Managing business dynamics with adaptive supply chain portfolios
AbstractPractitioners and scholars readily agree that firms need to frequently adapt their supply chain portfolios to respond to today's rapidly evolving business dynamics. Adapting a well established supply chain portfolio, however, may involve high costs and expose a firm to unforeseeable risks. In this paper we address this issue. We differentiate business dynamics into product portfolio dynamics and global business dynamics and classify supply chain adaptation into high, medium and low. Building on these classifications we develop mathematical models to analyze how much supply chain adaptation a firm actually requires to respond to the business dynamics it faces. Our results indicate that supply chain adaptation may indeed be crucial for a firm to retain its competitiveness. The need for it, however, differs widely across firms. For example, a firm faced with product portfolio commoditization may be required to adapt its entire manufacturing footprint, while a firm with a high product turnover rate may not need to adapt its supply chain portfolio at all. Furthermore, the need for supply chain adaptation is not only determined by the business context a firm operates in but can be manipulated by the firm's product portfolio decisions. Finally, we also argue that, to exhaust the attainable benefits, a firm should carefully align its supply chain portfolio with the employed supply chain adaptation strategy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Operational Research.
Volume (Year): 215 (2011)
Issue (Month): 3 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eor
Supply chain management Network design Supply chain portfolio Quantitative model Dynamics;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lorentz, Harri & Kittipanya-ngam, Pichawadee & Singh Srai, Jagjit, 2013. "Emerging market characteristics and supply network adjustments in internationalising food supply chains," International Journal of Production Economics, Elsevier, vol. 145(1), pages 220-232.
- Ivanov, Dmitry & Sokolov, Boris, 2013. "Control and system-theoretic identification of the supply chain dynamics domain for planning, analysis and adaptation of performance under uncertainty," European Journal of Operational Research, Elsevier, vol. 224(2), pages 313-323.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.