The ripple effect refers to structural dynamics and describes a downstream propagation of the downscaling in demand fulfilment in the supply chain (SC) as a result of a severe disruption. The ...bullwhip effect refers to operational dynamics and amplifies in the upstream direction as ordering oscillations. Being interested in uncovering if the ripple effect can be a driver of the bullwhip effect, we performed a simulation-based study to investigate the interrelations of the structural and operational dynamics in the SC. The results advance our knowledge about both ripple and bullwhip effects and reveal, for the first time, that the ripple effect can be a bullwhip-effect driver, while the latter can be launched by a severe disruption even in the downstream direction. The findings show that the ripple effect influences the bullwhip effect through backlog accumulation over the disruption time as a consequence of non-coordinated ordering and production planning policies. To cope with this effect, a contingent production-inventory control policy is proposed that provides results in favour of information coordination in SC disruption management to mitigate both ripple and bullwhip effects. The SC managers need to take into account the risk of bullwhip effect during the capacity disruption and recovery periods.
Entering the COVID-19 pandemic wreaked havoc on supply chains. Reacting to the pandemic and adaptation in the "new normal" have been challenging tasks. Exiting the pandemic can lead to some ...after-shock effects such as "disruption tails." While the research community has undertaken considerable efforts to predict the pandemic's impacts and examine supply chain adaptive behaviors during the pandemic, little is known about supply chain management in the course of pandemic elimination and post-disruption recovery. If capacity and inventory management are unaware of the after-shock risks, this can result in highly destabilized production–inventory dynamics and decreased performance in the post-disruption period causing product deficits in the markets and high inventory costs in the supply chains. In this paper, we use a discrete-event simulation model to investigate some exit strategies for a supply chain in the context of the COVID-19 pandemic. Our model can inform managers about the existence and risk of disruption tails in their supply chains and guide the selection of post-pandemic recovery strategies. Our results show that supply chains with postponed demand and shutdown capacity during the COVID-19 pandemic are particularly prone to disruption tails. We then developed and examined two strategies to avoid these disruption tails. First, we observed a conjunction of recovery and supply chain coordination which mitigates the impact of disruption tails by demand smoothing over time in the post-disruption period. Second, we found a gradual capacity ramp-up prior to expected peaks of postponed demand to be an effective strategy for disruption tail control.
More firms than ever before are disclosing the provenance of their products, results of product testing, and suppliers’ compliance with labor‐practice norms in their annual reports, sustainability ...reports, and press releases, besides making such information available on third‐party websites. However, collecting and disclosing such information is not only costly but also does not provide clear benefits. While the terminology is not yet standard in the literature, this study distinguishes supply chain transparency from visibility. Here, visibility refers to managers’ efforts to learn more about operations upstream in their supply chains. In contrast, by transparency, we mean a company disclosing information to consumers, investors, and other stakeholders about compliance with consumer‐expected norms in its supply chain operations and products. To motivate further research on supply chain transparency, we first report recent examples of companies providing supply chain transparency. Then we present potential benefits of supply chain visibility and supply chain transparency, respectively, for the company. Finally, we propose topics for research on supply chain transparency arranged by stakeholder.
The purpose of this paper is to evaluate the critical criteria that are influencing the successful implementation of sustainable supply chain practices (SSCP) in the lean‐agile manufacturing firm. ...From the systematic literature review and field professionals' opinion, various criteria that are influencing sustainable supply chain were identified. Data were collected from 16 experts and analysed by an integrated approach of “interpretive structural modeling (ISM) and analytic network process (ANP).” ISM methodology was utilized to get a hierarchical relationship between all criteria. Further, the input to the ANP matrices was taken from the output of ISM, and three organizations that differ in their principle of operation were ranked to find out the extent of implementation of SSCP in the Indian context. The obtained results indicate that “Information technology‐enabled system support (ITS), SC member's awareness and literacy (SAL), Societal issues (SIS), and Scarcity of natural resources (SNR)” were most significant constructs for successful implementation of SSCP for the case organizations.
PurposeExploring ways to acquire, sustain and improve competitive positions in supply chains through information sharing, supply chain visibility, collaboration and agility have been essential for ...scholars and practitioners. Basing on the relational view, resource based view and the extended resource based view, this study assesses the critical role of information sharing in supply chains through emphasizing its effect on supply chain visibility, collaboration, agility and supply chain performance. Particularly, the study proposes that information sharing, supply chain visibility, collaboration and agility collectively have crucial direct and indirect influences on supply chain performance which lead to superior gains, competitiveness and flexibility.Design/methodology/approachThe study adopted a survey research design, a quantitative approach and partial least square structural equation modeling (PLS-SEM) in making data analysis and interpretations due to its suitability for predictive research models.FindingsThe results indicate information sharing positively and significantly influenced supply chain visibility, collaboration, agility and performance. Supply chain visibility presented significant effects on collaboration, agility and performance, while supply chain collaboration and agility had significant impact on supply chain performance. The study findings connote that information sharing is key to enhancing competitive gains and superior supply chain performance.Originality/valueThe study is among the few to probe on how information sharing as a variable interacts with supply chain visibility, collaboration, agility and performance. Although, information sharing has received a lot of attention in supply chains, this study is among the first to capture the study variables in a single model and thus, exposes the vital need for information sharing in improving supply chain performance seeing that it ensured significant and robust impacts on the study variables.
This paper investigates the use of sourcing strategies to achieve supply chain resilience under disruptions. The coping strategies considered are single and multiple sourcing, backup supplier ...contracts, spot purchasing, and collaboration and visibility. Collaboration and visibility, which affect suppliers' recovery capabilities and a buyer's warning capability, have not been similarly modelled in the past. A scenario-based mathematical model is developed such that it considers objectives under uncertainties including disruption risks and operational risks. A broad numerical study examines its output for various risk attitudes in a decision-maker, ranging from risk neutral to risk averse. The sensitivity of procurement strategies to other key parameters such as recovery and warning capabilities is examined. One of the major findings is that buyer's warning capability plays a vital role in enhancing supply chain resilience. We seek to build on these efforts to further support disruption planning and mitigation and to obtain a deeper understanding of the relationship between supply chain characteristics and resilience.
In light of low-frequency/high-impact disruptions, the ripple effect has recently been introduced into academic literature on supply chain management. The ripple effect in the supply chain results ...from disruption propagation from the initial disruption point to the supply, production and distribution networks. While optimisation modelling dominates this research field, the potential of simulation modelling still remains under-explored. The objective of this study is to reveal research gaps that can be closed with the help of simulation modelling. First, recent literature on both optimisation and simulation modelling is analysed. Second, a simulation model for multi-stage supply chain design with consideration of capacity disruptions and experimental results is presented in order to depict major areas of simulation application to the ripple effect modelling. Based on both literature analysis and the modelling example, managerial insights and future research areas are identified in regard to simulation modelling application to the ripple effect analysis in the supply chain. The paper concludes by summarising the most important insights and outlining a future research agenda.
Increasing product proliferation, customisation, competition and customer expectations, as well as supply side disruptions, pose significant challenges to firm operations. Such challenges require ...improved efficiency and resilience in manufacturing, service and supply chain systems. New and innovative flexibility concepts and models offer a prospective route to such operational improvements. Several emerging issues in flexibility, such as risk and uncertainty management, environmental sustainability, optimal strategies under competition, optimal operations with strategic consumer behaviours are being examined in this regard. This overview provides a concise review of these critical research issues, and discusses related papers featured in this special issue. Four major flexibility drivers are classified: disruption risks, resilience and the ripple effect in the supply chain; digitalisation, smart operations and e-supply chains; sustainability and closed-loop supply chains; and supplier integration and behavioural flexibility.
Data sharing between upstream and downstream entities is vital for the success of a supply chain. However, distrust, privacy concerns, data misuse, and the asymmetric valuation of shared data between ...entities often hinder data sharing. This problem calls for a secure, efficient, fair, and trustworthy data‐sharing mechanism. The key to such a successful system hinges on how to trace the data usage, determine the value of the seller’s data to the buyer and then compensate the seller accordingly. To this end, we design and implement a blockchain‐enabled data‐sharing marketplace for a stylized supply chain. We demonstrate how a blockchain can be used to overcome these impediments in supply‐chain data sharing and provide a detailed tutorial with a step‐by‐step implementation for how to set up such a data exchange prototype using Hashgraph.
•This paper examines the role of power relationship and coordination in sustainable supply chain management.•We compare the equilibrium solutions under three different supply chain power ...relationships.•We design a two-part tariff contract to coordinate the sustainable supply chain.•We discuss the trade-offs between the economic and environmental objectives.
This study examines the role of power relationship and coordination in sustainable supply chain management. We investigate a two-echelon supply chain that consists of a manufacturer and a retailer whose Customer demand is carbon emission sensitive. Using the game-theoretic approach, we compare the equilibrium solutions under three supply chain power structures to analyse the effects of power relationship on supply chain decisions and sustainability performance. A two-part tariff contract is designed to coordinate the supply chain. The findings provide important managerial insights that can help firms develop a better understanding of power relationship and coordination in achieving sustainability goals.
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