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Supply Chain Contract Models With Stochastic Demand

Posted on:2006-06-16Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y HeFull Text:PDF
GTID:1116360155958201Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Due to economic globalization, product proliferation and technological progress, customer demand becomes highly uncertain across many industry sectors. To decrease the impact of the demand uncertainty and satisfy the demand has become a major campaign for many companies. But usually the supply chain is made up of several relatively independent entities, which often results in conflicting objectives among them. The supply chain members are primarily concerned with optimizing their own objectives, and that self serving focus often results in poor performance. Developing strategies to decrease the risk faced by the retailer is becoming more critical in supply chain. Among the solutions, supply chain contracts, which have draw much attention from the researchers recently, are used to provide some incentives to adjust the relationship of supply chain partners to coordinate the supply chain, i.e., the total profit of the decentralized supply chain is equal to that achieved under a centralized system.This research studies the problem of supply chain contracts under the demand uncertainty. The main contents of the research are as following:1. Based on the standard newsvendor problem, four traditional supply chain contract models (i.e. returns policy, quantity flexibility contract, revenue-sharing contract, and rebate and penalty contract) are established. In each contract the supply chain optimal actions are identified in order to coordinate the supply chain.2. The newsvendor problem is extended by allowing the retailer having four kinds of decision bias, i.e. loss-averse preferences, waste-averse preferences and stockout-averse preferences. In this setting, how a supply chain can be coordinated with a supply chain contract is investigated.3. The newsvendor problem by allowing the retailer to choose his retail price in addition to his stocking quantity is extended. The effectivenesses of four traditional contracts are studies. It is shown that only revenue-sharing contract continue to coordinate such a supply chain, whereas others fail to coordinate in this setting. Then a simple model combined...
Keywords/Search Tags:supply chain management, supply chain contracts, coordination, demand uncertainty, decision bias, sales effort
PDF Full Text Request
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