• Title/Summary/Keyword: Supply Chain Contract

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Supply Chain Contract Model with Vague Demand Information (모호한 수요정보에서의 공급망 계약 모델)

  • Kim, Gi-Tae;Park, Jun-Cheul
    • The Journal of Information Systems
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    • v.21 no.2
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    • pp.181-196
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    • 2012
  • 본 논문은 고객의 수요정보에 대해 모호한 정보를 가진 공급자와 구매자 사이의 공급망 계약에 관한 것을 다루고 있는 것으로, 고객 수요에 대한 불확실성은 확률적 프로그래밍 모델에서 공식적으로 다루어져왔다. 확률적 프로그램의 한 가지 핵심적인 가정은 널리 알려져 있는바와 같이 수요에 대한 확률분포가 알려져 있다는 것이다. 그럼에도 불구하고 만약 수요에 대한 정보가 모호하거나 정확하지 않다면 수요에 대한 확률분포가 정확하지 않다는 점이다. 이런 상황에서 퍼지 이론은 수요정보를 나타내는데 유용하다고 할수 있다. 본 논문은 퍼지 랜덤수요변수들을 분산시스템의 공급망 계약에서 다루고 있다. 이 계약은 구매자의 주문량을 조정하는 옵션을 이용한다. 본 연구는 퍼지 랜덤 변수들을 GMIR(Graded Mean Integration Representation)을 이용하여, 알고리즘을 통해 구현함으로써 실증적 결과 값을 제시하고 미래 연구의 확장 가능성을 제시하고 있다.

When VMI with Consignment Brings Benefit to Supply Chain Members?

  • RYU, Chungsuk
    • The Journal of Industrial Distribution & Business
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    • v.12 no.5
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    • pp.7-16
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    • 2021
  • Purpose: This study intends to examine how VMI with consignment performs over time and find out its on-going impacts on the individual supply chain member's achievement. Research design, data, and methodology: This study formulates the mathematical model that represents two-stage supply chain system. By analyzing the numerical examples, this study compares VMI with consignment with the traditional system. Results: VMI with consignment eventually makes higher supply chain profit than the traditional system, even though it's early performance is poor. The influence of VMI with consignment on the performance of the supply chain member is distinct depending on the individual member and time. The consignment may not be helpful to increase the system profit, but it reduces the manufacturer's burden of costs. Conclusions: VMI with consignment improves the supply chain performance after all, and it still takes times until its benefit becomes fully realized. To be a successful collaboration program, VMI with consignment requires a carefully designed incentive scheme that provides the timely compensation to the individual supply chain members. This study also finds out that the consignment contract of this collaboration program plays a role of financially supporting the manufacturer at the early stage of its implementation.

Consignment Review: Investigation into Its Potential as a Supply Chain Collaboration Program

  • Ryu, Chungsuk
    • Journal of Distribution Science
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    • v.12 no.7
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    • pp.89-101
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    • 2014
  • Purpose - This study aims to show that consignments can enable supply chain collaboration, based on the review of selected studies, and aims to investigate its potential to be a better collaboration program, through an analytical comparison with other collaboration initiatives. Research design, data, and methodology - This study uses a literature review on selected studies that researched consignments. In addition, based on the proposed framework, the current consignment process and other well-known collaboration programs are analyzed in terms of three key collaboration aspects. Results - Most studies employ simple research in terms of their purpose and methodology. An analysis with the proposed framework indicates the potential of consignments to foster supply chain collaboration. Conclusions - Based on the literature review, this study suggests that future research needs to aim for diverse research goals and conduct sophisticated research on consignments. An analysis with the proposed framework shows that consignments would be more effective for supply chain collaboration if active information sharing and joint decision-making are implemented.

Designing a Coordinated Setup Cost Reduction Program of a Supply Chain

  • Lee, Chang-Hwan;Pae, Jae-H.
    • Management Science and Financial Engineering
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    • v.13 no.2
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    • pp.117-139
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    • 2007
  • This paper contributes by incorporating works addressing supply chain coordination and investing in setup reduction program. Consider a two-echelon, EOQ-like inventory system consisting of a supplier and a buyer. We assume that both the supplier and the buyer can invest in setup cost reduction programs in order to benefit from small order sizes. However, the costs of investing in setup cost reduction programs are different for the two parties, leading to mismatches in individually optimal setup costs and order cycle times. We propose a supply chain coordination contract that makes use of quantity discount as an incentive transfer scheme for supply chain coordination.

Capacity-constrained Outsourcing to Two Contract Manufacturers with Diferent Improvement Capabilities

  • Kim, Bo-Won
    • Management Science and Financial Engineering
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    • v.5 no.2
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    • pp.1-23
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    • 1999
  • We investigate a supply chain arrangement where a manufacturing company outsources it sassmbly operations to two contract manufacturers. Each contract manufacturer is different in improvement capability : e.g., one is more capable than the other. This improvement capability is supposed to in-duce supply cost reduction that ultimately benefits the manufacturing company. Over time, the manufacturer has to decide how much it should outsource to each contract manufacturer and how much processde/assembled the semi-finished units should be when they re shipped back to the manufacturing company from the contract manufacturers. We employ the optimal control theory to answer the questions, and suggest numerical examples focused on the relationship among the optimal outsourcing amounts, contract manufacturer's improvement capabilities, and their capacity con-straints.

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A Study on Expected Dispute Arbitration in Supply Chain ESG Management: Focusing on the cases of POSCO and NAVER (공급망 ESG 관리에서 예상되는 분쟁 중재에 관한 연구 - 포스코와 네이버 사례를 중심으로 -)

  • Lee, Geonwoo;Lee, Jungeun;Lee, Hunjong
    • Journal of Arbitration Studies
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    • v.34 no.1
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    • pp.75-101
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    • 2024
  • "ESG management" guides companies to prioritize corporate social responsibility and sustainable development as key management objectives, going beyond mere financial performance pursuits. This approach involves creating a sustainable and robust supply chain by urging companies, acting as 'supply chain managers', to implement ESG management practices alongside their 'supply chain partners'. The domestic business community has been quick to respond to this trend, recognizing that failure to adhere to ESG standards set by organizations such as the EU and SEC could lead to severe repercussions, including exclusion from international trade and reputational damage. POSCO and NAVER, two leading Korean companies, are at the forefront of practicing ESG management effectively. They have both produced and publicly disclosed ESG management reports, showcasing their success in enhancing supply chain ESG management. However, as supply chain managers enforce ESG-related obligations on their suppliers, the likelihood of disputes between the parties may increase. In scenarios where supply chain ESG management leads to conflicts between supply chain managers and suppliers, commercial arbitration emerges as a viable solution for dispute resolution. This method offers several advantages, including the arbitrators' expertise, time and cost efficiency, the binding nature of decisions akin to a court's final judgment, international recognition under the New York Convention, confidentiality, and ample opportunity for parties to be heard. Our analysis focuses on the emerging disputes between supply chain managers and suppliers within the context of supply chain ESG management, particularly examining the cases of POSCO and NAVER. By categorizing the expected types of disputes and assessing the appropriateness of commercial arbitration for their resolution, we highlight the effectiveness of this approach. Furthermore, we propose leveraging the Korean Commercial Arbitration Board's role to enhance the use of arbitration in resolving supply chain ESG disputes, underscoring its potential as a strategic tool for maintaining sustainable and harmonious supply chain relationships.

A Survey on Blockchain Platforms for Supply Chain Management (공급망을 위한 블록체인 플랫폼 조사연구)

  • Jang, Jihyun;Song, Seounghan;Kim, Suntae
    • The Journal of the Institute of Internet, Broadcasting and Communication
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    • v.18 no.5
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    • pp.259-265
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    • 2018
  • As the supply method of products has become diverse and complex, problems such as manipulation of origin and product trace have occurred in the existing supply chain system. In order to deal with these issues, various Blockchain based studies have been actively carried in the SW industry and academy. However, there is a lack of comprehensive survey research on the applied Blockchain techniques, so that it hardly understand the pros and cons of the technologies. In this study, we intensively investigated the diverse studies from the Industrial and academic area based on the several criteria such as the goals, use of key Blockchain technologies, and IoT technologies.

Supply Contract Intelligence : The Impact of Stockout and Overstock Experiences Using System Dynamics Simulation Model (공급사슬지능 : 시스템 다이나믹스를 이용한 재고 과부족 경험이 공급사슬에 미치는 영향 분석)

  • Noh, Yonghwi;Choi, Donghyun;Rha, Jin Sung;Suh, Yongkee
    • Journal of Intelligence and Information Systems
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    • v.19 no.2
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    • pp.21-38
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    • 2013
  • The purpose of this study is to investigate the influence of behavioral factors (buyer's tendency to reflect stockout and overstock experiences in ordering decision) on the supply chain performance. This study employs system dynamics to examine the influence of these behavioral factors derived from the interview with several representatives of retailers in South Korea. The results show that different contract can bring different performance (total profit, seller's profit, buyer's profit, order quantity, sales quantity, overstock, and stockout). The results also suggest that these behavioral factors play a significantly influential role in the performance of supply contract. These results imply that supply contract should be established based on the analysis of behavioral factors of supply chain participants.

A Study on Collavorative SCM for O2O Startups

  • KIM, Dong-Yun;KIM, Joon-Seok
    • The Journal of Industrial Distribution & Business
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    • v.10 no.12
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    • pp.43-55
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    • 2019
  • Purpose : With the proliferation of O2O platform services that combine offline and online services, many startups are fiercely competing to lead services in the O2O service market. While the prospects for growth in the O2O service market are optimistic because of the close convenience to life, startups can achieve corporate performance only through close cooperation and partnership with suppliers. The purpose of this study is to verify the effect of O2O-based startups' and suppliers' cooperation in supply chain management on SCM performance through supply chain partnerships and startup satisfaction with suppliers. Research design, data, methodology : Data were collected from O2O service-based startups and hypotheses were verified through frequency analysis, exploratory factor analysis, reliability analysis, confirmatory factor analysis, feasibility analysis, and structural equation path analysis. In addition, the mediating effects of supply chain partnerships and startup satisfaction on suppliers were verified. Results : As a result of this study, IT utilization of the O2O startup cooperation method affects the financial perspective of supply chain partnership and SCM performance. The contract implementation of the cooperation method had an impact on the financial and innovation growth perspectives of the SCM performance, and the communication of the cooperation method had an effect on the supply chain partnership, startup satisfaction in the supply chain, and the innovation growth perspective of the SCM performance. Supply chain partnerships had an impact on the financial, innovation growth, and customer perspectives of SCM performance and startup satisfaction within the supply chain had a significant effect on innovation growth and customer perspectives. Conclusions : The implications of this study identified the factors that can improve SCM performance through the cooperation method of O2O startup, supply chain partnership and startup satisfaction with suppliers, and it is significant that the causal relationship was identified by the structural model through the supply chain cooperation factors derived by characteristics. Based on the empirical results, as the services of O2O startups grow, it is expected that empirical research and practical activation of academia should be considered as important in the cooperation of the supply chain.

The Effect of Unobservable Efforts on Contractual Efficiency: Wholesale Contract vs. Revenue-Sharing Contract

  • Kang, Sungwook;Yang, Hongsuk
    • Management Science and Financial Engineering
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    • v.19 no.2
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    • pp.1-11
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    • 2013
  • An interesting puzzle in business practices is that although many researchers emphasize the benefits of a revenue-sharing contract, a wholesale contract has remained to be the most common contractual form. By introducing the concept of unobservable efforts, we examine the contractual efficiency of a wholesale contract and a revenue-sharing contract. The multi-task agency model and experimental design approach are used to analyze the relationship between the contractual efficiency and parameters. A major finding of our study is that a wholesale contract coordinates unobservable efforts, while it fails to coordinate the order quantity decision. Because unobservable efforts have mixed effects on the contractual efficiency, the superiority of contract type depends on parameters. This finding implies that a wholesale contract can be a competitive contract, especially when unobservable efforts are heavily involved. Our conclusion is that the current popularity of a wholesale contract is manager's rational response to complex supply chain environments rather than irrational behaviors.