Strategic Customer Behavior, Commitment, and Supply Chain Performance

It is common for multiple manufacturers to compete in one common market. This paper considers a three-stage supply chain consisting of two competing manufacturers, one distributor, and one retailer. The two manufacturers’ products are substitutable with each other, and both manufacturers sell their products through the common distributor and the common retailer. In this supply chain, three contract mechanisms are discussed. The first one is wholesale-price (WP) contracts. The second one is pairwise revenue-sharing (PRS) contracts indicating that the revenues are shared by all pairs of adjacent entities. The third one is spanning revenue-sharing (SRS) contract indicating that the retailer simultaneously shares his revenues with all supply chain members. First, we discuss the effects of competition between manufacturers on both decentralized and centralized supply chains under the WP contracts. Second, we discuss the coordination mechanisms. The PRS and SRS contracts are used to coordinate the entire supply chain. We present the drawbacks of the PRS contracts in coordinating this competing supply chain and suggest using the SRS contract instead. After an SRS contract is adopted, it is evaluated using the WP contracts as a benchmark. The conditions necessary for an SRS contract to achieve a win–win outcome are then presented. Finally, some numerical examples are provided.

This paper considers two competing supply chains under the cap and trade scheme, each of which consists of one manufacturer and one retailer. In the vertical direction, the manufacturer is the leader of Stackelberg game; in the horizontal direction, there is a parallel competition about the product greening level between manufacturers. We solve and analyze the equilibrium solutions of a centralized supply chain (CSC) and a decentralized supply chain (DSC) respectively. The results show that the greening level of CSC is higher than that of DSC, and the corresponding price is lower than that of DSC. That means the CSC has greater competitive advantage. Numerical analysis reveals that higher emissions reduction investment coefficient leads to lower greening level and higher retail price; higher greening level competition degree leads to lower greening level, whereas affects retail price differently in CSC and DSC.

Impact of RFID technology on supply chain decisions with inventory inaccuracies

Product quality is a key factor affecting consumers’ willingness to buy, providing greater advantages to an enterprise than product price. This paper investigates the impact of two factors, price and quality, on the operational decisions of hybrid competing supply chains. Supply chain I, which consists of a manufacturer and a retailer, is a decentralized structure. Supply chain II, where the manufacturer and retailer are integrated, is a centralized structure. Quality investment and vertical shareholding are introduced into the decentralized supply chain. Models are constructed for three different scenarios, examining whether the manufacturer makes a quality investment and whether the retailer holds shares in the quality investment. By comparing the equilibrium results, solved by the Stackelberg game method, the following conclusions are drawn: (1) Quality investment and shareholding can enhance product quality and price. (2) The retail price in a centralized supply chain is consistently lower than that in a decentralized one, leading to generally higher total profits for centralized supply chain. (3) The total profit of the decentralized supply chain only exceeds that of the centralized ones when the degree of substitution between products is lower than 0.6285 and the quality effort cost factor is within a specific range. While centralized supply chain is generally more advantageous, decentralized supply chain can outperform him under specific conditions.

PurposeThe objectives of this paper were twofold: to explore if there are differences in the perceptions about supply chain performance (SCP) and relationship quality (RQ) among traditional food supply chain members, and to examine the influence of individual relationship variables and aggregated relationship quality on SCP in the traditional food sector.Design/methodology/approachThe survey was conducted in a triadic context with 189 supply chain members (62 suppliers, 65 focal companies and 62 customers) of 65 traditional food supply chains (cheese, olive oil, meat products, brandies and liqueurs, wine and honey) in Croatia. The influence of individual relationship variables and aggregated RQ on perceived SCP was tested using regression analysis.FindingsIt was found that there were no significant differences in the perception of overall SCP and RQ among supply chain members. It was identified that aggregated RQ and all individual relationship variables (trust, commitment, economic satisfaction, non-coercive and coercive power, reputation and conflict) have a significant influence on perceived SCP of the traditional food supply chains.Practical implicationThis study provides a systematic approach to investigate the SCP and supply chain RQ in the traditional food sector. The findings suggest that managers should not neglect any aspect of supply chain relationship to keep high SCP and to be competitive on the market.Originality/valueThis multiple supply chain study makes an original empirical contribution to the supply chain and network management literature by using a triadic approach to investigate RQ and SCP. The influence of individual RQ constructs and aggregated RQ on traditional food SCP examined in this study has not been explored thus far. This study also makes an original empirical contribution by investigating RQ and SCP in the traditional food sector, which has received little attention recently.

Price decision is studied in a risk-averse retailer-dominated dual-channel supply chain, which consisting of one manufacturers and one retailer with both off-line and on-line channels. Firstly, two mean-variance models in centralized and decentralized supply chain are established. Secondly, the optimal solutions under the two decision modes are compared and analyzed. The results shows that the price of dual-channel of retailer decreased with the increase of retailers’ risk- aversion coefficient and the standard deviation of the fluctuation of market demand, while the wholesale price changes is on the contrary; in addition, when the market demand is greater than a certain value, the prices of dual channel are correspondingly higher in decentralized supply chain than in centralized supply chain, and vice versa. In addition, when the retailer’s risk aversion is in a certain interval, the expected utility of the whole supply chain is greater in centralized supply chain than in decentralized decision, and vice versa. Finally, a numerical example is given to verify the above conclusions.

Predicting future promotion information on markdowns, customers can maximize their utilities by deciding when to buy. With this strategic behavior, this paper investigates a downside-risk-averse retailer’s integrated stock and pricing problem using a single case study method. Analyzing effects of the downside risk aversion and strategic customers is our purpose. By exploring a two-phase newsvendor model with a retailer selling to strategic customers, our work determines the downside-risk-averse retailer’s equilibrium ordering level and selling price. On this basis, effects of the downside risk aversion and the strategic behavior on the retailer’s optimum decisions and profit are analyzed. We find that the reverse effect of the strategic behavior can be mitigated by the retailer’s downside risk constraint. We also extend the model to a decentralized supply chain case. It is found that a low (high) downside risk aversion would mean that the supply chain profit in the decentralized case can (cannot) dominate the centralized under some (any) wholesale price contracts when customers are strategic. In addition, for different risk aversions, we also construct contracts to optimize the supply chain profit. Our results will provide reference evidence of making operational management decisions for the downside-risk-averse retailer in the case of strategic customers.

Purpose The purpose of this paper is to investigate the complex interrelationships among the key constructs, supply chain orientation (SCO), supply chain integration (SCI) and supply chain performance (SCP) in Indian manufacturing industries. These relationships have been studied using the relational view (RV) and the knowledge-based view (KBV) theoretical perspectives. Design/methodology/approach The conceptual model was derived from the existing body of knowledge in the supply chain domain. The study is based on a sample size of 122 data collected via face-to-face meetings with the Indian manufacturers using well-established scales. The covariance-based structural equation modeling was used to test the proposed hypotheses. Findings In Indian manufacturing and supply chains, SCO has a positive relationship with SCI and SCP. Moreover, the direct impact of SCO on SCP diminishes when SCI is used as a mediating variable. This study also observes positive impact of: i) SCO on SCP, ii) SCI on SCP and iii) discovery of mediating role of SCI on SCP under the theoretical lenses of RV and KBV. Research limitations/implications Cross-sectional survey of manufacturing firms of one country (using one response per firm) calls for validation covering other parts of the world and demands a longitudinal survey. This research will trigger more scholarly, practice and policy debate among researchers studying Indian and emerging economies context. Practical implications The notion of a holistic view of the SC with a focus on improving the customer value can enhance strategic partnerships among the SC partners (i.e. SCI) and overall SCP. Firms should make efforts to include SCI in SC designs to successfully transform SCO into SCP. Originality/value The originality of the research lies in studying the complex interrelationships among key concepts of SC in a unique Indian manufacturing context. The Indian supply chains operate in a set of unique characteristics, which have been detailed out in this paper. This paper not only establishes the mediating role of SCI for overall SCP in emerging economies but also enhances the scholarly knowledge in the SC domain. Most studies report SCO as a single-order construct, measured by scales comprising of only few items. The second-order SCO measures in this study bring credibility to the findings. Additionally, it contributes to both academicians and practitioners alike in the context of an integrated SC in emerging economies.

Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model

This paper examines a 2-stage supply chain that features a buyback contract between manufacturer and retailer under uncertain demand and consumer returns policy with partial refund amount. The supply chain is optimized using the utility of profit that includes the mean and variance of profit. The optimal values of buyback price, wholesale price, and retailer's order quantity are determined for the coordination situation of the decentralized supply chain when its members are risk averse. Through a computational study, the impacts of the supply chain members' risk attitudes and refund amount on the optimal decisions are investigated for the uncoordinated supply chain where one of the agents makes off-optimal decision.

At present the supply of raw material for the franchise is centralized from the franchise center, while the decentralized franchise is the responsibility of the outlet. This will have an influence on supply chain performance and guarantee of halal franchise business. This study aims to compare franchise performance with a centralized and decentralized supply chain in implementing the Halal Assurance System (SJH). The object of the research is 2 fried chicken processed franchises in Malang City. The study used qualitative and quantitative descriptive analysis methods. Retrieval of data through interviews, observation, and document analysis. The theoretical framework using SJH LPPOM MUI, the Tieman supply chain halal guarantee framework and the Frazelle supply chain performance efficiency framework model. The results of the research show that the halal guarantee of the second supply chain of the franchise has fulfilled the SJP LPPOM MUI, but it is not fully in line with the more detailed guarantee of the Tieman supply chain. Centralized franchise supply chain performance PT. X is more efficient on indicators of approximate accuracy, emergency purchase presentations, total shipping costs, and the cost of the entire warehouse. Decentralized franchise supply chain performance PT. Y is more efficient on purchasing lead time indicators, ordering costs, on time delivery, average delivery time, and order entry time. The two franchises have the same supply chain performance on the order suitability indicator, the percentage of materials sent either, the level of accuracy of inventory, wasted stock damaged, and the value of stock of unused items. Overall, centralized franchises are better than decentralized franchises associated with HAS implementation and supply chain performance to gain consumer trust.

Measuring the influence of digital twins on the sustainability of manufacturing supply chain: A mediating role of supply chain resilience and performance

Purpose Existing supply chain (SC) performance models are not able to cope with the potential of intensive SC digitalisation and establish a relationship between decisions and decision criteria. The purpose of this paper is to develop an integrated knowledge-based system (KBS) that creates a link between decisions and decision criteria (attributes) and evaluates the overall SC performance. Design/methodology/approach The proposed KBS is grounded on the fuzzy analytic hierarchy process (fuzzy AHP), which establishes a relationship between short-term and long-term decisions and SC performance criteria (short-term and long-term) for accurate and integrated Overall SC performance evaluation. Findings The proposed KBS evaluates the overall SC performance, establishes a relationship between decisions (long-term and short-term) and decision criteria of SC functions and provides decision makers with a view of the impact of their short-term or long-term decisions on overall SC performance. The proposed system was implemented in a case company where the authors were able to develop a SC performance monitoring dashboard for the company’s top managers and operational managers. Practical implications The proposed KBS assists organisations and decision makers in evaluating their overall SC performance and helps in identifying underperforming SC functions and their associated criteria. It may also be considered as a tool for benchmarking SC performance against competitors. It can efficiently point to improvement directions and help decision makers improve overall SC performance. Originality/value The proposed KBS provides a holistic and integrated approach, establishes a relationship between decisions and decision criteria and evaluates overall SC performance, which is one of the main limitations in existing supply chain performance measurement systems.

This study aims at investigating the roles of supply chain integration and innovation on supply chain performance through a mediation mechanism of supply chain. This study develops a theoretical framework based on resource-based view and dynamic capability theory. Based on a quantitative study of 214 Saudi hospitals, an empirical analysis was made using a structural equation modelling with AMOS. Results revealed that supply chain integration and innovation positively affect supply chain resilience and performance. In addition, supply chain resilience has a positive and significant relationship with supply chain performance. Most significantly, the relationships of supply chain integration and of innovation to supply chain performance were found to be partially mediated by supply chain resilience. These results showed that integration and innovation have direct effects to improve supply chain performance and indirect ones when hospitals make efforts in developing their resilience. This study is important for top managers of Saudi hospitals to integrate their supply chains and innovate them to improve their resilience and performance.

Supply chain members’ reciprocal altruism and consumers’ quality and service reference effects are important behavioral factors that affect the decision-making of supply chain members. This article incorporates these factors into a product–service supply chain consisting of a manufacturer and a retailer in the online-to-offline (O2O) environment. Based on the inherent dynamics of the model, we construct a differential game model between the manufacturer and the retailer. Based on the Bellman continuous dynamic programming theory, this study analyzes the quality strategy of the manufacturer, the service level strategy of the retailer, and the performance of the supply chain system under three decision-making patterns (decentralization, centralization, and reciprocal altruism) within the O2O framework. The results show that compared with the decentralized decision-making model, reciprocal altruism helps members develop higher quality and service levels, improve brand goodwill, and obtain greater utility. The results are verified by numerical examples, and sensitivity analysis of consumer quality and the service reference effect, channel preference, and members’ reciprocal altruism behavior on the supply chain performance is carried out. The results show: (1) Consumers’ reference effects cause an “anchoring mentality” among consumers, which leads the manufacturer to lower the quality level and the retailer to lower the service level. This hurts the performance of the product–service supply chain. Consumers’ channel preference has an important impact on supply chain members’ strategies and performance. (2) Retailers should encourage consumers to purchase products online and use offline channel services as sales assistance measures to satisfy consumers’ experience utility. (3) As a positive social preference, the supply chain performance under the members’ reciprocal altruism decision-making model is Pareto-improved and receives additional social benefits. (4) Only when the manufacturer and the retailer have pure altruistic preference, that is, minimum return and maximum altruism, the total profit of the supply chain can reach that of the centralized decision-making scenario.