Framework for flexibility in dynamic supply chain management

The supply chain is an extremely important and complex system, which is widely related to the social system and the management system. The hierarchical scheduling and production planning of a dynamic supply chain can enable enterprises in the supply chain to obtain, and maintain, stable and lasting competitive advantages; thus, improving the overall competitiveness of the supply chain. Simultaneously, research on supply chains is also a hotspot in system engineering. At present, research on complex supply chain systems with dual channels is insufficient, and analysis of dynamic supply chains with supply failure of goods is rare. In the epidemic era, dynamic supply chain management was affected by the epidemic and became a very challenging topic. The control of the supply chain system under the impact of an epidemic situation is particularly important. This paper focused on H∞ the fault-tolerant control of a complex supply chain system with dual channels. First, from the perspective of engineering practice and green production, we established a new green supply chain model. This supply chain model includes the dual-channel supply of goods and also considers the supply failure of goods. At the same time, production delay and supply delay are also considered in this model. Second, a supply scheduling scheme was designed through cybernetics to ensure the stability of a supply chain with dual channels under supply failure of goods, and we completed supply chain management. Finally, the effectiveness of our results was verified by specific Chinese enterprise data.

Lean is a management philosophy to eliminate waste both in the inside and from the outside of factories. A supply chain strategy is a key issue for the improvement of the outside. Recent information technologies provide even small- and medium-sized supplier companies with a chance for entering into contracts with major supplier companies and large manufacturing companies in different Keiretsu groups, but will give the trouble for surviving in the dynamic supply chain environment at the same time. This chapter proposes a strategy for MTO (Make To Order) companies to find suitable business partners in the dynamic supply chain environment and to enter into proper contracts with the partners as well as to obtain appropriate profits. A supply chain model proposed in the chapter provides a negotiation protocol to determine suitable prices and delivery times for ordered products through the iteration of the negotiation process between the organizations, as well as through the modification processes of production schedules. A two-layered supply chain model is firstly proposed as a basic model for dynamic supply chain management of MTO companies. The model is extended to a three-layered supply chain model for representing the negotiation protocol among multi-layered organizations. A prototype of a supply chain simulation system is developed and computational experiments are carried out to evaluate the effectiveness of changing business partners and negotiating among the partners cooperatively.

PurposeThe purpose of this paper is to analyze whether supply chain (SC) ambidexterity improves supply chain flexibility (SCF) and its impact on SC competence and firm performance. A new measurement instrument for SCF is proposed that takes into account the demands of the environment: SCF fit.Design/methodology/approachA theoretical model is developed to examine the relationships proposed. The hypotheses are tested with data from 302 manufacturing firms using a structural equations model methodology.FindingsThe results show that SC ambidexterity helps to achieve the optimal level of SCF and that supply chain management (SCM) is important to firm performance.Research limitations/implicationsThis paper makes three contributions to the SCM literature: first, it develops the conceptual definition of SC ambidexterity and studies its effects at the SC level; second, it develops a new instrument to measure SCF known as SCF fit; third, it studies both the impact of SCF fit on SC competence and the importance of SC in firm performance.Practical implicationsThis paper develops a measurement instrument that permits managers to diagnose the level of SCF and the correspondence/gap between current and optimal levels and to establish comparisons between different SC. It also indicates the importance of SCM for firm performance and the need to consider the SC as a whole.Originality/valueThis is one of the first studies to analyze ambidexterity in an organizational network like the SC. It shows that exploitation practices do not jeopardize SCF as long as they are accompanied by exploration practices. That is, high levels of exploration and exploitation are compatible in the SC and lead to the optimal level of SCF.

This paper presents a system called SC2 (supply chain smart coordination), a multi-agent system which was developed based on the business intelligence paradigm in order to better support the management of dynamic and multiple supply chains inside a virtual enterprise scenario. SC2 offers an integrated and global environment for coordinating the execution of business processes in the production, distribution and sales chains, according to the virtual enterprise life cycle. Via a lean interface based on XML and CORBA, SC2 can obtain reliable, timely and interoperable information from the supply chain members, comprising a number of heterogeneous information sources and legacy systems. Results are presented and discussed at the end of the paper.

A robust optimization approach to reduce the bullwhip effect of supply chains with vendor order placement lead time delays in an uncertain environment

One of the agricultural sub-sectors that occupy a strategic position in agricultural development is the horticultural sub-sector, with one of its potential commodities being avocado. Avocado is one of the export-based commodities, especially in South OKU Regency, South Sumatra Province. This study aims to obtain an overview of the Avocado Agribusiness Supply Chain management in South OKU Regency. The study was conducted in Warkuk Selatan District, South OKU Regency in February 2022. The research method used was a qualitative descriptive method with a type of data using primary data and secondary data. The data analysis method uses the Food Supply Chain Network (FSCN) method, which illustrates South Oku Regency's avocado supply chain model. The results showed that the Avocado Management Supply Chain Management model with the FSCN framework consisted of four main components: the supply chain structure, the business chain process, supply chain management, and supply chain resources. Avocado supply chain targets are still dominated to meet the domestic market and products in the form of fresh avocados for consumption. Avocado supply chain management comprises election partners, contractual agreements, transaction systems, government support, and supply chain collaboration. The avocado supply chain structure in South OKU Regency consists of farmers, collecting traders, local and non-local traders, retailers, and consumers with respective roles in the supply chain structure. Business processes in avocado supply chain management consist of procurement, replenishment, and customer order cycles. Based on marketing margin analysis, the lowest total marketing margin is found in channel IV, with a margin value of Rp 1,500 per kg. The four avocado marketing channels in South Warkuk Ranau District have Farmer’s Share ≥40%, so it is categorized as an efficient channel.

This article examines the theoretical issues and reasons for the emergence of the concept of supply chain management. The essence and definition of supply chains are disclosed. It is indicated that supply chain management determines the strategy and measures concerning planning, search, production and delivery of goods, logistics is only a part of the supply chain, which focuses on the fact that the right products are in the right place and at the right time. The purpose of the research is to study the principles of supply chain management in modern enterprise logistics, the advantages of this approach and methods to improve it, to show the impact of the COVID-19 pandemic on supply chain management and actions taken by enterprises in the new environment. Five main elements of supply chain management (planning, delivery, manufacturing, delivery, return), without which it is impossible to optimize the work of enterprises, are identified. It has been determined that the effective organization of supply chain management is an important direction of increasing the competitiveness and profitability of enterprises. The main advantages of this management approach and assessment methods (financial, non-financial and quantitative parameters) are specified. The concept of responsible supply chain management, the importance of using this approach by enterprises to support the acquired image in modern conditions of existence are defined. Conditions are presented due to which companies can create a responsibly organized supply chain. The impact of the COVID-19 pandemic on logistics supply and the actions taken by enterprises in the new operating environment are described: improving the flexibility of supply chain strategy, digitalization of the supply chain, building reliable partnerships of supply chain participants. Keywords: logistics, enterprise, supply chain, effective supply chain management, responsible supply chain management.

Resilience enables companies to manage supply chain disruptions and continue delivering their products and services to customers. The purpose of analyzing and managing supply chain resilience is to prevent a transition to an undesirable state, that is, a situation in which failure modes may occur. Therefore, understanding the factors influencing the establishment and enhancement of supply chain resilience is of particular importance to organizational managers. The aim of the present study is to design a resilient supply chain model with a focus on financial outcomes at Mobarakeh Steel Company. The statistical population of this research includes 280 managers and supervisors from Mobarakeh Steel Company. Data collection was conducted through interviews and questionnaires, and inferential statistics along with structural equation modeling were employed to test the hypotheses. The findings of the study revealed that the factors and components influencing supply chain resilience include transformational supply chain leadership, resource-based dynamic capability, digital tools, partner dissatisfaction, customer relationship, communication quality, supply chain flexibility, supply chain robustness, supplier relationship, information processing capability, digital marketing orientation, supply chain reciprocity, knowledge-based dynamic capability, supply chain integration, and environmental dynamism. Among these factors, transformational supply chain leadership, resource-based dynamic capability, digital tools, partner dissatisfaction, customer relationship, communication quality, supply chain flexibility, supply chain robustness, supplier relationship, and information processing capability were found to significantly influence supply chain resilience. Moreover, the results indicated that supply chain resilience has a positive and significant impact on financial performance.

We present a case study about the structural causes of the Bullwhip Effect. We based our research on a set of semi-structured interviews and built up a simulation model to analyse the impact on performance of operational policies used by supply chain managers. The case is SNACKS INC., a Latin American branch of Frito-Lay International. We discuss which policies will require further adjustments in order to fully explode the capabilities of their new Information Systems, and Advanced Planning System module (APS) of their current Enterprise Resource Planning (ERP) structure. This paper exemplifies a new way in which the supply chain structures can be analysed to study the distortions on information and production orders, commonly called the Bullwhip Effect.

Background: The South African public sector faces numerous internal and external risks that limit the performance of its entire supply chain. An understanding of these risks and their effects is an important milestone in overcoming them.Aim: This article tested the relationship between supply chain risks, flexibility and performance in the South African public sector.Method: A survey questionnaire was administered to 307 supply chain practitioners who were based in the public sector in Gauteng. A structural equation modelling procedure was utilised in testing the proposed relationships.Results: The results of the study showed that six supply chain risk factors, namely government policies, supply complexity, availability of skills, supplier performance monitoring, information security and process efficiency exert significant influences on supply chain flexibility. In turn, supply chain flexibility exerts a positive influence on the performance of the public supply chain.Conclusion: Managers in government may be able to improve the public supply chain management function through the suitable management of the supply chain risk factors considered in this study.

КОМПЛЕМЕНТАРНІСТЬ СТРАТЕГІЙ МАРКЕТИНГУ ТА ЛОГІСТИКИ В ЛАНЦЮГУ ПОСТАВОК ТОВАРІВ ПОВСЯКДЕННОГО ПОПИТУ

This study seeks to create a model for the management of the steel production supply chain in South Africa amid the Fourth Industrial Revolution (4IR), tackling persistent interruptions and delays within the supply chain despite current models. A mixed methodology was utilised in the model's development. The qualitative component entailed a Delphi research corroborated by literature to ascertain pertinent hypotheses, whereas the quantitative component validated the model through structural equation modelling (SEM) utilising SmartPLS software. The research delineated a seven-construct framework comprising cooperation, integration, communication, supply chain structure, Fourth Industrial Revolution technology, organisational culture, and trust. The amalgamation of these designs proved enough for improving the efficacy of the steel production supply chain. The research revealed that the use of Fourth Industrial Revolution technologies and the cultivation of a conducive organisational culture are essential for effective supply chain management in the steel manufacturing industry. The research presents a detailed model that facilitates the planning and organisation of steel industry supply networks in South Africa. This approach underscores the necessity of a cooperative organisational culture, client contentment, and the incorporation of Fourth Industrial Revolution technologies. Steel industry stakeholders are urged to implement adaptable supply chain frameworks (lean, agile, leagile) based on project goals. This study enhances theoretical frameworks by highlighting essential features that have not been previously incorporated into supply chain management models for the steel sector, including the integration of Fourth Industrial Revolution technology and organisational culture. It provides actionable insights for stakeholders in steel manufacture, enhancing supply chain performance via the proposed paradigm. The research methodology improves comprehension of supply chain management within the framework of the Fourth Industrial Revolution (4IR).

Currently, the concept of Internet of Things, as well as Industry 4.0 and Smart Manufacturing, are attracting considerable attention. Digital technologies and the industry’s rapid progress have stimulated enormous advances in the development of manufacturing technology. In the era of digitalization, the role of new technologies in enhancing the competitiveness of industries has become more crucial. So these novel technologies have created a new potential of supply chain risks. It mainly includes information and cybersecurity risks. The present paper aims to present a literature review through a bibliometric analysis of related works about risk management in supply chain 4.0. This study discusses the supply chain 4.0 risks. It also provides a framework about Risk management in supply chain 4.0. The suggested work is helpful for academics as well as professionals as it emphasizes the importance of implementing new methodologies of risk management in the age of intense competition. Furthermore, it presents a roadmap to confront new risks facing new interconnected and dynamic supply chains.

Supply chain management is struggling with a bunch of issues that appear during supply chain members coordination. Raising of supply chain complexity leads to the necessity of developing new software applications, which can be used for analysis of supply chain dynamics, storing data about it’s past and present states, predicting future behavior. This paper discusses current challenges in supply chain management and presents a model for the multi-agent framework in order to investigate supply chain dynamics.

The paper presents possible solutions to small farmers in the agricultural sector in a small island setting grappling with challenges of enhancing their local industry and import substitution through a supply-demand chain framework. In 2005, Hawaiian farms produced approximately 363,200 kg of avocados. However, Hawaiian demand for these fruits required an additional 908,000 kg of avocados that were supplied through imports. At the same time, it is worth noting; almost 49% of locally produced avocados did not reach the market. These facts clearly suggest inefficiencies in the local avocado supply chain. Review of the literature on supply chain management suggests a sustainable avocado industry requires an integrated supply and demand chain management system. Hence, a modified conceptual model of supply-chain management called the Supply Demand Integrated Management (SDIM) model is proposed in this paper. Traditional supply chains contain three functional components: supply coordination, physical production and logistic management. In the new model, we propose adding R4D (Research for Development), a public good provided by the government to agricultural industries as an integral part of the supply-demand chain system. It articulates the significance of research and supply chain partnerships between small growers, industry groups, and public agencies. A well-integrated demand/supply chain in the avocado industry allows sharing of vital market information which can contribute to long-term strategic decisions that help local avocado growers increase their competitiveness against foreign imports. It also provides metrics in terms of consumer satisfaction, profitability, competitiveness, self-sufficiency, import substitution and sustainability. The SDIM model as applied to the avocado industry suggests two hypotheses relevant to the current situation. The hypotheses are: (1) There is a lack of coordination between what the farmers are growing and the chefs' (a high-end customer/buyer) preferences; (2) Forming an avocado farmer cooperative will enhance the profitability of local farmers. Survey data was collected from Hawaiian chefs and avocado farmers. Data was analysed using a Duncan multi-range test and a mathematical model, respectively, to test the hypotheses. The test revealed a lack of coordination between what the farmers are growing and buyer preferences. The results from the mathematical model suggested that formation of an avocado marketing cooperative would enhance the profitability of local farmers. Thus, the SDIM framework expands existing body of knowledge about supply chain management and provides useful information to local avocado growers that can help strengthen their supply and demand chain management.