This manuscript investigates the problem of locational complexity, a type of complexity that emanates from a companys territorial strategy. Using an entropy-based measure for supply chain structural complexity ( pars-complexity), we develop a theoretical framework for analysing the effects of locational complexity on the profitability of service/manufacturing networks. The proposed model is used to shed light on the reasons why network restructuring strategies may result ineffective at reducing complexity-related costs. Our contribution is three-fold. First, we develop a novel mathematical formulation of a facility location problem that integrates the pars-complexity measure in the decision process. Second, using this model, we propose a decomposition of the penalties imposed by locational complexity into (a) an intrinsic cost of structural complexity; and (b) an avoidable cost of ignoring such complexity in the decision process. Such a decomposition is a valuable tool for identifying more effective measures for tackling locational complexity, moreover, it has allowed us to provide an explanation to the so-called addiction to growth within the locational context. Finally, we propose three alternative strategies that attempt to mimic different approaches used in practice by companies that have engaged in network restructuring processes. The impact of those approaches is evaluated through extensive numerical experiments. Our experimental results suggest that network restructuring efforts that are not accompanied by a substantial reduction on the target market of the company, fail at reducing complexity-related costs and, therefore, have a limited impact on the companys profitability.
翻译:本文研究区位复杂性——一种源于公司地域战略的复杂性类型。基于供应链结构复杂性的熵值度量(pars-complexity),我们构建了分析区位复杂性对服务/制造网络盈利能力影响的理论框架。该模型阐释了为何网络重构策略在降低复杂性相关成本时可能无效。本文贡献有三:首先,提出集成pars-complexity度量的设施选址问题新数学公式;其次,利用该模型将区位复杂性产生的惩罚分解为:(a)结构性复杂性的固有成本;(b)决策过程中忽视此类复杂性的可规避成本。这种分解不仅是识别应对区位复杂性更有效措施的重要工具,更使我们能够在区位背景下解释所谓的"增长成瘾"现象;最后,提出三种模拟企业网络重构实践中不同方法的替代策略,并通过大量数值实验评估其效果。实验结果表明:未伴随公司目标市场实质性缩减的网络重构努力,无法有效降低复杂性相关成本,因此对盈利能力的影响十分有限。