One of the most important things in pursuit of supply chain management is to prevent sub-optimization caused by decentralized decision making over the various entities. As a solution of the issue, supply chain coordination approach has frequently been used. However, a coordinated supply chain might fail to provide additional profit to one of the players. A supply chain contract can be to achiev...

We introduce a composite (CP) contract for a two-stage supply chain by organically combining two component contracts: a buy back (BB) contract and a quantity flexibility (QF) contract. The CP contract is shown to have advantages over both component contracts in terms of supply chain coordination, profit allocation, and risk allocation. In particular, we obtain the following results: (a) as long...

In this paper, seller-buyer supply chain coordination with general side-payment contracts is introduced to gain the maximum possible chain profit. In our model, the logistics costs for both buyer and seller are considered and the final demand is also supposed to be a decreasing function of the retail price. Since parties aim to maximize their individual profits, the contractual parameters are s...

This study investigates the channel coordination issue of a supply chain with a risk-neutral manufacturer and a loss-averse retailer facing stochastic demand that is sensitive to sales effort. Under the loss-averse newsvendor setting, a distribution-free gain/loss-sharing-and-buyback (GLB) contract has been shown to be able to coordinate the supply chain. However, we find that a GLB contract re...

This paper develops a dynamicmodel in a one-supplier-one-retailer fresh agricultural product supply chain that experiences supply disruptions during the planning horizon.The optimal solutions in the centralized and decentralized supply chains are studied. It is found that the retailer’s optimal order quantity and the maximum total supply chain profit in the decentralized supply chain with whole...

According to the Council of Supply Chain Management Professionals (September 2007), we have the following description for supply chain management: “supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel pa...

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 upstream innovation, focusing on three different contract scenarios: (i) a wholesale price contract, (ii) a quality-dependent wholesale price contract, and (iii) a revenue-sharing contract. We confirm that the rev...

The members of a chain always try to find new ways in order to raise their profit. Hence we intend to study two different scenarios in a single item two-echelon green supply chain including two manufacturers and one retailer to study the effects of two effective contracts on members’ profit. Two scenarios are discussed and in first one, first manufacturer proposes quantity discount contract to ...

Abstract—The need for holistic modeling efforts that satisfy the increasing supply chain enterprise at a strategic level has been clearly recognized by industry first and by academia recently. In order to increase the profitability of the entire chain, strategic decision-makers need comprehensive models to guide them to make efficient decision. The determination of optimal network configuration...

Based on a supply chain framework, we study the stocking decision of a downstream buyer who receives private demand information and has the incentive to influence her capital market valuation. We first characterize a market equilibrium under a general, single buy-back contract. We show that the buyer’s stocking decision can be distorted in equilibrium. Such a downstream stocking distortion hurt...