Compensation and Buy-Back Deals in Supply Chains: Analyzing Strategic Decision Areas by Using AHP

Research on Buy-Back Contract in Supply Chains Based on Mental Accounting Theory

Adopting the concept of mental accounting, the paper analyzes loss-aversion retailer’s optimal order quantity under buy-back contract in the two-stage supply chain, and proves the existence and uniqueness of the optimal order quantity. Conclusions show: under the certain degree of loss aversion, there exists a unique repurchase price to achieve supply chain coordination; meanwhile, the system’s...

Strategic Approaches to Domination in Supply Chains

Strategic Safety Stock Placement In Supply Chains

We consider a multi-stage production/distribution supply chain subject to stochastic demand. We formulate an optimization problem to determine where to place decoupling inventories, so-called strategic inventories, across the supply chain so as to minimize inventory holding costs subject to a service constraint for satisfying customer demand. We assume demand is normally distributed. For each s...

Equity-Based Incentives and Supply Chain Buy-Back Contracts

Acknowledgement: We thank the Chief Editor (Professor Asoo J. Vakharia), the Senior Editor, the Associate Editor, and two referees for their invaluable suggestions that helped improve the clarity and quality of this paper. The order of authorship is alphabetical, and the authors contributed equally to the manuscript. ABSTRACT We analyse the effect of equity-based incentives in a supply chain wi...

Analyzing AHP-matrices by regression

In the analytic hierarchy process (AHP) the decision maker makes comparisons between pairs of attributes or alternatives. In real applications the comparisons are subject to judgmental errors. Many AHP-matrices reported in the literature are found to be such that the logarithm of the comparison ratio can be suÆciently well modeled by a normal distribution with a constant variance. On the basis ...