Pierpaolo Pontrandolfo

A fuzzy echelon approach for inventory management in supply chains

Abstract This paper presents a methodology to define a supply chain (SC) inventory management policy, which is based on the concept of echelon stock and fuzzy set theory. In particular, the echelon stock concept is adopted to manage the SC inventory in an integrated manner, whereas fuzzy set theory is used to properly model the uncertainty associated with both market demand and inventory costs (e.g. holding and backorder costs). The methodology is applied on a three stage SC so as to show the ease of implementation. Finally, by adopting simulation, the performance of the three stage SC is assessed and shown to be superior to that, which the adoption of a local inventory management policy would guarantee.

Codes to coordinate supply chains: SMEs' experiences with SA8000

Purpose – Contracts and trust are mechanisms to coordinate processes in supply chains. However, contracts are incomplete and trust takes time to develop. The aim of this paper is to show how Social Accountability 8000 (SA8000) can help to manage supply chains (in particular small and medium‐sized companies as its partners) by solving the problem of incomplete contracts as well as replacing trust in new partnerships, especially with respect to intangible performance indicators.Design/methodology/approach – Supply chain management (with an emphasis on coordination) and corporate social responsibility (with an emphasis on codes, especially SA8000) are briefly described, based on a literature review. These descriptions led to three research propositions. In the second part, four cases describe the practice of SA8000. The richness of the cases provides both literal and theoretical replication. Finally, the theoretical and empirical results are compared, with specific regard to the research propositions.Finding...

Inventory management in supply chains: a reinforcement learning approach

Abstract A major issue in supply chain inventory management is the coordination of inventory policies adopted by different supply chain actors, such as suppliers, manufacturers, distributors, so as to smooth material flow and minimize costs while responsively meeting customer demand. This paper presents an approach to manage inventory decisions at all stages of the supply chain in an integrated manner. It allows an inventory order policy to be determined, which is aimed at optimizing the performance of the whole supply chain. The approach consists of three techniques: (i) Markov decision processes (MDP) and (ii) an artificial intelligent algorithm to solve MDPs, which is based on (iii) simulation modeling. In particular, the inventory problem is modeled as an MDP and a reinforcement learning (RL) algorithm is used to determine a near optimal inventory policy under an average reward criterion. RL is a simulation-based stochastic technique that proves very efficient particularly when the MDP size is large.

Supply chains within industrial districts: A theoretical framework

Abstract The literature on Industrial Districts (IDs) has emphasised the importance of inter-organisational relationships within this specific production model. However, this stream of studies has given less attention to conceptualise models and define techniques to effectively manage such relationships. In the paper a theoretical framework is proposed to characterise the IDs as a kind of production systems, on which basis appropriate managerial guidelines can be derived. In particular, the framework focuses on the supply chain/s within an ID and describes them in terms of physical, technological, strategic, and organisational dimensions. The theoretical framework is intended to help IDs, particularly the leader firms, better understand the whole production process so as to enhance the process performance. A case study of an Italian ID localised in Southern Italy is then discussed to validate the framework.

Project duration in stochastic networks by the PERT-path technique

Abstract Market turbulence, higher innovation rates and increasing organisational complexity, are among the reasons that have made project management concepts spread to several industries. This has emphasised complexity of projects and uncertainty in estimating activity duration, resulting in a higher criticality of project scheduling. PERT-state and PERT-path techniques address the project scheduling problem, focusing on network complexity and time uncertainty. Moving from these techniques, we discuss the concept of project evolution, which is defined as the sequence of project states (path) with the dates of transition between states. After a brief analysis of the stochastic project scheduling problem, we derive the equations that put into relation the duration of the project and those of every possible PERT-path. Based on these equations, an algorithm for determining the precise project duration is developed. It requires that path data be determined, which is possible and relatively easy when project activities are characterised by stochastic independence. Should not this be the case, the approach provides an approximate estimate of the project duration.

Analysis of information flows to enhance the coordination of production processes

Abstract This paper proposes a methodology to describe the information flows involved in the coordination of production processes. To this end, a process is represented as a set of interdependent tasks accomplished by resources. To manage task interdependencies, resources make decisions and exchange messages according to their decision-making responsibilities. By the assessment of a process coordination load , namely the effort required for resources to address coordination problems, the methodology can help managers enhance the adopted coordination form or improve the performed process as well as support the selection of the coordination technologies that better satisfy the information requirements.

The organizational perspective in supply chain management: an empirical analysis in Southern Italy

This paper addresses the supply chain (SC) co-ordination problem and emphasises the need to consider the involved organisational issues when dealing with it. In particular, the influence of the form of SC governance on the selection of SC co-ordination mechanisms is investigated. An empirical analysis on a sample of firms located in Southern Italy is carried out to study some theoretical assumptions. The latter are based on the available literature and suggest specific configurations of fit between the SC form of governance and the types of co-ordination mechanisms. In particular, we propose a conceptual model wherein the fit between the SC form of governance and the co-ordination mechanism is associated with a higher level of SC operational performance.

Negotiation and Auction Mechanisms: Two Systems and Two Experiments

Auction and negotiation are mechanisms used in market exchanges. Behavioral economics experiments focused on the mechanism efficiency which required highly simplified problems and contexts. This paper discusses an on-going project involving an experimental comparison of auction and negotiation mechanisms embedded in software which we have developed. Both reverse multi-attribute auctions and multi-bilateral negotiations are used in a transportation service procurement scenario. The potential contribution includes the verification of theoretical claims that auctions are more profitable for auction givers than negotiations. It also includes formulation of guidelines for appropriate design of multiattribute market mechanisms and their selection.

Small Business Social Responsibility in the Supply Chain: A Literature Review

The aim of the chapter is to investigate how Small- and Medium-sized Enterprises (SMEs) deal with Corporate Social Responsibility (CSR) along the supply chains to which they belong. The analysis is carried out by a literature review that aims at identifying: the role played by SMEs, both as buyers and suppliers; the practices implemented; drivers, risks, barriers to small business social responsibility in the supply chain, and the means to overcome such barriers. Most of the reviewed papers deal with small business social responsibility in general and investigate the role of SMEs only as suppliers of large customers. The most cited driver, risk, barrier, and means are: supply chain pressure, exclusion from supply chains, low power by SMEs, and partnership, respectively. The study also stresses questions that would benefit from further research, such as the effect of supply chain pressure on small business social responsibility. The study contributes to fill a gap in the literature as, to our knowledge, no literature reviews on small business social responsibility in supply chains have been developed.

Mapping the Knowledge Supply Chain to Foster Innovation

Knowledge Supply Chains (KSCs) are the networks that provide knowledge supplies so nourishing one or more business processes carried out by a firm. KSCs are particularly crucial for innovation development processes. The need to recur to open KSCs during the accomplishment of such processes is indeed emphasized by the recent literature on open innovation (Kirschbaum, 2005; Chesbrought, 2006; Gassman, 2006; Van de Vrande et al., 2009). However, as scholars adopt different definitions of openness and stress different practices, it is not clear what open really means (Dahlander and Gann, 2010). Research is called for to further classify the different practices and, above all, to measure the impact of open vs. closed innovation so as to support companies in the identification of the right balance (Enkel et al., 2009). In the paper a methodology to map and analyze KSCs arising during an innovation development process is proposed. The methodology is described with specific reference to New Product Development (NPD) which is widely common as well as strategic in many firms. The methodology supports the characterization of the knowledge supplies (also in terms of the adopted collaboration approach) and the assessment of their criticality within the NPD process. Hence, it (1) contributes to make the concept of openness clearer and (2) provide companies with a clear picture of the process and its criticalities.