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Price of anarchy, the performance ratio, which could characterize the loss ofefficiency of the distributed supply chain management compared with theintegrated supply chain management is discussed by utilizing newsvendor problemin single period which is well-known. In particular, some of remarkabledistributed policies are handled, the performance ratios in each case whichhave been investigated in the previous works are analyzed theoretically and thetighter upper bound of price of anarchy and the lower bound are presented.Furthermore our approach is developed based on a generalized framework and ageometric interpretation of price of anarchy is appeared via the literature ofconvex optimization.

Improved and Developed Upper Bound of Price of Anarchy in Two Echelon Case