Supply chain network design under uncertainty with new insights from contracts

In this paper, the classical problem of supply chain network design is reconsidered to emphasize the role of contracts in uncertain environments. The supply chain addressed consists of four layers: suppliers, manufacturers, warehouses, and customers acting within a single period. The single owner of the manufacturing plants signs a contract with each of the suppliers to satisfy demand from downstream. Available contracts consist of long-term and option contracts, and unmet demand is satisfied by purchasing from the spot market. In this supply chain, customer demand, supplier capacity, plants and warehouses, transportation costs, and spot prices are uncertain. Two models are proposed here: a risk-neutral two-stage stochastic model and a risk-averse model that considers risk measures. A solution strategy based on sample average approximation is then proposed to handle large scale problems. Extensive computational studies prove the important role of contracts in the design process, especially a portfolio of contracts. For instance, we show that long-term contract alone has similar impacts to having no contracts, and that option contract alone gives inferior results to a combination of option and long-term contracts. We also show that the proposed solution methodology is able to obtain good quality solutions for large scale problems.

The Supply Chain Contract Design under Cap-and-Trade Mechanism with Free Riding

This paper studies the influence of free riding on enterprise product pricing and carbon emissions reduction investment, as well as the contract design to achieve supply chain coordination under the carbon trading mechanism. First, we discuss the situation where carbon emissions reduction investment affects the product price and income. It demonstrates that the optimal investment of the upstream manufacturer increases with the degree of the free riding of the downstream manufacturer. The upstream manufacturer can improve their carbon reduction investment and the whole supply chain achieves Pareto improvement when the investment cost sharing contract is introduced. Nevertheless, under the cost-sharing contract the optimal investment of the decentralized supply chain is still lower than that of the centralized supply chain, and only in some particular cases can the two types of supply chain achieve equal total profits. Then, we preliminarily explore the situation where the product price and income is influenced by carbon emissions reduction investment. The consequences indicate that the optimal investment of the upstream manufacturers in this situation is less than the former one's, and the transfer payment mechanism is able to improve the level of the supply chain overall carbon emissions-reduction. Moreover, compared to the former situation, the effects of free riding of the downstream manufacturer are even more serious. The conclusions can provide some intellectual support for manufacturing enterprises to make reasonable emissions reduction strategies and coordinate the supply chain existing in free riding.

Cyber risk at the edge:current and future trends on cyber risk analytics and artificial intelligence in the industrial internet of things and industry 4.0 supply chains

Digital technologies have changed the way supply chain operations are structured.In this article,we conduct systematic syntheses of literature on the impact of new technologies on supply chains and the related cyber risks.A taxonomic/cladistic approach is used for the evaluations of progress in the area of supply chain integration in the Industrial Internet of Things and Industry 4.0,with a specific focus on the mitigation of cyber risks.An analytical framework is presented,based on a critical assessment with respect to issues related to new types of cyber risk and the integration of supply chains with new technologies.This paper identifies a dynamic and self-adapting supply chain system supported with Artificial Intelligence and Machine Learning(AI/ML)and real-time intelligence for predictive cyber risk analytics.The system is integrated into a cognition engine that enables predictive cyber risk analytics with real-time intelligence from IoT networks at the edge.This enhances capacities and assist in the creation of a comprehensive understanding of the opportunities and threats that arise when edge computing nodes are deployed,and when AI/ML technologies are migrated to the periphery of IoT networks.

Cyber risk at the edge:current and future trends on cyber risk analytics and artificial intelligence in the industrial internet of things and industry 4.0 supply chains

Digital technologies have changed the way supply chain operations are structured.In this article,we conduct systematic syntheses of literature on the impact of new technologies on supply chains and the related cyber risks.A taxonomic/cladistic approach is used for the evaluations of progress in the area of supply chain integration in the Industrial Internet of Things and Industry 4.0,with a specific focus on the mitigation of cyber risks.An analytical framework is presented,based on a critical assessment with respect to issues related to new types of cyber risk and the integration of supply chains with new technologies.This paper identifies a dynamic and self-adapting supply chain system supported with Artificial Intelligence and Machine Learning(AI/ML)and real-time intelligence for predictive cyber risk analytics.The system is integrated into a cognition engine that enables predictive cyber risk analytics with real-time intelligence from IoT networks at the edge.This enhances capacities and assist in the creation of a comprehensive understanding of the opportunities and threats that arise when edge computing nodes are deployed,and when AI/ML technologies are migrated to the periphery of IoT networks.