Robust supply chain coordination modeling: A revenue management perspective
The revenue management concept and techniques are applied to model the coordination of supply chain elements. The fundamental premise of this approach is synchronization of a group of business entities consist-ing of a manufacturer and multiple suppliers to achieve an optimal supply chain capacity plans. The output of the supply chain can be various products and thus it is measured in terms of capacity. In our paper, the de-mand is stochastic. As a result, the chain faces uncertainty when it comes to determine the volume of contract between manufacturer and suppliers. The model developed in this paper provides the basis for long-term con-tracts between manufacturer and its supply network for coordinated and non-coordinated supply relationship. It also provides decision rules to increase flexibility in responding to consumer demand shifts without cost overlays in resource utilization, while increasing the overall capacity utilization and market share. The col-laboration framework versus independency of supply chain members is introduced to investigate the rules for competition through optimal demand management and capacity allocation. An important result is that the models are robust, as they are independent of demand distribution function. We also study the effect of a sup-plier who supplies two competitive chains on capacity and price basis. Our analysis of supply-chain shows that at the presence of uncertainty of demand collaborative chains are more robust to capacity reservation plan comparing to independent identities as far as capacity is concerned. The robustness of a supply network to support the chain leader (manufacturer) is also measured and the trade off for sustainable network is proposed.
the revenue management concept and techniques are applied to model the coordination of supply chain elements. the fundamental premise of this approach is synchronization of a group of business entities consist-ing of a manufacturer and multiple suppliers to achieve an optimal supply chain capacity plans. the output of the supply chain can be various products and thus it is measured in terms of ...متن کامل
Under a revenue-sharing contract, a retailer pays a supplier a wholesale price for each unit purchased plus a percentage of the revenue the retailer generates. Such contracts have become more prevalent in the video cassette rental industry relative to the more conventional wholesale price contract. This paper studies revenue-sharing contracts in a general supply chain model with revenues determ...متن کامل
Three-stage mining metals supply chain coordination and air pollutant emission reduction with revenue sharing contract
One of the main concerns of all industries such as mine industries is to increase their profit and keep their customers through improving quality level of their products; but increasing the quality of products usually releases air pollutants. Nowadays the management of air pollutant emissions with harmful environmental and health effects is one of the most pressing problems. In this paper, auth...متن کامل
Environmental consciousness has become increasingly important in everyday life and business practice. The effort to reduce the impact of business activities on the environment has been labelled as green supply chain management. Any major greening project would require efforts on the part of the entire supply chain. However, very few studies have addressed the issue of coordinating the green sup...متن کامل
Decentralized Supply Chain Coordination with Revenue Sharing Mechanism: Transfer Pricing Heuristics and Revenue Share Rates
A revenue sharing contract is one of the mechanisms that coordinate decision makers in a decentralized supply chain toward the consensual goal. The transfer prices between different echelons in the supply chain influence the total supply chain profits. The study aims to explore various transfer pricing heuristics on the supply chain coordination in terms of the supply chain profits and their in...متن کامل
In this paper, we consider the coordination issue on a supply chain when the firm on this chain tries to produce new products. By considering the risk of new products, three contracts, constant wholesale price contract, revenue sharing contract and linear quantity discount policy, are investigated.متن کامل
دوره 5 شماره 9
صفحات 1- 16
تاریخ انتشار 2009-09-01
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