The Model and Algorithm for Computing Market Share in Competitive Service Supply Chains

2011 ◽  
Vol 204-210 ◽  
pp. 1283-1286
Author(s):  
Yi Hong Hu ◽  
Jian Tong Zhang

This paper studies the problem of computing market share in competitive service supply chains characterized by service congestion phenomena. Heterogenous customers choose services based on the utility maximization principle taking congestion into account. We use customer choice theory and infinite dimensional variational inequality to model the customer behavior and estimate service product’s market share. An extended Frank and Wolfe algorithm for solving this market share problem and a numerical example is given. The results shows that that service providers with poor service quality can also win some market share due to customers’ aversion to congestion.

2014 ◽  
Vol 19 (4) ◽  
pp. 421-430 ◽  
Author(s):  
Jan Holmström ◽  
Jouni Partanen

Purpose – The purpose of this paper is to explore the forms that combinations of digital manufacturing, logistics and equipment use are likely to take and how these novel combinations may affect the relationship among logistics service providers (LSPs), users and manufacturers of equipment. Design/methodology/approach – Brian Arthur’s theory of combinatorial technological evolution is applied to examine possible digital manufacturing-driven transformations. The F-18 Super Hornet is used as an illustrative example of a service supply chain for a complex product. Findings – The introduction of digital manufacturing will likely result in hybrid solutions, combining conventional logistics, digital manufacturing and user operations. Direct benefits can be identified in the forms of life cycle extension and the increased availability of parts in challenging locations. Furthermore, there are also opportunities for both equipment manufacturers and LSPs to adopt new roles, thereby supporting the efficient and sustainable use of digital manufacturing. Research limitations/implications – The phenomenon of digital manufacturing-driven transformations of service supply chains for complex product does not yet fully exist in the real world, and its study requires cross-disciplinary collaboration. Thus, the implication for research is to use a design science approach for early-stage explorative research on the form and function of novel combinations. Practical implications – Digital manufacturing as a general-purpose technology gives LSPs an opportunity to consolidate demand from initial users and incrementally deploy capacity closer to new users. Reengineering the products that a manufacture currently uses is needed to increase the utilization of digital manufacturing. Originality/value – The authors outline a typology of digital manufacturing-driven transformations and identify propositions to be explored in further research and practice.


2014 ◽  
Vol 19 (2) ◽  
pp. 153-172 ◽  
Author(s):  
Kostas Selviaridis ◽  
Andreas Norrman

Purpose – The performance of service supply chains in terms of service levels and cost efficiency depends not only on the effort of service providers but also on the inputs of sub-contractors and the customer. In this sense, performance-based contracting (PBC) entails increased financial risk for providers. Allocating and managing risk through contractual relationships along the service supply chain is a critical issue, and yet there is scant empirical evidence regarding what factors influence, and how, provider willingness to bear PBC-induced risk. This paper aims to address this gap. Design/methodology/approach – The paper draws on agency theory and two cases of logistics service supply chains, in the food retail and automotive industries respectively, to identify key influencing factors. Data were collected through semi-structured interviews with 30 managers of providers and sub-contractors and review of 35 documents, notably contracts and target letters. Findings – Four influencing factors were found: performance attributability within the service supply chain; relational governance in service supply chain relationships; provider risk and reward balancing; and provider ability to transfer risk to sub-contractors. The propositions developed address how these factors influence provider willingness to bear PBC-induced risk. Research limitations/implications – The factors identified are external to the provider mindset and refer to the management of contractual relationships and service delivery interactions along the service supply chain. The paper contributes to agency theory by stressing the risk allocation implications of bi-directional principal-agent relations in service supply chains. Practical implications – The study suggests ways in which providers can increase their capacity to bear and manage financial risk related to PBC design. Originality/value – The paper identifies factors that influence provider willingness to bear financial risk induced by PBC in service supply chains.


2014 ◽  
Vol 67 (7) ◽  
pp. 1447-1454 ◽  
Author(s):  
Luis López ◽  
Roy Zúñiga

2018 ◽  
pp. 104-152
Author(s):  
Shabnam Rezapour ◽  
Amirhossein Khosrojerdi ◽  
Golnoosh Rasoulifar ◽  
Janet K. Allen ◽  
Jitesh H. Panchal ◽  
...  

Author(s):  
Joanna Alicja Dyczkowska

<p>This article describes the notion of “customer activity” in logistics services as an interaction with providers. We reviewed concepts of customer activity in services offered by logistics service providers (LSPs) in the food sector. We then analysed customer activity in transport, storage and management of services. We used a direct diagnostic survey for comparative analysis of groups of customers. The roles of LSPs in the supply chain and within the framework of cooperation in the business-to-business market are presented. Basic customer activities were examined by studying the supply chain, within which LSPs adapted their processes to the activities of their customers. The research results present the degree of customer activity in supply chains.</p><p><strong>Theoretical background:</strong> Customer activity in logistics services is mainly understood as part of interaction with providers. This study goes beyond this view by focusing on the independent activity of the customer in solutions related to transport, storage and the management of logistics services.</p><p><strong>Purpose of the article:</strong> The purpose of the article was to review concepts of customer activity in services offered by LSPs in food-sector supply chains; customer activity was characterised and applied in exploratory research.</p><p><strong>Research methods:</strong> A literature review, comparison of groups of customers, and a direct diagnostic survey method were all used.</p><p><strong>Main findings:</strong> The perspective of customer activity predominating among customers allows LSPs to pursue different activities on behalf of different groups of customers. This article contributes to research on logistics services while focusing on the concept of customer activity.</p>


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