Capacity coordination in a service supply chain

Zhang, Mengying; Qin, Jin; Wei, Tianyi

doi:10.1504/ijams.2017.082416

Cited by 2 publications

(3 citation statements)

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“…2016, Spinler and Huchzermeier 2006, Zhang et al. 2017). Rather than making operating decisions based on available capacity, our problem is to determine how Distributor can motivate eSP to build Distributor’s preferred amount of capacity in favorable locations.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Research on the coordination of service supply chains through capacity is sparse (Wang et al 2015, Zhang et al 2017. Most such studies consider call centers (e.g., Aksin et al 2007, Xu et al 2015.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Much like the case of double marginalization in a goods supply chain, the service provider's optimum is generally to acquire less capacity than the system's optimum. One method to compensate for this is to use option contracts to counter uncertainty (Liu et al 2016, Spinler and Huchzermeier 2006, Zhang et al 2017. Rather than making operating decisions based on available capacity, our problem is to determine how Distributor can motivate eSP to build Distributor's preferred amount of capacity in favorable locations.…”

Section: Literature Reviewmentioning

confidence: 99%

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Location‐Routing with Conflicting Objectives: Coordinating eBeam Phytosanitary Treatment and Distribution of Mexican Import Commodities

Geismar

Huang

Pillai

et al. 2020

Production and Operations Management

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We study a generalized location‐routing problem in which the key decisions are made by supply chain partners with conflicting objectives. The context of our problem is the irradiation by electron beam (eBeam) of fresh produce imported from Mexico to reduce the threat of insects and pests to the U.S. agriculture. Because too few irradiation facilities exist to serve the current demand, we focus on two parties to be coordinated: the eBeam Services Provider, who will choose the facilities’ locations and capacities, and the Distributor, who will determine routes for transporting fruits from Mexico to commercial hubs in the United States via these facilities. We demonstrate the value of cooperation and how that cooperation can be achieved and enforced for a supply chain that must coordinate the independent companies by the strategic decisions of facility location and capacity construction, as opposed to the more common coordination by capacity allocation or pricing. The parties’ interactions are modeled as a sequential game with perfect information. Specifically, we formulate the sequential and cooperative decision‐making problems as mixed‐integer programs, analyze the computational complexity of the problems, and conduct extensive computational experiments. Additionally, we detail three schemes by which the parties can engage in profitable and enforceable cooperation. These methods progressively increase each party’s commitment as trust is built and profits rise. Total cooperation increases overall profit by an average of 8.6%. Further, a stochastic program that uses sample average approximation is applied to demonstrate the results’ robustness to nature’s supply variations while maximizing the supply chain’s overall profit.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Location‐Routing with Conflicting Objectives: Coordinating eBeam Phytosanitary Treatment and Distribution of Mexican Import Commodities

Geismar

Huang

Pillai

et al. 2020

Production and Operations Management

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Service Only Supply Chain

Nagariya

Kumar

et al. 2021

Handbook of Research on Novel Practices and Current Successes in Achieving the Sustainable Development Goals

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Broadly, the sustainable practices for the manufacturing supply chain are considered as environmental, social, and economic practices. But due to different characteristics of services, the above-mentioned sustainable practices are necessary. Beyond these practices, some other novel practices are necessary for the service context. This chapter discusses the novel sustainable practices for the service only supply chain (SOSC). The discussed sustainable practices will enhance the understanding of sustainable practices in SOSC context. How these practices will help the organizations in achieving sustainable development goals will also be discussed. Potential future research directions are also provided.

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Capacity coordination in a service supply chain

Cited by 2 publications

References 0 publications

Location‐Routing with Conflicting Objectives: Coordinating eBeam Phytosanitary Treatment and Distribution of Mexican Import Commodities

Location‐Routing with Conflicting Objectives: Coordinating eBeam Phytosanitary Treatment and Distribution of Mexican Import Commodities

Service Only Supply Chain

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