Research and Simulation of Supply Chain Disruption Based on Contract

2013 ◽  
Vol 380-384 ◽  
pp. 4815-4822 ◽  
Author(s):  
Qi Lian ◽  
Su Ling Jia
Keyword(s):  
Supply Chain ◽  
Negative Influence ◽  
Chain Model ◽  
Market Demand ◽  
Supply Chain Model ◽  
Hysteretic Effect ◽  
Total Profit ◽  
Total Inventory ◽  
Descriptive Statistical Analysis

In order to research the long-term disruption influence on supply chain and the performance that contracts exert on supply chain when disruption happens, this paper constructs a VMI three-echelon supply chain model based on system dynamics. Through dynamic simulation of the model, the total inventory, total profit and market demand shortage data are respectively collected under conditions of no disruption, manufacture disruption and transport disruption. By descriptive statistical analysis of these data, we find the disruption has secular and hysteretic effect on the supply chain. Furthermore, T test is used to testify the contracts effectiveness on the supply chain under disruption conditions. These analytical results show that quantity discount contract and revenue sharing contract can effectively relieve the negative influence on the supply chain when disruptions happen, since they not only enhance the total profit but also stabilize the fluctuation of the supply chains total inventory, whereas the contracts do not perform well in satisfying the market demand shortage.

scholarly journals Strategies for improving the supply chain of coal in Norte de Santander, Colombia

2015 ◽  
pp. 65-74 ◽  
Author(s):  
Jose Alejandro Cano ◽  
Cesar Augusto Panizo ◽  
Fabio Humberto García ◽  
Jorge Enrique Rodríguez
Keyword(s):  
Supply Chain ◽  
Information Search ◽  
Environmental Sustainability ◽  
Energy Costs ◽  
Chain Model ◽  
Secondary Sources ◽  
Supply Chain Model ◽  
World Class ◽  
Main Factors

This article aims to structure and characterize the supply chain of coal in Norte de Santander, identifying the main factors influencing the improvement of it. In this sense, an information search on secondary sources is performed to conceptualize the main contributions and functionality of logistics and supply chain management in the coal sector. With the collected data the different stages and actors involved in the chain of supply of coal are structured and characterized, and the most important strategies to achieve world-class performance in the supply chain are identified. As a result, it is recommended to adopt a supply chain model in the coal sector in Norte de Santander, and also implement strategies related to demand assurance, appropriate infrastructure, modernization of production processes, associativity, legal accompaniment, availability of supplies, long-term partnerships, supply stability, reduced energy costs and environmental sustainability.

The effect of full or partial pricing integration on supply chain management

2019 ◽  
Vol 53 (5) ◽  
pp. 1807-1817
Author(s):  
Neng-Hui Shih ◽  
Ming-Hung Shu ◽  
Chih-Hsiung Wang
Keyword(s):  
Supply Chain ◽  
Cost Model ◽  
Service Level ◽  
Chain Model ◽  
Control Cost ◽  
Integration Model ◽  
Optimal Service ◽  
Supply Chain Model ◽  
Optimal Pricing Strategy ◽  
Total Profit

A previous paper proposed a supply chain model, comprised of a retailer and manufacturer, in which the manufacturer uses product pricing to maximize the profit of the entire supply chain. The increased profits gained from integration are then shared among all the supply chain members. The optimal pricing strategy was shown to be “products on consignment” for sale. The present study extends this simple two-layer supply chain model to a more complicated three-layer model, in which the supply chain comprises not only the retailer and manufacturer, but also an intermediate distributor. In contrast to the previous model, the present model not only considers the role of the distributor, but also the effects of product nonconformance at each facility in the supply chain. The profit function of each facility in the supply chain is established, including the sales revenue, procurement cost, and quality control cost. The investment cost at the retailer to improve the service level is also considered. It is shown that the total profit of the supply chain is maximized when the retailer’s optimal service level is adopted, where this service level is adjusted in accordance with the distributor’s unit sale price. Furthermore, after price integration, the overall profit of the supply chain is found to equal the retailer’s profit. In other words, the total profit of the manufacturer and distributor is equal to zero. Numerical examples are given to illustrate the proposed pricing integration model under different quality environments. The results are contrasted with those obtained using a traditional pricing model, namely the “make up on cost’’ model. Overall, the present results show that the manufacturer is always the winner under partial price integration (i.e., only the retailer and distributor join the integration). Furthermore, partial integration is far less profitable for the retailer and distributor than full integration.

scholarly journals A two-echelon supply chain model with price and warranty dependent demand and pro-rata warranty policy under cost sharing contract

2021 ◽  
Vol 4 (2) ◽  
pp. 47-75
Author(s):  
Biswarup Samanta ◽  
◽  
Bibhas Chandra Giri ◽  
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Numerical Study ◽  
Chain Model ◽  
Selling Price ◽  
Market Demand ◽  
Warranty Period ◽  
Supply Chain Model ◽  
Warranty Cost ◽  
Parameter Values

In this article, a two-echelon supply chain model with a single-vendor a single-buyer is considered. The vendor's production process is imperfect and the market demand is assumed to be dependent on the buyer's selling price and warranty period. The vendor consents to return a definite portion of the buyer's purchase value, if any product is found defective within the length of warranty. The refund value or the warranty cost is considered as a function of the warranty period and the buyer's selling price of the item. This warranty cost is assumed to be fully borne by the vendor in the first model (Model I) while in the second model (Model II), it is assumed that the buyer agrees to bear a portion of the warranty cost. The proposed models are solved under decentralized scenario. We also derive and optimize the average total profit of the supply chain in order to obtain the optimal decisions of the centralized model. We consider a Stackelberg game between the vendor and the buyer in the decentralized scenario, where the vendor is assumed to be the leader and the buyer as the pursuer. Through numerical study, it is observed that, with respect to all the key decisions of the models, Model II provides better outcomes than Model I. Sensitivity analysis is also carried out to examine the impacts of changes of parameter-values on the optimum decisions.

A three-echelon supply chain model with price and two-level quality dependent demand

2020 ◽  
Vol 54 (1) ◽  
pp. 37-52
Author(s):  
Balaji Roy ◽  
Bibhas Chandra Giri
Keyword(s):  
Supply Chain ◽  
Raw Material ◽  
Model Parameters ◽  
Decision Variable ◽  
Chain Model ◽  
Market Demand ◽  
Decentralized System ◽  
Supply Chain Model ◽  
Dependent Demand

This paper considers a three-echelon supply chain model with one supplier, one manufacturer and one retailer for trading a single product. We assume that the market demand at the retailer’s end is stochastic, but dependent on price and quality of the product. The final product’s quality depends on the manufacturing process and the raw material’s quality. We first develop models for centralized and decentralized scenarios. Then we try to coordinate the decentralized system with some contract mechanism. We show that revenue sharing contract is not able to coordinate the system, but a composite contract comprised of sales rebate and penalty (SRP) with return is able to coordinate the system. Finally, we illustrate the developed model with a numerical example and show the efficiency of SRP with return policy. We graphically show the effects of various model-parameters on the optimal decisions. Most of the existing literature’s focus on the quality of the finished product, but in this model we incorporate the quality of the raw material as a decision variable along with the finished product quality. We also able to coordinate the three echelon model with a composite contract which is seldom addressed in the existing literatures.

scholarly journals An automotive supply chain model for a demand-driven environment

2011 ◽  
Vol 5 (1) ◽  
Author(s):  
Intaher M. Ambe ◽  
Johanna A. Badenhorst-Weiss
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Lean Manufacturing ◽  
New Technologies ◽  
Chain Model ◽  
Market Demand ◽  
Automotive Supply Chain ◽  
Supply Chain Model ◽  
Fierce Competition ◽  
Automotive Supply

The purpose of this article is to demonstrate the development of a supply chain model for the automotive industry that would respond to changing consumer demand. Now more than ever, businesses need to improve the efficiency of their supply chains in order to maintain a competitive advantage. The principles of lean manufacturing and just-intime (JIT) inventory control that were renowned for helping companies like Toyota, Dell and Walmart to rise to the top of their respective industries are no longer adequate. Leading companies are applying new technologies and sophisticated analytics to make their supply chains more responsive to customer demand. This challenge is driven by fierce competition, fluctuating market demand and rising customer requirements that have led to customers becoming more demanding with increased preferences. The article is based on theoretical reviews and suggests guidelines for the implementation of an automotive supply chain model for a demand-driven environment.

Two-echelon imperfect production fuzzy supply chain model for reliability dependent demand with probabilistic deterioration and rework

2021 ◽  
pp. 1-15
Author(s):  
Sudip Adak ◽  
G.S. Mahapatra
Keyword(s):  
Supply Chain ◽  
Production Rate ◽  
Production Cost ◽  
Idle Time ◽  
Chain Model ◽  
Specific Time ◽  
Defective Items ◽  
Imperfect Production ◽  
Supply Chain Model ◽  
Dependent Demand

This paper develops a fuzzy two-layer supply chain for manufacturer and retailer with defective and non-defective types of products. The manufacturer produces up to a specific time, including faulty and non-defective items, and after the screening, the non-defective item sends to the retailer. The retailer’s strategy is to do the screening of items received from the manufacturer; subsequently, the perfect quality items are used to fulfill the customer’s demand, and the defective items are reworked. The retailer considers that customer demand is time and reliability dependent. The supply chain considers probabilistic deterioration for the manufacturer and retailers along with the strategies such as production rate, unit production cost, cost of idle time of manufacturer, screening, rework, etc. The optimum average profit of the integrated model is evaluated for both the cases crisp and fuzzy environments. Managerial insights and the effect of changes in the parameters’ values on the optimal inventory policy under fuzziness are presented.

The problems facing agricultural sector in Zanzibar and the prospects of Waqf-Muzar’ah-supply chain model

Humanomics ◽  
2017 ◽  
Vol 33 (2) ◽  
pp. 189-210 ◽  
Author(s):  
Issa Salim Moh’d ◽  
Mustafa Omar Mohammed ◽  
Buerhan Saiti
Keyword(s):  
Supply Chain ◽  
Interest Rates ◽  
Financial Models ◽  
Agricultural Sector ◽  
Chain Model ◽  
Content Type ◽  
High Interest ◽  
Supply Chain Model ◽  
The Government ◽  
Clove Industry

Purpose This paper aims to identify the appropriate model to address the financial challenges in agricultural sector in Zanzibar. Since the middle of 1960, clove production has continually and significantly decreased because of some problems and challenges that include financial ones. The financial intermediaries such as banks, cooperatives and micro-enterprises provide micro-financing to the farmers with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. Design/methodology/approach The authors will review and examine several existing financial models, identify the issues and challenges of the current financial models and propose an appropriate Islamic financing model. Findings The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. This study, therefore, proposed a Waqf-Muzara’ah-supply chain model to address the financial challenge. Partnership arrangement is also suggested in the model to mitigate the issues of high interest rates and collateral that constrains the financial ability of the farmers and their agricultural output. Originality/value The contribution of the agricultural sector to the economic development of Zanzibar Islands is considerable. As one of the important agricultural sectors, the clove industry was the economic backbone of the government of Zanzibar. This study is believed to be a pioneering work; hence, it is the first study that investigates empirically the challenges facing the clove industry in Zanzibar.

A Study on Leagile Supply Chain Model and Performance Evaluation System Based on Lean Agile Theory

2014 ◽  
Vol 635-637 ◽  
pp. 1771-1775 ◽  
Author(s):  
Hui Min Jia ◽  
Kai Chao Yu ◽  
Jin Chang Zhang
Keyword(s):  
Supply Chain ◽  
Performance Evaluation ◽  
Evaluation System ◽  
Operating Mode ◽  
Agile Manufacturing ◽  
Chain Model ◽  
Performance Evaluation System ◽  
Supply Chain Model ◽  
And Performance ◽  
Lean Supply Chain

Leagile supply chain integrates lean supply chain and agile supply chain. In this paper, the theory of lean production and agile manufacturing are compared and analyzed, and then the leagile supply chain model and the performance evaluation system based on DEA are established. Based on the above, this paper provides an example of the evaluation system to verify the operability and effectiveness, which can provide the reference for enterprises to improve operating mode of the supply chain or develop a new leagile supply chain.

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