The investment strategies for a dynamic supply chain under stochastic demands

Chen, Po‐Yuan

doi:10.1016/j.ijpe.2011.11.021

Cited by 32 publications

(21 citation statements)

References 27 publications

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“…The supply chain members could, for example, adjust their terms of trade via a contract that establishes a transfer payment scheme, e.g. in a profit or revenue sharing contract (Chen, 2012;Cachon, 2003). By using such a contract, none of the participants would have an incentive to deviate from the optimal supply chain decisions and actions (Govindan, et al, 2013).…”

Section: Discussionmentioning

confidence: 99%

A joint economic lot size model with financial collaboration and uncertain investment opportunity

Marchi

Ries

Zanoni

et al. 2016

International Journal of Production Economics

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Establishing long-term relationships among the members of a supply chain has become necessary to enhance the supply chain's competitiveness in a globalized environment. Besides coordinating operational decisions, such as how much and when to produce or to order, the members of a supply chain may also share financial resources or act jointly on the capital market. This is important especially when companies have unequal access to capital, for example because they are located in countries with different economic conditions and banking policies and/or ratings. The joint financing of investments across the supply chain may thus ensure the stability of production and of the flow of products to the customers. In addition, it strengthens the established relationships among the supply chain members. This study takes up these issues and presents an integrated inventory model that considers investments jointly financed by the members of a supply chain. In particular, it considers a two-stage supply chain with a single vendor and a single buyer and assumes that the vendor has the option to invest in increasing its production rate. The buyer, however, is assumed to have better access to capital, and therefore has the option to give a credit to the vendor to invest in its productivity, which is beneficial for both parties. To consider uncertainties of the production improvement investments, a success probability for the investment is considered and modeled using a beta distribution.

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Section: Discussionmentioning

confidence: 99%

A joint economic lot size model with financial collaboration and uncertain investment opportunity

Marchi

Ries

Zanoni

et al. 2016

International Journal of Production Economics

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“…In our survey, we decided to investigate in-depth the financial methods, such as the net present value (NPV), to assess the goodness of a specific SC. In particular, NPV is used as an objective function to be maximized for SC optimization as also done by several literature sources (Chen, 2012;Bogataj et al, 2011;Naim, 2006). The NPV application enhances the strategic role of any SC decisions, reinforcing the concept in which any decision in an SC has a strategic influence in terms of investment.…”

Section: Managing Uncertainty In the Scmentioning

confidence: 99%

The role of uncertainty in supply chains under dynamic modeling

Fera¹,

Fruggiero²,

Lambiase³

et al. 2017

10.5267/j.ijiec

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The uncertainty in the supply chains (SCs) for manufacturing and services firms is going to be, over the coming decades, more important for the companies that are called to compete in a new globalized economy. Risky situations for manufacturing are considered in trying to individuate the optimal positioning of the order penetration point (OPP). It aims at defining the best level of information of the client's order going back through the several supply chain (SC) phases, i.e. engineering, procurement, production and distribution. This work aims at defining a system dynamics model to assess competitiveness coming from the positioning of the order in different SC locations. A Taguchi analysis has been implemented to create a decision map for identifying possible strategic decisions under different scenarios and with alternatives for order location in the SC levels. Centralized and decentralized strategies for SC integration are discussed. In the model proposed, the location of OPP is influenced by the demand variation, production time, stock-outs and stock amount. Results of this research are as follows: (i) customer-oriented strategies are preferable under high volatility of demand, (ii) production-focused strategies are suggested when the probability of stock-outs is high, (iii) no specific location is preferable if a centralized control architecture is implemented, (iv) centralization requires cooperation among partners to achieve the SC optimum point, (v) the producer must not prefer the OPP location at the Retailer level when the general strategy is focused on a decentralized approach.

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“…Although households energy management is widely recognized 7 as a priority to reach an overall cost-saving by PV generation systems, nowadays consumers'load during the day is still particularly high in the evening 8 , while the quota of energy consumed in the morning and/or in the afternoon is still quite low. Then, having normalized the energy demand to one, by …xing the production quota used for selfconsumption is endogenously determined once the plant size 1 is chosen 9 .…”

Section: Assumptionmentioning

confidence: 99%

“…Equation (3) 7 See Ciabattoni et al (2014) among others. 8 According to the analysis performed by the Italian National Authority for Electricity, Gas and Water Services (AEEGSI) in 2009, the higher peak load demanded by residential users occurs in the evening, between 8:00 p.m. and 10:00 p.m. (AEEGSI, 2009). 9 Many technical reports and contributions in the literature show that this quota ranges between 30% and 50%.…”

Section: Assumptionmentioning

confidence: 99%

Investing in Photovoltaics: Timing, Plant Sizing and Smart Grids Flexibility

2016

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In Italy and in many EU countries, the last decade was characterized by a large development of distributed generation power plants. Their presence determined new critical issues for the design and management of the overall energy system and the electric grid due to the presence of discontinuous production sources. It is commonly agreed that contingent problems that a¤ect local grids (e.g. ine¢ ciency, congestion rents, power outages, etc.) may be solved by the implementation of a "smarter" electric grid.The main feature of smarts grid is the great increase in production and consumption ‡exi-bility. Smart grids give producers and consumers, the opportunity to be active in the market and strategically decide their optimal production/consumption scheme. The paper provides a theoretical framework to model the prosumer's decision to invest in a photovoltaic power plant, assuming it is integrated in a smart grid. To capture the value of managerial ‡exibility, a real option approach is implemented. We calibrate and test the model by using data from the Italian energy market. JEL: Q42; C61; D81

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The investment strategies for a dynamic supply chain under stochastic demands

Cited by 32 publications

References 27 publications

A joint economic lot size model with financial collaboration and uncertain investment opportunity

A joint economic lot size model with financial collaboration and uncertain investment opportunity

The role of uncertainty in supply chains under dynamic modeling

Investing in Photovoltaics: Timing, Plant Sizing and Smart Grids Flexibility

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