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Supply chain product quality control strategy in three types of distribution channels.

ABSTRACT: Based on a three-stage stackelberg dynamic game analysis, this paper constructs a product quality control strategy model for three types of distribution channels (direct channel, retail channel and mixed channel) in a three-echelon supply chain, which is composed of one manufacturer, one retailer and the final customer. This paper studies how to design a distribution channel strategy and provides a product quality control strategy. Furthermore, this paper analyzes three types of distribution channels strategy in the context of how they influence a manufacturer's product quality decision and quality prevention strategy, a retailer's product pricing decision and quality inspection strategy, and the final customer's product demand decision. We compare the manufacturer's product quality level, quality prevention effort level, wholesale price, direct sale price and the retailer's quality inspection effort level, retail price in three types of distribution channels and determine the manufacturer's and retailer's expected profits function and the final customer's consumer surplus. In addition, we introduce the distribution channels demand elasticity ratio to analyze the influence of determining the product quality control strategy. Most importantly, we conduct a numerical sample analysis that will prove the model's effectiveness and indicate a specific application in practice.

SUBMITTER: Zhu L

PROVIDER: S-EPMC7176101 | biostudies-literature | 2020

REPOSITORIES: biostudies-literature

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Supply chain product quality control strategy in three types of distribution channels.

Zhu Lilong L

PloS one 20200422 4

Based on a three-stage stackelberg dynamic game analysis, this paper constructs a product quality control strategy model for three types of distribution channels (direct channel, retail channel and mixed channel) in a three-echelon supply chain, which is composed of one manufacturer, one retailer and the final customer. This paper studies how to design a distribution channel strategy and provides a product quality control strategy. Furthermore, this paper analyzes three types of distribution cha ...[more]

PMID: 32320413

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Project description:BackgroundThe COVID-19 pandemic has disrupted global health supply chains including manufacturing, storage, and delivery of essential medicines, testing kits, personal protective equipment, and laboratory reagents. We sought to document how pandemic impacted the procurement, prices, and supply chain of medical products in Zimbabwe.MethodsWe conducted semistructured in-depth key informant interviews with 36 health system stakeholders in Zimbabwe involved in medicine procurement. Respondents included pharmacists, regulatory officers, and procurement and supply chain management professionals from public and private sectors.ResultsBefore the COVID-19 pandemic, respondents described experiencing long-standing resource constraints, medicine shortages, foreign currency shortages, and supply chain inefficiencies. The pandemic exacerbated this situation due to supply constraints, export restrictions, medicine shortages, and movement restrictions that disrupted logistical and stock management systems. Competitive bidding and tendering processes experienced reduced participation by international suppliers. Significant price increases were initially observed among internationally shipped medicines and for personal protective equipment to cover additional freight costs. COVID-19 pandemic impacts were moderated by reduced patient demand and lower health services utilization, resulting in fewer supply shocks and less price volatility. Further, health system adaptations such as switching treatment regimens, modifying dispensing schedules based on stock availability, redistributing stock of medicines among facilities, and new service delivery models such as integrated outreach services helped ensure continued patient access to medicines.ConclusionsOur findings highlight the need for policies that ensure continuity in access to health services and medical products, even during a pandemic, by avoiding blanket restrictions on medical product exports and imports. Pooled procurement, especially at regional and global levels, with long-term service agreements may help achieve greater resiliency to supply and price shocks from supply chain disruptions. Interventions across manufacturing, trade, and regulatory policy and service delivery models are also needed for supply chain resiliency.

Project description:In this paper, we study the topological properties of the global supply chain network in terms of its degree distribution, clustering coefficient, degree-degree correlation, bow-tie structure, and community structure to test the efficient supply chain propositions proposed by E. J.S. Hearnshaw et al. The global supply chain data in the year 2017 are constructed by collecting various company data from the web site of Standard & Poor's Capital IQ platform. The in- and out-degree distributions are characterized by a power law of the form of γin = 2.42 and γout = 2.11. The clustering coefficient decays [Formula: see text] with an exponent βk = 0.46. The nodal degree-degree correlations 〈knn(k)〉 indicates the absence of assortativity. The bow-tie structure of giant weakly connected component (GWCC) reveals that the OUT component is the largest and consists 41.1% of all firms. The giant strong connected component (GSCC) is comprised of 16.4% of all firms. We observe that upstream or downstream firms are located a few steps away from the GSCC. Furthermore, we uncover the community structures of the network and characterize them according to their location and industry classification. We observe that the largest community consists of the consumer discretionary sector based mainly in the United States (US). These firms belong to the OUT component in the bow-tie structure of the global supply chain network. Finally, we confirm the validity of Hearnshaw et al.'s efficient supply chain propositions, namely Proposition S1 (short path length), Proposition S2 (power-law degree distribution), Proposition S3 (high clustering coefficient), Proposition S4 ("fit-gets-richer" growth mechanism), Proposition S5 (truncation of power-law degree distribution), and Proposition S7 (community structure with overlapping boundaries) regarding the global supply chain network. While the original propositions S1 just mentioned a short path length, we found the short path from the GSCC to IN and OUT by analyzing the bow-tie structure. Therefore, the short path length in the bow-tie structure is a conceptual addition to the original propositions of Hearnshaw.

Project description:Changes in consumer behavior are forcing companies to rapidly shift their distribution channels toward an omnichannel model. In the case of the ophthalmology sector, however, the purchase of contact lenses and prescription glasses requires professional examination by a trained eye specialist. This peculiarity of the sector affects the shift toward omnichannel. This paper is novel in that it addresses a research gap by studying the distribution channels for regulated products and services such as health products that required a closer professional service. This paper addresses the transformation of companies toward an omnichannel model using a common scientific forecasting method (i.e., the Delphi method) to identify trends and problems. In this scenario of high complexity and uncertainty where there is insufficient relevant quantitative information for decision making, the Delphi method is applied to ensure a consensual decision-making process. Consensus was reached by a panel of 11 experts on the Spanish ophthalmology sector after three rounds of questioning. The final set of indicators involve 19 different criteria grouped into four categories (1) current situation of the distribution channel, (2) changes in distribution channels, (3) trends and near future of the distribution channel, and (4) consequences and adaptations for supply chain agents. The results from each round of consultation were then analyzed by means of statistical analysis with SPSS and discussed for each category. The results confirm that traditional intermediaries face difficulties to avoid being squeezed out of the sector because of shortening distribution channels and the entry of new online intermediaries with service integration models. We identify future scenarios and define actions that different agents can take to enhance their competitiveness in the short and long term. The arrival of omnichannel distribution is inevitable in the ophthalmology sector, entailing a major transformation from a rigid traditional distribution model to a more complex and flexible model following the entry of new online intermediaries.

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Supply chain product quality control strategy in three types of distribution channels.

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Supply chain product quality control strategy in three types of distribution channels.

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