Complex Supply Networks Research Articles

Risk Propagation Mechanism Research Based on SITR Model of Complex Supply Networks

Supply chain risk management is an important topic in supply chain management. The authors investigate the rules and characteristics of risk propagation in complex supply networks. Aiming at the characteristics of complex supply chain with complex structure and large risk consequences, considering the different impact capabilities and different anti-risk capabilities of each enterprise node, this paper proposes a SITR (susceptible-infected-temporarily removed-completely removed) risk propagation model based on weighted networks. After the dynamic analysis of the proposed model, numerical simulation is performed, and a supply chain risk control strategy is proposed according to the simulation results. The research shows that the enterprise's complete recovery rate and risk infection rate have a greater impact on the risk propagation in the supply chain network. Enterprises should increase their awareness of risk management and control, improve their complete recovery rate, and reduce their risk of infection.

Application of Supply Chain Management at Drugs Flow in an Italian Hospital District

The globalization has pushed to change the organization of every companies, even the hospitals. The principal phenomenon in that period and fundamental today again, has been the Supply Chain Management (SCM), with which the company is no longer seen as an isolated entity but active part in an extremely complex supply network. In fact, the only way to guarantee the competitiveness of businesses in the new world economy is through the cooperation and the integration between customers and suppliers. The present work analyses the drugs flow of three Italian hospital: the Cardarelli Hospital in Campobasso, the Veneziale located in Isernia and the San Timoteo site in Termoli. The data was provided by MOLISE DATA SPA that collected the information from all ASREM with particular interest in the already mentioned hospitals. Particularly, will be highlight, using simulation model, the benefits deriving from the implementation of a new Supply Chain, creating a collaboration along the entire logistics-production chain. Thanks to a more efficient management of drugs will get a reduction of business costs and an improvement of the health services offered.

Feeding Smart Contract Legal Requirements with Semantic and Event Detection Logic Structures from Modern Service Oriented Supply Chains

This chapter investigates the broad range of real-world applications of smart contracts and relevant rules associated with them by examining the requirements coming from supply chain management and the current technical landscape. Issues such as copyright protection, product delivery etc., have been enforced through various technological means. However, more dynamic means are now needed. The modern supply chain is a complex network of suppliers and creators and it has become increasingly difficult to control and track abnormal conditions occurring during manufacturing, delivery, sale, and management. This chapter will use the AffectUs:TagItSmart semantic and event detection framework as a use case example to demonstrate how the aforementioned concepts could be implemented with relevant pseudo-code that can be used as triggering logic or core rules in potential smart contracts for supply chains. The transformation of these rules and use of semantics will provide a more effective and multi-layered end-to-end supply chain solution that can aid in the integration with a smart contract rationale.

Designing sustainable supply chains

A supply chain is a complex and dynamic supply and demand network of agents, activities, resources, technology and information involved in moving products or services from supplier to customer. The suitability of supply chains can be measured by multiple criteria, such as environmental, social, economic, and others. Finding an equilibrium between the interests of members of a sustainable supply chain is a very important problem. The main objective of the paper is to analyze the design of sustainable supply chains and to create a comprehensive model and solution methods for designing sustainable supply chains. Multiple criteria analysis and game theory is a natural choice to effectively analyze and model decision making in such multiple agent situation with multiple criteria where the outcome depends on the choice made by every agent. Multiple criteria analysis is useful for assessing sustainability of supply chains. The De Novo approach focusses on designing optimal systems. Game theory has become a useful instrument in the analysis of supply chains with multiple agents. Games are used for behavior modeling of supply chains; they focus on the allocation of resources, capacities, costs, revenues and profits. The co-opetition concept combines the advantages of both competition and cooperation into new dynamics, which can be used to not only generate more profits, but also to change the nature of the business environment for the benefit of users. Keywords: supply chain, sustainability, multiple criteria, De Novo approach, game theory, biform games.

Risk and uncertainty analysis of complex supply networks using heuristics simulation techniques

In the present globalized economy, flexibly anchors endeavor to be progressively productive and compelling by receiving systems, for example, redistributing, in the nick of time practices, and lean stock with focal point of security concerns. Be that as it may, these measures to work the flexibly chain all the more effectively frequently lead to expanded delicacy. As vulnerabilities become progressively predominant and interruptions emerge from numerous sources, flexibly chain chance administration has gotten basic. Inside the system, this paper presents an organized philosophy for hazard distinguishing proof and result investigation. Following the entrenched technique for wellbeing, flexibly chain hazard distinguishing proof might be executed through methodically producing variations in various supply network guidelines and recognizing their potential reasons, results, protects and relieving activities. Outcome investigation can be directed utilizing a powerful recreation example of the supply network activities. The utilization and advantages of the suggested method are exhibited utilizing a processing plant flexibly network case study.

Examining the Effect of Organizational Culture on the Relationship between Supply Chain Quality Management Practices Adoption and Performance of Private Hospitals in Kenya

Health care institutions have complex global supply networks and organizations that have heterogenous cultural configurations. There are a number of studies that have directly linked supply chain quality management practices in the manufacturing sector and other service firms to organizational performance. However, minimal research has been done to examine the role of corporate culture in the relationship. Moreover, there is need to empirically confirm effect of corporate culture in private hospitals in Kenya where provision of quality and affordable health care remains a challenge. Corporate culture fit between organizations serves as a thread that ties firms together. The study was conducted in order examine the effect of organizational culture on the relationship between supply chain quality management practices adoption and performance of private hospitals in Kenya. Positivist research orientation and descriptive cross-sectional research design guided the research process. Raw data was collected from management staff tasked with supply chain decision making responsibility in the hospitals. A response rate of 70.51% was realized. Normality, collinearity, homoscedasticity and autocorrelation constituted model diagnosis. Hypothesis was tested using model fit indices and significance of path coefficient. The findings indicate that corporate culture has significant positive effect on the relationship. The study concluded that right corporate culture among supply chain partners both internally and externally serves as catalyst while implementing SCQM practices to bring about improved performance. It is therefore recommended that for private hospitals to benefit more from improved performance upon adopting SCQM practices, they must ensure homogeneity of cultural configurations internally and externally. In addition, the study provides future researchers with a useful conceptual and methodological reference that can be used in the pursuit of further studies particularly in the area of both supply chain and quality management with specific reference to the corporate culture as a moderating variable.

The relationship between nested patterns and the ripple effect in complex supply networks

Supply networks (SNs) play a vital role in fuelling trade and economic growth. Due to their interconnectedness, firm-level disruptions can cause perturbations to ripple through SNs, magnifying initial impact. Contemporary research on ripple effects focussed on understanding various structural features of SNs to predict and control disruption propagation. Our work adds to this body of knowledge by analysing an intriguing topological property that emerges in SNs: ‘nestedness’, which is defined as a pattern of organisation where products that are supplied by specialist suppliers are a subset of products that are supplied by generalist suppliers. In other words, generalists are also specialists. While previous research examined the emergence of nestedness and its possible reasons, its relationship to SN resilience remained unknown. Here, we develop a cascade model by bringing together the product-supplier-buyer structure; which provides us with fine-grained information on SN dependencies. We simulate disruptions in nested and non-nested organisations of the global automotive SN, and find that nested organisations are significantly more robust to random disruptions but vulnerable to hub disruptions under cascade conditions. However, nested structures are not as resilient; as they do not benefit from a response strategy where buyers seek alternative suppliers; because alternative suppliers do not exist. On the other hand, randomly connected SNs are vulnerable to cascades but can allow network reconfiguration.

Analysis of resilience strategies and ripple effect in blockchain-coordinated supply chains: An agent-based simulation study

Resilience enables supply chains to reduce their proneness to disruptions and recover faster. Many existing strategies to strengthen the resilience of supply chains are facilitated by the use of digital technology. Blockchain, as one of the promising innovative technologies, enables a transparent, secure, and timely data exchange and automation via smart contracts. In this paper, we discuss the impact of blockchain technology on supply chain risk management and, in particular, on supply chain resilience. We identify potential risk-related blockchain application scenarios and examine their impact on the existing resilience strategies. We explore the impact of the most promising applications with respect to resilience by using an agent-based simulation model of a complex supply network affected by disruptions. The theoretical analysis reveals a promotion of supply chain resilience strategies, especially if smart contracts are used for risk-related collaboration. The simulation study indicates an increase in resilience if the underlying collaboration is based on time-efficient processes: The propagation of disruptions, the network recovery time, and total costs can be substantially reduced. However, depending on the duration of the disruption, negative effects can occur if process efficiency is insufficient. From our investigations, we derive insights for managers who are interested in practical implementation.

Information sharing in a transparent supply chain with transportation disruptions and supplier competition

Currently, highly complex supply networks are vulnerable to various kinds of disruptions, which may greatly affect the operational efficiency of supply chains. This calls for the development of management approaches to build a resilient supply chain under disruptions. In this work, we are mainly interested in transportation disruptions that affect shipments along a supply chain and study the decision problem of suppliers in regards to acquiring and sharing transportation disruption information in a competitive setting. In particular, we investigate a two-echelon supply chain consisting of one buyer and two competing suppliers where the buyer places an order for a single product with the two suppliers. During the product transportation process, a disruption may occur and damage the shipments in transit. In the face of such a transportation disruption, each supplier can either have its shipment inspected and reveal information to the buyer or continue without taking any action. We study this problem by formulating it as a non-cooperative game and derive equilibrium results for the two suppliers on whether or not to share information considering competition. We find that the timing and severity of the transportation disruption affect a supplier’s decision on whether to acquire and share private information. By adopting an incentive mechanism, the buyer can raise the probability that a supplier shares its information, which could eventually enhance the performance of the disrupted supply chain. The supplier in a stronger market position usually acts passively towards the disruption, while the competing supplier tends to use information sharing as a way to win market share from its competitor. In addition, a sensitivity analysis is conducted on some important parameters of our model to show the impact of information sharing on supply chain performance.

Food safety risk during the pandemic

Food safety risk during the pandemic

Cost-effective retrofits of power grids based on critical cascading failure scenarios identified by multi-group non-dominated sorting genetic algorithm

Power supply network is one of the most critical infrastructure networks of urban communities, but prone to the risk of cascading failures. In efforts toward disaster risk reduction of urban communities, it is thus important to identify critical cascading failure scenarios of the power supply networks and prepare effective countermeasures based on the identified scenarios. While addressing these issues, previous research efforts focused on cascading failure scenarios induced by a single component although those induced by multiple components may occur under natural or man-made disaster events. A major challenge in this problem is high computational cost required for simulating cascading failure scenarios and solving large-size optimization problems. This paper first presents an effective method to identify multi-component failure combinations entailing critical cascading failures in the network by using the overload cascading model, the multi-group non-dominated sorting genetic algorithm (MG-NSGA), and the concept of critical zone. Based on the identified critical scenarios, cost-effective retrofit combinations against the risk of cascading failures are also identified using the proposed ‘elite set updating’ method. The proposed disaster risk reduction decision-making methods are demonstrated and tested by numerical examples of two complex power supply networks.

An Optimisation Framework for Improving Supply Chain Performance: Case study of a bespoke service provider

A service supply chain can be described as a system of systems with a highly interactive and complex network of suppliers, service providers, OEMs and customers. Supply chain management could create value for bespoke service providers, customers and stakeholders cooperating through the supply chain. Bespoke service provider companies are responsible for managing their asset based on different service contracts and possibly through the end of the asset lifetime. Providing a through-life service requires tailored strategic dimensions to measure the supply chain performance. The performance can be evaluated with regards to several supply chain elements such as demand management, procurement, logistics, etc. This article takes a different angle to the current supply chain performance frameworks by discussing performance through DMAIC cycle. Considering a through-life service, this paper presents a performance optimization framework to improve the supply chain performance in terms of an asset or component availability and cost of service. Moreover, an exhaustive list of KPIs to evaluate the supply chain performance are identified. A case study of fleet management for a bespoke service provider is considered to test the validity of the framework. The DMAIC technique has demonstrated to be an effective method to improve supply chain strategies and performance.

Strategies for complex supply networks: findings from the offshore wind power industry

Purpose The purpose of this paper is to explore the challenges facing companies that operate within complex supply networks and the strategies they use to manage such complex supply networks. Design/methodology/approach The paper uses mixed methods by combining in-depth case studies with an executive forum with those of senior industry stakeholders. The two in-depth supply network case studies were carried out through multiple interviews with focal (or ‘developer’) firms that supply energy through offshore wind power and key suppliers such as wind turbine manufacturers. Findings The findings show the challenges the offshore wind power industry faces because of complex supply networks, including attempts by several actors to exert their power and control. Despite the networks facing similar complexities and challenges, two distinctly different strategies for orchestrating and governing supply networks are uncovered: one strategy resembles an interventionist strategy, while the other is based on delegation. Research limitations/implications Based on the findings, the authors identify and develop a classification of complex supply network divided into intervention and delegation strategies, thereby adding to existing research on ways to manage complex supply networks. Practical implications The authors identify strategies for focal firms for managing in complex supply networks, based on control and intervention or coordination and delegation. Originality/value Existing research on supply network strategies has largely focused on non-complex contexts. This paper draws from complex adaptive systems and organisational behaviour perspectives to contribute original insights into supply network strategies in complex supply networks.

The Illicit Supply of New Psychoactive Substances Within and From China: A Descriptive Analysis.

Although China has played a significant role in the emergence and expansion of new psychoactive substances (NPS) worldwide, little research has specifically focused on the illicit supply of NPS within China and smuggling from China. In this study, data were extracted from sentencing files obtained from closed criminal cases to develop an objective understanding of the NPS supply chain in China. The sample consisted of 341 major cases concerning the illicit supply of three groups of NPS (ketamine, synthetic cathinone, and fentanyl) and five categories of offense, including manufacturing, distributing, retailing, transporting, and manufacturing-retailing. Significant differences between these categories of offense in terms of offenders' profiles, behaviors, and supply patterns were observed. Our results suggest the existence of a dynamic and complex supply network both in China and in terms of smuggling routes from China.

Sustainable supply network management

PurposeThe purpose of this paper is to scrutinise how the sustainable supply chain management (SSCM) literature has discussed knowledge dynamics across the extended supply network, particularly in the contemporary context of fragmented, globally dispersed supply networks.Design/methodology/approachA systematic approach to reviewing the literature is applied, covering 20 years, starting with 267 references, and narrowing down to 88 articles specifically addressing knowledge diffusion processes across the extended supply network.FindingsThis study shows that vertical ties limited to direct suppliers or third-party monitoring of global suppliers are both insufficient. Lack of co-opetition is an impediment to knowledge diffusion. And the debate of whether or not global dispersion is an impediment to knowledge diffusion seems inconclusive. More importantly, there is a lack of network-level studies mapping the diversity of actors in supply networks.Research limitations/implicationsFirst, future SSCM research should shift from an operational focus to strategic knowledge diffusion. Second, the scope of SSCM should expand from linear buyer–supplier relationships to multi-tier and multilateral studies. Special focus should be placed on the literature on social network to support processes that look at the drivers of effective large-scale, global diffusion of sustainability.Originality/valueThis review contends that it is paramount to set a new research direction captured in a new definition of “sustainable supply network management”. Future research should overcome the barriers of data collection at the network level in order to contribute to the field’s current challenges, which clearly lies in globally dispersed and complex supply network, not dyads or linear chains.

The Illicit Distribution of Precursor Chemicals in China: A Qualitative and Quantitative Analysis

China has been marked as a source country from which large volumes of precursor chemicals are shipped to foreign drug markets for synthetic drug production. However, the basic patterns of illicit distribution remain unclear. Data from closed criminal cases were extracted from legal files to develop an objective understanding of illicit distribution patterns in China. The sample consisted of 534 illicit supply cases involving 1481 individuals, three groups of precursor chemicals and 102 chemical manufacturing companies. The offenders could be categorised as lower-class offenders, occupational offenders and corporate offenders based on their profiles and criminal behaviours. Significant differences between the three groups of offenders and their specific patterns of chemical supply suggest a diverse, dynamic and complex nationwide supply network. To better understand this phenomenon in China’s rapidly transitioning society, we provide a description of cultural, legal and political backgrounds, which may provide some explanations at the macro level.

Implementing Environmental and Social Responsibility Programs in Supply Networks through Multi-Unit Bilateral Negotiation

Involving suppliers deep in the supply chain is critical for the success of environmental and social responsibility (ESR) initiatives. Administering ESR programs throughout a complex supply network, however, is challenging. In this paper, we apply a multi-unit bilateral bargaining framework to coordinate ESR investments in a general supply network and analyze to what extent an ESR initiator should directly engage the higher-tier suppliers, as opposed to delegating that responsibility to the first-tier suppliers. Our bargaining framework not only generalizes the conventional Shapley value approach by allowing the flexibility of modeling imbalanced power distribution among the firms, but also provides an explicit way of implementing the resulting gain sharing among the firms through negotiated contract terms. We show that the eventual structure of ESR negotiation relationships can be derived by finding a shortest path tree in the supply network with the arc cost defined as the logarithm of the negotiating parties' relative bargaining power. These developments allow us to analyze ESR implementation in generally extended supply networks. We find that the ESR initiator tends to delegate ESR negotiations to a supplier that is strong in negotiations with higher-tier suppliers. When the supply network is complex (i.e., wide and deep), directly engaging all suppliers can lead to a larger gain by the initiator than fully delegating the negotiations with higher-tier suppliers to the first-tier ones. However, as the network gets increasingly complex, the ESR initiator tends to directly engage a reduced percentage of higher-tier suppliers. We further extend our analysis to situations where the ESR relationships are sequentially formed in a decentralized manner, where the benefit of ESR depends on the collective choice of the firms' investment levels, where multiple ESR programs are implemented in the network, and where ESR investments depend on the negotiation relationships.

Risk Budget Planning through Assessing the Criticality and Vulnerability of Supply Network Entities Facing Disruption Risks

Material flow disruptions can cause serious damage in supply networks. Quantitative models which support the decision process in supply chain risk management need to be designed to support practitioners. This approach combines Monte-Carlo Simulation with Agent-Based Modeling to quantify the degree of vulnerability and criticality of entities in a real, complex supply network. This quantification can help to form a joint budget for risk mitigation in which the degree of vulnerability determines the investment contribution. The quantification of criticality helps to identify the locations which are responsible for disproportionate damages in case of a disruption. The simulation of the modeled network shows that the most vulnerable entities in the system are not necessarily the most critical and that these entities must carry the financial burden that have been triggered by the disruption of other entities. The results emphasize that a joint and holistic approach is necessary to cope with the propagative features of disruptions.

The Environmental Impact Reduction obtained by implementing an Energy Management System. The advantages of using Energy Management and Energy Savings Standards when performing Industrial Energy Audits

Energy audits are used world-wide for developing energy efficiency projects. Industrial consumers have complex energy supply, generation and distribution networks and a variety of energy use installations. Romanian industrial companies became more interested in the last years in implementing Energy Management Systems in accordance with ISO 50001 standard. This paper presents a comparison of using the current way of developing energy audits and the concepts provided by the ISO group of standards, by quantifying the environmental impact reduction generated by each methodology. Authors pointed out that current legislation does not fully match the rigors of the ISO 50001 group of standards when evaluating the Energy Baseline (EB), the Energy Performance Indicators (EPI) or the Energy Performance Improvement Actions (EPIA), thus leading to a lower global energy efficiency improvement in the hypothesis of implementing all the recommended EPIAs [1]. Identifying and developing energy efficiency measures following the recommendations of the energy management and energy savings group of standards may be more consistent and less risky for the industrial company, which in turn can lead to an overall improvement of the Carbon Footprint [2].

Individual-level evolutions manifest population-level scaling in complex supply networks

Scaling in complex supply networks is a population-level optimization phenomenon thought to arise from the evolutions of the underlying individual networks, but the evolution-scaling connection has not been empirically demonstrated. Here, using individually resolved, temporally serial, and population-scope datasets from public water supply networks, we empirically demonstrate this connection. On the log-log plot, structural properties of individual supply networks trace out evolutionary paths describable as linear projectiles, each characterized by a slope reflecting optimized physical economies of scale and an intercept reflecting morphological adaptation to settlement contexts. The universality in scaling slope coexists with the variability in scaling intercept, so that networks of diverse morphologies advance in time along a "common evolutionary track". This cross-level observation establishes that individual-level dynamic evolutions cumulatively manifest population-level optimal scaling in complex water supply networks.