Risk and uncertainty in supply markets and sustainability-related innovation

tentially valuable innovations. In energy policy, much attention is given to analysing and incentivising customer demand, but new technologies also need new supply markets, to provide products and services to build, operate and maintain the innovative technology. This paper addresses the impact of supply constraints on the long-term viability of sustainability related innovations, using the case of energy from waste (EfW). Uncertainties in the pricing and availability of feedstock (i.e. waste) deter potential investors in EfW projects. We draw on prior supply management research to conceptualise the problem, and identify what steps might be taken to address it. Based on this analysis, we propose a research agenda aimed at purchasing and supply scholars and centred on the need to understand better how markets evolve and how stakeholders can (legitimately) influence the evolution of supply markets to support the adoption of sustainability related innovation. Within this broad case, specific themes are recommended for further investigation.

Benefits of retailer-supplier partnership initiatives under time-varying demand:a comparative analytical study

This paper aims to help supply chain managers to determine the value of retailer-supplier partnership initiatives beyond information sharing (IS) according to their specific business environment under time-varying demand conditions. For this purpose, we use integer linear programming models to quantify the benefits that can be accrued by a retailer, a supplier and system as a whole from shift in inventory ownership and shift in decision-making power with that of IS. The results of a detailed numerical study pertaining to static time horizon reveal that the shift in inventory ownership provides system-wide cost benefits in specific settings. Particularly, when it induces the retailer to order larger quantities and the supplier also prefers such orders due to significantly high setup and shipment costs. We observe that the relative benefits of shift in decision-making power are always higher than the shift in inventory ownership under all the conditions. The value of the shift in decision-making power is greater than IS particularly when the variability of underlying demand is low and time-dependent variation in production cost is high. However, when the shipment cost is negligible and order issuing efficiency of the supplier is low, the cost benefits of shift in decision-making power beyond IS are not significant. © 2012 Taylor & Francis.

Reconfiguration of supply chain network:an ISM-based roadmap to performance

Purpose: Short product life cycle and/or mass customization necessitate reconfiguration of operational enablers of supply chain (SC) from time to time in order to harness high levels of performance. The purpose of this paper is to identify the key operational enablers under stochastic environment on which practitioner should focus while reconfiguring a SC network. Design/methodology/approach: The paper used interpretive structural modeling (ISM) approach that presents a hierarchy-based model and the mutual relationships among the enablers. The contextual relationship needed for developing structural self-interaction matrix (SSIM) among various enablers is realized by conducting experiments through simulation of a hypothetical SC network. Findings: The research identifies various operational enablers having a high driving power towards assumed performance measures. In this regard, these enablers require maximum attention and of strategic importance while reconfiguring SC. Practical implications: ISM provides a useful tool to the SC managers to strategically adopt and focus on the key enablers which have comparatively greater potential in enhancing the SC performance under given operational settings. Originality/value: The present research realizes the importance of SC flexibility under the premise of reconfiguration of the operational units in order to harness high value of SC performance. Given the resulting digraph through ISM, the decision maker can focus the key enablers for effective reconfiguration. The study is one of the first efforts that develop contextual relations among operational enablers for SSIM matrix through integration of discrete event simulation to ISM. © Emerald Group Publishing Limited.

Enhanced renewable energy adoption for sustainable development in India:interpretive structural modeling approach

Poverty alleviation and social upliftment of rural India is closely linked with the availability and use of energy for development. At the same time, sustainable supply of clean and affordable renewable energy sources is required if development is to be sustainable, so that it does not cause any environmental problems. The purpose of this paper is to determine the key variables of renewable energy implementation for sustainable development, on which the top management should focus. In this paper, an interpretive structural modeling (ISM) - based approach has been employed to model the implementation variables of renewable energy for sustainable development. These variables have been categorized under ‘enablers’ that help to increase the implementation of renewable energy for sustainable development. A major finding of this research is that public awareness regarding renewable energy for sustainable development is a very significant enabler. In this paper, an interpretation of variables of renewable energy for sustainable development in terms of their driving and dependence powers has been examined. For better results, top management should focus on improving the high-driving power enablers such as leadership, strategic planning, public awareness, top management support, availability of finance, government support, and support from interest groups.

An Investigation into Outsourcing Practice in Ireland:A New Direction in Logistics and Supply Chain Management

Companies are increasingly focusing on the development of core competencies as an integral part of their overall strategy development and implementation. The corollary of this is that functions regarded as being non-core are being outsourced. This paper investigates the case for and against outsourcing and in addition what is happening in Ireland regards outsourcing. Furthermore to analysis of current literature in the field, an Irish-wide postal and e-mail survey, as well as three case studies revealed many interesting facts. The key findings of the work are manufacturing outsourcing is now the most popular function to be outsourced for both small to medium sized enterprises (SMEs) and large enterprises. Large enterprises (LEs) do not prepare or examine hidden costs more than SMEs, nor do they differ much in relation to the use of consultants. Furthermore, the importance of time spent on preparing or producing contract, and the impact the contract can have on the supplier-buyer relation do not differ significantly. It was found that most companies outsourced within Ireland, which led to further investigation in that area. In relation to logistics outsourcing specifically, this has become very important in the supply chain over the last 20 years as an activity that was traditionally handled by firms as a support function. At that time logistics activities such as warehousing, distribution, transportation and inventory management were given low priority compared with other business functions within the organisation. However, since the customer has become more demanding, the logistics function has now become a source of competitive advantage and there has been a growing emphasis on providing good customer service.

Internet-based applications in the agri-food supply chain:a survey on the Greek canning sector

In the agri-food industry, Internet-based applications changed the way companies conduct business mainly by facilitating activities that were already taking place, rather by giving birth to virtual networks creation. Due to the specific characteristics of the sector, Internet's huge potential has not been fully exploited yet, still remaining a new communication tool. This paper aims at giving empirical insights regarding the use of Internet-based applications in the agri-food supply chain, by focusing on the Greek fruit canning sector. In particular, the paper identifies companies' perceptions regarding perceived benefits, constrained factors and motivation factors towards the use of Internet-based applications. Results indicate that companies recognise benefits arising from the use of Internet, however they still use traditional ways when communicating with their partners. Regarding transportation issues, while companies' overall satisfaction is rather moderate and differs significantly from the importance placed on a number of criteria, companies are still sceptical in using Electronic Transportation Marketplace. © 2004 Elsevier Ltd. All rights reserved.

Design and development of logistics workflow systems for demand management with RFID

This paper discusses demand and supply chain management and examines how artificial intelligence techniques and RFID technology can enhance the responsiveness of the logistics workflow. This proposed system is expected to have a significant impact on the performance of logistics networks by virtue of its capabilities to adapt unexpected supply and demand changes in the volatile marketplace with the unique feature of responsiveness with the advanced technology, Radio Frequency Identification (RFID). Recent studies have found that RFID and artificial intelligence techniques drive the development of total solution in logistics industry. Apart from tracking the movement of the goods, RFID is able to play an important role to reflect the inventory level of various distribution areas. In today’s globalized industrial environment, the physical logistics operations and the associated flow of information are the essential elements for companies to realize an efficient logistics workflow scenario. Basically, a flexible logistics workflow, which is characterized by its fast responsiveness in dealing with customer requirements through the integration of various value chain activities, is fundamental to leverage business performance of enterprises. The significance of this research is the demonstration of the synergy of using a combination of advanced technologies to form an integrated system that helps achieve lean and agile logistics workflow.

B2B e-marketplaces in the procurement supply chain of airlines: a strategic direction for the future?:a strategic direction for the future?

With the airline industry experiencing a global economic downturn, B2B e-Business is becoming more and more the focus of airlines’ strategies. More recently, airlines have studied intensively the potential of joint-procurement possibilities and have taken measures in creating consortia-led B2B e-Marketplaces as mediators for aggregating demand and to facilitate transactions. In academic literature, limited academic research has been undertaken in exploring the value creation of B2B e-Marketplace models in the aviation industry. The aim is to conduct a theoretical analysis to explore whether or not e-Marketplaces have the potential to add value to procurement in the aviation industry. The research focuses on the potential of B2B e-Marketplaces in terms of improving an airline’s competitiveness in its procurement value chain. The theoretical framework adopted supports the identification of barriers to success and critical success factors.

The role of academic/industry partnerships in the development of supply chain managers

The need for improvement in the logistics and supply chain management capability of companies in Ireland is becoming increasingly recognised. One of the main bottlenecks currently is the shortage of supply chain management professionals. Education and training has a fundamental role to play if the supply of suitably qualified human resource is to be addressed in a meaningful way. Recent research indicates that demand for people with the right knowledge and skills greatly exceed supply. There are numerous techniques and technologies which can facilitate improvement in a company’s supply chain capability. However, experience has shown that these tools alone can not address the weaknesses – any improvement tool is only as good as a company’s ability to utilise it and effective utilisation depends above all on the knowledge and skill of employees. Education and training is essential in developing the requisite knowledge and skills. Consultants can play a role in terms of providing an objective view of a company’s requirements. But the only way to generate a sustainable competitive advantage is to ensure that the necessary knowledge and skills are available in-house. Indeed, the “consultancy culture” which has developed in many companies is a direct result of this lack of in-house expertise. Given the shortage of suitably qualified and experienced people in the job market, the only way that this problem can be addressed is through effective development of existing staff. This paper describes the partnership model adopted by the NITL to achieve its objective of combining academic excellence with real relevance to commercial needs in its supply chain management development programmes. The Executive Development Programme (EDP) is used to illustrate how the model is implemented.

Coverage versus supply cost in facility location:physics of frustrated spin systems

A comprehensive coverage is crucial for communication, supply, and transportation networks, yet it is limited by the requirement of extensive infrastructure and heavy energy consumption. Here, we draw an analogy between spins in antiferromagnet and outlets in supply networks, and apply techniques from the studies of disordered systems to elucidate the effects of balancing the coverage and supply costs on the network behavior. A readily applicable, coverage optimization algorithm is derived. Simulation results show that magnetized and antiferromagnetic domains emerge and coexist to balance the need for coverage and energy saving. The scaling of parameters with system size agrees with the continuum approximation in two dimensions and the tree approximation in random graphs. Due to frustration caused by the competition between coverage and supply cost, a transition between easy and hard computation regimes is observed. We further suggest a local expansion approach to greatly simplify the message updates which shed light on simplifications in other problems. © 2014 American Physical Society.

Decision support system for vendor managed inventory supply chain:a case study

Vendor-managed inventory (VMI) is a widely used collaborative inventory management policy in which manufacturers manages the inventory of retailers and takes responsibility for making decisions related to the timing and extent of inventory replenishment. VMI partnerships help organisations to reduce demand variability, inventory holding and distribution costs. This study provides empirical evidence that significant economic benefits can be achieved with the use of a genetic algorithm (GA)-based decision support system (DSS) in a VMI supply chain. A two-stage serial supply chain in which retailers and their supplier are operating VMI in an uncertain demand environment is studied. Performance was measured in terms of cost, profit, stockouts and service levels. The results generated from GA-based model were compared to traditional alternatives. The study found that the GA-based approach outperformed traditional methods and its use can be economically justified in small- and medium-sized enterprises (SMEs).

Supply market uncertainty:exploring consequences and responses within sustainability transitions

Often it is commercial, not technological, factors which hinder the adoption of potentially valuable innovations. In energy policy, much attention is given to analysing and incentivising consumer demand for renewable energy, but new technologies may also need new supply markets, to provide products and services to build, operate and maintain the innovative technology. This paper addresses the impact of supply constraints on the long-term viability of sustainability related innovations, using the case of bioenergy from organic waste. Uncertainties in the pricing and availability of feedstock (i.e. waste) may generate market deadlock and deter potential investors. We draw on prior research to conceptualise the problem, and identify what steps might be taken to address it. We propose a research agenda aimed at purchasing and supply scholars and centred on the need to understand better the interplay between market evolution and supply uncertainty and 'market shaping' - how stakeholders can legitimately influence supply market evolution - to support the adoption of sustainability related innovation.

Holonic supply chain:a study from family-based manufacturing perspective

In the contemporary business environment, to adhere to the need of the customers, caused the shift from mass production to mass-customization. This necessitates the supply chain (SC) to be effective flexible. The purpose of this paper is to seek flexibility through adoption of family-based dispatching rules under the influence of inventory system implemented at downstream echelons of an industrial supply chain network. We compared the family-based dispatching rules in existing literature under the purview of inventory system and information sharing within a supply chain network. The dispatching rules are compared for Average Flow Time performance, which is averaged over the three product families. The performance is measured using extensive discrete event simulation process. Given the various inventory related operational factors at downstream echelons, the present paper highlights the importance of strategically adopting appropriate family-based dispatching rule at the manufacturing end. In the environment of mass customization, it becomes imperative to adopt the family-based dispatching rule from the system wide SC perspective. This warrants the application of intra as well as inter-echelon information coordination. The holonic paradigm emerges in this research stream, amidst the holistic approach and the vital systemic approach. The present research shows its novelty in triplet. Firstly, it provides leverage to manager to strategically adopting a dispatching rule from the inventory system perspective. Secondly, the findings provide direction for the attenuation of adverse impact accruing from demand amplification (bullwhip effect) in the form of inventory levels by appropriately adopting family-based dispatching rule. Thirdly, the information environment is conceptualized under the paradigm of Koestler's holonic theory.

On modeling and satisfaction of non-functional requirements using cloud computing

Specification of the non-functional requirements of applications and determining the required resources for their execution are activities that demand a great deal of technical knowledge, frequently resulting in an inefficient use of resources. Cloud computing is an alternative for provisioning of resources, which can be done using either the provider's own infrastructure or the infrastructure of one or more public clouds, or even a combination of both. It enables more flexibly/elastic use of resources, but does not solve the specification problem. In this paper we present an approach that uses models at runtime to facilitate the specification of non-functional requirements and resources, aiming to facilitate dynamic support for application execution in cloud computing environments with shared resources. © 2013 IEEE.

Advances in decision support systems on the endeavour for supply chain optimality

Industry practitioners are seeking to create optimal logistics networks through more efficient decision-making leading to a shift of power from a centralized position to a more decentralized approach. This has led to researchers, exploring with vigor, the application of agent based modeling (ABM) in supply chains and more recently, its impact on decision-making. This paper investigates reasons for the shift to decentralized decision-making and the impact on supply chains. Effective decentralization of decision-making with ABM and hybrid modeling is investigated, observing the methods and potential of achieving optimality.