Supply Chain Theory and Applications Supply Chain Theory and Applications Edited by Vedran Kordic I-TECH Education and Publishing Published by the I-Tech Education and Publishing, Vienna, Austria Abstracting and non-profit use of the material is permitted with credit to the source. Statements and opinions expressed in the chapters are these of the individual contributors and not necessarily those of the editors or publisher. No responsibility is accepted for the accuracy of information contained in the published articles. Publisher assumes no responsibility liability for any damage or injury to persons or property arising out of the use of any materials, instructions, methods or ideas contained inside. After this work has been published by the Advanced Robotic Systems International, authors have the right to republish it, in whole or part, in any publication of which they are an author or editor, and the make other personal use of the work. © 2008 I-Tech Education and Publishing www.i-techonline.com Additional copies can be obtained from: publication@i-techonline.com First published February 2008 Printed in Croatia A catalog record for this book is available from the Austrian Library. Supply Chains, Theory and Applications, Edited by Vedran Kordic p. cm. ISBN 978-3-902613-22-6 1. Supply Chain. 2. Theory. 3. Applications. Preface Traditionally supply chain management has meant factories, assembly lines, ware- houses, transportation vehicles, and time sheets. Modern supply chain manage- ment is a highly complex, multidimensional problem set with virtually endless number of variables for optimization. An Internet enabled supply chain may have just-in-time delivery, precise inven- tory visibility, and up-to-the-minute distribution-tracking capabilities. Technology advances have enabled supply chains to become strategic weapons that can help avoid disasters, lower costs, and make money. From internal enterprise processes to external business transactions with suppliers, transporters, channels and end-users marks the wide range of challenges research- ers have to handle. The aim of this book is at revealing and illustrating this diversity in terms of scien- tific and theoretical fundamentals, prevailing concepts as well as current practical applications. Contents Preface V 1. Supply Chain Collaboration 001 Ana Meca and Judith Timmer 2. Towards a Quantitative Performance Measurement Model in a Buyer-Supplier Relationship Context 019 Lamia Berrah and Vincent Cliville 3. A Framework for Assessing and Managing Large Purchaser Minority Supplier Relationships in Supplier Diversity Initiatives 041 Nicholas Theodorakopoulos and Monder Ram 4. An Evaluation Framework for Supply Chains based on Corporate Culture Compatibility 059 Khalid Al-Mutawah and Vincent Lee 5. How Negotiation Influences the Effective Adoption of the Revenue Sharing Contract: A Multi-Agent Systems Approach 073 Ilaria Giannoccaro and Pierpaolo Pontrandolfo 6. Mean-Variance Analysis of Supply Chain Contracts 085 Tsan-Ming Choi 7. Developing Supply Chain Management System Evaluation Attributes Based on the Supply Chain Strategy 095 Chun-Chin Wie and Liang-Tu Chen 8. Impact of Hybrid Business Models in the Supply Chain Performance 113 C. Martinez-Olvera 9. Configuring Multi-Stage Global Supply Chains With Uncertain Demand 135 Guoqing Zhang and Behnaz Saboonchi VIII 10. Fuzzy Parameters and their Arithmetic Operations in Supply Chain Systems 153 Alex Rajan 11. Fuzzy Multiple Agent Decision Support Systems for Supply Chain Management 177 Mohammad Hossein Fazel Zarandi and Mohammad Mehdi Fazel Zarandi 12. Align Agile Drivers, Capabilities and Providers to Achieve Agility: a Fuzzy-Logic QFD Approach 205 Chwei-Shyong Tsai, Chien-Wen Chen and Ching-Torng Lin 13. Optimization Of Multi-Tiered Supply Chain Networks With Equilibrium Flows 231 Suh-Wen Chiou 14. Parameterization of MRP for Supply Planning Under Lead Time Uncertainties 247 A. Dolgui , F. Hnaien , A. Louly and H. Marian 15. Design, Management and Control of Logistic Distribution Systems 263 Riccardo Manzini and Rita Gamberini 16. Concurrent Design of Product Modules Structure and Global Supply Chain Configuration 291 H. A. ElMaraghy and N. Mahmoudi 17. Quantitative Models for Centralised Supply Chain Coordination 307 Mohamad Y. Jaber and Saeed Zolfaghari 18. Moving Segmentation Up the Supply-Chain: Supply Chain Segmentation and Artificial Neural Networks 339 Sunil Erevelles and Nobuyuki Fukawa 19. A Dynamic Resource Allocation on Service Supply Chain 351 Soo Wook Kim and Kanghwa Choi 20. Pricing in Supply Chain under Vendor Managed Inventory 387 Subramanian Nachiappan and Natarajan Jawahar 21. Transshipment Problems in Supply Chain Systems: Review and Extensions 427 Chuang-Chun Chiou IX 22. The Feasibility Analysis of Available-to-Promise in Supply-Chain System under Fuzzy Environment 449 Chen-Tung Chen 23. Assessing Improvement Opportunities and Risks of Supply Chain Transformation Projects 469 Alessandro Brun and Maria Caridi 24. Modeling of Supply Chain Contextual-Load Model for Instability Analysis 489 Nordin Saad, Visakan Kadirkamanathan and Stuart Bennett 25. New Measures for Supply Chain Vulnerability: Characterizing the Issue of Friction in the Modelling and Practice of Procurement 515 N.C. Simpson and P.G. Hancock 26. Competence Based Taxonomy of Supplier Firms in the Automotive Industry 537 Krisztina Demeter, Andrea Gelei and Istvan Jenei 27. Design of Multi-behavior Agents for Supply Chain Planning: An Application to the Lumber Industry 551 Pascal Forget, Sophie D’Amours, Jean-Marc Frayret and Jonathan Gaudreault [...]... J (19 51) “Optimal inventory policy,” Econometrica 19 , 250-272 Supply Chain Collaboration 15 Bondareva, O.N (19 63) “Applications of Linear Programming Methods to the Theory of Cooperative Games” (in Russian), Problemy Kibernety 10 , 11 9 13 9 Borm, P.E.M., Hamers, H., and Hendrickx, R (20 01) “Operations Research Games: A Survey, “ TOP 9, 13 9- 216 Cachon, G., Netessine, S (2004) Game theory in supply chain. .. “On Balanced Sets and Cores,” Naval Res Logist 14 , 453-460 Shapley, L.S (19 71) “Cores of Convex Games,” Int J Game Theory 1, 11 -26 Shapley, L.S., Shubik, M (19 69).”On market games,” J Econ Theory 1, 9-25 Shapley, L.S., Shubik, M (19 72) “The assignment game,” Int J Game Theory 1, 11 1 -13 0 Slikker, M., Fransoo J., and Wouters, M (20 01) “Joint Ordering in Multiple News-Vendor Situations: A Game Theoretical... and Timmer J (2007) “Cooperation and profit allocation in distribution chains,” Decision Support System 44, 17 -27 Hadley, G and Whitin, T.M (19 63) “Analysis of Inventory Systems,” Prentice-Hall, Englewood Cliffs, N.J Harris, F (19 13) “How many parts to make at once,” Factory, The Magazine of Management 10 , 13 5 -13 6, 15 2 Harris, F (19 15) “Operations and Cost,” Factory Management Series, A.W Shaw, Chicago,... management,” Annals of Operations Research 15 8, 18 3 -18 8 Supply Chain Collaboration 17 Muller, A., Scarsini, M., Shaked, M (2002) “The Newsvendor Game has a Nonempty Core”, Games Econ Behav 38, 11 8 -12 6 Nagarajan, M., Soši , G (2006) "Game-theoretic analysis of cooperation among supply chain agents: Review and extensions," European J Oper Res (Online November 3, 2006) Owen, G (19 75) "On the core of linear production... research on supply chains 12 Supply Chain: Theory and Applications Within cooperative game theory, bargaining games are the most popular tools to study cooperation among supply chain partners There are two recent reviews that pay attention to bargaining models Sarmah et al (2006) provide a review on supplier-retailer models in supply chain management The authors focus on coordination models in supply chain. .. Operational Research 16 2, 2 51- 269 18 Supply Chain: Theory and Applications Toledo, A (2002) “Problemas de Inventario con Descuento desde la perspectiva de la Teoría de Juegos,” Ph.D Thesis, Universidad Miguel Hernández of Elche Van den Heuvel, W., Borm, P and Hamers, H (2007) "Economic lot-sizing games," European Journal of Operational Research 17 6, 11 17 -11 30 Wagner, H.M and Whitin, T.M (19 58) “Dynamic... Paper 19 3, TUE, Eindhoven, The Netherlands Rockafellar, R and Wets, R (19 76) “Stochastic convex programming: relatively complete recourse and induced feasibility,” Math Programming 81, 3 01- 325 Sarmah, S.P., Acharya, D., Goyal, S.K (2006) “Buyer vendor coordination models in supply chain management,” European J Oper Res 17 5, 1- 15 Shapley, L.S (19 67) “On Balanced Sets and Cores,” Naval Res Logist 14 , 453-460... Econ Behav 32, 13 9 -15 6 Gerchak, Y and Gupta, D (19 91) ``On Apportioning Costs to Customers in Centralized Continuous Review Inventory Systems,'' J Oper Manage 10 , 546-5 51 Gillies, D.B (19 53) “Some Theorems on N-person Games Ph.D Dissertation, Department of Mathematics”, Princeton University Granot, D (19 86) “A generalized linear production model: A unified model”, Math Programming 34, 212 -222 Granot,... market, or situations of collaboration within a supply chain that involves three or more levels, like a manufacturer, supplier and a retailer Other than the ones already mentioned, some other ongoing and future research topics in supply chain collaboration are presented below 14 Supply Chain: Theory and Applications 5 .1 Cooperation in multi-supplier supply chains with bounded demand In this section, we... are several other areas of cooperative games that lend themselves nicely to applications in supply chains, but that we do not review One may think of bargaining models for negotiations among supply chain partners, network models to study multi-echelon supply chains, or coalition formation among supply chain partners, to name some themes For bargaining models and coalition formation we refer to the . in Supply Chain Systems 15 3 Alex Rajan 11 . Fuzzy Multiple Agent Decision Support Systems for Supply Chain Management 17 7 Mohammad Hossein Fazel Zarandi and Mohammad Mehdi Fazel Zarandi 12 Models in the Supply Chain Performance 11 3 C. Martinez-Olvera 9. Configuring Multi-Stage Global Supply Chains With Uncertain Demand 13 5 Guoqing Zhang and Behnaz Saboonchi VIII 10 . Fuzzy Parameters. Library. Supply Chains, Theory and Applications, Edited by Vedran Kordic p. cm. ISBN 978-3-902 613 -22-6 1. Supply Chain. 2. Theory. 3. Applications. Preface Traditionally supply chain management