Global supply chain network dynamics with multicriteria decision-making under risk and uncertainty

Abstract

Abstract:In this paper, we consider the dynamics of a global supply chain network economy in the presence of risk and uncertainty in which distinct speeds of adjustment are included.We assume three tiers of decision-makers: manufacturers, distributors, and retailers, who acquire the product in order to satisfy the demand at the demand markets. The manufacturers, distributors, and retailers may be based in the same or in different countries and may transact in different currencies. We allow for electronic transactions in the form of electronic commerce between the manufacturers and the retailers as well as between the distributors and the retailers since the retailers may be physical or virtual. In addition, supply-side risk and demand-side risk are handled in our formulation with the former being expressed as a multicriteria decision-making problem for each manufacturer and distributor (with distinct weights associated with the criteria) and the latter being handled with the use of uncertain demands. The proposed framework allows for the modeling and theoretical analysis of such global supply chain networks, which involve competition within a tier of decision-makers but cooperation between tiers. Numerical examples are provided for illustrative purposes.

An integrated decision support system for global manufacturing co-ordination in the automotive industry

“…For decision makers, a multi-criteria decision problem that requires a trade-off among the several criteria is difficult to solve (Nagurney and Matsypura, 2005). In this section, an MCSM is defined to assist in analysing the global manufacturing co-ordination problem and help identify the preferred decision alternative.…”

“…These include the unbundling of different stages of the production process across the globe, the growing capacity for firms to outsource internationally, greater product differentiation, and the growth of the phenomenon of 'global value chain', whereby different businesses add value by different processes or activities at each stage of production (Nagurney and Matsypura, 2005;Needle, 2005;Slack et al, 2010). Accordingly, the traditional production model where firms were responsible for all stages of the production process of a particular product has changed.…”

“…Control risk is normally high for weaker partner(s) in a joint venture or strategic alliance. When one partner is dominant, then the weaker partner(s) may risk having its (or their) core competencies reduced or eliminated (Nagurney and Matsypura, 2005).…”

Logistics and Transportation in Global Supply Chains: Review, Critique, and Prospects

“…Nagurney and Matsypura [56] (2005) examine the effect of risks and uncertainty on a global supply chain network. A three-tier supply chain is considered where electronic orders are allowed, meaning that retailers have a direct link to their manufacturers, essentially bypassing the distributors.…”

Supply Chain Risk Management in Chinese Chemical Industry based on Stochastic Chance-Constrained Programming Model

“…Nagurney, A. (2005) considers the dynamics of a global supply chain network economy in the presence of risk and uncertainty and a multi-criteria decision-making problem [8]. Cheng et al (2012) conduct a survey study in the Chinese business context.…”