Recovery from demand disruption: Two-stage financing strategy for a capital-constrained supply chain under uncertainty

Zhao, Yujie; Zhou, Hong; Leus, Roel

doi:10.1016/j.ejor.2022.03.009

Cited by 27 publications

(6 citation statements)

References 43 publications

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“…This type of research mainly focuses on two areas. The first area focuses on the impact of DUR on the operational decisions of capital-constrained enterprises [20][21][22]. For example, under the setting of a price-dependent stochastic market demand, Shi et al [13] studied how demand uncertainty and capital constraint affect retailers' integrated ordering and pricing policies towards seasonal products.…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of partial demand uncertainty reduction on private equity financing in small and medium-sized enterprises: A supply chain perspective

Deng,

Yao,

Chen

et al. 2024

PLoS ONE

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The effect of demand uncertainty reduction (DUR) on supply chain management has received tremendous attention. From a financial perspective, studying the impact of DUR is equally significant. This study explores the relationship between DUR and private equity (PE) financing in retail enterprises within a supply chain, which comprises a dominant supplier and a subordinate retailer. This article establishes decision models for a retailer backed by PE under three market demand conditions: range, mean, and range with mean. The study further investigates the impact of partial demand uncertainty reduction (PDUR) on the retailer and PE through comparative analysis of these scenarios. To address incomplete market demand information during the decision-making process, the study employs the minimax regret criterion to construct and solve the model. An intriguing finding of this study is that contrary to intuition, PDUR not only fails to promote PE but also reduces the retailer’s willingness to finance and decreases the asset size for both the retailer and PE. In addition, the better the growth potential for the retail enterprise, the more severe the negative impact brought about by PDUR. Moreover, the impact of PDUR on supplier and supply chain performance is two-fold. PDUR based on range information has a negative impact on the expected profit of the supplier and the supply chain, while PDUR based on mean information has a positive impact on their expected profit.

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Section: Literature Reviewmentioning

confidence: 99%

Effects of partial demand uncertainty reduction on private equity financing in small and medium-sized enterprises: A supply chain perspective

Deng,

Yao,

Chen

et al. 2024

PLoS ONE

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“…[7] examined a demand system in which consumers may face demand uncertainty when choosing a service plan under a three-part charge, and preferences for multiple services may be interdependent, based on a proposed two-stage discrete/continuous selection model of service bundling with interactive utility and preference correlation. Addressing the issue in a bank-supplier-retailer game model, [59] proposed a solution of recovery strategies of the supply chain with demand disruptions to reduce the negative impact of disruptions on financial products and services.…”

Section: 2mentioning

confidence: 99%

The selection of bundling or independent selling mode for new retailing platform with demand disruptions

Wang,

Xu,

Chen

et al. 2024

JIMO

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This study models a manufacturer that sells products and services through a platform with demand disruptions. To examine the selection of the platform operational selling mode, we consider pricing strategies in two selling modes: (1) In bundling selling mode, the manufacturer and platform are the same party, so their optimal decisions match, and they provide the product and service in a bundle, such that consumers can only buy the service together with the product. (2) In independent selling mode, the manufacturer and platform have independent optimal decisions, and they sell the product and service separately with different prices, allowing consumers to self-select whether to buy both or only the product. We show that the total profits of the supply chain in the independent mode will be larger than in the bundling mode when there is a negative demand disruption in either products or services because of the double marginalization effect. When there are demand disruptions, the profit contributed by services may exceed that from products. The numerical studies indicate that the platform would adopt bundling selling mode to maximize the whole profit when experiencing demand disruptions in product where the product demand disruptions are larger than ∆a or the service demand disruptions are larger than kcp − a.

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“…Operations resilience is a firm’s ability to return to the original state of operations after a disruption and requires operations to be stable and flexible (Essuman et al , 2020; Li et al , 2022). Firms must recover and persist in their operations during and after disruptions, such as rapid and effective restoration of operations is required for firms to remain competitive (Munoz and Dunbar, 2015; Zhao et al , 2022). Proactive strategies in preparation for operations resilience for future disruptions are about developing capabilities to sense risks and respond by restructuring teams and decision-making processes and reactive strategies, whereas reactive strategies respond to disruptions by promptly taking actions to reconfigure resources to restore operations (Birkie et al , 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Industry 4.0 technology capabilities, resilience and incremental innovation in Australian manufacturing firms: a serial mediation model

Nakandala

Yang²,

Lau³

et al. 2023

SCM

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Purpose There is a well-documented trend among businesses for applying continuously improving, technologically-supported processes. This trend, in part, responds to evolving and challenging business environments and competitive pressures. It also increasingly mandates the need for businesses to invest in improving their digital capabilities and is driven by the expectation that such investments will better equip them for uncertain times. The COVID-19 pandemic presented disruptions to the supply chain, logistics, operations, market demand and labour supply, with industry reports providing evidence that businesses with digital capabilities were better able to respond to such disruptions promptly and appropriately. The study aims to investigate the effects of Industry 4.0 (I4.0) technologies on business operations and supply chain resilience. Design/methodology/approach The authors surveyed 117 Australian manufacturing firms using an online survey and analysed the data by using the partial least square structural equation modelling method. Findings The authors found I4.0 capabilities directly and positively impact supply chain resilience and that incremental innovation acts as a complementary mediator for the I4.0 technologies’ relationship with supply chain resilience. I4.0 technology capability needs to first transfer to incremental innovation for operations resilience. The authors also found that incremental innovation and operations resilience are serial mediators in the relationship between I4.0 technologies and supply chain resilience. Originality/value This research linked the three research areas of I4.0 implementations, innovation capabilities and resilience. To the best of the authors’ knowledge, there has not been a previous study that investigated all three constructs together. Also, this study considered operations resilience and supply chain resilience as two distinct constructs and found I4.0 technologies had differential effects on them. The findings, thus, provide a novel contribution to the resilience, organizational capability and innovation literature. The investigations make clear to business practitioners how investments in technology and innovation capabilities translate into the resilience that is required in periods of disruption to business certainty.

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Recovery from demand disruption: Two-stage financing strategy for a capital-constrained supply chain under uncertainty

Cited by 27 publications

References 43 publications

Effects of partial demand uncertainty reduction on private equity financing in small and medium-sized enterprises: A supply chain perspective

Effects of partial demand uncertainty reduction on private equity financing in small and medium-sized enterprises: A supply chain perspective

The selection of bundling or independent selling mode for new retailing platform with demand disruptions

Industry 4.0 technology capabilities, resilience and incremental innovation in Australian manufacturing firms: a serial mediation model

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