Global Manufacturing Supply Chain Research Articles

Global supply chain flow planning for Chinese manufacturing under the BRI: An SFG-DRO method

The Belt and Road Initiative (BRI) has fostered the free flow of commodities and optimal distribution of resources for the global manufacturing supply chain (GMSC), meanwhile confronted with risks and uncertainties. This paper proposes the SFG-DRO method, which can well solve the flow distribution problem of GMSC under the BRI with uncertainties. The proposed method combines trend prediction from the stochastic frontier gravity (SFG) model with 1-Wasserstein fuzzy set-based distributionally robust optimization (DRO). Additionally, this paper integrates the principles of the column and constraint generation (C&CG) algorithm with the particle swarm optimization (PSO) algorithm to handle the above two-stage nonlinear problems efficiently. The results show that the SFG-DRO distribution method significantly reduces transportation costs by 25% and enhances security. By examining flow distribution across three key BRI channels, this paper identifies underexploited markets along the southward channel and substantial market potential with security risks along the northeast sea-land channel, proposing relevant improvement suggestions.

Unleashing supply chain agility: Leveraging data network effects for digital transformation

The global manufacturing supply chain is undergoing a digital transformation (DT) powered by various digital technologies. In both stable and turbulent environments, DT helps safeguard supply chain performance by enhancing supply chain agility. While research on the use of digital technologies and their impacts on supply chains is growing, there is a lack of an overarching theoretical lens to synthesize their diverse functionalities, effects, and benefits. To address this gap, we adapt the concept of the data network effect to the supply chain context and propose that DT improves supply chain performance by enhancing supply chain resilience (SCRes) and robustness (SCRob) capabilities. To validate our hypotheses, we conducted a large-scale survey for data collection and performed Partial Least Squares Structural Equation Modelling (PLS-SEM) for data analysis. The results confirm the positive effect of DT on supply chain performance and the mediating roles of SCRob and SCRes. Our study contributes to the ongoing discussion on DT in the context of supply chains by introducing a novel theoretical perspective on the supply chain data network effect.

Analysis of the impact of digital economy on the reconfiguration of manufacturing supply chain

With the rapid development of science, and technology, the transformation and upgrading of the manufacturing supply chain in the era of the digital economy promotes the rapid development of the manufacturing industry., China's transformation is still in the embryonic stage so far. The transformation of the enterprise awareness is weak and lacking motivation. The digital core technology still needs to be researched and developed, so the digital transformation management mode still needs to be explored. However, the research of manufacturing supply chain reconstruction under the background of digital economy is of great practical significance. This paper first introduces the basic concepts and core definitions of global manufacturing supply chain reconstruction and digital transformation. The digital economy leads to the importance and inevitability of manufacturing supply chain transformation. After that, putting forward the risks and opportunities faced by the transformation for the general environment. Finally, this paper provides some suggestions for the restructuring of the manufacturing industry in the digital economy.

Environmental considerations in the European Union's pharmaceuticals legislation: Key instruments and their challenges in addressing global manufacturing supply chains

AbstractThis article analyses how two key instruments of European Union pharmaceuticals legislation—good manufacturing practices and environmental risk assessment of pharmaceuticals—address known risks posed by the release of pharmaceuticals in the environment to human health and the environment and identifies the challenges that they face in regulating global manufacturing supply chains. The analysis reveals that these instruments fail to address the environmental challenges posed by pharmaceuticals within global manufacturing supply chains. Based on these findings, we propose to revise European pharmaceuticals legislation by expanding the scope and information requirements of both human and veterinary environmental risk assessment and increasing its weight in the risk–benefit analysis for human pharmaceuticals; by including direct environmental requirements for certain prioritized pharmaceuticals; and by integrating environmental considerations and related verification mechanisms into good manufacturing practices.

A Novel Multi-Criteria Assessment Approach for Post-COVID-19 Production Strategies in Vietnam Manufacturing Industry: OPA–Fuzzy EDAS Model

The global manufacturing supply chain has been disrupted by the negative impacts of the pandemic. In Southeast Asia, Vietnam’s manufacturing industry is one of the most strongly integrated with global and regional supply chains. The production strategies in the “new normal” are the key solution to the survival and sustainable development of manufacturers. This study aims to develop a two-stage framework to investigate the impacts of COVID-19 and the post-COVID-19 production strategies for Vietnam’s manufacturing industry. As a theoretical contribution, this study proposes a novel and robust integration approach, which combines the Ordinal Priority Approach (OPA) and Fuzzy Evaluation Based on Distance from Average Solution (Fuzzy EDAS), for the first time. The negative impacts of the pandemic were identified and weighted by the OPA method. Then, production strategies were comprehensively evaluated using the Fuzzy EDAS method. Findings indicate that digitization and on-site renewable energy are the most essential recovery strategies for manufacturing in Vietnam. These findings are validated by comparisons with the results of recent multiple criteria decision-making (MCDM) methods. Furthermore, weight sensitivity analysis reveals different suitability of strategies for short-term and long-term negative impacts. As a managerial implication, the multi-scenario ranking results help managers to make resource-allocation decisions for the implementation of post-COVID-19 production strategies.

Modeling on Disruption Risk Prediction of Manufacturing Supply Chain Based on C4.5 Algorithm

Under the impact of covid-19, the global and domestic manufacturing supply chains, almost suffered from the serious interruption crisis of manpower flow, logistics, information flow and capital flow. The risk of supply chain disruption has become the primary risk of the supply chain. However, some risk inducement of supply chain interruption is complex and diverse, so it is very difficult to grasp and screen the risk data needed for research from the supply chain operation data. To improve the robustness of supply chain for boosting the domestic and international circulation of China's manufacturing, in this paper, according to the characteristics of China's manufacturing supply chain and its risk incentives, the data needed for risk prediction modeling has been sorted out through questionnaire survey, and a regression model of risk prediction for manufacturing supply chain by using empirical method would be put forward. Then, C4.5 decision tree method is used to train and evaluation the risk prediction model. The conclusion shows that the customer satisfaction has great diagnostic value for risk, and the model has a strong sensitivity to market information risk and market order risk. The conclusion is more consistent with general cognition, and the model fits well, indicating that the model proposed in this paper has a certain theoretical significance, and its practical application value is worthy of further testing.

Implications of the pandemic-induced electronic equipment demand surge on essential technology metals

The COVID-19 pandemic and the ensuing lockdowns has drastically altered modern life. Increased use of telecommuting for work, education, and leisure has led to a surge in demand for electronic products, which has strained both global manufacturing supply chains and upstream mineral stocks and resources. In this paper, we discuss a prospective research and policy agenda that covers the technological, socio-economic, and regulatory aspects needed for an accelerated transition towards enhanced mineral resource efficiency and improved electronic waste management during the pandemic and its aftermath.

Industry Performance Appraisal Using Improved MCDM for Next Generation of Taiwan

It is critical for manufacturing sectors to improve maximum performance to foster a competitive advantage. This article aims to analyze how the manufacturing industry can promote its performance to achieve sustainable development. We embark performance evaluation on Taiwanese manufacturing sectors which have profound implications in the global manufacturing supply chain. This study collected public information and reliable data from the Industrial Technology Research Institute (ITRI) covering 12 Taiwanese manufacturing industries. Performance evaluation indicators consist of four inputs chosen from a set of six items, whereas one output is from a set of three items. The analysis from Data Envelopment Analysis (DEA) is conducted including CCR (Charnes, Cooper, & Rhodes) efficiency, BCC (Banker et al.) efficiency, A&P(Andersen and Petersen) efficiency, cross-efficiency and D&G(Doyle and Green) efficiency plus the VIKOR prioritization method to evaluate the 12 manufacturing industries in Taiwan. The comprehensive analysis and comparison results of this study show the sophisticated outcomes through the analysis of DEA and VIKOR. In another objective evaluation, the efficiency of DEA proves a certain correlation between the model and the measurement of the VIKOR method. The results indicate that Taiwan’s manufacturing industry is moving towards design innovation thinking towards the high value of its own brand, whereas the industries in China and South East Asia appear different. The results can provide the best practice to allow the international manufacturing industry to enjoy a resurgence after falling output and diminishing labor force.

Central Banks Respond to COVID-19 to Stave off a Financial Crisis, They Need for Targeted Fiscal Measures Should not Be Understated

Central Banks have cut interest rates to historic lows in an attempt to reduce the adverse impact of COVID-19, while unprecedented liquidity infusions have been used to reduce funding constraints and frictions in the financial market. Monetary policy will lessen the economic and financial fallout from the virus, policymakers should emphasise the need for targeted fiscal measures to complement accommodative monetary policy and central bank liquidity. These should culminate fiscal transfers, wage subsidies and a significant reduction in social security contributions for households. Nevertheless, central banks should begin stemming structural vulnerabilities in financial markets and ensure that liquidity infusions are a short-term measure designed to improve the transmissions of monetary policy rather than create financial market dependence, as has been the case since the financial crisis. The Coronavirus or COVID-19 has caused the global economy to grow at a slower pace, government yields have tumbled and liquidity constraints have increased in financial markets across advanced economies. Prior to this, the United States and China were locked in a geopolitical, economic and technological rivalry that caused a synchronized cyclical slowdown as businesses to postpone investment decisions. This trend of slowing capital investments into productive sectors such as green technology and renewable energy saw productivity wane, and global woes were compounded by Brexit amidst sluggish growth in the single market. Following the signing of a phase one of the trade agreement and the USMCA, COVID-19 began to spread in Wuhan, the capital of Hubei province. Since then, the virus has spread to Italy, North America and Africa. In the meantime, global manufacturing supply chains for cosmetics, the auto sector, consumer and industrial products stalled, business and consumer sentiment plummeted in some advanced economies and the service sector spanning tourism, transportation, restaurants have been adversely affected by the virus. Central Banks can assess the impact of the Coronavirus from two standpoints.

China Sneezes the World Catches a Cold-CEMAC

When China sneezes the world catches a cold is a statement that is true today more than ever before. The outbreak of the COVID-19 has had far reaching consequences around the world as almost every component of society is greatly affected in one way or the other. The impact transcends through culture, politics, history, economic, health and even the distortion of the historical landscape. If anyone doubted the super power position of China, COVID-19 has given us the opportunity to rethink. Economically, the ban of flights and limited movements in and out of the country has impaired the positive evolution of the financial markets naturally tilting the growth curve towards continues low. Food supplies, medication, importation and most especially commodity prices are on their all-time low. On the health side with extraverted African economies is meting towards short falls, at the central African sub region, rating institutions are projecting a 4.1% drop in consumer goods as import is greatly affected. The United Nations said it now estimates Africa's GDP rate will fall from 3.2 percent to 1.8 percent this year. In order for Africa to meet its global targets under the UN’s Sustainable Development Goals, economists say Africa must grow at a minimum of 8 percent. The novel COVID-19 has infected more than 94,800 people in at least 77 countries (see chart), bringing global manufacturing supply chains to a grinding halt and causing a slowdown in key service sectors such as tourism, transport, and recreation. While the virus will cause exports from Cameroon to China and Italy to fall, policymakers must see the negative implications of the virus as a trigger to incentivise higher value-added products such as components for computers and solar panels, consumer products such as cornflakes, packaged salmon, potatoes and cornflower, which are all appropriate for an increasingly climate-centric global consumer.

The Case for Business and Human Rights in Business Education - A Tool Kit

In today’s globalized economy, companies face a range of human rights challenges that are growing in importance and attracting increasing attention. Human rights generate great student interest and complements teaching and research in many other areas of business education. Because so many of these issues are highly visible, business schools that incorporate human rights into their curricula will have the potential to enhance their public reputations, improve recruitment prospects for top students, strengthen their ratings, and generate new sources of funding. Incorporating human rights into the curriculum is also the right thing to do, because of the importance of these issues to society. As the current model for business education is being tested by rising costs and declining application numbers, schools that feature cutting-edge global issues like human rights in their teaching and research will be seen as leaders in shaping 21st century global business education.Human rights issues manifest themselves differently in each business sector. Companies that rely on global manufacturing or agricultural supply chains grapple with labor issues that run the gamut from worker safety to child labor. Mining companies routinely operate in conflict zones, where security challenges are ever-present and exploitation of women and children is a subject of constant concern. The Covid-19 pandemic has highlighted growing economic inequalities that fuel populism and nationalism, threatening to undermine economic and political stability. Those who exploit social media to exacerbate political divisions and amplify hate test the current governance models of online platforms. Businesses now are expected to navigate this complex terrain while operating in a fishbowl–a world dominated by new technologies that amplify public attention to all of these issues, putting the brand reputation of even the largest and most profitable companies at risk.Most business schools have devoted little or no attention to these issues, but this is now about to change. As global businesses increasingly deal with these challenges, business educators will be expected to provide the tools for current and future business leaders to grapple with these issues. Business schools offer the ideal venue to explore 21st century human rights challenges, both in teaching future business leaders and conducting cutting-edge research. Business school professors will have an opportunity to work with corporate leaders, helping them better understand these complex challenges and develop the tools to address them. Over time, business schools can and should play a leading role in this new field, developing effective industry standards and metrics, as well as organizational insights into how to apply these standards in practice. This guidance will help corporations address risks to their operations and to their reputations. Finally, business schools also can provide the empirical and conceptual framework to help corporate leaders and others build the business case for adopting long-term strategies to promote human rights.

Integration of global manufacturing networks and supply chains: a cross case comparison of six global automotive manufacturers

Striving for new business opportunities automotive original equipment manufacturers established overseas plants in emerging markets and global manufacturing networks evolved. In this regard so-called knocked down supply chains have been the key for the establishment of successful overseas operations. Importing all parts required from the original plants in form of easy to be handled kits secures a high product quality and stable supply despite lacking qualification of local workforce and supplier bases. Over time the overseas plants and global manufacturing networks have matured by increasingly taking over value adding processes and integrating local suppliers. However, the supply chain structure and management have not been adapted accordingly and still comprise high inventory buffers and lead times. There is little research on the integrated design of global manufacturing networks and knocked down supply chains. This research aims to contribute to close this research gap by means of a cross-case study with six globally operating OEMs investigating the fit of knocked down supply chains and global manufacturing networks. On the basis of transaction cost theory, we develop an integrated framework to align global manufacturing networks and knocked down supply chain design that can serve as guideline to open logistics performance and cost potentials.

Four reasons why 2018 will be the best post‐crisis year

▀ We head into 2018 in a fairly optimistic mood. The current upswing is more broadly based than any other since the global financial crisis, and – unusually by recent standards – we have entered the new year without any major crisis looming. We see world GDP growth accelerating from 3.0% last year to 3.2% in 2018, which would be the best year for the global economy since the post‐global financial crisis rebound. ▀ There are four key reasons why 2018 is going to be a good one globally: (i) strong trade growth; (ii) muted inflation keeping monetary policy accommodative; (iii) emerging markets staying robust; (iv) resilience to political uncertainty. ▀ The near‐term risk of an abrupt slowdown in China looks limited, while the Eurozone economy continues to stage robust growth which is underpinned by strong fundamentals. A potential fiscal loosening, a weaker dollar and business investment revival bode well for the US. The outlook is bright for economies that are heavily integrated into global manufacturing supply chains or reliant on commodity exports. ▀ Granted, soaring debt is a cause for concern, particularly in some emerging markets, along with high asset price valuations. They warrant close monitoring and are plausible triggers for the next global slowdown. Nonetheless, while such risks could linger or indeed escalate further before correcting, we don't see them as 2018 issues. ▀ The most obvious trigger for any such correction would be a widespread and more aggressive monetary policy normalisation. However, in our view, inflation pressures look set to build only slowly. Add the fact that high debt will make the economy more sensitive to interest rate moves, we expect central banks to normalise with caution and see policymakers doing less tightening that the consensus expectation.

Supply chain risk network management: A Bayesian belief network and expected utility based approach for managing supply chain risks

The paper develops and operationalises a supply chain risk network management (SCRNM) process that captures interdependencies between risks, multiple (potentially conflicting) performance measures and risk mitigation strategies within a (risk) network setting. The process helps in prioritising risks and strategies specific to the decision maker's risk appetite. The process is demonstrated through a case study conducted in a global manufacturing supply chain involving semi-structured interviews and focus group sessions with experts in risk management. Theoretically grounded in the framework of Bayesian Belief Networks (BBNs) and Expected Utility Theory (EUT), the modelling approach has a number of distinctive characteristics. It utilises a top-down approach of Fault Tree Analysis (FTA). Performance measures are identified first and subsequently connected to risks. A ‘probability-conditional expected utility’ matrix is introduced to reflect the propagation impact of interdependent risks on all performance measures identified. A ‘weighted net evaluation of risk mitigation’ method is proposed and the method of ‘swing weights’ is used to capture the trade-off between the efficacy of strategies and the associated cost keeping in view the decision maker's risk appetite. The approach adapts and integrates techniques from safety and reliability engineering (FTA), decision making under uncertainty (EUT), and multi-criteria decision analysis (swing weights). The merits and challenges associated with the implementation of interdependency based frameworks are discussed. Propositions are presented to elucidate the significance of modelling interdependency between risks and strategies.

Aggregate Demand, Vertical Specialization and Growth Accounting

Global manufacturing and international supply chains have changed the way trade and economic growth are understood today. Recent statistical advances suggest new ways of looking at growth accounting when global value chains (GVCs) — articulating supply and demand chains from an international perspective — are taken into consideration. The method is applied to the G-20 countries, a group of leading developed and developing economies that took a prominent role in fostering and managing global economic governance. The demand dynamics is first analyzed through a growth-accounting decomposition, then through the long term determinants of income elasticity of imports and the household marginal propensity to consume imported products.

Energy-climate-manufacturing nexus: New insights from the regional and global supply chains of manufacturing industries

The main objectives of this research are to improve our understanding of energy-climate-manufacturing nexus within the context of regional and global manufacturing supply chains as well as show the significance of full coverage of entire supply chain tiers in order to prevent significant underestimations, which might lead to invalid policy conclusions. With this motivation, a multi region input–output (MRIO) sustainability assessment model is developed by using the World Input–Output Database, which is a dynamic MRIO framework on the world’s 40 largest economies covering 1440 economic sectors. The method presented in this study is the first environmentally-extended MRIO model that harmonizes energy and carbon footprint accounts for Turkish manufacturing sectors and a global trade-linked carbon and energy footprint analysis of Turkish manufacturing sectors is performed as a case study. The results are presented by distinguishing the contributions of five common supply chain phases such as upstream suppliers, onsite manufacturing, transportation, wholesale, and retail trade. The findings showed that onsite and upstream supply chains are found to have over 90% of total energy use and carbon footprint for all industrial sectors. Electricity, Gas and Water Supply sector is usually found to be as the main contributor to global climate change, and Coke, Refined Petroleum, and Nuclear Fuel sector is the main driver of energy use in upstream supply chains. Overall, the largest portion of total carbon emissions of Turkish manufacturing industries is found in Turkey’s regional boundary that ranged between 40% and 60% of total carbon emissions. In 2009, China, United States, and Rest-of-the-World’s contribution is found to be more than 50% of total energy use of Turkish manufacturing. The authors envision that a global MRIO framework can provide a vital guidance for policy makers to analyze the role of global manufacturing supply chains and prevent significant underestimations due to inclusion of limited number of tiers for sustainable supply chain management research.

Revisiting Growth Accounting from a Trade in Value-Added Perspective

Global Manufacturing and International Supply Chains changed the way trade and international economics are understood today. Recent statistical advances suggest new ways of looking at the demand and supply side approaches when Global Value Chains (GVCs) — articulating supply and demand chains from an international perspective — are taken into consideration. The study focuses on the G-20 countries, a group of leading developed and developing economies which took a prominent role in fostering and managing global economic governance. The paper is organised into two independent parts. The demand dynamics is first analysed through a growth-accounting decomposition, then through the long term determinants of income elasticity of imports. The second part looks at the implications of global manufacturing for our understanding of the supply-side growth dynamics, privileging a trade perspective: the definition of comparative advantages and the potential for value-chain up-grading.

Cloud manufacturing – a critical review of recent development and future trends

There is an ongoing paradigm shift in manufacturing, in which the modern manufacturing industry is changing towards global manufacturing networks and supply chains. This will lead to the flexible usage of different globally distributed, scalable and sustainable, service-oriented manufacturing systems and resources. Combining recently emerged technologies, such as Internet of Things, Cloud Computing, Semantic Web, service-oriented technologies, virtualisation and advanced high-performance computing technologies, with advanced manufacturing models and information technologies, Cloud Manufacturing is a new manufacturing paradigm built on resource sharing, supporting and driving this change.It is envisioned that companies in all sectors of manufacturing will be able to package their resources and know-hows in the Cloud, making them conveniently available for others through pay-as-you-go, which is also timely and economically attractive. Resources, e.g. manufacturing software tools, applications, knowledge and fabrication capabilities and equipment, will then be made accessible to presumptive consumers on a worldwide basis.Cloud Manufacturing has been in focus for a great deal of research interest and suggested applications during recent years, by both industrial and academic communities. After surveying a vast array of available publications, this paper presents an up-to-date literature review together with identified outstanding research issues, and future trends and directions within Cloud Manufacturing.

Graph-based integrated production and intermodal transport scheduling with capacity restrictions

Global manufacturing supply chains may link subsequent production facilities by intermodal transport operations, which are characterised by long transport times, scarce transport capacities and a given time table. Consequently only an integrated scheduling of production and intermodal transport operations may be able to materialise the competitive advantage of such a supply chain in terms of total cost and on time delivery reliability. The execution of this planning task is challenging for both supply chain professionals and scientists, since the underlying planning problem is NP-hard. This paper details a new methodological approach for solving integrated production and transport scheduling problems based on a graph, which allows a reformulation of the scheduling problem as a shortest path problem for each job, which can be solved in polynomial time. The proposed method is applied to a supply chain scenario, which contains a manufacturing facility in Brazil and shipments to customers in Germany. The obtained results show that the approach is suitable for the scheduling of large-scale problems and can be flexibly adapted to different real-world scenarios.

Comparing mining and manufacturing supply chain processes: challenges and requirements

The mineral raw materials industry is essential for manufacturing by providing the basic materials for their value adding processes. In the last decade, the integration of operations of the industry within global manufacturing supply chains has progressed greatly. The processes of the different stakeholders have been extensively analysed and modelled according to standardised frameworks such as the supply chain operations reference (SCOR) model. However, as of today, not all stakeholders are integrated to the same extent. Especially, in the early part of the supply chain, deep integration of the mineral raw materials industry is still an exception. This industry and its processes differ greatly from the average manufacturing company’s processes. Not being directly comparable results in the absence of applications of standardised modelling tools for supply chains like the above-mentioned SCOR model. These circumstances hinder the integration, understanding and exchange between industries that rely significantly on each other. In a first attempt to create a basis for further research, this study analyses, elaborates and compares the challenges and requirements of supply chain processes, with a special focus on sourcing processes, in manufacturing and mining. Based on these findings, an adaption of the SCOR model towards applicability in mining and mining supply processes is presented, followed by a critical discussion of the results and implications, later concluded by a short outlook on further research.