In a supply chain organized as a network of autonomous enterprises, the main objective of each partner is to optimize his production and supply policy with respect to his own economic criterion. Conflicts of interests and the distributed nature of the decision structure may induce a global loss of efficiency. Contracts can then be used to improve global performance and decrease risks. The purpo...

False failure returns are products that are returned by consumers to retailers with no functional or cosmetic defect. The cost of a false failure return includes the processing actions of testing, refurbishing if necessary, repackaging, the loss in value during the time the product spends in the reverse supply chain (a time that can exceed several months for many firms), and the loss in revenue...

1 This paper is an invited chapter to be published in the Handbooks in Operations Research and Management Science: Supply Chain Management, edited by Steve Graves and Ton de Kok and published by North-Holland. I would like to thank the many people that carefully read and commented on the ...rst draft of this manuscript: Ravi Anupindi, Fangruo Chen, Charles Corbett, James Dana, Ananth Iyer, Ton ...

We investigate how a supply chain, formed by a risk-neutral supplier and a riskaverse retailer, can be coordinated with a supply contract. We demonstrate that the standard wholesale, buy-back or revenue-sharing contracts do not coordinate such a channel. We propose a definition of coordination of the supply chain, and design an easy-to-implement risk-sharing contract that offers the desired dow...

The paper analyses operational coordination mechanisms between a producer and a supplier within a supply chain having private local information. For a make to order production setting the coordination is achieved through the combined use of a task-oriented and a control-oriented type of instrument. The task-oriented instrument describes the producer s procurement policy for components whereas t...

This paper develops a model for illustrating how to use quantity discount policy to achieve supply chain coordination. A supplier–buyer system selling one type of product with multi-period and probabilistic customer demand is considered. We first show that if both the buyer and supplier can find a coordination mechanism to make joint decisions, the joint profit in this situation is more than th...

We study the coordination of supply chains with a risk-neutral supplier and a risk-averse retailer. Different from the downside risk setting, in a conditional value-at-risk (CVaR) framework, we show that the supply chain can be coordinated with the revenue-sharing, buy-back, two-part tariff and quantity flexibility contracts. Furthermore the revenuesharing contracts are still equivalent to the ...

Logistics Service Providers (3PL) have become important players in supply chain management. In a highly competitive context characterized by “time compression”, a successful strategy depends increasingly on the performance of Logistics Service Providers as they play a key integrative role linking different supply chain elements more effectively. However, the role of the information technology c...

There are many problems in construction process, such as fragmentation, budget overrun, time overrun and high waste, most of which are supply chain problems and often caused by the lack of coordination and information sharing across organizations in the supply chains. Supply chain coordination (SCC) is a critical success factor for the application of supply chain management to effectively impro...

As the order fulfillment process (OFP) in supply chains shifts to outsourcing paradigm, the OFP performance relies on the coordination among supply chain partners to reach executable and effective plans. The coordination of OFP among supply chain partners can be viewed as a distributed constraint satisfaction problem (DCSP). This paper enhances the existing methods to solve the DCSP by adding t...