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Article
Publication date: 27 September 2024

Xiaoxiao Wang, Changyong Liang and Jingxian Chen

The pandemic has caused severe disruptions and significant losses in various industries. In particular, the nursing service industry has been greatly affected, leading to…

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Abstract

Purpose

The pandemic has caused severe disruptions and significant losses in various industries. In particular, the nursing service industry has been greatly affected, leading to increased service costs and attrition of nursing service provider (NSP) residents. Although prior studies suggest that outsourcing may mitigate losses from disruptions, there still lacks a detailed analysis of whether and when to adopt such a disruption solution.

Design/methodology/approach

This study develops a two-period game-theoretical model to explore the impacts of demand and cost disruptions caused by the pandemic on NSPs’ operational strategies, suppliers’ strategy choices and equilibrium prices and demand.

Findings

The results present several novel managerial insights. First, we suggest that higher demand and cost disruptions decrease service demand, but do not necessarily prompt an NSP to outsource nursing services. Interestingly, we find that even when the service cost of the outsourcing strategy is low, the NSP may still insist on the in-house strategy. Additionally, the equilibrium strategy does not always result in lower prices and higher demand.

Originality/value

Our findings provide insightful takeaways for NSPs to cope with the pandemic in the nursing service industry. The results also offer theoretical support for other industries to recover from demand and cost disruptions.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

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Article
Publication date: 8 May 2017

Cameron A. MacKenzie and Aruna Apte

The purpose of this paper is to quantify elements that make fresh produce supply chains (FPSCs) vulnerable to disruptions and to quantify the benefits of different disruption

1253

Abstract

Purpose

The purpose of this paper is to quantify elements that make fresh produce supply chains (FPSCs) vulnerable to disruptions and to quantify the benefits of different disruption-management strategies.

Design/methodology/approach

This paper develops a mathematical model of a disruption in a FPSC and analyzes the relationships among variables.

Findings

The model determines the optimal safety stock as a function of the perishability of the produce, the length of time it takes to find the contamination, the level of demand during the disruption, and the amount of produce that can be rerouted. Applying the model to the 2006 E. coli spinach contamination reveals that the drop in customer demand for fresh spinach plays the largest role in Dole losing sales.

Research limitations/implications

The model includes several parameters that may be difficult to estimate. Future models can incorporate uncertainty that is inherent in supply chain disruptions.

Practical implications

The model in this paper can help a supply chain (SC) manager explore the trade-offs of different disruption-management strategies. For example, a SC manager can determine the value of holding additional safety stock vs trying to improve traceability in the SC.

Originality/value

This paper quantifies and models insights delivered in the qualitative analyses of FPSC disruptions. The theoretical contributions include an analysis of the interaction among safety stock, levels of demand, communication, and traceability parameters in order to help SC managers evaluate different strategies to mitigate the effects of contaminated produce.

Details

The International Journal of Logistics Management, vol. 28 no. 2
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 3 January 2020

Jafar Heydari, Amin Aslani and Ali Sabbaghnia

Distribution systems usually utilize both traditional retailing channels in conjunction with e-channels. The purpose of this paper is to investigate a dual-channel supply chain…

468

Abstract

Purpose

Distribution systems usually utilize both traditional retailing channels in conjunction with e-channels. The purpose of this paper is to investigate a dual-channel supply chain, comprising a traditional retailing channel and an e-channel under disruption. By benchmarking against the centralized decision structure, the authors intend to propose a collaboration model to achieve channel coordination as well as more reliable decisions.

Design/methodology/approach

Four different channel disruption scenarios, with customers’ reaction toward disruptions, are examined, and then, optimal pricing decisions for both centralized and decentralized decision-making structures are extracted. Next, a collaboration mechanism based on the dominancy power of channel members is developed to entice all channel members to participate in channel coordination. By benchmarking the proposed collaboration model against both the decentralized/centralized structures a win–win solution is guaranteed for all channel members. In addition, the proposed model ensures more reliable decisions than the centralized structure, as it guarantees less fluctuated income levels.

Findings

This study shows, as the disruption probability grows, the channel profit decreases while the channel-retailing price increases. Furthermore, the exact alignment of the centralized decision-making approach and the proposed collaboration model is not achievable due to the problem infeasibility. Numerical experiments and sensitivity analyses benchmark the performance of the proposed collaboration mechanism against the centralized structure for the full alignment with centralized decision-making approach.

Originality/value

This study contributes to the channel conflict literature as jointly considers pricing decisions, disruptions and coordination. Further, consumers’ reaction toward disruption is analyzed through a transshipment agreement.

Details

Benchmarking: An International Journal, vol. 27 no. 3
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 20 May 2011

Emmett J. Lodree

Planning inventories for emergency supplies such as bottled water, non‐perishable foods, batteries, and flashlights can be challenging for retailers situated within the projected…

4014

Abstract

Purpose

Planning inventories for emergency supplies such as bottled water, non‐perishable foods, batteries, and flashlights can be challenging for retailers situated within the projected path of a severe storm. The retailer's inventory decisions are complicated by the inherent volatility of storm forecasts and the corresponding demand predictions. The purpose of this paper is to explore both proactive and reactive inventory control policies within the context of probable pre‐storm demand surge for a fast‐moving emergency supply item, and identify the conditions that are most conducive to each strategy according to the minimax decision criterion.

Design/methodology/approach

The inventory system is formulated based on an underlying economic order quantity framework. Minimax decision rules are developed analytically. Sensitivity analysis is facilitated by both analytic and numerical methods.

Findings

The conditions that are conducive to a proactive ordering strategy are limited supplier flexibility, acute demand surge, and exorbitant reorder costs; otherwise, the minimax inventory control policy is given by a reactive ordering strategy.

Research limitations/implications

The above‐mentioned findings are based on a stylized inventory model characterized by assumptions that are consistent with the academic literature. In order to assess the implications of these results in practice, the model should be extended according to the relevance of each assumption to specific real‐world inventory systems.

Social implications

Householders preparing for probable evacuation or post‐storm power outages typically overwhelm grocery and home improvement stores during a brief period prior to the impact of an approaching weather system. This phenomenon triggers a temporary spike in demand for several stock keeping units, which is oftentimes accompanied by pervasive inventory shortages that proliferate community vulnerability and engender a sense of disarray throughout the local populace. Effective inventory management of emergency supply items during this period can help alleviate some of these social dilemmas.

Originality/value

Few academic publications address inventory management from the perspective of humanitarian relief. Among existing studies, the emphasis has been coordination of emergency supplies for post‐disaster relief and recovery activities. This paper appears to be the first academic investigation of an inventory system driven by the pre‐storm demand surge for emergency supplies that typically occurs in the presence of an ominous and potentially devastating weather system. Additionally, this study conceivably represents the first minimax distribution free approach to inventory control within the context of humanitarian logistics and disruption management.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 1 no. 1
Type: Research Article
ISSN: 2042-6747

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Article
Publication date: 29 August 2023

Sarin Raju, Rofin T.M., Pavan Kumar S. and Jagan Jacob

In most economies, there are rules from the market regulators or government to sell at an equal wholesale price (EWP). But when one upstream channel is facing a negative demand

136

Abstract

Purpose

In most economies, there are rules from the market regulators or government to sell at an equal wholesale price (EWP). But when one upstream channel is facing a negative demand disruption and another positive, EWP can create extra pressure on the disadvantageous supply chain partner, which faces negative disruption. The purpose of this study is to analyse the impact of EWP and the scope of the discriminatory wholesale price (DWP) during disruptions.

Design/methodology/approach

For the study, the authors used a dual-channel supply chain consisting of a manufacturer, online retailer (OR) and traditional brick-and-mortar (BM) retailer. Stackelberg game is used to model the interaction between the upstream and downstream channel partners, and the horizontal Nash game to analyse the interaction within downstream channel partners. For modelling asymmetric disruption, the authors took instances from the lock-down and post-lock-down periods of the COVID-19 pandemic, where consumers flow from BM retailer to OR store.

Findings

By analysing the disruption period, the authors found that this asymmetric disruption is detrimental to the BM channel, favourable to OR and has no impact on the manufacturer. But with DWP, the authors found that the profit of the BM channel and manufacturer can be increased during disruption. Though the profit of the OR decreased, it was found to be higher than in the pre-disruption period. Under DWP, the consumer surplus increased during disruption, making it favourable for the customers also. Thus, DWP can aid in creating a win-win strategy for all the supply chain partners during asymmetric disruption. Later as an extension to the study, the authors analysed the impact of the consumer transfer factor and found that it plays a crucial role in the optimal decisions of the channel partner during DWP.

Originality/value

Very scant literature analyses the intersection of DWP and disruptions. To the best of the authors’ knowledge, this study, for the first time uses DWP as a tool to help the disadvantageous supply chain partner during asymmetric disruptions. The study findings will assist the government, market regulators and manufacturers in revamping the wholesale pricing policies and strategies to help the disadvantageous supply chain partner during asymmetric disruption.

Details

Journal of Modelling in Management, vol. 19 no. 3
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 22 January 2021

Mahour Mellat Parast and Nachiappan Subramanian

This paper aims to examine the relationship of supply chain disruption risk drivers to supply chain performance and firm performance outcomes.

3678

Abstract

Purpose

This paper aims to examine the relationship of supply chain disruption risk drivers to supply chain performance and firm performance outcomes.

Design/methodology/approach

Four disruption risk drivers for a supply chain are identified, namely, demand disruption risk, supply disruption risk, process disruption risk and environment disruption risk. A cross-sectional survey was developed and data was collected from 315 Chinese firms to determine the relationship of supply chain disruption risks to supply chain performance and firm performance.

Findings

The empirical findings show that supply disruption risks and process disruption risks have a significant impact on supply chain performance. In addition, this paper shows that supply disruptions, demand disruptions and process disruptions are significantly related to firm performance. This paper shows that supply chain disruption risks have different effects on supply chain performance and firm performance. Managers should be aware that disruption risk drivers can have an impact on firm performance that is different from their impact on supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.

Originality/value

This is one of the early studies to examine the effect of supply chain disruption risk drivers on both firm performance and supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.

Details

Supply Chain Management: An International Journal, vol. 26 no. 4
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 30 August 2024

Odai Khamaiseh, Mohammad Alghababsheh, Saowanit Lekhavat and Mushfiqur Rahman

This study examines the impact of inter-organisational justice (i.e. distributive, procedural and interactional) in the buyer–supplier relationship on supply risk and, in turn, on…

93

Abstract

Purpose

This study examines the impact of inter-organisational justice (i.e. distributive, procedural and interactional) in the buyer–supplier relationship on supply risk and, in turn, on a firm’s marketing and financial performance.

Design/methodology/approach

A structured survey was administered both online and in-person to Jordan-based manufacturing companies. The 137 responses received were analysed using partial least structural equation modelling.

Findings

The study found that while establishing both procedural and interactional justice in the relationship has a negative impact on supply risk, promoting distributive justice, surprisingly, has no impact. Moreover, supply risk was found to be detrimental to the firm’s marketing and financial performance.

Research limitations/implications

This study considers only the direct role of inter-organisational justice in reducing supply risk. Future research could enhance our understanding of this role by exploring the underlying mechanisms and conditions that could govern it.

Practical implications

Managers can alleviate supply risk by ensuring procedural and interactional justice in the relationship through involving suppliers in the decision-making processes, consistently adhering to established procedures and communicating transparent and ample information.

Social implications

Addressing supply risk can help in maintaining community resilience and economic stability.

Originality/value

The study highlights inter-organisational justice as a new approach to mitigating supply risk. Moreover, by examining how supply risk can affect a firm’s marketing performance, it also highlights a new implication of supply risk. Furthermore, by exclusively examining the impact of supply risk on a firm’s financial performance, the study provides a more nuanced interpretation of the effect of supply risk and how it can be reduced.

Details

International Journal of Productivity and Performance Management, vol. 74 no. 3
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 19 February 2020

Atanu Chaudhuri, Abhijeet Ghadge, Barbara Gaudenzi and Samir Dani

The purpose of the paper is to develop a conceptual framework for improving the effectiveness of risk management in supply networks following a critical literature review.

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Abstract

Purpose

The purpose of the paper is to develop a conceptual framework for improving the effectiveness of risk management in supply networks following a critical literature review.

Design/methodology/approach

A critical review of 91 scholarly journal articles published between 2000 and 2018 supports the development of an integrated conceptual framework.

Findings

The findings emphasize that supply chain integration (SCI) can have both a positive and negative impact on the effectiveness of risk management in supply networks. It is possible to have a positive effect when SCI can be used to develop competencies in joint risk planning within the organization and with wider supply network members and, in turn, to develop collaborative risk management capabilities. Supply network characteristics can influence whether and the extent to which SCI has a positive or negative impact on risk management effectiveness.

Research implications

The conceptual framework can be used to empirically assess the role of SCI for effective risk management. Dynamic evaluation of the effectiveness of risk management and potential redesign of the supply network by considering other contingent factors are some future research avenues.

Practical implications

There is a need for developing specific competencies in risk planning within organizations and joint risk planning with supply network members which, in turn, can help develop collaborative risk management capabilities to improve the effectiveness of risk management in supply networks. Network characteristics will influence whether and the extent to which SCI results in the effectiveness of risk management.

Originality value

Moving beyond recent (systematic) reviews on supply chain risk management, this study develops a novel conceptual framework interlinking SCI and the effectiveness of risk management while considering network characteristics.

Details

International Journal of Logistics Management, The, vol. 31 no. 1
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 22 November 2023

Chen-hao Wang, Yong Liu and Zi-yi Pan

The paper attempts to discuss the impact of reference price effect on pricing decisions.

349

Abstract

Purpose

The paper attempts to discuss the impact of reference price effect on pricing decisions.

Design/methodology/approach

With the growth of the Internet and e-commerce, more and more customers purchase products in through online channels and choose products by comparing different prices and services, and the reference price effect has an impact on pricing decisions. To investigate the impact of consumers' reference price effect on the dual-channel supply chain, the authors establish a basic model consisting of a single dominant manufacturer and a single downstream retailer, and analyze the optional decisions under different situations and discuss the influence of reference price effect. Finally, a number case verifies the validity and rationality of the proposed model.

Findings

The results show that (1) the reference price effect has varying effects on the price, channel demand and income of manufacturers and retailers in the channel depending on the role of customers' channel preferences. (2) The manufacturer's online channel demand and profits always increase with the reference pricing effect, whereas the retailer's offline demand and profits always decline. (3) When the proportion of consumers preferring offline is higher, the manufacturer's network price and wholesale price increase with the reference price effect, while the retailer's retail price decreases with the reference price effect; when the proportion of consumers preferring offline is lower, the opposite is true, and the centralized decision results are consistent with the decentralized decision results.

Practical implications

This paper can clarify the impact of consumer reference price effects on the operation of dual-channel supply chains, and help inform pricing decisions of manufacturers and retailers in dual-channel supply chains.

Originality/value

The proposed approach can well analyze the impact of consumer reference price effect and give channel their optional decisions.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 5
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 17 April 2020

Hamidreza Panjehfouladgaran and Stanley Frederick W.T. Lim

Reverse logistics (RL), an inseparable aspect of supply chain management, returns used products to recovery processes with the aim of reducing waste generation. Enterprises…

2052

Abstract

Purpose

Reverse logistics (RL), an inseparable aspect of supply chain management, returns used products to recovery processes with the aim of reducing waste generation. Enterprises, however, seem reluctant to apply RL due to various types of risks which are perceived as posing an economic threat to businesses. This paper draws on a synthesis of supply chain and risk management literature to identify and cluster RL risk factors and to recommend risk mitigation strategies for reducing the negative impact of risks on RL implementation.

Design/methodology/approach

The authors identify and cluster risk factors in RL by using risk management theory. Experts in RL and supply chain risk management validated the risk factors via a questionnaire. An unsupervised data mining method, self-organising map, is utilised to cluster RL risk factors into homogeneous categories.

Findings

A total of 41 risk factors in the context of RL were identified and clustered into three different groups: strategic, tactical and operational. Risk mitigation strategies are recommended to mitigate the RL risk factors by drawing on supply chain risk management approaches.

Originality/value

This paper studies risks in RL and recommends risk management strategies to control and mitigate risk factors to implement RL successfully.

Details

Management Decision, vol. 58 no. 7
Type: Research Article
ISSN: 0025-1747

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