Abstract: This research studies environment dimensions of Canadian petroleum refinery companies. It proposes an analysis of the supply chain and focuses on specific actions related to the following: reduction of contaminants; analysis of the operations process; development of parameters and characteristics that can evolve into a benchmarking system for measuring greenness efforts of petroleum refineries. Based on a previous model suggested by the first two authors, this analysis aims at defining the basic features of an 'Olympic' green supply chain, characterised by zero emissions, zero waste of resources, zero waste in activities, zero use of toxics, and zero waste in product life-cycle.
Abstract: Many organisations are beginning to acknowledge that strategies and practices, which incorporate environmental considerations, can be tooled to acquire a competitive advantage. While proactive and value-seeking approaches have been suggested in the management literature, very few theories and frameworks have been presented in the domain of supply chain operations. In this paper, we suggest a framework, using gap analysis to compare the greenness effort for concurrent product supply chains. This praxis would help managers to achieve the following: (1) assess and benchmark a supply chain effort for a company product against similar products produced by competitors and (2) determine the gap between the current supply chain greenness effort and the ideal or targeted green supply chain. An illustrative example is used to substantiate the main argument. The results of this research would help state authorities and industrial managers keep track of the efforts made by companies when addressing environmental issues. This study responds to the needs of researchers in the green supply chain to develop models easy to understand and to apply by managers, not operational research specialists.
Abstract: New age companies are forging partnerships with other firms to market products that have been assembled through manufacturing activities distributed at different locations. These locations belong to more than one company and the product passes through these different sites during its manufacturing stages. This manufacturing collaboration is known as network-manufacturing. According to the network philosophy, companies form alliances to manufacture a product and share in its operating profits. This paper proposes a framework and methodology for profit sharing and transfer-pricing between network companies. We propose a paradigm that enables maximization of operating profits by the manufacturing-network in its larger supply chain, suggesting a departure from the model that maximizes profits for the individual company within the sphere of its own supply chain.
Abstract: One of the problems engendered by the internet would be an increase of the price's sensitivity resulting from an easier, less expensive comparison. This paper proposes a pricing model based on formal propositions, based upon mathematical analysis, which would allow a firm to maximise its value-added, competitive advantages perceived by customers, and its market share for a product distributed to a global market via internet. Our framework study is based on any new product upon which the customer is able to estimate a value, which is based upon a product's attributes compared to those of substituted or concurrent products. The conclusion is: in order to maximise simultaneously the value-added, the market share and the competitive advantages perceived by the client, the firm should share with the client the potential competitive advantage. The sharing mode depends on the demand curve of the product and on the aggressiveness of the competition.
Abstract: A distributed product has its manufacturing activities distributed among many locations. These locations could belong to one or more firms in a manufacturing network. Often, components needed to manufacture a distributed product move through different nodes in the network and sometimes across international borders. Hence, a transfer price is needed for the purpose of estimating duties and drawbacks. Being aware of the fact that transfer price can be used to manipulate taxable profits, many countries have instituted rules concerning transfer price estimation. For example, in the United Sates, the Internal Revenue Service (IRS) says that the right price is the market value. But for many components it is difficult to find a free market. Similar products may exist in the market but they may have different attributes. In such cases, it is important to be able to estimate the market-driven transfer price, given other similar products in the open market.We develop a method using a mathematical programming model and providing companies an opportunity to work proactively with the IRS in a cooperative manner in order to avoid costly audit and litigation. This way, companies avoid penalties and also gain certainty regarding tax liability. An example illustrating the method is presented.
Abstract: Companies strive to position themselves to maximize the value they add to the supply chains in which they are embedded. This raises strategic questions such as: Which durable resources should be developed to enhance current core competencies? Which activities should be externalized and to which potential partner should they be given? Which internal activities should be preserved and developed? How should the resources of the enterprise be allocated to activities? The aim of this paper is to propose a mathematical programming model of the extended enterprise which can be used to investigate this type of strategic networking issues. A number of general network modeling constructs are first proposed. A model to optimize the supply chain structure under specific assumptions on the nature of production, cost and value functions in typical production/distribution companies is then derived. A heuristic to obtain solutions from the model is also presented. Finally, an example based on a refrigerator company is used to illustrate the usefulness of the approach.
Abstract: Business networking for the purpose of becoming globally more competitive seems to form the very basis of strategic decisions in many companies today. The concept of ânetwork companyâ has recently been the subject of many studies in the literature, perhaps mostly due to its world wide practice among more successful companies. Yet, there is no model-based formal treatment of the concept per se leading to the development of frameworks that are instrumental in formulating networking strategies. This paper addresses itself to formalizing the concept of ânetwork companyâ within the context of global competition. For this purpose, ânetwork companyâ is positioned in the value chain of pertinent productâmarket chain systems and then its functioning is decomposed into a set of minimal and basic components, which are termed âelementary resources, methods, products, and activitiesâ. The set thus defined at that detail level is used to analyze and evaluate ânetwork companiesâ at any desired condensed level reflecting the needs of a project or a function for the purpose of competitive strategy formulation. The formal analytical framework developed is then discussed in association with three basic approaches to competitive strategy formulation: resource-based strategy, activity-based strategy, and strategy based on the economic theory of the firm. The usefulness of the proposed framework in connection with these approaches is expressed in terms of formal propositions.