TY - GEN
T1 - Coordinating a three-level supply chain with combined contracts under stochastic demand
AU - Hou, Lin Lin
AU - Li, Hang
AU - Qiu, Wan Hua
PY - 2009
Y1 - 2009
N2 - The problem of how to coordinate a two-level supply chain with contracts is discussed in most literature, but supply chain often consists of more than two separate firms in fact. This paper aims to study the coordination issue of a three-level supply chain selling short life cycle products in a single period model. We construct the so-called combined contracts mechanism, a buy-back contract between the retailer and the distributor and a profit-sharing contract between the manufacture and the distributor, to coordinate the channel under stochastic demand. We show that the three-level supply chain can be fully coordinated by designing appropriate contract parameters and the total profit of the channel can be allocated with some specified ratios among the firms. Finally, the validity of the contract mechanism is illustrated by a numerical example.
AB - The problem of how to coordinate a two-level supply chain with contracts is discussed in most literature, but supply chain often consists of more than two separate firms in fact. This paper aims to study the coordination issue of a three-level supply chain selling short life cycle products in a single period model. We construct the so-called combined contracts mechanism, a buy-back contract between the retailer and the distributor and a profit-sharing contract between the manufacture and the distributor, to coordinate the channel under stochastic demand. We show that the three-level supply chain can be fully coordinated by designing appropriate contract parameters and the total profit of the channel can be allocated with some specified ratios among the firms. Finally, the validity of the contract mechanism is illustrated by a numerical example.
KW - Buy-back contract
KW - Profit-sharing contract
KW - Supply chain coordination
KW - Three-level supply chain
UR - https://www.scopus.com/pages/publications/72249117108
U2 - 10.1109/ICMSE.2009.5317402
DO - 10.1109/ICMSE.2009.5317402
M3 - 会议稿件
AN - SCOPUS:72249117108
SN - 9781424439706
T3 - 2009 International Conference on Management Science and Engineering - 16th Annual Conference Proceedings, ICMSE 2009
SP - 350
EP - 355
BT - 2009 International Conference on Management Science and Engineering - 16th Annual Conference Proceedings, ICMSE 2009
T2 - 2009 16th International Conference on Management Science and Engineering, ICMSE 2009
Y2 - 14 September 2009 through 16 September 2009
ER -