Measuring supply chain risk: Predicting motor carriers’ ability to withstand disruptive environmental change using conjoint analysis

Supply chain risk measurement is an expanding research stream that considers the ability of networked firms to anticipate and respond to significant environmental risks, including major disruptions and unexpected events. However measuring and quantifying supply chain risk has proved an enormous challenge and this research contributes to this goal by developing a risk assessment scorecard, using conjoint analysis, for motor carrier firms. The resultant motor-carrier scorecard has been scaled from 300 to 900, to resemble the well-known FICO score for assessing consumer creditworthiness. Our scoring model enables motor carriers – and the firms that depend upon them in intermodal supply chains – to assess carriers’ ability to withstand major disruptive events, which are broadly defined as events which might lead to a significant drop in carriers’ income and profitability (e.g., such as that which occurred on September 11, 2001). Carriers with weaker risk scores (<600, on a 300–900 scale) are more likely to experience financial distress (and as a result possibly exit the industry itself); those with scores above 600 are less likely to depart. The model correctly identified 77 percent of motor carriers that ultimately exited the trucking industry following the significant environmental disruption caused by 9/11. Our computational experience indicates that the model accuracy, quantified in terms of Type I and Type II errors, compares favorably to prior results reported in the credit scoring literature.     

Measuring energy and environmental efficiency of transportation systems in China based on a parallel DEA approach

Because of China’s rapid economic development, its transportation system has become one of China’s high-energy-consumption and high-pollution-emission sectors. However, little research has been done which pays close attention to China’s transportation system, especially in terms of energy and environmental efficiency evaluation. In this paper, data envelopment analysis (DEA) is applied to measure the energy and environment performance of transportation systems in China with the goal of sustainable development. This paper treats transportation as a parallel system consisting of subsystems for passenger transportation and freight transportation, and extends a parallel DEA approach to evaluate the efficiency of each subsystem. An efficiency decomposition procedure is proposed to obtain the highest achievable subsystem efficiency. Our empirical study on 30 of mainland China’s provincial-level regions shows that most of them have a low efficiency in their transportation system and the two parallel subsystems. There are large efficiency differences between the passenger and freight transportation subsystems. In addition, unbalanced development has occurred in the three large areas of China, with the east having the highest efficiency, followed by central China and then west. Therefore, more measures should be taken to balance and coordinate the development between the three large areas and between the two subsystems within them. Our analysis approach gives data for determining effective measures.     

Comparison of data envelopment analysis and deterministic parametric frontier approaches: an application in the Norwegian road construction sector

This paper analyzes efficiency in the Norwegian road sector by using two competing methods. The first is Data Envelopment Analysis (DEA), while the second is Deterministic Frontier Analysis (DFA) with a Cobb‐Douglas kernel specification. Both approaches show similarities with respect to efficiency distribution. The rock‐blasting sectors potential for efficiency improvement is in the range 19–59 percent. Both approaches demonstrate decreasing return to scale properties for the average unit. There is a significant correlation between size and efficiency indicating that larger units perform better than smaller ones. Precautionary blasting mainly performed in densely populated areas is also found to explain much of the variations in efficiency scores. Any policy implication should therefore carefully examine exogenous factors. The main difference between the two approaches, which can be explained by the number of parameters to be determined, concerns level of scores rather than their distribution. However, there are arguments that advocate DEA rather than DFA in the rock‐blasting sector.     

Assessing carbon footprint and energy efficiency in competing supply chains: Review - Case studies and benchmarking

This article compares the energy consumption and CO₂ emissions of supply chains in Belgium, France and UK looking in particular at, jeans, yogurts, apples, tomatoes and furniture. We use a generic methodology that allows comparability across the supply chain of products, supply chains, and countries. Our benchmarking show relatively high emissions for maritime transport and the consumer leg, while logistics activities such as storage and road freight exhibit relatively low emissions. The influences of distance, retail type, area density and consumer behaviour are also examined.     

Joint impact of competition,ownership form and economic regulation on airport performance and pricing

The combined impact of ownership form, economic regulation and competition on airport performance is analyzed using data envelopment analysis to measure cost efficiency in the first stage and regression analysis to measure the impact of the environment in the second stage. The empirical results of an analysis of European and Australian airports over a 10 year timeframe reveal that under relatively non-competitive conditions, public airports operate less cost efficiently than fully private airports. Irrespective of ownership form, regulation is necessary to emulate competitive forces thus pushing airport management towards cost efficiency and reasonable pricing policies. Under potential regional or hub competition, economic regulation inhibits airports of any ownership form from operating and pricing efficiently. Although public and fully private airports operate equally efficiently in a competitive setting, private airports still set higher aeronautical charges. Furthermore, mixed ownership forms with a majority public holding are neither cost efficient nor low price, irrespective of the level of competition.     

How to assess sustainability of suppliers in volume discount context? A new data envelopment analysis approach

In this paper, we reformulate conventional data envelopment analysis (DEA) models and propose a novel method for evaluating sustainability of suppliers in the presence of interval volume discount offers, fuzzy data, and ordinal data. To this end, we convert all data into interval data. To convert fuzzy data into interval data, we use nearest weighted interval approximation by applying weighting function and we convert each ordinal data into interval one. Then, using enhanced Russell model, interval efficiencies are obtained. After that, using preference degree approach, we rank suppliers. Finally, a case study is presented to illustrate our proposed approach.     

Build-to-order supply chain network design under supply and demand uncertainties

Supply chain disruptions are unintended, unwanted situations resulting in a negative supply chain performance. We study the supply chain network design under supply and demand uncertainty with embedded supply chain disruption mitigation strategies, postponement with downward substitution, centralized stocking and supplier sourcing base. We designed an integrated supply-side, manufacturing and demand-side operations network in such that the total expected operating cost is minimized. We modeled it in a deterministic equivalent formulation. An L-shaped decomposition with an additional decomposition step in the master problem is proposed. The computational results showed that parallel sourcing has a cost advantage against single sourcing under supply disruptions. In addition, the build-to-order (BTO) manufacturing mitigation process has its greatest impact with high variations on demands and is integrated with the component downward substitution. Lastly, the manufacturer needs to order differentiated components to cover its requirement for maximal product demand to prevent the loss of sale, even with fewer modules in stock.     

Assessing the energy and greenhouse gas emissions mitigation effectiveness of potential US modal freight policies

This paper estimates the total embodied energy and emissions modal freight requirements across the supply chain for each of over 400 sectors using Bureau of Transportation Statistics Commodity Flow Survey data and Bureau of Economic Analysis economic input-output tables for 2002. Across all sectors, direct domestic truck and rail transportation are similar in magnitude for embodied freight transportation of goods and services in terms of ton-km. However, the sectors differ significantly in energy consumption, greenhouse gas emissions, and costs per ton-km. Recent pressure to reduce energy consumption and emissions has motivated a search for more efficient freight mode choices. One solution would be to shift freight transportation away from modes that require more energy and emit more (e.g., truck) to modes that consume and emit less (e.g., rail and water).Our results show there are no individual sectors for which targeting changes would significantly decrease the total freight transportation energy and emissions, therefore we have also looked at the prospect of policies encouraging many sectors to shift modes. There are four scenarios analyzed: (1) shifting all truck to rail, shifting top 20% sector mode choice, (2) based on their emissions, (3) based on a multi-attribute analysis, and (4) increasing truck efficiency (e.g., mpg). Increasing truck efficiency by 10% results in similar energy and emissions reductions (approximately 7% for energy and 6% for emissions) as targeting the top 20% of sectors when selected based on emissions, whereas selecting the top 20% based on availability to shift from truck results in slightly less reductions of energy and emissions. Implementing policies to encourage higher efficiency in freight trucks may be a sufficient short term goal while efforts to reduce truck freight transportation through sectoral policies are implemented in the long term.     

Product substitution and dual sourcing under random supply failures

Product substitution can mitigate supply chain disruptions. However, it may not be very effective without multiple sourcing. In this paper, we consider a supply chain with two downward substitutable products. The products can be ordered from an unreliable supplier or a reliable but more expensive supplier. It is found that in an optimal sourcing policy the higher-grade product should be preferred over the lower-grade product. A sufficient condition is given for an optimal policy where only the higher-grade product is dual-sourced. The effect of substitution is contrasted with the non-substitution case. Numerical study shows the impact of demand variability and correlation on the effect of product substitution and the corresponding optimal sourcing policy.     

Centralized resource allocation with emission resistance in a two-stage production system: Evidence from a Taiwan’s container shipping company

This paper proposes a centralized network data envelopment analysis model that combines the centralized data envelopment analysis model and network data envelopment analysis to allocate resources among sub-units. In the proposed model, this paper also considers the situations in which undesirable outputs are jointly produced with desirable outputs, the reduction of undesirable outputs is associated with the reduction of energy inputs, and some inputs are dedicated to the specific sub-unit while some inputs are shared among sub-units. To comprehensively investigate this issue, two cases are discussed. One case explores the situation in which common inputs are shared among the first process of sub-units, while the other case explores the situation in which common inputs are also shared among two processes of sub-units. The proposed model is illustrated in an empirical example of 14 Asian shipping routes operated by a Taiwanese container shipping company. In order to avoid organizational resistance, minor and major adjustment policies are demonstrated. The minor adjustment policy transfers inputs among routes but maintains the original levels of input resources, whereas the major adjustment policy reduces the total amount of input resources. The results provide valuable information for the centralized decision-maker on how to reallocate resources among the sub-units.     

不同主导权结构下的双渠道供应链定价策略及协调机制研究

基于制造商开辟线上直销渠道与线下零售渠道构成双渠道供应链的背景下,结合实际的服务影响因素,对不同主导权结构下双渠道供应链各成员的定价策略和协调机制进行研究。分别构建制造商主导、零售商主导、垂直均衡三种分散决策下的两阶段Stackelberg博弈模型,研究发现相较于集中决策,分散决策下供应链成员在价格、需求、利润上均有所损失。为缓解渠道之间的矛盾与冲突,引入一种双向收益共享契约用于协调供应链。研究表明,在一定的收益共享范围内,双向收益共享契约可以完美协调供应链;对于主导企业而言,主导权越向自身集中,所需共享的收益比例也越小;随着零售商服务水平的增大,制造商的利润不断增大,零售商的利润不断减小,供应链整体利润呈先增后减趋势。     

南宁市白沙大桥北岸节点改造及其效果评价

文章以南宁市白沙大桥北岸节点改造设计为例,探讨城市道路平面交叉口改造设计的思路,同时从整体交通路网着眼,介绍采用交通仿真对改造效果进行评价的方法。