Supply Chain Coordination under Stock- and Price-Dependent Selling Rates under Declining Market
Author(s) -
Subrata Saha,
Sambhu Das,
Manjusri Basu
Publication year - 2011
Publication title -
advances in operations research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.379
H-Index - 14
eISSN - 1687-9155
pISSN - 1687-9147
DOI - 10.1155/2012/375128
Subject(s) - stackelberg competition , distributor , supply chain , revenue sharing , microeconomics , revenue , stock (firearms) , coordination game , economics , business , industrial organization , finance , marketing , mechanical engineering , engineering
We explore coordination issues of a two-echelon supply chain, consisting of a distributor and a retailer. The effect of revenue-sharing contract mechanism is examined under stock-time-price-sensitive demand rate. First, we investigate relationships between distributor and retailer under noncooperative distributor-Stackelberg games. Then we establish analytically that revenue sharing contact is able to coordinate the system and leads to the win-win outcomes. Finally, numerical examples are presented to compare results between the different models
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