TY - JOUR T1 - Yield Uncertainty and Tardiness Penalties: A Comparison of Offshoring and Nearshoring TT - Verim Rassallığı ve Gecikme Yaptırım Maliyetleri: Ülke Dışında Üretim ve Komşu Ülkede Üretim Stratejilerinin Karşılaştırılması AU - Bayram, Orkun PY - 2025 DA - September Y2 - 2025 DO - 10.46928/iticusbe.1654814 JF - İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi PB - İstanbul Ticaret Üniversitesi WT - DergiPark SN - 1303-5495 SP - 693 EP - 736 VL - 24 IS - 53 LA - en AB - The extreme congestion caused by the pandemic at shipment routes demonstrated the potential damage fluctuations in customer order lead time could cause in global supply chains. Furthermore, if the order arrives with missing items, it will exacerbate the already disrupted flow of goods in the supply chain. Hence, yield uncertainty needs to be considered, especially when coupled with lead time fluctuations. Thus, supplier selection mechanisms could benefit from a comparison of supplier performances combining yield and lead time uncertainty under different combinations of other factors. To demonstrate the consequences of supplier selection based on these effects, we developed a stochastic optimization model for an order placed by a Tier 1 supplier with a Tier 2 supplier. We generated scenarios via 2k factor representation to calculate the effect of increasing production yield and mean lead time on supply chain costs. We have found that the magnitude of the effect of increasing the lead time on total supply chain costs was much higher than the magnitude of the effect of increasing the production yield. We further found that the magnitude of the effects of these two supplier characteristics was more pronounced if at least two of the other three factors -unit underage cost, order amount, and unit procurement or tardiness cost- were high. Our numerical analysis also demonstrated that it was very important to put effort into estimating lead time parameters and distribution correctly, as making incorrect assumptions could cause severe underestimation of supply chain costs. KW - Nearshoring KW - offshoring KW - uncertain yield KW - uncertain lead time KW - tardiness penalty N2 - Pandeminin ulaşım ve sevkiyat süreçlerinde yol açtığı yoğunluk, müşteri sipariş teslim sürelerindeki dalgalanmaların küresel tedarik zincirlerinde yol açabileceği potansiyel zararları ortaya koymuştur. Ayrıca, gecikmenin yanında teslim edilen ürün sayısının beklenenden az olması durumunda, tedarik zincirindeki hâlihazırda bozulmuş ürün akışı daha da kötüleşmektedir. Bu nedenle, özellikle sipariş teslim sürelerindeki dalgalanmalarla birlikte tecrübe edildiğinde, verim rassallığı, üzerinde durulması gereken bir husustur. Dolayısıyla, tedarikçi seçim mekanizmaları, farklı dış faktör kombinasyonları altında verim ve teslim süresi rassallığını beraber ele alarak tedarikçi performanslarını karşılaştırırsa, daha başarılı seçimler yapılacaktır. Bu etmenler doğrultusunda, tedarikçi seçiminin ortaya koyduğu performansı göstermek amacıyla, Seviye 1 tedarikçisinin Seviye 2 tedarikçisine verdiği bir sipariş için stokastik bir optimizasyon modeli oluşturulmuş; 2ᵏ faktör temsili ile senaryolar üretilerek, üretim veriminin ve ortalama teslim süresinin tedarik zinciri maliyetleri üzerindeki etkisi hesaplanmıştır. Bulgularımız, teslim süresinin artışının toplam tedarik zinciri maliyetleri üzerindeki etkisinin, üretim veriminin artışının etkisinden çok daha büyük olduğunu göstermektedir. Ayrıca, ele aldığımız diğer üç dış faktörden en az ikisi — teslimatta eksik olan her ürün başına müşteri tarafından katlanılan maliyet, sipariş verilen toplam ürün miktarı ve ürün başına katlanılan gecikme yaptırım maliyeti — yüksek olduğunda, bu iki tedarikçi performans kriterinin (teslim süresi ve üretim verimi) toplam maliyetler üzerindeki etkilerinin daha baskın hale geldiği tespit edilmiştir. Sayısal analizimiz ayrıca, teslim süresinin rassallığını betimleyen parametrelerin ve olasılık fonksiyonunun doğru tahmin edilmesine yönelik çaba göstermenin çok önemli olduğunu ortaya koymuştur. Çünkü hatalı varsayımlar, tedarik zinciri maliyetlerinin ciddi şekilde azımsanmasına yol açarak yanıltıcı sonuçlara sebep olabilmektedir. CR - Baker, K. R., & Trietsch, D. (2013). Principles of sequencing and scheduling. John Wiley & Sons. CR - Barad, M., & Braha, D. (1996). Control limits for multi-stage manufacturing processes with binomial yield (Single and multiple production runs). The Journal of the Operational Research Society, 47(1), 98-112. https://doi.org/10.1057/jors.1996.9 CR - Barbieri, P., Elia, S., Fratocchi, L., & Golini, R. (2019). Relocation of second degree: Moving towards a new place or returning home? Journal of Purchasing and Supply Management, 25(3), Article 100525. https://doi.org/10.1016/j.pursup.2018.12.003 CR - Barkho, G. (2021, December 16). Chain reactions: Exploding Kittens’ Carly McGinnis on diversifying manufacturing. Modern Retail. https://www.modernretail.co/retailers/chain-reactions-exploding-kittens-carly-mcginnis-on-diversifying-manufacturing/. Accessed July 23, 2025. CR - Boute, R. N., Disney, S. M., Gijsbrechts, J., & Van Mieghem, J. A. (2022). Dual sourcing and smoothing under nonstationary demand time series: Reshoring with SpeedFactories. Management Science, 68(2), 1039–1057. https://doi.org/10.1287/mnsc.2020.3951 CR - Cakanyildirim, M., Bookbinder, J. H., & Gerchak, Y. (2000). Continuous review inventory models where random lead time depends on lot size and reserved capacity. International Journal of Production Economics, 68(3), 217-228. https://doi.org/10.1016/S0925-5273(99)00112-7 CR - Chambers, S. (2022, January 12). Maersk provides a snapshot of growing port congestion around the world. Splash247. https://splash247.com/maersk-provides-a-snapshot-of-growing-port-congestion-around-the-world/. Accessed July 23, 2025. CR - Chen, H., Hsu, C. W., Shih, Y. Y., & Caskey, D. A. (2022). The reshoring decision under uncertainty in the post-COVID-19 era. Journal of Business & Industrial Marketing, 37(10), 2064–2074. https://doi.org/10.1108/JBIM-01-2021-0066 CR - Chen, L., & Hu, B. (2017). Is reshoring better than offshoring? The effect of offshore supply dependence. Manufacturing & Service Operations Management, 19(2), 166–184. https://doi.org/10.1287/msom.2016.0604 CR - Choi, S., Jeon, S., Kim, J., & Park, K. (2019). A newsvendor analysis of a binomial yield production process. European Journal of Operational Research, 273(3), 983-991. https://scholar.korea.ac.kr/handle/2021.sw.korea/26229 CR - Clemens, J., & Inderfurth, K. (2015). Supply chain coordination by contracts under binomial production yield. Business Research, 8(2), 301-332. https://doi.org/10.1007/s40685-015-0023-2 CR - Cohen, M. A., & Lee, H. L. (1988). Strategic analysis of integrated production-distribution systems: Models and methods. Operations Research, 36(2), 216-228. https://doi.org/10.1287/opre.36.2.216 CR - da Rocha, A., da Fonseca, L. N. M., & Kogut, C. S. (2025). Deciphering relocation paths: A systematic literature review of near-shoring and friend-shoring. Journal of International Management, 31(5), Article 101282. https://doi.org/10.1016/j.intman.2025.101282 CR - Dettenbach, M. (2015). The value of supply chain visibility when yield is random [Doctoral dissertation, University of Cologne]. Logos Verlag Berlin GmbH. https://kups.ub.uni-koeln.de/6100/1/Dissertation_Marcus_Dettenbach_-_Druckexemplar.pdf. Accessed July 23, 2025. CR - Dunning, J. H. (1988). Explaining international production (Routledge Revivals). Routledge. CR - Dunning, J. H. (1998). Location and the multinational enterprise: A neglected factor? Journal of International Business Studies, 29(1), 45–66. CR - Ellram, L. M., Tate, W. L., & Petersen, K. J. (2013). Offshoring and reshoring: An update on the manufacturing location decision. Journal of Supply Chain Management, 49(2), 14–22. https://doi.org/10.1111/jscm.12019 CR - Eppen, G. D., & Martin, R. K. (1988). Determining safety stock in the presence of stochastic lead time and demand. Management Science, 34(11), 1380-1390. https://doi.org/10.1287/mnsc.34.11.1380 CR - Foster, P. (2024, December 3). UK chemicals sector doubts Keir Starmer’s ‘reset’ will end Brexit blues. Financial Times. https://www.ft.com/content/401fca38-d156-4128-b46e-7682a30a3d66#comments-anchor. Accessed July 23, 2025. CR - Fratocchi, L., Di Mauro, C., Barbieri, P., Nassimbeni, G., & Zanoni, A. (2014). When manufacturing moves back: Concepts and questions. Journal of Purchasing and Supply Management, 20(1), 54–59. https://doi.org/10.1016/j.pursup.2014.01.004 CR - Grandinetti, R., & Tabacco, R. (2015). A return to spatial proximity: Combining global suppliers with local subcontractors. International Journal of Globalisation and Small Business, 7(2), 139–161. https://doi.org/10.1504/IJGSB.2015.071189 CR - Grosfeld-Nir, A., & Gerchak, Y. (2004). Multiple lotsizing in production to order with random yields: Review of recent advances. Annals of Operations Research, 126(1), 43-69. https://doi.org/10.1023/B:ANOR.0000012275.01260.f5 CR - Hekimoğlu, M., van der Laan, E., & Dekker, R. (2018). Markov-modulated analysis of a spare parts system with random lead times and disruption risks. European Journal of Operational Research, 269(3), 909-922. https://doi.org/10.1016/j.ejor.2018.02.040 CR - Hilletofth, P., Sequeira, M., & Adlemo, A. (2019). Three novel fuzzy logic concepts applied to reshoring decision-making. Expert Systems with Applications, 126, 133–143. https://doi.org/10.1016/j.eswa.2019.02.018 CR - Hilletofth, P., Sequeira, M., & Tate, W. (2021). Fuzzy-logic-based support tools for initial screening of manufacturing reshoring decisions. Industrial Management & Data Systems, 121(5), 965–992. https://doi.org/10.1108/IMDS-05-2020-0290 CR - Ivănescu, V. C., Fransoo, J. C., & Bertrand, J. W. M. (2006). A hybrid policy for order acceptance in batch process industries. OR Spectrum, 28(2), 199-222. https://doi.org/10.1007/s00291-005-0015-2 CR - Jakšič, M., & Fransoo, J. C. (2018). Dual sourcing in the age of near-shoring: Trading off stochastic capacity limitations and long lead times. European Journal of Operational Research, 267(1), 150-161. https://doi.org/10.1016/j.ejor.2017.11.030 CR - Kaivo-Oja, J., Knudsen, M. S., & Lauraéus, T. (2018). Reimagining Finland as a manufacturing base: The nearshoring potential of Finland in an Industry 4.0 perspective. Business, Management and Economics Engineering, 16, 65–80. DOI: 10.3846/bme.2018.2480 CR - Kang, Y., Albey, E., & Uzsoy, R. (2018). Rounding heuristics for multiple product dynamic lot-sizing in the presence of queueing behavior. Computers & Operations Research, 100, 54-65. https://doi.org/10.1016/j.cor.2018.07.019 CR - Law, A. M. (2017, December). A tutorial on design of experiments for simulation modeling. In W. K. V. Chan, A. D’Ambrogio, G. Zacharewicz, N. Mustafee, G. Wainer, & E. Page (Eds.), 2017 Winter Simulation Conference (WSC) (pp. 550-564). IEEE. DOI: 10.1109/WSC.2017.8247814 CR - Levi, R., Singhvi, S., & Zheng, Y. (2020). Economically motivated adulteration in farming supply chains. Management Science, 66(1), 209-226. https://doi.org/10.1287/mnsc.2018.3215 CR - Lowe, J. J., Khademi, A., & Mason, S. J. (2016). Robust semiconductor production planning under yield uncertainty. In T. M. K. Roeder, P. I. Frazier, R. Szechtman, E. Zhou, T. Huschka, & S. E. Chick (Eds.), Proceedings of the Winter Simulation Conference (WSC) (pp. 2697–2708). IEEE Publishing. https://doi.org/10.1109/WSC.2016.7822307 CR - Moore, M. E., Rothenberg, L., & Moser, H. (2018). Contingency factors and reshoring drivers in the textile and apparel industry. Journal of Manufacturing Technology Management, 29(6), 1025–1041. https://doi.org/10.1108/JMTM-07-2017-0150 CR - Murray, B. (2021, December 16). Clearing U.S. port congestion turns into a game of Whac-a-Mole. Bloomberg. https://www.bloomberg.com/news/newsletters/2021-12-16/supply-chain-latest-clearing-u-s-port-congestion-turns-into-whac-a-mole Accessed July 23, 2025. CR - Ould-Louly, M. A., & Dolgui, A. (2004). The MPS parameterization under lead time uncertainty. International Journal of Production Economics, 90(3), 369-376. https://doi.org/10.1016/j.ijpe.2003.08.008 CR - Pedroletti, D., & Ciabuschi, F. (2023). Reshoring: A review and research agenda. Journal of Business Research, 164, Article 114005. https://doi.org/10.1016/j.jbusres.2023.114005 CR - Piatanesi, B., & Arauzo‐Carod, J. M. (2019). Backshoring and nearshoring: An overview. Growth and Change, 50(3), 806-823. https://doi.org/10.1111/grow.12316 CR - Rabta, B., & Reiner, G. (2012). Batch sizes optimization by means of queueing network decomposition and genetic algorithm. International Journal of Production Research, 50(10), 2720-2731. https://doi.org/10.1080/00207543.2011.588618 CR - Schemeleva, K., Delorme, X., Dolgui, A., & Grimaud, F. (2012). Multi-product sequencing and lot-sizing under uncertainties: A memetic algorithm. Engineering Applications of Artificial Intelligence, 25(8), 1598-1610. https://doi.org/10.1016/j.engappai.2012.06.012 CR - Schemeleva, K., Delorme, X., Dolgui, A., & Grimaud, F. (2013, October). Experimental study of a decomposition approach for sequencing and lot-sizing under uncertainties. Proceedings of the 2013 International Conference on Industrial Engineering and Systems Management (IESM), Agdal, Morocco, (pp. 1-7). IEEE. CR - Schemeleva, K., Delorme, X., & Dolgui, A. (2018). Evaluation of solution approaches for a stochastic lot-sizing and sequencing problem. International Journal of Production Economics, 199, 179-192. https://doi.org/10.1016/j.ijpe.2018.02.017 CR - Searates.com. (n.d.). https://www.searates.com Accessed January 10, 2022. CR - Sequeira, M., Hilletofth, P., & Adlemo, A. (2021). AHP-based support tools for initial screening of manufacturing reshoring decisions. Journal of Global Operations and Strategic Sourcing, 14(3), 502–527. https://doi.org/10.1108/JGOSS-07-2020-0037 CR - Sharda, B., & Akiya, N. (2012). Selecting make-to-stock and postponement policies for different products in a chemical plant: A case study using discrete event simulation. International Journal of Production Economics, 136(1), 161-171. https://doi.org/10.1016/j.ijpe.2011.10.001 CR - Slepniov, D., Brazinskas, S., & Wæhrens, B. V. (2013). Nearshoring practices: An exploratory study of Scandinavian manufacturers and Lithuanian vendor firms. Baltic Journal of Management, 8(1), 5–26. https://doi.org/10.1108/17465261311291632 CR - Stentoft, J., Mikkelsen, O. S., & Jensen, J. K. (2016). Offshoring and backshoring manufacturing from a supply chain innovation perspective. Supply Chain Forum: An International Journal, 17(4), 190–204. https://doi.org/10.1080/16258312.2016.1239465 CR - Talay, I., & Özdemir-Akyıldırım, Ö. (2019). Optimal procurement and production planning for multi-product multi-stage production under yield uncertainty. European Journal of Operational Research, 275(2), 536-551. https://doi.org/10.1016/j.ejor.2018.11.069 CR - Tsai, T. Y., & Urmetzer, F. (2024). A decisional framework for manufacturing relocation: Consolidating and expanding the reshoring debate. International Journal of Management Reviews, 26(2), 254–284. https://doi.org/10.1111/ijmr.12352 CR - van Donk, D. P. (2001). Make to stock or make to order: The decoupling point in the food processing industries. International Journal of Production Economics, 69(3), 297-306. https://doi.org/10.1016/S0925-5273(00)00035-9 CR - van Hassel, E., Vanelslander, T., Neyens, K., Vandeborre, H., Kindt, D., & Kellens, S. (2021). Reconsidering nearshoring to avoid global crisis impacts: Application and calculation of the total cost of ownership for specific scenarios. Research in Transportation Economics, 90, Article 101089. https://doi.org/10.1016/j.retrec.2021.101089 CR - Wang, Y., & Gerchak, Y. (2000). Input control in a batch production system with lead times, due dates, and random yields. European Journal of Operational Research, 126(2), 371-385. https://doi.org/10.1016/S0377-2217(99)00295-7 CR - Williamson, O. E. (1979). Transaction-cost economics: The governance of contractual relations. The Journal of Law and Economics, 22(2), 233–261. https://doi.org/10.1086/466942 CR - Yang, H., Ou, J., & Chen, X. (2021). Impact of tariffs and production cost on a multinational firm's incentive for backshoring under competition. Omega, 105, 102500. https://doi.org/10.1016/j.omega.2021.102500 CR - Yano, C. A., & Lee, H. L. (1995). Lot sizing with random yields: A review. Operations Research, 43(2), 311-334. https://doi.org/10.1287/opre.43.2.311 CR - Yüceer, Ü. (2002). Discrete convexity: Convexity for functions defined on discrete spaces. Discrete Applied Mathematics, 119(3), 297-304. https://doi.org/10.1016/S0166-218X(01)00191-3 UR - https://doi.org/10.46928/iticusbe.1654814 L1 - https://dergipark.org.tr/tr/download/article-file/4677102 ER -