Decentralized Supply Chains under Random Price-Dependent Demand: Noncooperative Equilibria vs. Coordination with Cost-Sharing Contracts
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-15, 15 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-06-27
Country of Publication
Egypt
No. of Pages
15
Main Subjects
Abstract EN
It is common for a supplier to sell products to multiple retailers.
In this paper, we investigate the equilibrium behavior of a decentralized supply chain with multiple retailers facing a random price-dependent demand in the additive form.
Here, we consider two kinds of demand functions: the distribution of the demand depends only on the retailer’s own retail price (noncompeting retailers) and not only on his own retail price but also on that of the other retailers (competing retailers).
We present appropriate wholesale price, buy-back, and lost-sales cost-sharing contracts to coordinate the total supply chain, so that when all the retailers adopt their equilibrium response, the supply chain system coordination is also achieved.
Furthermore, the coalition formation among retailers is also analyzed.
We find that with buy-back and lost-sales cost-sharing contracts and linear price-dependent demand function, retailers always prefer being in the grand coalition to forming any other coalition.
American Psychological Association (APA)
Sun, Yanpeng& Ma, Cheng& Sun, Qi. 2020. Decentralized Supply Chains under Random Price-Dependent Demand: Noncooperative Equilibria vs. Coordination with Cost-Sharing Contracts. Mathematical Problems in Engineering،Vol. 2020, no. 2020, pp.1-15.
https://search.emarefa.net/detail/BIM-1193612
Modern Language Association (MLA)
Sun, Yanpeng…[et al.]. Decentralized Supply Chains under Random Price-Dependent Demand: Noncooperative Equilibria vs. Coordination with Cost-Sharing Contracts. Mathematical Problems in Engineering No. 2020 (2020), pp.1-15.
https://search.emarefa.net/detail/BIM-1193612
American Medical Association (AMA)
Sun, Yanpeng& Ma, Cheng& Sun, Qi. Decentralized Supply Chains under Random Price-Dependent Demand: Noncooperative Equilibria vs. Coordination with Cost-Sharing Contracts. Mathematical Problems in Engineering. 2020. Vol. 2020, no. 2020, pp.1-15.
https://search.emarefa.net/detail/BIM-1193612
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1193612