Contract Coordination Strategy of Supply Chain with Substitution under Supply Disruption and Stochastic Demand
نویسندگان
چکیده
Abstract: Based on two substitute products, we study the inventory and contract coordination strategy of a three-echelon supply chain, which consists of two suppliers, a manufacturer and a retailer, under supply disruption and stochastic demand. We investigate the channel gross profit model of the centralized supply chain and obtain a unique optimal order quantity. Under a decentralized decision, we find that the commonly-used wholesale price contracts cannot coordinate the system. Then, we propose a buy-back contract and prove that this contract can more efficiently coordinate the system than the former. At last, we show that the integrated performance of the decentralized system can be maximized through choosing the buy-back parameter by the manufacturer and reveal that the effects of supply uncertainty and the substitution behavior of customers on the optimal decision by numerical examples.
منابع مشابه
Coordinating a decentralized supply chain with a stochastic demand using quantity flexibility contract: a game-theoretic approach
Supply chain includes two or more parties linked by flow of goods, information, and funds. In a decentralized system, supply chain members make decision regardless of their decision's effects on the performance of the other members and the entire supply chain. This is the key issue in supply chain management, that the mechanism should be developed in which different objectives should be align...
متن کاملCoordination and profit sharing in a two-level supply chain under periodic review inventory policy with delay in payments contract
In this paper,a coordination model has been investigated for a two-level supply chain (SC) consisting of one retailer and one supplier under periodic review inventory system. The review period and the retailer’s safety factorare assumed to be decision variables. The retailer faces stochastic demand following a normal distribution with known mean and variance. Moreover, it is assumed that unmet ...
متن کاملApplying a CVaR Measure for a Stochastic Competitive Closed-Loop Supply Chain Network under Disruption
This paper addresses a closed-loop supply chain network design problem, in which two different supply chains compete on retail prices by defining a price-dependent demand function. So, the model is formulated in a bi-level stochastic form to demonstrate the Stackelberg competition and associated uncertainties more precisely. Moreover, it is capable of considering random disruptions in the leade...
متن کاملSupply Chain Coordination Strategy under Demand Disruption–based on ABD Contracts
This paper considers the coordination problem of one-retailer one-supplier supply chains with stochastic demand and demand disruption. Adopted optimization methods and numerical experiments, we evaluate the benefits of the ABD contracts with and without demand disruption, and characterize the optimal discount price that maximizes the supplier’s expected profit under such circumstance. The resul...
متن کاملCoordinating pricing and periodic review replenishment decisions in a two-echelon supply chain using quantity discount contract
In this paper, the coordination of pricing and periodic review inventory decisions in a supplier-retailer supply chain (SC) is proposed. In the investigated SC, the retailer faces a stochastic price dependent demand and determines the review period, order-up-to-level, and retail price. On the other hand, the supplier decides on the replenishment multiplier. Firstly, the decentralized and centra...
متن کامل