Profit Of Supply Chain Research Articles

Blockchain-Based Intelligent Inventory Management for Hospital Supply Chain (HSC) with Deep Learning Techniques

A medication shortage may have far-reaching consequences, making it an important inventory management concern for healthcare organizations. Intelligent demand forecasting is essential to make cold chain businesses more competitive and save transportation and storage costs. Hence, this paper proposes a blockchain-based intelligent inventory management model (BC-IIMM) with deep learning techniques for hospitals to prevent running out of supplies, run their systems sustainably, and optimize their profits in the hospital supply chain (HSC).Preventing the contamination of pharmaceuticals requires a pharmaceutical cold chain monitoring system that uses IoT devices, blockchain, and cloud computing to track items across their entire supply chain reliably. One other perk is that both doctors and patients may benefit from drug recommendations made by a deep belief network (DBN) model. Further, to construct deep learning (DL), the proposed cold chain monitoring system produces large-scale, high-quality data. Holding cold chain items would become less expensive and cold chain inventory management decisions would be easier with it.Next, they provide a numerical result proving the suggested method works better than the baselines regarding refilling cost and shortage rate.

Process improvement under the reference price effect

Cost-reducing process improvement, leading to price reductions and consequently sales growth, is becoming increasingly relevant in today’s uncertain economic environment. However, existing process improvement studies involving sales growth typically assume that consumers only consider the current price of a product when making a purchase. In reality, sales growth also often stems from the reference price effect, where consumers factor in both the current and past prices. By incorporating the reference price effect, we examine the process improvement investment decisions and pricing strategies in a decentralized supply chain. We develop a two-period game-theoretic model, where the supplier invests in process improvement to reduce production costs, and the supplier and the retailer set their prices. This approach differs from existing reference price effect literature, where prices are predetermined exogenously in a decentralized supply chain. We find that the reference price effect stimulates process improvement investment, making both firms more profitable. However, a more prominent reference price effect may significantly decrease supply chain efficiency in the presence of process improvement, resulting in lower profits that move away from what an integrated firm would achieve. When firms set their own prices, the reference price effect intensifies competition for profits and worsens misalignment caused by process improvement. This outcome contrasts with existing studies, which usually argue that the reference price effect increases efficiency. Therefore, managers should consider consumer responses to price changes when making process improvement investment decisions and analyze their impacts on both supply chain profitability and efficiency.

Production line location strategy for foreign manufacturer when selling in a market lag behind in manufacturing

It is a prevalent practice for foreign manufacturers to market their products in regions with lower manufacturing capabilities. However, the manufacturer’s choice of production line location strategy is significantly influenced by tariffs and negative brand effects caused by localized production. In this paper, we build a game-theoretical model considering a supply chain composed of a foreign manufacturer and a local retailer. The foreign manufacturer initially produces both high-end and low-end products at the oversea (with higher manufacturing capabilities), selling them in the local market through a local retailer. We explore various production line location strategies for the foreign manufacturer, including both location at the oversea, both location at the local market (with lower manufacturing capabilities), and separate location, and analyze the impacts of tariffs and negative brand effects. By comparing equilibrium results in different strategies, we discover that as tariffs rise, both location at the oversea may be the best choice for the foreign manufacturer instead of separate location strategy, which challenges the prevalent practice where many foreign manufacturers opt to produce high-end products overseas to uphold brand influence while localizing low-end products to minimize tariff costs. Overall, there is no singularly dominant production line location strategy for the foreign manufacturer, and each strategy holds the potential to yield the highest overall supply chain profit. In addition, as tariffs rise, customer surplus will increase under separate location, and only the separate location strategy or both location at the local market strategy is likely to yield the highest consumer surplus.

Multi-Channel Supply Chains Considering Live Streaming Sales and Spillover Effects

Abstract: With the rapid development of e-commerce, an increasing number of companies, such as Huawei, Apple, and Adidas, are no longer confined to offline physical stores for product sales. They leverage third-party e-commerce platforms or establish online stores on their official websites. Modern consumers have access to various purchasing channels, including e-commerce platforms, offline stores, and manufacturer direct sales. In recent years, a new e-commerce model, live streaming sales, has emerged. In live streaming sales, professional salespersons or key opinion leaders (KOLs) showcase product performance, aiming to sell products online. Unlike traditional online channels, live streaming sales alleviate new consumers' uncertainty about product information through real-time interaction or comments from KOLs. Live streaming has been adopted by e-commerce giants worldwide, such as Taobao, JD.com, and Amazon, due to its significant sales revenue potential. Additionally, channels with KOLs may generate negative or positive spillover effects on other channels. These effects are crucial parameters for exploring the impact of seller profits in the multi-channel supply chain under live streaming conditions. Both domestic and international research have focused on live streaming sales, multi-channel sales, and spillover effects, with many studies yielding significant economic and social benefits. However, challenges faced by multi-channel supply chains, including complex channel management, difficulty in information synchronization, brand consistency issues, and increased costs, need to be addressed. To overcome these challenges, recommendations include integrating channel resources, optimizing channel experience, establishing cross-channel data analysis systems, strengthening supply chain coordination, continuous innovation and improvement, and strengthening brand building.

Dynamics analysis of green supply chain under the conditions of demand uncertainty and blockchain technology

This research investigates the implications of incorporating blockchain technology into the process of making decisions for green supply chains, particularly under conditions of demand uncertainty. A model was formulated to encompass both environmentally friendly products enabled by blockchain technology and those without such enabling technology. The study further explores the optimal method of introducing green input in a duopoly market using game theory. It also examines how consumer uncertainty about green products and acceptance of the technical parameters of blockchain influence this strategy. The findings suggest that increased consumer uncertainty can, in some instances, motivate manufacturers to enhance the eco-friendliness of their products and improve supply chain performance. However, the universal adoption of blockchain does not necessarily ensure better results; on the contrary, it may compromise product sustainability while enhancing supply chain profitability. Moreover, research has indicated that products enabled by blockchain typically have lower prices, thereby offering potential benefits to consumers when acceptance of sustainable energy solutions is high or uncertain. Additionally, this paper analyzes the impact of changes in green supply chain decision-making on system reliability. This involves exploring the relationship between decision parameters and consumer reluctance towards sustainable products and the adoption of blockchain technology. To ensure stable market competition in dynamic complex systems, research shows that feedback control technology can effectively regulate unpredictable behavior.

Choosing Recovery Strategies for Waste Electronics: How Product Modularity Influences Cooperation and Competition

Modular design facilitates easy disassembly and reduces the manufacturer’s remanufacturing costs. However, the simplicity and modular structure of products can intensify competition between manufacturers and third-party recyclers. To improve recovery efficiency, this study examines the impact of modular design on the manufacturer’s selection of recovery strategies, including centralized, cooperation, and competition strategies. We examine the optimal recovery strategy for achieving both economic goals, such as supply chain profit, and environmental goals, such as collection quantity. Our results indicate that the manufacturer should adopt cooperation recovery and invest in higher modularity when faced with strong competition from third-party recyclers. Conversely, when the competitiveness of third-party recovery is relatively low, a competition recovery strategy is more advantageous. Contrary to conventional wisdom, which suggests limiting product disassembly to reduce third-party recovery competitiveness, our results indicate that manufacturers should invest in higher modularity and avoid engaging in price wars to prevent third-party entry. Moreover, competition recovery leads to a higher collection quantity, while cooperation recovery is preferred in terms of supply chain profit. This study provides theoretical guidance for manufacturers in selecting optimal recovery strategies and offers recommendations for governments on regulating product disassembly effectively.

Optimizing Supply Chain Design under Demand Uncertainty with Quantity Discount Policy

In typical business situations, sellers usually offer discount schemes to buyers to increase overall profitability. This study aims to design a supply chain network under uncertainty of demand by integrating an all-unit quantity discount policy. The objective is to maximize the profit of the entire supply chain. The proposed model is formulated as a mixed integer nonlinear programming model, which is subsequently linearized into a mixed integer linear programming model and hence able to obtain a global solution. Numerical examples in the manufacturing supply chain where customer demand follows normal distributions are used to assess the effect of quantity discount policies. Key findings demonstrate that the integration of quantity discount policies significantly reduces total supply chain costs and improves inventory management under demand uncertainty, and decision makers need to decide a balance level between service levels and profits.

Integrated Pricing and Inventory Decisions for Product Quality-Driven Extended Warranty Services

Extended warranty services have become increasingly important for both manufacturers and retailers, offering avenues for new profit sources and growth opportunities. Focusing on the multiple effects of product quality, this study develops a two-period supply chain decision model to analyze the effects of product quality, pricing, and inventory management in the context of extended warranty services. Using a Stackelberg dynamic game model, this study examines the interaction between a manufacturer and a dominant retailer who provides extended warranties. The results indicate significant differences in optimal decisions between centralized and decentralized supply chains, especially concerning pricing and inventory control. Introducing a “quality cost-sharing” contract enhances product quality and improves coordination, leading to increased profits for both the manufacturer and the retailer. Numerical simulations confirm that the cost-sharing contract effectively balances product quality improvements with supply chain profitability.

What is the impact of demand patterns on integrated online-offline and buy-online-pickup in-store (BOPS) retail in a smart supply chain management?

Retailers aim to provide in-person and remote interactions to accelerate purchases through hybrid methods, which introduce additional delivery and emissions loads but create a seamless shopping experience. The challenges of unified inventory, customer information, pricing, demand forecasting complications, and order fulfillment are met successfully in the hybrid methods. Here, a smart supply chain management that integrates traditional physical presence with cloud-based and hybrid buy-online-pickup in-store channels is optimized to meet customer demand in different demand patterns. The demand patterns considered are linear, cubic, and normalized functions of the selling price, the advertising cost, and the product lifetime. The article incorporates sustainable supply chain and omnichannel strategies to optimize supply chain performance and profitability. The paper compares the results of the proposed models with traditional supply chain models and provides some managerial insights and suggestions for online retailers. Numerical simulation reveals that nonlinear price dependence in demand provides an opportunity for higher promotional investment with a substantial rise in optimal selling price and overall profit. The shift-to-imperfect probability is seen to be the volatile component in the solution surface. The markup of the offline channel has a greater impact than buy-online-pickup in-store markup.

Quality Improvement Decisions in Service Supply Chains with Collaborative and Free-Riding Behaviors

The dominant position of a member within a service supply chain plays a crucial role in fostering a willingness to improve service quality. Consequently, this study examines a service supply chain comprising a supplier and an integrator, aiming to investigate the influence of four different power structures, namely, supplier-led, integrator-led, supplier–integrator power balance, and supplier–integrator centralized decision, on the decision-making process for service quality improvement by members. The findings highlight that the optimal willingness to improve service quality in a service supply chain is not necessarily infinitely close to 100%, and is influenced by factors such as revenue share, cost, effect, and dominant position. In cases where the collaborative improvement effect is weak, even the dominant member may display a limited willingness, rendering centralized decision-making meaningless. If the collaborative improvement effect surpasses the combined independent improvement effects, the dominant position can help strengthen willingness, although it may not always result in higher profits. Conversely, a power-balanced scenario can be advantageous in achieving the highest profit for the entire supply chain.

Financial hedging incentive contracts in global supply chains: A distributionally robust approach

AbstractThis paper developed a global supply chain with a supplier and a retailer in different countries. When exchange rate and demand risks are concentrated in retailer, a distributionally robust approach is used to formulate an optimized robust ordering strategy. Furthermore, the effect of financial hedging incentive contracts on the robust decisions and the profits of the global supply chain is explored. Our findings show that the correlation between exchange rate and demand does not affect the robust decisions of retailer. The effectiveness of financial hedging incentive contracts depends on the trade‐off between transaction costs of financial hedging and the degree of supplier incentives and the growth rate of order quantity.

Biomass supply chain coordination considering government subsidies and corporate social responsibility

PurposeThe purpose of this paper is to investigate the impact of various decision-making approaches and government subsidies on supply chain performance, aiming to enhance the profits of disposal firms and retailers as well as to improve social welfare.Design/methodology/approachIn this paper, a two-echelon biomass supply chain composed of a disposal firm and a retailer is developed. Firstly, considering the effects of government subsidies, we analyze biofuels prices, corporate social responsibility levels, social welfare and supply chain profitability under centralized and decentralized decision-making scenarios, respectively. Furthermore, we assess how subsidies influence pricing, market participation, profitability and social welfare. Secondly, we propose a revenue sharing–cost sharing contract to enhance the profits of the disposal firm and retailer. Thirdly, we extend the supply chain to a disposal firm and two retailers and explore the impact of competition intensity on corporate decision-making behavior. Finally, numerical analysis is conducted by taking one biomass energy firm as an example to support the results.FindingsOur research finds that (1) Equilibrium strategies under the centralized decision-making scenario are greater than those under the decentralized decision-making scenario. Centralized decision-making can increase market demand and consumer surplus. (2) Government subsidies can promote corporate social responsibility levels, despite causing a slight increase in retail price for biofuels. When market competition intensifies, companies usually reduce their investment in CSR, and this trend is particularly pronounced in the absence of subsidies. (3) In both the decentralized and the centralized decision-making scenarios, increasing conversion rates and the CSR coefficient can significantly increase the overall profitability and social welfare.Research limitations/implicationsA three-echelon biomass supply chain involving collection station, disposal firm and retailer can be studied in the future.Originality/valueBy examining the effects of subsidies on CSR engagement and market outcomes, our study contributes valuable insights into policy design for promoting sustainable practices in biomass industries.

Closed-loop supply chain decision making and coordination considering channel power structure and information symmetry

China is currently undergoing a phase of high-quality development, with increasing emphasis on the circular economy, energy conservation, and environmental protection by both the government and enterprises. This paper examines a secondary supply chain comprising manufacturers and retailers, focusing on three supply chain decision-making models: one where the manufacturer is the channel leader, one where the retailer is the channel leader, and one where both parties have equal power. The study investigates the impact of manufacturers misrepresenting their Corporate Social Responsibility (CSR) information and the challenges associated with recycling efforts on the optimal performance of the supply chain. The findings reveal that when manufacturers lead the supply chain, they do not misrepresent their private information. However, when retailers dominate, manufacturers tend to underreport their CSR levels and the difficulty of recycling efforts. In scenarios where manufacturers and retailers have equal power, manufacturers do not misreport the difficulty of recycling but do underreport their CSR levels. This misreporting benefits the manufacturers at the expense of retailers and overall supply chain profitability, while also discouraging the recycling of used products. Across all three power structures, the study shows that retailers’ marketing efforts decrease as the misrepresentation of recycling difficulty increases, and increase as the misrepresentation of CSR levels increases. To mitigate the effects of manufacturers’ misreporting under information asymmetry, the paper proposes revenue-sharing contracts and two-part pricing contracts to coordinate the closed-loop supply chain under different power structures. Both contracts are shown to achieve Pareto improvements within the supply chain. This research provides valuable insights for enterprises operating within closed-loop supply chains, highlighting the importance of enhancing communication and cooperation to bridge information gaps and ensuring the coordina.

Optimal product pricing and lot sizing decisions for an omni-channel supply chain

In an omni-channel supply chain, companies offer customers multiple channels to interact with their brand. This allows for greater outreach and sales, resulting in increased customer loyalty and trust. Furthermore, there has been little discussion on the simultaneous consideration of strategic and tactical decisions under return policies in omni-channel supply chains. To maximize total profit, this research proposes a two-echelon supply chain, comprising a manufacturer and multiple retailers, including traditional, electronic and omni-channels. The non-deterministic demand function takes into account the sales price, refund price, delivery time and order quantities. A heuristic algorithm based on analysis of Karush–Kuhn–Tucker optimality conditions used to solve a nonlinear programming model. This research presents an analysis of the factors influencing the decision variables and profit of the entire supply chain and offers retailers a unique way to evaluate their performance and make operational decisions regarding price, delivery time and order quantities.

Research on Topology Optimization of Building Digital Supply Chain Based on Genetic Neural Network

In order to maximize the benefit of building supply chain, the topology optimization method of building digital supply chain based on genetic neural network is studied. According to the overall structural characteristics of the building digital supply chain, customer demand data, supplier sales data, manufacturer production management data, and environmental policy exception data are collected to form a building digital supply chain data set. As input data, a building digital supply chain demand prediction model based on improved genetic LSTM neural network is constructed. Capture the needs of the building digital supply chain; according to the demand of suppliers, manufacturers and customers in building digital supply chain, a nonlinear 0–1 mixed integer programming model based on the newsboy model is established. According to the various information provided by the supplier, the ant colony algorithm is used to calculate the optimal supplier. After all suppliers are identified, the topology of the digital supply chain is constructed. So far, the optimization of the supply chain has been completed. The experimental data show that this method can accurately predict the demand of construction projects, the maximum error is less than 1.5%, and can obtain the best supplier selection results. Compared with before optimization, the profit of the structural digital supply chain after topology optimization increases the most.

Decisions and coordination in low-carbon supply chains with a wholesale price constraint under government subsidies

Motivated by the challenge of meeting carbon-conscious consumers and carbon regulations, this paper expounded on the decisions and coordination in low-carbon supply chains with a wholesale price constraint (WPC). The WPC is the behavior of large retailers (e.g., Walmart, Amazon, and E.Leclerc) that pursue a profit margin that does not fall below a certain level, which can affect supply chain operations. First, we develop a competition model, revealing that the WPC can result in a loss of total supply chain profit and a shortage in carbon emission reduction and then pose systematic challenges. Following this, we design a Nash bargaining-based cooperation model, showing that it can coordinate the supply chain and achieve a continuous allocation of optimal profits according to the bargaining power of firms. Lastly, our extended analysis incorporates the external influence of government subsidies for low-carbon technologies and designs the optimal subsidy mechanism. We demonstrate that, while government subsidies can reduce cost pressures on the supplier and provide incentives to reduce carbon emission, they can also induce the retailer to set a higher WPC for greater profitability, so the performance loss remains prominent. In this circumstance, we construct a Nash bargaining-based cooperation model that can coordinate the supply chain. Overall, our insights can help firms achieve scientific carbon emission reduction and formulate a reasonable WPC, as well as provide a quantitative basis for government carbon regulations.

Implementation of industrial symbiosis under environmental tax policy

Industrial symbiosis is an important practice to achieve economic and environmental advantage. This paper explores the implementation of industrial symbiosis under environmental tax policy. Specifically, we use a game-theoretic approach to analyze the interaction between the government and the manufacturers involved in industrial symbiosis in two supply chain structures: integrated structure and decentralized structure. We find that environmental tax is an effective tool to reduce the mismatch between waste supply and demand in the symbiotic supply chain. The government is inclined to set a more stringent environmental tax in the integrated supply chain, while the tax rate that triggers the full conversion of waste in decentralized scenario is larger than that in integrated scenario. The integration of the symbiotic supply chain may promote the utilization of waste and bring a higher social welfare and better environmental performance. The profit of supply chain in the integrated structure is not always higher than that in the decentralized structure. When the market potential of by-product is not large enough and the damage of waste is moderate, it is more profitable to implement industrial symbiosis in a decentralized supply chain.

Optimal Financing Strategy in a Dual-Channel Supply Chain with Agricultural Product

This study models a two-stage agricultural supply chain consisting of a financially constrained manufacturer of agricultural products and a financially stable retailer. We examine two supply chain structures: traditional and dual channel. Our analysis centers on the effects of consumer green preferences, consumer sensitivity to the freshness of agricultural products, and substitution rate between green and non-green agricultural products on the profitability of supply chain members. The purpose of this work is to study the optimal financing strategy for companies producing both regular and organic products simultaneously. We analyze optimal financing strategies for the manufacturer using three models: bank financing, internal debt financing, and internal equity financing. Our results indicate that in both traditional and dual-channel supply chains, increased consumer green preferences or greater sensitivity to the freshness of agricultural products improve supply chain profitability, while a higher substitution rate between green and non-green products reduces profits. Additionally, the manufacturer prefers internal debt financing when consumer environmental awareness is low. Conversely, as consumer environmental awareness increases, internal equity financing becomes more profitable. These findings offer valuable insights for agricultural product manufacturers facing financial constraints, assisting them in selecting the most appropriate financing model.

Parcel-Locker-Sharing Model for E-Commerce Logistics Service Providers

In the e-commerce last-mile delivery process, the asset operators (logistics service providers who own parcel locker facilities) support their delivery service with parcel lockers, while the non-asset operators (logistics service providers without parcel lockers) perform door-to-door delivery. Due to demand fluctuation, asset operators’ parcel-locker slots may be left vacant, while non-asset operators are stuck with the high-cost door-to-door service. The exclusiveness of parcel-locker usage reduces resource utilization and service efficiency in last-mile delivery. Therefore, this paper proposes a parcel-locker-sharing model in which these two parties share the parcel-locker capacity in last-mile delivery. The asset operator rents the unused parcel lockers to the non-asset operator by charging a rental fee,while the non-asset operator rents the parcel lockers for delivery to save logistics costs. The motivation of this alliance is to increase the profits of both parties and that of the total supply chain. This study establishes the supply-chain profit model for the parcel-locker-sharing framework and finds that the profit or loss depends on the comparison of the operation cost savings and delivery-cost savings. A numerical analysis is conducted to validate the final result. The research further suggests the optimal rental quantity and price interval. This paper is the first to study the operational mechanism of sharing the parcel locker between two distinct types of logistics service providers and to offer recommendations for industrial application.

A multi-level multi-product supply chain network design of vegetables products considering costs of quality: A case study.

Effective logistics management is crucial for the distribution of perishable agricultural products to ensure they reach customers in high-quality condition. This research examines an integrated, multi-echelon supply chain for perishable agricultural goods. The supply chain consists of four stages: supply, processing, storage, and customers. This study investigates the quality-related costs associated with product perishability to maximize supply chain profitability. Key factors considered include the network design, location of processing and distribution centers, the ability to process raw products to minimize post-harvest quality degradation, the option to sell the excess produce to a secondary market due to unpredictable yields, and the decision not to fulfill demand from distant customers where significant quality loss and price drops would be involved, instead diverting those products to the aforementioned secondary market. Quantitative methods and linear mathematical programming are employed to model and validate the proposed supply chain using actual data from a real-world case study on vegetable supply chains. The main contribution of this research is the incorporation of quality costs into the objective function, which allows the supply chain to prioritize meeting nearby customers' demands with minimal quality loss over serving distant customers where high quality loss is unavoidable. Additionally, deploying a faster transportation fleet can significantly improve the overall profitability of the perishable product supply chain.