Labor and Supply Chain Networks

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The COVID-19 pandemic has vividly and dramatically demonstrated the importance of supply chains to the functioning of societies and our economies. The discussion in this timely book explores prominent issues concerning supply chain networks and labor. The readership is aimed to include students, researchers, practitioners, and policy-makers, interested in the wide range of topics presented in these pages. Labor has a particular focus as the driver behind supply chains, whether associated with food products, life-saving medicines and supplies, or high tech products that make innovation possible, just to name a few.  The impacts of policy interventions, in the form of wage bounds, and their ramifications, in terms of volume of attracted labor, product prices, product volumes, as well as profits, are explored. Profit-maximizing firms are considered (with relevant associated issues such as waste management in the case of the food sector, for example), but also non-profits, as in blood services, as well as humanitarian organizations engaged in disaster relief. The book is filled with many network figures, graphs, and tables with data, both input and output and includes an appendix that provides the foundations of the underlying mathematical methodologies used.

The book offers strong evidence for the need to provide a holistic, system-wide perspective for the modeling, analysis, and solution of supply chain problems with the inclusion of the critical labor resources. A formalism using the prism of supply chain networks, which yields a graphic representation of supply chains, consisting of multiple stakeholders, is constructed. Models that capture the behaviors and interactions of single decision-makers as well as multiple decision-makers engaged in supply chain activities of production, transportation, storage, and distribution, are considered. The models capture many realistic constraints faced by firms today, as they seek to produce and deliver products, while dealing with competition, various constraints on labor, a variety of disruptions, labor shortages, challenges associated with proper wage-determination, plus the computation of optimal investments in labor productivity subject to budget constraints. The book provides prescriptive suggestions in terms of how to ameliorate negative impacts of labor disruptions and demonstrate benefits of appropriate wage determination.



Author(s): Anna Nagurney
Series: Springer Optimization and Its Applications, 198
Publisher: Springer
Year: 2023

Language: English
Pages: 331
City: Cham

Preface
Acknowledgments
Contents
List of Figures
List of Tables
Part I Labor and Supply Chains
1 Introduction
1.1 Background and Motivation
1.2 Organization of This Book
2 Perishable Food Supply Chain Networks with Labor
2.1 Introduction
2.2 The Perishable Food Supply Chain Network Model with Labor
2.2.1 Variational Inequality Formulation
2.2.2 Illustrative Examples 2.1 and 2.2
2.3 The Computational Procedure
2.3.1 Food Supply Chain Network Numerical Examples
2.4 Summary, Conclusions, and Suggestions for Future Research
2.5 Sources and Notes
References
3 Optimization of Supply Chains Under Different Labor Constraints
3.1 Introduction
3.2 The Supply Chain Network Models with Labor
3.2.1 Variational Inequality Formulations of the Elastic Demand Case
3.2.2 Illustrative Examples
3.2.3 Variational Inequality Formulations of the Fixed Demand Case
3.3 The Computational Procedure
3.3.1 Scenario 1 Healthcare Product Supply Chain Elastic Demand Examples
3.3.2 Scenario 3 Healthcare Product Supply Chain Elastic Demand Examples: Reduction of Labor Availability
3.4 Supply Chain Network Efficiency and Resilience to Labor Disruptions
3.4.1 Efficiency of a Supply Chain Network and Importance Identification of a Network Component
3.4.2 Resilience with Respect to Labor Disruptions
3.4.3 Supply Chain Network Data
3.5 Summary, Conclusions, and Suggestions for Future Research
3.6 Sources and Notes
References
4 Game Theory Modeling of Supply Chains and Labor Disruptions
4.1 Introduction
4.2 Supply Chain Network Game Theory Modeling Under Labor Constraints
4.2.1 Governing Equilibrium Conditions and Variational Inequality Formulations
4.2.1.1 Scenario 1 Nash Equilibrium Conditions and Variational Inequality Formulations
4.2.1.2 Scenario 2 Generalized Nash Equilibrium Conditions and Variational Inequality Formulations
4.2.1.3 Scenario 3 Generalized Nash Equilibrium Conditions and Variational Inequality Formulations
4.3 The Algorithm and Seasonal Fresh Produce Supply Chain Network Examples
4.3.1 Scenario 1 Examples
4.3.2 Scenario 3 Examples
4.4 Supply Chain Network Economy Efficiency and Importance Identification of Components
4.5 Summary, Conclusions, and Suggestions for Future Research
4.6 Sources and Notes
References
Part II Endogenous Wages and Productivity Investments
5 Wages and Labor Productivity in Supply Chains with Fixed Labor Availability on Links
5.1 Introduction
5.2 The Supply Chain Network Game Theory Models with Wage-Responsive Productivity
5.2.1 The Model Without Wage Bounds
5.2.1.1 Variational Inequality Formulations
5.2.2 The Model with Wage Bounds plus Lagrange Analysis
5.3 The Algorithm and Numerical Examples
5.3.1 High Value Supply Chain Numerical Examples
5.4 Summary, Conclusions, and Suggestions for Future Research
5.5 Sources and Notes
References
6 Wage-Dependent Labor and Supply Chain Networks
6.1 Introduction
6.2 The Supply Chain Network Game Theory Models with Wage-Dependent Labor
6.2.1 Equilibrium Conditions and Variational Inequality Formulations
6.3 The Algorithm and Numerical Examples
6.3.1 Numerical Results for a Single Firm
6.3.2 Numerical Results for Multifirm Examples
6.4 Summary, Conclusions, and Suggestions for Future Research
6.5 Sources and Notes
References
7 Investments in Labor Productivity: Single Period Model
7.1 Introduction
7.2 The Labor Productivity Investment Supply Chain Network Model
7.3 Lagrange Analysis and Alternative Variational Inequality Formulations
7.3.1 Alternative Variational Inequality Formulations
7.3.2 Additional Lagrange Analysis with Interpretations
7.4 Computational Procedure and Numerical Examples
7.4.1 Computational Procedure
7.4.2 Numerical Examples
7.4.2.1 Examples 7.1, 7.2, and 7.3
7.4.2.2 Examples 7.4, 7.5, and 7.6
7.4.2.3 Examples 7.7, 7.8, and 7.9: Introduction of Electronic Commerce
7.5 Summary, Conclusions, and Suggestions for Future Research
7.6 Sources and Notes
References
8 Multiperiod Supply Chain Network Investments in Labor Productivity
8.1 Introduction
8.2 Multiperiod Supply Chain Network Optimization Model with Investments
8.3 The Algorithm and Numerical Examples
8.3.1 Examples 8.1, 8.2, and 8.3
8.3.1.1 Sensitivity Analysis
8.4 Summary, Conclusions, and Suggestions for Future Research
8.5 Sources and Notes
References
Part III Advanced Supply Chain Network from Profit to Non-Profit Organizations
9 Multitiered Supply Chain Networks with Labor
9.1 Introduction
9.2 The Multitiered Supply Chain Network Equilibrium Models with Labor
9.2.1 The Multitiered Supply Chain Network Equilibrium Model with Labor and No Bounds on Labor Availability
9.2.1.1 The Behavior of the Manufacturers and Their Optimality Conditions
9.2.1.2 The Behavior of the Retailers and Their Optimality Conditions
9.2.1.3 The Consumers at the Demand Markets and the Equilibrium Conditions
9.2.1.4 The Equilibrium Conditions for the Supply Chain Network with Labor
9.2.2 The Multitiered Supply Chain Network Equilibrium Model with Labor and Link Bounds on Labor Availability
9.3 The Algorithmic Procedure
9.4 Multitiered Supply Chain Numerical Examples
9.5 Summary, Conclusions, and Suggestions for Future Research
9.6 Sources and Notes
References
10 International Migrant Labor and Supply Chains
10.1 Introduction
10.2 The Supply Chain Network Model with Investments in Attracting Migrant Labor
10.3 The Algorithm
10.4 High Value Food Product Numerical Examples
10.5 Summary, Conclusions, and Suggestions for Future Research
10.6 Sources and Notes
References
11 Labor and Blood Services
11.1 Introduction
11.2 The Supply Chain Network Model of the Blood Service Organization with Labor
11.3 The Algorithm
11.4 Summary, Conclusions, and Suggestions for Future Research
11.5 Sources and Notes
References
12 Disaster Management and Labor
12.1 Introduction
12.2 The Multiproduct Supply Chain Network Model with Labor for Disaster Management
12.3 The Algorithm and Humanitarian Organization Supply Chain Numerical Examples
12.4 Summary, Conclusions, and Suggestions for Future Research
12.5 Sources and Notes
References
Glossary of Notation
Glossary of Notation
A Optimization Theory, Variational Inequalities, and Game Theory
A.1 Basic Definitions
A.2 Karush–Kuhn–Tucker Optimality Conditions
A.3 Variational Inequalities
A.3.1 Qualitative Properties
A.4 The Relationships Between Variational Inequalities and Game Theory
A.4.1 An Algorithm
References