Pub Date : 2024-11-12DOI: 10.1016/j.ijpe.2024.109465
Qihuan Zhang , Ziteng Wang , Min Huang , Huihui Wang , Xingwei Wang , Shu-Cherng Fang
This paper studies a collaborative robust supply chain network design (CRSCND) problem aimed at maximizing economic and social benefits by enabling enterprises to jointly address demand uncertainties. Through strategies including joint inventory replenishment, shared distribution centers (DCs), and pooled transportation resources, the CRSCND problem seeks to optimize plant and DC locations and the allocation of DCs to customers under a collaborative framework. To address this, we develop two robust optimization models incorporating a budget uncertainty set, each model representing a distinct risk-pooling policy. These models are then reformulated into solvable linear programming structures. Results from numerical experiments confirm the cost-reduction benefits of collaboration and robust optimization. Sensitivity analysis reveals that factors like violated probability and high demand volatility minimally impact cost savings enabled by collaboration and robustness. Moreover, each robust model shows distinct suitability depending on specific scenario parameters. Finally, we test three cost-saving allocation mechanisms, finding that only the Shapley value method yields best allocations in cases involving overlapping demand.
{"title":"Collaborative supply chain network design under demand uncertainty: A robust optimization approach","authors":"Qihuan Zhang , Ziteng Wang , Min Huang , Huihui Wang , Xingwei Wang , Shu-Cherng Fang","doi":"10.1016/j.ijpe.2024.109465","DOIUrl":"10.1016/j.ijpe.2024.109465","url":null,"abstract":"<div><div>This paper studies a collaborative robust supply chain network design (CRSCND) problem aimed at maximizing economic and social benefits by enabling enterprises to jointly address demand uncertainties. Through strategies including joint inventory replenishment, shared distribution centers (DCs), and pooled transportation resources, the CRSCND problem seeks to optimize plant and DC locations and the allocation of DCs to customers under a collaborative framework. To address this, we develop two robust optimization models incorporating a budget uncertainty set, each model representing a distinct risk-pooling policy. These models are then reformulated into solvable linear programming structures. Results from numerical experiments confirm the cost-reduction benefits of collaboration and robust optimization. Sensitivity analysis reveals that factors like violated probability and high demand volatility minimally impact cost savings enabled by collaboration and robustness. Moreover, each robust model shows distinct suitability depending on specific scenario parameters. Finally, we test three cost-saving allocation mechanisms, finding that only the Shapley value method yields best allocations in cases involving overlapping demand.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109465"},"PeriodicalIF":9.8,"publicationDate":"2024-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652524","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-10DOI: 10.1016/j.ijpe.2024.109460
Zohreh Khooban, Nevin Mutlu, Ton de Kok
While the demand for cross-border e-commerce has grown rapidly, challenges have emerged for both retailers and consumers participating in this global market. Retailers have been struggling with high logistics costs to fulfill cross-border demand, while the lack of trust in foreign retailers is a major issue for consumers. In this paper, we study a cross-border collaboration scheme between a domestic and a foreign retailer to mitigate these challenges. This entails a co-opetition framework where the domestic retailer performs the last-mile delivery of the foreign retailer’s orders in exchange for a logistics service fee. We model demand via a Multinomial Logit (MNL) choice model where the consumers are trust- and price-sensitive. We compare the market outcomes of the two retailers in “pre-collaboration” and “post-collaboration” settings. We find that there exist win-win outcomes where both retailers benefit from collaboration under realistic settings. We also show that a cooperative mechanism can lead to higher profits for both retailers compared to the non-cooperative mechanism for setting the logistics service fee, if the contract terms are decided carefully.
{"title":"Logistics service sharing in cross-border e-commerce","authors":"Zohreh Khooban, Nevin Mutlu, Ton de Kok","doi":"10.1016/j.ijpe.2024.109460","DOIUrl":"10.1016/j.ijpe.2024.109460","url":null,"abstract":"<div><div>While the demand for cross-border e-commerce has grown rapidly, challenges have emerged for both retailers and consumers participating in this global market. Retailers have been struggling with high logistics costs to fulfill cross-border demand, while the lack of trust in foreign retailers is a major issue for consumers. In this paper, we study a cross-border collaboration scheme between a domestic and a foreign retailer to mitigate these challenges. This entails a co-opetition framework where the domestic retailer performs the last-mile delivery of the foreign retailer’s orders in exchange for a logistics service fee. We model demand via a Multinomial Logit (MNL) choice model where the consumers are trust- and price-sensitive. We compare the market outcomes of the two retailers in “pre-collaboration” and “post-collaboration” settings. We find that there exist win-win outcomes where both retailers benefit from collaboration under realistic settings. We also show that a cooperative mechanism can lead to higher profits for both retailers compared to the non-cooperative mechanism for setting the logistics service fee, if the contract terms are decided carefully.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109460"},"PeriodicalIF":9.8,"publicationDate":"2024-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652523","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-10DOI: 10.1016/j.ijpe.2024.109468
Yang Liu , Yuxiao Zuo
In recent years, the Chinese government has focused on implementing intelligent manufacturing policies to improve the total factor productivity of the manufacturing industry. Using a sample of listed manufacturing companies from 2010 to 2022, we examined the long-term economic effects of government intelligent manufacturing policy incentives on the total factor productivity of the manufacturing industry. We systematically explored its transmission mechanism in the construction of industrial chains. The study found that the implementation of intelligent manufacturing policies significantly improved the level of total factor productivity in the manufacturing industry. Mechanism analysis found that intelligent manufacturing policies promoted the construction of the manufacturing industry chain through three paths: optimizing industrial chain integration, enhancing industrial chain spillover, and strengthening industrial chain resilience, thereby promoting the improvement of total factor productivity. Further analysis found significant differences in the implementation effects of different policy types and technology requirements.
{"title":"Implementing intelligent manufacturing policies to increase the total factor productivity in manufacturing: Transmission mechanisms through construction of industrial chains","authors":"Yang Liu , Yuxiao Zuo","doi":"10.1016/j.ijpe.2024.109468","DOIUrl":"10.1016/j.ijpe.2024.109468","url":null,"abstract":"<div><div>In recent years, the Chinese government has focused on implementing intelligent manufacturing policies to improve the total factor productivity of the manufacturing industry. Using a sample of listed manufacturing companies from 2010 to 2022, we examined the long-term economic effects of government intelligent manufacturing policy incentives on the total factor productivity of the manufacturing industry. We systematically explored its transmission mechanism in the construction of industrial chains. The study found that the implementation of intelligent manufacturing policies significantly improved the level of total factor productivity in the manufacturing industry. Mechanism analysis found that intelligent manufacturing policies promoted the construction of the manufacturing industry chain through three paths: optimizing industrial chain integration, enhancing industrial chain spillover, and strengthening industrial chain resilience, thereby promoting the improvement of total factor productivity. Further analysis found significant differences in the implementation effects of different policy types and technology requirements.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109468"},"PeriodicalIF":9.8,"publicationDate":"2024-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652522","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-09DOI: 10.1016/j.ijpe.2024.109462
Zhaofang Mao , Ruiying Yuan , Zuo-Jun Max Shen
The full lifecycle concept has prompted sellers to provide ancillary services or products based on traditional product sales, leading to a dual-market system consisting of a base market and an add-on market. In this study, we consider a manufacturer selling base products through an online retail platform and then selling add-on products directly to consumers who have purchased base products. We investigate how the manufacturer’s distribution channel strategy in the base market interacts with the platform’s entry strategy in the add-on market. Results show that under the reselling (agency) channel, the platform’s entry of the add-on market enables the manufacturer to increase the wholesale price (reduce selling quantities to enjoy a higher margin) in the base market. We call this wholesale price effect (sales-control effect) caused by the platform’s entry. If the manufacturer adopts the agency (reselling) channel in the base market, the platform prefers (not) to enter the add-on market to compete with the manufacturer; if the manufacturer adopts the dual-channel, the platform enters only if both the commission rate and channel competition are high. Furthermore, the manufacturer prefers the dual-channel when both the commission rate and channel competition are low. Interestingly, due to the interactions between the two firms, the manufacturer will adopt the agency channel instead when the commission rate is extremely high. Finally, we examine conditions under which the platform has incentives to allow the manufacturer to change from a single-channel to a dual-channel in the base market.
{"title":"Strategic interactions between manufacturer channel choice and platform entry in a dual-market system","authors":"Zhaofang Mao , Ruiying Yuan , Zuo-Jun Max Shen","doi":"10.1016/j.ijpe.2024.109462","DOIUrl":"10.1016/j.ijpe.2024.109462","url":null,"abstract":"<div><div>The full lifecycle concept has prompted sellers to provide ancillary services or products based on traditional product sales, leading to a dual-market system consisting of a base market and an add-on market. In this study, we consider a manufacturer selling base products through an online retail platform and then selling add-on products directly to consumers who have purchased base products. We investigate how the manufacturer’s distribution channel strategy in the base market interacts with the platform’s entry strategy in the add-on market. Results show that under the reselling (agency) channel, the platform’s entry of the add-on market enables the manufacturer to increase the wholesale price (reduce selling quantities to enjoy a higher margin) in the base market. We call this <em>wholesale price effect (sales-control effect)</em> caused by the platform’s entry. If the manufacturer adopts the agency (reselling) channel in the base market, the platform prefers (not) to enter the add-on market to compete with the manufacturer; if the manufacturer adopts the dual-channel, the platform enters only if both the commission rate and channel competition are high. Furthermore, the manufacturer prefers the dual-channel when both the commission rate and channel competition are low. Interestingly, due to the interactions between the two firms, the manufacturer will adopt the agency channel instead when the commission rate is extremely high. Finally, we examine conditions under which the platform has incentives to allow the manufacturer to change from a single-channel to a dual-channel in the base market.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109462"},"PeriodicalIF":9.8,"publicationDate":"2024-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652521","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-08DOI: 10.1016/j.ijpe.2024.109457
Kai Li , Mengqing Zhang , Tao Zhou , Bohai Liu
Smart Connected Products (SCPs) and Digital Services (DSs) play pivotal roles in facilitating the digital and intelligent transformation of the manufacturing industry. In the context of the service-oriented transformation of manufacturing, SCPs are sold by Original Equipment Manufacturers (OEMs) via a retailer, whereas DSs are either provided directly by OEMs or indirectly through the retailer, thereby forming a product-service supply chain. This paper constructs a three-stage dynamic game model and analyzes two DS strategies, i.e., integrated and separated DS strategies, for competing OEMs by integrating and separating manufacturing and DS departments. These strategies encompass four scenarios: both OEMs integrate them, both separate them, and one OEM integrates while the other separates them. We analyze the equilibrium DS levels, the prices of SCPs and DSs, demands, and profits in four scenarios, and explore the service and pricing decisions of supply chain members at equilibrium. The results indicate that OEMs can achieve higher profitability by separating manufacturing and DS departments as competition intensity increases within a certain range. Secondly, when both OEMs adopt the same strategy, integration of departments is more profitable if competition is low, whereas separation yields higher profits when competition is intense. Interestingly, two Nash equilibria emerge: an OEM achieves the highest profit by adopting an integrated DS strategy in an asymmetric scenario when competition is weak and digital R&D is challenging. Conversely, both OEMs can reach a Nash equilibrium by separating their departments when competition is intense and digital R&D is relatively simple. Thirdly, from the perspective of the retailer and the entire supply chain, integrating manufacturing-service at both OEMs provides the highest return when competition is low. However, under intense competition, the highest profits are achieved when OEMs adopt different DS strategies. Finally, in a highly competitive market without a retailer, an asymmetric scenario proves most profitable when digital R&D investment is low, whereas separating manufacturing-service yields the highest profits when digital R&D investment is high.
{"title":"Competition and organizational structure co-optimization of OEMs in a product-service supply chain","authors":"Kai Li , Mengqing Zhang , Tao Zhou , Bohai Liu","doi":"10.1016/j.ijpe.2024.109457","DOIUrl":"10.1016/j.ijpe.2024.109457","url":null,"abstract":"<div><div>Smart Connected Products (SCPs) and Digital Services (DSs) play pivotal roles in facilitating the digital and intelligent transformation of the manufacturing industry. In the context of the service-oriented transformation of manufacturing, SCPs are sold by Original Equipment Manufacturers (OEMs) via a retailer, whereas DSs are either provided directly by OEMs or indirectly through the retailer, thereby forming a product-service supply chain. This paper constructs a three-stage dynamic game model and analyzes two DS strategies, i.e., integrated and separated DS strategies, for competing OEMs by integrating and separating manufacturing and DS departments. These strategies encompass four scenarios: both OEMs integrate them, both separate them, and one OEM integrates while the other separates them. We analyze the equilibrium DS levels, the prices of SCPs and DSs, demands, and profits in four scenarios, and explore the service and pricing decisions of supply chain members at equilibrium. The results indicate that OEMs can achieve higher profitability by separating manufacturing and DS departments as competition intensity increases within a certain range. Secondly, when both OEMs adopt the same strategy, integration of departments is more profitable if competition is low, whereas separation yields higher profits when competition is intense. Interestingly, two Nash equilibria emerge: an OEM achieves the highest profit by adopting an integrated DS strategy in an asymmetric scenario when competition is weak and digital R&D is challenging. Conversely, both OEMs can reach a Nash equilibrium by separating their departments when competition is intense and digital R&D is relatively simple. Thirdly, from the perspective of the retailer and the entire supply chain, integrating manufacturing-service at both OEMs provides the highest return when competition is low. However, under intense competition, the highest profits are achieved when OEMs adopt different DS strategies. Finally, in a highly competitive market without a retailer, an asymmetric scenario proves most profitable when digital R&D investment is low, whereas separating manufacturing-service yields the highest profits when digital R&D investment is high.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109457"},"PeriodicalIF":9.8,"publicationDate":"2024-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652518","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-07DOI: 10.1016/j.ijpe.2024.109467
Leeya Hendricks , Paul Matthyssens , Christian Kowalkowski
Increasingly, digital platforms connect suppliers, customers, and other ecosystem parties, facilitating the introduction of various Platform-as-a-Service (PaaS) offerings. This study examines the co-evolution of actor engagement (AE), reflecting actors’ dispositions to invest resources in interactions, and value co-creation (VCC), demonstrated through reciprocal resource integration. The focus is on PaaS initiatives in the asset management industry. Using a comparative case study approach, we analyze two fintech-generated PaaS offerings: a freemium model and a subscription-based model. Our findings reveal distinct pathways for platform development and scaling, driven by the interplay between AE and VCC. The freemium model fosters a “viral” community-building path, where early VCC serves as the engine for AE-VCC co-evolution. Conversely, the subscription model follows a “controlled” ecosystem-building path, with AE driving the process. We observe a gradual involvement of additional ecosystem partners, leading to upgraded solutions, expanded PaaS offerings, and platform upscaling. We identify key factors influencing these dynamics, including business model characteristics, actor roles, and feedback loops. Our study contributes to the literature on digital servitization and platform ecosystems by highlighting the importance of integrating AE and VCC practices to enhance platform utilization and scalability. We propose a framework and research propositions to guide future studies on PaaS development in complex, institutionalized industries. These insights also provide implications for managers aiming to implement effective PaaS strategies and foster innovation in the financial services sector.
{"title":"The co-evolution of actor engagement and value co-creation on digital platforms","authors":"Leeya Hendricks , Paul Matthyssens , Christian Kowalkowski","doi":"10.1016/j.ijpe.2024.109467","DOIUrl":"10.1016/j.ijpe.2024.109467","url":null,"abstract":"<div><div>Increasingly, digital platforms connect suppliers, customers, and other ecosystem parties, facilitating the introduction of various Platform-as-a-Service (PaaS) offerings. This study examines the co-evolution of actor engagement (AE), reflecting actors’ dispositions to invest resources in interactions, and value co-creation (VCC), demonstrated through reciprocal resource integration. The focus is on PaaS initiatives in the asset management industry. Using a comparative case study approach, we analyze two fintech-generated PaaS offerings: a freemium model and a subscription-based model. Our findings reveal distinct pathways for platform development and scaling, driven by the interplay between AE and VCC. The freemium model fosters a “viral” community-building path, where early VCC serves as the engine for AE-VCC co-evolution. Conversely, the subscription model follows a “controlled” ecosystem-building path, with AE driving the process. We observe a gradual involvement of additional ecosystem partners, leading to upgraded solutions, expanded PaaS offerings, and platform upscaling. We identify key factors influencing these dynamics, including business model characteristics, actor roles, and feedback loops. Our study contributes to the literature on digital servitization and platform ecosystems by highlighting the importance of integrating AE and VCC practices to enhance platform utilization and scalability. We propose a framework and research propositions to guide future studies on PaaS development in complex, institutionalized industries. These insights also provide implications for managers aiming to implement effective PaaS strategies and foster innovation in the financial services sector.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109467"},"PeriodicalIF":9.8,"publicationDate":"2024-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652520","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-05DOI: 10.1016/j.ijpe.2024.109449
Xueying Long , Quang Bui , Grady Oktavian , Daniel F. Schmidt , Christoph Bergmeir , Rakshitha Godahewa , Seong Per Lee , Kaifeng Zhao , Paul Condylis
The recent M5 competition has advanced the state-of-the-art in retail forecasting. However, there are important differences between the competition challenge and the challenges we face in a large e-commerce company. The datasets in our scenario are larger (hundreds of thousands of time series), and e-commerce can afford to have a larger stock assortment than brick-and-mortar retailers, leading to more intermittent data. To scale to larger dataset sizes with feasible computational effort, we investigate a two-layer hierarchy, namely the decision level with product unit sales and an aggregated level, e.g., through warehouse-product aggregation, reducing the number of series and degree of intermittency. We propose a top-down approach to forecasting at the aggregated level, and then disaggregate to obtain decision-level forecasts. Probabilistic forecasts are generated under distributional assumptions. The proposed scalable method is evaluated on both a large proprietary dataset, as well as the publicly available Corporación Favorita and M5 datasets. We are able to show the differences in characteristics of the e-commerce and brick-and-mortar retail datasets. Notably, our top-down forecasting framework enters the top 50 of the original M5 competition, even with models trained at a higher level under a much simpler setting.
{"title":"Scalable probabilistic forecasting in retail with gradient boosted trees: A practitioner’s approach","authors":"Xueying Long , Quang Bui , Grady Oktavian , Daniel F. Schmidt , Christoph Bergmeir , Rakshitha Godahewa , Seong Per Lee , Kaifeng Zhao , Paul Condylis","doi":"10.1016/j.ijpe.2024.109449","DOIUrl":"10.1016/j.ijpe.2024.109449","url":null,"abstract":"<div><div>The recent M5 competition has advanced the state-of-the-art in retail forecasting. However, there are important differences between the competition challenge and the challenges we face in a large e-commerce company. The datasets in our scenario are larger (hundreds of thousands of time series), and e-commerce can afford to have a larger stock assortment than brick-and-mortar retailers, leading to more intermittent data. To scale to larger dataset sizes with feasible computational effort, we investigate a two-layer hierarchy, namely the decision level with product unit sales and an aggregated level, e.g., through warehouse-product aggregation, reducing the number of series and degree of intermittency. We propose a top-down approach to forecasting at the aggregated level, and then disaggregate to obtain decision-level forecasts. Probabilistic forecasts are generated under distributional assumptions. The proposed scalable method is evaluated on both a large proprietary dataset, as well as the publicly available Corporación Favorita and M5 datasets. We are able to show the differences in characteristics of the e-commerce and brick-and-mortar retail datasets. Notably, our top-down forecasting framework enters the top 50 of the original M5 competition, even with models trained at a higher level under a much simpler setting.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109449"},"PeriodicalIF":9.8,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652519","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-05DOI: 10.1016/j.ijpe.2024.109464
Nguyen Khoi Tran , Hercules Haralambides , Theo Notteboom , Kevin Cullinane
In March 2021, the six-day blockage of the Suez Canal, caused by the grounding of Evergreen's ‘Ever Given’ containership, created chaos in global trade. The 400-m giant lodged horizontally in a 265-m wide stretch of the canal and the efforts to dislodge and refloat it were unprecedented, involving dredging, towing and lightering. The accident marked one of the most severe disruptions at a key chokepoint in the international shipping network. Using ship voyage data, this research introduces a model to quantify the economic losses of a carrier's containership fleet, caused by such a disruption. The studied impacts include ship costs, environmental costs, and inventory-carrying costs. The model is applied to Maersk Line's East-West network, with 69 vessels (0.84m TEUs) affected by the blockage, either by having to reroute via the Cape of Good Hope or by the delays caused during and after the blockage. The results point to an additional 44,574 tonnes of CO2 produced by the extended trips and extra waiting times of the Maersk ships. The total losses incurred amount to $88.79m, comprising ship costs of $8.04m, environmental costs of $4.46m and, most strikingly of all, inventory-carrying costs of $76.29m, stemming from the high value of goods onboard ($26.5bn). Ship deviations also resulted in revenue losses for the Suez Canal Authority (SCA) of $5.86m, from Maersk crossings alone. Additionally, the research findings shed light on the vulnerabilities of maritime supply chains, particularly concerning prolonged roundtrips, changes to port call patterns, and extended cargo delivery times.
{"title":"The costs of maritime supply chain disruptions: The case of the Suez Canal blockage by the ‘Ever Given’ megaship","authors":"Nguyen Khoi Tran , Hercules Haralambides , Theo Notteboom , Kevin Cullinane","doi":"10.1016/j.ijpe.2024.109464","DOIUrl":"10.1016/j.ijpe.2024.109464","url":null,"abstract":"<div><div>In March 2021, the six-day blockage of the Suez Canal, caused by the grounding of Evergreen's ‘Ever Given’ containership, created chaos in global trade. The 400-m giant lodged horizontally in a 265-m wide stretch of the canal and the efforts to dislodge and refloat it were unprecedented, involving dredging, towing and lightering. The accident marked one of the most severe disruptions at a key chokepoint in the international shipping network. Using ship voyage data, this research introduces a model to quantify the economic losses of a carrier's containership fleet, caused by such a disruption. The studied impacts include ship costs, environmental costs, and inventory-carrying costs. The model is applied to Maersk Line's East-West network, with 69 vessels (0.84m TEUs) affected by the blockage, either by having to reroute via the Cape of Good Hope or by the delays caused during and after the blockage. The results point to an additional 44,574 tonnes of CO<sub>2</sub> produced by the extended trips and extra waiting times of the Maersk ships. The total losses incurred amount to $88.79m, comprising ship costs of $8.04m, environmental costs of $4.46m and, most strikingly of all, inventory-carrying costs of $76.29m, stemming from the high value of goods onboard ($26.5bn). Ship deviations also resulted in revenue losses for the Suez Canal Authority (SCA) of $5.86m, from Maersk crossings alone. Additionally, the research findings shed light on the vulnerabilities of maritime supply chains, particularly concerning prolonged roundtrips, changes to port call patterns, and extended cargo delivery times.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109464"},"PeriodicalIF":9.8,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652032","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-05DOI: 10.1016/j.ijpe.2024.109459
Jianhu Cai , Zhengang Cao , Jennifer Shang
In this study, we consider a green supply chain (GSC) with one manufacturer producing green products and one retailer implementing the sales effort, and assume that blockchain adoption increases market demand while causing the consumers' privacy concern (CPC) and that the retailer privately knows the CPC level information. Subsequently, we conduct games in three scenarios: (i) no blockchain adoption (N), (ii) blockchain adoption and information symmetry (BS), and (iii) blockchain adoption and information asymmetry (BA). Then, we obtain the manufacturer's optimal contract schemes and the retailer's optimal sales-effort levels in the three scenarios. Further, we analyze the optimal preferences of GSC members for these three scenarios. The results show that: (i) supply disruption occurs in Scenario BA if the probability of the high CPC level is too low, otherwise, the retailer prefers Scenario BA the most; (ii) the manufacturer's optimal ex-ante expected profit in Scenario BA is always lower than that in Scenario BS; (iii) the manufacturer prefers Scenario BS or Scenario BA over Scenario N under specific conditions; and (vi) blockchain adoption can achieve the Pareto improvement of the GSC under specific conditions.
在本研究中，我们考虑了由一家制造商生产绿色产品和一家零售商实施销售工作的绿色供应链（GSC），并假设区块链的采用增加了市场需求，同时引起了消费者的隐私担忧（CPC），且零售商私下知道 CPC 级别的信息。随后，我们在三种情况下进行博弈：(i) 不采用区块链（N）；(ii) 采用区块链且信息对称（BS）；(iii) 采用区块链且信息不对称（BA）。然后，我们得到了三种情况下制造商的最优合同方案和零售商的最优销售努力水平。此外，我们还分析了这三种情况下 GSC 成员的最优偏好。结果表明(i)如果高 CPC 水平的概率过低，则在方案 BA 中会出现供应中断，否则，零售商最偏好方案 BA；(ii)制造商在方案 BA 中的最优事前预期利润总是低于方案 BS；(iii)在特定条件下，制造商偏好方案 BS 或方案 BA 而不是方案 N；(vi)在特定条件下，区块链的采用可以实现 GSC 的帕累托改进。
{"title":"Blockchain adoption in a green supply chain: Considering information asymmetry of consumers’ privacy concern","authors":"Jianhu Cai , Zhengang Cao , Jennifer Shang","doi":"10.1016/j.ijpe.2024.109459","DOIUrl":"10.1016/j.ijpe.2024.109459","url":null,"abstract":"<div><div>In this study, we consider a green supply chain (GSC) with one manufacturer producing green products and one retailer implementing the sales effort, and assume that blockchain adoption increases market demand while causing the consumers' privacy concern (CPC) and that the retailer privately knows the CPC level information. Subsequently, we conduct games in three scenarios: (<em>i</em>) no blockchain adoption (N), (<em>ii</em>) blockchain adoption and information symmetry (BS), and (<em>iii</em>) blockchain adoption and information asymmetry (BA). Then, we obtain the manufacturer's optimal contract schemes and the retailer's optimal sales-effort levels in the three scenarios. Further, we analyze the optimal preferences of GSC members for these three scenarios. The results show that: (<em>i</em>) supply disruption occurs in Scenario BA if the probability of the high CPC level is too low, otherwise, the retailer prefers Scenario BA the most; (<em>ii</em>) the manufacturer's optimal ex-ante expected profit in Scenario BA is always lower than that in Scenario BS; (<em>iii</em>) the manufacturer prefers Scenario BS or Scenario BA over Scenario N under specific conditions; and (<em>vi</em>) blockchain adoption can achieve the Pareto improvement of the GSC under specific conditions.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109459"},"PeriodicalIF":9.8,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652525","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-03DOI: 10.1016/j.ijpe.2024.109446
Reza Alikhani , Amirhossein Ranjbar , S. Ali Torabi , Christopher W. Zobel
Despite the growing research on supply chain resilience (SCR) strategies, a comprehensive performance assessment for implementing multiple strategies simultaneously, considering both positive and negative synergistic effects, is still lacking. Given the complex nature of resilience, it is important for any such assessment to incorporate a multi-dimensional view of resilient behavior. To help address this gap in the literature, we propose an extended slack-based super-efficiency data envelopment analysis for evaluating the performance of SCR strategies when they might be utilized concurrently. The new approach characterizes resilience performance by considering the cost of implementing a set of resilience strategies (resilience cost) as an input to the assessment process, and by considering (1) the resulting cost of the disruption, (2) the impact on the service level, and (3) the associated recovery time as outputs. Taken together, these metrics allow for assessing the combined performance of each candidate set of resilience strategies under their synergistic effects. This new and comprehensive approach for resilience assessment is carefully incorporated into a framework that ranks different subsets of relevant strategies for any given supply chain, according to their relative effectiveness across a variety of different disruption scenarios. The proposed decision framework is able to help decision-makers identify the best ensemble of resilience strategies available. A real-world case study is used to illustrate the significant potential of the framework, and a number of important managerial insights are provided to help decision-makers more effectively analyze and implement their own optimal subsets of SCR strategies, particularly in the presence of network quality or budgetary constraints. Theoretical implications include advancing the understanding of multi-strategy interactions in SCR, while practical implications focus on guiding SC managers in selecting and implementing the most effective resilience strategies under various conditions.
{"title":"Performance evaluation of concurrent supply chain resilience strategies","authors":"Reza Alikhani , Amirhossein Ranjbar , S. Ali Torabi , Christopher W. Zobel","doi":"10.1016/j.ijpe.2024.109446","DOIUrl":"10.1016/j.ijpe.2024.109446","url":null,"abstract":"<div><div>Despite the growing research on supply chain resilience (SCR) strategies, a comprehensive performance assessment for implementing multiple strategies simultaneously, considering both positive and negative synergistic effects, is still lacking. Given the complex nature of resilience, it is important for any such assessment to incorporate a multi-dimensional view of resilient behavior. To help address this gap in the literature, we propose an extended slack-based super-efficiency data envelopment analysis for evaluating the performance of SCR strategies when they might be utilized concurrently. The new approach characterizes resilience performance by considering the cost of implementing a set of resilience strategies (resilience cost) as an input to the assessment process, and by considering (1) the resulting cost of the disruption, (2) the impact on the service level, and (3) the associated recovery time as outputs. Taken together, these metrics allow for assessing the combined performance of each candidate set of resilience strategies under their synergistic effects. This new and comprehensive approach for resilience assessment is carefully incorporated into a framework that ranks different subsets of relevant strategies for any given supply chain, according to their relative effectiveness across a variety of different disruption scenarios. The proposed decision framework is able to help decision-makers identify the best ensemble of resilience strategies available. A real-world case study is used to illustrate the significant potential of the framework, and a number of important managerial insights are provided to help decision-makers more effectively analyze and implement their own optimal subsets of SCR strategies, particularly in the presence of network quality or budgetary constraints. Theoretical implications include advancing the understanding of multi-strategy interactions in SCR, while practical implications focus on guiding SC managers in selecting and implementing the most effective resilience strategies under various conditions.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109446"},"PeriodicalIF":9.8,"publicationDate":"2024-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652517","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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