Performance of Supply Chain when using selected Coordination Mechanisms

Coordination among supply chain members is essential for better supply chain performance. An effective method to improve supply chain coordination is to implement proper coordination mechanisms. The primary objective of this research is to study the performance of a multi-level supply chain while using selected coordination mechanisms separately, and in combination, under lost sale and back order cases. The coordination mechanisms used in this study are price discount, delay in payment and different types of information sharing. Mathematical modelling and simulation modelling are used in this study to analyse the performance of the supply chain using these mechanisms. Initially, a three level supply chain consisting of a supplier, a manufacturer and a retailer has been used to study the combined effect of price discount and delay in payment on the performance (profit) of supply chain using mathematical modelling. This study showed that implementation of individual mechanisms improves the performance of the supply chain compared to ‘no coordination’. When more than one mechanism is used in combination, performance in most cases further improved. The three level supply chain considered in mathematical modelling was then extended to a three level network supply chain consisting of a four retailers, two wholesalers, and a manufacturer with an infinite part supplier. The performance of this network supply chain was analysed under both lost sale and backorder cases using simulation modelling with the same mechanisms: ‘price discount and delay in payment’ used in mathematical modelling. This study also showed that the performance of the supply chain is significantly improved while using combination of mechanisms as obtained earlier. In this study, it is found that the effect (increase in profit) of ‘delay in payment’ and combination of ‘price discount’ & ‘delay in payment’ on SC profit is relatively high in the case of lost sale. Sensitivity analysis showed that order cost of the retailer plays a major role in the performance of the supply chain as it decides the order quantity of the other players in the supply chain in this study. Sensitivity analysis also showed that there is a proportional change in supply chain profit with change in rate of return of any player. In the case of price discount, elasticity of demand is an important factor to improve the performance of the supply chain. It is also found that the change in permissible delay in payment given by the seller to the buyer affects the SC profit more than the delay in payment availed by the buyer from the seller. In continuation of the above, a study on the performance of a four level supply chain consisting of a manufacturer, a wholesaler, a distributor and a retailer with ‘information sharing’ as coordination mechanism, under lost sale and backorder cases, using a simulation game with live players has been conducted. In this study, best performance is obtained in the case of sharing ‘demand and supply chain performance’ compared to other seven types of information sharing including traditional method. This study also revealed that effect of information sharing on supply chain performance is relatively high in the case of lost sale than backorder. The in depth analysis in this part of the study showed that lack of information sharing need not always be resulting in bullwhip effect. Instead of bullwhip effect, lack of information sharing produced a huge hike in lost sales cost or backorder cost in this study which is also not favorable for the supply chain. Overall analysis provided the extent of improvement in supply chain performance under different cases. Sensitivity analysis revealed useful insights about the decision variables of supply chain and it will be useful for the supply chain management practitioners to take appropriate decisions.

Management approaches in organic potato and tomato production

The presented thesis considered three different system approach topics to ensure yield and plant health in organically grown potatoes and tomatoes. The first topic describes interactions between late blight (Phytophthora infestans) incidence and soil nitrogen supply on yield in organic potato farming focussing in detail on the yield loss relationship of late blight based on results of several field trials. The interactive effects of soil N-supply, climatic conditions and late blight on the yield were studied in the presence and absence of copper fungicides from 2002-2004 for the potato cultivar Nicola. Under conditions of central Germany the use of copper significantly reduced late blight in almost all cases (15-30 %). However, the reductions in disease through copper application did not result in statistically significant yield increases (+0 – +10 %). Subsequently, only 30 % of the variation in yield could be attributed to disease reductions. A multiple regression model (R²Max), however, including disease reduction, growth duration and temperature sum from planting until 60 % disease severity was reached and soil mineral N contents 10 days after emergence could explain 75 % of the observed variations in yield. The second topic describes the effect of some selected organic fertilisers and biostimulant products on nitrogen-mineralization and efficiency, yield and diseases in organic potato and tomato trials. The organic fertilisers Biofeed Basis (BFB, plant derived, AgroBioProducts, Wageningen, Netherlands) and BioIlsa 12,5 Export (physically hydrolysed leather shavings, hair and skin of animals; ILSA, Arizignano, Italy) and two biostimulant products BioFeed Quality (BFQ, multi-compound seaweed extract, AgroBioProducts) and AUSMA (aqueous pine and spruce needle extract, A/S BIOLAT, Latvia), were tested. Both fertilisers supplied considerable amounts of nitrogen during the main uptake phases of the crops and reached yields as high or higher as compared to the control with horn meal fertilisation. The N-efficiency of the tested fertilisers in potatoes ranged from 90 to 159 kg yield*kg-1 N – input. Most effective with tomatoes were the combined treatments of fertiliser BFB and the biostimulants AUSMA and BFQ. Both biostimulants significantly increased the share of healthy fruit and/or the number of fruits. BFQ significantly increased potato yields (+6 %) in one out of two years and reduced R. solani-infestation in the potatoes. This suggests that the biostimulants had effects on plant metabolism and resistance properties. However, no effects of biostimulants on potato late blight could be observed in the fields. The third topic focused on the effect of suppressive composts and seed tuber health on the saprophytic pathogen Rhizoctonia solani in organic potato systems. In the present study 5t ha-1 DM of a yard and bio-waste (60/40) compost produced in a 5 month composting process and a 15 month old 100 % yard waste compost were used to assess the effects on potato infection with R. solani when applying composts within the limits allowed. Across the differences in initial seed tuber infestation and 12 cultivars 5t DM ha-1 of high quality composts, applied in the seed tuber area, reduced the infestation of harvested potatoes with black scurf, tuber malformations and dry core tubers by 20 to 84 %, 20 to 49 % and 38 to 54 %, respectively, while marketable yields were increased by 5 to 25 % due to lower rates of wastes after sorting (marketable yield is gross yield minus malformed tubers, tubers with dry core, tubers with black scurf > 15% infested skin). The rate of initial black scurf infection of the seed tubers also affected tuber number, health and quality significantly. Compared to healthy seed tubers initial black scurf sclerotia infestation of 2-5 and >10 % of tuber surface led in untreated plots to a decrease in marketable yields by 14-19 and 44-66 %, a increase of black scurf severity by 8-40 and 34-86 % and also increased the amount of malformed and dry core tubers by 32-57 and 109-214 %.

Smallholder group certification in Uganda - Analysis of internal control systems in two organic export companies

The organic agricultural sector of Uganda is among the most developed in Africa in terms of its professional institutional network and high growth rates of number of certified farmers and land area. Smallholder farmers are certified organic through contract production for export companies using a group certification scheme (internal control system - ICS). The ICS is a viable and well-accepted tool to certify small-scale producers in developing countries all over the world. Difficulties in certification are still stated to be among the main constraints for Uganda’s organic sector development. Therefore, this paper reports a qualitative case study comprising 34 expert interviews in two organic fresh-produce export companies in central Uganda, aiming to explore the challenges which underlie organic certification with ICS. The study shows that farmers cannot be labelled as ‘organic by default’ but deliberately engage in organic production as a marketing strategy. The small quantities purchased by the organic companies lead to a difficult marketing situation for the farmers, causing production and infiltration risks on the farm level. These risks require increased control that challenges the companies organizationally. The risks and control needs are a reason to involve farmers in ICS procedures and innovatively adapt the ICS by means of a bypass around formal perspective restrictions. The paper discusses different perspectives on risks, risk control and certification.

Is export orientation a major motivator for the adoption of food safety systems in the Turkish dried fig firms?

Food safety management systems (FSMSs) and the scrutinisation of the food safety practices that are intended for adoption on the firm level both offer strategic value to the dried fig sector. This study aims to prove the hypothesis that export orientation is a major motivating force for the adoption of food safety systems in the Turkish dried fig firms. Data were obtained from 91 dried fig firms located in Aydin, Turkey. Interviews were carried out with firms’ managers/owners using a face-to-face questionnaire designed from May to August of 2010. While 36.3 percent of the interviewed firms had adopted one or more systems, the rest had no certification. A binomial logistic econometric model was employed. The parameters that influenced this decision included contractual agreements with other firms, implementation of good practices by the dried fig farmers, export orientation and cost-benefit ratio. Interestingly, the rest of the indicators employed had no statistically significant effect on adoption behaviour. This paper focusses on the export orientation parameter directly in order to test the validity of the main research hypothesis. The estimated marginal effect suggests that when dried fig firms are export-oriented, the probability that these firms will adopt food safety systems goes up by 39.5 percent. This rate was the first range observed among all the marginal probability values obtained and thus verified the hypothesis that export orientation is a major motivator for the adoption of food safety systems in the Turkish dried fig firms.

Varying the dietary supply of C and N to manipulate the manure composition of water buffalo heifers in Oman

Optimizing the composition of manure has the potential to reduce nutrient losses to the environment and to increase crop yields. In this study the effect of dietary ratios of carbon (C) to nitrogen (N) and neutral detergent fibre (NDF) to soluble carbohydrates (SC) on faeces composition of water buffalo heifers was assessed. Two digestibility trials were conducted with 12 animals each, fed one control and four test diets composed to achieve (1) high C/N and high NDF/SC ratios (HH), (2) low C/N and low NDF/SC ratios (LL), (3) high C/N and low NDF/SC ratios (HL) and (4) low C/N and high NDF/SC (LH) ratios. Faecal C/N ratios were generally lower than dietary C/N ratios, but the reduction was especially large for high C/N ratio diets (HH=55 %, HL=51 %). Faecal N concentration was positively correlated (r^2 = 0.6; P < 0.001) with N intake, but the increase in faecal N was more pronounced for diets that supplied low amounts of N. Faecal NDF concentration was positively related to NDF intake (r^2 = 0.42; P < 0.001), as well as the faecal C/N ratio (r^2 = 0.3; P < 0.001). Results demonstrate that C/N ratio and NDF concentration of buffalo manure were affected by diet composition. Diets with high C/N ratio and low NDF/SC ratio are preferable with regard to manure quality, but may not satisfy the nutritional requirements of producing animals, since N concentration in these diets was low and fibre concentration simultaneously high.

Microbial response to restoration of tantalite mine soils in western Rwanda

Artisanal columbite-tantalite (coltan) mining has had negative effects on the rural economy in the great Lakes region of Africa through labor deficits, degradation and loss of farmland, food insecurity, high cost of living, and reduced traditional export crop production alongside secondary impacts that remotely affect the quality of air, water, soil, plants, animals, and human wellbeing. The situation is multifaceted and calls for a holistic approach for short and long-term mitigation of such negative effects. This study focuses on the effects of mine land restoration on soil microbiological quality in the Gatumba Mining District of western Rwanda. Some coltan mine wastelands were afforested with pine and eucalyptus trees while farmers directly cultivated others due to land scarcity. Farmyard manure (FYM) is the sole fertilizer applied on the wastelands although it is insufficient to achieve the desired crop yields. Despite this, several multi-purpose plants such as Tithonia diversifolia, Markhamia lutea, and Canavalia brasiliensis thrive in the area and could supplement FYM. The potential for these “new” amendments to improve soil microbial properties, particularly in the tantalite mine soils was investigated. The specific objectives of the study were to: (a) evaluate the effects of land use on soil microbial indices of the tantalite mine soils; (b) investigate the restorative effects of organic amendments on a Technosol; and (c) estimate the short-term N and P supply potential of the soil amendments in the soils. Fresh soils (0-20 cm) from an unmined native forest, two mine sites afforested with pine and eucalyptus forests (pine and eucalyptus Technosols), an arable land, and two cultivated Technosols (Kavumu and Kirengo Technosols) were analyzed for the physicochemical properties. Afterwards, a 28-day incubation (22oC) experiment was conducted followed by measurements of mineral N, soil microbial biomass C, N, P, and fungal ergosterol contents using standard methods. This was followed by a 12-week incubation study of the arable soil and the Kavumu Technosol amended with FYM, Canavalia and Tithonia biomass, and Markhamia leaf litter after which soil microbial properties were measured at 2, 8, and 12 weeks of incubation. Finally, two 4-week incubation experiments each were conducted in soils of the six sites to estimate (i) potential mineralizable N using a soil-sand mixture (1:1) amended with Canavalia and goat manure and (ii) P mineralization mixtures (1:1) of soil and anion exchange resins in bicarbonate form amended with Tithonia biomass and goat manure. In study one, afforestation increased soil organic carbon and total N contents in the pine and eucalyptus Technosols by 34-40% and 28-30%, respectively of that in the native forest soil. Consequently, the microbial biomass and activity followed a similar trend where the cultivated Technosols were inferior to the afforested ones. The microbial indices of the mine soils were constrained by soil acidity, dithionite-extractable Al, and low P availability. In study two, the amendments substantially increased C and N mineralization, microbial properties compared with non-amended soils. Canavalia biomass increased CO2 efflux by 340%, net N mineralization by 30-140%, and microbial biomass C and N by 240-600% and 240-380% (P < 0.01), respectively after four weeks of incubation compared with the non-amended soils. Tithonia biomass increased ergosterol content by roughly 240%. The Kavumu Technosol showed a high potential for quick restoration of its soil quality due to its major responses to the measured biological parameters. In study three, Canavalia biomass gave the highest mineralizable N (130 µg g-1 soil, P < 0.01) in the Kavumu Technosol and the lowest in the native forest soil (-20 µg g-1 soil). Conversely, the mineralizable N of goat manure was negative in all soils ranging from -2.5 µg N g-1 to -7.7 µg N g-1 soil except the native forest soil. However, the immobilization of goat manure N in the “cultivated soils” was 30-70% lower than in the “forest soils” signifying an imminent recovery of the amended soils from N immobilization. The mineralization of goat manure P was three-fold that of Tithonia, constituting 61-71% of total P applied. Phosphorus mineralization slightly decreased after four weeks of incubation due to sulfate competition as reflected in a negative correlation, which was steeper in the Tithonia treatment. In conclusion, each amendment used in this research played a unique role in C, N, and P mineralization and contributed substantially to microbial properties in the tantalite mine soils. Interestingly, the “N immobilizers” exhibited potentials for P release and soil organic carbon storage. Consequently, the combined use of the amendments in specific ratios, or co-composting prior to application is recommended to optimize nutrient release, microbial biomass dynamics and soil organic matter accrual. Transport of organic inputs seems more feasible for smallholder farmers who typically manage small field sizes. To reduce acidity in the soils, liming with wood ash was recommended to also improve P availability and enhance soil biological quality, even if it may only be possible on small areas. Further, afforestation with mixed-species of fast-growing eucalyptus and legume or indigenous tree species are suggested to restore tantalite mine wastelands. It is emphasized most of this research was conducted under controlled laboratory conditions, which exclude interaction with environmental variables. Also fine fractions of the amendments were used compared with the usual practice of applying a mixture of predominantly coarser fractions. Therefore, the biological dynamics reported in the studies here may not entirely reflect those of farmers’ field conditions.

Planning and Scheduling Decisions in Supply Chains with Multiple Supply Modes: An Integrated Approach

We address the problem of jointly determining shipment planning and scheduling decisions with the presence of multiple shipment modes. We consider long lead time, less expensive sea shipment mode, and short lead time but expensive air shipment modes. Existing research on multiple shipment modes largely address the short term scheduling decisions only. Motivated by an industrial problem where planning decisions are independent of the scheduling decisions, we investigate the benefits of integrating the two sets of decisions. We develop sequence of mathematical models to address the planning and scheduling decisions. Preliminary computational results indicate improved performance of the integrated approach over some of the existing policies used in real-life situations.

The Complexity of Safety Stock Placement in General-Network Supply Chains

We consider the optimization problem of safety stock placement in a supply chain, as formulated in [1]. We prove that this problem is NP-Hard for supply chains modeled as general acyclic networks. Thus, we do not expect to find a polynomial-time algorithm for safety stock placement for a general-network supply chain.

Technology Supply Chains: An Introductory Essay

This working paper was originally printed in the Working Paper Series of the MIT International Motor Vehicle Program

Estudio de medición de potencial exportador de la empresa de Calzado Manufactura Hortúa Leal (MHL)

Manufacturas Hortúa Leal (MHL) es una PYME familiar dedicada a la producción de calzado y artículos de cuero. Debido a la sobre oferta en el mercado colombiano, la empresa ha perdido clientes importantes y como consecuencia sus ganancias han disminuido considerablemente durante los últimos años. Para garantizar la perdurabilidad de la organización, la gerencia ha propuesto como alternativa la búsqueda de mercados extranjeros para exportar el calzado. El problema radica en la inexperiencia de la empresa en materia de exportación y en la incertidumbre del mercado al que se debe exportar. Este trabajo se enfoca en medir el potencial exportador de la empresa para determinar si está en condiciones de desarrollar un proceso de expansión y examinar a través de un filtro los países candidatos para exportar el calzado.

Tropical Paradise: una propuesta exportadora

El proyecto de grado de Administración de Negocios Internacionales expuesto en este trabajo académico, tiene su marco estructural en la empresa Tropical Paradise, comercializadora de cócteles tropicales liofilizados sin alcohol, con el cual se busca demostrar la factibilidad y viabilidad de que Colombia exporte un producto innovador en contrapuesta de los productos que exporta tradicionalmente a nivel mundial. Dentro del plan exportador de la empresa Tropical Paradise, Alemania será el primer país importador de cócteles tropicales liofilizados sin alcohol y se constituirá como distribuidor del producto al interior del país y a otros países de la Unión Europea.

Análisis de las relaciones bilaterales energéticas entre Rusia y Alemania, y su incidencia en la obtención de ganancias relativas de Rusia sobre Alemania. 2003-2008

La política exterior energética rusa ha logrado direccionar de manera provechosa la producción y exportación de gas natural, de forma que le ha permitido posicionarse dentro del orden energético mundial como una potencia. Además ha construido fuertes relaciones con países dependientes del gas como Alemania, esto ha representado para Rusia la obtención de ganancias relativas en el ámbito político, permitiendo capacidad de interlocución con socios estratégicos dentro de la Unión Europea y en el ámbito económico, manteniendo una oferta estable de gas. El gas natural se configura como una herramienta de poder con importante valor geoestratégico puesto que le ha permitido a las naciones delinear sus políticas energéticas, defender el interés nacional y convertirse en jugadores estratégicos dentro de la estructura geopolítica.

It will be succesful to have a commercial relation between France and Colombia focus on the milk sector ?

Globalization has led to a drastic change on the international trade, this has caused that many countries such as France and Colombia find new business partners. This is the raison because I develop the investigation about How these countries can be integrated commercially in the dairy sector? Colombia and France had active trade relations for more than 8 years, but this has been declining for several factors. In the case of France, it has found that Germany is an excellent producer of raw milk, which can supply domestic demand and can export large quantities with a low price to European countries because of its proximity. For this reason, Colombia is a country that can not compete with Germany directly in raw milk, but I concluded that Colombia could become a major competitor with organic milk. This is the result of a research of the way they raise and feed the cows in the two countries, Colombia is generally on open country and Germany is on cow housing. In Colombia, the country found that Venezuela could offer many benefits in the processing of raw milk, and other processes that require high technology. But today Colombia has had several disputes with Venezuela and many Colombian companies are affected in this sector. Additionally, France is one of the largest producers and distributors of processed milk and its derivatives; it launches annually many manufactured products with high technology. At this point, Colombia can take out the best advantage because it can create an strategic alliance with French companies to bring most innovative and processed products such as cheese and yoghurts. The theoretical framework of this thesis consists on the analysis of competitiveness, because it is relevant to see if these two countries are competitive or if one has the comparative advantage over the other. The related authors are: Michael Porter, Adam Smith and David Ricardo. To complete the theoretical part, we found that France has a comparative advantage over Colombia in this sector thanks to its high technology, and Colombia is not currently competitive in the area of raw milk because the milk price is higher and the distance is a barrier, and it has no technology. But this research indicates that Colombia could become a competitive country selling organic milk.

Effects of In-Kind transfers on female labor supply: evidence from the food supply program comedores comunitarios

En la literatura se argumenta que las transferencias en especie podrían tener efectos positivos sobre la oferta laboral. En este trabajo utilizamos el programa de nutrición de la ciudad de Bogotá, Comedores Comunitarios, para esclarecer dicho punto. El programa otorga un almuerzo diario a las personas pobres que son vecinas de los comedores. Utilizando la técnica de emparejamiento con la Encuesta de Calidad de Vida 2007, una encuesta de corte transversal, se encuentra tanto efectos significativos positivos como negativos en la oferta laboral femenina para diferentes grupos de mujeres (con diferencias en edad, composición del hogar y acceso a redes sociales). Estos resultados son relevantes para entender los incentivos al trabajo heterogéneos generados cuando se aplica esta clase de programas.