We study the competition of two supply chains which are subject to supply uncertainty. Each supply chain consists of a supplier and a retailer. The retailers engage in Cournot competition by determining order quantities from their exclusive suppliers. The suppliers may not be able to fulfill the retailer orders at all time due to various causes. We examine the decisions of the suppliers and ret...

Channel coordination using contracts is a topic that commanded a great deal of attention in the supply chain management literature. Several recent studies that tested the performance of coordinating contracts in the laboratory found that they fail to coordinate channels, and a major reason for this failure is that a significant proportion of offers are rejected. Our study extends the body of re...

We consider a supply chain with an upstream supplier who invests in innovation and a downstream manufacturer who sells to consumers. We study the impact of supply chain contracts with endogenous upstream innovation, focusing on three different contract scenarios: (i) a wholesale price contract, (ii) a quality-dependent wholesale price contract, and (iii) a revenuesharing contract. We confirm th...

Fee-For-Service (FFS) contracts, first introduced in 2004, dramatically changed the way the pharmaceutical distribution supply chains are designed, managed, and operated. Investment buying (IB), forward buying in anticipation of drug price increases, used to be the way the distributors made most of their profits! FFS contracts limit the amount of inventory distributors can carry at any time (by...

I many industries, Internet referral services, hosted either by independent third-party infomediaries or by manufacturers, serve as digitally enabled lead generators in electronic markets, directing consumer traffic to downstream retailers in a distribution network. This reshapes the extended enterprise from the traditional network of upstream manufacturers and downstream retailers to include m...

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.

The coordination of a decentralized supply chain can be achieved by adopting supply chain contracts. This paper investigates how a decentralized supply chain can be coordinated by a revenue sharing contract, in which the supplier offers the retailer a lower wholesale price in return for a percentage of the retailer’s revenue. Salvage value and goodwill loss are taken into consideration, since i...

Supply chain redesign involves decisions regarding the timing, amount and location attributes of the investment and disinvestment in facilities, production, purchase of raw materials, sale of products, loans and bonds for raising capital, signing of contracts for material purchase and sales, such that the profit is maximized. In this work, we use genetic algorithm to obtain the supply chain red...

Dual channels have become popular strategies for manufacturers due to the development of innovative selling platforms. Examples in practice also show that the lack of relationship management, such as cooperation and sharing, may cause an unsustainable supply chain performance. However, previous studies on coordination of dual-channel supply chains always focus on the contribution to profits and...