IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v59y2008i4d10.1057_palgrave.jors.2602314.html
   My bibliography  Save this article

Prioritizing edge over node: process control in supply chain networks and push-pull strategies

Author

Listed:
  • M Pearson

    (Napier University)

Abstract

We outline recent work identifying an equilibrium solution in a supply chain network. The solution overcomes some difficulties associated with the bullwhip effect through limited cooperation and coordination along edges (links) in the supply chain network. The links constitute the stochastic modelling entities rather than the nodes of the network. We outline a range of feedback mechanisms that monitor and restore equilibrium in a supply chain. One of these is prediction capability charts which monitor the process. These charts are used by the decision makers to profile the allocation of inventory in the supply chain and identify out of control conditions. They maintain quality within the network, as well as intelligently track the way the network evolves in conditions of changing variability. We illustrate with an example simulating a push strategy in the clothing industry.

Suggested Citation

  • M Pearson, 2008. "Prioritizing edge over node: process control in supply chain networks and push-pull strategies," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(4), pages 494-502, April.
    • Handle: RePEc:pal:jorsoc:v:59:y:2008:i:4:d:10.1057_palgrave.jors.2602314
    DOI: 10.1057/palgrave.jors.2602314
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2602314
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/palgrave.jors.2602314?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gérard P. Cachon, 2004. "The Allocation of Inventory Risk in a Supply Chain: Push, Pull, and Advance-Purchase Discount Contracts," Management Science, INFORMS, vol. 50(2), pages 222-238, February.
    2. M A Pearson, 2000. "The incorporation of target performance measures and constrained optimisation in the newsboy problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(6), pages 744-754, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qu, Zhan & Raff, Horst & Schmitt, Nicolas, 2018. "Incentives through inventory control in supply chains," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 486-513.
    2. Mark E. Ferguson & Gregory A. DeCroix & Paul H. Zipkin, 2005. "Commitment decisions with partial information updating," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(8), pages 780-795, December.
    3. Sher, Mikhail M. & Kim, Seung-Lae & Banerjee, Avijit & Paz, Michael T., 2018. "A supply chain coordination mechanism for common items subject to failure in the electronics, defense, and medical industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 164-173.
    4. Li, Yongjian & Zhen, Xueping & Qi, Xiangtong & Cai, Gangshu (George), 2016. "Penalty and financial assistance in a supply chain with supply disruption," Omega, Elsevier, vol. 61(C), pages 167-181.
    5. Embrey, Matthew & Hyndman, Kyle & Riedl, Arno, 2021. "Bargaining with a residual claimant: An experimental study," Games and Economic Behavior, Elsevier, vol. 126(C), pages 335-354.
    6. Hong Fu & Yongkai Ma & Debing Ni & Xiaoqiang Cai, 2017. "Coordinating a decentralized hybrid push–pull assembly system with unreliable supply and uncertain demand," Annals of Operations Research, Springer, vol. 257(1), pages 537-557, October.
    7. Pyung-Hoi Koo, 2022. "A Capacity Cost-Sharing Contract for a Two-Stage Supply Chain with a Risk-Averse Supplier under a Bargaining Power," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    8. Alexei Alexandrov & Özlem Bedre-Defolie, 2014. "The Equivalence of Bundling and Advance Sales," Marketing Science, INFORMS, vol. 33(2), pages 259-272, March.
    9. Andres F. Jola-Sanchez & Juan Camilo Serpa, 2021. "Inventory in Times of War," Management Science, INFORMS, vol. 67(10), pages 6457-6479, October.
    10. Shuchen Ni & Chun Feng & Handan Gou, 2023. "Nash-Bargaining Fairness Concerns under Push and Pull Supply Chains," Mathematics, MDPI, vol. 11(23), pages 1-20, November.
    11. Wu, Song-Man & Chan, Felix T.S. & Chung, S.H., 2022. "The impact of buyback support on financing strategies for a capital-constrained supplier," International Journal of Production Economics, Elsevier, vol. 248(C).
    12. Chen, Jiguang & Hu, Qiying & Song, Jing-Sheng, 2017. "Effect of partial cross ownership on supply chain performance," European Journal of Operational Research, Elsevier, vol. 258(2), pages 525-536.
    13. Li, Hongmin & Wang, Yimin & Yin, Rui & Kull, Thomas J. & Choi, Thomas Y., 2012. "Target pricing: Demand-side versus supply-side approaches," International Journal of Production Economics, Elsevier, vol. 136(1), pages 172-184.
    14. Yumi Lee & Sang Hwa Song & Taesu Cheong, 2018. "The value of supply chain coordination under moral hazard: A case study of the consumer product supply chain," PLOS ONE, Public Library of Science, vol. 13(3), pages 1-16, March.
    15. Budde, Maximilian & Minner, Stefan, 2014. "First- and second-price sealed-bid auctions applied to push and pull supply contracts," European Journal of Operational Research, Elsevier, vol. 237(1), pages 370-382.
    16. Maestrini, Vieri & Luzzini, Davide & Caniato, Federico & Ronchi, Stefano, 2018. "Effects of monitoring and incentives on supplier performance: An agency theory perspective," International Journal of Production Economics, Elsevier, vol. 203(C), pages 322-332.
    17. Li, Xiang & Li, Yongjian & Cai, Xiaoqiang, 2011. "On a multi-period supply chain system with supplementary order opportunity," European Journal of Operational Research, Elsevier, vol. 209(3), pages 273-284, March.
    18. Ye, Yu-Sen & Ma, Zu-Jun & Dai, Ying, 2016. "The price of anarchy in competitive reverse supply chains with quality-dependent price-only contracts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 86-107.
    19. Shen, Houcai & Pang, Zhan & Cheng, T.C.E., 2011. "The component procurement problem for the loss-averse manufacturer with spot purchase," International Journal of Production Economics, Elsevier, vol. 132(1), pages 146-153, July.
    20. Harish Krishnan & Roman Kapuscinski & David A. Butz, 2010. "Quick Response and Retailer Effort," Management Science, INFORMS, vol. 56(6), pages 962-977, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:59:y:2008:i:4:d:10.1057_palgrave.jors.2602314. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.