NDLI: Supply Chain Coordination with Multiple Competing Newsvendors

Content Provider	IEEE Xplore Digital Library
Author	Zeng Fan-hui Gai Ru-dong
Copyright Year	2007
Abstract	For a supply chain system with one supplier and multiple retailers who faces stochastic market demand, it can be coordinated with contracts (e.g., wholesale price contract, buy back contract, and revenue sharing contract). We find that wholesale price contract can coordinate the supply chain in the multiple newsvendors case and revenue sharing contract is equivalent to buy back contract in the newsvendors case with a fixed retail price. The purpose of this paper is to investigate the supply chain that experiences a demand disruption during the planning horizon. First, we show that the coordination may be broken off by an emergent event, which make the demand disruptions, that is, it makes the demand distribution different from the assumption needs to achieve original supply chain's coordination. Second, we show that changes to the original plan induced by an emergent event may impose considerable deviation costs throughout the system and make the supply chain uncoordinate. We derive conditions that indicate when the maximum profit can be achieved. Then, optimal strategies for supply chain to the disruptions by contracts are presented. Last, the adjusted contracts which have antidisruption ability are proposed, and they can be used as effective schemes to coordinate supply chain in a large range of situations.
Starting Page	934
Ending Page	939
File Size	3545689
Page Count	6
File Format	PDF
ISBN	9787560322780
DOI	10.1109/ICMSE.2007.4421966
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2007-08-20
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	HARBIN INSTITUTE OF TEC
Subject Keyword	Supply chain management Costs Supply chains Demand forecasting Stochastic processes Conference management supply chain coordination antidisruption ability buy back contract Technology management demand disruption revenue sharing contract Production wholesale price contract Economic forecasting Contracts
Content Type	Text
Resource Type	Article

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