Title: Research on equilibriums and coordination strategies of supply chains with quality and price competition
Abstract: In this paper,we consider a market with two competing supply chains with common customers,each consisting of one manufacture and one retailer.We assume that supply chain competing on two sides: products' qualities and prices.At first we analyze the supply chain competition results in three scenarios: uncoordinated scenario,hybrid scenario(only one supply chain adopts coordination strategy) and coordinated scenario.We show that coordinating supply chain decisions is a dominant strategy for each supply chain.The coordinated supply chain has more benefits when the supply chain has more advantages of quality cost.However,supply chain profits may decrease when both channels coordinate their decisions,i.e.,there may occur the classical prisoner's dilemma in the supply chain system.The competitive intensity is greater under supply chain coordination equilibrium.The average quality levels are higher and customer amount increase in the coordination scenario.Customers benefit a lot from the coordination strategy.
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: article
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Cited By Count: 10
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