Method and Approach Mapping of Fair and Balanced Risk and Value-added Distribution in Supply Chains: A Review and Future Agenda

Abstract

This paper proposes a fair and balanced risk and value-added distribution as a novel approach for collaborative supply chain. The objective of this article is to analyze the existing methods and approaches for risk management, value-adding, risk and revenue sharing to develop a new framework for balancing risk and value-adding in collaborative supply chains. The authors reviewed and synthesized 162 scientific articles which were published between 2001 and 2017 and. The reviewed articles were categorized into supply chain management and performance, risk management, value-added, fair risk and value-added distribution and supply chain negotiation. The potentials identified for future research were the importance of decision-making and sustainability for effectiveness of supply chain risk management. Most previous authors have applied an approach of revenue –and risk-- sharing with both decentralized and centralized supply chains to achieve the fair risk and value-added distribution. The dominant methods we found in literature were game theory and complex mathematical formulation. Most literature focused on operation research techniques. We identified a lack of discussion of the intelligent system approach and a potential for future exploration. This paper guide future research and application agenda of fair risk and value-added distribution in supply chain collaboration. We developed a new framework for a fair and balanced risk and value-added distribution model. For a future agenda, we point towards the development of a systematic intelligent system applying soft-computing techniques and knowledge transfer for maintaining sustainable supply chains.

Keywords — Supply chain collaboration, Fair risk and value-added distribution, Revenue sharing, Risk management, Risk sharing