Supply Chain Coordination Research Articles

Literature Review on Decision-Making and Coordination of Closed-loop Supply Chain

Effective treatment and recycling of waste products in the operation of closed-loop supply chain can not only save resources and energy, reduce environmental pollution, but also reduce costs and increase profits for enterprises. All participants in closed-loop supply chain often make decisions with the goal of maximizing overall benefits. This paper aims at summarizing the research progress of decision-making and coordination of closed-loop supply chain, summarizing the factors that affect the decision-making of closed-loop supply chain from the non-economic behavior of decision-makers, green investment, uncertainty, government and policy, and summarizing the commonly used coordination mechanism of closed-loop supply chain, so as to explore the future research direction.

Sustainable automotive supply chain in the presence of disruption and government intervention

This paper aims to develop and simulate a green automotive supply chain model (ASC) consisting of one supplier, one manufacturer, and two types of products (green and non-green) under disruption risks (DRs). The greening effort (i.e., electric vehicle production) is considered for both the supplier and the manufacturer. In our modeling, we include the local government intervention (GI) and their incentivization of manufacturers to produce greener products. Moreover, the effectiveness of centralized versus decentralized supply chain integration strategies in coping with disruption consequences was explored. A mathematical pricing model based on game theory is designed to maximize the total profit for both integrated and decentralized systems. The model examines the effects of the greening effort on the supply chain (SC) members with eight disruption scenarios, including Extra Production and Surplus Inventory. Simulating numerical examples reveals that the Extra Production type of disruption increase the profitability in different scenarios. Conversely, the Surplus Inventory disruption reduces profitability. Moreover, a channel coordination through cost sharing contract in the presence of disruption sharing was developed. GI and the cost-sharing contract increase the SC profit. The managerial implications of our findings are also discussed in this paper.

Designing Efficient and Equitable Freight Services Markets for Sustainable Economic Performance

Despite the indispensability of freight trucking services and truckers’ role as critical stakeholders in supply chains, relatively little attention has been paid to analyzing small independent truckers’ roles. Shippers often prefer working with larger trucking companies to the detriment of smaller independent truckers, who must grapple with an inherently disadvantageous job market. Furthermore, in the presence of uncertainty or peak demand periods, trucker shortages can pose significant economic challenges for shippers and downstream customers. In this paper, we propose an analytical framework to address these challenges in efforts to enhance the sustainability of the freight service industry. We formulate and solve a weighted bi-objective optimization model that simultaneously maximizes the total profits of both shippers and truckers to design a sustainable freight services market. Further, we leverage Monte Carlo simulation trials to examine how all players in this market can achieve a better solution under uncertainty. Ultimately, after evaluating multiple scenarios, we find that shippers and truckers yield the highest economic benefits under a balanced design that leverages principles of supply chain coordination, while satisfying all demand from shippers. This framework can serve as a decision support tool for policymakers who aim to ensure all stakeholders in the market can become and remain profitable. Based on our findings, this study suggests practical implications on how to consider humanitarian policies aimed at promoting equity for truckers and ensuring the timely shipment of essential products for both shippers and truckers.

A Supply Chain Coordination Optimization Model with Revenue Sharing and Carbon Awareness

The present study explores the impact of carbon emissions on supply chain coordination, where the supply chain entities are a retailer and a distributor. The study also involves two types of systems, namely centralized and decentralized. A centralized system computes the profit of the entire supply chain, including the profit of a retailer and a distributor, using the traditional optimization technique. In contrast, a decentralized system computes the profit of both a retailer and a distributor independently and uses the Stackelberg sequence for profit optimization. According to the Stackelberg sequence, one entity is considered a leader and the other a follower. When the profit in both systems is compared, it is found to be higher in the centralized system. So, to coordinate the system, a revenue-sharing contract is applied to coordinate the supply chain under a stock–time–price-sensitive demand rate. Finally, a carbon emission cost is implemented to the profits of both systems to make the model more sustainable. The main objective of the research is to optimize the profit of the supply chain by considering the concept of revenue-sharing contracts and making the system more sustainable through the implementation of carbon emission cost. The overall study concludes that the revenue-sharing fraction ‘δ’ helps in coordinating the system and 0.4 is the value of the revenue-sharing fraction ‘δ’ that perfectly coordinates the system. Due to this coordination, both the parties will gain profit, i.e., retailer and distributor, and this whole phenomenon increases the profit of the supply chain. A sensitivity analysis is also performed to check the stability of the model, and the model is found to be quite stable. A numerical example is illustrated, providing the result of the model.

Recycling, pricing decisions, and coordination in the dual-channel closed-loop supply chain: A dynamic perspective

As the “Internet+” mode promotes transforming and upgrading the traditional recycling industry, dual-channel recycling has become the focus of commercial activities. Based on such background, this paper constructs the differential game models of the dual-channel closed-loop supply chain (DCCLSC) system in the complete non-cooperation (DN), incomplete cooperation (D), and complete cooperation (C) scenarios by applying game theory. The novelty is that recycling and pricing decision problems are investigated for the DCCLSC system from a dynamic perspective. A cost sharing-transfer payment contract is designed to realize the perfect coordination of the DCCLSC system. Moreover, the extended models with government intervention and inventory management are proposed. Finally, the numerical examples are used to verify the feasibility and validity of the addressed results. The results show that 1) online retail price is higher than offline retail price when μ>μN; 2) The retail price in the DN model is always lower than the D model, and their comparative relationship with the C model is closely related to the ratio of recoverability rate; 3) The recoverability rate and the profit of DCCLSC system are highest in the C model; 4) Competition and government intervention can create a win-win situation with improving environmental and economic benefits.

Take JD as an Example to Discuss the Impact of Digital Intelligence on Supply Chain Risk Management

The complex and changeable global economic situation forces supply chain enterprises to strengthen risk management to deal with all kinds of emergencies. In the existing research, the impact of supply chain risk is still lack of in-depth exploration. From the perspective of intelligent transformation of enterprises, this paper takes JD as an example to analyze the problems existing in the risk management of the three supply chains of commodities, logistics, and finance, and then puts forward the corresponding solutions to the different problems in the three supply chains. This paper analyzes that the transformation of enterprise number intelligence can improve the efficiency of supply chain coordination and improve its risk management ability by establishing a shared information platform, but the imperfection of technology and the immaturity of technology application will also bring more unprecedented risks to enterprises.

Coordination for a Closed-loop Supply Chain with Recycling Platform Considering Dynamic Setting

Coordination for a Closed-loop Supply Chain with Recycling Platform Considering Dynamic Setting

The Impact of Business Continuity on Supply Chain Practices and Resilience Due to COVID-19

Background: Business continuity entails the potential negative consequences of uncertainty on a firm’s ability to achieve strategic objectives. The COVID-19 pandemic significantly impacted business continuity due to lockdowns, travel restrictions, and social distancing measures. Consequently, firms adopted specific supply chain (SC) practices to effectively navigate this global crisis. Methods: This research adopted a stochastic approach based on Bayesian Networks to evaluate the implications of business continuity on firms’ decisions to embrace SC practices, focusing on omnichannel strategies, SC coordination, and technologies such as artificial intelligence systems, big data and machine learning, and mobile applications. Results: Our findings revealed that firms facing disruption in a single performance area can apply specific strategies to maintain resilience. However, multiple areas of underperformance necessitate a varied approach. Conclusions: According to our empirical analysis, omnichannel strategies are critical when disruptions simultaneously impact quality, inventory, sales, and ROI, particularly during major disruptions such as the COVID-19 pandemic. AI and big data become vital when multiple risks coalesce, enhancing areas such as customer service and supply chain visibility. Moreover, supply chain coordination and mobile app adoption are effective against individual performance risks, proving crucial in mitigating disruption impacts across various business aspects. These findings help policy-makers and business owners to have a better understanding of how business continuity based on performance resistance to disruptions pushes companies to adopt different practices including new technologies and supply chain coordination. Accordingly, they can use the outputs of this study to devise strategies for improving resilience considering their supply chain vulnerabilities.

Strategies of NHX antiporters to deal with salt stress

The adverse effects of salinity on plant growth are generally associated with the low osmotic potential of the soil solution and the high level of sodium toxicity (and chlorine toxicity for some species) which cause multiple perturbations on plant metabolism, growth, and development at the molecular, biochemical and physiological levels. The vacuolar NHX and plasma membrane SOS antiporters mediate cation and proton exchange across the tonoplast and plasma membrane, respectively. The SOS transporters allow the excretion of Na+ from the cytoplasm to the outside environment and alternatively, NHXs provide Na+ transport from the cytoplasm to the vacuole. Cellular ion homeostasis is an essential phenomenon for all organisms. Most cells manage to maintain a high level of potassium and a low level of sodium in the cytoplasm through the coordination and regulation of different transporters and channels instead of the NHX-type vacuolar antiport. In this article, some important mechanisms in the regulation of ionic ions such as Na+. will be discussed.

STUDY OF CHANNEL OPTIMIZATION OF G TYRE COMPANY IN THE NEW RETAIL FORMAT

G Tire Company, a global leader in tire manufacturing, rapidly expanded its offline retail network upon entering the Chinese market. However, traditional offline retail faces challenges with the emergence of “new retail,” which integrates the internet with physical stores. Rising “new retail” firms like TuHu have impacted G Tire's traditional channels, prompting a need for a “new retail” transformation.
 This paper reviews literature on “new retail” and the tire industry, analyzing the industry’s development and transformation. Based on research and distribution channel theory, a four-element model for “new retail” channel analysis is proposed. The surveys and analysis revealed issues such as e-commerce impact, dense urban channels, and a lack of brand diversity due to data shortages. Improvement strategies include channel coordination, product enhancement, traditional channel optimization, and management upgrading.

Optimal production decision and supply chain coordination under different capital conditions

Optimal production decision and supply chain coordination under different capital conditions

Low-Carbon supply chain optimisation with carbon emission reduction level and warranty period: nash bargaining fairness concern

This study incorporates fairness concern in a low-carbon supply chain coordination mechanism where a single manufacturer sells its product to consumers through a single retailer. We develop four different scenarios of the Stackelberg master-slave game utility model—both members are neutral (NN), the manufacturer (FN) or retailer (NF) has fairness concern, and both are not neutral (FF), where the Nash bargaining fairness reference is leveraged to capture the impact of fairness preference on low-carbon supply chain optimisation decision-making profits, level of carbon emission reduction, warranty period, and revenue-sharing. Finally, numerical studies are conducted to quantify the impact of the Nash bargaining fairness concern. Research shows that: (1) fairness concern made it worse for the retailer but beneficial for the manufacturer and the system. (2) fairness concern causes a reduction in the level of carbon emission reduction and warranty period. However, the reduction of carbon emission reduction trading price and a certain range of revenue sharing effectively reduces the impact of fairness concern on members. (3) The revenue-sharing contract effectively reduces the negative impacts of fairness concern on supply chain members. The paper is a guide for enterprises development and cooperation but also provides empirical evidence for the government.

Research on Cost Sharing and Coordination of Low Carbon Supply Chain in the Context of Carbon Neutrality Strategy

For carbon emissions under the limit of supply chain cost sharing problem, based on the Shared contract perspective starkerberg game model includes the manufacturers and retailers, analyzes the cost sharing ratio, carbon trading price and unit carbon tax emissions on the supply chain, and the optimal strategy combination and carbon reduction cost allocation ratio is studied. The results show that the one-way cost sharing model is beneficial to the reduction of low carbon supply chain, while the two-way cost sharing model has a positive effect on the reduction of supply chain within the small allocation ratio. In addition, the sharing proportion of manufacturers is within a certain range, and the two-way emission reduction mode is the optimal choice for the supply chain. Meanwhile, the sharing proportion will affect the choice between decentralized and centralized decisions. In addition, the numerical analysis shows that the carbon emission reduction levels increase with the increase of carbon trading prices. The results have good reference significance for the carbon emission reduction decision and carbon reduction cost sharing contract among members of the low-carbon supply chain.

Newsvendor model for a dyadic supply chain with push-pull strategy under shareholding and risk aversion

This paper investigates the optimization and coordination problem in the framework of classic push and pull newsvendor models under shareholding and CVaR criterion. A decentralized supply chain consisting of upstream supplier and the downstream manufacturer is considered. Firstly, taking the risk aversion into account, the optimal decision-makings are investigated under shareholding in push, pull supply chain respectively. By comparison it is found that the optimal order or production quantity depends on the degree of member’s risk aversion and shareholding ratio. Furthermore, the combined contracts are designed to coordinate the supply chain and optimal coordination parameters are obtained. Besides, the impacts of risk-averse preference and the shareholding fraction on supply chain performance are also investigated. The results indicate that in push supply chain the optimal ordering increases in the risk-averse parameter of the downstream manufacturer and the percentage of shares held by the upstream supplier in the downstream manufacturer. However, the optimal wholesale price makes the opposite change. In pull supply chain, the optimal production quantity is independent of the shareholding fraction and decreases with regards to the supplier’s risk aversion. Lastly, some numerical examples are given to illustrate the theoretical results and some suggestions to supply chain management are also provided.

Study on Data-driven Digital New Retail Supply Chain Innovation

The innovative development of new retail supply chain driven by data is of great significance to enterprises, which can improve operational efficiency, improve service quality, optimize cost control, strengthen supply chain cooperation and coordination, and promote business model innovation, so that enterprises can maintain competitive advantage in the fierce market competition, to achieve sustainable development. Therefore, enterprises also actively analyze the challenges and opportunities faced by the development of digital new retail supply chain driven by data, and actively take measures to explore innovative strategies for the development of digital new retail supply chain based on their own conditions. Such as strengthening data quality management, strengthening data security protection, improving technical infrastructure, changing organization, cultivate talents, and promoting cooperation among supply chain participants to facilitate the smooth development of the new digital retail supply chain.

Research on the improvement mechanism of value-based healthcare objectives in pharmaceutical group procurement

Focusing on the research scenario that integrates value-based healthcare objectives with the pharmaceutical group purchasing model, this study delineates value-based healthcare objectives in pharmaceutical group purchasing from three perspectives: drug sales price, drug quality, and service level. We construct a three-level pharmaceutical group purchasing supply chain consisting of drug manufacturers, medical institutions, and non-profit drug group purchasing organisations. Under centralised and decentralised decision-making, we introduce cost-sharing contracts and “cost-sharing-quantity-discount” contracts to analyse the impact of factors such as drug sales price, quality, and sensitivity of the service level. The study found that: (1) Compared with centralised decision-making, the optimal drug quality and service level in decentralised decision-making and the optimal profits of drug manufacturers and medical institutions will decrease. However, the optimal drug sales price in decentralised decision-making always deviates from that in centralised decision-making, leading to higher or lower drug sales prices. (2) The incorporation of value-based healthcare objectives in the pharmaceutical group purchasing through cost-sharing contracts depends on changes in the proportion of drug quality costs borne by medical institutions. If the proportion is too high, medical institutions will suffer greater losses because they bear too much of the cost. (3) Under certain conditions, cost-sharing contracts can improve supply chain efficiency but cannot achieve supply chain coordination, while the combination of “cost-sharing-quantity-discount” contracts can achieve supply chain coordination in pharmaceutical group purchasing.

New energy vehicles' technology innovation coordination strategy based on alliance negotiation under dual credit policy.

The development of new energy vehicles (NEVs) is one of the effective ways to alleviate carbon emissions, environmental pollution, and energy scarcity in the transportation sector. The Chinese government has innovatively proposed the "dual credit policy," but it is still a hot topic whether it can promote the NEVs' technological innovation. In this study, we construct game models and obtain the technological innovation strategies for NEVs under the dual credit policy, considering that the NEV supply chain contains one manufacturer and N suppliers. Further, we construct bargaining game models and study how to encourage manufacturers and suppliers to enhance technological innovation, realize supply chain coordination, and give the alliance strategy to maximize suppliers' profit. We found that the dual credit policy can effectively stimulate technological innovation, and the higher the credit price or technological innovation credit factor, the higher the technical level of NEVs. The findings could guide the government to adjust and revise the policy. Second, we found that the bargaining games could coordinate the NEV supply chain so that decentralized enterprises can achieve optimal technological innovation under centralized decision-making. Third, we found that suppliers can improve their profits by choosing a suitable alliance strategy under the manufacturer's different negotiating power.

Loss-Averse Supply Chain Coordination with a Revenue-Sharing Contract

As economic fluctuations and market uncertainty intensify, supply chain members face enormous challenges. To explore the role of revenue-sharing contracts in supply chain members with different risk preferences, we study the risk-averse two-stage supply chain coordination in a revenue-sharing contract under three different scenarios: the supplier is risk-averse and the retailer is risk-neutral, or the retailer is risk-averse and the supplier is risk-neutral, or both are risk-averse. We find that the revenue-sharing contract mechanism allows the supplier to offer a lower wholesale price, effectively bearing part of the retailer’s cost risk. In return, the retailer compensates the supplier with a larger portion of their revenue, and the lower wholesale price also stimulates the retailer’s desire to order more products. In addition, risk aversion always reduces the optimal order quantity in the supply chain. Interestingly, when the retailer’s risk aversion level is low, the supplier charges a higher wholesale price under the risk-averse supply chain than that under the risk-neutral supply chain. However, if the retailer’s risk aversion level is high enough, the supplier should charge a lower price to stimulate the retailer under the risk-averse supply chain to retain the order size to maintain the channel profit.

IoT-enabled coordination for recommerce circular supply chain in the industry 4.0 era

The current advances in integrating devices through the Internet of Things (IoT) have encouraged researchers to focus on the applications of IoT in the recommerce business. Recommerce and the circular economy are growing worldwide as customers and businesses prioritize sustainability. A lack of coordination between channel participants is a significant hurdle to successfully adopting Circular principles in the recommerce industry. This study explores the coordination issue for a circular supply chain consisting of a Web-based recommerce platform and an IoT-enabled original equipment manufacturer. The proposed study is analyzed using a mixed-method research strategy combining a case study with a game-theoretic model. We analyze the problem under a consignment contract with revenue sharing for different channel structures. We introduce a hybrid contract to coordinate the decentralized channel in a cooperative game model. The results show that the consignment contract cannot coordinate the business in a decentralized structure. The recommerce platform achieves perfect coordination through the hybrid contract and obtains a unique Pareto optimization. We are proposing a IoT-enabled system in which resources are not wasted, thereby providing a way for businesses to use the circular economy concept to achieve sustainability goals.

Sustainable supply chain coordination: extant literature, trends, and future research directions

Sustainable supply chain coordination: extant literature, trends, and future research directions