Title: Coordination between a supplier and a retailer in terms of profit concession for a two-stage supply chain
Abstract: AbstractThis paper introduces a coordination model that copes with the conflicts between a supplier and a retailer in a two-stage supply chain. In this model, the supplier aims to maximise his/her profit, while the retailer aims to maximise his/her expected profit under a stochastic demand. To solve this model, an -coordination solution to this model is introduced, which implies the supplier and the retailer both will make a same concession in their profits to cooperate with each other. Further, we show that each feasible solution to this model is an -coordination solution for a sufficiently large value , while the -optimum coordination solution gives the minimum concession for the supplier and the retailer. Besides, it is proved that the -optimum coordination solution can be obtained by solving a mathematical programming problem. At last, a numerical example and sensitivity analysis are given to show the performance of the proposed method.Keywords: supply chain coordinationcoordination solutionmathematical programming problem AcknowledgmentsThe authors would like to thank two anonymous reviewers and the editors for giving us many valuable suggestions and comments, which help us improve this paper greatly.NotesThis work is supported by the National Natural Science Foundation of China (No.71001089) and the Science Foundation of Binzhou University (BZXYL1304).
Publication Year: 2013
Publication Date: 2013-11-12
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 14
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