4.6 Article

The power of flexibility for mitigating supply chain risks

期刊

出版社

ELSEVIER
DOI: 10.1016/j.ijpe.2008.07.008

关键词

Supply chain disruptions; Risk management; Flexibility; Resilient supply chains

向作者/读者索取更多资源

Lee [2004. The triple-a supply chain. Harvard Business Review 102-112] articulated that alignment, adaptability, and agility are the basic ingredients for managing supply chain risks. While it is clear that flexibility (agility) enhances supply chain resiliency, it remains unclear how much flexibility is needed to mitigate supply chain risks. Without a clear understanding of the benefit associated with different levels of flexibility, firms are reluctant to invest in flexibility especially when reliable data and accurate cost and benefit analysis are difficult to obtain. In this paper, we present a unified framework and 5 stylized models to illustrate that firms can obtain significant strategic value by implementing a risk reduction program that calls for a relatively low level of flexibility. Some of our model analyses are based on or motivated by models presented in recent literature. Our findings highlight the power of flexibility, and provide convincing arguments for deploying flexibility to mitigate supply chain risks. (c) 2008 Elsevier B.V. All rights reserved.

作者

我是这篇论文的作者
点击您的名字以认领此论文并将其添加到您的个人资料中。

评论

主要评分

4.6
评分不足

次要评分

新颖性
-
重要性
-
科学严谨性
-
评价这篇论文

推荐

Article Engineering, Industrial

Research opportunities in preparing supply chains of essential goods for future pandemics

ManMohan S. Sodhi, Christopher S. Tang, Evan T. Willenson

Summary: The COVID-19 pandemic has put the supply chains for medically critical items and common household goods to the test, particularly in terms of severe shortages of personal protective equipment (PPE) and ventilators in the United States. These shortages have revealed vulnerabilities in the supply chains of essential products during times of crisis, leading to public pressure on corporations to reconsider their supply chains. Drawing from lessons learned during the pandemic, this paper proposes a research agenda and opportunities to develop responsive supply chains to combat future pandemics and major public health emergencies.

INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH (2023)

Article Management

Recovering Global Supply Chains from Sourcing Interruptions: The Role of Sourcing Strategy

Nitish Jain, Karan Girotra, Serguei Netessine

Summary: This study investigates the impact of different supply chain strategies on the recovery ability of supply chains from sourcing interruptions. The results show that supplier diversification is associated with slower recovery, while the use of long-term relationships is linked to faster recovery.

M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT (2022)

Article Management

The Internet of Things and Information Fusion: Who Talks to Who?

Soroush Saghafian, Brian Tomlin, Stephan Biller

Summary: This study focuses on the communication selection problem of autonomous sensors connected through the Internet of things, highlighting the role of environment state in mediating sensor quality and familiarity. When sensor qualities are public, sensors eventually settle on a constant target set, but this choice is influenced by past states. When sensor qualities are private, sensors may not settle on a constant target set.

M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT (2022)

Article Management

The implications of crop minimum support price in the presence of myopic and strategic farmers

Prashant Chintapalli, Christopher S. Tang

Summary: This paper examines the implications of credit-based MSPs in a more general setting, involving two types of farmers and two types of crops. The study finds that strategic farmers can counteract the decisions of myopic farmers and that credit-based MSPs are more effective when the market is dominated by myopic farmers. Additionally, offering MSPs to complementary crops can result in a higher surplus.

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH (2022)

Article Management

Sourcing from a Self-Reporting Supplier: Strategic Communication of Social Responsibility in a Supply Chain

Tao Lu, Brian Tomlin

Summary: Supplier self-assessments can be a valuable strategy for managing supplier social responsibility, but the credibility of self-reported information can be challenging. Buyers can benefit from increasing audit costs, and upfront auditing steps can ensure minimum SR capability of approved suppliers.

M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT (2022)

Article Engineering, Manufacturing

Crop minimum support price versus cost subsidy: Farmer and consumer welfare

Prashant Chintapalli, Christopher S. Tang

Summary: Many developing countries use minimum support price (MSP) as an alternative subsidy scheme to safeguard farmers' incomes and ensure sufficient crop production. Both MSP and cost subsidy can increase production and improve consumer surplus, but cost subsidy may decrease farmer's surplus unexpectedly.

PRODUCTION AND OPERATIONS MANAGEMENT (2022)

Article Business

Frontiers in Service Science: Integrating ESG Measures and Supply Chain Management: Research Opportunities in the Postpandemic Era

Tinglong Dai, Christopher Tang

Summary: The COVID-19 pandemic has highlighted the critical role of supply chains in delivering economic, human, and societal value, while also increasing interest in ESG issues among businesses, governments, and academics. In the globalized economy, ESG measures must encompass a firm's end-to-end operations across its entire supply chain, with well-calibrated ESG measures playing a key role in guiding day-to-day supply chain management practices.

SERVICE SCIENCE (2022)

Article Management

On-Demand Meal Delivery Platforms: Operational Level Data and Research Opportunities

Wenzheng Mao, Liu Ming, Ying Rong, Christopher S. Tang, Huan Zheng

Summary: This paper discusses the operations of on-demand meal delivery platforms and suggests using empirical research to improve their performance. It provides a unique dataset from a meal delivery platform in China and reviews recent studies on meal delivery platforms, offering research opportunities for enhancing delivery performance.

M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT (2022)

Article Management

After-Sales Service Contracting: Condition Monitoring and Data Ownership

Cuihong Li, Brian Tomlin

Summary: This study analyzes the application of condition monitoring (CM) in asset management and its potential limitations due to data ownership. The results show that CM is beneficial for manufacturers and the supply chain, but may have a negative impact on customers. Overcoming the data ownership barrier can be achieved by implementing a data access fee.

M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT (2022)

Article Management

The effects of surge pricing on driver behavior in the ride-sharing market: Evidence from a quasi-experiment

Wei Miao, Yiting Deng, Wei Wang, Yongdong Liu, Christopher S. Tang

Summary: This study examines the causal effects of surge pricing on driver earnings and labor supply in the ride-sharing industry. The findings show that surge pricing leads to an increase in drivers' weekly revenue, but a decrease in their daily revenue. Additionally, surge pricing attracts more part-time drivers into the market and displaces full-time drivers.

JOURNAL OF OPERATIONS MANAGEMENT (2023)

Article Engineering, Manufacturing

Preparedness with a system integrating inventory, capacity, and capability for future pandemics and other disasters

Musen Kingsley Li, ManMohan S. Sodhi, Christopher S. Tang, Jiayi Joey Yu

Summary: This paper examines the integration of stockpile inventory, backup capacity, and standby capability to meet the surge in demand during disasters. The results show that adding capacity and developing capability can be cost-effective strategies in reducing inventory and overall costs.

PRODUCTION AND OPERATIONS MANAGEMENT (2023)

Article Management

Improving Access to Rare Disease Treatments: Subsidy, Pricing, and Payment Schemes

Wendy Olsder, Tugce Martagan, Christopher S. Tang

Summary: To improve the availability and accessibility of treatments for rare diseases, governments have introduced subsidy programs, exogenous pricing, and outcome-based payment schemes. Research shows that government subsidies are crucial for attracting new drug development for rare diseases; the exogenous pricing scheme can improve patient welfare but reduces the manufacturer's profit.

MANAGEMENT SCIENCE (2023)

Article Management

Forewarned Is Forearmed? Contingent Sourcing, Shipment Information, and Supplier Competition

Tao Lu, Brian Tomlin

Summary: Dual sourcing and contingent sourcing are important risk mitigation strategies for managing supply chain risks, particularly transportation-related losses of inbound orders. Shipment information, obtained through in-transit inspection points or monitoring technologies, enables contingent sourcing as a means of managing transportation risk. This study examines the impact of contingent sourcing and shipment information in a setting where a buyer can source from two competing suppliers.

M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT (2023)

Article Management

Inverse optimization of integer programming games for parameter estimation arising from competitive retail location selection

Tobias Croenert, Layla Martin, Stefan Minner, Christopher S. Tang

Summary: When determining store locations, competing retailers need to consider customers' store choices. Incumbent retailers estimate customer attraction parameters using historical data, while new entrants can observe the location structure of incumbents to estimate these parameters. We propose an inverse optimization approach to help new entrants improve their profits by identifying parameter combinations that lead to observed equilibrium solutions.

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH (2024)

Article Engineering, Industrial

Can two competing on-demand service platforms be profitable?

Jiaru Bai, Christopher S. Tang

Summary: This study analyzes the equilibrium structure of competing service platforms in a two-sided market and finds that only one platform can sustain and dominate the market. However, under certain conditions, both platforms can be profitable in equilibrium.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2022)

Article Engineering, Industrial

Alliance formation between a platform retailer and competing manufacturers in sharing consumer data for product development

Hiroshi Matsuhisa, Nobuo Matsubayashi

Summary: This study investigates the formation of an alliance between competing manufacturers and a monopolistic platform retailer, and analyzes the impact of the degree of differentiation among manufacturers on the formation of the alliance and the profitability of the retailer.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

A federated machine learning approach for order-level risk prediction in Supply Chain Financing

Lingxuan Kong, Ge Zheng, Alexandra Brintrup

Summary: Supply Chain Financing is used to optimize cash flows in supply networks, but recent scandals have shown inefficiencies in risk evaluation. This paper proposes a Federated Learning framework to address order-level risk evaluation.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

Examining the impact of market power discrepancy between supply chain partners on firm financial performance

Jing Gu, Xinyu Shi, Junyao Wang, Xun Xu

Summary: The asymmetric market power between a firm and its partners negatively affects the firm's financial performance. Building relationships with suppliers or customers that have matched market power is the best approach. The strength of the buyer-supplier relationship amplifies the negative impact of asymmetric market power, while the level of relationship embeddedness reduces its negative effect. Moreover, firm-specific institutional, industry, and regional economic heterogeneities also influence the financial impact of asymmetric market power.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

A deep reinforcement learning based algorithm for a distributed precast concrete production scheduling

Yu Du, Jun-qing Li

Summary: This study investigates the group scheduling of a distributed flexible job shop problem using the concrete precast process. The proposed solution utilizes three coordinated double deep Q-networks (DQN) as a learn-to-improve reinforcement learning approach. The algorithm shows superiority in minimizing costs and energy consumption.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

When will an overconfident entrant in the two-sided market do more good than harm?

Xiaoyu Yan, Weihua Liu, Ou Tang, Jiahe Hou

Summary: This study analyzes the market amplification effect and the impact of entrant's overconfidence on a two-sided platform. The results show that overconfident entrants can lead to price increases and benefit both the existing firms and themselves to a certain extent.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

Deep Reinforcement Learning for One-Warehouse Multi-Retailer inventory management

Illya Kaynov, Marijn van Knippenberg, Vlado Menkovski, Albert van Breemen, Willem van Jaarsveld

Summary: The One-Warehouse Multi-Retailer (OWMR) system is a typical distribution and inventory system. Previous research has focused on heuristic reordering and allocation strategies, which are time-consuming and problem-specific. This paper proposes a Deep Reinforcement Learning (DRL) algorithm for OWMR problems, which infers a multi-discrete action distribution and improves performance with a random rationing policy.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

A robust optimization approach for inventory management with limited-time discounts and service-level requirement under demand uncertainty

Yimeng Sun, Ruozhen Qiu, Minghe Sun

Summary: This study considers a multi-period inventory management problem for a retailer offering limited-time discounts and having a joint service-level requirement under demand uncertainty. It proposes a double-layer iterative approach to solve the problem and maximize total profit while balancing the service level using a posteriori method and an affinely adjustable robust chance-constrained model.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

Integrated planning and scheduling of engineer-to-order projects using a Lamarckian Layered Genetic Algorithm

Anas Neumann, Adnene Hajji, Monia Rekik, Robert Pellerin

Summary: This paper presents a new mathematical formulation for planning and scheduling activities of Engineer-To-Order (ETO) projects, along with a new ETO strategy to reduce the impacts of design uncertainty. The study proposes a hybrid Layered Genetic Algorithm combined with an adaptive Lamarckian learning process (LLGA) and compares it with the branch-and-cut procedure of CPLEX. The results show good performance of the proposed mathematical model for small and medium-sized instances.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

Effects of stochastic and heterogeneous worker learning on the performance of a two-workstation production system

Thilini Ranasinghe, Chanaka D. Senanayake, Eric H. Grosse

Summary: Production systems are undergoing transformative changes, necessitating adaptability from human workers. This study developed an analytical model to account for stochastic processing times and learning heterogeneity, revealing insights into system performance.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

Digitalization & Covid-19: An institutional-contingency theoretic analysis of supply chain digitalization

Sunil Tiwari, Pankaj Sharma, Ashish Kumar Jha

Summary: Black Swan events such as the COVID-19 pandemic and the Suez Canal blockage have a significant impact on firms' technology adoption decisions, especially in terms of disruptions and digitalization in the supply chains. This study investigates the influence of institutional forces and environmental contingencies on supply chain digitalization from an institutional and contingency theory perspective. The findings emphasize the importance of organizational readiness and people readiness, including top management involvement and employee training, in facilitating digitalization.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

Learning efficient in-store picking strategies to reduce customer encounters in omnichannel retail

Fabio Neves-Moreira, Pedro Amorim

Summary: Omnichannel retailers are using stores as distribution centers to provide faster online order fulfillment services. However, in-store picking operations can impact the offline customer experience. To address this, we propose a Dynamic In-store Picker Routing Problem (diPRP) that minimizes customer encounters while fulfilling online orders. Our solution approach combines mathematical programming and reinforcement learning to find efficient picking policies that reduce customer encounters.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Article Engineering, Industrial

How does the stakeholder exposure of vertical integration influence environmental performance?

Richard Kraude, Ram Narasimhan

Summary: In this study, the relationship between Vertical Integration (VI) and Environmental Performance (EP) is examined, revealing that highly integrated firms produce less waste but engage in fewer environmental initiatives. These findings are crucial for understanding the impact of stakeholder exposure on organizational behavior.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)

Review Engineering, Industrial

Supply chain coopetition: A review of structures, mechanisms and dynamics

Korina Katsaliaki, Sameer Kumar, Vasilis Loulos

Summary: This research conducts a systematic literature review (SLR) and content analysis on Supply Chain Coopetition (SCC) through the PRISMA framework. It examines the theory of coopetition and organizational relationships in intra-firm and inter-firm supply chains, focusing on collaboration between rival manufacturers. The study identifies structures and mechanisms of coopetition, such as buyer-supplier coopetition, supply networks coopetition, and production and distribution/logistics coopetition. It provides a holistic approach to SCC management practices and serves as a guide for future research.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS (2024)