Environmental determinants of VMI adoption: An exploratory analysis

This study empirically examines the determinants of adoption of Vendor Managed Inventory programs that have recently gained popularity in many industries. To achieve this goal, survey scales are adapted and developed for buyer and supplier market competitiveness, product demand, buyer operational uncertainty, and buyer–supplier cooperation. Based on the analysis of responses from purchasing managers in three industries, structural equation modeling results suggest that the competitiveness of the supplier’s market and buyer–supplier cooperation are positively associated with VMI adoption, while operational uncertainty for the buyer is negatively associated with VMI adoption. Managerial implications and limitations of the study are also noted.     

Multiple sourcing under supplier failure risk and quantity discount: A genetic algorithm approach

This paper investigates an order allocation problem of a manufacturer/buyer among multiple suppliers under the risks of supply disruption. A mixed integer non-linear programming (MINLP) model is developed for order allocation considering different capacity, failure probability and quantity discounts for each supplier. We have shown that the formulated problem is NP-hard in nature and genetic algorithm (GA) approach is used to solve it. The model is illustrated through a numerical study and the result portrays that the cost of supplier has more influence on order quantity allocation rather than supplier’s failure probability.     

Coordination with a backup supplier through buy-back contract under supply disruption

This paper studies a buy-back contract between a buyer and a backup supplier when the buyer’s main supplier experiences disruptions. The expected profit functions and the optimal decisions of the contract players are derived through a sequential optimization process. The common properties of the contract as well as the differences under the demand uncertainty and the main supplier’s recurrent supply uncertainty are explored through comparative studies and numerical examples. The study contributes to the literature by providing a better understanding of the impacts of demand and supply uncertainties and by shedding insights on the value of a backup supply.     

A conceptual framework for agent-based modelling of logistics services

This paper presents an agent-based microsimulation framework that represents the diversity of roles and functions of actors in the freight system, how they interact through markets and how interactions between actors are established in markets through contracts. The framework provides sensitivity to technology trends, business trends, and policy scenarios. Logistics costs, outsourcing of logistics services to third party logistics firms, growth or retraction of various industry sectors, and the impact of new supply channels are explicitly represented. Data sources available in Toronto, Canada and new data collection efforts required for model estimation are described.     

A qualitative study of outsourced aeronautical maintenance: The case of Brazilian organizations

The outsourcing of aeronautical maintenance has been criticized for the quality of services offered. According to the literature, airlines have contracted repair stations to perform maintenance activities on their aircraft or parts when attempting to optimize resources (time, facilities, personnel, money). The attempt to reduce costs in maintenance activities and regulatory deficiencies can lead to maintenance management practices that could threaten equipment airworthiness. Therefore, the aim of this research was to evaluate whether outsourced aeronautical maintenance is aligned to common industrial maintenance management practices. To achieve this goal, qualitative exploratory research was conducted on Brazilian repair stations. For data collection, a questionnaire was developed based on seven factors related to aircraft maintenance. The data revealed that a mismatch exists between the best maintenance management practices and expected repair station performance.     

Third-party remanufacturing mode selection: Outsourcing or authorization?

Many original equipment manufacturers (OEMs) allow third-party remanufacturers (3PRs) to perform remanufacturing operations of branded or patented products – through either outsourcing or authorization. This study compares these two modes by modeling the game between the OEM and the 3PR on equilibrium quantities, prices, and profits. The results suggest that when consumers perceive the remanufactured products with a low value, the 3PR prefers the authorization approach; otherwise the 3PR prefers the outsourcing approach. However, in both scenarios, the OEM obtains higher profit through outsourcing than through authorization. Our further analysis compares two modes’ impacts on consumer surplus, social welfare, and environment.     

Are outsourcing and non-aeronautical revenues important drivers in the efficiency of Spanish airports?

This paper evaluates the influence of contracting out, or outsourcing, certain airport services and of commercial diversification strategy. Although most of the effort is being put towards applying non-parametric techniques in airport efficiency studies, we have chosen parametric methodology. We use a distance function, as it has known advantages. The findings show the positive contribution of outsourcing and non-aeronautical revenues on the efficiency of the Spanish airports' network.     

The dark side of logistics outsourcing - Unraveling the potential risks leading to failed relationships

We identify and empirically examine the potential risk factors and their structural relationships that can cause a logistics outsourcing relationship to fail. Specifically, we investigate how the relationship risk as perceived by apparel wholesalers as user firms influence their evaluation on the asset and competence entrusted with their logistics service providers, which are logistics outsourcing risk factors considered important by the former in determining continued relationships with the latter. The results highlight the need for relationship management by user firms to mitigate the risks in asset and competence specifically invested in logistics service providers for their outsourced activities.     

On the use of RFID in the management of reusable containers in closed-loop supply chains under stochastic container return quantities

This paper studies a closed-loop supply chain that uses containers for transporting products from a supplier to a retailer. At the retailer, used containers are collected and returned to the supplier. The supplier inspects returned containers, and either repairs and reuses or disposes them. This paper studies the case where the fraction of containers that are returned to the supplier is stochastic, and where an RFID system can be used to support the tracking of container positions in the supply chain. The use of RFID leads to improved information on the return of containers and better return predictability as well as higher return rates, which we model as an increase in the mean return rate of containers and a reduction in return variance. The paper first develops a mathematical planning model for this scenario, and it then studies how the use of RFID impacts the performance of the system. In addition, it analyzes under which conditions the use of RFID is economical, and in which situations traditional container systems should be preferred.     

Determinants of information systems outsourcing in hotels from the resource‐based view: an empirical study

The objective of this study is to determine the factors affecting outsourcing of information system/information technology (IS/IT) activities in hotels from the resource‐based view of the firm. The factors considered are the conditions that the systems area resources must meet for that area to have a competitive value. The reasons, which are both strategic and tactical, are discussed. The former are mainly related to quality, improvement of service and concentration on core activities, whereas the latter are tactical or cost‐related reasons justifying the selection of the outsourcing strategy for this activity. The results indicate the factors determining IS/IT activity outsourcing are related to the creation of valuable resources and to market transaction costs, and the IS/IT area performance does not influence the decision to outsource. It is also shown that the reasons justifying outsourcing are strategic; related to the core competencies and quality of service and not to cost reduction. Copyright © 2005 John Wiley & Sons, Ltd.     

An agent based model concept for assessing modal share in inter-regional freight transport markets

This paper introduces an Agent based modelling approach to model inter-urban freight transport between two or more trading regions. The use of the model is to ascertain the modal share of competing transport modes (road and intermodal) while taking complex transport service supply–demand dynamics into account. It is structured by modules describing company generation, supplier choice, modal competition and International road freight transport market dynamics. The behaviour of individual actors is simulated using normative agent behaviour and market knowledge. Using the micro-simulation approach, shippers and carriers (primarily road hauliers and a maritime based intermodal operator) interact through simulated contracts resulting in the generation of tours. The service performance of the tours is fed back into the model for decision making during contract deliberations. Preliminary application of model to Mediterranean case study show that market share gains of around 25–30% are obtained with policy interventions of financial subsidies to intermodal services and more frequent shipping services in the intermodal transport respectively.     

A supply chain model of vendor managed inventory

This research evaluates how vendor managed inventory (VMI) affects a supply channel. Specifically, VMI always leads to a higher buyer's profit, but supplier's profit varies. In the short-term, VMI is found to reduce total costs of the channel system, but under certain cost conditions between buyer and supplier, it could decrease the purchasing price and supplier's profit. In the long-run, it could more likely increase supplier's profit than in the short-run. Finally, VMI is an effective supply chain strategy that can realize many of the benefits obtainable only in a fully integrated supply chain.     

Modeling downstream petroleum supply chain: The importance of multi-mode transportation to strategic planning

This paper proposes a deterministic mixed integer linear programming (MILP) model for downstream petroleum supply chain (PSC) network to determine the optimal distribution center (DC) locations, capacities, transportation modes, and transfer volumes. The model minimizes multi-echelon multi-product cost along the refineries, distribution centers, transportation modes and demand nodes. The relationship between strategic planning and multimodal transportation is further elucidated. A case study was considered with real data from the U.S. petroleum industry and transportation networks within Geographic Information System (GIS). A scenario analysis is also conducted to demonstrate the impact of key parameters on PSC decisions and total cost.     

An integrated vendor–buyer model with stock-dependent demand

We develop an integrated vendor–buyer model for a two-stage supply chain. The vendor manufactures the product and delivers it in a number of equal-sized batches to the buyer. The items delivered are presented to the end customers in a display area. Demand is assumed to be positively dependent on the amount of items displayed. The objective is to maximize total supply chain profit. The numerical analysis shows that buyer–vendor coordination is more profitable in situations when demand is more stock dependent. It also shows that the effect of double marginalization provides a link between the non-coordinated and the coordinated case.     

The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan

Recently, many companies have recognized the concepts of green supply chain management or supply chain environmental management. However, relatively little research attention has been devoted to the consideration of relations between greening the supply chain, green innovation, environmental performance and competitive advantage. Hence, this paper aims to bridge this gap by providing empirical evidence to encourage companies to implement green supply chain and green innovation in order to improve their environmental performance, and to enhance their competitive advantage in the global market. A model is constructed to link the aforementioned constructs. Data were collected through a questionnaire-based survey across 124 companies from eight industry sectors in Taiwan. The data are analyzed using Structural Equation Modeling and the results from the final measurement model are used to evaluate the structural model that verifies the significance of the proposed relationships. A prominent result of this study is that greening the supplier through green innovation contributes significant benefits to the environmental performance and competitive advantage of the firm.     

The successful management of organisational change in tourism SMEs: initial findings in UK visitor attractions

Organisational change management theory for small and medium‐sized enterprises (SMEs) within the tourism industry is an under‐researched field. Changing political, economic, social and technological factors can leave unprepared SMEs exposed to external as well as internal pressures, which can lead to underperformance, or in worst case scenario, business failure. This paper, reporting on the findings of exploratory research of nine UK‐based visitor attractions, all qualifying as SMEs, suggests that the successful management of change is crucial for SMEs' survival and success. The findings argue that the current approach taken to organisational change management within the industry is bumpy incremental, bumpy continuous and planned. Hence, the paper provides a framework for managing organisational change based on eight critical success factors identified by the study: adaptability and flexibility, commitment and support, communication and co‐operation, continuous learning and improvement, formal strategies, motivation and reward, pragmatism, and the right people. Copyright © 2008 John Wiley & Sons, Ltd.     

Factor substitution and complementarity in the Asia airport industry

This paper measures and analyzes how the substitutability between various factors in Asia airports has changed over the years. Production factors are decomposed into capital and labor to examine the role of outsourcing in the recent years. The results reveal that outsourcing has emerged from being a substitute for labor and a complementary factor to capital in the late 1990s to become a substitute for both labor and capital. Increases in price elasticities and substitutability of labor and capital indicate that airports in Asia have become more adept at reacting to price changes.     

现代物流对武汉汽车工业的支撑作用

以神龙汽车公司为例,对武汉汽车工业发展现状和存在问题进行分析,说明现代物流对武汉汽车工业具有支撑作用,利用现代物流可以降低企业的库存水平和零部件采购成本,以及通过将物流业务外包,可提高企业的核心竞争力。     

Ride service outsourcing for profit maximization

Transportation service subcontracting is becoming an effective means of business for many leading carriers to maintain their market dominance and profitability. This research is based on an outsourcing practice in one of the few largest limousine fleet companies in the US, whose (mostly advance) demand for services often exceeds its capacity. We develop a model for ride service outsourcing. A column generation method is proposed. The outsourcing decision is made simultaneously with pre-scheduling of in-house ride services as well as staffing. Test with services data indicates that the developed method dramatically improves the carrier’s outsourcing decision.     

Methodology Influences on Destination Image: The Case of Michigan

In the last 30 years, destination image has emerged as a dominant theme in tourism research studies for both tourism industry practitioners and academic researchers. The results of these studies are intended for destination management purposes and thus are of utmost importance for destination success. Various factors are postulated and demonstrated to influence destination image; however, there is a lack of focus on the methodologies employed when evaluating the image of a destination. The purpose of this study is to investigate the potential impact of some methodological tools used when measuring destination image. A large scale and longitudinal market survey dataset of the Michigan Regional Travel Market Survey was analysed for the purpose of this study. A wide range of methodological factors from data gathering modes to analytical techniques utilised were found to influence the revealed image of the study destination, Michigan. Detailed discussion of potential bias factors and potential research directions are provided.