Güven Demirel

Supplier quality improvement: The value of information under uncertainty

We consider supplier development decisions for prime manufacturers with extensive supply bases producing complex, highly engineered products. We propose a novel modelling approach to support supply chain managers decide the optimal level of investment to improve quality performance under uncertainty. We develop a Poisson–Gamma model within a Bayesian framework, representing both the epistemic and aleatory uncertainties in non-conformance rates. Estimates are obtained to value a supplier quality improvement activity and assess if it is worth gaining more information to reduce epistemic uncertainty. The theoretical properties of our model provide new insights about the relationship between the degree of epistemic uncertainty, the effectiveness of development programmes, and the levels of investment. We find that the optimal level of investment does not have a monotonic relationship with the rate of effectiveness. If investment is deferred until epistemic uncertainty is removed then the expected optimal investment monotonically decreases as prior variance increases but only if the prior mean is above a critical threshold. We develop methods to facilitate practical application of the model to industrial decisions by a) enabling use of the model with typical data available to major companies and b) developing computationally efficient approximations that can be implemented easily. Application to a real industry context illustrates the use of the model to support practical planning decisions to learn more about supplier quality and to invest in improving supplier capability.

Exploring the adaptive voter model dynamics with a mathematical triple jump

Progress in theoretical physics is often made by the investigation of toy models, the model organisms of physics, which provide benchmarks for new methodologies. For complex systems, one such model is the adaptive voter model. Despite its simplicity, the model is hard to analyze. Only inaccurate results are obtained from well-established approximation schemes that work well on closely-related models. We use the adaptive voter model to illustrate a new approach that combines (a) the use of a heterogeneous moment expansion to approximate the network model by an infinite system of ordinary differential equations (ODEs), (b) generating functions to map the ODE system to a two-dimensional partial differential equation (PDE), and (c) solution of this partial differential equation by the tools of PDE-theory. Beyond the adaptive voter models, the proposed approach establishes a connection between network science and the theory of PDEs and is widely applicable to the dynamics of networks with discrete node-states.

Dynamics of epidemic diseases on a growing adaptive network

The study of epidemics on static networks has revealed important effects on disease prevalence of network topological features such as the variance of the degree distribution, i.e. the distribution of the number of neighbors of nodes, and the maximum degree. Here, we analyze an adaptive network where the degree distribution is not independent of epidemics but is shaped through disease-induced dynamics and mortality in a complex interplay. We study the dynamics of a network that grows according to a preferential attachment rule, while nodes are simultaneously removed from the network due to disease-induced mortality. We investigate the prevalence of the disease using individual-based simulations and a heterogeneous node approximation. Our results suggest that in this system in the thermodynamic limit no epidemic thresholds exist, while the interplay between network growth and epidemic spreading leads to exponential networks for any finite rate of infectiousness when the disease persists.

Revealing instabilities in a generalized triadic supply network: A bifurcation analysis

Supply networks are exposed to instabilities and thus a high level of risk. To mitigate this risk, it is necessary to understand how instabilities are formed in supply networks. In this paper, we focus on instabilities in inventory dynamics that develop due to the topology of the supply network. To be able to capture these topology-induced instabilities, we use a method called generalized modeling, a minimally specified modeling approach adopted from ecology. This method maps the functional dependencies of production rates on the inventory levels of different parts and products, which are imposed by the network topology, to a set of elasticity parameters. We perform a bifurcation analysis to investigate how these elasticities affect the stability. First, we show that dyads and serial supply chains are immune to topology-induced instabilities. In contrast, in a simple triadic network, where a supplier acts as both a first and a second tier supplier, we can identify instabilities that emerge from saddle-node, Hopf, and global homoclinic bifurcations. These bifurcations lead to different types of dynamical behavior, including exponential convergence to and divergence from a steady state, temporary oscillations around a steady state, and co-existence of different types of dynamics, depending on initial conditions. Finally, we discuss managerial implications of the results.