The Internet has changed the way business is conducted in many ways. For example, in the field of procurement, the possibility to directly interact with a trading partner has given rise to new mechanisms in the supply chain management. One such interactive dynamic procurement, which lets both buyer and seller software agents bid by potential buyer agents instead of static procurement by vendors...

Under the tide of globalization and mass customization, manufacturer is seeking dynamic outsourcing of some operations to other specialists (i.e. contract manufacturer) in order to improve cost effectiveness of its supply chain. The benefits of outsourcing cannot be realized unless information sharing and coordinated scheduling between independent organizations in a supply chain are well config...

T o avoid inventory risks, manufacturers often place rush orders with suppliers only after they receive firm orders from their customers (retailers). Rush orders are costly to both parties because the supplier incurs higher production costs. We consider a situation where the supplier’s production cost is reduced if the manufacturer can place some of its order in advance. In addition to the rush...

This paper considers the coordination problem of one-retailer one-supplier supply chains with stochastic demand and demand disruption. Adopted optimization methods and numerical experiments, we evaluate the benefits of the ABD contracts with and without demand disruption, and characterize the optimal discount price that maximizes the supplier’s expected profit under such circumstance. The resul...

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This paper deals with the coordination of supply chain composed of a leading supplier and one retailer as a follower under asymmetric demand information. The demand information asymmetry is portrayed by the state of demand forecast information, accordingly the model, the state of demand information is the special discrete distribution, is established. The parameters menus, which are the optimal...

We consider a supply chain involving one supplier and one retailer in which a revenuesharing contract is adopted. Under this contract, the retailer can obtain the product from the supplier at a discounted price. As a compensation, the retailer must share his revenue with the supplier at a certain revenue-sharing rate, say r (0 ≤ r ≤ 1), where r represents the portion of the revenue to be kept b...

A supply chain is a worldwide network of suppliers, manufactures, warehouses, distribution centers, and retailers through which raw materials are acquired, transformed, and delivered to customers. In recent years, a new system approach for managing the supply chain at the tactical and operational levels has emerged. It views a supply chain as composed of a set of intelligent (software) agents, ...