Tourism supply chain management has become an important research topic as individual firms no longer compete as isolated entities but rather as supply chains in the tourism industry. Despite the evidence that benefits can be gained to improve profitability, competitiveness, and customer satisfaction, the research on how to manage the tourism supply chain is very limited. This research contributes to the literature by applying the theory of constraints (TOC) with systems thinking to tourism supply chain management. It proposes that the key issue in tourism supply chain management is the coordination of business activities and the TOC with systems thinking can effectively support tourism supply chain coordination of the various links and processes. The article examines the TOC performance measures and the drum–buffer–rope model in the context of tourism management and applies the focusing process of the TOC as a continuous improvement approach for tourism supply chain management. The research findings suggest that, given modifications to the TOC terminology and the principles, the TOC principles can work as an excellent approach to facilitate the tourism supply chain management.
Supply Chain Coordination with a Loss-Averse Retailer and Combined Contract
