A lack of visibility into the manufacturer’s production cost information impedes a retailer’s ability to maximize her own profits, especially when market demand is uncertain. The…
Abstract
Purpose
A lack of visibility into the manufacturer’s production cost information impedes a retailer’s ability to maximize her own profits, especially when market demand is uncertain. The purpose of this paper is to investigate the use of an option contract within a one-period two-echelon supply chain in the presence of asymmetric cost information.
Design/methodology/approach
Based on the principal-agent model, the retailer, acting as a Stackelberg leader, offers a menu of option contracts to mitigate the risk of uncertain demand and reveal asymmetric production cost information. The optimal contract in asymmetric and symmetric information scenarios is derived. Finally, the impact of production costs on the optimal contracts and the actors’ profits is explored by numerical experiments.
Findings
By comparing the optimal equilibrium solutions in two scenarios, the authors show that asymmetric cost information has a large impact on the optimal option contract and profits. In addition, information rent is affected by the type differential. The results prove that the level of information asymmetry plays a vital role in option contracts and profits.
Originality/value
Different from the existing literature on private demand information, this paper considers a supply chain with asymmetric cost information in the context of option contracts. Interestingly, not only the production cost but also the probability of a low production cost can affect the option strike price. In addition, from the perspective of the manufacturer, a high cost does not always bring a high information rent. These findings can provide some guidance to decision-makers.
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A.S. Nookabadi and J.E. Middle
The objective of an effective quality assurance system should be to assist a company to satisfy customer needs and expectations while, at the same time, helping to protect the…
Abstract
The objective of an effective quality assurance system should be to assist a company to satisfy customer needs and expectations while, at the same time, helping to protect the company’s interests, ultimately “bottom line” profit. Customer demands and expectations, however, tend to be changeable and manufacturing companies have to be flexible so that they can respond to these changes and continuously satisfy customer demands. Therefore a quality assurance system, as a sub‐system of the manufacturing system, must also be designed to cope with these issues of change. A knowledge‐based decision system having appropriate decision criteria and rules to recommend modules of a quality assurance system appropriate to specific company profiles will therefore be a valuable tool for executives and managers of manufacturing businesses. This paper summarises the results of a study conducted on more than 500 UK companies. The main results are in the form of an algorithm that can be used in the formulation of the knowledge‐based decision system.
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Jiarong Luo, Xiaolin Zhang and Chong Wang
The purpose of this paper is to value put option contracts in hedging the risks in a supply chain consisting of a component supplier with random yield and a manufacturer facing…
Abstract
Purpose
The purpose of this paper is to value put option contracts in hedging the risks in a supply chain consisting of a component supplier with random yield and a manufacturer facing stochastic demand for end products.
Design/methodology/approach
This paper adopts stochastic inventory theory, game theory, optimization theory and algorithm and MATLAB numerical simulation to investigate the manufacturer’s ordering and the supplier’s production strategies, and to study the coordination and optimization strategies in the context of random yield and demand.
Findings
The authors find that put options can not only facilitate the manufacturer’s order but also the supplier’s production, that is, the manufacturer and the supplier can effectively manage their involved risks and earn more expected profits by adopting put options. Further, the authors find that the single put option contract fails to coordinate such a supply chain. However, when combined with a protocol, it is able to coordinate the supply chain.
Originality/value
This paper is the first effort to study the intersection of put option contracts and random yield in the presence of a spot market. From a new perspective, the authors explore the supply chain coordination. The authors propose a mechanism to coordinate the supply chain under put option contracts.
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A.S. Nookabadi and J.E. Middle
As one of the major goals in modern industry, quality assurance concerns the whole life cycle of both product and process covering all quality‐based functions. It is also clear…
Abstract
Purpose
As one of the major goals in modern industry, quality assurance concerns the whole life cycle of both product and process covering all quality‐based functions. It is also clear that, in order to design and manufacture the right products for customers, there is a strong need for an information system to support all the quality‐based functions from the pre‐production stage through to post‐production. Despite the research studies on integrated quality systems (IQS) in recent years, there remains no model for the implementation of IQS. This study aims to address this issue.
Design/methodology/approach
In considering quality assurance as a system within an organisation which itself has other sub‐systems, and referring to the definitions of integration, it is clear that the concept of integration can be applied to this area. The objective of integrated quality assurance information system is to integrate all phases from initial identification to final realisation of requirements and customer expectations in order to achieve maximum effectiveness and full customer quality satisfaction.
Findings
In this paper a schematic model of those essential quality‐based functions that need to take place within any design‐to‐order manufacturing environment are presented. The model collects, distributes, co‐ordinates and analyses information and data throughout all the sub‐sections. To validate the model a prototype test has also been carried out.
Originality/value
This paper is one of the first to provide information and model on all the quality‐based functions from the pre‐production through to post‐production stage.
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Irappa Basappa Hunagund, V. Madhusudanan Pillai and Kempaiah U.N.
The purpose of this paper is to review, evaluate and classify the academic research that has been published in facility layout problems (FLPs) and to analyse how researches and…
Abstract
Purpose
The purpose of this paper is to review, evaluate and classify the academic research that has been published in facility layout problems (FLPs) and to analyse how researches and practices on FLPs are.
Design/methodology/approach
The review is based on 166 papers published from 1953 to 2021 in international peer-reviewed journals. The literature review on FLPs is presented under broader headings of discrete space and continuous space FLPs. The important formulations of FLPs under static and dynamic environments represented in the discrete and continuous space are presented. The articles reported in the literature on various representations of facilities for the continuous space Unequal Area Facility Layout Problems (UA-FLPs) are summarized. Discussed and commented on adaptive and robust approaches for dynamic environment FLPs. Highlighted the application of meta-heuristic solution methods for FLPs of a larger size.
Findings
It is found that most of the earlier research adopted the discrete space for the formulation of FLPs. This type of space representation for FLPs mostly assumes an equal area for all facilities. UA-FLPs represented in discrete space yield irregular shape facilities. It is also observed that the recent works consider the UA-FLPs in continuous space. The solution of continuous space UA-FLPs is more accurate and realistic. Some of the recent works on UA-FLPs consider the flexible bay structure (FBS) due to its advantages over the other representations. FBS helps the proper design of aisle structure in the detailed layout plan. Further, the recent articles reported in the literature consider the dynamic environment for both equal and unequal area FLPs to cope with the changing market environment. It is also found that FLPs are Non-deterministic Polynomial-complete problems, and hence, they set the challenges to researchers to develop efficient meta-heuristic methods to solve the bigger size FLPs in a reasonable time.
Research limitations/implications
Due to the extremely large number of papers on FLPs, a few papers may have inadvertently been missed. The facility layout design research domain is extremely vast which covers other areas such as cellular layouts, pick and drop points and aisle structure design. This research review on FLPs did not consider the papers published on cellular layouts, pick and drop points and aisle structure design. Despite the possibility of not being all-inclusive, the authors firmly believe that most of the papers published on FLPs are covered and the general picture presented on various approaches and parameters of FLPs in this paper are precise and trustworthy.
Originality/value
To the best of the authors’ knowledge, this paper reviews and classifies the literature on FLPs for the first time under the broader headings of discrete space and continuous space representations. Many important formulations of FLPs under static and dynamic environments represented in the discrete and continuous space are presented. This paper also provides the observations from the literature review and identifies the prospective future directions.
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Mauri Kantola and Juha Kettunen
The purpose of this paper is to present a framework combining the approaches of the innovation pedagogy, strategic planning of higher education and the research, development and…
Abstract
Purpose
The purpose of this paper is to present a framework combining the approaches of the innovation pedagogy, strategic planning of higher education and the research, development and innovation (RDI) in order to support the export of higher education.
Design/methodology/approach
The export of education can be included in the framework by taking the innovation pedagogy as a starting point – an approach developed for the universities of applied sciences with the emphasis of efficient leaning in projects and the institution's external impact. Strategic management defines strategic objectives, which take into account the European education policy and the regional and international demand for higher education. The empirical part of the paper is based on the study of the Turku University of Applied Sciences (TUAS) focusing on the networked applied research and development activities and the combination of the education and the RDI activities using learning in the projects approaches.
Findings
The building of the strategic partnerships seems to be one of the main instruments of the export process and to use the support of the external broker organization outside of the universities. The advantages of the student learning in the RDI projects are: the drop‐out rates can be decreased, the length of study can be shortened, the transfer of knowledge can be increased, the supervision of students can be increased, the experience of students from projects increases the employment opportunities and the integrated model of innovation pedagogy can be exported to other countries.
Originality/value
The framework presented in the paper could be developed towards mechanisms of sharing the knowledge concerning different global learning ecosystems.
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The purpose of this paper is to analyse the maintenance of the process‐based quality assurance system in a higher education institution.
Abstract
Purpose
The purpose of this paper is to analyse the maintenance of the process‐based quality assurance system in a higher education institution.
Design/methodology/approach
The paper introduces the process management as the essential element of quality assurance in higher education and discusses the external quality audit of the quality assurance agency, extends the study to the quality management between the external audits and presents the procedure of internal quality audits. Finally, the results of the study are discussed and summarised. Action research methodology was adopted in this study. The paper shows that the process‐based quality assurance system makes the organisation responsive, agile and enables the achievement of strategic objectives.
Findings
The audit group must first evaluate the necessary improvements in the process. If no improvements are found, the quality deviations must be reported. The audit helps the institution take corrective actions to amend the process descriptions or maintain the processes.
Originality/value
The paper shows that the necessary processes of a higher education institution can be systematically described and audited.
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Abba Kyari Buba, Othman Ibrahim and Hafiz Muhammad Faisal Shehzad
Greenhouse effects and the need for cost savings necessitate that an organization's information technology (IT) managers design IT equipment acquisition and service provisioning…
Abstract
Purpose
Greenhouse effects and the need for cost savings necessitate that an organization's information technology (IT) managers design IT equipment acquisition and service provisioning policies to reduce carbon footprint and cost. Analyzing the influencing factors that influence stakeholders' attitudes toward adopting green information technology (Green-IT) is an important input in designing these policies. In essence, the research aims to investigate into the relationship between these factors and how they influence policy-makers' behavior in Nigerian manufacturing industries.
Design/methodology/approach
The study develops a model based on the norm activation model (NAM) and the theory of planned behavior (TBP) to investigate the factors that influence decision-makers' intention in adopting Green-IT. A quantitative approach using a survey method is carried out to gather opinions of IT decision-makers using a random sampling technique. Partial least squares structural equation modeling (PLS-SEM) technique is applied to test the structural model and measurement model.
Findings
The study's findings support the use of the behavior model for Green-IT adoption. The study's finding indicates that subjective norms, perceived behavior control (PBC), manager's attitude, personal norm (PN), awareness of adverse consequences and the ascription of responsibility (AR) positively influence intention to adopt Green-IT.
Research limitations/implications
The development and validation of the model are the study's theoretical contributions. The study reviewed the existing literature on the utilization of Green-IT to better understand the intention to adopt Green-IT in Nigeria. It added to the literature by identifying factors that can influence it as well as theoretical underpinnings that can fit the intentions of decision-makers. The scientific community and the industrial companies would have the chance to investigate how this integrated behavioral intention model promotes the use of Green-IT. The research predictors explained about 70.20% of the variance in the behavioral intention to adopt Green-IT.
Practical implications
Research offers practical implications and recommendations for top management practitioners of the manufacturing industries. Business leaders can use the results of this study to develop an effective strategic IT policy for the successful adoption of Green-IT practices for enhanced productivity. The study found that decision-makers' Green-IT attitudes had a substantial impact on their behavioral intention to adopt Green-IT. The study highlighted the importance of the top management attitude toward green products to facilitate the adoption of Green-IT practices in manufacturing industries in Nigeria. Thus, the positive and significant attitude of policy-makers is a necessary tool toward the successful adoption of Green-IT. Therefore, to foster an environmentally sustainability friendly atmosphere, Nigeria's manufacturing industries shall strive to strengthen the decision-makers' attitude toward practicing Green-IT in their respective domains. The findings showed that AR, AQ, environmental concern (EC), perceived behavior and perceived behavior are critical factors to be considered in an organization.
Social implications
According to the findings, an individual's Green-IT attitude has a substantial impact on the environment as social behavior. As a result, the positive and essential attitude of the social sector is a key tool for efficient Green-IT implementation. Nigeria's social activists must try to create awareness campaigns to boost decision-makers' attitudes toward implementing Green-IT in their various regions to develop a friendlier environment. Thus, the identified factors can be of great help to the social sector in designing and implementing successful environmental-friendly policies that could support the adoption of Green-IT practices.
Originality/value
The current research look at Green-IT adoption in manufacturing industries of West African countries. The study offers practical implications and recommendations for top management practitioners of the manufacturing industries, government policy-makers and organizations to enhance the use of Green-IT for mitigating environmental degradation. Recommendations for future research are stated as concluding remarks.
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Ali Heidari, Mohammad Khalilzadeh, Dragan Pamucar and Fatih Ecer
The purpose of this study was to address waste management in the food supply chain (FSC) through the integration of inspection processes in production and distribution centers…
Abstract
Purpose
The purpose of this study was to address waste management in the food supply chain (FSC) through the integration of inspection processes in production and distribution centers under uncertain conditions, aiming to enhance sustainability across environmental, economic and social dimensions. The study introduces a sustainable forward and reverse FSC network using a closed-loop supply chain network approach to prevent the transfer of spoiled products, ultimately providing competitive advantages to stakeholders.
Design/methodology/approach
A robust multi-objective mathematical programming model is proposed, incorporating inspection processes to manage perishable products effectively. The model is solved using the Augmented Epsilon Constraint technique implemented in GAMS software, providing Pareto-optimal solutions tailored to decision-makers’ preferences. Furthermore, the methodology is applied in a real-world case study and solved with the Benders Decomposition algorithm to validate its practicality and effectiveness.
Findings
The proposed methodology effectively minimizes waste and enhances sustainability in the FSC by optimizing decision-making processes under uncertainty. The illustrative examples and real case study demonstrate the efficiency of the model and solution approach, highlighting the significant role of inspection in improving all three dimensions of sustainability.
Practical implications
The study offers valuable insights into and tools for food industry managers to make informed strategic and tactical decisions. By addressing waste management through advanced supply chain modeling, the research helps organizations reduce costs, improve sustainability and gain a competitive edge in the market.
Originality/value
This research is novel in its focus on integrating inspection into the FSC network and addressing uncertainty through robust mathematical modeling. It contributes to the existing literature by demonstrating the impact of inspection on sustainability in FSCs and providing practical solutions for real-world implementation.
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Joanita Kataike, Lusine H. Aramyan, Oliver Schmidt, Adrienn Molnár and Xavier Gellynck
Measuring chain performance which extends beyond supplier–buyer interface is of paramount importance in tracking and tracing the ineffectiveness and inefficiency of the entire…
Abstract
Purpose
Measuring chain performance which extends beyond supplier–buyer interface is of paramount importance in tracking and tracing the ineffectiveness and inefficiency of the entire chain. In response to chain inefficiencies, key performance indicators need to be assessed at different chain levels. Knowledge amongst chain members and evident research on the chain members’ assessment of the chain partners’ contribution to their individual chain performance is equivocal. The purpose of this study is to investigate perceived performance contribution of bilateral relationships of each chain member to its chain partners’ performance across the dairy sector.
Design/methodology/approach
The research was conducted in a dairy agri-food sector in Uganda. A total of 115 triad chains (three matching chain members) were obtained during the period of January to April 2016. Using simple random sampling, the dairy farmers (first suppliers), the cooperative supply managers (second suppliers) and the processors (buyers) were surveyed. Means and standard deviations presented descriptive findings. Furthermore, Kruskal–Wallis and Mann–Whitney U tests were used to assess the differences and similarities of the perceived performance contribution of the individual chain partners.
Findings
The results revealed that each chain members’ perception of chain performance contribution toward the individual chain performance is relatively high. Further, it was found that there were significant differences between the chain members about the perceived chain performance contributions. However, within the internal chain analysis, no significant differences were observed.
Research limitations/implications
Although limited to a single agri-food sector within the Ugandan dairy sector, the findings support evidence from similar agri-food chains worldwide.
Originality/value
Literature shows shortcomings in measuring chain performance at three chain levels. Therefore, this shift from single or dyad to triad chain analysis provides new insights into the field of agri-food chains and supply chain performance in particular. It also provides important empirical results on how each chain member contributes to the chain partners’ performance.