Title: Implementing Environmental and Social Responsibility Programs in Supply Networks through Multi-Unit Bilateral Negotiation
Time: 2019年3月13日 15:00-16:30
主讲人: Qi Annabelle Feng, Professor, John and Donna Krenicki Chair in Operations Management, Purdue University
Abstract: Involving suppliers deep in the supply chain is critical for the success of environmental and social responsibility (ESR) initiatives. Administering ESR programs throughout a complex supply network, however, is challenging. In this paper, we apply a bilateral bargaining framework to analyze to what extent an ESR initiator should directly engage higher-tier suppliers, as opposed to delegating the assurance of ESR compliance to its first-tier suppliers. Our bargaining framework not only generalizes the conventional Shapley value approach by allowing the flexibility of modeling imbalanced power distribution among the firms, but also provides an explicit way of implementing the resulting gain sharing among the firms through negotiated contract terms. We show that the eventual structure of negotiation relationships can be derived by finding a shortest path tree in the supply network with the arc cost defined as a monotone function of the negotiating parties' relative bargaining power. These developments allow us to analyze ESR implementation in generally extended supply networks. We find that the ESR initiator tends to delegate ESR compliance negotiation to a supplier that is strong in negotiations with higher-tier suppliers. When the supply network is complex (i.e., wide and deep), directly engaging all suppliers for ESR compliance can lead to a larger gain by the initiator than fully delegating the negotiations with higher-tier suppliers to the first-tier ones. However, as the network gets increasingly complex, the ESR initiator tends to directly engage with a reduced percentage of higher-tier suppliers.
Presenter Biography: Qi Annabelle Feng is the John and Donna Krenicki Chair in Operations Management at Krannert School of Management, Purdue University. She was previously a faculty member at McCombs School of Business, The University of Texas at Austin. She received her Ph.D. in Operations Management from UT Dallas in 2006. Her main research interest lies in studying firms’ sourcing decisions in the broad context of supply chain management. Her work focuses on individual firm’s procurement planning in uncertain environment and multiple firms’ interactions in sourcing relationships. She also works in the areas of product development and proliferation management, resource planning, economic growth models, and information system management. She is currently a Department Editor of Data Science, Stochastics and Optimization for Production and Operations Management. She received the first prize in the INFORMS Junior Faculty Paper Competition in 2009, Franz Edelman Award in 2009, the Wickham Skinner Early-Career Research Accomplishment Award in 2012, and the Wickham Skinner Best Paper Award in 2018.