Production Flexibility of Real Options in Daily Supply Chain

Abstract

Production or its investment of carton soft drink is relatively lower in cost than that of the canned, glass bottled, or plastic bottled soft drink. However, as the shelf life is shorter than other packaging systems, it is difficult to carry its inventory and then to produce daily by order. In particular, at the final batch in daily production, it is unavoidable to discard the excess drink over the minimum volume necessary for final one batch processing. Hence, this paper's research question is how some flexible before and behind shift of order timing can reduce such kinds of discard based on an agreement with the customer.A key phrase is 'Virtual Inventory' by flexible demand timing shift for a buffer between supply and demand without any physical inventory for discard reduction. The methodology to the above research questions is real options analysis for a flexible shift decision of demand timing. This paper's objective is to build a two-stage supply-chain model for call and put options for positive and negative daily production flexibility to ''real demand'', draw an option selection policy to each gap between supply and demand, apply a sensitivity analysis to find critical conditional and decision variables at a decision tree, and confirm the effectiveness of this scheme by using practical demand data. Thus, timing option can be considered as Virtual Inventory by its buffer function between supply and demand in daily demand production. The next challenge is smart and flexible risk management to uncertain demand with clear seasonal variation.

Blockchain-Based Model for Intelligent Supply Chain Production and Distribution

“…Wireless Communications and Mobile Computing transaction and the identity information of the transaction sender [10,11].…”

“…In this article, Equation (10) means that the addition operation is performed first, and then, the encryption operation is performed, and the right side of the equation is the encryption operation first, and then, the addition operation is performed. Express.…”

Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis

“…The most recent qualitative (Scherrer-Rathje et al 2014;Manders et al 2016) and quantitative empirical studies (Omar et al 2012;He et al 2014;Willis et al 2016) build on strategic management theories and extend the collaboration-flexibility-performance relationship with the incorporation of inter-organizational information systems. These systems are considered a prerequisite for building effective cooperative relationships by allowing the sharing of real time information between business partners (Pierre and Luc 2007;Kume and Fujiwara 2016). Among the most frequently analysed inter-organizational systems are virtual integration, collaborative product commerce or vendor managed inventory (Banker, and Bardhan 2006;Wang et al 2006).…”

“…supplier management Kavitha and Vijayalakshmi (2013a); Kavitha and Vijayalakshmi (2013b); Kemmoe et al (2014); Kesen (2014); Negahban et al (2014); Kavitha and Vijayalakshmi (2015); Kazemian and Aref (2016); Kume and Fujiwara (2016); Chirra and Kumar (2018); Kulkarni and Francas (2018); Kumar et al (2018)…”