure ◽  
Strategic Decision ◽  
Chain Model ◽  
Horizontal Structure ◽  
Content Type ◽  
Structural Problems

Purpose There is a great reliance on fiscal incentives to sustain the automotive industry competitiveness due to several structural problems, among them the inefficiency of the supply chain. This paper aims to compare the supply chain structure of traditional automotive industry with the supply chains from South Korea and China. Based on strategic decision and transaction cost theory, this comparison seeks to exploit the factors that led to the inefficiency of automotive supply chains. Design/methodology/approach The authors used a qualitative approach and applied a multi-method research. They conducted semi-structured interviews with six executives from automakers representing the selected countries, carried individual meetings during one workshop and used secondary data from several sources. Findings Concepts identified in the research such as reliability, supply chain governance and automaker competencies led the authors to propose that the traditional automakers have higher transaction costs when compared to the new automakers due to the horizontal structure of their supply chain. While new competitors have vertical upstream supply chains, which indicates better profitability, traditional automotive industry is horizontal, depends on fewer Tier 1 suppliers and is disconnected from Tier 2, impacting negatively in the transaction costs and supply chain management. Practical implications This study suggests that automotive executives rethink the current upstream supply chain model by identifying the competencies required for their current and future competitiveness and implementing a vertical integration of these competencies. Originality/value This research exploited the inefficiency of supply chain as one of the explanations for the low competitiveness of the national automotive industry.

EXPRESS: Information Disclosure Policy and Its Implications: Ratcheting in Supply Chains

2021 ◽  
pp. 002224372110351
Author(s):  
Brian Mittendorf ◽  
Jiwoong Shin ◽  
Dae-Hee Yoon
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Information Disclosure ◽  
Wholesale Price ◽  
Ratchet Effect ◽  
Disclosure Policy ◽  
Long Run ◽  
Short Run ◽  
Near Term ◽  
Express Information

Fear of escalating input prices in response to retail success is a commonly-discussed phenomenon affecting supply chains. Such a ratchet effect arises when a retailer feels compelled to modify his investments to better serve the end customers in order to hide positive prospects and restrain future wholesale price hikes. In a two-period model of supply chain interactions, the authors demonstrate that such an endogenous ratchet effect can have multi-faceted reverberations. A retailer fearing price hikes may be tempted to curtail near-term profits to ensure favorable long-term pricing. In response, the supplier can use deep discounts in its initial wholesale prices to convince the retailer to focus on its short-run profits rather than long-run pricing concerns. These deep discounts not only encourage mutually beneficial investments but also alleviate double-marginalization inefficiencies along the supply chain. In light of these results, the authors demonstrate that the mandatory information disclosure policy to reduce the ratchet effect decreases total channel efficiency compared to the case without information disclosure, precisely because mandatory disclosure interrupts the healthy tension among supply chain partners. Thus, the model presents a scenario where ratcheting concerns can create a degree of self-enforcing cooperation that results in socially beneficial responses in supply chains.

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