Fair Transfer Prices of Global Supply Chains in the Process Industry

Liu, Songsong; Fucarino, Roberto; Papageorgiou, Lazaros G.

doi:10.1007/978-3-319-20430-7_18

Cited by 3 publications

(2 citation statements)

References 8 publications

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“…Isu keadilan dalam distribusi keuntungan telah banyak dibahas dalam berbagai bidang diantaranya teknologi (Xu et al, 2014;Fahimullah et al, 2019), perbankan (Hayat et al, 2020, konstruksi (Teng et al, 2019;Guo dan Wang, 2022), energi (Heo dan Jung, 2020), pertanian (Yoo et al, 2019;Gu dan Yu, 2022), dan rantai pasok (Chen et al, 2003a;Chen et al, 2003b;Liu et al, 2016;Gao et al, 2017;Liu dan Papageorgiou, 2018). Tidak ada kriteria keadilan tunggal yang dapat diterapkan pada semua masalah; sebaliknya, konsep, persepsi, dan interpretasi tentang keadilan berbeda-beda tergantung pada isu dan pihakpihak yang terlibat.…”

Section: Abstrakunclassified

Distribusi Keuntungan Yang Adil Antar Aktor Rantai Pasok Agroindustri Sagu Di Kabupaten Kepulauan Meranti, Riau

2023

j.tek.ind.pert

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The distribution of benefits among supply chain actors is complex and full of challenges because various factors, including uncertainty, influence it. This study aims to solve the problem of profit distribution to produce a fair profit distribution among supply chain actors by incorporating elements of uncertainty, risk, and value-added. The model of fair profit distribution is made using the cooperative game theory approach with fuzzy Shapley values, which incorporates the elements of uncertainty in profit, risk, and added value. The fair profit distribution between supply chain actors is validated in the sago agro-industry supply chain in the Meranti Islands Regency. The risks of each supply chain actor were obtained using the fuzzy analytical hierarchy process technique, with risk values of 0.52, 0.23, 0.2, and 0.29 for farmers, traders, wet starch agro-industries, and dry starch agro-industries, respectively. While the value-added ratio of each supply chain actor is 12%, 35.92%, 13.9%, and 15.1%, respectively, as obtained by the Hayami method. The model validation results show that the fair profit distribution to farmers is 17.77%, to traders it is 29.69%, to the wet starch agro-industry it is 9.91%, and to the dry starch agro-industry it is 42.63% of the total supply chain profits. This result is more proportional than the current profit distribution, which is respectively 10.03%, 15.29%, 1.7%, and 72.98%. These results are considered fairer and more proportional because they take into account the uncertainty of the benefits, risks, and added value of each actor in the sago agro-industry supply chain.

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Section: Abstrakunclassified

Distribusi Keuntungan Yang Adil Antar Aktor Rantai Pasok Agroindustri Sagu Di Kabupaten Kepulauan Meranti, Riau

2023

j.tek.ind.pert

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“…In this work, we aim to develop an optimisation-based fair profit distribution framework for inte-60 grated production, distribution and capacity planning of multi-echelon supply chains, by extending the work of Liu et al (2016). In order to reflect real practice, different bargaining powers of supply chain members are considered.…”

Section: Accepted Manuscriptmentioning

confidence: 99%

Fair profit distribution in multi-echelon supply chains via transfer prices

Liu

Papageorgiou

2018

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The total profit maximisation of a supply chain network may result in an uneven and impractical profit distribution among the members. This work addresses the fair profit distribution within a multi-echelon supply chain using transfer prices. A mixed integer linear programming (MILP) model framework is proposed for the optimal production, distribution and capacity planning of a supply chain network of an active ingredient (AI), consisting of AI plants, formulation plants and markets. The transfer prices of the AI from AI plants to formulation plants, and those of products from formulation plants to markets are to be optimised. The proportional and max-min fairness criteria are adopted to define fair profit distributions. Considering bargaining powers of supply chain members, game theoretic solution approaches are developed for fair solutions using Nash bargaining and lexicographic maximin principles. Especially, a hierarchical approach is developed to obtain an approximate optimal fair solution efficiently. The applicability and efficiency of the proposed approaches are demonstrated by two examples, including a real world agrochemical supply chain network.

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A Multi-Echelon Global Supply Chain Network Design Based on Transfer-Pricing Strategy

Zhang

Wang

2019

J. Ind. Intg. Mgmt.

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An inimitable global supply chain would provide multinational enterprises (MNEs) competitive advantage and transfer pricing strategy to coordinate the relationship between the facilities within the global value chain. In this paper, we present a framework of multi-echelon global supply chain consisting of supplier, manufacturer and a distribution center which enables the MNEs to coordinate the facilities within the value chain based on the maximization total profits theory. An optimal model is established to describe how the transfer price affects the performance of the global supply chain. Through the numerical analysis, we find that the network of global supply chain positively affects the total performance of MNEs and transfer price strategy as a kind of coordinate method which impacts the total profit of the global supply chain.

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Fair Transfer Prices of Global Supply Chains in the Process Industry

Cited by 3 publications

References 8 publications

Distribusi Keuntungan Yang Adil Antar Aktor Rantai Pasok Agroindustri Sagu Di Kabupaten Kepulauan Meranti, Riau

Distribusi Keuntungan Yang Adil Antar Aktor Rantai Pasok Agroindustri Sagu Di Kabupaten Kepulauan Meranti, Riau

Fair profit distribution in multi-echelon supply chains via transfer prices

A Multi-Echelon Global Supply Chain Network Design Based on Transfer-Pricing Strategy

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