Title: Supply chain value co-creation and flexibility management decisions taking supply risk into account
Authors: Min Yang
Addresses: College of Management, Guizhou University of Commerce, Guiyan, 55014, China
Abstract: Value co-creation provides an effective way to prevent and control risks in supply chain enterprises. By building a three-stage supply chain game decision model under risk conditions, rational derivation is made on the dynamic relationship between supply chain flexibility management costs, flexible benefits, unit product costs, and supply chain value creation to investigate conditions required to achieve supply chain value co-creation and optimal flexibility management. Some useful conclusions were finding that the functional relationship between flexibility management cost and supply chain value co-creation is represented as the envelope curve of optimal supply chain value creation and supply chain risks, flexible benefit, and unit product cost exert a significant impact on supply chain flexibility management effect. This article proposes that under certain supply chain risks, companies should maximise the marginal benefits of supply chain flexibility management inputs, so that supply chain flexibility management inputs show positive benefits rather than cost effects.
Keywords: supply chain risk; supply chain flexibility; value creation.
International Journal of Applied Decision Sciences, 2022 Vol.15 No.2, pp.221 - 243
Received: 20 Oct 2020
Accepted: 03 Dec 2020
Published online: 11 Mar 2022 *