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Author: Hongjun Peng
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Capital deficit due to capital constraints is a very common issue in supply chains and suppliers (such as farmers) often face yield uncertainty. A coordination problem for a supply chain with capital constraints and yield uncertainty is considered in this paper. In order to improve the supply chain, a buyback and risk sharing (BBRS) mechanism is proposed, in which the distributor shares the yield uncertainty risk with the supplier by purchasing the overproduced products at the end of the production season, and the supplier buys back the unsold products from the distributor at the end of the sales season. The results indicate that under the BBRS, the profits and the strategies of the supply chain are the same with those under the centralized case. In addition, the proposed BBRS mechanism has a built-in mechanism to allocate the spillover profit between the supplier and the distributor, and the actual allocation may depend on their negotiation skills. The managerial insight is that, for the capital constrained supply chain with yield uncertainty, it can be coordinated if the yield uncertainty risk and the market demand uncertainty risk are shared between the supplier and the distributor.
Author: Hongjun Peng
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Capital deficit due to capital constraints is a very common issue in supply chains and suppliers (such as farmers) often face yield uncertainty. A coordination problem for a supply chain with capital constraints and yield uncertainty is considered in this paper. In order to improve the supply chain, a buyback and risk sharing (BBRS) mechanism is proposed, in which the distributor shares the yield uncertainty risk with the supplier by purchasing the overproduced products at the end of the production season, and the supplier buys back the unsold products from the distributor at the end of the sales season. The results indicate that under the BBRS, the profits and the strategies of the supply chain are the same with those under the centralized case. In addition, the proposed BBRS mechanism has a built-in mechanism to allocate the spillover profit between the supplier and the distributor, and the actual allocation may depend on their negotiation skills. The managerial insight is that, for the capital constrained supply chain with yield uncertainty, it can be coordinated if the yield uncertainty risk and the market demand uncertainty risk are shared between the supplier and the distributor.
Author: Tsan-Ming Choi
Publisher: Springer Science & Business Media
ISBN: 3642192572
Category : Business & Economics
Languages : en
Pages : 651
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Book Description
Channel coordination is a core subject of supply chain management. Over the past decade, much research effort has been devoted to exploring the detailed mechanisms for achieving supply chain coordination under uncertainty, generating many fruitful analytical and empirical results. Despite the abundance of research results, there is an absence of a comprehensive reference source that provides state-of-the-art findings on both theoretical and applied research on the subject. In addition, with the advance of knowledge and technologies, many new topics on supply chain coordination under uncertainty have appeared in recent years. This handbook extensively examines supply chain coordination challenges with a focal point on discovering innovative measures that can help tackle the existing and emerging challenges. The book is organized into five parts, which include chapters on innovative analytical models for coordination, channel power and bargaining, technological advancements and applications, empirical analysis, cases studies and review. This handbook provides new empirical and analytical results with precious insights, which will not only help supply chain agents to understand more about the latest measures for supply chain coordination under uncertainty, but also help practitioners and researchers to know how to improve supply chain performance based on innovative methods.
Author: Josephine Clemens
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Author: Fasheng Xu
Publisher:
ISBN:
Category : Electronic dissertations
Languages : en
Pages : 184
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Book Description
The main purpose of this dissertation is to study the emerging operations issues under financial frictions, in the contexts of supply chain finance and crowdfunding platform; and to identify the implications for individuals and businesses.In Chapter 1, "A Supply Chain Theory of Factoring and Reverse Factoring", we develop a supply chain theory of factoring (recourse and non-recourse) and reverse factoring showing when these post-shipment financing schemes should be adopted and who really benefits from the adoption. Factoring is a financial arrangement where the supplier sells accounts receivable to the factor against a premium, and receives cash for immediate working capital needs. Reverse factoring takes advantage of the credit rating discrepancy between small supplier and large retailer, and enables supplier's factoring at the retailer's rate. Given the supplier's credit rating and the trade credit term, recourse factoring is preferred when the supplier's cash investment return rate is relatively high; non-recourse factoring is preferred within certain medium range; otherwise, factoring should not be adopted. Both factoring schemes, if adopted, benefit both the supplier and the retailer, and thus the overall supply chain. Further, we find that reverse factoring may not be always preferred by suppliers among other short-term financing options (bank loans, recourse and non-recourse factoring). Retailers should only offer reverse factoring to suppliers with low, but above a threshold, to medium cash investment return rates. The optimally designed reverse factoring program can always increase the retailer's profit, but it may leave the supplier indifferent to his current financing option when followed by aggressive payment extension. Interestingly, our results suggest that it is often preferable for the retailer to extend reverse factoring to certain suppliers without any request for payment extension, and leverage the supplier's willingness to carry extra inventory that increases the overall supply chain efficiency. In Chapter 2, "Crowdfunding under Social Learning and Network Externalities", we investigate how the presence of both social learning and network externalities affects the strategic interaction between a crowdfunding firm and forward-looking consumers. In rewards-based crowdfunding, a firm (campaigner) pre-sells a new product and solicits financial contributions from the crowd (consumers) to cover production costs. When a crowdfunding product with uncertain quality is first introduced, consumers may choose to strategically delay their purchase in anticipation of product quality reviews. Our research yields three main insights. First, we find that in the presence of social learning and strong network externalities, an upward-sloping demand curve may arise. This so-called \textit{Veblen effect} occurs due to the interaction between social learning and strong network externalities. Second, we show that network externalities have important implications for the optimal crowdfunding reward choice. In particular, under strong network externalities, the optimal reward will induce all consumers to either adopt the product early or adopt the product late; whereas under weak network externalities, the consumers will possibly adopt the products in different periods. Third, we characterize the optimal reward strategy under financial constraints and quantify its impact on the optimal reward choice and the induced purchase pattern from consumers. These insights provide useful guidance on how firms can exploit the benefits of crowdfunding. In Chapter 3, "Crowdfunding vs. Bank Financing: Effects of Market Uncertainty and Word-of-Mouth Communication", we investigate a firm's optimal funding choice when launching an innovative product to the market with both market uncertainty and word-of-mouth (WoM) communication. Bank financing is a traditional source of capital for small businesses, whereas crowdfunding has recently emerged as an alternative fund-raising solution to support innovative ideas and entrepreneurial ventures. Conceivably, crowdfunding could potentially replace some of the conventional roles of bank financing, but puzzles linger over when crowdfunding is a better funding choice. We characterize the firm's optimal pricing strategies under the two funding choices (i.e., bank financing and crowdfunding), compare their performances, and investigate the corresponding implications on social welfare. Among other results, we find that the firm's optimal funding choice and pricing strategy depend critically on the market uncertainty, the WoM, and the initial investment requirement. More specifically, the firm would adopt intertemporal pricing under crowdfunding, where the exact format is determined by the WoM and market uncertainty; under bank financing, however, the firm should always charge a fixed price invariant to those parameters. Moreover, market uncertainty has a non-monotonic effect on the optimal funding choice: Bank financing is preferred only when the market uncertainty is within an intermediate range. The impact of initial investment requirement on the choice of funding schemes shares qualitatively a similar trend. Finally, contrary to the conventional wisdom, we find that more active social interactions in crowdfunding, although beneficial to the firm, may hurt consumers and even reduce social welfare.
Author: Panos Kouvelis
Publisher: John Wiley and Sons
ISBN: 1118115775
Category : Business & Economics
Languages : en
Pages : 626
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Book Description
A comprehensive, one-stop reference for cutting-edge research in integrated risk management, modern applications, and best practices In the field of business, the ever-growing dependency on global supply chains has created new challenges that traditional risk management must be equipped to handle. Handbook of Integrated Risk Management in Global Supply Chains uses a multi-disciplinary approach to present an effective way to manage complex, diverse, and interconnected global supply chain risks. Contributions from leading academics and researchers provide an action-based framework that captures real issues, implementation challenges, and concepts emerging from industry studies.The handbook is divided into five parts: Foundations and Overview introduces risk management and discusses the impact of supply chain disruptions on corporate performance Integrated Risk Management: Operations and Finance Interface explores the joint use of operational and financial hedging of commodity price uncertainties Supply Chain Finance discusses financing alternatives and the role of financial services in procurement contracts; inventory management and capital structure; and bank financing of inventories Operational Risk Management Strategies outlines supply risks and challenges in decentralized supply chains, such as competition and misalignment of incentives between buyers and suppliers Industrial Applications presents examples and case studies that showcase the discussed methodologies Each topic's presentation includes an introduction, key theories, formulas, and applications. Discussions conclude with a summary of the main concepts, a real-world example, and professional insights into common challenges and best practices. Handbook of Integrated Risk Management in Global Supply Chains is an essential reference for academics and practitioners in the areas of supply chain management, global logistics, management science, and industrial engineering who gather, analyze, and draw results from data. The handbook is also a suitable supplement for operations research, risk management, and financial engineering courses at the upper-undergraduate and graduate levels.
Author: Yahong Zheng
Publisher:
ISBN:
Category :
Languages : en
Pages : 200
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Book Description
Supply chain management involves a wide range of activities. Among most of them, uncertainty exists inherently and always brings some consequence not expected. However, uncertainty is not considered much in conventional supply chain management. In the case where availability of resources is not what we expect, complexity of supply chain management increases. Taking constraints of uncertainty and availability into account, we aim to discuss supply chain management from different aspects. This thesis is an attempt of systematic and complete research from this point and we would like to offer some references to researchers and managers in supply chain. We focus on three classic sources of uncertainty: demand, manufacturing and distribution. For each source of uncertainty, we analyze its cause and its impact to the performance of the supply chain. Uncertainty is specified into concrete classic problem and an approach is proposed to solve it. Furthermore, bi-level newsboy problem as a miniature of supply chain, is focused under double uncertain environment. Treating uncertain variables is actually a treatment on operational level. The methods used offer good demonstration in treating uncertain variables in decision problems.
Author: Changhyun Kim
Publisher:
ISBN:
Category : Business logistics
Languages : en
Pages : 320
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Book Description
The primary objective of this dissertation is to develop analytical models for typical supply chain situations to help supply chain decision-makers under supply yield loss. We derive solution procedures for each model and present several managerial insights obtained from our models through numerical examples. Additionally, this research provides decision-makers insights on how to incorporate uncertainty in demand and supply and shortage information into a mathematical model. This study deals with three forms of integrated cost-profit models under different scenarios including coordination policy and supply yield loss in a two-stage supply chain involving a retailer and a supplier, dealing with a single product under deterministic condition. We compare the profits of the whole supply chain system under the coordinated policy with those of individual decision making approaches and demonstrate the efficiency of coordination. These models attempts to find the optimal solutions for the retailer’s order quantity, quality level, amount of emergency procurement, and the production and shipment decisions of the supplier, so that the resulting joint total profit for the entire supply chain is maximized. We illustrate our model and the potential benefits of outsourcing in a supply chain system through a numerical example. Extending the analyses obtained above, we then develop models for an integrated supplier–retailer supply chain under imperfect production and shortages, with the additional decision variable of market pricing on the part of the retailer. We assume that market demand is sensitive to the retailer’s selling price and study the combined operation and pricing decisions in the supply chain. We develop profit maximization models for the cases of independent and joint optimization. The results of obtained from our analyses demonstrate that the individual profit, as well as joint profit can be increased by our suggested model, under a non-linear price dependent demand function. In addition, the results with retailer-supplier coordination tend to be superior, which leads to illustrate that setting appropriately retailer’s selling price can increase market demand and the profits of both parties, as well as that of the supply chain. Finally, numerical examples are presented to illustrate these models, and the sensitivity analyses of a selected set of model parameters on the total profit is conducted. A major finding of this study is that coordination between the retailer and the supplier improves channel profit significantly. Furthermore, the possibility of external procurement tends to improve total system profitability as the price sensitivity of demand increases.
Author: Lima Zhao
Publisher: Springer
ISBN: 3319766635
Category : Business & Economics
Languages : en
Pages : 192
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Book Description
This textbook presents a coherent and robust structure for integrated risk management in the context of operations and finance. It explains how the operations-finance interface jointly optimizes material and financial flows under intricate risk exposures. The book covers financial flexibility, operational hedging, enterprise risk management (ERM), supply chain risk management (SCRM), integrated risk management (IRM), supply chain finance (SCF), and financial management of supply chain strategies. Both qualitative and quantitative approaches – including conceptualization, theory building, analytical modeling, and empirical research – are used to assess the value creation by integrating operations and finance. “This book provides a comprehensive description of the interactions between finance and operations and of how managers can best make decisions in recognition of these effects.” John R. Birge, University of Chicago“Supply chain finance is an emerging area where innovations can unlock great values to complement the advances in information and physical flows of supply chain.” Hau L. Lee, Stanford University“This book provides an excellent overview of supply chain finance and its most recent advances.” Jan A. Van Mieghem, Northwestern University“This book is indispensable for advanced students as well as practitioners when looking for a pedagogical sound and scientific rigorous approach to Supply Chain Finance.” Ralf W. Seifert, IMD/EPFL“The book advances our knowledge on the interface between operations and finance and provides managerial guidelines for effective risk management in the supply chain.” Xiande Zhao, CEIBS
Author: Jian Li
Publisher: Springer Science & Business Media
ISBN: 1461405114
Category : Business & Economics
Languages : en
Pages : 216
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Book Description
Risk management has become an essential issue in supply chain management, from the modeling of the decision maker's risk preference, and the studies on uncertain elements such as demand, supply, price, lead time, etc., to the consideration of more practical background including cash flow constraints, inventory financing and delayed cash payment. In this new volume, the authors provide a framework to study the interaction of various factors related to risk and their influence on supply chain management. The scope of areas covered includes operations management, decision analysis, and business administration. This book focuses on several key issues of risk management in supply chains. Specifically, an analysis framework is presented for studying the supplier selection problem and identifying the optimal sourcing strategy in a one-retailer two-suppliers supply chain with random yields. The optimal sourcing strategy of a retailer and the pricing strategies of two suppliers under an environment of supply disruption are investigated. Besides, the authors study the dynamic inventory control problems with cash flow constraints, financing decisions as well as delayed cash payment. In addition, originating from the annual international iron ore price negotiation, the authors model the bargaining process to deal with the risk of wholesale price in the game analysis context. Within the three perspectives of risk management in supply chains, the modeling of decision maker's risk preference has been extensively studied and many results have been obtained to guide the practice. However, the analysis on the other two kinds of topics is still in its infancy, and needs more efforts from academia. It is thus the ambition and innovation for this book to contribute on risk management in supply chains in the following ways: (1) characterizing the explicit sourcing strategy (i.e., single sourcing or dual sourcing) to deal with supply disruption risk; (2) introducing the concepts of financial risk measurement by incorporating cash flow constraints, inventory financing and delayed cash payment into inventory management models; and (3) providing insights for the iron ore price negotiation to help steel manufacturers handle the risk of price increase.
Author: Frank H. Knight
Publisher: Cosimo, Inc.
ISBN: 1602060053
Category : Business & Economics
Languages : en
Pages : 401
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Book Description
A timeless classic of economic theory that remains fascinating and pertinent today, this is Frank Knight's famous explanation of why perfect competition cannot eliminate profits, the important differences between "risk" and "uncertainty," and the vital role of the entrepreneur in profitmaking. Based on Knight's PhD dissertation, this 1921 work, balancing theory with fact to come to stunning insights, is a distinct pleasure to read. FRANK H. KNIGHT (1885-1972) is considered by some the greatest American scholar of economics of the 20th century. An economics professor at the University of Chicago from 1927 until 1955, he was one of the founders of the Chicago school of economics, which influenced Milton Friedman and George Stigler.
