Profit sharing contracts and quality improvements in competing supply chains
This paper contributes to the hold-up problem resolving, quality improvement in supply chains, and the contract theory. We aim to investigate the effects of competitive environment on manufacturer's incentive to change the quality of product and the efficiency of the profit sharing contracts. Our results show that the stronger competition motivates the quality improvement and under particular parameters profit sharing contract is an efficient mechanism of coordination within the supply chain.
Among logistic management issues nowadays the most urgent one is the problem of method choice for assessing supply chain efficiency performance indexes. Mostly, that could be explained by fragmented nature of conducted research works among Russian and foreign experts. Herewith the lapse of any united analytical and methodological basis for conducting calculations complicates the efficiency assessment task and deprives it of almost any economic sense, because, in our opinion, application of comparing methods or just orientation to an «ideal» performance in the industry do not fully correlate with criteria of accuracy and adequacy of numeric examples. The paper contains analysis of the leading research works devoted to the problem of developing efficiency assessment methods for supply chains; proposes ways of developing existing approaches considering analytical models and methods; provides sample calculations
Recent research on closed-loop supply chains (SC) and reverse logistics extensively emphasizes the crucial role of reducing negative return flows such as emissions, waste, etc. In this study, we consider the return flows in the SC in light disruptive events in the SC. The objective of this study is to compare the performance impact of different recovery policies on return flows subject to the simultaneously optimized reconfiguration plans for material flows. We formulate a multi-objective problem with return flow reduction function for a multi-period, multi-stage, multi-product SC. We consider a recovery problem with ripple effect, performance impact assessment and re-planning decisions. The developed multi-objective hybrid linear programming-system dynamics model allows simultaneously re-computing the material flows in a multi-stage SC after a disruption and comparing the performance impact of different recovery policies subject to return flows, gradual capacity recovery, variable recovery costs and time. The results suggest that the consideration of gradual capacity recovery leads to minimization of disruption-related return flows in both upstream and down stream SC parts. Fast and expensive recovery strategy provides the lowest return costs in the upstream SC part as compared to normal and slow recovery policies. Similar, the profits and service levels are increased. In the fast and expensive recovery policy, the performance in the upstream and downstream does not change with the introduction of the gradual recovery considerations. The effects of gradual capacity recovery introduction become evident if smaller time sub-periods are considered with in the recovery period.
To date, a diverse array of expert assessments for quantitative (tangible) and qualitative (intangible) objects based on the analytic hierarchy process (AHP) has been accumulated in various fields of knowledge. The systematization and analysis of the collected data made it possible to put forward the hypothesis that some of the indicators (the eigenvalue of the matrix, the consistency index, and the ration of consistency) can be considered in the form of aggregates of random variables representing an intellectual product and reflecting features of human thinking. The systematization and statistical processing of the results obtained by experts on the basis of the AHP showed that the distribution functions of the values of expert estimates for the consistency indices significantly differ from the similar functions of the generated matrices.
In this article using the integral method of analysis (IMA) the impact of various factors on the total logistics costs was assessed and future research directions of the application of the IMA were indicated.
This article reviews the modern approaches to the analysis of conflict situations in a supply chain. Four main areas of conflict analysis are identified and discussed in the paper: mathematical methods, hierarchical analysis, total cost modeling business processes.
According to various estimates global GDP is about 60-70 trillion dollars, at the same time the costs of logistics in the world accounts for 12 trillion dollars per year. These figures are comparable to costs associated with armaments, public health service and other important areas of human activity.
Consequently, the search of practical ways and development of effective mechanisms for reducing logistics costs is a major problem, the solving of which will improve efficiency and competitiveness of enterprises. Thus, the purpose of this paper is the development of methods and models for EOQ calculation in supply chains as well as development of matrix of decision-making for the design of new modified EOQ models, designed to optimize logistics costs of companies in supply chains.
Supply chain management is based on the use of rather heterogeneous and uncertain information. The uncertainty of the market information or product gives rise to the asymmetry of information – the circumstances in which some of the participants in the transaction possess the important other participants do not have. This problem was first noted by K. Arrow in 1963. In 1970 G. Akerlof proposed a mathematical model of the market with asymmetric information. In such a market, the price of goods tends to decline even for goods with perfect quality. There are options for the development of a situation in which such a market disappears completely. The problem of asymmetric information has since been studied in relation to different markets and products, such as insurance markets, used car models and others, but the problem has been little studied in relation to supply chains. The presence of various types of uncertainty in supply chains makes it possible to apply the theory of fuzzy sets. Application of the fuzzy set theory allows to combine all kinds of information into a single whole and adequately consider it. To do this, it is necessary to provide information about the functioning of logistics systems in the form of membership functions. Using the tools of fuzzy set theory, it is possible to develop a conceptual model for overcoming information asymmetry in supply chains between different market participants, which will improve the transparency and reliability of their supply chains. When modeling the processes of overcoming information asymmetry in supply chains, it is possible both to increase and reduce the number of signs affecting the manageability of supply chains, depending on the complexity of the logistics systems. Due to this, this model can be adapted to a variety of forms of interaction between logistics and trade organizations, regardless of their size and scope of activity. Thus, this model allows to establish the degree of reliability, transparency and manageability of supply chains between their different participants and to find: ■ the best ratio of qualitative and quantitative features characterizing certain supply chains between different organizations ■ ways to reduce information asymmetry and increase information transparency depending on the values of the indicators that characterize the supply chain and choose the best one