LAPSE:2020.0443
Published Article
LAPSE:2020.0443
A Numerical Study on the Effects of Trust in Supplier Development
May 18, 2020
Supplier development constitutes one of the current tools to enhance supply chain performance. While most literature in this context focuses on the relationship between manufacturers and suppliers, supplier development also provides an opportunity for distinct manufacturers to collaborate in enhancing a joint supplier. This article proposes a model for the optimization of such joint supplier development programs, which incorporates the effects of trust in the manufacturer-to-manufacturer relationship. This article uses a model-predictive formulation to obtain optimal supplier development investment decisions to consider the strong dynamics of the markets. Thereby, the model is designed to be highly customizable to the needs and requirements of different companies. We analyzed the price development related to Mercedes’ A-Class cars and the cost development in the automotive sector over the last ten years in Germany. According to the obtained result, the proposed model shows a sensible behavior in including trust and its effects in supplier development, even when just applying a set of generalized rules. Moreover, the numeric experiments showed that aiming for a balanced mix of optimizing revenue and trust results in the highest revenue obtained by each partner.
Keywords
decision making support, Model Predictive Control, Optimization, supplier development, trust
Suggested Citation
Dastyar H, Rippel D, Pannek J, Thoben KD, Freitag M. A Numerical Study on the Effects of Trust in Supplier Development. (2020). LAPSE:2020.0443
Author Affiliations
Dastyar H: International Graduate School for Dynamics in Logistics, University of Bremen, 28359 Bremen, Germany [ORCID]
Rippel D: BIBA—Bremer Institut für Produktion und Logistik GmbH at the University of Bremen, Hochschulring 20, 28359 Bremen, Germany [ORCID]
Pannek J: IAV GmbH, Development Center, Rockwell Str. 16, 38518 Gifhorn, Germany [ORCID]
Thoben KD: BIBA—Bremer Institut für Produktion und Logistik GmbH at the University of Bremen, Hochschulring 20, 28359 Bremen, Germany; Faculty of Production Engineering, University of Bremen, Badgasteiner Str. 1, 28359 Bremen, Germany [ORCID]
Freitag M: BIBA—Bremer Institut für Produktion und Logistik GmbH at the University of Bremen, Hochschulring 20, 28359 Bremen, Germany; Faculty of Production Engineering, University of Bremen, Badgasteiner Str. 1, 28359 Bremen, Germany [ORCID]
Journal Name
Processes
Volume
8
Issue
3
Article Number
E300
Year
2020
Publication Date
2020-03-05
Published Version
ISSN
2227-9717
Version Comments
Original Submission
Other Meta
PII: pr8030300, Publication Type: Journal Article
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LAPSE:2020.0443
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doi:10.3390/pr8030300
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May 18, 2020
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CC BY 4.0
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[v1] (Original Submission)
May 18, 2020
 
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May 18, 2020
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Original Submitter
Calvin Tsay
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