Cooperative Supply Research Articles

Cooperative Pricing of Apparel Supply Chain Based on API

The purpose of this paper is to construct a multi-objective optimization model for cooperative pricing in the management of apparel supply chain. Firstly, by using Apparel Popularity Index (API) model, a kind of pricing model for supply chain has been built. Then, by introducing cooperation and other constraint conditions, a kind of cooperative pricing model was constructed. This model is a kind of Stackelberg game. The manufacturer and the retailer obtained their excess profits through the game. Lastly, this paper gave a numerical example which demonstrated that the excess profit of the cooperative supply chain was constant, and when the constraint conditions changed, the excess profit space would change at the meantime. This research result can help partners on apparel supply chain to practice Quick Response strategy.

Cost and inventory benefits of cooperation in multi-period and multi-product supply

Cooperation among supply chain members, both horizontally and vertically, has become the norm in practice. Unlike traditional supply chains with members competing to reduce their individual costs, the overall cost of the entire supply chain is minimized in a cooperative supply chain. The savings from cooperation may be shared among the members, while a lower average cost and a lower cost variation is materialized for individual members. The problem is formulated as an integrated flow network and expanded to multi-period and multi-product, with the possibility of holding inventories in a multi-stage, multi-member cooperative supply chain. Simulation results indicate an approximately 26% reduction in total costs of the supply chain, utilizing this formulation over competitive setups. In a multi-period chain, members may hold an inventory or use an inventory policy. As the holding costs increase, the problem decomposes into a single period (just-in-time) again. The disturbing bullwhip effect disappears in cooperative supply chains.

AGRICULTURAL COOPERATIVE SUPPLY CHAIN MANAGEMENT IN MALAYSIA

In the National Cooperative Policy 2002-2010, the government of Malaysia has targeted the cooperative movement as the fourth generator of economic growth after services, manufacturing and agriculture. Cooperatives are expected to contribute 5% of the GDP in 2013 and 10% by 2020. However, in 2008, cooperatives contributed just 1% of the GDP. The majority of cooperatives are small and their turnover is less than RM200,000 per annum. One of the possible reasons for their small turnover is their inability to manage their supply chains. This study will analyze the elements of agri¬cultural cooperative supply chain management and its influence on performance. The study will explore the influence of individuals, suppliers, quality, logistics and govern¬ance on supply chain performance. Performance is evaluated using four measures: customer satisfaction, board satisfaction, members’ satisfaction and financial per¬formance. A conceptual model is examined with data collected from 252 agricultural cooperatives in Malaysia. The results indicate that quality, technology and logistics have a positive significant impact on customer satisfaction, board satisfaction and cooperative members’ satisfaction and financial performance.

Cooperative Pricing Decision Model in Supply Chain

This paper considers a retailer who wishes to procure a kind of product to meet customer’s demand and shows that the supplier and the retailer’s cooperetive pricing decision . We gives the prices of Pareto optimal equlibrium and compares the prices with that of cooperative supply chain and find that noncooperative system profit is less than cooperative system profit. Furthermore, we shows that on some assumption, Pareto optimal price policy is equivalent to jointly decision policy, i.e., Pareto optimal price policy can reach the whole system maximum profit, and the numerical example indicates that with the retailer operating cost increasing, the total profit of supply chain is decreasing.

Environmental Supply Chain Cooperation and Its Effect on the Circular Economy Practice-Performance Relationship Among Chinese Manufacturers

Due to resource scarcity and environmental degradation, a new development concept emphasizing environmental concerns, called the circular economy (CE), has been enacted in legislation in China. This environmental management concept can be implemented at three levels, namely, region, industrial zone, and individual enterprise, with the objective of boosting economic development while lessening environmental and resource challenges. Environmental supply chain cooperation (ESCC), an approach that utilizes customer and supplier cooperation in environmental management, has been initiated among Chinese enterprises. Using survey data collected from 396 Chinese manufacturers, we examine the role of ESCC practices in influencing the relationship between implementing CE practices and the achievement of performance outcomes by testing the moderation and mediation effects of ESCC practices on the CE practice-performance relationship through hierarchical regression analysis. Our data analyses indicate that ESCC practices are useful by moderation and, in some cases, essential by mediation, for Chinese manufacturers seeking to realize the performance targets desired in CE practices. The results highlight the need for Chinese manufacturers to improve supply chain coordination in their implementation of CE. On the policy side, our research findings suggest that ESCC practices are beneficial and, in some cases, necessary for the development of CE in China.

Improving supplier's situation through supplier cooperation: The case of Xintang jeans town

Abstract Inferior labor conditions in developing countries have raised Western customers’ awareness of sweatshops. Developing countries’ suppliers are facing growing pressure from Western clients on ethical issues associated with the production of low-cost goods at the expense of worker health, safety, and welfare. Inferior working conditions not only adversely affect worker well-being, but also negatively impact performance and productivity, which is detrimental to the entire supply chain in the long-run. In this paper, we consider the case of Xintang International Jeans and Textile City, the largest manufacturing base of jeans in China, which sought to shed its sweatshop image. Working closely with the administration of this manufacturing base, we applied operations research techniques to analyze local suppliers’ possible operations strategies based on considerations of price and delivery guarantees, two critical dimensions of competition in the apparel and textile industry. Our analysis highlighted the fact that local suppliers’ cooperation may be an effective way for improving labor conditions. Our work has implications for societal improvement in developing countries through better labor conditions and increased cooperation while maintaining a healthy level of competition.

Information Flow Management of Vendor-Managed Inventory System in Automobile Parts Inbound Logistics Based on Internet of Things

Reducing inventory levels is a major supply chain management challenge in automobile industries. With the development of information technology new cooperative supply chain contracts emerge such as Vendor-Managed Inventory (VMI). This research aims to look at the literature of information management of VMI and the Internet of Things, then analyzes information flow model of VMI system. The paper analyzes information flow management of VMI system in automobile parts inbound logistics based on the environment of Internet of Things.

Simultaneous configuration of platform products and manufacturing supply chains: comparative investigation into impacts of different supply chain coordination schemes

It is widely acknowledged that effective supply chain management calls for coordination among the various chain members. This article studies the impacts of different supply chain coordination schemes on the optimal decisions of simultaneous configuration of platform products and their supply chain, as well as the supply chain performance. Three possible coordination scenarios of a supply chain consisting of one manufacturer and multiple suppliers are examined. In scenario non-interactive supplier, the manufacturer optimises its own costs and imposes the resulting policy to the suppliers without any question. In scenario non-cooperative supplier, each level of the chain is optimising a local pay-off function in a decentralised way. In the third scenario cooperative supplier, both levels of the chain are assumed to cooperate in the sense that their common objective is to minimise the overall operational cost. This article addresses the above scenarios through a comprehensive industrial case. Experimental results show that the manufacturer would prefer a cooperative relationship with its suppliers. With a higher level of supply chain integration, the manufacturer could serve the market with higher product variety. Suppliers with higher flexibility would prefer to establish a more cooperative relationship with the manufacturer. The supply chain system becomes more effective under a higher level of supply chain integration.

An Analysis of the Co-operative Supply Chain's EPQ Model under Trade Credit

An EPQ model for the co-operative supply chain under the conditions of permissible delay in payments is developed in this work, in order to compare the co-operative supply chain with noncooperative supply chain; we also propose another EPQ model for the non-cooperative supply chain under the same conditions. In addition, we provide an efficient algorithm to obtain the optimal solution, and the results of numerical examples indicate that the cooperative supply chain will contribute to improving its EPQ and profit

The Virtual Cooperation Platform in Enterprise and Supplier Cooperation Models

Abstract This study examines the use of the virtual enterprise network supplier supply-chain model of business behavior in creating synergies of cooperation. To explore virtual network behavior, it evaluates 60 samples, taken from of a few supply chains, and 17 items meeting certain behavioral criteria. Such an analysis may help to reduce costs and processing time effectively, as well as promote effective communication. Furthermore, the study of behavior in this electronic setting is a reliable and useful assessment method.

Experience and Learning in Wine Supply Chain Negotiations

This paper examines the link between experience in negotiations and the necessary governance mechanisms to prevent supply chain opportunism. The analysis comes from data generated from an experiment based on the French champagne industry. Results show that dyads where both parties have prior negotiation experience better align with a cooperative supply chain governance context, creating higher individual and joint outcomes. Although dyads with asymmetric negotiation experience achieved more win-win outcomes than inexperienced dyads, their results still tended to be driven by the less experienced party.

Game-theoretic approach to simultaneous configuration of platform products and supply chains with one manufacturing firm and multiple cooperative suppliers

This paper deals with simultaneous configuration of platform products and supply chains. The supply chain consists of one manufacturer and multiple cooperative suppliers. A common platform is shared for developing/configuring the product family with variant modules which are substitutable in the sense that high-performance module options can replace low-performance ones. As the customer in the supply chain, the manufacturer takes its leading role by making the first move to produce decisions on platform products configuration (PPC) and supplier selection. The manufacturer and concerned suppliers then move cooperatively to make their ordering and pricing decisions with a common objective to maximize their joint payoffs. We derive the optimal solution ranges for this two-moves dynamic game according to Nash's bargaining model. An iterative algorithm is developed to find the subgame perfect equilibrium. A numerical study is conducted through a series of simulation experiments to illustrate how useful insights about the mutual impacts between the PPC and SCC (supply chain configuration) decisions can be obtained from the proposed game models and solution procedure. The results are further compared with those obtained in a previous study with non-cooperative suppliers. The comparative study allows us to appreciate managerial measures under different supply chain coordination schemes. It is found that a supply chain with cooperative suppliers is more effective by using the lot-for-lot policy and more competitive by accommodating higher product variety.

The development of a conceptual framework for Just-In-Time implementation in SMEs

Just-In-Time (JIT) has shown much promise in many industries but particularly in large organisations. This article analyses which aspects of the JIT philosophy are also applicable to small and medium sized enterprises (SMEs). Based on a literature review and with a particular focus on four data sources, challenges to JIT implementation in SMEs are analysed. A conceptual framework and a set of hypotheses are developed which describe the barriers to, and enablers of, JIT implementation in SMEs. Barriers include: a lack of supplier cooperation and partnerships; an inability to develop the necessary technologies and methodologies to reduce or eliminate waste; difficulties in managing demand fluctuations; a lack of capital to acquire advanced technologies; quality control problems; and, inadequate employee training and development. Enablers include the ability to: empower employees; reduce JIT implementation time; overcome employee resistance to change; and, receive various forms of governmental support. The hypotheses could form the basis of a set of measures that allow SMEs to decide whether JIT is right for them.

Optimal Solutions for a Multi-Product, Multi-Echelon Production and Replenishment System

The effective coordination is a key element in the success of many cooperative supply chains. All production, distribution and supply must be adequately synchronized in order to satisfy the customer needs and at the same time optimizing the operational costs. This article presents a multi-product, multi-echelon inventory system which comprises one manufacturer, a number of distribution centers and a number of retailers which are dependent of such distribution centers. The coordination and collaboration is achieved through a carefully designed replenishment policy. The near-optimal order quantities for each of the supply chain agents are calculated with a mathematical model in which the integrality constraints are relaxed. A number of instances were generated and tested. The results show the validity of the proposed approach.

LINKING EXCHANGE GOVERNANCE WITH SUPPLIER COOPERATION AND COMMITMENT: A CASE OF CONTAINER TERMINAL OPERATIONS

Studying the suppliers of a global buyer, we find that relationship stability is positively associated with the use of explicit and implicit contracts in their buyer‐supplier relationship (BSR). We also find positive association of implicit contract with supplier cooperation and commitment as well as the influence of business volume in the BSR. Grounded in transaction cost economics and social exchange theory, these findings highlight the need to develop mutual understanding, beyond designing specific contracts, for developing cooperative and committed suppliers in a BSR.

Subcontracting product development: creating competitiveness through networking

Product development has become increasingly complex and resource-consuming. Consequently, internal development capabilities can be insufficient for maintaining a firm's competitive position. External cooperation and networking with other firms have been suggested as means for accessing necessary complementary knowledge or resources. In this paper, cooperation is studied as the key to improving competitiveness, especially in the case of small firms. The empirical part describes supplier cooperation in four case companies. The focus is on software product development cooperation with foreign suppliers. The paper contributes to a deeper understanding of organising product development across a network of suppliers.

A DYNAMIC GAME OF OPERATIONS AND MARKETING MANAGEMENT IN A SUPPLY CHAIN

The aim of the paper is to study some important differences between (classical) non-cooperative and (modern) cooperative supply chain management. For this purpose, the paper develops a differential game model involving operations and marketing activities that are performed by a manufacturer and a retailer in a simple two-member supply chain. We consider a particular single brand of the manufacturer. The manufacturer decides on production volume, production process improvement and national advertising efforts, while the retailer decides her purchase volume by the manufacturer and her pricing policy toward the final consumers. A revenue sharing contract is employed in the non-cooperative setting. Among the issues addressed on the manufacturer side are the trade-off between production and process improvement activities, the path of inventory over time, and the trade-off between attracting new customers and improving the loyalty of current customers. For the retailer we study the inventory and price evolution over time.

Developing new products in a network with efficiency and innovation

When managing a new product development (NPD) problem, a firm needs to consider the cooperation with its strategic partners in a network because surviving independently in the industry is almost impossible. However, due to the large variances among partners in terms of leadership, management, IT infrastructure and organizational cultures, it may lead to poor communication and cooperation and slow responses. A severe impact on the process and outcome of NPD may result. To facilitate buyer–supplier cooperation, suitable knowledge management and product development process management need to be adopted to match the characteristics of the selected NPD mix. In this paper, a supermatrix analytic network process (ANP) model with sensitivity analysis is first developed to select the most appropriate NPD mix. A balanced scorecard (BSC) using ANP with sensitivity analysis is used next to demonstrate the effectiveness of the proposed model in the execution of NPD process.

Buyer–supplier cooperation and negotiation support with random yield consideration

Random yield is still prevailing in several industries despite quality improvement efforts. In this case, the supply chain partners jointly must find the best way to cope with yield uncertainty. We focus on the inventory-related costs that can be influenced by adjusting the ordering, setup, and delivery policy to the random yield. The yield model of having a random proportion of defective items is assumed with known mean and variance. Two alternative scenarios are examined: when the buyer or when the supplier makes 100% inspection. We provide analytic tools and approximations to optimize the decisions. Our main contribution is to help in the cooperation and negotiation process by showing under which circumstances have the yield characteristics important effects and when are they negligible. We show that not the average yield but the yield uncertainty plays the critical role mainly in providing an appropriate service level but also in finding the optimal shipment and setup policy.

The enhancement of solving the distributed constraint satisfaction problem for cooperative supply chains using multi-agent systems

Facing global and dynamic competition, companies need to coordinate with supply chain partners to effectively fulfill customer orders. Considering the risk of exposing trade secrets and the cost of gathering information, the centralized constraint optimization mechanism is infeasible when it comes to handling distributed scheduling problems in a real-world environment. This paper proposes an agent-based distributed coordination mechanism that integrates negotiation techniques with genetic algorithm to plan quasi-optimal order fulfillment schedules to meet customers' demands. In this study, to evaluate the performance and feasibility of our proposed mechanism, experiments are conducted using a mold manufacturing supply chain as an example. The experimental results reveal that the proposed distributed coordination mechanism is a feasible approach to resolving the order fulfillment conflicts in a supply chain.