Transshipment Strategy for Managing Supply Disruption Risk

Inventory transshipment among retailers is an effective strategy to manage supply disruption risks. The expected profit functions and the optimal ordering decisions of two newsvendors who adopt transshipment strategy to cope with upstream unreliability are derived. It is proved that transshipment strategy enhances the retailer's profit,improves the service level for customers,and under special conditions improves the supplier's profit as well. It is therefore claimed that transshipment strategy may achieve a Pareto improvement.

Omnichannel retail operations with ship-to-store and ship-from-store options under supply disruption

Omnichannel retailing strategies are widely used in practice and have been extensively studied in recent years, but few studies have explored omnichannel retailing operations in response to supply disruption in the post-pandemic era. To fill this gap, this study explores whether the adoption of omnichannel fulfillment options (i.e., ship-from-store and ship-to-store options) can mitigate the risk of supply disruption in a supply chain where a retailer orders products from a reliable supplier and a risky supplier, respectively. Under the omnichannel retailing strategy, the retailer’s order quantity from the risky supplier may increase or decrease while that from the reliable supplier may increase. Interestingly, it is possible to achieve a win–win–win outcome when the supply disruption risk is high and the market share of the channel offered by the risky supplier is low. Moreover, the entire supply chain benefits from the omnichannel retailing strategy even if it faces a high level of disruption risk.

Quantity Flexibility Contract Model for Emergency Procurement Considering Supply Disruption

Supply chain disruption risk usually poses a serious challenge to the management of emergency supplies procurement between the government and enterprises in cooperation.To research the impact of supply chain disruption on the supply and demand sides of emergency supplies for disaster relief,the emergency procurement model based on quantity flexibility contract is constructed.The model introduces a stockout disruption to measure the degree of supply chain disruption and uses per unit of material relief value to quantify government disaster relief benefits.Further,it analyzes the basic pricing strategy and the agreed order quantity between the government and enterprises,focusing on the negative impact of supply disruption on the government and enterprises.The model deduction and data analysis results show that supply disruption creates a“lose-lose”situation for governments and enterprises,reducing their benefits and willingness to cooperate.Finally,a sensitivity analysis is conducted on the case data to explain the decision-making changes in the contract price and flexibility parameters between the government and enterprises before and after the supply disruption.

SIMULATING THE SUPPLY DISRUPTION FOR THE COORDINATED SUPPLY CHAIN

There are many disruptive accidents in the supply chain operations system and achieving the coordination of supply chain is main objective for supply chain research. While disruptive accidents have increasingly influenced the coordinated operation of the supply chain, existing research literature on the supply chain coordination is setting in a stationary environment. The answer for how the disruptive accidents affect the coordinated supply chain is given in this paper. Based on the benchmark supply chain which is coordinated by the negative incentive mechanism, we study the impacts of supply disruption on the supply chain system by using simulation approach in which two different distribution function of random variable are used to express the supply disruption. Comparison between these two simulation results and possible coordination mechanism under the supply disruption are proposed. From the perspective of supply chain risk management, we provide the inspiration for the manager.

Sourcing Decisions with Capacity Reservations under Supply Disruptions

Firms employing both offshore outsourcing and nearshore sourcing strategies may face supply disruption,demand uncertainty,and quality risks simultaneously.Sourcing decisions become inevitably important and complicated when both profit and the customer-service level are taken into consideration.In this paper,we model a scenario where a manufacturer who faces stochastic demand procures major modules from an overseas supplier and two local suppliers.The overseas supplier offers quality products while being susceptible to disruption risks;if the local suppliers,who are completely reliable and serve as a backup,offer products that are of inferior quality,it may result in lower market acceptance and a bad experience for the final customers.The manufacturer has to reserve capacity with backup suppliers before urgent orders are placed,when the primary source experiences a shortfall.We explicitly derive the manufacturer’s optimal order quantities and reservation quantities,which are functions of the heterogeneous suppliers’wholesale prices,reservation prices,and other parameters.The impacts of the fill-rate constraint and customer-experience quality constraint on the manufacturer’s purchasing decisions are investigated.Interesting managerial insights on the merits of backup sourcing with capacity reservations for managing demand uncertainties and supply disruption risks are also discussed.

Time-sensitive supply chain disruption recovery and resource sharing incentive strategy

Market demand is becoming increasingly time-sensitive in competitive environments.Hence,supply disruptions will have a more serious impact on the profits of supply chains.This study applies a Stackelberg competition between a single supplier and a single manufacturer in a time-sensitive supply chain in a cloud manufacturing environment.We aim to address the supplier’s production capacity recovery issues and the manufacturer’s incentive decision issues after supply disruption.We find that the supplier is in a weak position when the information is symmetrical.The manufacturer can encourage the supplier to shorten the recovery time by raising the unit wholesale price.When the supplier’s unit production cost remains unchanged but the unit wholesale price increases,the profit of the supplier first increases and then decreases.In addition,under the centralized decision-making setting,the optimal recovery time of the supplier is shorter and the optimal unit market price of the product is lower than that under decentralized decision-making.We further find that resource sharing can shorten the optimal recovery time,but it does not necessarily play an incentivizing role.

Intelligent Manufacturing Systems in COVID‑19 Pandemic and Beyond:Framework and Impact Assessment

Pandemics like COVID-19 have created a spreading and ever-higher healthy threat to the humans in the manufacturing system which incurs severe disruptions and complex issues to industrial networks.The intelligent manufacturing(IM)systems are promising to create a safe working environment by using the automated manufacturing assets which are monitored by the networked sensors and controlled by the intelligent decision-making algorithms.The relief of the production disruption by IM technologies facilitates the reconnection of the good and service flows in the network,which mitigates the severity of industrial chain disruption.In this study,we create a novel intelligent manufacturing framework for the production recovery under the pandemic and build an assessment model to evaluate the impacts of the IM technologies on industrial networks.Considering the constraints of the IM resources,we formulate an optimization model to schedule the allocation of IM resources according to the mutual market demands and the severity of the pandemic.

Modeling of the resilient supply chain system from a perspective of production design changes

Building an effective resilient supply chain system (RSCS) is critical and necessary to reduce the risk of supply chain disruptions in unexpected scenarios such as COVID-19 pandemic and trade wars. To overcome the impact of insufficient raw material supply on the supply chain in mass disruption scenarios, this study proposes a novel RSCS considering product design changes (PDC). An RSCS domain model is first developed from the perspective of PDC based on a general conceptual framework, i.e., function-context-behavior-principle-state-structure (FCBPSS), which can portray complex systems under unpredictable situations. Specifically, the interaction among the structure, state and behavior of the infrastructure system and substance system is captured, and then a quantitative analysis of the change impact process is presented to evaluate the resilience of both the product and supply chain. Next, a case study is conducted to demonstrate the PDC strategy and to validate the feasibility and effectiveness of the RSCS domain model. The results show that the restructured RSCS based on the proposed strategy and model can remedy the huge losses caused by the unavailability of raw materials.

Coordinating contingent assistance of lateral suppliers under disruption

This paper focuses on coordinating contingent assistance between two lateral suppliers controlled by a central firm,when one supplier is exposed to supply disruption.By comparing two scenarios where the central firm can/cannot coordinate contingent assistance,we find the coordination of contingent assistance is more efficient,thus the central firm should do that.In the scenario without coordination,if the holding cost of the disrupted supplier is low,while the opportunity cost of the reliable supplier is high relatively,allowing the reliable supplier to hold decision power of assistance price can generate more assistance quantity for the disrupted supplier and bring more profits for the central firm.However,if the holding cost is high,and the opportunity cost is low relatively,the disrupted supplier can receive more assistance quantity,and the central firm can get more profits,by letting the disrupted supplier have the power to decide assistance price.