Supply Chain Coordination Problem with Loss-Averse Retailer and Buyback Contract

Author(s):  
Kuiran Shi ◽  
Xiao Zhang ◽  
Lin Zhao
2019 ◽  
Vol 8 (3) ◽  
pp. 31-48
Author(s):  
Sandhya Makkar

In the changing market scenario, supply chain management is getting phenomenal importance amongst researchers. Studies on supply chain management have emphasized the vitality of a long-term strategic relationship between the supplier, distributor and retailer. In this article, the authors have studied a two-stage supply chain coordination problem under uncertain costs and demand information when integrated procurement and distribution decisions of supply chain has to be employed. The model incorporates a single supplier transporting its products to multiple destinations of a retailer. This process becomes tedious, as when items have an inventory carrying cost incurred due to perishable nature of products. Different discount policies are offered to procure and transport goods from the one stage to other stage. Fuzzy set theory is applied to estimate the uncertainty associated with the input parameters and triangular fuzzy numbers are used to analyze the model. A case is presented to validate the procedure.


2020 ◽  
Vol 12 (9) ◽  
pp. 3591 ◽  
Author(s):  
Dan Wu ◽  
Yuxiang Yang

In this paper, we study the supply chain coordination problem between a manufacturer and a retailer regarding consumers’ low-carbon preferences. The retailer considers the market demand to determine the order quantity; the manufacturer chooses how to reduce emissions according to the retailer’s order quantity. We consider four cases, including the non-emission abatement, the emission abatement of decentralized decision-making, the centralized decision-making and the retailer providing a cost-sharing contract. By comparing the four cases, we find that the case of a retailer providing a cost-sharing contract can coordinate the supply chain, achieving a Pareto improvement for the manufacturer and retailer. In addition, we use the Rubinstein bargaining model to determine the cost-sharing ratio. Finally, numerical simulations are given to analyze the impact of the cost-sharing ratio on the equilibrium results, including the profit and the emission abatement level. Furthermore, we investigate the impact of the cost-sharing ratio and consumers’ low-carbon awareness on the profits of the members in the supply chain. We find that the equilibrium results, including the order quantity, the emission abatement level and the profits of the members in the supply chain under contract, are higher than the ones under centralized decision-making. The results show that in the higher low-carbon awareness market, retailers should formulate a reasonable cost-sharing ratio to achieve emission reduction coordination.


2019 ◽  
Vol 25 (2) ◽  
pp. 239-257 ◽  
Author(s):  
Shukuan Liu ◽  
Jie Gao ◽  
Zeshui Xu

We study the supply chain (SC) returning strategy and quantity discount coordination under the condition of product quality defects. We assume that the demand is a triangular fuzzy number (TFN), considering the SC coordination problem consisting of a manufacturer and a retailer. The decentralized SC coordination model and the integrated SC coordination model under a fuzzy environment are established respectively. The fuzzy set theory is used to study the manufacturer’s quantity discount and the retailer’s coordination of return policy. The signed distance is used as the ranking method to find the optimal order quantity in SC, and the optimization theory is used to maximize the participants’ profits. We first demonstrate that the retailer’s profit will be reduced in a typical integrated channel, and then we propose a quantitative discount return policy to coordinate the profits of the manufacturer and the retailer. Finally, the coordination steps are designed, and the manufacturer’s return policy is given. Meanwhile, some illustrative cases are provided to illustrate the feasibility of the proposed model.


2018 ◽  
Vol 30 (2) ◽  
pp. 195-204 ◽  
Author(s):  
Nana Geng ◽  
Yong Zhang ◽  
Yixiang Sun

Biofuel is considered to be an important alternative energy in the future transportation. Its development is supported by the rest of the world. However, biofuel industry development is still very slow. From the previous research it is known that the supply chain coordination and other problems need to be solved to promote the supply chain ability. This paper studies biodiesel supply chain coordination problem from the view of disturbance management. It gives a disturbed coordination strategy which contains the optimal order quantity and the contract parameters. This paper has then verified the disturbed coordination strategy through using the actual data of Jiangsu Yueda Kate New Energy Co. Ltd. The result shows that when the market demand and the recovery cost are simultaneously disturbed, the coordination can make the biodiesel supply chain robust and the new strategy under the revenue sharing contract is better than the original one.


2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Yongrui Duan ◽  
Guiping Li ◽  
Jiazhen Huo

This paper considers a two-level supply chain coordination problem for fixed lifetime products with permissible delay in payments. Two cases are discussed; that is, the retailer is required to settle the balance before the end of the ordering cycle (Case I) and after the ordering cycle (Case II). The coordination models are proposed and analyzed, respectively. The analytical methods as to how to determine the optimal policy are presented. In addition, it is indicated that the supplier's cost as well as that of the total system will be reduced no matter how much the parameters change, and the retailer will benefit from coordination, if the supplier is willing to share the cost saving with him/her in Case I. In Case II, the retailer's average cost will be reduced and the supplier will benefit from coordination only under certain conditions. Besides, the results show that, for fixed lifetime products, providing longer credit period than the retailer's order period is not commonly applicable.


Sign in / Sign up

Export Citation Format

Share Document