Sustainability in Supply Chains with Behavioral Concerns

Loss Aversion Order Strategy in Emergency Procurement during the COVID-19 Pandemic

The COVID-19 pandemic has had a serious impact on firms’ sourcing strategies. Since COVID-19 disrupted the supply chain, firms have had to make emergency purchases from other suppliers. In addition, emergency ordering is one of the most effective strategies to achieve sustainable operations because such a strategy can save inventory costs. We aim to address a retailer’s emergency procurement strategies during the COVID-19 pandemic. We use prospect theory and the newsvendor model to uncover the retailer’s inventory decisions. In our study, we find that retailers have the choice to order items before the selling period at the normal purchase price, and, if available, they can order them before the end of the selling period at the urgent purchase price. We perform a comparison of the optimal ordering policy and margins in this case with the conventional and loss aversion models. The influence of emergency procurement on the optimal order policy and margins is investigated as well. This paper contributes in theory that we innovatively capture the uncertainty of emergency sourcing, which is a feature that has never been considered in current research.

Joint Decisions of Inventory Optimization and Order Allocation for Omni-Channel Multi-Echelon Distribution Network

Firms with omni-channel multi-echelon distribution networks (OMDC) integrate all of their sale channels and distribution echelons to achieve an effective matching of multi-type orders and a shared inventory. However, the high operational cost caused by insufficient use of inventory resources and unreasonable order allocation restricts the sustainable development of firms. To this end, the joint decisions of inventory optimization (IO) and order allocation (OA) are explored to achieve cost-efficient and sustainable omni-channel operations. Specifically, from the perspective of IO, an inventory integrated policy is proposed for online and offline inventory sharing within nodes and lateral transshipment between nodes; from the aspect of OA, an order allocation mechanism is designed for the minimum cost under the influence of multiple factors (inventory replenishment, holding, order delivery distance and time) among different echelon nodes. A joint optimization model of an inventory and orders is therefore developed and is subsequently solved using the Genetic Algorithm (GA). Results obtained show that the proposed strategy has a better performance with regards to operational cost and customer service level and is also more sustainable than alternative strategies. The proposed joint strategy provides a relatively novel approach to realize flexible and sustainable omni-channel distribution systems.

An Analytic Model for Estimating the Economic and Environmental Impact of Food Cold Supply Chain

Cold chain management has gained increasing interest among practitioners, researchers and academics; similarly, sustainability is also proving to be an increasingly critical topic in all supply chains and in cold chains in particular. In line with this, this study proposes a model to estimate the economic and environmental impacts in a food cold supply chain (FCSC). The model intended to estimate the total cost and CO2 emissions of a company operating in the cold supply chain, was carried out in Microsoft Excel™. Specifically, the model reproduces the main FCSC processes, i.e., Product collection, Backroom storage, Product delivery and Reverse logistics. For each process, we have exposed the implemented equations. Results show that the product delivery process is the most critical in both economic and environmental terms. Conversely, product collection and reverse logistics process contribute to the total cost and emission to a limited extent. The results obtained provide useful guidelines for supply chain managers to undertake operation decisions aimed at decreasing the economic and/or environmental impact of a FCSC.

Supply Chain Practitioners’ Perception on Sustainability: An Empirical Study

The sustainability of supply chains is now one of the major global issues due to the vision of the United Nations (UN). By 2030, it is the primary focus of the UN to attain all the seventeen sustainable development goals (SDG). Hence, the primary goal of this study is to examine how practitioners think about sustainable supply chains. Five hypotheses are established to assess the perceptions of supply chain professionals. Forty-two (42) indicators are gathered from the existing literature to establish the survey instrument to collect the responses from supply chain practitioners. Finally, Structural Equation Modeling (SEM) is used to evaluate the mediation effects. It is found that social aspects are significantly impacted by the environmental aspects, as compared to the economic aspects. None of these indicators play any mediation effect, as all three are equally important for the sustainable supply chains.

Big data-driven supply chain and performance: a resource-based view

Purpose

The main objective of this paper is to study the role of supply chain performance (SCP) as a mediator between big data-driven supply chain (BDDSC) and firm sustainable performance. In addition, the role of firm age as a moderator between BDDSC and SCP as well as between SCP and firm sustainable performance has also been explored.

Design/methodology/approach

The 200 managers of medium or senior level positions in micro, small and medium enterprises (MSMEs) located at Delhi-NCR have been contacted. Further, collected data have been confirmed with confirmatory factor analysis (CFA). In this paper, structure equation modeling (SEM) has been employed to empirically check the proposed hypotheses and their relationships.

Findings

The findings confirmed that SCP mediates the link between BDDSC and firm sustainable performance. Additionally, firm age moderates the association between BDDSC and SCP as well as between SCP and firm sustainable performance.

Research limitations/implications

The role of SCP and firm age between BDDSC and sustainable performance have been examined in the context of MSMEs in Delhi-NCR and thereby limit the generalization of results to other industries and country contexts.

Originality/value

The present study adds to the existing literature via recognizing the blackbox using SCP and firm age to comprehend BDDSC and firm sustainable performance relationship.

Main Dimensions in the Building of the Circular Supply Chain: A Literature Review

Circular economy is an alternative to the traditional production model and has therefore attracted a great deal of attention from researchers. The change in the production system is accompanied by new logistical needs related both to resources and waste and to the distribution and recovery of products. The circular supply chain involves return processes and the manufacturer intends to capture additional value in the supply chain. In this paper, value chains have been mapped to visualize the links and interactions between the different stages and actors to understand the complexities of these systems and to make informed decisions. For this reason, and based on thorough literature review, the final objective of this work is to achieve a conceptual framework to study circular supply chain, which uses the main theoretical perspectives in strategic management literature. Four dimensions have been identified to support the development of these new supply chains—greater intensity in the relationships established in the supply chain, adaptation of logistics and organizational, disruptive and smart technologies, and a functioning environment. It can be concluded that to develop a new relationship capacity will allow for reaching more frequent, closer relationships with more actors. These relationships will be developed within an adapted organizational and logistical framework that is framed in new business model archetypes. However, dimensions related to the business environment such as sectoral, legislative, and fiscal frameworks must be incorporated.

Channel Selection and Pricing Decisions Considering Three Charging Modes of Production Capacity Sharing Platform: A Sustainable Operations Perspective

In the context of sharing economy, a manufacturer can source from two alternative channels: sharing and traditional, when facing production capacity constraints and sustainably conscious consumers. The aim of the paper is to analyze channel selection and pricing strategies of the manufacturer for achieving sustainable operations, to investigate the operations of the platform regarding charging modes, access requirements, and commission rates in different stages of development, and to discuss the interaction among all stakeholders for sustainability in the whole system. The game-theoretic approach is adopted. The results provide references for decisions of the manufacturer and surplus production capacity supplier to join in the sharing, as well as corresponding optimal pricing strategies, which guides platforms to keep a balance between profitability and attracting participants by relatively low access requirements and commission rates. Moreover, developing platforms prefer to charge suppliers and set low access requirements while relatively developed platforms tend to charge bilateral sides or manufacturers and set high access requirements. Charging the manufacturer encourages the bilateral participation of the platform most. In addition, as charging mode changes, the trend of changes in consumer surplus and social welfare is the same as that in the market share of products from the sharing channel.

Truck Scheduling at Cross-Docking Terminals: A Follow-Up State-Of-The-Art Review

Recent trends in the management of supply chains have witnessed an increasing implementation of the cross-docking strategy. The cross-docking strategy, being the one that can potentially improve supply chain operations, has received a lot of attention from researchers in recent years, especially over the last decade. Cross-docking involves the reception of inbound products, deconsolidation, sorting, consolidation, and shipping of the consolidated products to the end customers. The number of research efforts, aiming to study and improve the cross-docking operations, increases every year. While some studies discuss cross-docking as an integral part of a supply chain, other studies focus on the ways of making cross-docking terminals more efficient and propose different operations research techniques for various decision problems at cross-docking terminals. In order to identify the recent cross-docking trends, this study performs a state-of-the-art review with a particular focus on the truck scheduling problem at cross-docking terminals. A comprehensive evaluation of the reviewed studies is conducted, focusing on the major attributes of the cross-docking operations. These attributes include terminal shape considered, doors considered, door service mode considered, preemption, internal transportation mode used, temporary storage capacity, resource capacity, objectives considered, and solution methods adopted. Based on findings from the review of studies, some common issues are outlined and future research directions are proposed.