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The Effect of Coercive Power on Supply Chain Inventory Replenishment Decisions
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Supply chains often consist of stakeholders with different power le-vels collaborating with each other in order to meet customer demand. This im-balance of power along the supply chain is a critical factor that affects its short and long-term behavior, as well as its overall stability and efficiency. The role and the impacts of power in distribution channels have been explored quite ex-tensively in Marketing, but far less so with regard to power in the context of supply chains. This paper explores the effect of power on supply chain func-tioning by focusing on a specific power type i.e. coercive power. More specifi-cally, the impact of power and power awareness on inventory replenishment human decision-making is investigated. An experimental approach with un-known market demand and local information availability is implemented so as to provide a controlled environment for decision-making. Three different treat-ments are implemented in order to create situations of balanced power, imba-lanced power without awareness and imbalanced power with awareness. Results show that power awareness does play a significant role in the way coer-cive power is exercised. In particular, a significant increase of the size and va-riability of order quantity and order time interval is observed in the case of imbalanced power with awareness.
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... Traditional manufacturing companies, which have ageing workforces, will therefore need to develop new strategies to deal with the change of the human role, by developing educational programmes for employees tat allow them to develop the new skill sets and raise awareness in topics, such as deep simulation and coding experience [226,232]. New education and training programmes should be initiated at universities, to compensate for this gap for future generations, to bring the students in contact with AM technologies, make them aware of current limitations, and bring them into contact with the industrial ecosystem. This will create a new generation of well-trained workers with the appropriate mindset and the required competence to direct a new digital manufacturing environment and lead it to further improvements [3]. ...
In this PhD project at DTU MEK, Mandaná Moshiri investigated how to define an integrated process chain for first time production of mould components to be used for plastic injection moulding using laser powder bed fusion metal additive manufacturing (AM) technologies. This technology is already used for fabricating injection moulding components, but its maturity and readiness for full-scale industrial applications it is still far from reality. Mandaná articulated her project over five main topics, each addressing a specific aspect for the major development of AM and its full adoption in the manufacturing industry. The topics started from a clear assessment of the advantages of using AM over conventional manufacturing in terms of technologies required and production cost impact, followed by an AM machines benchmarking to understand what are the current capabilities and limitations of AM. The technology gap between what AM can deliver and what it is required by injection moulding industrial applications was defined, exploring also new way of exploiting AM products for mould inserts, beyond the well-known enhancement of thermal management. In the last two topics, the systems and research areas for creating an integrated first-time-right process chain were analysed in the context of the Industry 4.0 framework including key-enabling technologies such as monitoring and simulation.
It has long been established that the mean throughput time is a result from the relationship between the work in process (WIP) and output rate. In reality, however, throughput times are frequently dispersed broadly around this mean. With the aid of a model originally developed for lateness, it is now possible to describe the throughput times of individual orders. Accordingly, the throughput time can be divided into two components: WIP-dependent throughput time and sequence-dependent throughput time.
We discuss alarm monitoring in process control supported by best practice used and standards implemented into recently developed engineering tools. Our paper describes aspects of a joint project development in the specific engineering company and VSB-Technical University of Ostrava. Our work focuses on monitoring assets and viewing status of conditions with help of data files acquired during commissioning process implementing the technology into practice. Alarm and event data received from technology process were analyzed according to standardized approaches with the aim to point out further limitations of alarm reports and develop an engineering tool for configuration of event and alarm limits of monitored variables in a control system during the commissioning phase under operation conditions.
Human decisions play an essential role in Operations and Supply Chain Management. However, these decisions are rarely integrated in simulation models of Production and Logistic Systems. One main reason for this fact is the strong dispersion of human decisions among a population, as well as the variability of a single individual’s decision over time. This work presents an experimental study of a human decision consisting in the dynamic selection of suppliers in a well-controlled laboratory environment. The analysis of the results obtained on a large population shows that individual decision behaviors can be grouped into representative clusters typifying different decision behaviors. The results obtained from this study opens up the prospect to significantly reduce the number of decision models required to simulate Production and Logistic Systems including human decisions and could also allow categorizing human decision behavior based on a set of known criteria.
This paper reports the findings of a two-year EPSRC funded research project into relationship and performance strategies in power regimes. The findings from 12 very different industrial and service sector cases studies demonstrate that there is a correlation between the ability to improve the performance of suppliers and the power circumstances that exist between the buyers and suppliers. Buyers appear to be able to achieve improved performance from suppliers in situations of buyer dominance or interdependence. The research also demonstrates that whatever the objective power circumstance managers often subjectively misperceive the appropriate sourcing choices available to them. As a result business relationships can be aligned, but they are often misaligned. Furthermore, misaligned relationships may be “remediable” but they may not.
Supply chain integration nowadays is considered an important approach to building and sustaining competitive advantages. Many previous empirical researches have investigated trust and power between suppliers and customers, yet, the effects of trust and coercive power on supply chain integration are still largely unknown. This study investigates trust, coercive power and their interaction and their impact on internal and supplier integration, based on data collected in Chinese supply chains. The results reveal that both trust and coercive power improve internal and supplier integration, but when trust is low, coercive power reduces internal integration. Contradictory to conventional wisdom that coercive power hinders cooperation, this study found that coercive power improves supplier integration in Chinese supply chains, with or without the presence of trust. This study provides significant insights for Chinese inter-organizational trust–power relationship management and supply chain integration practices.
Although several scholars have emphasized that a balance in power and control between partners enhances alliance stability, the extant studies have not explicitly addressed the performance implications of relational influence between partners. Drawing on social exchange theory, we examined the effect of mutual influence between partners on perceived alliance performance. An empirical examination of data collected from the alliance managers of 179 strategic alliances revealed that mutual influence between partners is positively related to perceived alliance performance. We also found that the relationship between mutual influence and perceived alliance performance is relatively more salient in international alliances than in domestic alliances.
Supply chain management (SCM), due to the large scale and wide scope of the multi-partner supply networks and to the high complexity of the dynamically occuring phenomena, is a difficult topic to teach. Conventional teaching approaches do not allow the students to sufficiently grasp neither the interrelationships between the elements of such a complex system nor the dynamic effects. SCM teaching has therefore a lot to gain from the use of learning-oriented virtual games.
One of the prerequisites for a supply chain network is the existence of a focal company, which possesses power to coordinate the network in order to realize its strategic objectives. Power represents one of the major elements of the supply chain management and seems to have been treated in the literature in contrasting ways from the two sides “dark” and “bright”. Using literature review we examine how these sides of power affect supply chain management from the viewpoint of the focal company with specific attention to coordination and cooperation issues and whether it can be used as a tool to promote the overall supply chain effectiveness.
One area in which experimental economics methods have been used to study operations prob- lems is supply-chain management. We survey results from a series of human experiments based on the popular beer distribution game and find cognitive limitations on the part of managers, in particular an underweighting of the supply line. We suggest mechanisms that may alleviate this bias, including sharing inventory and point-of-sale data, and reducing or- dering and shipping delays. Our research provides managerial lessons and identifies supply- chain issues that need further experimental study. (Games: group decisions. Inventory-production: multi-echelon.)
Explains some of the thinking that informs both the case study articles that appear in the same issue of Supply Chain Management: An International Journal and the EPSRC funded research project currently being undertaken at the Centre for Business Strategy and Procurement. A review is provided of the dominant ideas that currently inform “supply chain management thinking”. This paradigm is characterised as operational effectiveness and efficiency. A case is made for understanding supply chains from a strategic as well as from an operational perspective. Current supply chain management thinking is criticised for being atheoretical and descriptive, and a case is made for an analytical approach to supply chain thinking based around the concepts of power and value appropriation. A more analytically robust way of understanding supply chains is laid out.
Abstract Inter-firmpower,often plays a critical role in the supply chain. This research seeks to expose the detrimental and beneficial effects of power on the ability to build integrated, high performance buyer-supplier relationships. In doing so, the research highlights the need for power awareness and promotes the benefit of effective power management.
Supply Chain Dyads: Developing the Chain Linkages. International Institute for Management Development
- C Cordón
- T E Vollmann
Cordón, C., Vollmann, T.E.: Supply Chain Dyads: Developing the Chain Linkages. International Institute for Management Development, IMD (2005)