Supply Chain Level Research Articles

Linking plant roles and operations strategy decision-making autonomy in international manufacturing networks

This paper is concerned with the management of multi-plant manufacturing networks. Two key concepts in this domain are plant roles and plant autonomy in the context of operations strategy decision-making. We investigate the relationship between these two concepts and their impact on plant performance. We use data from 102 manufacturing plants belonging to multi-plant networks. The results suggest a relationship between plant roles and operations strategy decision-making structures. Plants with high levels of decision-making autonomy typically have high levels of production, supply chain, and development competences, while plants with a low level of decision-making autonomy are primarily those with only production site competences. Integrated structures for operations strategy decision-making, which include both the network level and the plant level, exist for all plant types and are thus not restricted to plants with a certain set of site competences. In accounting for both the plant type and decision-making structure, we were unable to detect any significant differences between groups in terms of performance effects. Instead, it seems that the fit between plant type and decision-making structure is important and that choosing the right type of operations strategy decision-making structure moderates the performance of plants with low site competence levels.

The aquaculture supply chain in the time of covid-19 pandemic: Vulnerability, resilience, solutions and priorities at the global scale

The COVID-19 global pandemic has had severe, unpredictable and synchronous impacts on all levels of perishable food supply chains (PFSC), across multiple sectors and spatial scales. Aquaculture plays a vital and rapidly expanding role in food security, in some cases overtaking wild caught fisheries in the production of high-quality animal protein in this PFSC. We performed a rapid global assessment to evaluate the effects of the COVID-19 pandemic and related emerging control measures on the aquaculture supply chain. Socio-economic effects of the pandemic were analysed by surveying the perceptions of stakeholders, who were asked to describe potential supply-side disruption, vulnerabilities and resilience patterns along the production pipeline with four main supply chain components: a) hatchery, b) production/processing, c) distribution/logistics and d) market. We also assessed different farming strategies, comparing land- vs. sea-based systems; extensive vs. intensive methods; and with and without integrated multi-trophic aquaculture, IMTA. In addition to evaluating levels and sources of economic distress, interviewees were asked to identify mitigation solutions adopted at local / internal (i.e., farm-site) scales, and to express their preference on national / external scale mitigation measures among a set of a priori options. Survey responses identified the potential causes of disruption, ripple effects, sources of food insecurity, and socio-economic conflicts. They also pointed to various levels of mitigation strategies. The collated evidence represents a first baseline useful to address future disaster-driven responses, to reinforce the resilience of the sector and to facilitate the design reconstruction plans and mitigation measures, such as financial aid strategies.

Improve it or reveal it? Product innovation and demonstration decisions under different supply chain contract modes

When consumers are uncertain about their choice of a product, the product innovation effort and the product demonstration level will significantly affect product sales. Under the impact of factors such as contract mode, channel competition, and product competition, the relationship between firms’ decisions on innovation effort and demonstration level will become more complicated. This study comprehensively models and analyzes the interaction between the manufacturer's product innovation effort and the retailer's product demonstration level in a dual-channel supply chain under either the agency contract mode or the wholesale contract mode. In our model, a manufacturer sells his innovative product through a retailer’s physical store under wholesale or agency contract mode, as well as his direct online channel. The results show that under two contract modes, the trend of the demonstration level is almost opposite. Moreover, the correlations between the innovation effort and the demonstration level decisions under the two contract modes are opposite. From the perspective of marketing strategy, when the potential market of the innovative product is not too small, the penetration strategy is preferred under the agency contract mode, whereas the skimming strategy is preferred under the wholesale contract mode. In certain conditions, two firms can achieve Pareto optimality by choosing the agency contract mode. Besides, we find that the consumer showrooming behavior makes two firms more likely to achieve Pareto optimality, while the manufacturer’s introduction of the online direct sales channel will not hurt the retailer, who can avoid the loss of profit by adjusting the product demonstration level decision.

Integrating product design and supply chain management for a circular economy

Circular economy (CE) provides an alternative development model to the dominant take-make-dispose linear approach, and thus a new vision for solving sustainability challenges. Firms need to operationalise CE in their supply chain operations, starting from circular product design as the foundational step. The purpose of this paper is to investigate how to integrate product design and supply chain management (SCM) decisions for a CE transition. A thematic analysis was conducted on data collected from 15 semi-structured interviews in New Zealand. Four propositions were established based on the identified themes, namely, end-of-life thinking in product design, circular SCM, business model innovation, and sustainable organisational values. The study results provide a novel insight into the integration of product design and SCM for a CE transition. The operational framework developed provides guidance to product designers, managers, and researchers to advance the CE cause at the supply chain level.

A Study on Vegetable Export for the Economic Development of Bangladesh and Its Entrepreneurial Opportunities for Young Educated Bangladesh People

This study tries to explain the prevailing vegetable supply chain system in Bangladesh which impact on International Market linkages includes some markets, number of intermediaries, and involvement of Stakeholder. Next, it shows many limitations within the present supply chain where the issues of export of vegetable supply chain have discoursed thoroughly. Then, the influences of lack of effective supply chain linkages are discussed. The main difficulties met by the growers, Exporter, and negotiators were deficiency of money, Training, production, Packaging Knowledge, poor communication and transport services, lack of adequate storage services, lack of suitable market info, higher market tolls, deficiency of market facilities, etc. The growers and intermediaries also suggested some solutions to those difficulties. As vegetables are perishable products, the study provides an overview of the issues and solutions within the use of cargo space at the airport. The govt should take the required steps to undo these problems and thus extend the effectiveness of vegetable supply chain export marketing in Bangladesh. Here shows a proposed vegetable supply chain and policy level suggestion for International Market linkages. At present Bangladesh is in the demographic dividend. It includes a large number of educated unemployed. This study provides a detailed explanation of how to start a new business to grow as an entrepreneur. These people can play a significant role in the country's GDP by exporting vegetables from the country by obtaining export licenses and earning foreign exchange. DOI: 10.7176/RHSS/11-20-09 Publication date: October 31 st 2021

Assessing the importance of transformational leadership competencies and supply chain learning to green innovation: construction practitioners’ perspectives

PurposeThis study aims to assess the importance of transformational leadership competencies, as well as supply chain learning, to green innovation in construction at the supply chain level.Design/methodology/approachA questionnaire survey is conducted to collect data from construction firms in Vietnam. Many statistical analysis methods – including the Shapiro-Wilk test, one-sample Wilcoxon signed-rank test and Kruskal-Wallis test – are performed to achieve the research objectives.FindingsThe results indicate that the importance of most transformational leadership competencies is similarly perceived among different role groups (i.e. directors/deputy directors, project managers, consultants, quantity surveyors and designers).Research limitations/implicationsThis study enriches the understanding of leadership research in construction at the supply chain level and also develops a theoretical framework for theory testing research, where the relationships of transformational leadership competencies and supply chain learning with green innovation are highlighted.Originality/valueResearch on leadership in the green supply chain context is still limited, especially in the construction industry. Thus, this study is conducted to fill this gap of research.

Robust simulation optimization for supply chain problem under uncertainty via neural network metamodeling

Real-world supply chain management problems are highly complicated such that their optimization procedure is computationally expensive due to the extensive dimensions and uncertainty of their critical variables. Simulation optimization is a commonly applied technique to determine the optimal variables since the problem is too complex. Due to the uncertain nature of the real-world systems, it is also worthy to consider the robustness of the optimal solutions. To address this issue, this study investigates the problem of determining near-optimal safety stock levels in a multi-product supply chain with regard to deviations of its overall cost. A new framework is proposed to define the decision as well as environmental variables. This novel framework results in a significant reduction of the solution space while maintains the essential supply chain control parameters. The prediction performance of artificial neural networks (ANNs) with different structural settings are compared, and the best-fitted ANNs are selected to obtain the robust solutions. Consequently, we employ a robust metamodel-based simulation optimization approach based on Taguchi’s view and optimize the multi-objective supply chain problem with respect to supply chain operational costs and customer satisfaction criteria.

The role of performance measurement in assessing the contribution of circular economy to the sustainability of a wine value chain

PurposeThis study aims to ascertain the extent to which a cooperative controlling a wine supply chain implements a performance measurement system (PMS) that monitors the effects of a circular economy (CE) strategy, developed through partnerships, on the economic and environmental sustainability of the value chain.Design/methodology/approachThe study analyzes the characteristics of the closed-loop business model and uses the PMS to assess the contribution of CE partnerships to the sustainability of the value chain. The case study is based on interviews conducted on the cooperative's top management and supplemented with an analysis of external reports, related documents and direct observations.FindingsThe PMS was underpinned by enterprise resource planning (ERP), through which CE indicators control for the benefits generated on behalf of the cooperative and its CE partners.Originality/valueGiven the paucity of the studies that address the performance measurement of CE at the supply chain level and its relation to sustainability, this study sheds light on the role that PMS can play in tracking the contribution of CE partnerships to the sustainability of a wine value chain operating in agro-waste valorization. Furthermore, the performance measurement of the CE strategy contributes to an assessment of the responsible production of sustainable development goals at the supply chain level.

Closed-loop supply chain design for the transition towards a circular economy: A systematic literature review of methods, applications and current gaps

Over the last decade, significant attention has been devoted to Closed-Loop Supply Chain (CLSC) design problems. As such, this review aims at assessing whether the current modelling approaches for CLSC problems can support the transition towards a Circular Economy at a supply chain level. The paper comprehensively assesses the extent to which existing modelling approaches evaluate the performance of supply chains across the complete spectrum of sustainability dimensions. Also, the capability of the current approaches of incorporating strategic, tactical, and operational decisions is considered, along with adopted solution methodologies. As a result, a comprehensive analysis was performed on 254 selected articles. This paper emphasises how most of the current literature in the field is affected by a disconnection between supply chain design and the founding principles of Circular Economy. Specifically, the CLSC literature exhibits a reductionist interpretation of the Circular Economy. CLSC studies focusing on all three dimensions of sustainability are relatively rare, and performance measurement approaches appear to be very much focused on monetary issues. While methodological contributions appear adequate to focus on the non-deterministic nature of CLSC design problems, there is paucity of empirically-grounded research. Coherently, a research agenda is proposed, in order to address the mentioned gaps and increase the relevance of this research field to practice.

Increasing Resilience of Production Systems by Integrated Design

The paper presents a framework for considering resilience as an integrated aspect in the design of manufacturing systems. The framework comprises methods for the assessment of resilience, supply chain and production planning, flexible execution and control as well as modular and skill-based methods for automation systems. A basic classification of risk categories and their impacts on manufacturing environments is given so that a concept of reconfigurable and robust production systems can be derived. Based on this, main characteristics and concepts of resilience are applied to manufacturing systems. As a lever of increased resilience on business and supply chain level, options for synchronized production planning are presented in a discrete event simulation. Furthermore, a concept to increase resilience on the level of business process execution is investigated, allowing manufacturing tasks to be rescheduled during runtime using a declarative approach to amend conventional business process models.

Packaging paradoxes in food supply chains: exploring characteristics, underlying reasons and management strategies

PurposeThe purpose of this paper is to explore different types of packaging paradoxes and the reasons for their existence in food supply chains.Design/methodology/approachThe research uses a multiple case study approach with rich empirical data from seven leading companies in Swedish food supply chains. The research uses coding and a paradox theory lens to analyse packaging paradoxes, both within and between companies in a supply chain.FindingsThe paper provides a novel theoretical lens which uses comprehensive empirical data to identify and categorise four types of packaging paradoxes on two system levels in food supply chains. It presents detailed descriptions of, and underlying reasons for, the paradoxes. It also discusses strategies required to manage packaging paradoxes.Research limitations/implicationsFuture research should confirm and extend the findings in this study by incorporating data from companies in other countries. It should cover the importance of paradoxes, their impact on company performance and innovation, and how different paradoxes are related to each other. It should also investigate strategies to manage paradoxes further.Practical implicationsThe findings should help companies acknowledge and identify management principles for packaging paradoxes in food supply chains.Originality/valueIt is the first study which systematically explores packaging paradoxes in food supply chains. The study offers a new approach to understand the complexity of packaging decisions in food supply chains. It contributes to the packaging logistics literature by extending theoretical knowledge about conflicts of interest related to packaging. The management discussion offers initial insights into management of packaging paradoxes and directions for future research.

Complexity analysis of production, fertilizer-saving level, and emission reduction efforts decisions in a two-parallel agricultural product supply chain

This paper analyses the complexity of production, fertilizer-saving level, and emission reduction efforts decisions in a Cournot agricultural products supply chain system. A two-parallel agricultural products supply chain consisting of traditional agricultural producers and green agricultural producers was established. Based on bounded rationality, the decision competition model between the two supply chains was investigated in two scenarios: horizontal Nash (HN) game and long-term Stackelberg (LS) game with traditional agricultural producers as the leader. The Nash equilibrium points of the two models were obtained, and the impact of different decision-making adjustment speeds and critical parameters on the stability of the system and the expected profit of agricultural producers was discussed. The study found that production adjustments had a more significant impact on the stability of the system, decision variables, and expected profits than the adjustment of fertilizer-saving level and emission reduction efforts in the two scenarios. In the HN game, the impact of nitrogen tax or low nitrogen preference on traditional agricultural producers was opposite to that of green agrarian producers. Although the increase of these parameters was beneficial to green agricultural producers, the system’s stability would decrease. In addition, the stability of the LS game model can be divided into two decision-making systems to judge, and the adjustment speed of traditional agricultural producers' decisions had a more significant impact on the whole system. Finally, the feedback control method was used to control the chaos of the system of the HN game.

Optimizing a bi-objective location-allocation-inventory problem in a dual-channel supply chain network with stochastic demands

Integrating strategic and tactical decisions to location-allocation and green inventory planning by considering e-commerce features will pave the way for supply chain managers. Therefore, this study provides an effective framework for making decisions related to different levels of the dual-channel supply chain. We provide a bi-objective location-allocation-inventory optimization model to design a dual-channel, multi-level supply chain network. The main objectives of this study are to minimize total cost and environmental impacts while tactical and strategic decisions are integrated. Demand uncertainty is also addressed using stochastic modeling, and inventory procedure is the periodic review (S, R). We consider many features in inventory modeling that play a very important role, such as lead time, shortage, inflation, and quality of raw materials, to adapt the model to the real conditions. Since a dual-channel supply chain is becoming more important for sustainable economic development and resource recovery, we combine online and traditional sales channels to design a network. We generate five test problems and solve them by using the augmented ε-constraint method. Also, the Grasshopper optimization algorithm was applied to solve the model in a reasonable time for a large size problem. In order to provide managerial insights and investigate the sensitivity of variables and problem objectives with respect to parameters, sensitivity analysis was performed.

Understanding the stimuli, scope, and impact of organizational transformation: The context of eBusiness technologies in supply chains

AbstractWith eBusiness technologies seen as a source of competitive edge, supply chains are facing organizational transformation. The supply chain transformation has been widely explored in the context of standalone case studies focusing on either systems, relationships, or implications of projects to supply or manufacturing risk. The research has been limited to address the underlying reasons for variance in organizational transformations effort. This study employs a case study in an automotive supply chain, followed by a questionnaire distributed to four automotive supply chains achieving 65 responses. The findings indicate that organizational transformation can vary based on the relationship between individual eBusiness technology and its stimulus (responsive, anticipatory, and/or proactive), its scope (evolutionary vs. radical change), and the extent of organizational transformation impact (departmental and/or business unit and/or supply chain level impact). Within this context, the current study brings forth new findings in automotive supply chains in which the individual eBusiness technologies indicated a variance across the supply chains.

A graph-theoretic approach for assessing the leanness level of supply chains

PurposeDeveloping a lean supply chain is a continuous improvement effort, so it requires tracking the implementation progress by assessing the achieved level of leanness. However, lean supply chain practices depend on firm-to-firm relationships and an assessment method should consider these network interactions. Given the absence of such a method, this study aims to propose an alternative approach for assessing the leanness level of supply chains.Design/methodology/approachThe authors extracted 18 typical lean supply chain practices from the literature, constituting the leanness assessment parameters. Then, the authors developed an assessment method based on the graph-theoretic approach due to its properties of capturing the interdependencies between elements of a system. The authors tested the proposed method in an automotive supply chain, selecting the focal firm and three of its first-tier suppliers.FindingsThe authors positioned partial and overall results in a visual classification scale and the supply chain presented a moderate leanness level. After empirical testing, the proposed method demonstrated its practical feasibility.Research limitations/implicationsThis paper contributes to the literature with a novel approach for supply chain leanness assessment. However, to increase its generalizability, it would be beneficial to test the method in non-automotive supply chains, extending the assessment scope to downstream firms and second-tier customers and suppliers.Practical implicationsFor practitioners, this paper provides a self-assessment tool to monitor the supply chain leanness and set priorities for improvement.Originality/valueBesides tackling the interrelationships between firms, the proposed method considers the interdependencies between lean practices, providing partial and overall feedback to enable a systemic assessment.

The Impact of Information Visibility on Ordering Dynamics in a Supply Chain: A Behavioral Perspective

Previous research on the bullwhip effect shows that information visibility – Point-Of-Sale (POS) data or supply chain partner inventory data – can reduce the amplification of orders in a supply chain. This study compiles and analyzes the data from two previous experiments with the Beer Game (Croson and Donohue, 2003, 2006) to gain insight on the specific mechanisms that decrease order amplification. By structuring the data as a panel and using a fixed-effects estimation model, we find that additional supply chain level information (e.g., POS and inventory data) leads subjects to react less aggressively to changes in their own inventory and to pay more attention to the supply line of orders placed. Furthermore, our analysis shows that such effects are more pronounced for upstream subjects. Our findings provide insight into the role that additional supply chain information play on subjects’ orders in the Beer Game.

Considering Fraud Vulnerability Associated with Credence-Based Products Such as Organic Food.

Organic foods carry a premium price. They are credence-based foods, i.e., it is difficult for consumers to evaluate the premium aspects of organic food under normal use. In global supply chains, organic food is purchased on institutional trust (certification, logos, standards) rather than on relational trust. Relying on institutional trust makes consumers vulnerable to criminals who intentionally label conventional product as organic or develop sophisticated organized crime networks to defraud businesses and consumers. The aim of this research is to explore cases of organic fraud that are emergent from academic and gray literature searches to identify ways to strengthen future capabilities to counter illicit activities in a globalized food environment. Each case is considered in terms of perpetrator motivations (differentiated as economic, cultural, and behaviorally orientated drivers), the mode of operation (simple or organized), the guardians involved/absent, and the business and supply chain level vulnerabilities the cases highlight. The study finds that institutional trust is particularly vulnerable to fraud. Supply chain guardians need to recognize this vulnerability and implement effective controls to reduce the likelihood of occurrence. However, in some cases considered in the study, the guardians themselves were complicit in the illicit behavior, further increasing consumer vulnerability. Future research needs to consider how additional controls can be implemented, without increasing supply chain friction that will impact on food trade and supply, that can ensure consumers are purchasing what they believe they are paying for.

Prevention of food waste and alternative destinations for unused food in Brazil

Food loss and waste (FLW) result in significant social, economic, and environmental costs. Although FLW occurs at different levels of food supply chains, retailers can play a key role in the fight against this issue. Food loss (FL) is a decrease in the quantity or quality of food resulting from decisions and actions by food suppliers in the chain, while food waste (FW) refers to the result of decisions and actions by retailers, food service providers, and consumers. Various public policies aimed at fighting FLW and determining alternative destinations for unused food have been implemented around the world. Brazil has established the National Policy on Solid Waste and passed legislation addressing the fight against hunger. These measures have made retailers seek ways to minimize FW and find destination alternatives. This paper introduces the description of an FW in retail supermarkets and strategies for the prevention of FW and alternative destination for unused food that have been adopted (or can be adopted) in Brazil. This is a multi-case study, with data collected through bibliographic and document research and interviews with managers. The results showed that the food categories with greater perishability (fruits, vegetables, butchery, and bakery) also have a higher percentage of loss. The main reasons for these losses were operational breakdowns (management failures) and internal and external theft. A greater number of prevention strategies were observed in regional networks compared to local and independent companies. For all cases, the sale of recyclable goods and proper disposal in landfills were pointed out as the main strategies for alternative destinations of unused food.

Analyzing the mediating role of organizational ambidexterity and digital business transformation on industry 4.0 capabilities and sustainable supply chain performance

PurposeDespite the growing awareness of supply chains on industry 4.0 (I4.0) capabilities as the enabler of sustainable performance, little is known about what accelerates this interaction. Prior studies have focused on the ambidexterity dilemma and the need to adopt sustainable inter-organizational governance to drive I4.0 capabilities while achieving sustainable performance. To address these issues, this paper aims to explore the distinct and combined effects of several approaches such as digital business transformation (DBT), organizational ambidexterity (OA) and circular business models (CBMs) on the relationship between I4.0 capabilities and sustainable performance.Design/methodology/approachDrawing upon a hybrid methodology including structural equation modeling and fuzzy set qualitative comparative analysis, this paper develops and tests a hypothetical model using data collected from 306 organizations in Europe, Asia and Africa.FindingsThe study findings lead to several important implications concerning the potential paths linking I4.0 and sustainable performance. Notably, the DBT was found to mediate this relationship by integrating circular principles to devise business models. Moreover, OA was found to substitute the CBMs in developing new sustainable business models and reconcile sustainability.Originality/valueThe study is among the first to analyze the combined effects of OA, DBT and CBMs on the relationship between I4.0 capabilities and sustainable performance at the supply chain level. Moreover, the findings propose several solutions to resolve the sustainability dilemma through I4.0 capabilities, DBT, OA and CBMs.

Research on Profit Distribution Between Dairy Farmers and Manufacturing Enterprises in Dairy Supply Chain Based on Qualified Rate

As an indispensable industry for the health and prosperity of the Chinese nation, dairy industry is a symbolic industry of agricultural modernization and a strategic industry of coordinated development of primary, secondary and tertiary industries.With the rapid development of China's dairy industry, China’s dairy product quality and safety risks still exist.The imbalance of profit distribution is one of the important reasons for the confusion of dairy market and quality and safety problems.The essence of the normal operation of the dairy supply chain and the guarantee of the quality and safety of dairy products lies in the correct handling and coordination of the interest relationship between the enterprises in each node of the supply chain.Reasonable benefit coordination mechanism and fair benefit distribution mode are of great significance to ensure the quality and safety of dairy products, maintain the stable relationship of dairy supply chain, and promote the healthy and sustainable development of China’s dairy industry.This paper discusses the optimal quality and safety level and optimal revenue of two-stage dairy supply chain based on the pass rate of dairy farmers and dairy processing enterprises under decentralized and centralized decision-making.In order to improve the quality efforts of dairy farmers, the internal and external loss sharing contract is designed, that is, dairy farmers and dairy processing enterprises share consumer losses, whilemanufacturing enterprises provide certain quality cost subsidies for dairy farmers. Finally, through the example analysis, it is verified that the benefit sharing and risk sharing between dairy farmers and national processing enterprises can be realized through the contract.Through contract coordination, the profit distribution of dairy farmers and processing enterprises and the quality and safety level of supply chain were optimized, and the importance of quality control in raw milk production was further verified.