THE IMPACT OF A VENDOR-MANAGED INVENTORY POLICY ON THE CASH-BULLWHIP EFFECT

It is essential to secure a sustainable flow of cash along the supply chain in the modern corporate environment. Due to the growing significance of cash flow, the concept of the cash-flow bullwhip effect has recently drawn academic attention to finding solutions to the cash shortage. The supply chain’s response to the bullwhip effect, known as the cash-flow bullwhip effect, causes cash-flow volatility to be amplified from downstream to upstream. A number of research studies have looked into the sources and effects of the cash-flow bullwhip effect, but none have concentrated on solutions. This study investigated for the first time the impacts of the vendor-managed inventory policy as a tool for mitigating the cash-flow bullwhip effect. The findings show that the vendor-managed inventory policy typically shortens the cash-conversion cycle of each supply chain member and can, therefore, be implemented as a policy for mitigating the cash-flow bullwhip effect

An economic evaluation of potential offshore wind farm sites in South Korea using a real options approach

In the era of energy transition, climate and topography characteristics make wind energy a promising renewable energy source in South Korea. Following the successful operations of onshore wind power generation, the South Korean government has implemented the 3020 renewable energy implementation plan with a target of establishing 12GW offshore wind farms by 2030. Considering financial and time constraints, it is important to determine the most suitable locations to enable renewable energy farms to achieve the proposed targets for renewable energy production. Although several studies conducted in South Korea have assessed the economic feasibility of potential wind farm sites using the discounted cash-flow method, this method involves some limitations regarding incorporating the value of flexibility and uncertainty factors in the site evaluation process. Thus, this study utilized a real options approach – the Geske compound option model – in a system dynamics framework to evaluate potential sites for offshore wind farms on the mid-west coast of South Korea. Using the developed potential site evaluation model, this study obtained different results from the reference study, which conducted cost-benefit analyses of the same areas. The results of this study demonstrate the importance of flexibility value and uncertainty factors in the site evaluation process. This study also estimates the environmental mitigation of each potential site concerning carbon emission reduction for offshore wind farms

Game Theoretical Approach to Supply Chain Microfinance

Part 1: Sustainable ProductionInternational audienceThis paper considers a supply chain microfinance model in which a manufacturer acts as a lender and a raw material supplier as a borrower. Using a game theoretical analysis, the study investigates how investment levels, raw material prices, and profit margins are influenced by loan interest rates under two types of decentralized channel policies: manufacturer Stackelberg and vertical Nash game. In addition, the study shows how the profits of a manufacturer and a supplier are changed under each supply chain channel structure