COVID-19 pandemic is the worst humanitarian crisis that economies across the globe have witnessed. Forced lockdowns, social distancing, and restricted mobility have contributed to large scale disruptions in the supply chain network. The purpose of the paper is to identify critical factors affecting global supply chain and evaluate strategies for risk reduction in the supply chain network by making it resilient.
Our study incorporates multi-criteria decision approach using Analytic Hierarchy Process (AHP) and Decision-Making Trial and Evaluation Laboratory (DEMATEL) to analyze factors that affected the supply chain networks with the onset of COVID-19. The AHP method enabled to hierarchically rank the factors based on the relative weightage while DEMATEL ascertained the inter-relationships among the factors and classified them into cause and effect groups. The findings of our study identified the cost–optimization as the most significant factor and the human resource management as the least important factor in reducing vulnerabilities of the supply chain network. Our analysis from DEMATEL approach indicate that government support is a significant causal factor which can effectively eliminate the issues plaguing supply chains during this pandemic. The results from our study aim to help policymakers in developing a risk resilient framework that can enhance performance and operational capability of the supply chain, thereby ensuring sustainability and socio-economic well-being of all the stakeholders involved in the entire network.
This study considers a manufacturer with ambidextrous sustainable innovation capability selling products in environmentally conscious market through an independent retailer in a two-period game setting. We design a two-period game theoretic and dyadic supply chain (SC) model considering exploitative and exploratory nature of environmental innovations. We study five different contract types, namely, wholesale price contract, vertical Nash game structure, cost sharing contract, revenue sharing contract and two-part tariff contract. We demonstrate the impact of market sensitivity towards sustainable innovation and cost parameters on optimal level of decision parameters. The equilibrium results reveal that a suitably designed two-part tariff contract can be used to achieve coordination in a fragmented SC. The equilibrium results assist managers to optimise the SC based on the two-period contract model.The results obtained in this study can help the decision-makers to take decisions on investment in the ambidextrous sustainable innovation under different types of contract structures.
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