Title :
How to coordinate supply chain with demand deviation
Author :
Jun Zhang; Hong Chen; Jing Dai
Author_Institution :
University of Electronic Science and Technology of China, Chengdu, China
fDate :
7/1/2015 12:00:00 AM
Abstract :
In this paper, a supply chain composed of one supplier and one retailer is studied. The supply chain is coordinated under the revenue-sharing contract in static case. Disruption makes the price sensitivity coefficient change. In integrated supply chain, the supplier needs to adjust the retail price if demand deviation is in certain range. The supplier needs to adjust the retail price and the production quantities if the deviation is large enough. In decentralized decision, the supply chain cannot be coordinated. This means that the original revenue-sharing contract cannot coordinate the disrupted supply chain. An improved revenue-sharing contract is put forward to coordinate the disrupted supply chain. The research shows that the improved contract can coordinate the original supply chain and the disrupted supply chain, which means that the contract has robustness when facing the demand deviation. Finally, some numerical examples are shown.
Keywords :
"Supply chains","Contracts","Sensitivity","Resource management","Economics","Robustness"
Conference_Titel :
Logistics, Informatics and Service Sciences (LISS), 2015 International Conference on
DOI :
10.1109/LISS.2015.7369719