Price and quality decisions in a vertically-differentiated supply chain with an “Online-to-Store” channel
تصمیمات قیمت و کیفیت در یک زنجیره تأمین کاملاً متمایز با کانال «فروشگاه از طریق فروشگاه»-2021
Because of the prevalence of “Online-to-Store (OS)” channel, customers can purchase differentiated products online and pick up in-store. We develop a Stackelberg game-theoretic model to study the impact of an OS channel on quality levels, demands, prices, and profits of a manufacturer and a retailer in a supply chain. We assume that the retailer acts as a Stackelberg leader, and the manufacturer acts as a Stackelberg follower. The manufacturer produces and sells two products with vertically-differentiated quality levels to the retailer who in turn sells the products to customers through a Store channel, an Online channel, or an OS channel. The retailer incurs a handing cost if the OS channel is available, and consumers bear a shipping cost and a transaction cost when the products are purchased from the Online and Store channels, respectively. We find that the manufacturer should reduce both products’ quality levels and wholesale prices, whereas the retailer can increase the selling prices for a relatively small shipping cost and a not too small handling cost. When the products are available both online and in-store, however, the quality levels, wholesale prices and selling prices might increase for a small shipping cost and a not too small handling cost. Compared to the case in which both products are available online only with the OS channel, adding the Store channel is always beneficial for both parties. The intuition behind these results hinges on the trade-off between the handling cost and the increased market demand for the retailer. Moreover, the quality levels, the wholesale prices of both products, and the selling price of the low-quality product would decrease, while the selling price of the high-quality product increases for a sufficiently low transaction cost and a not too small shipping cost.
Keywords: Game theory | Online-to-store | Vertically-differentiated supply chain | Pricing | Quality
Three-scale integrated optimization model of furnace simulation, cyclic scheduling, and supply chain of ethylene plants
سه سطح مقیاس مدل بهینه سازی شبیه سازی کوره ، برنامه ریزی چرخه ای ، و زنجیره تامین کارخانه های اتیلن-2021
In order to explore the potential of profit margin improvement, a novel three-scale integrated optimization model of furnace simulation, cyclic scheduling, and supply chain of ethylene plants is proposed and evaluated. A decoupling strategy is proposed for the solution of the three-scale model, which uses our previously proposed reactor scale model for operation optimization and then transfers the obtained results as a parameter table in the joint MILP optimization of plant-supply chain scale for cyclic scheduling. This optimization framework simplifies the fundamental MINLP into several sub-models, and improves the interpretability and extendibility. In the evaluation of an industrial case, a profit increase at a percentage of 3.25% is attained in optimization compared to the practical operations. Further sensitivity analysis is carried out for strategy evolving study when price policy, supply chain, and production requirement parameters are varied. These results could provide useful suggestions for petrochemical enterprises on thermal cracking production.
Keywords: three-scale integrated optimization | cyclic scheduling | supply chain | MILP | thermal cracking
Bargaining power as moderator of the “delay costs effect” in supply chain negotiations
قدرت چانه زنی به عنوان تعدیل کننده "اثر هزینه تأخیر" در مذاکرات زنجیره تامین-2021
This paper explores the extent to which bargaining power asymmetries among supply chain members moderate the effect that the delay costs of the setting exert on negotiation outcomes. First, we propose that the influence of delay costs on the initial gap between the bargaining demands of sellers and buyers (i.e., initial bargaining gap) decreases when buyers have a bargaining power advantage over sellers. Second, we posit that this moderation effect reduces the indirect effect that the delay costs have on negotiation outcomes (via the initial bargaining gap). To test these notions, we conduct a 2 × 2 between-subjects experiment with undergraduate students from a large European university in which we manipulate the relative bargaining power and delay costs of the setting. We conduct our analysis with 292 observations. Our findings support our theoretical predictions. Specifically, results indicate that bargaining power moderates (i.e., reduces) the effect of the delay costs on negotiation processes by reducing their influence on the initial bargaining gap. Likewise, our analysis shows that because more powerful buyers are less likely to modify their behavior as a result of the delay costs, they face a higher risk of obtaining suboptimal bargaining profits.
Keywords: Relative bargaining power | Delay costs | Initial bargaining gap | Supply chain negotiations
A supply chain model with service level constraints and strategies under uncertainty
یک مدل زنجیره تامین با محدودیت ها و استراتژی های سطح خدمات تحت عدم قطعیت-2021
In the current socio-economic situation, the daily demand for essential goods in the business sector is always changing owing to various unavoidable reasons. As a result, choosing the right method for profitable business has become quite tricky. This study introduces different business strategies based on constant and fuzzy demands. There are two types of constraints considered in this model to avoid the backorder cost. However, combining the service-level constraints with the constant and fuzzy demand, this study compares the total costs, and finally, the best strategy is established. Moreover, investing a small amount, this model improves the quality of the products and reduces the vendor’s setup cost. Depending on the number of transported products, this model follows the transportation discount policy for hassle-free delivery of the products with a minimum delivery rate. The Kuhn-Tucker optimization technique is employed, and global optimality is verified numerically, analytically using the Hessian matrix. This model’s robustness is discussed through a comparative study, numerical examples, sensitivity analysis, graphical representation, and managerial insights. Finally, some concluding remarks along with future extensions are discussed.
KEYWORDS: Supply chain management (SCM) | Controllable lead time | Fuzzy demand | Transportation discounts | Distribution-free approach (DFA) | Service level constraints (SLC)
A multi-objective robust optimization model for upstream hydrocarbon supply chain
یک مدل بهینه سازی قوی چند هدفه برای زنجیره تأمین هیدروکربن بالادست-2021
The hydrocarbon supply chain (HCSC) is a significant part of the world’s energy sector. The energy market has experienced erratic behavior over the last few years results in financial risks such as exceeding certain limits of the budget or not achieving the desired levels of cash in-flow, i.e., revenue. In this work, robust optimization and multi-objective mathematical programming are used to develop a model that eliminates or at least mitigates the impact of uncertain market behavior. Robust optimization provides tactical plans that are feasible and robust over market scenarios. The model assesses the trade-offs between alternatives and guides the decision-maker towards the effective management of the HCSC. The economic objectives are to minimize total cost and maximize revenue, while the non-economic objective is to minimize the depletion rate. The model considers the environmental aspect by limiting the emission of CO2 and the sustainability aspect by reducing the depletion rate of natural resources. Uncertain behavior of the oil market is modeled on scenario representation. A case study based on real data from Saudi Arabia HCSC is provided to demonstrate the model’s practicality, and a sensitivity analysis is conducted to provide some managerial insights. The results indicate that Saudi Arabia can cover its entire expenditure, break-evenpoint, by producing oil at 7.18 MMbbld and gas at 3,543.48 MMcftd. Besides, the robust approach provides a preferred plan with the highest cash inflow and the lowest sustainability over other approaches, e.g., deterministic, stochastic, and risk-based. The differences show that the robust model increases oil production to compensate for the variability of the scenario.
KEYWORDS: Hydrocarbon supply chain | Multi-objective optimization | Robust optimization | Scenario-Based Optimization | Tactical planning
Multi-objective optimization modelling of sustainable green supply chain in inventory and production management
مدلسازی چند هدفه بهینه سازی زنجیره تأمین سبز پایدار در مدیریت موجودی و تولید-2021
The ever increasing pressure to conserve the environment from global warming cannot be overemphasized. Emission from the inventory and production process contributes immensely to global warming and hence, the need to device a sustainable green inventory by the operational managers. In this paper, a multi-item multi-objective inventory model with back-ordered quantity incorporating green investment in order to save the environment is proposed. The model is formulated as a multi-objective fractional programming problem with four objectives: maximizing profit ratio to total back-ordered quantity, minimizing the holding cost in the system, minimizing total waste produced by the inventory system per cycle and minimizing the total penalty cost due to green investment. The constraints are included with budget limitation, space restrictions, a constraint on cost of ordering each item, environmental waste disposal restriction, cost of pollution control, electricity consumption cost during production and cost of greenhouse gas emission in the production process. The model effectiveness is illustrated numerically, and the solution obtained to give a useful suggestion to the decision-markers in the manufacturing sectors.
KEYWORDS: Multi-objective fractional programming | Fuzzy goal programming | Sustainable green supply chain | Inventory and production management
Supply chain financial service management system based on block chain IoT data sharing and edge computing
سیستم مدیریت خدمات مالی زنجیره تامین مبتنی بر اشتراک داده های اینترنت اشیا زنجیره بلاکچین و محاسبات لبه ای-2021
The implementation of the ‘‘Internet +” policy advocated by the state has also led to rapid development of Internet finance. In order to promote changes in business development models, as a pioneering work for banks serving the real economy, supply chains are being developed to address small and medium-sized enterprises. The financing of enterprises, the transformation and development needs of banks themselves, and the promotion of logistics technology. Edge computing refers to an open platform that integrates network, data processing, storage and application core functions, and can provide the closest end-of-page service near the object data source to meet real-time, application intelligence, security and privacy Sexual needs. The core of supply chain financing is to establish an optimized plan that can effectively control supply chain financing. By integrating the financing literature of the supply chain, the settlement cost in the supply chain can be solved. Based on theoretical research, this article analyzes supply chain financing and block chain technology. Combined with the current specific situation of block chain in supply chain financing, the management system, cash flow of the supply chain, and risk control system are analyzed. All parties to the supply chain financing optimize the supply chain financing risk control system while reducing business costs and improving corporate efficiency, which greatly reduces the risks of all parties in the supply chain financing. The block chain Iota environment based on shared data and advanced data processing has very powerful theoretical and practical significance for promoting the development of commercial banks and enterprises.
KEYWORDS: Block chain | Internet of things | Edge computing | Supply chain finance | Commercial bank
Analysis of the innovation strategies for green supply chain management in the energy industry using the QFD-based hybrid interval valued intuitionistic fuzzy decision approach
تجزیه و تحلیل استراتژی های نوآوری برای مدیریت زنجیره تامین سبز در صنعت انرژی با استفاده از فاصله ترکیبی مبتنی بر QFD ، ارزش تصمیم گیری فازی شهودی-2021
This study aims to analyze the innovation strategies for the green supply chain management with QFD (quality function deployment) multidimensionally. The novelty of the study is to define the criteria of green supply chain for each stage of QFD and propose a hybrid model by IVIF (interval-valued intuitionistic fuzzy) DEMATEL (decision making trial and evaluation laboratory) and IVIF MOORA (Multi-Objective Optimization by Ratio Analysis) respectively. The results demonstrate that understanding the customer expectations with customer relation management is the most important innovation strategy for the green supply chain management in en- ergy industry with the consecutive stages of QFD whereas benchmarking the competitive market environment has relatively the last seat in the ranking. Hence, it is recommended that energy companies should have an effective customer relationship management. In this context, these companies should make a detailed analysis to learn what their customers directly expect from them. With the help of this issue, these companies should generate their product and services based on these expectations. Additionally, it is also stated that new service and product development is also essential for energy companies to improve their innovativeness. For this pur- pose, a research and development department should be created, and the qualified people should be employed. Additionally, different opinions should be collected from various parties, such as customers, employees, and suppliers. Since customers who are satisfied will prefer these companies, the energy companies can catch the opportunity to increase their market share.
Keywords: GSCM | Energy industry | Innovation | QFD | IVIF DEMATEL | IVIF MOORA
Malaysia scenario of biomass supply chain-cogeneration system and optimization modeling development: A review
سناریوی مالزی سیستم تولید همزمان زنجیره تأمین زیست توده و توسعه مدل سازی بهینه سازی: یک مرور-2021
The development of biomass-based cogeneration energy systems in Malaysia is progressing to meet the circular economy concept and sustainability goal. This comprehensive review aims to report recent advancements in biomass-based cogeneration/biomass co-firing technology in Malaysia correlated with the optimization modeling role. First, this work presents the outlook and current scenario of cogeneration systems in Malaysia by observing performance and the challenges confronted by the technologies. Next, investigation of technical issues concerning the key players of the technologies and the biomass supply chain. This work had prepared using quantitative content-based analysis-meta-analysis. The practical implication of this review enables a complex optimization model that integrates biomass-based cogeneration and biomass supply chain considering economic and environmental viability. It will further enhance progress toward the Malaysian “Industry 4.0-driven” energy initiative. A novel optimization model grounded on Industry 4.0 parameters will foster new opportunities for researchers.
Keywords: Biomass-based cogeneration system | Biomass co-firing | Optimization modeling | Renewable energy | Economic and operational viability
3PL firm’s equity financing for technology innovation in a platform supply chain
تأمین مالی سهام شرکت 3PL برای نوآوری در فناوری در یک زنجیره تامین سیستم عامل-2021
Technologies have been driving improvements in logistics and transportation. Focusing on a third-party logistics (3PL) firm’s technology innovations supported by external equity financing, we examine how the innovations can benefit the supply chain, and how the supply chain members should respond with coordinated operational decisions. More specifically, we consider a platform supply chain where a supplier sells a single product on an online platform provided by a retailer, and then hires a 3PL firm for transportation services. The 3PL firm may choose to raise capital through equity financing from external financial institutions, which can be used to support technology innovations to reduce the transportation cost. The financing decision of the 3PL in- teracts with operational decisions of the platform supply chain via possible cost savings. We start with investigating the supply chain coordination by characterizing the optimal operational decisions of the three firms under any given equity financing strategy. Acting non-cooperatively, the 3PL firm and the online retailer first determine the freight charge and revenue sharing respectively, in light of which the supplier’s decision on the retail price. We then move to the 3PL firm internally and derive the optimal equity financing strategy. Our analytical results show that the supply chain efficiency is dependent on the cost allocation between the retailer and the other two firms, but independent of the cost allocation between those two firms. It is also revealed that the original shareholders of the 3PL firm always have a chance to benefit from an appropriate financing strategy, and the optimal financing strategy may depend discontinuously on supply chain parameters. Finally, we check the robustness of our model and show that all key findings remain unchanged when relaxing the deterministic cost reduction to an uncertain one.
Keywords: Technology innovation | Equity financing | Platform supply chain | Non-cooperative game theory