Anupindi and Bassok investigate the impact of centralizing the stocks in a one-manufacturertwo-retailer supply chain with consumer search. They observed through numerical studies that in the decentralized scenario, the retailers’ order quantities are monotonic in the consumer search probability. This paper provides an analytical justification of this monotonicity.

One of the main priorities of companies involved in supply chains is improving the quality of their products. However, as in other parts of supply chain management, decentralized decision-making in supply quality management is prevalent, which causes inefficiencies such as the well-known double marginalization phenomenon. Coordinating schemes, such as the revenue sharing contract, can contribut...

This paper investigates the integration of strategic and tactical decisions in the supply chain network design (SCND) considering assembly line balancing (ALB) under demand uncertainty. Due to the decentralized decisions, a novel bi-level stochastic programming (BLSP) model has been developed in which SCND problem has been considered in the upper-level model, while the lower-level model contain...

  Bi-level programming, a tool for modeling decentralized decisions, consists of the objective(s) of the leader at its first level and that is of the follower at the second level. Three level programming results when second level is itself a bi-level programming. By extending this idea it is possible to define multi-level programs with any number of levels. Supply chain planning problems are co...

The paper presents a generic collaboration scheme for supply networks that is based on practical assumptions motivated by the automotive industry. Primarily, it is decentralized, allows autonomous decision making at the partners, and requires a relatively simple information exchange between immediate partners in a supply chain. Within this scheme called Dynamic Supply Loops (DSL), it is possibl...

This paper proposes a new motivation for information sharing in a decentralized channel consisting of a single manufacturer and two competing retailers. The manufacturer provides a common product to the retailers at the same wholesale price. Both retailers add their own values to the product and distribute it to consumers. Factors such as retail prices, values added to the product, and local ad...

The paper analyses non-cooperative behaviour in a two-echelon decentralized supply chain, composed of one supplier and n retailers. For sufficient supply from the supplier, we build the approximate decision model of their base stock level, in which the suppliers reactions are not considered, and its non-cooperative behaviour is obtained. For insufficient supply from the supplier, much more comp...

This paper presents a decentralized cooperative economic scheduling mechanism for a supply chain environment. For this purpose, we design autonomous agents that minimize the production or transportation and outsourcing costs incurred by the external execution of a task. The decentralized cooperative scheduling approach comprises two parts: the individual optimization of an agent’s local schedul...

A service collaboration decision problem in a dual-channel supply chain is studied with the service level and the customer’s acceptance of the Internet channel is taken into consideration. Then the Stackelberg decentralized decision model and the centralized decision model are developed for two settings that the retailer provides the same service level in both channels or not. The conclusion im...