• DocumentCode
    2240251
  • Title

    Coordination and ripple effect of a coopetition supply chain with quantity-discount contract

  • Author

    Qian, Zhao ; Hong, Chen ; Zhong-he, Wu ; Dong-chuan, Xie

  • Author_Institution
    Sch. of Econ. & Manage., UESTC, Chengdu, China
  • fYear
    2011
  • fDate
    13-15 Sept. 2011
  • Firstpage
    222
  • Lastpage
    226
  • Abstract
    In many studies of supply-chain coordination, researchers just consider upstream and downstream are no cooperative. This paper investigates a coopetition supply chain which consists of one supplier and duopoly manufacturers that produce substitutable products. The supplier does not cooperate with one manufacturer, but cooperates with the other. To coordinate this coopetition supply chain, we introduce a quantity discount pricing model to address coordination condition of the supply chain. We get the coordination condition - the optimal quantity discount rate. Then, under operating uncertainty caused by manufacturers´ competition of price, we discuss the intensity of supply-chain ripple effect. We find that quantity-discount contract can coordinate the supply-chain, but cannot remove supply-chain ripple effect in the situation we assume. Besides, in the coordination condition, the price competition from downstream will cause the superposing ripple effect of market demand. And, the effect results in increasing operation cost of the upstream.
  • Keywords
    contracts; oligopoly; pricing; supply chain management; cooperative competition; coopetition supply chain; duopoly manufacturers; market demand; price competition; quantity discount contract; quantity discount pricing model; supply chain coordination; supply chain ripple effect; Contracts; Face; Games; Pricing; Raw materials; Supply chains; Uncertainty; coopetition; coordination; operating uncertainty; quantity discount; supply-chain ripple effect;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Management Science and Engineering (ICMSE), 2011 International Conference on
  • Conference_Location
    Rome
  • ISSN
    2155-1847
  • Print_ISBN
    978-1-4577-1885-4
  • Type

    conf

  • DOI
    10.1109/ICMSE.2011.6069968
  • Filename
    6069968