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Secure Supply-Chain Collaboration (SSCC)

Information-sharing revolutionizes supply chain management, but fear of leakage hinders collaboration. SSCC protocols enable partners to make decisions without disclosing private data, leading to increased profit and improved services. Research issues include defining information rules, balancing security, and architecture choices like bidding scenarios. Ongoing work focuses on enhancing protocol performance, resistance to collusion, and multi-supplier scenarios.

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Secure Supply-Chain Collaboration (SSCC)

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  1. Secure Supply-Chain Collaboration (SSCC) Mike J. Atallah, Hicham G. Elmongui, Vinayak Deshpande, Leroy B. Schwarz

  2. SSCC and Supply-Chain Management • Information-Sharing is Revolutionizing Supply-Chain Management • But Buyers and Sellers are Afraid to Share Information • Fear of Leakage to a Competitor • Fear that “Partner” will take Advantage • Under SSCC Protocols Partners can make Collaborative Decisions without Divulging any Private Information

  3. The Benefits of SSCC • Increased Supply-Chain Profit • Reduction in: • Unnecessary Capacity • Unwanted Inventory • Quoted Leadtimes • Better Customer Service • Potential to Revolutionize Supply-Chain Practice

  4. Research Issues • Required Information and Decision-Rules • Protocol design • Trade off between Level of Security and Cost • Choice of Architecture

  5. Example: Bidding and Auctions • Pricing: • Non- Discriminatory versus Discriminatory • S=Supplier; Ri=Retaileri • Architectural Issues • E-commerce Scenarios, Frameworks • How to keep participants honest

  6. Non Discriminatory Clearing • Each retailer i has one (pi , qi) pair • Supplier has a supply curve q = p + q • The fixed price would be p = Sqi – q • Only retailers with pi < p are allowed to pull out

  7. Pick and Choose • The seller can sell at most K identical units. • Each retailer has a number of price-quantity pairs (gets only one). • Find the minimum number of units to be sold with the maximum possible seller’s revenue.

  8. All or Nothing • Each retailer i has one (pi , qi) pair • Supplier has a supply curve q = p + q • Supplier is to accept all bids or none • Is Spiqi ≥ (Sqi -q)(Sqi) ?

  9. Discriminatory Pricing • Filling an order from retailer i reveals to the seller (pi , qi). This reveals the retailer demand curve! • Buyer’s proxy

  10. Capacity Allocation Models • Proportional Allocation qi = {qi , Kqi/Sqi} • Linear Allocation q1 ≥ q2 ≥ … ≥ qN qi = qi - max{0 , S0nqi - K}/n

  11. Ongoing and Future Work • Enhancing protocols’ performance • Other capacity allocation models • Collusion resistance • Auditability • Non-repudiation • Multi-supplier scenarios • Multi-commodity (combinatorial) scenarios

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