Mitigation of the ripple effect in supply chains: Balancing the aspects of robustness, complexity and efficiency

Monostori, Judit

doi:10.1016/j.cirpj.2021.01.013

Cited by 17 publications

(12 citation statements)

References 63 publications

(75 reference statements)

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“…The results of the conducted analysis repeat those of several previous studies (Levina 2014;Modpak and Marton 2012;Monostori 2021) which show that models in the class of problems of statistical and dynamic analysis of the BWE and the ripple effect allow calculating the impact of failures on performance, and recommending a stable supply chain Thus, the operational risks of grocery retail, associated with fluctuations in demand and order fulfillment time are considered from the standpoint of the BWE and are the main factors of changes in the supply chain. Such risks occur quite often, but can be eliminated in the short term, while the degree of their impact on productivity and service quality is low.…”

Section: Discussionsupporting

confidence: 87%

Section: Discussionsupporting

confidence: 77%

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Supply Chain Management and Risk Management in an Environment of Stochastic Uncertainty (Retail)

Lochan

Rozanova

Bezpalov

et al. 2021

Risks

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In the context of stochastic uncertainty and the increasing complexity of logistics processes in the retail sector, managers face a problem in obtaining accurate forecasts for the dynamics of changes in key business performance indicators. The purpose of the present work is to assess the impact of risk events and unstable conditions on the level of quality of supply chain services and economic indicators of the retail trade network. Using the anyLogistix software tool, a simulation model was constructed that allows assessing operational risks and their impact on key indicators of the supply chain using the bullwhip effect. Besides, a statistical model of the impact of the ripple effect in the event of failures caused by the occurrence of a man-made risk event and the shutdown of production of one of the suppliers on the financial, customer, and operational performance indicators of the supply chain of grocery retail. The results obtained show that the main factors of changes in the supply chain are operational risks associated with fluctuations in demand and order execution time by the distribution center. With a sufficiently high level of occurrence, their impact on productivity and quality of service is low because they can be eliminated in a short time. The simulation results show that the most tangible risks for the food retail supply chain are supply chain failures, whose consequences require significant coordinating efforts and longer recovery times, as well as additional investments. For example, events, such as a fire in one distribution center and the shutdown of production for 1 week of one of the suppliers of dairy products will lead to the loss of USD 181.75 million by the grocery retailer, which is 3% of the expected revenue. We believe that risk management in supply chains is becoming increasingly complex, and to make effective managerial decisions, it is necessary to constantly improve the tools that combine analytical and optimization methods, as well as simulation modeling.

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Section: Discussionsupporting

confidence: 87%

Section: Discussionsupporting

confidence: 77%

Supply Chain Management and Risk Management in an Environment of Stochastic Uncertainty (Retail)

Lochan

Rozanova

Bezpalov

et al. 2021

Risks

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“…Theoretically, the level of supply chain vulnerability is related to the supply chain design. The supply chain design characteristics include density, complexity, and node criticality ( Monostori, 2021 ). Firstly, density correlates to the node's geographical positioning e.g., Vietnam is geographically connected to China.…”

Section: Discussionmentioning

confidence: 99%

A global trade supply chain vulnerability in COVID-19 pandemic: An assessment metric of risk and resilience-based efficiency of CoDEA method

Jomthanachai

Wong

Soh

et al. 2022

Research in Transportation Economics

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The COVID-19 pandemic has an adverse impact on the global trade supply chain. Countries where the economy is driven by global trade, either as exporters or importers and are faced with the problem of declining imports and exports. This is due to the interruption of the main players of the global supply chain (i.e., production, logistics and transportation sector) as well as the slow-down in consumption of overseas customers. This paper presents the development of an efficiency related metric from the Coherent Data Envelopment Analysis (CoDEA) method for assessing the vulnerability (or conversely, the robustness) levels of the supply chain system of six ASEAN countries. The results reveal that Thailand is most vulnerable to international supply chain issues indicated by its lowest efficiency score. This is due to Thailand's severe disruption of logistics and transportation systems compared with its neighboring countries. In contrast, Vietnam is the most robust because of its efficiency in the exports sector. Our research reveals that trading partners with a lower risk and the ability to rapidly recover their import volume reflect their less vulnerable supply chains. This research provides the associated strategies to establish a resilient global supply chain in spite of the COVID-19 pandemic.

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“…The examination of complexity in light of economic performance is identified in several studies as an important future direction [45,46] and is driven by data and technology evolution applied in supply chain processes. Increasing procurement complexity reflecting a broad range of factors, like risk, competition, suppliers' unreliability, capacity constraints, quality problems of the supply, market situation changes and other, by mutual interaction provide negative or positive synergy on decision making result of purchasing managers.…”

Section: Problem Identificationmentioning

confidence: 99%

“…Increasing procurement complexity reflecting a broad range of factors, like risk, competition, suppliers' unreliability, capacity constraints, quality problems of the supply, market situation changes and other, by mutual interaction provide negative or positive synergy on decision making result of purchasing managers. Understanding and managing this multidimensionality may avoid negative impact of lowering level of overall performance [45,47]. The majority of studies mentioned above are focusing their research on experimental or qualitative approach dealing with lower complexity of factors or multidimensionality of procurement strategies.…”

Section: Problem Identificationmentioning

confidence: 99%

Effect of a new potential supplier on business to business negotiations performance: evidence-based analysis

Delina

Olejarova

Doucek

2021

Electron Commer Res

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Technology innovations significantly determine supplier selection and competition in supply chains. We are enhancing current research using empirical data and examining new supplier effect on procurement performance in terms of (1) transparency (2) market structure (3) competition and (4) effect size. Through clustering, Mann-Whitney U tests, correlation effect size and CHAID classification algorithm we have found that a new potential supplier generates higher savings than only qualified suppliers in negotiation with higher effect in a transparent environment (additional 3.4% savings). We have identified the effect of the price premium for the procurer between 1.9 and 9.1% based on different procurement strategies.

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Mitigation of the ripple effect in supply chains: Balancing the aspects of robustness, complexity and efficiency

Cited by 17 publications

References 63 publications

Supply Chain Management and Risk Management in an Environment of Stochastic Uncertainty (Retail)

Supply Chain Management and Risk Management in an Environment of Stochastic Uncertainty (Retail)

A global trade supply chain vulnerability in COVID-19 pandemic: An assessment metric of risk and resilience-based efficiency of CoDEA method

Effect of a new potential supplier on business to business negotiations performance: evidence-based analysis

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