EURO 2024 Copenhagen
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3695. Mismatch Risk, Alliance Stability and Production Efficiency in a Coproduct Supply Chain

Invited abstract in session WB-61: Retail Cooperation and Competition, stream Retail Operations.

Wednesday, 10:30-12:00
Room: S10 (building: 101)

Authors (first author is the speaker)

1. Yangyang Peng
Big Data Intelligent Application Technology Research Institute, Shenzhen Research Institute of Big Data, Shenzhen
2. XIN WANG
Big Data Intelligent Application Technology Research Institute, Research Institute of Big Data, Shenzhen
3. Zhengfeng Liu
School of Science and Engineering,The Chinese University of Hong Kong,Shenzhen, Big Data Intelligent Application Technology Research Institute, ShenzhenResearch Institute of Big Data, Shenzhen
4. Mingyuan Zhu
School of Science and Engineering, The Chinese University of Hong Kong, Shenzhen

Abstract

Products (e.g., cattle and pig) can be processed into several types of products (parts) targeting different segments of customers, which belong to the so called coproducts. Mismatch risk, alliance stability and production efficiency are three significant issues in such coproduct logistics and supply chain. First, we use the unbalanced ratio to reflect the degree of mismatch between supply and demand among different parts of the coproduct and study how the tradeoff between the bargaining power and the mismatch cost, by different mismatch risk allocations, influences the optimal decisions and the performances of the two parties as well as the whole logistics and supply chain. Then, we investigate how the coproduct alliances are formed considering tradeoff between processing cost and mismatch ratio among heterogeneous retailers. We establish a general collaborative game model and study the existence of the core of the grand coalition and extend the model to the multi-retailer settings, and the general distribution with the cost-least consideration. Finally, in view of the product line design of the coproduct supply chain, considering the uncertainty of the market size, the size and length of the product line of the coproduct supply chain are analyzed and we expand to multiple products and general distribution of customer types and market size. We endeavor to provide some new insights into coproduct logistics and supply chain management at the theoretical level.

Keywords

Status: accepted

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