IDEAS home Printed from https://ideas.repec.org/a/spr/operea/v24y2024i2d10.1007_s12351-024-00840-x.html
   My bibliography  Save this article

Bilateral shock effect and alleviation strategy: a game-theoretical study in international medical devices supply chain in the pandemic context

Author

Listed:
  • Zhisong Chen

    (Nanjing Normal University
    New York University
    Jiangsu Collaborative Innovation Centre for Modern Service Industry)

  • Xiaoying Niu

    (Nanjing Normal University)

  • Qingwu Gao

    (Nanjing Audit University)

  • Jun Wang

    (Nanjing Normal University)

Abstract

COVID-19 pandemic had induced serious bilateral shock of surging demand and supply constraints for the international medical devices supply chains. This bilateral shock effect is characterized and investigated, and the corresponding alleviation strategies are explored for three-tier international medical devices supply chain in the pandemic context through game-theoretical decision models and corresponding numerical and sensitivity analyses in this article. The research results show that: (i) the coordination strategy outperforms the sequential strategy regarding the operational performance for three-tier international medical devices supply chain. (ii) international medical devices supply chain under the scenario with pandemic impact and supply constraint performs worst in all the scenarios, due to the bilateral shock effect of both supply-side constraints and demand-side fluctuations. (iii) stabilizing market demand fluctuations of medical devices, breaking through the supply capacity constraints of key modules, and adopting coordination strategy based on revenue sharing contract, would be effective alleviation strategies for the bilateral shock effect of pandemic.

Suggested Citation

  • Zhisong Chen & Xiaoying Niu & Qingwu Gao & Jun Wang, 2024. "Bilateral shock effect and alleviation strategy: a game-theoretical study in international medical devices supply chain in the pandemic context," Operational Research, Springer, vol. 24(2), pages 1-37, June.
    • Handle: RePEc:spr:operea:v:24:y:2024:i:2:d:10.1007_s12351-024-00840-x
    DOI: 10.1007/s12351-024-00840-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12351-024-00840-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12351-024-00840-x?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. Shuya Yin, 2010. "Alliance Formation Among Perfectly Complementary Suppliers in a Price-Sensitive Assembly System," Manufacturing & Service Operations Management, INFORMS, vol. 12(3), pages 527-544, October.
    2. Başak Kalkancı & Feryal Erhun, 2012. "Pricing Games and Impact of Private Demand Information in Decentralized Assembly Systems," Operations Research, INFORMS, vol. 60(5), pages 1142-1156, October.
    3. Wen-Tsung Ho & Yu-Cheng Hsiao, 2014. "An integrated production and inventory model for a system comprising an assembly supply chain and a distribution network," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(5), pages 841-857, May.
    4. Qi, Lian, 2013. "A continuous-review inventory model with random disruptions at the primary supplier," European Journal of Operational Research, Elsevier, vol. 225(1), pages 59-74.
    5. Martin A. Lariviere, 2006. "A Note on Probability Distributions with Increasing Generalized Failure Rates," Operations Research, INFORMS, vol. 54(3), pages 602-604, June.
    6. Paul, Sanjoy Kumar & Sarker, Ruhul & Essam, Daryl, 2014. "Real time disruption management for a two-stage batch production–inventory system with reliability considerations," European Journal of Operational Research, Elsevier, vol. 237(1), pages 113-128.
    7. Zhi-Long Chen & Nicholas G. Hall, 2007. "Supply Chain Scheduling: Conflict and Cooperation in Assembly Systems," Operations Research, INFORMS, vol. 55(6), pages 1072-1089, December.
    8. May McMaster & Charlie Nettleton & Christeen Tom & Belanda Xu & Cheng Cao & Ping Qiao, 2020. "Risk Management: Rethinking Fashion Supply Chain Management for Multinational Corporations in Light of the COVID-19 Outbreak," JRFM, MDPI, vol. 13(8), pages 1-16, August.
    9. Rahman, Mohammad Anwar Ashek & Sarker, Bhaba R., 2007. "Supply chain models for an assembly system with preprocessing of raw materials," European Journal of Operational Research, Elsevier, vol. 181(2), pages 733-752, September.
    10. Scott M. Carr & Uday S. Karmarkar, 2005. "Competition in Multiechelon Assembly Supply Chains," Management Science, INFORMS, vol. 51(1), pages 45-59, January.
    11. Sushil Gupta & Martin K. Starr & Reza Zanjirani Farahani & Niki Matinrad, 2016. "Disaster Management from a POM Perspective: Mapping a New Domain," Production and Operations Management, Production and Operations Management Society, vol. 25(10), pages 1611-1637, October.
    12. Zhisong Chen & Jianhui Peng, 2022. "Should the assembly system with direct omnichannel introduce integrated management service? A game-theoretical modelling study," Electronic Commerce Research, Springer, vol. 22(4), pages 1307-1350, December.
    13. Martin A. Lariviere & Evan L. Porteus, 2001. "Selling to the Newsvendor: An Analysis of Price-Only Contracts," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 293-305, May.
    14. Huy Nguyen & Thomas C. Sharkey & John E. Mitchell & William A. Wallace, 2020. "Optimizing the recovery of disrupted single-sourced multi-echelon assembly supply chain networks," IISE Transactions, Taylor & Francis Journals, vol. 52(7), pages 703-720, July.
    15. Belhadi, Amine & Kamble, Sachin & Jabbour, Charbel Jose Chiappetta & Gunasekaran, Angappa & Ndubisi, Nelson Oly & Venkatesh, Mani, 2021. "Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    16. Nikolopoulos, Konstantinos & Punia, Sushil & Schäfers, Andreas & Tsinopoulos, Christos & Vasilakis, Chrysovalantis, 2021. "Forecasting and planning during a pandemic: COVID-19 growth rates, supply chain disruptions, and governmental decisions," European Journal of Operational Research, Elsevier, vol. 290(1), pages 99-115.
    17. Yu, Haisheng & Zeng, Amy Z. & Zhao, Lindu, 2009. "Single or dual sourcing: decision-making in the presence of supply chain disruption risks," Omega, Elsevier, vol. 37(4), pages 788-800, August.
    18. Yunzeng Wang & Li Jiang & Zuo-Jun Shen, 2004. "Channel Performance Under Consignment Contract with Revenue Sharing," Management Science, INFORMS, vol. 50(1), pages 34-47, January.
    19. Li Jiang & Yunzeng Wang, 2010. "Supplier Competition in Decentralized Assembly Systems with Price-Sensitive and Uncertain Demand," Manufacturing & Service Operations Management, INFORMS, vol. 12(1), pages 93-101, January.
    20. Fuqiang Zhang, 2006. "Competition, Cooperation, and Information Sharing in a Two-Echelon Assembly System," Manufacturing & Service Operations Management, INFORMS, vol. 8(3), pages 273-291, March.
    21. Mahesh Nagarajan & Greys Sošić, 2009. "Coalition Stability in Assembly Models," Operations Research, INFORMS, vol. 57(1), pages 131-145, February.
    22. Marko Hakovirta & Navodya Denuwara, 2020. "How COVID-19 Redefines the Concept of Sustainability," Sustainability, MDPI, vol. 12(9), pages 1-4, May.
    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. Lan, Yanfei & Cai, Xiaoqiang & Shang, Changjing & Zhang, Lianmin & Zhao, Ruiqing, 2020. "Heterogeneous suppliers’ contract design in assembly systems with asymmetric information," European Journal of Operational Research, Elsevier, vol. 286(1), pages 149-163.
    2. Zhisong Chen & Jianhui Peng, 2022. "Should the assembly system with direct omnichannel introduce integrated management service? A game-theoretical modelling study," Electronic Commerce Research, Springer, vol. 22(4), pages 1307-1350, December.
    3. Başak Kalkancı & Feryal Erhun, 2012. "Pricing Games and Impact of Private Demand Information in Decentralized Assembly Systems," Operations Research, INFORMS, vol. 60(5), pages 1142-1156, October.
    4. He, Yong & Zhao, Xuan & Krishnan, Harish & Jin, Shibo, 2022. "Cooperation among suppliers of complementary products in repeated interactions," International Journal of Production Economics, Elsevier, vol. 252(C).
    5. Fu, Hong & Ma, Yongkai & Cai, Xiaoqiang, 2018. "Downstream firm’s investment with equity holding in decentralized assembly systems," Omega, Elsevier, vol. 75(C), pages 27-56.
    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. Zhisong Chen & Shong-Iee Ivan Su, 2021. "Consignment supply chain cooperation for complementary products under online to offline business mode," Flexible Services and Manufacturing Journal, Springer, vol. 33(1), pages 136-182, March.
    8. Xiang Fang & Jun Ru & Yunzeng Wang, 2021. "The Effect of List Price on Channel Performance with Consignment," Production and Operations Management, Production and Operations Management Society, vol. 30(1), pages 235-252, January.
    9. Yunzeng Wang, 2006. "Joint Pricing-Production Decisions in Supply Chains of Complementary Products with Uncertain Demand," Operations Research, INFORMS, vol. 54(6), pages 1110-1127, December.
    10. Li, Tingting & Chen, Junlin, 2020. "Alliance formation in assembly systems with quality-improvement incentives," European Journal of Operational Research, Elsevier, vol. 285(3), pages 931-940.
    11. Zhisong Chen & Li Fang & Shong-Iee Ivan Su, 2021. "The value of offline channel subsidy in bricks and clicks: an O2O supply chain coordination perspective," Electronic Commerce Research, Springer, vol. 21(2), pages 599-643, June.
    12. Zhisong Chen & Chaonan Tang & Jianhui Peng, 2023. "Nominal effect vs actual effect: overconfidence in a consignment omnichannel," Electronic Commerce Research, Springer, vol. 23(2), pages 843-876, June.
    13. Bin Hu & Anyan Qi, 2018. "Optimal Procurement Mechanisms for Assembly," Manufacturing & Service Operations Management, INFORMS, vol. 20(4), pages 655-666, October.
    14. Yuyue Song & Saibal Ray & Shanling Li, 2008. "Structural Properties of Buyback Contracts for Price-Setting Newsvendors," Manufacturing & Service Operations Management, INFORMS, vol. 10(1), pages 1-18, November.
    15. Woonghee Tim Huh & Kun Soo Park, 2013. "Impact of transfer pricing methods for tax purposes on supply chain performance under demand uncertainty," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(4), pages 269-293, June.
    16. Li Jiang & Yunzeng Wang, 2010. "Supplier Competition in Decentralized Assembly Systems with Price-Sensitive and Uncertain Demand," Manufacturing & Service Operations Management, INFORMS, vol. 12(1), pages 93-101, January.
    17. Xiao Huang & Tamer Boyacı & Mehmet Gümüş & Saibal Ray & Dan Zhang, 2016. "United We Stand or Divided We Stand? Strategic Supplier Alliances Under Order Default Risk," Management Science, INFORMS, vol. 62(5), pages 1297-1315, May.
    18. Yuhong He & Shuya Yin, 2015. "Joint Selling of Complementary Components Under Brand and Retail Competition," Manufacturing & Service Operations Management, INFORMS, vol. 17(4), pages 470-479, October.
    19. Aadhaar Chaturvedi, 2023. "Contracting with multiple suppliers: A multi‐item buyer's make versus buy decision," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 434-448, February.
    20. Amirmohsen Golmohammadi & Alireza Tajbakhsh & Mohamed Dia & Pawoumodom M. Takouda, 2022. "Effect of timing on reliability improvement and ordering decisions in a decentralized assembly system," Annals of Operations Research, Springer, vol. 312(1), pages 159-192, May.

    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:spr:operea:v:24:y:2024:i:2:d:10.1007_s12351-024-00840-x. 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.springer.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.