The effects of a trust mechanism on a dynamic supply chain network

Yunzhang Hou, Yu Xiong, Xiaoling Wang, Xi Liang

Research output: Contribution to journalArticlepeer-review

26 Citations (Scopus)

Abstract

Recognizing trust as the basis for firm cooperation, we investigate how a trust mechanism affects a supply chain network using a dynamic multi-agent and multi-stage model that incorporates three supplier selection rules: a preferred price rule, a preferred trust rule, and a preferred random rule. We use this model to explore the impact of the three rules on supply chain performance and bankruptcy propagation under the conditions of external disruption, bank rate, and new firms entering the market. Our results identify the preferred trust rule as the supplier selection method that can in most cases best improve the total revenue of the whole supply chain network. In terms of firm bankruptcy, on the other hand, it is the preferred random rule that has the least impact and the preferred price rule that has the most.
Original languageEnglish
Pages (from-to)3060-3068
JournalExpert Systems with Applications
Volume41
Issue number6
Early online date1 Oct 2013
DOIs
Publication statusPublished - May 2014

Cite this